||One of the
questions by small
businesses is how to
calculate the interest payment on overdue
We enter the following headers in an Excel worksheet: Invoice Date,
Amount due, credit period in days that we have offered our customer,
date of payment by the customer. Next we calculate the days overdue.
This is done by substracting the invoice date from the actual payment
date and the number of credit days. You need to ensure that your 'date'
entries are properly formatted. In case you receive a date value, just
click on the cell and format it to a number. Based on the amount due,
the overdue days, the number of days in a year (365) and the interest
per year that the customer has agreed to pay, we calculate the interest
due. The total amount now due from the customer will be the invoice
amount plus the calculated interest. In Excel, as you can see in the training video,
this is quite straightforward.