Example: Calculating contract payments

Assume that you have a contract covering three assets. An expense line is created for each asset in the Assets section of the Contract form. You make a payment of $127.50 (USD) for all three assets. Contract Management allocates approximately one-third of the payment to each asset’s expense line.

Asset Payment
First asset   42.59
Second asset   42.46
Third asset   42.46
Total 127.51

When Contract Management adds the allocated amounts, the total is 127.51, which is one cent over the total payment amount. Contract Management adjusts the first allocation amount to ensure the total allocated amount equals the actual payment amount. The final expense line amounts are as follows:

Asset Payment
First asset   42.58
Second asset   42.46
Third asset   42.46
Total 127.50

Related topics

Calculating contract payments