What is the share of accounts receivable over 60 days?
Share of AR over 60 days is the percentage of open accounts receivable that is more than 60 days past the invoice date. It's calculated as receivables older than 60 days divided by total accounts receivable. The older a receivable gets, the more likely it won't be collected in full.
Formula
AR more than 60 days past invoice ÷ total accounts receivable
Example
A hypothetical cookware brand has $600,000 of open receivables, and $90,000 of that is from invoices more than 60 days old. Share of AR over 60 days = $90,000 ÷ $600,000 = 0.15, or 15%.
How to read it
Lower is better. This measures age from the invoice date, so a retailer on 60-day terms won't show here until it's actually late. A rising share often traces back to chargebacks, short payments, and deductions that nobody has disputed, rather than a customer who can't pay. One large invoice can swing the share at a small brand, so look at the dollar amount too.
What moves it
- Unresolved retailer deductions, chargebacks, and short payments
- Customers on extended payment terms
- Financial trouble at a specific retail account
- Invoicing errors that delay payment
- How consistently collections are followed up
What to do when it's flagged
- List every invoice over 60 days with its customer, amount, and reason it's unpaid
- Dispute invalid deductions and correct invoicing errors
- Pause shipments or require prepayment for accounts with chronic late balances
- Reserve for amounts unlikely to be collected so the books reflect reality
How Inflection tracks it
Inflection's KPI Monitor flags this as Watch above 10% and Critical above 20% by default; each client's thresholds are adjusted to their business.
Total accounts receivable comes from the QuickBooks balance sheet; AR over 60 days is entered manually until that input is connected.
Updated 2026-10-11. Example figures are hypothetical.