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Auto Extending Charge Duration

(V 02.00.01-00)

When posting an Invoice of a Periodic Billing Order which is having Billing Terms of either Daily or Weekly, system will auto extend the charge duration to the next billing duration (either day or week), if any items are Out on the Order and generate an Invoice for it. Refer Illustration below:

Illustration

  1. Define Inv rental Price as below:

  2. Day Price = 40

  3. Week Price = 60

  4. Month Price = 100

  1. Set the Unit as Day.

  2. DIW as 3 and DIM as 9.

Pricing

Table 1.0

Day

Order Line Amount

Calculation

1

40

Day Price of 40 will be applied for Day 1

2

80

40*2 = 80

3

120

40*3 = 120

4

120

Day 4 to 7 Price will remain as 120, as DIW is 3.

5

120

6

120

7

120

8

160

Price on 1st Day of 2nd week:

= Price of 1st week  + Price for 1st Day in 2nd Week

= 120+40 = 160

9

200

Similarly for Price 2nd Day of 2nd Week :

= 120+80 = 200

10

240

Price for 3rd Day of 2nd Week is:

= 120+120 = 240

11

240

Price for the next 4 days of the 2nd week i.e., 11th day to 14th day will remain as 240, since DIW is only 3.

12

240

13

240

14

240

15

280

Price on 1st Day of 3rd week

= Price of 1st week  + Price 2nd Week  + Price of 1s day of 3rd week

= 120 + 120 + 40 = 280

16

320

Similarly for Price 2nd Day of 3rd Week

= 240+80 = 320

17

360

Price 3rd Day of 3rd Week

= 240+120 = 360

18

360

Day 18 to 28 the Price will remain as 360, since only 9 days in a month has to be charged as DIM = 9

 

19

360

20

360

21

360

22

360

23

360

24

360

25

360

26

360

27

360

28

360

29

400

Price for 1 month + 1 Day

= 360 + 40 = 400

 

In this illustration above as Billing Terms is Daily invoices will be generated as mentioned below:

  • On posting the Invoice for Day 1 having Invoice amount as 40, system will auto extend the Charge Duration to the 2nd Day and generate Invoice for the second day with Invoice Amount as 40.

  • On posting the Invoice for Day 2, it will  extend the Charge Duration to the 3rd Day and generate Invoice for the third day with Invoice Amount as 40

  • On posting the Invoice for Day 3, it will  extend the Charge Duration to the 4th Day but an Invoice will not be generated for the 4th Day as chargeable Days in a Week cannot exceed 3. Hence in the above illustration Day 4 - 7 will not be chargeable, therefore, system will continue to check till it finds the next chargeable day. Day 8 that is 1st Day of the 2nd Week is chargeable hence system will generate an Invoice for the 8th Day with Invoice amount as 40

  • Likewise, system will auto extend the Charge duration and generate the Invoice on posting the preceding Invoices.

In this illustration above as Billing Terms is Weekly invoices will be generated as mentioned below:

  • On posting the Invoice for  Week 1 having Invoice amount as 120, system will auto extend the Charge Duration to the 2nd Week and generate Invoice for the second week with Invoice Amount as 120.

  • On posting the Invoice for Week 2, it will  extend the Charge Duration to the 3rd Week and generate Invoice for the third week with Invoice Amount as 120

  • On posting the Invoice for Week 3, it will  extend the Charge Duration to the 4th Week but an Invoice will not be generated for the 4th Week as chargeable Days in a Month cannot exceed 9.

  • Hence in the above illustration Week 4 will not be chargeable, therefore, system will continue to check till it finds the next chargeable week.

  • Likewise, system will auto extend the Charge duration and generate the Invoice on posting the preceding Invoices.

For more information on Pricing and Billing of an Order when line level Unit is Defined for a Line, click here.

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