Invoicing Parameters
The following parameters drive the invoicing of Rental Orders:
- Month Definition
- Minimum Rental Periods
- Invoice Period
- Calendar Based
- Rental Start Date
- Rental End Date
Month Definition
The Month Definition field in the Rental Setup page determines how you define your rental months if you use Months, Quarterly, Half Year, or Yearly Invoice Periods instead of Days/Weeks. For more information, see Invoice Calculation with Uniform Months.
Minimum Rental Periods
The Min. Rental Period field in the Rental Setup page and on items/machines is typically used for companies whose rental periods exceed a month but do not require prepayments. When the rental item/machine is shipped to the customer, a rental ledger entry for the minimum rental period is created. When the first invoice is created, this period is created as a separate line to ensure that the minimum period is invoiced. Afterwards, the invoices are created based on the defined invoice periods for the contract. For more information, see Minimum Rental Periods.
Invoice Periods and Calendar Based Date Calculations
For an Invoice Period of Month that does not use the Calendar Based setting, the period always uses the Microsoft Dynamics 365 Business Central date formula of +1M-1D. This means it starts at the Next Invoice Period Start Date and adds this date formula to determine the Next Invoice Period End Date.
This is useful for calendar months, when the rental begins January 1st, the invoice will end on January 31st because one month is added (February 1st) and then backed up one day.
The same is done if it not the calendar month: the start date for invoicing is the Rental Start Date if no invoicing has occurred or it is the last invoiced date +1.
The End Date is calculated by using the following date formulas:
| Not Calendar Based | Calendar Based | ||
|---|---|---|---|
| Day | +1D | Day | N/A |
| Week | +1W-1D | Week | N/A |
| Month | +1M-1D | Month | +CM |
| Two Month | +2M-1D | Two Month | +CM+1M |
| Quarter | +1Q-1D | Quarter | +CQ |
| Half Year | +6M-1D | Half Year | If Month is <=6, then +CY-6M; otherwise, +CY |
| Year | +12M-1D | Year | +CY |
Therefore, if the last day was not invoiced in the last invoice created, it will be included in the next invoice. However, COSMO Rental does not stop at the Rental End Date automatically, so if no return was posted when the invoice is created, an invoice will be created for a full invoicing period (see Returns).
Invoice Periods and Prepaid Date Calculations
If the Prepaid checkbox is selected on the line, the due date is the Next Invoice Period Start date. If the Prepaid checkbox is not selected, the due date is the Next Invoice Period End date.
For example, if a rental period is April 15th through December 31st, the Invoice Period is Month, the Prepaid checkbox is selected, and the invoice is to be created through May 15th:
- The first invoice period starts on April 15th and ends on April 30th. This is because the Start Date of the period is the due date of it.
- The second starts on May 1st and ends on May 31st. This period is due on May 1st so the invoices are created up to May 31st.
Example – Invoicing Parameter Results
In this example, an item for a quantity of one is rented for various prices based on the invoice period:
| Invoice Period | Billing Unit | Unit Price |
|---|---|---|
| Day | DAY | 10 |
| Week | WEEK | 35 |
| Month, Two Months, Quarter, Half Month, Year | MONTH | 125 |
The tables below illustrate the invoicing possibilities based on these parameters.
Invoice Period – Day
| Prepaid | Rental Start Date | Rental End Date | Invoice Result for Invoice Period = Day |
|---|---|---|---|
| 4/15/2022 | 4/21/2022 | A separate line is created for each day to be posted to the rental G/L account. The invoice periods run from the 15th to the 21st (a line for each day). The unit price is the same for each line for the period (10). Therefore, 10 x 7 days (4/15 – 4/21) = 70 invoice total. |
|
| X | 4/15/2022 | 4/21/2022 | A separate line is created for each day to be posted to the prepaid G/L account. The invoice periods and unit prices are the same as for non-prepaids. |
Notă
Calendar Based invoicing is not possible with Invoice Period = Day.
Invoice Period – Week
| Prepaid | Rental Start Date | Rental End Date | Invoice Result for Invoice Period = Week |
|---|---|---|---|
| 4/15/2022 | 4/30/2022 | A separate line is created for each week (full and partial) to be posted to the rental G/L account. The invoice periods run from the 15th to the 30th (4/15 – 4/21, 4/22 – 4/28, and 4/29 – 4/30). The unit price is the same for the first and second full weeks (35) and then adjusted for the remaining two days (35 unit price / 7 days = 5). Therefore, 5 x 14 days (4/15 – 4/21 = 35, 4/22 – 4/28 = 35) and 5 x 2 days (4/29 – 4/30 = 10) = 80 invoice total. |
|
| X | 4/15/2022 | 4/30/2022 | A separate line is created for each full week to be posted to the prepaid G/L account. The invoice periods run for complete weeks (4/15 – 4/21, 4/22 – 4/28, and 4/29 – 5/5). The unit price is the same for each period (35). Therefore, 35 x 3 full weeks (4/15 – 5/5) = 105 invoice total. |
Notă
Calendar Based invoicing is not possible with Invoice Period = Week.
Invoice Period – Month
| Calendar Based | Prepaid | Rental Start Date | Rental End Date | Invoice Result for Invoice Period = Month |
|---|---|---|---|---|
| 4/15/2022 | 12/31/2022 | A separate line is created for each month to be posted to the rental G/L account. The unit price is the same for each line (125). As this is not calendar based, the invoice periods run from the 15th to the 14th of the month ranges. |
||
| X | 4/15/2022 | 12/31/2022 | A separate line is created for each month to be posted to the rental G/L account. The first month is a lower unit price because it is a portion of the month (125 unit price / 30 days in April = 4.166 prorated amount; therefore, 4.166 x 16 days (4/15 – 4/30) = 66.67). The unit price for the remaining months is 125. |
|
| X | 4/15/2022 | 12/31/2022 | A separate line is created for each month to be posted to the prepaid G/L account. The invoice periods run from the 15th to the 14th of the month ranges. |
|
| X | X | 4/15/2022 | 12/31/2022 | A separate line is created for each month to be posted to the prepaid G/L account. The first month is a lower unit price because it is a portion of the month. The unit price for the remaining months is 125. |
Invoice Period – Two Months
| Calendar Based | Prepaid | Rental Start Date | Rental End Date | Invoice Result for Invoice Period = Two Months |
|---|---|---|---|---|
| 4/15/2022 | 12/31/2022 | A separate line is created for each month range to be posted to the rental G/L account. The unit price is the same for each line (250). The invoice periods run from the 15th to the 14th of the month ranges. |
||
| X | 4/15/2022 | 12/31/2022 | A separate line is created for each month range to be posted to the rental G/L account. The first month is a lower unit price (125 unit price / 30 * 16 = 66.67 for April and 125 for all of May, therefore, 66.67 + 125 = 191.67). The unit price for the remaining months is 250. |
Invoice Period – Quarter
| Calendar Based | Prepaid | Rental Start Date | Rental End Date | Invoice Result for Invoice Period = Quarter |
|---|---|---|---|---|
| 4/15/2022 | 12/31/2022 | A separate line is created for each quarter to be posted to the rental G/L account. The unit price is the same for each line (375). As this is not calendar based, the invoice periods run from the 15th to the 14th of the month ranges. |
||
| X | 4/15/2022 | 12/31/2022 | A separate line is created for each quarter to be posted to the rental G/L account. The first month is a lower unit price (16 days / 30 days x 125 unit price = 66.67 + 250 (two months unit price) = 316.67). The unit price for the remaining quarters is 375. |
Invoice Period – Half Year
| Calendar Based | Prepaid | Rental Start Date | Rental End Date | Invoice Result for Invoice Period = Half Year |
|---|---|---|---|---|
| 4/15/2022 | 12/31/2022 | A single line is created for the six-month range, from 4/16 – 10/14 at 125 x 6 = 750. | ||
| X | 4/15/2022 | 12/31/2022 | Two lines are created for each half of year. - First half (16 days / 30 days x 125 unit price = 66.67 + 250 (two months unit price) = 316.67). - Second half (six months * 125 = 750). |
|
| 1/1/2022 | 12/31/2022 | Two lines are created for each six-month range, at 750 each. |
Invoice Period – Year
| Calendar Based | Prepaid | Rental Start Date | Rental End Date | Invoice Result for Invoice Period = Year |
|---|---|---|---|---|
| 1/1/2022 | 12/31/2022 | One line is created for the year, for the amount of 1500. | ||
| 4/15/2022 | 4/15/2023 | One line is created for the year, for the amount of 1500. | ||
| X | 4/15/2022 | 4/15/2023 | A single line is created for the portion of the year, from 4/15 – 12/31 (16 days / 30 days x 125 unit price = 66.67 (April) + 1000.00 (eight months unit price) = 1066.67). |
Fixed Rate Invoice Periods
The Fixed Rate invoice period is used only for fixed rate invoicing, which means that periodic invoicing is skipped and the amount agreed upon will be invoiced on start or at end of the rental as determined by the Prepaid setting on the line.
For more information, see Fixed Rate Invoicing.
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