Apportionment calculation using Modern quarters
Case I Apportionment day price based on a year
Start date | 01/01/2012 |
|---|
Price per MONTH (excl VAT) | 1000 |
Payment frequency | 1 month |
Quarter type | Modern |
Start payment frequency | 15/01/2012 |
Start / end calculation based on price of | Year |
VAT | 19% |
Contract line does not end in a period containing Feb 29
In this example, the payment frequency is monthly with the apportionment day price based on a year.
Start date | End date | Amount (excl. VAT) | Amount (incl. VAT) |
|---|
01/01/2012 | 14/01/2012 | (1000 * 12) * (14 / 365) = 460,27 | 460,27397 * 1,19 = 547,73 |
15/01/2012 | 14/02/2012 | 1000 | 1190 |
15/02/2012 | 14/03/2012 | (1000 * 12) * (15 / 366) = 491,8033
+ (1,02 * 1000 * 12) * (14 / 366) = 468,1967
= 960 | 960 * 1,19 = 1142,40 |
15/03/2012 | 4/14/2012 | (1,02 * 1000) = 1020,00 | 1020,00 * 1,19 = 1213,80 |
15/04/2012 | 30/04/2012 | (1,02 * 1000 * 12) * (16 / 365) = 536,55 | 536,5479 * 1,19 = 638,49 |
• Here, the financial commitment period begins on 01/01/2012, however, the payment starting date is 15/01/2012. Hence, the apportionment is calculated for the first 14 days based on the day price.
• The monthly payment for the period 15/01/2012 to 14/02/2012 is normal.
• The monthly payment between 15/02/2012 to 14/03/2012 has two changes happening within this period:
- it has the February 29, an extra day, to be included in the calculations (that’s the reason why 366 days are considered for calculations.)
- There is a price change within this period. While the first half of the payment period (15/02 /2012 to 29/02/2012) continues to have the same price, the later part of the month has a new (2%)increased price.
• The monthly payment for the period 15/03/2012 to 14/04/2012 is normal.
• An apportionment is calculated for the period between 15/04/2012 to 30/04/2012, when only 365 days are taken into consideration for calculations. This is because this period falls within the second modern quarter (01/04/2012 to 30/06/2012.)