I am to So Confused, Please help

Feb 2015
3
0
Toronto
Net Total(NT), Past Due amount(PD)


I currently use this PD/NeT = %overdue
Example
PD= 43,257
Net= 146,200


from the above I know that the amount overdue is 29.6%


Question.
I need a formula that would tell me how much the customer has to pay in order to be at a set %, example 17%. Keep in mind that anything paid will reduce the NT and the PD by the same amout.


Example customer paid 7,000 then NT will now be NT-$7000 and PD-$7000.
so A $7,000 payment will make them be at 26%
 
Jun 2008
1,389
513
Illinois
If the customer pays amount 'x' then the new percent outstanding is (PD-x)/(Net-x), If you want that to equal a desired percentage - let's call it NewOD% - then:

\(\displaystyle \frac {PD-x}{Net-x} = NewOD\%\)

Rearrange:

\(\displaystyle PD-x = (Net-x)NewOD\%\)

\(\displaystyle PD - Net \cdot NewOD\% = x - x \cdot NewOD\%\)

Finally, getting x by itself:

\(\displaystyle x = \frac {PD-Net \cdot NewOD\%}{1-NewOD\%} \)

In your example if PD=43,257, Net = 146,000, and newOD% =16%, then:

\(\displaystyle x = \frac {43257-146000 \cdot 26\%}{1-26\%} = \frac {5297}{0.74} = 7158\)

You can check that this works: \(\displaystyle New \ OD\% = \frac {43257-7158}{146000-7158} = 26\%\)
 
Last edited:
Feb 2015
3
0
Toronto
(Rofl)You are a brilliant, this works great. Thank you for the help