Starting the billing process

Akuiteo gives you the possibility to manage multiple indexes (e.g.: Syntec index). The user can set up a reference value for that index, for each month of the calendar year.

Price review can be done for a contract or for multiple contracts at once, at a specific date set for price review.

Example:

At a specific date D, you have the following elements:

• a known amount AM;
• a known index IN.

When calculating the new amount, these previous values change into N-1 and you therefore have:

• an amount AM-1, which corresponds to the previous amount AM;
• an index IN-1, which corresponds to the previous index IN;
• a new index IN (known);
• a new amount MN (unknown).

Since both indexes are known, you can therefore calculate the relationship R that defines the progress: R = IN / IN-1

On a service, you can set a coefficient (between 0 and 1), that we name C.

This coefficient is the portion on which the price review will apply. In other words, an index of 1 means the whole price will be reviewed. An index of 0.8 means that only 80% of the price will be reviewed, the remaining 20% will not be changed. This also means an index of 0 implies that the indicated price will remain fixed, whatever the index movement.

 

The formula to calculate the new amount is the following:

AM = AM-1 x [ C x (R-1) + 1 ]

 

For example:

Amount N-1 = 3840

Index N-1 = 245.10

Index N = 272

• R = 272/245.10 = 1.10975

Coefficient = 0.8

The new amount = 3840 x ( 0.8 x ( 1.10975 – 1) + 1 ) = 4177.15

If we reason differently:

The index only applies to 80% of the amount, so AM = 3840 * 80% * 1.10975 + 3840 * 20% = 4177.15

Akuiteo automatically calculates the periods corresponding to the amount on the issued invoice, applying a prorata if needed.

The period is calculated based on:

• the next due date;
• the billing periodicity.

The start date of the period can be adapted based on:

• the effective date (in arrears mode);
• the validity start date of a contract line.

The end date of the period can be adapted based on:

• the validity end date of the contract;
• the effective termination date of the contract;
• the "Anniversary" code, entered in "MMDD" format (2 figures for the month + 2 figures for the day), that will determine the next due date (corresponds to the invoice end date + 1 day);
• the validity end date of a contract line.

Depending on the period calculated on each line of the contract, Akuiteo calculates the price applying the prorata indicated on the Services tab of the contract.

• Month started = due
• Exact number of days
• Based on 360 days: considers all the months as made up of 30 days
• Full month if ends after the 15th