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Recurring Revenue Proration Day Basis Tool

Calculate recurring revenue proration day basis from explicit caller-supplied inputs.

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Description

Prorate an amount using calendar or supplied basis days.

Business accounting and analytics distinguish gross, net, allocated, recognized and forecast amounts. Currency, period, eligibility and interaction-allocation conventions determine a reported contribution; reconciling one term does not verify revenue, payment rights or future commercial outcomes.

Prorate an amount using calendar or supplied basis days.

When to use this tool

Use Recurring Revenue Proration Day Basis when reconciling the stated business amount, share, bridge or forecast convention.

How to use the tool and how it works

  1. Enter fullAmount, activeDays, calendarDays, suppliedBasisDays, useCalendar. Use the units and conventions below.
  2. Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
  3. Read basis, prorated. Use the output convention below.

Prorate an amount using calendar or supplied basis days. Require fullAmount >= 0, whole activeDays >= 0 and positive whole calendarDays/suppliedBasisDays; select basis by useCalendar and return amount*activeDays/basis.1

Input fieldMeaning and unitsAccepted input
fullAmountFull AmountRequired. Finite number; minimum 0.
activeDaysNonnegative supplied active-day count; not restricted to the chosen period basis.Required. Safe integer; minimum 0.
calendarDaysCalendar DaysRequired. Safe integer; minimum 1.
suppliedBasisDaysSupplied Basis DaysRequired. Safe integer; minimum 1.
useCalendarUse CalendarRequired. Boolean.
Output fieldInterpretationReturned shape
basisBasisRequired. Safe integer.
proratedProratedRequired. Finite number.
json
{
  "input": {
    "fullAmount": 300,
    "activeDays": 15,
    "calendarDays": 31,
    "suppliedBasisDays": 30,
    "useCalendar": true
  },
  "output": {
    "basis": 31,
    "prorated": 145.16129032258064
  }
}

Limitations and assumptions

  • Active days are not capped by the basis, so output can exceed full amount; actual calendar, billing or recognition policy is not selected.
  • Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
  • Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.

Alternative or Complementary methods

Use complete verified accounts and governing commercial terms, and apply the appropriate accounting and financial judgment for actual reporting, payment or investment decisions.

References

  1. Calculation and input contract: business-analytics/recurring-revenue-proration-day-basis — tool.io

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