sevyw69
Member
Hi,
We are looking to start using multi-year service contracts and are currently testing this, with some odd/unexpected results. For example, we have a monthly billed 2 year contract (so Billable Duration 24 months) billing $100 per month, with Contract Header Start/End Dates as 15/08/22 to 14/08/24 and the same dates for Contract Detail Start/End.
The billing process seems to work perfectly and bills $100 each month for the 24 months of the contract. However, the monthly amortization figures are odd.
When we run the R17321 Amortization Workfile Generation program (standard/unmodified) monthly for the months Sep-22 through Mar-23 the amortization amount each month is the number of days x daily amortization amount - this is as expected. But when we then run R17321 for Apr-23 which is in our new FY (starting 1st April) the monthly amortization is 1/12th of the annual amount (i.e. $100 exactly, which equates to 30.4 days approx). This then continues for the duration of the contract, amortizing 1/12th each month.
We are at a loss to understand how the calculation basis appears to change part way through the contract, seemingly triggered by the change of FY. Has anyone seen this behaviour before or give any suggestions as to why it is happening?
Thanks in advance...
We are looking to start using multi-year service contracts and are currently testing this, with some odd/unexpected results. For example, we have a monthly billed 2 year contract (so Billable Duration 24 months) billing $100 per month, with Contract Header Start/End Dates as 15/08/22 to 14/08/24 and the same dates for Contract Detail Start/End.
The billing process seems to work perfectly and bills $100 each month for the 24 months of the contract. However, the monthly amortization figures are odd.
When we run the R17321 Amortization Workfile Generation program (standard/unmodified) monthly for the months Sep-22 through Mar-23 the amortization amount each month is the number of days x daily amortization amount - this is as expected. But when we then run R17321 for Apr-23 which is in our new FY (starting 1st April) the monthly amortization is 1/12th of the annual amount (i.e. $100 exactly, which equates to 30.4 days approx). This then continues for the duration of the contract, amortizing 1/12th each month.
We are at a loss to understand how the calculation basis appears to change part way through the contract, seemingly triggered by the change of FY. Has anyone seen this behaviour before or give any suggestions as to why it is happening?
Thanks in advance...
