Billing Calculation

The system uses this formula to calculate the total amount for a contract:

Billed Amount = Billing Duration * Rental Rate * Quantity

The system calculates the billing duration using the values in Rent UM (Rental Rate Unit of Measure), Line Billed From, and Line Billed To.

For example, if you are billing for a rental contract where Line Billed From = 06/26/14, Line Billed To = 07/31/14, Requested Billing Day is 31, and Billing Days in a Week (from the Rental Constants) = 6, then you get the following:

The days between Billed From and Billed To = 36

The work days between Billed From and Billed To = 31

The days in the Billed Through Month (July) = 31

The work days in the Billed Through Month (July) = 27

Using the above values, the billing duration is calculated as:

When the Rent UM is monthly, the billing duration = Work days between Billed From to Billed Through/Work days in Billed through Month = 31/27= 1.14

When the Rent UM is weekly, the billing duration = Work days between Billed From to Billed Through/Billing Days in a Week (from the Rental Constants) = 31/6= 5.16

When the Rent UM is daily, the billing duration = Work days between billed from to billed through = 31

In the Rental Constants program (P54R01), you have the option to specify the billable days in a week, or enter a calendar that the system uses to get the billable days. If you have specified the Billing Days Per Week constant, the system bases the billable days on the number of work days in the week. If the billable days = 5, then Saturdays and Sundays are non-billable days. If billable days = 6, Sundays are non-billable days. If billable days = 7, all days in a week are billable days.

If you have not specified the Billing Days Per Week constant, and instead entered a workday calendar in the Rental Constants program (P54R01), the system uses the specific workday calendar to calculate the billing duration.

For a monthly and daily Rent UM (Rental Rate Unit of Measure), the system looks at the workday calendar for the whole term to calculate the billing duration. For a weekly Rent UM, the system uses the workday calendar only for the final partial week. The system does not use the calendar to check if Workdays (W's) and Weekdays (E's) are regular or irregular for a complete week that has 7 days. Irregular Es and Ws in a complete week will not be reflected in the billing duration.