Business, Legal & Accounting Glossary
The total sum of money due for the purchase of a good or service that must be paid by the set due date.
In relation to taxes, the money owed to the government when required tax amount totals a greater number than total tax payments previously made.
Refers to the total sum of money due for the purchase of a good or service that must be paid by the set due date.
The amount due is the total sum of money owed and to be paid by a set date either to:
As it relates to the seller of a good or service, the amount due is the total cost of the good or service, including taxes and other surcharges that may be applicable.
Generally, it is due immediately but it can be paid later in some instances.
It is generally inserted at the bottom of a bill.
As it relates to taxes, the amount due is the money owed on earnings by taxpayers to their government, if the total tax is greater than total tax payments previously made.
It is due by Tax Day and, if it is delayed, is eligible for penalties.
It is generally included as a calculation on tax forms.
As it relates to loans or other bills, the amount due is the sum of money necessary to pay a bill in full, including principal, interest, fees, and other charges.
Amount due can also be used for the sum of charges related to partial or full payments for credit card loans.
In both cases, failure to make payments by a set date results in a late charge that is added to the interest.
An individual’s credit score is also affected when they do not pay the amount due by a certain date.
While they are commonly used interchangeably, the amount due and the current balance are not the same thing.
The difference between credits and debits in an account is the balance, which can be the same as the amount due in some cases.
For example, during a one-time purchase of a good or service, the current balance and amount owed remain constant.
However, there are several exceptions. In the case of credit cards, current balance refers to the amount of money accessible to the cardholder during the current payment cycle.
Amount due, on the other hand, refers to the payment that the cardholder must make in order to continue using the card.
sums due, amount owed, amount owing, sum owed, debt
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This glossary post was last updated: 7th January, 2022 | 3,687 Views.