What are aging reports and how do I make sense of the numbers?

Aging reports for families show how long an amount due has been owed by placing it in a column (sometimes known as a “bucket”) such as 7, 14, 21 or 28 days old. When payments are made the oldest balance is always paid off first (regardless of date), while credits, like a family discount, apply based on the date the credit was given.

Example:
Last month you charged a family 100 dollars. Yesterday you charged them another 100 and also gave a 10 dollar family discount. Today they made a partial payment of 80. Their balance due would be 110 (100 + 100 -10 -80 = 110).

The payment would apply to the original 100 owed so, on a 7 day aging report, you would see 20 still owed in the over 28 days column (100 – 80 = 20). There would be 90 owed in the “current” column since only the family discount would be applied to the current fees (100 – 10 = 90). The total balance owed would still be 110 (20 + 90 = 110).