Contract calculation logic

[Former Member]

Hi Experts,

I met a very strange problem,     first condition is shown as below.

When I simulate, net amount is 3206986.35=  6396448.19 / 365 * 183, which is correct

The next condition is as below:

when I simulate net amount is 3180708.62= 6361417.24 / 2 which is wrong, should be calculated by day.

Frequency is  as below:

I'm wondering why conditions of same contract have totally different logic for calculation, could you give me the solution that system calculate net amount by day?

Thanks

Ian

[Former Member · Accepted solution]

Hi,

This is my understanding , may help you:

What I understood that the year start is April month

Hi, you have two conditions with time slot:

1. 01.04.2014 – 30.09.2014 Year rate = 6396448.19
2. 01.10.2014 – 30.09.2015 Year rate = 6361417.24

In first case condition is only for partial of the frequency unit (year), hence the pro rate is calculated for the applicable days in that year.

Your condition is defined in the second case for the full year, hence the rate will be distributed as per the frequency. In your case cash flow frequency is 1 per year.

Hence in the first case rate has been calculated pro rate based on the number days left in that year, where as in second case rate has been distributed to two financial years equally.

Regards,

Chandra

[Former Member]

It may have something to do with Prorated method.  I choose prorate at begging and end of contract. in this case, this cashflow will consider prorata calculation in first and last period. Am i right?

Ian