Rent & Outgoings/Service Charge Invoices at the Beginning of a Term

  • Updated

Depending on your region, the terms "Outgoings" and "Service Charges" may be used interchangeably. In Asia-Pacific regions, "Outgoings" is the prevalent term, whereas in Europe, "Service Charges" is more commonly used. For a complete reference to regional terms used in this article, please visit our Glossary of Regional Terminology.

This article aims to clarify how Re-Leased automatically generates rent and outgoings/service charge invoices at the commencement of a tenancy term. In particular, we'll examine the scenarios that produce a partial invoice at the start of a term and detail the formula used to calculate this amount. Navigating through this process enhances your understanding of invoice timing and enables more accurate financial planning.

When is a Partial Invoice Generated?

A partial invoice for rent or outgoings/service charges may be created at the beginning of a tenancy term under the following conditions:

  • The term's start date falls out of synchronization with the invoicing frequency established in the rent or outgoings template.
  • The billing cycle's first full day or the first invoice date occurs before the start date of the term.

Calculating the Partial Invoice Amount

The amount of a partial invoice is determined using the following formula:

  • Annual Amount / 365 days x Days Covered by the Partial Invoice

Example Calculation:

  1. Term Start Date: 1 August
  2. Invoice Frequency: Monthly, on the 20th day
  3. First Invoice Date: 20 July

In this scenario:

  • An invoice is produced covering the partial period of 1 August to 19 August.
  • The subsequent invoice will cover the full period of 20 August to 19 September.

This formula allows for a precise calculation of the invoice amount for the shorter inaugural period of a new tenancy.

Was this article helpful?