When using the Use Whole Month Threshold proration calculation, Billing Central calculates how many whole months are in the partial period, then:
- If the remainder is 16 days or more, it is charged as a whole month.
- If the remainder is less than 16 days, no charge is made for those days.
The formula used to calculate the prorated value for the partial period is:
Sales Price * ((W+R)/Z)
where:
- W is the number of days in the partial period / 30.4 rounded down to a whole number. This calculates the number of whole months in the partial period.
- R is either of the following:
1 if the remainder from W is equal to or greater than 16
0 if the remainder from W is less than 16 - Z is the number of months in the full period.
Example 1
|
Line Start Date |
Line End Date |
Billing Term |
Line Sales Price |
First Billing Period |
Final Billing Period |
|---|---|---|---|---|---|
| Sun, March 19, 2017 | Fri, April 21, 2017 | QB | $90 |
March 19 to March 31 = 13 days W = 13/30.4 rounded down to a whole number = 0 with 13 remainder 13 < 16 so R = 0 Jan 1 to March 31 = 3 months $90 * (0/3) = $0 |
April 1 to April 21 = 21 days W = 21/30.4 rounded down to a whole number = 0 with 21 remainder 21 > 16 so R = 1 April 1 to June 30 = 3 months $90 * (1/3) = $30 |
Example 2
|
Line Start Date |
Line End Date |
Billing Term |
Line Sales Price |
First Billing Period |
Final Billing Period |
|---|---|---|---|---|---|
| Sun, Aug 20, 2017 | Fri, May 18, 2018 | YB | $120 |
Aug 20 to Dec 31 = 134 days W = 134/30.4 rounded down to a whole number = 4 with 12.4 remainder 12.4 < 16 so R = 0 Jan 1 to Dec 31 = 12 months $120 * (4/12) = $40 |
Jan 1 to May 18 = 138 days W = 138/30.4 rounded down to a whole number = 4 with 16.4 remainder 16.4 > 16 so R = 1 Jan 1 to Dec 31 = 12 months $120 * (5/12) = $50
|
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