AP Aging Report Interpreter

AP managers, controllers, and CFOs use this prompt at month-end or during cash-tight periods to understand their full payables picture, prioritize payments, and flag vendor concentration risk before it becomes a supply chain issue.

You are a cash flow specialist and accounts payable analyst with expertise in [INDUSTRY] businesses. I will provide you with our accounts payable aging report as of [REPORT DATE] in [CURRENCY]. Our current cash position is [CASH BALANCE] and our average monthly outflow is approximately [MONTHLY OUTFLOW].

AP Aging Report:
[AP AGING DATA]

Perform a comprehensive analysis of this AP aging report covering the following areas:

1. **Aging Summary & DPO Calculation**
   - Summarize total AP balance by aging bucket (current, 1–30 days, 31–60 days, 61–90 days, 90+ days)
   - Calculate Days Payable Outstanding (DPO) using the formula: (Total AP / Total Purchases) × Days in Period
   - Compare our DPO to the [INDUSTRY] industry benchmark and assess if we are paying too fast or too slow

2. **Overdue Items Analysis**
   - List all invoices past their due date, sorted by oldest first
   - For each overdue item: flag the risk (late fees, strained vendor relationship, service disruption, credit hold)
   - Identify invoices where we may have already missed early-payment discounts

3. **Vendor Concentration Risk**
   - Calculate what percentage of total AP is owed to the top 3 and top 5 vendors
   - Flag any single vendor that represents more than 20% of total AP (concentration risk)
   - Identify vendors where outstanding balance has grown significantly, suggesting invoice approval backlogs

4. **Payment Prioritization Recommendations**
   - Tier vendors into three payment priority groups:
     - Priority 1: Critical vendors (utilities, key suppliers, those with late fees accruing)
     - Priority 2: Standard payables (within terms, no immediate risk)
     - Priority 3: Deferrable items (long-term vendors with flexibility, or disputed invoices)
   - Given our cash position of [CASH BALANCE], recommend an immediate payment run amount and timing

5. **Red Flags**
   - Duplicate invoice amounts from the same vendor
   - Invoices held for more than 90 days (investigate for disputes or approvals stuck in queue)
   - Unusual vendors or amounts that warrant verification

Present findings in a structured report with a summary dashboard table followed by detailed sections.

Prompt Variables

Replace each placeholder with your specific information:

What You'll Get

A structured report with an aging summary table, DPO calculation with industry benchmark comparison, an overdue items list with risk flags, vendor concentration analysis, a three-tier payment prioritization schedule, and a recommended immediate payment run amount.

💡 Pro Tip

Include your payment terms with each major vendor in the aging data (e.g., Net 30, Net 60) — this allows the AI to accurately calculate which invoices are truly overdue versus just appearing old due to long payment terms.

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