Payment Due Date Interest Penalty Discounts

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Presentation transcript:

Payment Due Date Interest Penalty Discounts Today’s Date Payment Due Date FEB 28 DAYS APR JUN SEP NOV Billing Office Terms 30 DAYS Contract: + term days = Discount Payment Due Date Invoice Dated: LATER DATE Received (In Billing Office): (of invoice received or earlier date block) Terms: CAD + 30 days Receiving Report ROG + 7 = Payment Due Date = EARLIER DATE AOG (CAD or AOG) (if given) Interest Penalty Julian Date Daily Percentage Factor Interest Rate Principle Interest Amount ECPD: X = - PDD: = Days Late * Note - Add the total of the “Interest Amount” column (s) to the original amount of principle to get the payment amount. = Discounts Step 1: Principle X Discount % = Discount Amount Step 2: Principle - Discount Amount = Cost to Government