Calculating partial payments

When a payment must be made for a partial period, for example if the start or end date of the lease does not coincide with the start or end of a payment period, you can create a partial payment schedule.

About this task

You can calculate the amount of a partial payment for any of the following payment frequencies:
  • Monthly
  • Quarterly
  • Specific Quarterly (Location Specific), which has the options of Modern Quarter, Traditional English Quarter, or Traditional Scottish Quarter
  • Semi-Annually
  • Annually

To determine how the partial payments will be calculated, you can select the pro rata basis and whether the calculation method to be used is Daily or Monthly-Daily. The Daily option uses the total number of days that are included in the payment period for which you must pay and calculates by using a daily rate. The Monthly-Daily method calculates any complete months using a monthly rate and then adds additional days using a daily rate. The daily rate is based on the annual amount divided by the selected pro rata basis. If you have selected a pro rata basis of Actual Quarter day, the daily rate is calculated based on the amount for the quarter divided by the number of days in quarter.

You can also select if the payment is due on the first day of the period, the last day of the period, or on a specific day of the period, such as the 5th day of the period.

Procedure

  1. Open or create a lease. If it is an active real estate lease, revise the lease to make it editable.
  2. On the Payments tab, click Generate Payment Schedules in the Payment Schedules section.
  3. When the information is completely entered, click Generate Schedule(s).
  4. Adjust the dates to specify the partial payment schedule.
  5. Click Create Schedule(s).

An example of creating a Partial Payment Schedule

This is an example for creating monthly payment schedules that start on 1/10/2019 and end on 1/9/2022 for $1,000 per month, where each anniversary has the increase of $100, and pays on the first day of the month.

  1. On the Payments tab, click Generate Payment Schedules in the Payment Schedules section and leave Payment Type as Rent.
  2. On the Payments tab, click Generate Payment Schedules in the Payment Schedules section.
  3. In the field Is the first payment prorated?, answer Yes. Then, the From Date field is visible. Set it to 1/15/2019.
  4. Set Frequency = Monthly, Full Payment Start Date = 2/1/2019.
  5. Set Pro Rata Basis = Actual Month Day (default) and Charge Amount Basis = per Month (default).
  6. Enter the Amount Per Basis = $1,000, Payment Due On = First Day of Period, Number of Schedules = 3, Adjust Every [x] Months = 12.
  7. Set Growth Type = Fixed, the Fixed Growth field is visible, enter $100.
  8. Click Generate Schedule(s) on the Payment Schedule section.
  9. Adjust the From Date to start on the 10th and To Date to end on the 9th of each year.
  10. Set other fields if required.
  11. Click Create Schedule(s) and close the form.
  12. Open each payment schedule. The prorated amounts are calculated and are seen in the Partial First Payment and Partial Last Payment sections.