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Calculate Unit Price

Use this dialog to calculate the unit price of an item for different billing installments based on the total billing schedule contract price and frequency.

This feature is useful in the following type of scenario. A company negotiates an annual contract with a customer for 12,000.00. The customer is not able to pay the fully amount at the time the contract is negotiated, so the company allows the customer to pay the contract amount in installments (for example, semiannually, quarterly, or monthly).

Currently, this feature is available for standard type line items that use the flat pricing method.

Note icon. Note: This feature cannot be used with price adjustments or discounts as set up on the SBS ARCB Billing Price Adjustment page. To apply a price adjustment, edit the unit price for a line on the SBS ARCB Billing Schedule Card or apply the change in the Contract Price.

Example

The following example shows the calculated unit price for a billing schedule, where one of the price frequencies (daily, monthly, quarterly, semiannually, and annually) is used. A billing schedule has a frequency of Monthly, the billing start date is January 01, 2020 , and the billing end date is December 31, 2020.

  • Contract price: 1200.00
  • Price frequency: Annually

The billing installment list is calculated as follows:

Billing frequency Unit price
Daily 3.29
Monthly 100.00
Quarterly 300.00
Semiannually 600.00
Annually 1200.00
Term 0.00

Review the example for the case where the billing start and end date range results in a partial frequency (e.g., not a full month or quarter). The billing schedule frequency is Monthly, the billing start date is January 15, 2020, and the end date is December 31, 2020.

  • Contract price: 1200.00
  • Price frequency: Annually

The calculations are as follows: 

  • Unit price is based on whether Prorate Partial Periods is turned on for the billing schedule on the SBS ARCB Billing Schedule Card.
  • Net amount differs based on how many days are missing from a full month.

Renewal and Proration

For billing schedules that use the renewal feature, the last billed amount is from the renewal line.

When the Align to Month and Prorate Partial Period options are turned on the SBS ARCB Billing Schedule Card, The first and last periods are prorated based on the start and end dates of the billing period.

Calculate Unit Price for Billing Schedules

To calculate the unit price for billing installments for a billing schedule, follow these steps: 

  1. On the SBS ARCB Billing Schedule Card page, create a billing schedule.
  2. For the line item that you add, specify the values. Specifically, ensure the following: 
    1. Item Type is Standard.
    2. Pricing method is Flat.
    3. Unit Price Excl. Tax is 0.00.
  3. Select Calculate Unit Price > Calculate Unit Price, and on the dialog specify the Contract Price and select the Price Frequency.

    4. The Unit Price Based on Price Frequency section is updated with the different amounts for the different installment payment frequencies available.

  4. Select OK.

    5. Back on the SBS ARCB Billing Schedule Card page, the Unit Price Excl. Tax is updated with the unit price based on the frequency.

When the Contract Price and the Price Frequency values are changed for existing billing schedules, the changes are applied to all future billing periods. Periods for which invoices have already been created are not affected. The Unit Price Excl. Tax will be updated based on any changes.

Calculate Unit Price for Sales Documents

To calculate the unit price for billing installments for a sales order or invoice, follow these steps: 

  1. Open the corresponding sales document page (Sales Order or Sales Invoice) and create the sales document you want.
  2. For the line item that you add, select SBS Options > Item Defaults and review the values for the item:  Specifically, ensure the following and close the page: 
    1. Billing Type is Standard.
    2. Pricing method is Flat.
  3. For the line, ensure the Unit Price Excl. Tax is 0.00, and select Calculate Unit Price > Calculate Unit Price.
  4. On the dialog specify the Contract Price and select the Price Frequency.
    The Term frequency is not available for sales documents.

    5. The Unit Price Based on Price Frequency section is updated with the different amounts for the different installment payment frequencies available.

  5. Select OK.

    6. Back on the sales document page the Unit Price Excl. Tax is updated with the unit price based on the frequency.

The resulting line on the newly created billing schedule or added to an existing billing schedule is updated with will the appropriate information. the Calculate Unit Price action can then be used on the billing schedule line as needed to update the Contract Price and the Price Frequency values as needed.

When the Contract Price and the Price Frequency values are changed for existing billing schedules, the changes are applied to all future billing periods. Periods for which invoices have already been created are not affected. The Unit Price Excl. Tax will be updated based on any changes.

Fields

This page contains the following fields: 

Field Description
Options
Contract price Specify the total price of the contract. The price must be greater than zero (0.00).
Price frequency

Select the contract frequency: Daily, Monthly, Quarterly, Semiannual, Annually or Term.

The Term frequency is available only when this page is opened from the SBS ARCB Billing Schedule Card.

Unit Price Based on Price Frequency
Unit Price by Frequency list Displays the calculated unit prices for the item based on the different price frequencies.