Contract Rate Algorithm Examples for 28 Day Billing
Example 1
On the Rental Counter, a new contract is created with these settings:
- Billing Frequency is 28 Day
- Prorate End of Billing is selected
- Rate is $5
- Unit of Rate is Week
- Quantity is 12
- Start Date is 8/1/2020
The rental is checked out on 7/31/2020 (to ensure an invoice amount is not created), and checked in on 8/8/2020, which results in a bill of $68.57 for one week.
The bill is calculated by the system as follows:
- First, the quantity is calculated for the entire billing period (28 days):
4 (weeks) * 12 (quantity) * 5 (rate/week) = 240
- The duration of the billing period is calculated from 2020-08-01 to 2020-08-28 23:59:59.997, which results in 28 days
- The check out period is calculated from 2020-08-01 to 2020-08-08 11:59:59.997, which results in 8 days
- Calculate the factor 8 / 28 = 0.2857
- Calculate amount 240 * 0.2857= 68.57 (rounded)
Example 2
On the Rental Counter, a new contract is created with these settings:
- Billing Frequency is 28 Day
- Prorate End of Billing is cleared
- Rate is $25
- Unit of Rate is Week
- Quantity is 1
- Start Date is 8/1/2020
The rental is checked out on 8/1/2020, billed through 8/28/2020, and checked in on 8/30/2020, which results in a bill of $100 for four weeks. The next billing cycle will go from 8/29/2020 to 9/25/2020 (28 days) and create another bill for $100.
Example 3
On the Rental Counter, a new contract is created with these settings:
- Billing Frequency is 28 Day
- Prorate End of Billing is cleared
- Rate is $100
- Unit of Rate is Month
- Quantity is 1
- Start Date is 8/1/2020
The rental is checked out on 8/1/2020 and billed through 8/28/2020, which results in a bill of $92.31. This is calculated as follows: ($100 * 12 months) / 13 = $92.31
Example 4
On the Rental Counter, a new contract is created with these settings:
- Billing Frequency is 28 Day
- Prorate End of Billing is selected
- Rate is $100
- Unit of Rate is Month
- Quantity is 1
- Start Date is 8/1/2020
The rental is checked out on 8/1/2020 and billed through 8/28/2020, which results in a bill of $92.31. This is calculated as follows: ($100 * 12 months) / 13 = $92.31
The rental is checked in on 8/30/2020, which results in a second bill of $6.59 for two days (8/29/2020 to 8/30/2020). This is calculated as follows:
($92.31 * 2 days) / 28 days = $6.59
Example 5
On the Rental Counter, a new contract is created with these settings:
- Billing Frequency is 28 Day
- Prorate End of Billing is cleared
- Rate is $28
- Unit of Rate is 28 Day
- Quantity is 1
- Start Date is 4/2/2021
The rental is checked out on 4/2/2021 and billed through 4/5/2021, which results in a bill of $28 for one 28 day period. For 28 day billing frequency, the calculation for 28 day unit of rate is (# of periods of 28 days) * rate, so for this example, the calculation is: 1 (for one period of 28 days) * 28 = $28.
Example 6
On the Rental Counter, a new contract is created with these settings:
- Billing Frequency is 28 Day
- Prorate End of Billing is cleared
- Rate is $28
- 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 $56.00 for two 28 Day periods. The bill is calculated as follows:
- Bill from 4/2/2021 to 4/29/2021 (one 28-day period) for $28
- Bill from 4/30/2021 to 5/27/2021 (one 28-day period) for $28