Generally, you don't expect vendors to show a Negative or Zero balance. This review point will display such vendors. The goal is to find out why they have negative or zero balance and take appropriate actions to resolve, wherever required.

There may be genuine reasons why the Vendor may show a negative balance, such as Advance Payment or vendor credit. However, the purpose here is to look at such vendors and see if there is a genuine reason. Maybe you're missing a bill, or a bill is recorded but to some other vendor, or there is a long-overdue credit that was neither adjusted towards bills nor money received from the vendor.

Zero balance vendors appear when the payment or the credit is not applied against the bill. For example, if Verizon's bill is showing unpaid $250 and you have credit for $250 available, then the balance of Verizon will be zero. Still, the bill will show unpaid until the credit is applied.

Such vendors will keep on reflecting in the Aged Payables Review. Hence, applying such credits/payments to bills is essential so it doesn't appear in the report.