Our company’s working year is same for all.
Our Working Starts on : 1st January
Working Year Ends on : 31st December
Let us consider following scenarios.
Suppose a client takes service from us on 1st June. A year consist of 365 days. So accordingly his renewal will be done on 31st May the next coming year. This completes his 1 working year properly.
Our next year is called ROUND OFF YEAR – Means this time when you pay renewal fees it will be not for the complete year. It will be for the days remaining till 31st December.
For example :
In above example 1st working year ended on 31st May. So now the days are calculated as – days remaining till 31st december.
Number of Remaining days = (31st December YYYY ) – (31st May YYYY)
= 31st December 2018 – 31st May 2018
= 215 Days
Renewal fees per day is Rs. 10. So final amount is calculated as
Final Amount = (Number of days till 31st December 2018) x 10
= 215 x 10
= 2150/- Rupees