Month Definitions

The Month Definition field in the Rental Setup page determines how you define your rental months. The options are described in the following table.

Option	Definition
Calendar Days	A month is defined by the number of calendar days in the month.
28 Days	A month is defined as 28 days regardless of the actual number of days in the month.
30 Days	A month is defined as 30 days regardless of the actual number of days in the month.
365/12 Days	A month is defined as 30.417 (rounded) days.

Example – Calculating with full months

In this example, the monthly rental rate is 100.00, the Rental Start Date is April 1st and the Rental End Date is April 30th. The Invoice Period is Month.

In this calculation there are 30 calendar days and 21 work days. A daily rate is not calculated based on the type of month in the Month Definition field because a complete month is to be billed. Therefore, the Month Definition is not considered for the calculation.

Example – Calculating with started months

A started month refers to any day in a month that is after the first day.

In this example, the monthly rental rate is 100.00, the Rental Start Date is April 15th and the Rental End Date is April 30th. The Invoice Period is Month.

In this calculation there are 16 calendar days and 12 work days. A daily rate is calculated based on the type of the month in the Monthly Definition field. This rate will be multiplied with the days to be invoiced in the started month.

Month Definition	Billing Unit	Rental Rate	Calculated Daily Rate	Amount to Invoice by Calendar Days	Amount to Invoice by Work Days
Calendar Days	Month	100.00	3.33	53.33	40.00
28 Days	Month	100.00	3.57	57.14	42.86
30 Days	Month	100.00	3.33	53.33	40.00
365/12 Days	Month	100.00	3.29	52.60	39.45

If there are two started months (Rental Start Date: April 15th and Rental End Date: May 12th), the calculation is done for each line. The advantage of all methods, except Calendar Days, is that the daily rates are the same.

Feedback

Submit feedback for this page .