Prorations not working correctly

YevetteM

The proration's are not being calculated correctly. At first I thought they were all being based on 28 day months, even though I have the them set at 30 day months in the company setup. But it turns out that they seem to be calculating differently even between tenants. When you use the proration calculator, set the date in it at one day, you get the same amount for 28 day, FOM, and Anniversary. For example, setting the rate at $165 you get $5.89 no matter which one you select. It didn't used to be that way. Rent of $165 based on a 30 day month should be $5.50 but that is not what is being calculated. Recently did a relocation and the proration for 20 days on a $165 unit was calculated to be $117.86 - but it should have been $110.  It gets even stranger, if you go to different tenants with that rate, and use the proration calculator in the payment screen you get different results. How do we get this corrected ASAP?

YevetteM

I just realized something else. Under another tenant whose rate is also $165 per month, using the calculator and entering a start and end date 27 days apart - (remember my setup says to calculate at 30 day months, which should be $5.50 per day) I get three different amounts for the different options: 28 day says $159.11 or $5.8929 per day, FOM says $147.70 or $5.4703 per day, Anniversary says $155.69 or $5.7662 per day. NONE OF WHICH IS CORRECT. If I change the date range in the calculator to a 6 day period - I get $35.36 for a 28 Day calculation or $5.8929, but on FOM & Anniversary I get $31.94 which is $5.32 per day! Where does that amount come from? Why is the calculation different even based on the number of days? The daily rate should not change based on the number of days in the proration period. I don't understand this at all. It's really messed up.

If your site uses ANY proration's at all: transfers, vacates, move-ins etc. THEY ARE ALL WRONG, unless you want to calculate at 28 days. That seems to be the only one that is remotely consistent.

Garrett_Boone

Hi @YevetteM, the 30 day prorate setting is used during a move out and is independent of the Prorate Calculator. This means that move outs will treat all months as 30 day months and prorate accordingly. The calculator is based solely on the parameters that are set by the user for each situation. I will address your specific examples below:

$165 for one day comes to $5.89 for 28 day billing because 165/28 = 5.8928 which rounds to $5.89. The result is the same for FOM and Anniversary billing since we are currently in February, which has 28 days. This means the calculation is still 165/28 = 5.8928. 

To calculate 20 days in a $165 unit in the month of February, the equation is 165/28*20 = 117.8571 which rounds to $117.86.

Without knowing the exact parameters in the scenario in your second post, I cannot post the formulas for those. It is important to keep in mind that the Prorate Calculator is always exact, so it depends on the exact date range. If the date range spans multiple months, the calculation takes into account the number of days in each month. For example, let's look at $165 from 2/28 - 3/1. Since February has 28 days and March has 31, the calculation would be (165/28)+(165/31)=11.22. 

I hope you find this helpful. If you have any other concerns please just ask and I will be happy to assist. 

YevetteM

So in setup, the 30 day proration setting has no affect on anything else unless it is being used for a move out? Otherwise it's always the number of days in the current month? And if it spans two months, it's the number of days in each month?

Garrett_Boone

That is correct. The 30 day setting is to determine how move outs will be handled. The Prorate Calculator simply calculates an amount based on user input and is not restricted by any settings.

YevetteM

Then what's the difference between FOM & Anniversary in the Calculator? Why would those be options for calculating a proration?

Orkocean

Some sites operate on First of month billing and others operate on anniversary date billing. 

YevetteM

Orkocean said:

Some sites operate on First of month billing and others operate on anniversary date billing. 

I get that, but I am not sure what that has to do with the proration calculator. How does that affect the daily rate of a unit between two dates?

Orkocean

February - 28 days.. First of the month would calculate 28 days to divide by, If you do Anniversary date of lets says February 5th to March 5th it now needs to divide the February dates by 28 days and the March dates by 31 days.