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# Oracle Property Manager: How does 'Days/ Month Proration Rule' applies for 'Quarterly' frequency?

Member Posts: 2
edited Jan 13, 2020 9:03AM

Payment Term Start date:    20/Oct/2019

Payment Term End date:     05/Nov/2020

Frequency:                           Quarterly

Quarterly Amount:                30,000/=

Actual Amount = 125,483.87

Calculation:

20/Oct/2019 - 19/Jan/2020 --> Quarter 1     = 30,000

20/Jan/2020 - 19/Apr/2020 --> Quarter 2     = 30,000

20/Apr/2020 - 19/Jul/2020 --> Quarter 3      = 30,000

20/Jul/2020 - 19/Oct/2020 --> Quarter 4      = 30,000

20/Oct/2020 - 05/Nov/2020 --> 17 Days --> 12(October) + 5 (November) = ((30,000/3) / 31) * 17 = 5.483.87

Is this calculation correct???

Isn't the correct amount for remaining 17 days should be =

(((30,000/3) / 31) * 12) + (((30,000/3) / 30) * 5) = 3870.97 + 1666.67 = 5,537. 64

• Member Posts: 49 Red Ribbon
edited Jan 13, 2020 4:17AM

Hello,

In general :

Proration Rule: Enter the timing you want to use for prorating rent amounts when a lease begins or ends in the middle of a period. For example, a lease has a monthly rent of \$3000. If you choose 365 Days/Year, for fifteen days of a 30 day month, the rent is \$1479.45 and if you choose Days/Month, the rent is \$1,500. Property Manager has three proration rules.

• 365 Days/Year: Yearly rent/no. of days (365) = daily rentFor example, a lease has a monthly rent of \$3000. If you choose 365 Days/Year, for fifteen days of a 30 day month, the rent is \$1479.45 (\$36,000/365 x 15 = 1479.45).
• 360 Days/Year: Yearly rent/no. of days (360) = daily rentFor example, a lease has a monthly rent of \$3000. If you choose 360 Days/Year, for fifteen days of a 30 day month, the rent is \$1500 (\$36,000/360 x 15 = 1500).
• Days/Month: Monthly rent/days per month = daily rentFor example, a lease has a monthly rent of \$3000. If you choose Days/Month, for fifteen days of a 30 day month, the rent is \$1500 (\$3000/30 x 15 = 1500).
• Note: Property Manager counts days starting with and including the start date, so January 15 until January 31 is 17 days, not 16.

For more information >> https://docs.oracle.com/cd/A99488_03/acrobat/115pnug.pdf  (Exemple 1 - Leases 4 – 27 )

Hope that will help

Best  Regards ,

Sanae BEKKAR

• Member Posts: 2
edited Jan 13, 2020 5:56AM

Dear Sanae,

Thank you for the response.

My question is regarding payment term frequency other than 'Monthly'.

For 'Monthly' proration rule its working as you mentioned above. But when it come to other frequencies such like, Quarterly, Annually, Semi Annually, the proration rule calculation is bit confusing and not tallying with the pattern used in 'Monthly' frequency. Much appreciate if any one can check the same scenario in your version of PM module and see the Total of the Payment schedule.

Thanks & Regards.

• Member Posts: 49 Red Ribbon
edited Jan 13, 2020 9:03AM

Hi,

Following the  documentation    https://docs.oracle.com/cd/E51111_01/current/acrobat/122pnug.pdf  (4-20) , we find that  :

Days/Month (Proration Rule) : Monthly rent/days per month = daily rent

For example, a lease has a monthly rent of \$3000.

If you choose Days/Month, for fifteen days of a 30 day month, the rent is \$1500 (\$3000/30 x 15 = 1500).

So in your case ,  it will be : (((30,000/3) / 31) * 12) + (((30,000/3) / 30) * 5) = 3870.97 + 1666.67 = 5,537. 64

12  from 20/Oct/2020 - 31/Oct/2020

5   from  01/Nov/2020 - 05/Oct/2020

Note: Property Manager counts days starting with and including Managing Leases    , so January 15 until January 31 is 17 days, not 16

Hope that help

Best Regards ,