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Aliquot Payment At The Beginning Of The Contract

Aliquot Payment At The Beginning Of The Contract

Owned by Lango: Language and translation manager
Last updated: Sept 05, 2024Version comment
4 min read

For contracts with services, we recommend a special setup in which the system calculates an aliquot payment in the first month (unless it is a special case – description below). The payment will then be full in the last month (for the whole month) – this setting is based on the practice that the leasing company usually invoices the rent for the entire month in the last month of the contractual term of the contract, because customers usually do not return the financed object exactly on the Contractual End Date.

The settings must be made on the Financing Model and are as follows:

  • Always Calendary Month = Yes

  • Calc.Start Date=Handover Date = No

  • Calc.for Calculation Starting Date=CM+1D (first day of the following month via date formula)

  • Aliquote Payment at Beginning only=Y (flag that specifies that the aliquot payment will be made only in the first less than one month, or that in the last month it should calculate an aliquot in the auxiliary fields of the payment calendar).

With this setting on the Contract model, the system calculates the contract payment calendar as follows:

  • 1 instalment (aliquot at the beginning) is calculated from the date of handover until the end of the month, unless it is a special case of handover on the 1st day of the month (described below)

  • The regular payment is from the 1st to the last of the month

  • The last payment is from the 01st to the last day of the last month

The financial calculator calculates the number of payments according to the Financing Period (in months) always from the 1st day of the month following the handover.

The system then calculates aliquot values from the first installment of the financial calculator - they are as if "extra" or beyond the scope of the calculation.

Standard Case:

The handover date is on a different day during the month as the 1st day of the month:

Example 1:

Handover date is 17.01.2021. The duration of the contract is 36 months

The first instalment is from 17.01.2021 to 31.01.2021 - aliquot payment

The last instalment is from 01.01.2024 by 31.01.2021 - 36 identical instalments

Example 2:

The contract starts on 30.12.2020 and ends on 28.2.2025 (according to the methodology 29.2., but in 2025 February has only 28 days).

Aliquot at the beginning: 30.12. – 31.12.2020

Last regular payment: 1.2.2025 – 28.2.2025

Special Case:

The handover date is the 1st day of the month – the contract contains the number of installments – whole months depending on the length of the contract, Aliquot is not added

Example:

The contract starts on 01/04/2021 and ends on 31/03/2024

Aliquot at the beginning: none, first payment is 1.4.21 - 30.4.21

Example for aliquot payment:

  • Payment No.

    • The first aliquot line is marked 000A

  • Annuity Excl. VAT

    • Annuity Excl. VAT in Aliquot Payment=(Annuity Excl. VAT/Actual Calendar Days of the Month)*(Last Day of the Month-Handover Date+1)

  • Principal Excl. VAT

    • Principal in Aliquot Payment=Annuity Excl. VAT Aliquot*Principal/Annuity Excl. VAT

  • Interest Excl. VAT

    • Interest in Aliquot Payment=Aliquot Annuity – Aliquot Principal

  • Service

    • Service in aliquot payment=Service/ actual number of calendar days of the given month)*(Last day of the month-Handover Date+1)

  • Insurance

    • It is not necessary to calculate the insurance in this way, the insurance contract can calculate the premium for the number of calendar days according to the settings (Pro-rata period).

An aliquot payment at the beginning will be created when setting calculation lines to a payment calendar line according to the Financing Model setup, as follows:

  • if Always Calendar Month=Y and Calculation Starting Date is Handover Date=Y:

    • Aliquot payment at the beginning and end

  • if Always Calendar Month=Y and Calculation Starting Date is Handover Date=N and Aliquote Payment at Beginning only=Y (and when Calc.for Calculation Starting Date=CM+1D is set):

    • The Expected Handover Date (or Handover Date after activation) is different from the first day of the month:

      • The start of the calculation is shifted to the first day of the following month

      • The aliquot payment will be only at the beginning of the contract and will be created when the contract payment calendar is deployed, this aliquot payment will have the number 000A

      • then the number of payments according to the Financing Period (in Months) is created, each payment will be for the whole month (payment numbers from 001)

      • in this case, the number of payments is created in the contract payment calendar by one more than the Financing Period (in Months), i.e. aliquot + regular payments

    • The Expected Handover Date (or Handover Date after activation) is on the first day of the month (special case):

      • The beginning of the calculation is does not shift on the first day of the following month, i.e. Expected Handover Date (or Handover Date after activation)=Calculation Starting Date

      • The payment calendar will be created without aliquot payments (payment numbers from 001).

      • the number of payments will be equal to the Financing Period (in Months).