Rental Rules - Prorate Field

Can someone explain the difference between the following values in the Prorate field in the P1302.

N: Use hierarchy until the monthly rate is reached.

H: Use hierarchy at all times.

If I have value N - then when I hit the first month, any fractions of a month are billed at the monthly pro rate? That's how I read it.so eg, 1 month 5 days is billed at 1 month and 5/20 of the monthly rate assuming 20 working days in the month?.....or......1 month 5 days is billed at 1 month and then the daily rate for 5 days??

If I have value H - using the same example for 'N', I would bill at 1 month then 5 days at the daily rate? In that case this would make H & N logically the same if N bills as per my last sentence. So N probably uses the monthly pro rate once I go over the first month or it's something completely different, hence my request for information.