Calculating Partial Periods

Essentially, a partial period is one where the start date of the contract line item does not fall on the first day of a billing period, or when the end date of the contract line item does not fall on the last day of a billing period. This means that the contract line item has only spanned part of the start or end period.

A more precise explanation of how partial periods are calculated is given below.

Partial First Billing Period

A first billing period is considered a partial period if the following calculation is true:

(Contract line start date + Billing term) - Billing term ≠ Contract line start date

In the example illustrated below, a contract line has a start date of Tuesday, August 8, 2017 with a billing term of MB+4d (so each billing period starts 4 days after the first day of the month).

Contract line start date (Tuesday, August 8, 2017) + billing term (MB+4d) = Tuesday, September 5, 2017.

Tuesday, September 5, 2017 - billing term (WB+4d) = Saturday, 5 August, 2017.

This is not the same as the contract line start date (Tuesday, August 8, 2017), which means that the first billing period is a partial period.

Illustration

Partial Final Billing Period

A final billing period is considered a partial period if the following calculation is true:

Contract line end date + 1 day ≠ Billing period start date + Billing term

In the example illustrated above, a contract line has an end date of Tuesday, October 31, 2017 and the billing term is MB+4d.

Final billing period start date (Thursday, October 5, 2017) + billing term (MB+4d) = Sunday, November 5, 2017.

This is not the same as the contract line end date + 1 day (Wednesday, November 1, 2017), which means that the final billing period is a partial period.

Related Concepts

Proration Policies

Calculating Actual Day Proration

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

Creating a Proration Policy

Assigning a Proration Policy to a Contract

Assigning a Proration Policy to Multiple Contracts

Reference

Proration Policy Fields

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