# how to use formula to calculate debit credit in excel

I'm trying to get a handle on my credit card debt situation,I want to learn about my credit card payments and how they are calculated. So I can figure out how many months it will take to pay off your debt. Could someone tell how to do that with excel?
thx, as always. Asked Dec, 23 2010

1•Call your credit card company and ask the representative for the percentage that the company uses to calculate your minimum credit card payment. Due to recent regulations, many companies now have to set your minimum payment at as much as 4 percent of your balance each month. Let's use 4 percent as the minimum payment percentage and 14 percent as the annual interest rate on the card.

•2
In Excel, type "Balance" in the first column, tab over and type "Payment" in the next column, then "Interest" and "Principal" in the next two columns. These will be your headings.

•3
Press "Enter" to go to the next line. Type your current credit card balance under the first row beneath "Balance" (cell A2). Tab over to the next column under "Payment" (B2) and type in the following formula: "=.04*A2" (leave out the quotation marks). The .04 represents the minimum payment percentage from step 1. The formula result should be \$400.

•4
Tab over again and type in the following formula to calculate the amount of your monthly payment that is going toward interest: "=(.14/12)*A2" (again, no quotation marks). In this example, the result should be \$116.67. Finally, tab over once more---you should be at cell D2 at this point---and type in "=B2-C2" to get an automatic calculation of the amount of principal that you will be paying down with that payment. The result should be \$283.33 to demonstrate our example.

•5
Press "Enter" once all of your formulas are set to bring yourself to cell A3. Now, type in just one more formula, "=A2-D2" into cell A3. This formula will automatically calculate your new balance after you make a monthly payment.

•6
Select cell B2, which is \$400 in this example, grab the tiny square in the lower-right corner of the cell and drag it down with your mouse into cell B3. A calculation should occur, showing you your new minimum payment for that month. Do the same thing for cells C2 and D2.

•7
Select the entire third row with your mouse, find the tiny square again in the corner and then drag everything down as many rows as you'd like to see your minimum payments into eternity (each row represents a month). Plug your own credit card interest rate and minimum payment percentage into the first line of this Excel sheet before dragging anything down.

1•Call your credit card company and ask the representative for the percentage that the company uses to calculate your minimum credit card payment. Due to recent regulations, many companies now have to set your minimum payment at as much as 4 percent of your balance each month. Let's use 4 percent as the minimum payment percentage and 14 percent as the annual interest rate on the card.

•2
In Excel, type "Balance" in the first column, tab over and type "Payment" in the next column, then "Interest" and "Principal" in the next two columns. These will be your headings.

•3
Press "Enter" to go to the next line. Type your current credit card balance under the first row beneath "Balance" (cell A2). Tab over to the next column under "Payment" (B2) and type in the following formula: "=.04*A2" (leave out the quotation marks). The .04 represents the minimum payment percentage from step 1. The formula result should be \$400.

•4
Tab over again and type in the following formula to calculate the amount of your monthly payment that is going toward interest: "=(.14/12)*A2" (again, no quotation marks). In this example, the result should be \$116.67. Finally, tab over once more---you should be at cell D2 at this point---and type in "=B2-C2" to get an automatic calculation of the amount of principal that you will be paying down with that payment. The result should be \$283.33 to demonstrate our example.

•5
Press "Enter" once all of your formulas are set to bring yourself to cell A3. Now, type in just one more formula, "=A2-D2" into cell A3. This formula will automatically calculate your new balance after you make a monthly payment.

•6
Select cell B2, which is \$400 in this example, grab the tiny square in the lower-right corner of the cell and drag it down with your mouse into cell B3. A calculation should occur, showing you your new minimum payment for that month. Do the same thing for cells C2 and D2.

•7
Select the entire third row with your mouse, find the tiny square again in the corner and then drag everything down as many rows as you'd like to see your minimum payments into eternity (each row represents a month). Plug your own credit card interest rate and minimum payment percentage into the first line of this Excel sheet before dragging anything down.

Paypal of some countries compulsorily need a Bank Account added to be verified. perhaps something is wrong with the Virtual Credit Card, or paypal do not like the company from where you got the Virtual Credit Card

1. A transaction that reduces Amounts Receivable from a customer is a credit memo. For eg. The customer could return damaged goods. A debit memo is a transaction that reduces Amounts Payable to a vendor because, you send damaged goods back to your vendor.

2. Credit memo request is a sales document used in complaints processing to request a credit memo for a customer. If the price calculated for the customer is too high, for example, because the wrong scale prices were used or a discount was forgotten, you can create a credit memo request. The credit memo request is blocked for further processing so that it can be checked. If the request is approved, you can remove the block. The system uses the credit memo request to create a credit memo.

You can use credit memos in Sales and Distribution (SD) for assigning credit memo requests to the open invoices and in Financial Accounting (FI) for assigning credit memos and payments to the open invoices and carry out clearing with them. If you use both Financial Accounting (FI) and Sales and Distribution (SD), there is a 1:1 relationship between the credit memo request and the credit memo item posted in Financial Accounting (FI). As soon as you bill the credit memo request together with other sales orders, or distribute the items of one credit memo request to several billing documents, the assignment is no longer valid and the system will not process it.

For credit memos, credit memo requests, and payments, you have the following assignment options:
- Assignment to a single invoice
- Assignment of a partial amount to an invoice
- Assignment to several invoices

When you post credit memos, the payment programme processes them automatically. If the credit memo is specifically related to a particular open invoice item, the payment program automatically attempts to offset the credit memo against the open item. If it is not possible to completely offset the credit memo against an invoice, you can post a debit memo to the vendor, who is to reimburse the amount. Then you can apply a multilevel dunning program.

3. Debit memo request is a sales document used in complaints processing to request a debit memo for a customer. If the prices calculated for the customer were too low, for example, calculated with the wrong scaled prices, you can create a debit memo request. The debit memo request can be blocked so that it can be checked. When it has been approved, you can remove the block. It is like a standard order. The system uses the debit memo request to create a debit memo.

4. As mentioned above, creating a credit or debit memo request enables you to create credit or debit memos based on a complaint. For this first create a sales document with the order type for a credit or debit memo request. You can create the debit or credit memo requests in the following ways:
– Without reference to an order
– With reference to an existing order
Here you enter which order the complaint refers to.
– With reference to an invoice
Here you enter which invoice the complaint refers to.
In all cases, you specify the value or quantity that should be in the credit or debit memo

5. You can block the credit or debit memo request from being billed in Customizing. Go to Sales -> Sales Documents -> Sales document header -> Define sales document type and select the billing block field in the billing section. This request can later be reviewed along with similar ones, - if necessary, by another department. The request for a credit or debit memo can then be approved or rejected.

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