Custom Terms and Partial Month Calculations

This article explains how NetSuite calculates custom terms for subscriptions or transactions that don't start and end exactly on month boundaries.

How NetSuite Calculates Partial Months

NetSuite uses the following formula to calculate partial months:

            Term = ROUND(Number of Months + (Number of Days ÷ 30.42), 2) 

          

In this formula, 30.42 represents the average days per month to help normalize calculations.

To enter custom terms, set custom start and end dates on your subscription or transaction. NetSuite applies the formula to calculate the precise term.

Example Calculations

Start Date

End Date

Months

Days

Calculation

Term

1/1/25

12/10/25

11

10

11 + (10 ÷ 30.42) = 11.33

11.33

1/1/25

12/20/25

11

20

11 + (20 ÷ 30.42) = 11.66

11.66

Related Topics

General Notices