https://github.com/ac000/cashflo-qp

Simple app to calculate if it is better to pay earlier and lose interest but gain a discount.
https://github.com/ac000/cashflo-qp

Last synced: 3 months ago
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Simple app to calculate if it is better to pay earlier and lose interest but gain a discount.

• Host: GitHub
• URL: https://github.com/ac000/cashflo-qp
• Owner: ac000
• License: gpl-2.0
• Created: 2012-10-18T13:15:33.000Z (over 12 years ago)
• Default Branch: master
• Last Pushed: 2013-04-20T14:02:01.000Z (about 12 years ago)
• Last Synced: 2025-01-13T17:20:30.890Z (5 months ago)
• Language: C
• Homepage:
• Size: 145 KB
• Stars: 0
• Watchers: 3
• Forks: 0
• Open Issues: 0
• Metadata Files:
  • Readme: README
  • License: COPYING

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README

        
Overview

========

This is a very simple utility to show the difference between paying a supplier

after a longer number of days and earning interest on that or paying them

quicker in return for a discount.

How it Works

============

To do this, it needs six pieces of information.

    1) The amount. This would be the amount of the invoice.

    2) Interest Rate. This will just be a yearly rate.

    3) Interest Type. This is how the bank calculates the interest. It will

       be one of two ways.

	* EAR. This is the Effective Annual Rate. It is defined as;

			r = (1 + i/n)^n - 1

	       Where i is the nominal rate (aka APR) and n is the

	       compounding frequency.

	* APR. This is the Annual Percentage Rate. This can be defined in

	       terms of the EAR as:

			r = n * ((1 + EAR)^(1/n) - 1)

	See do_calc() for how these are actually calculated.

    4) Normal Payment Terms. This is how long you normally wait until you

       pay a supplier, in days.

    5) Quick Payment Terms. This is how long you have agreed to pay the

       supplier for a quick payment, in days.

    6) Supplier Discount. This is how much you'd get back from the supplier

       for quick payments as a percentage.

Given this information, it will then tell you how much interest you would

have lost over the period (Normal Payment Terms - Quick Payment Terms) for

the given amount.

It will tell you how much discount you would get from the supplier on that

amount for a quick payment.

Lastly it will work out at what point the interest lost and supplier

discount converge and give you this in days. For a given EAR it

can work this out exactly. For an APR it can approximate it to within a

day.

Caveats

=======

This will likely only work for UK banks.

It doesn't do anything special with leap years.

Building / Running

==================

See INSTALL

License

=======

This application is licensed under the GNU General Public License version 2.

See COPYING