Monthly Invoicing with Partial Returns
This section describes how monthly based rental contract invoices with partial returns are calculated for complete and partial months.
Example – Calculating with partial return and full month
In this example, four pieces of a rental item are entered in a Rental Contract for the entire month of April.
| Rental Position | Type | No. | Location Code | Customer Location Code | Quantity | UOM | Rental Billing Unit | Rental Start Date | Rental End Date | Rate Unit Price | Unit Price Total Rental Time | Amount Total Rental Time |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Rental | Item | REN-I00001 | RENTAL | R-40000 | 4 | PCS | MONTHS | 4/1/2022 | 4/30/2022 | 100.00 | 100.00 | 400.00 |
The normal rental amount to invoice will be 400.00.
In the following scenario all items were shipped to the customer on April 1st but were returned at different dates.
The invoice amount must be calculated line by line:
- The first line has a rental period over the whole time, so the calculated amount is 100.00.
- The second line has a rental period over 28 days so the calculated amount is 93.33 (100/30*28).
- The third line has a rental period over 20 days, so the calculated amount is 66.67 (100/30*20).
- The fourth line has a rental period over 15 days, so the calculated amount is 50.00 (100/30*15).
The total amount to invoice is 310.00, not 400.00 as indicated in the rental contract line.
Example – Calculating with partial return and started month
A started month refers to any day in a month that is after the first day.
In this example, four pieces of a rental item are entered in a Rental Contract from April 26th until May 19th.
| Rental Position | Type | No. | Location Code | Customer Location Code | Quantity | UOM | Rental Billing Unit | Rental Start Date | Rental End Date | Rate Unit Price | Unit Price Total Rental Time | Amount Total Rental Time |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Rental | Item | REN-I00001 | RENTAL | R-40000 | 4 | PCS | MONTHS | 4/26/2022 | 5/19/2022 | 100.00 | 77.96 | 311.83 |
The normal rental amount to invoice would be 311.83:
- April: (100/30 days) * 5 days * 4 items = 66.67
- May: (100/31 days) * 19 days * 4 items = 245.16
In the following scenario all items were shipped to the customer on April 26th but were returned at different dates.
The invoice amount must be calculated line by line:
- The first line has a rental period over 24 days so the calculated amount is 77.96 = ((100/30)*5)+((100/31)*19).
- The second line has a rental period over 20 days so the calculated amount is 65.05 = ((100/30)*5)+((100/31)*15).
- The third line has a rental period over 15 days so the calculated amount is 48.92 = ((100/30)*5)+((100/31)*10).
- The fourth line has a rental period over 4 days so the calculated amount is 13.33 = (100/30)*4.
The total amount to invoice is 205.26, not 311.83 as indicated in the rental contract line.
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