SECTIONSHow Renewal Dates are Calculated
When creating a renewal, you can choose whether the original contract's duration is replicated in days or in months. For example, if you choose to renew using days, and the original contract's duration is 30 days then each renewal for that contract will be 30 days.
If you choose to renew using months:
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Rule A - Where the original contract's start date and the renewal's start date fall on the same day of the month, calculate the renewal's end date so that the next renewal also starts on that day of the month.
In scenarios where this cannot be calculated, Billing Central tries to apply Rule B. For example, if a monthly contract starts on July 31 the first renewal can start on August 31, but the second renewal cannot start on September 31 because that date does not exist. In this scenario, Billing Central tries to apply Rule B.
- Rule B - Where the original contract's start date and the renewal's start date fall on the same number of days before the end of the month, calculate the renewal's end date so that the next renewal also starts that many days before the end of the month.
- Rule C - For scenarios that do not comply with Rule A or B, replicate the original contract's duration using days.
Illustration of Rule A
Contract X has a duration of 31 days (January 10, 2019 to February 9, 2019). Renewal 1 starts on February 10, 2019. When renewing as days, Renewal 1 ends on March 12, 2019 (31 days from the start date). When renewing as months, Renewal 1 ends on March 9 so that Renewal 2 can start on March 10.
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|
|
Renew as Days |
Renew as Months |
|---|---|---|---|
| Contract X | Start Date | January 10, 2019 | January 10, 2019 |
| End Date | February 9, 2019 | February 9, 2019 | |
| Renewal 1 | Start Date | February 10, 2019 | February 10, 2019 |
| End Date | March 12, 2019 | March 9, 2019 | |
| Renewal 2 | Start Date | March 13, 2019 | March 10, 2019 |
| End Date | April 12, 2019 | April 9, 2019 | |
| Renewal 3 | Start Date | April 13, 2019 | April 10, 2019 |
| End Date | May 13, 2019 | May 9, 2019 | |
| Renewal 4 | Start Date | May 14, 2019 | May 10, 2019 |
| End Date | June 13, 2019 | June 9, 2019 |
Illustration of Rule B
Contract Y has a duration of 28 days (January 31, 2019 to February 27, 2019). Renewal 1 starts on February 28, 2019. When renewing as days, Renewal 1 ends on March 27, 2019 (28 days from the start date). When renewing as months, Renewal 1 ends on March 30, 2019 so that Renewal 2 can start on the last day of the month.
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|
|
Renew as Days |
Renew as Months |
|---|---|---|---|
| Contract Y | Start Date | January 31, 2019 | January 31, 2019 |
| End Date | February 27, 2019 | February 27, 2019 | |
| Renewal 1 | Start Date | February 28, 2019 | February 28, 2019 |
| End Date | March 27, 2019 | March 30, 2019 | |
| Renewal 2 | Start Date | March 28, 2019 | March 31, 2019 |
| End Date | April 24, 2019 | April 29, 2019 | |
| Renewal 3 | Start Date | April 25, 2019 | April 30, 2019 |
| End Date | May 22, 2019 | May 30, 2019 | |
| Renewal 4 | Start Date | May 23, 2019 | May 31, 2019 |
| End Date | June 19, 2019 | June 29, 2019 |
Illustration of Rule C
Contract Z has a duration of 12 weeks (January 1, 2019 to March 26, 2019). Renewal 1 starts on March 27, 2019. Because the contract's start date and the renewal's start date neither fall on the same day of the month, nor fall on the same number of days before the end of the month, the renewal duration is calculated using the contract's duration in days which is 85.