Adjusting Final Period Value to Remainder from First Period

When the first and final periods of a contract line item are partial periods, Billing Central can adjust the final period value to be the residual amount from the first period so that they equal one whole charge period.

To adjust final period values this way, select the Set Final Period to Remainder from First checkbox on the proration policy that you intend to assign to the contract.

This example uses a six month contract to illustrate final period adjustment when using a proration policy with the Actual Days calculation method.

Line Start Date	Line End Date	Charge Term	Line Sales Price	First Charge Period	Final Charge Period without Adjustment	Final Charge Period with Adjustment
Mon, Feb 19, 2018	Sat, Aug 18, 2018	MB	$100	Feb 19 to Feb 28 = 10 days Feb 28 - charge term (MB) = Feb 1 Feb 1 to Feb 28 = 28 days $100 * (10/28) = $35.71	Aug 1 to Aug 18 = 18 days Aug 1 + charge term (MB) = Aug 31 Aug 1 to Aug 31 = 31 days $100 * (18/31) = $58.06	Sales Price - First Charge Period value $100 - 35.71 = $64.29

In this example, the Total Contract Line Value (TCLV) is the sum of:

charge for partial start period + charges for five whole periods (March to July) + charge for partial end period

Therefore:

• Without the final period adjustment, the TCLV is 35.71 + 500 + 58.06 = 593.77
• With the final period adjustment, the TCLV is 35.71 + 500 + 64.29 = 600.00

Notes:

If you assign a different proration policy to a contract after its first period has been billed, Billing Central calculates the final period adjustment as though the current proration policy was in effect for the contract's entire duration. The value billed for the first period does not change.

When a contract line item starts and ends within the same period, Billing Central calculates the prorated value for the single period. No final period adjustment is applied.