How do we calculate prorations by DATE?
We take the Monthly Charge $ for the Bin/Service and multiply that by the Bin/Service Qty to get the Actual Bill $.
Exception: If the operand for the bin/service is “G”, then we do not multiply the Monthly Charge $ by the Bin/Service Qty.
We take the Actual Bill $ and multiply that by 12 to get the Yearly Charge $.
Then we take the Yearly Charge $ and divide that by the # of days to use for prorate (found in the cycle master) to get the Daily Charge $.
The next step is to take the Daily Charge $ and Multiply that by the Proration Days (days between the FROM and TO DATE) to get the Proration $.
The TO DATE is not included in the calculation for Proration Days in standard prorations. We calculate through the TO date but not including. However, you can have your system set up to INCLUDE the To Date as part of the calculation on Daily Rental type Charge codes. Contact the Support department if you want this activated at support@soft-pak.com.
Example of difference: From date is 05/01/11 and To date is 05/11/11. Standard i-Pak programs would calculate this as 10 Proration Days. If you activate the option to INCLUDE the To Date, then on daily rental, this would calculate as 11 Proration Days.
If the proration covers a full month, then the system does not do the daily calculations. It takes Monthly charge X # of months to prorate.
Example 1 of Date Proration:
Monthly charge = $40.00 Qty = 1 proration dates are from 5/1/01 to 5/23/01 (22 days)
40 x 12 = 480 (Yearly Charge $)
480 / 365 = 1.315 (Daily Charge $)
1.315 x 22 = 28.93 (Proration $)
Example 2 of Date Proration
Monthly Charge for line #1 = 2.50 x 2 = 5.00 (Actual $)
5.00 x 12 = 60.00 (Yearly $)
60.00 / 365 = .164 (Daily $)
.164 x 10 = 1.64 (Prorated Total for Line 1)
Monthly Charge for line #2 = 15.00 x 1 = 15.00 (Actual $)
15 x 12 = 180.00 (Yearly $)
180.00 / 365 = .493 (Daily $)
.493 x 10 = 4.93 (Prorated Total for Line 2)
Prorated Total for both: 1.64 + 4.93 = 6.57