This policy allows you to set various rules as they relate to the BILLING system. In particular, for the Application and Leasing setup, we will focus on the PRO-RATE calculation and setup.
Most companies use a pro-rate method to manage their leases. To ensure your rules are set up correctly, the prorate rules need to be configured correctly. The rules can be determined by Organization, Province/State or Building level.
Step 1: Navigate to Administration→ Policies → Finance→ Billing
Select the Billing tab.
Step 2: Choose your proration method:
| Proration Method | Details |
| None |
No prorate; the tenant will be charged the full month of rent for the prorated month
E.g if the move-in date is August 15th, the tenant is charged the total monthly amount for August |
| Actual |
Prorate is calculated based on the monthly rent price, actual days in the prorated month that the tenant will be living there, and the actual number of days in the prorated month.
Calculation: (monthly rent / # of days in the month) x # of actual days occupying the unit = prorated rent amount |
| Standard |
Prorate is calculated based on the monthly rent price, 30 days in the prorated month and the actual number of days of the lease in the prorated month. Calculation: (monthly rent / 30 days) x # of days occupying the unit = prorated rent amount |
| 30-Day Month |
Prorate is calculated based on the monthly lease price, 30 days in the prorate month, and the number of days of the lease in the prorated month between the start date and the 30th of the month. Calculation: (monthly rent / 30 days) x # of days of the lease in the prorated month between the start date and 30th of the month = prorated rent amount
Note: For 31 day month, if the start date is 30th or 31st, the number of days is 1. For 31 day month, if the start date is 29th, the number of days is 2. For 28 day month, if the start date is the 25th, the number of days is 4. E.g. Count of Days (Aug 8 - Aug 31) = 23 days |
| Annual (Standard, 365 Days) |
Prorate is calculated based on annualized lease price, the actual number of days in the prorated month, and 365 days in a year Calculation: (total rent for the year / 365 days in a year) x # of days occupying the unit = prorated rent amount |
| (Actual, Leap Year Check) |
Prorate is calculated based on annualized lease price, the actual number of days in the prorated month, and 365 days in a year (OR 366 days where it is a leap year)
(total rent for the year / 365 days in a year) x # of days occupying the unit = prorated rent amount
Leap Year Calculation: If it is a leap year, the calculation will be as follows. (total rent for the year / 366 days in a year) x # of days occupying the unit = prorated rent amount |
Step 3: Choose your Confirmation Method. This is for a lease billing process. This should be set to automatic to ensure you do not have to manually review every lease bill monthly.
Step 4: Choose your rounding offset
Rounding offset defines the lease term end date.
| Rounding offset values | Description |
| Numbers: 1-31 | day of rounding offset from the start date of the billing cycle (or 1st day of the month, if Billing Cycle Start Day is set to 1) |
| Number: 0 | rounding to the last day of the previous billing cycle (or previous end of the month, if Billing Cycle Start Day is set to 1) |
| Not Set | no rounding (future functionality) |
Billing Cycle Start Day can be set in Billing Policy in the Available Billing Types section. If the billing cycle start day is set to 1, it is equal to the 1st of the month.
If you want lease applications set for 12-month terms unless it is not on the 1st (then pro-rate to 12 months + prorate) set the Rounding Offset for Pro-rate to "1"