When using the Use Actual Days in Billing Period proration calculation, the proportion invoiced for the partial period is based on the exact number of days used out of the full billing period.
The formula used to calculate the prorated value for the partial period is:
Sales Price * (x/y)
where:
The following examples show how prorated values are calculated when using the Actual Days calculation method.
In this example, the billing term WB starts on Monday.
|
Line Start Date |
Line End Date |
Billing Term |
Line Sales Price |
First Billing Period |
Final Billing Period |
|---|---|---|---|---|---|
| Sat, Aug 12, 2017 | Tue, Aug 22, 2017 | WB + 3d | $70 |
Aug 12 to Aug 16 = 5 days Aug 16 - billing term (WB+3d) = Aug 10 Aug 10 to Aug 16 = 7 days $70 * (5/7) = $50 |
Aug 17 to Aug 22 = 6 days Aug 17 + billing term (WB+3d) = Aug 23 Aug 17 to Aug 23 = 7 days $70 * (6/7) = $60 |
|
Line Start Date |
Line End Date |
Billing Term |
Line Sales Price |
First Billing Period |
Final Billing Period |
|---|---|---|---|---|---|
| Wed, Aug 2, 2017 | Sat, Sept 9, 2017 | ME - 6d | $930 |
Aug 2 to Aug 24 = 23 days Aug 24 - billing term (ME-6d) = July 25 July 25 to Aug 24 = 31 days $930 * (23/31) = $690 |
Aug 25 to Sept 9 = 16 days Aug 25 + billing term (ME-6d) = Sept 24 Aug 25 to Sept 24 = 31 days $930 * (16/31) = $480 |
|
Line Start Date |
Line End Date |
Billing Term |
Line Sales Price |
First Billing Period |
Final Billing Period |
|---|---|---|---|---|---|
| Tues, Aug 8, 2017 | Tues, Oct 31, 2017 | MB + 4d | $930 |
Aug 8 to Sept 4 = 28 days Sept 4 - billing term (MB + 4d) = Aug 5 Aug 5 to Sept 4 = 31 days $930 * (28/31) = $840 |
Oct 5 to Oct 31 = 27 days Oct 5 + billing term (MB + 4d) = 4 Nov Oct 5 to Nov 4 = 31 days $930 * (27/31) = $810 |
View Tutorial
Related Concepts
Calculating 30 Days per Month Proration
Calculating Whole Month Threshold Proration
Adjusting Final Period Value to Remainder from First Period
Custom Proration Calculation Methods
Related Tasks
Assigning a Proration Policy to a Contract
Assigning a Proration Policy to Multiple Contracts
Reference