Contract Rate Algorithm Examples for Monthly Billing
Example 1
On the Rental Counter, a new contract is created with these settings:
- Billing Frequency is Monthly
- Prorate End of Billing is cleared
- Rate is $25
- Unit of Rate is Week
- Quantity is 1
- Start Date is 8/1/2020
The contract is checked out on 8/1/2020 and billed through 8/31/2020, which results in a bill of $125.00 for one month (five weeks).
The contract is then checked in on 9/20/2020, which results in a total bill of $125. The bill is calculated as follows:
- Bill from 9/1/2020 to 9/30/2020 (one month) for $125
Example 2
On the Rental Counter, a new contract is created with these settings:
- Billing Frequency is Monthly
- Prorate End of Billing is selected
- Rate is $25
- Unit of Rate is Week
- Quantity is 1
- Start Date is 8/1/2020
The contract is checked out on 8/1/2020 and billed through 8/31/2020, which results in a bill of $125 for one month (five weeks).
The contract is then checked in on 9/20/2020, which results in a total bill of $83.33. The bill is calculated as follows:
- Bill from 9/1/2020 to 9/20/2020 (20 days)
- ($125 monthly rate * 20 days) / 30 days = $83.33
Example 3
On the Rental Counter, a new contract is created with these settings:
- Billing Frequency is Monthly
- Prorate End of Billing is cleared
- Rate is $100
- Unit of Rate is Month
- Quantity is 1
- Start Date is 8/1/2020
The contract is checked out on 8/1/2020 and billed through 8/31/2020, which results in a bill of $100 for one month.
The contract is then checked in on 9/20/2020, which results in a total bill of $100. The bill is calculated as follows:
- Bill from 9/1/2020 to 9/30/2020 (one month) for $100
Example 4
On the Rental Counter, a new contract is created with these settings:
- Billing Frequency is Monthly
- Prorate End of Billing is selected
- Rate is $100
- Unit of Rate is Month
- Quantity is 1
- Start Date is 8/1/2020
The contract is checked out on 8/1/2020 and billed through 8/31/2020, which results in a bill of $100 for one month.
The contract is then checked in on 9/20/2020, which results in a total bill of $66.67. The bill is calculated as follows:
- Bill from 9/1/2020 to 9/20/2020 (20 days)
- ($100 monthly rate * 20 days) / 30 days = $66.67
Example 5
On the Rental Counter, a new contract is created with these settings:
- Billing Frequency is Monthly
- Prorate End of Billing is cleared
- Rate is $1000
- Unit of Rate is Year
- Quantity is 1
- Start Date is 8/1/2020
The contract is checked out on 8/1/2020 and billed through 8/31/2020, which results in a bill of $83.33 for one month. This is calculated as follows:
- $1000 / 12 = $83.33
The contract is then checked in on 9/20/2020, which results in a total bill of $83.33. The bill is calculated as follows:
- Bill from 9/1/2020 to 9/30/2020 (one month) for $83.33
Example 6
On the Rental Counter, a new contract is created with these settings:
- Billing Frequency is Monthly
- Prorate End of Billing is selected
- Rate is $1000
- Unit of Rate is Year
- Quantity is 1
- Start Date is 8/1/2020
The contract is checked out on 8/1/2020 and billed through 8/31/2020, which results in a bill of $83.33 for one month. This is calculated as follows:
- $1000 / 12 = $83.33
The contract is then checked in on 9/20/2020, which results in a total bill of $55.56. The bill is calculated as follows:
- Bill from 9/1/2020 to 9/20/2020 (20 days)
- (($1000 monthly rate / 12) * 20 days) / 30 days = $55.56
Example 7
On the Rental Counter, a new contract is created with these settings:
- Billing Frequency is Monthly
- Prorate End of Billing is selected
- Rate is $30
- Unit of Rate is 28 Day
- Quantity is 1
- Start Date is 4/2/2021
The contract is checked out on 4/2/2021 and billed through 5/1/2021, which results in a bill of $32.14 for one month. This is calculated as follows:
- (30 days * (rate $30 / 28)) = $32.14
The contract is then checked in on 4/29/2021, which results in a credit of $2.14 for two days. This is calculated as follows:
- (2 days * (rate $30 / 28)) = $2.14