Quarter Days: Calculation Examples
Use
You can specify that an annual rent is divided into equal portions, although the periods themselves are of unequal length. This procedure is standard in certain countries. In the United Kingdom, this use of fixed periods is referred to as quarter days.
Note
For more information, see Frequency Term: Quarter Days (UK) .
The following examples relate to that documentation.
Example for Rounding Difference:
You are in contract processing on the
Posting Parameters
tag page. You enter a date in the
User-Def. Start
(user-defined start) field for the
Frequency Term.
The system then adds the rounding difference to the period set up in Customizing containing this date.
Example:
In Customizing, the
RnDf
(Period for Rounding Differences) indicator is set for period 1 (12/25 through 03/24). The start of the period is set as 04/01/2000. The rounding difference will be added to the period containing 04/01. In 2003 this would be the period 03/25/2003 through 06/23/2003.
Example for Due Date Calculation:
The due date is calculated on the basis of the total period. If periods are split, the due date remains the same (see Frequency Term: Quarter Days (UK) ).
Example:
The total period is from 12/25/2003 to 03/24/2004. The payment form is
in advance
, with a resulting due date of 12/25/2003.
Due to an increase of the condition amount, the total period is split on 02/01/2004 into these two smaller periods:
12/25/2003 to 01/31/2004 => due date is 12/25/2003
02/01/2004 to 03/24/2004 => due date is 12/25/2003
Example for Prorated Calculation:
There are two methods available for calculating the amounts for fixed periods:
Exact Day
and
By Year
:
If you choose
Exact Day
, the period amount is divided by the number of days in the period and multiplied by the number of days in the partial period.If you choose
By Year
, the calculation of the partial period is based on the annual amount. This annual amount is divided by 365 (or 366 in a leap year) and multiplied by the number of days in the period. If only part of the partial period is in a leap year, then the system calculates two partial amounts:
Example:
The calculation method is
By Year.
On December 12 the annual condition amount increased from
12,000 to 13,000 EUR:
Period (X): 12/25/2003 to 12/27/2003 => 12,000 / 365 * 3 days = 98.63
Period (X+1): 12/28/2003 to 03/24/2004
This period (X+1) is internally split into two periods for the prorated calculation:
12/28/2003 to 12/31/2003 => 13,000 / 365 * 4= 142.4657 (the figure is rounded)
01/01/2004 to 03/24/2004 => 13,000 / 366 * (31 + 29 + 24) = 2983.6065…
The resulting total for period (X+1) is 3126.07.