Use this subtask to enter a starting date, ending date, and bill cycle for the associated line established as a Recurring item (Line Type "REC"). Data in this screen defaults from the Header Information subtask and can be changed. Recurring sales order lines are designed for invoicing customers' items over a recurring schedule. Possible uses of recurring invoices are monthly or quarterly services or maintenance charges.
When you need to invoice recurring lines on a prorated basis, the system prorates by a 30 Day Month method or by the Actual Day Month method, as selected in the Prorate Recurring group box in the Sales Order Settings screen. The system uses the data entered in this subtask along with the chosen prorate method to determine invoice amounts.
For example, you enter a sales order line item for a service agreement, hardware maintenance. You enter the line item as a recurring line type. The maintenance agreement is effective for the period 7/22/02 through 12/31/02 and the price is $1,000 per month. The customer is billed monthly and the Actual Day Month prorate method is used.
Certain fields function differently when you enter a recurring line item. The Order Quantity must be greater than zero. In the above example, you would enter an Order Quantity of "1," which represents one maintenance agreement. The Gross Unit Price is the price per quantity per cycle. In the example, the billing cycle is monthly, so you would enter $1,000.00 as the Gross Unit Price. The Volume Discount is not affected by the recurring line type, so you could enter the Net Unit Price along with the Volume Discount instead of the Gross Unit Price.
The Ext Price Amount is calculated by the system and cannot be changed for recurring line items. The calculation is as follows:
Extended Price Amount =
(Order Quantity × Net Unit Price × Number of complete billing cycles)
+ (Prorated billing cycle amount)
The prorated billing cycle amount is computed as follows:
Prorated Billing Cycle Amount =
(Unit Price per month ÷ 31* or 30 days) × Number of days in prorated cycle
*Actual Day Month Prorate Method uses the actual number of days in a month, and the 30-Day Month Prorate Method uses 30 for each month.
For our example, the prorated invoice amount is calculated as follows:
Prorated Invoice Amount =
($1,000.00 per month ÷ 31 days) × 10 days = $322.58
The system prorated the month of July using the starting date of 7/22 and the ending date of 7/31. The starting date is included as the first date of the prorated cycle, which results in 10 days.
Using the example above to calculate the Extended Price Amount results in the following:
Extended Price Amount =
(1 × $1,000.00 × 5) + (322.58) = $5,322.58
Use this subtask whenever you add a sales order with a recurring line type to the system.
These non-editable fields default from the main sales order screen.
Enter the beginning date for the time period during which the recurring line item is in effect. Enter the date in MM/DD/YYYY format. The default for the starting date defaults from the Header Information subtask and can be changed. A starting date is required for all recurring line items.
Enter the ending date for the time period during which the recurring line item is in effect. Enter the date in MM/DD/YYYY format. The default for the ending date defaults from the Header Information subtask and can be changed. An ending date is required for all recurring line items.
Enter, or use Lookup to select, the applicable billing cycle code. A billing cycle code represents a pre-defined number of months and is established in the Billing Cycle table within Costpoint Billing. The default code defaults from the Header Information subtask and can be changed.
This non-editable field displays the last invoice date for the recurring line item. The system updates this field when creating invoices. The Last Invoice Date is the ending date of the invoice date range specified during the invoice creation process.