Formula Used for Computation
Consider the data from the above example in the formula given in the table to compute the fee amount for the partial prorated period.
|
Proration Method |
Formula |
Remarks |
|---|---|---|
|
Calendar Days of First Month |
(24/31)*14.99 |
In this case, the denominator ‘31’ is taken from the no. of calendar days in the month of Jan '24. |
|
30 Days |
(24/30)*14.99 |
In this case, the denominator is always 30 regardless of the month(s) in the prorated schedule |
|
No Bill |
NA |
No bill is generated for the first partial period and the fee amount is prorated to the last billing schedule. |
|
Maximize A/R |
(24/29)*14.99 |
In this case, the prorated schedules span across Jan & Feb months. Of these two, the Feb month has fewer calendar days.In 2024, Feb has 29 days so is taken in the denominator. |