For a Surat weaving unit the biggest cost is often not looms or power but money stuck in the market. Yarn, power and wages must be paid on time every month, but grey money comes in 30, 60, sometimes 90 days later. If ₹40 lakh is stuck outside, it isn't working for you. This guide gives a simple method: look at outstanding by age, set limits for each party, and apply each receipt to the right invoice.
Split outstanding by age
"Total due ₹40 lakh" tells you little. If all of it is 15 days old, fine; if half is 90 days old, that's trouble. So look at it in buckets. You can count days from the invoice date or from the due date (invoice date + credit days). Counting from the due date is clearer, because "late" then really means late.
Days late = today − due date
Buckets: not due · 1–30 days · 31–60 days · 60+ days
- Not due — there's still time. Nothing to do.
- 1–30 days late — send a reminder. It's usually forgetfulness or a cash squeeze.
- 31–60 days — call, get a payment date, think before giving new goods.
- 60+ days — stop new goods, raise interest, bring in the broker.
Example
Today is 01-11-2026. Party "A" (30 credit days) has four open invoices:
| Invoice date | Due date | Balance | Days late | Bucket |
|---|---|---|---|---|
| 15-10-2026 | 14-11-2026 | ₹1,20,000 | — | Not due |
| 20-09-2026 | 20-10-2026 | ₹95,000 | 12 | 1–30 |
| 25-08-2026 | 24-09-2026 | ₹80,000 | 38 | 31–60 |
| 10-07-2026 | 09-08-2026 | ₹60,000 | 84 | 60+ |
Total due ₹3,55,000, of which ₹2,35,000 is late and ₹60,000 is 84 days old. The party's credit limit is ₹3,00,000 — over the limit. When the next order comes, get the 60+ invoice cleared first.
Interest on the 84-day ₹60,000 at 1.5% a month: ₹60,000 × 1.5% × 84 ÷ 30 = ₹2,520 (with no grace days). Try your own numbers in the interest calculator.
Credit days and credit limit — agree them up front
- Credit days: agree them in writing with each party on day one, and print them on the invoice. "Same as always" is the root of the biggest disputes.
- Credit limit (₹): how much can be due from the party at one time. A small limit for a new party, a bigger one for a trusted old one.
- Overdue-days limit: e.g. "no new goods if an invoice older than 60 days is unpaid". A second lock alongside the rupee limit.
- Once a limit is crossed, a new invoice only with the owner's or manager's yes.
Reminders — every week, same day
The most useful habit: every Monday, open outstanding and send reminders to parties in 1–30 and 31–60. The reminder should list invoice number, date, balance and total clearly, so the party's munim can match it at once. No anger, just the account. Parties who see their account every week usually pay on time.
Apply receipts bill by bill
When a party sends ₹1,00,000, record which invoice it is for. The usual way: oldest invoice first. If the party pays a specific invoice, apply it there. Whatever is left goes "on account" (advance) for the next invoice.
- If the party deducted TDS or kasar / discount, record that against the same invoice too — otherwise small balances hang around for years.
- Too many "on account" receipts without invoices make aging wrong — an old invoice shows as due when the money has already come.
Interest — a note
If you charge interest on late payment, agree the rate and grace days in advance and print them on the invoice. The full interest calculation, with part payments, is in the interest and credit days guide.
Common mistakes
- Watching only the total. Look at age — ₹1 lakh at 60+ days is more dangerous than ₹5 lakh at 15 days.
- Not applying receipts to invoices. Then the party says "that one was paid", and you have no proof.
- Limits only by word of mouth. When an order comes, the limit is forgotten. Put it in the master.
- Occasional reminders. One angry call a month doesn't work; a small weekly reminder does.
- Leaving small TDS / kasar balances. ₹880 here, ₹440 there — thousands in confusion by year end.
How Loomiro helps
The Outstanding page in Accounts shows each party's dues in four parts by due date — not due, 1–30, 31–60, 60+ days. Tap a bucket to see only those invoices; tap a party for the invoice-wise list, days late and interest to date. In the party master you can set a credit limit (₹) and an overdue-days limit (blank = the unit's); parties over their limit are flagged, and Loomiro stops a new invoice — only someone with the "Limit cross" permission can choose "Phir bhi banao" (make it anyway). "Reminder bhejo" sends a WhatsApp message with all the party's open invoices, interest and total, signed with your firm's name, in one tap. In "Receipt likho", enter the amount and press "Auto" — oldest invoices are settled first; TDS and kasar go against the same invoice, and the rest goes on account. The same page works on the payable side too — how much you owe each yarn supplier.