Aged payables represent the bills or invoices that a company has received from suppliers or vendors for goods or services and have yet to be paid, segmented by the length of time they have been outstanding. Businesses use accounts payable aging reports to monitor their payables and ensure timely payment, avoiding overdue charges or strained supplier relationships.

For example, an accounts payable aging report might categorize payables into ranges such as "0-30 days," "31-60 days," and "over 60 days past due." This categorization allows a finance team to prioritize payments and maintain clear financial management. During the month end close process, aged payables give companies insight into their short-term obligations and cash flow needs.

Suppose a logistics company receives an invoice for fuel procurement and notices it has remained unpaid for over 45 days; this would be included in their accounts payable aging report. Monitoring aged payables is critical for maintaining healthy financial operations.