Show TOC

Example documentationWaiver Calculation

 

The following examples illustrate how the system calculates the waiver amount based on the following parameters:

  • Waiver Period

  • Waiver as of

  • Amount

  • Percentage

  • Minimum Amount and Maximum Amount

Example 1:

A waiver period lasts for one month in our example. Each month, two different charges of EUR 20 and EUR 10 are incurred. The Waiver From checkbox is selected. The amount is EUR 12, the percentage is 80%, and the minimum amount is EUR 25.

Each month, the bank charges EUR 12 regardless of the percentage. This amount is initially debited to the first charge. This means that the amounts of EUR 8 and EUR 10 are left for the waiver from the first and second charge respectively. The bank cannot achieve the minimum waiver amount of EUR 25.

Month

1

2

3

Charge 1

20

20

20

Charge 2

10

10

10

Waiver Charge 1

8

8

8

Waiver Charge 2

10

10

10

Billed

12

12

12

Example 2:

The data is the same as in example 1, except that the waiver period is 6 months.

During the waiver period, the system levies a charge of EUR 12 during the settlement of the first month. The system does not waive any of this amount. Although the system has not reached the minimum amount in the first month, it does so during the second month as a result of the calculated waiver amounts. Therefore, the system can calculate the 80% waiver amount in the following months, and bill the difference between the charge and the waiver.

Month

1

2

3

4

5

6

Charge 1

20

20

20

20

20

20

Charge 2

10

10

10

10

10

10

Waiver Charge 1

8

16

16

16

16

16

Waiver Charge 2

10

8

8

8

8

8

Billed charge 1

12

4

4

4

4

4

Billed charge 2

0

2

2

2

2

2

Example 3:

A waiver period lasts for one month in our example. Each month, two different charges of EUR 20 and EUR 10 are incurred. The Waiver From checkbox is selected. The amount is EUR 50, the percentage is 80%, and the minimum amount is EUR 25.

Each month, the bank bills EUR 50. The charge is less than this value. The waiver is always EUR 0. The bank bills the full charges.

Month

1

2

3

Charge 1

20

20

20

Charge 2

10

10

10

Waiver Charge 1

0

0

0

Waiver Charge 2

0

0

0

Billed

30

30

30

Example 4:

In our example, a waiver period lasts for six months. Each month, two different charges of EUR 20 and EUR 10 are incurred. The Waiver From checkbox is selected. The amount is EUR 50, the percentage is 80%, and the minimum amount is EUR 25.

During the first month, the bank bills the full charges since the amount is not reached. During the second month, the bank bills charge 1 in full for the same reason as the amount applies only then. After this, the system can determine the waiver of 80%. This would be EUR 2 for the second charge, which is less than the minimum waiver amount of EUR 25. Therefore, the system waives the full charge.

During the third month, the system determines the waiver as 80%. The waiver for the first charge is thus EUR 16, which exceeds the minimum waiver limit of EUR 25 if it is added to the EUR 10 waiver of the month before. Therefore, the system can determine the waiver as 80% for the second charge. The charges billed are the difference between the charge and the waiver.

During the seventh month, the system determines the values of the last six months (waiver period). During months 2-6, the system has billed only a total of EUR 44, which means that the amount was not reached. Therefore, the system must still bill EUR 6 during the seventh month. This is billed from charge 1. The system calculates the waiver as 80% of the remaining amount from charge 1 (EUR 20 - EUR 6 = EUR 14). This is EUR 11.20.

Month

1

2

3

4

5

6

7

Charge 1

20

20

20

20

20

20

20

Charge 2

10

10

10

10

10

10

10

Waiver Charge 1

0

0

16

16

16

16

11.2

Waiver Charge 2

0

10

8

8

8

8

8

Billed charge 1

20

20

4

4

4

4

8.8

Billed charge 2

10

0

2

2

2

2

2

Example 5:

In our example, a waiver period lasts for six months. Each month, two different charges of EUR 20 and EUR 10 are incurred. The percentage is 80 % and the minimum amount is EUR 25. The Waiver From checkbox is not selected.

During the first month, the waivers are determined at 80%. This means EUR 16 for charge 1 and EUR 8 for charge 2. This is less than the minimum amount of EUR 25. Therefore, the system waives another EUR 1 from the first charge so that it can reach the minimum.

Month

1

2

3

4

5

6

7

Charge 1

20

20

20

20

20

20

20

Charge 2

10

10

10

10

10

10

10

Waiver Charge 1

17

16

16

16

16

16

16

Waiver Charge 2

8

8

8

8

8

8

8

Billed charge 1

3

4

4

4

4

4

4

Billed charge 2

2

2

2

2

2

2

2

Example 6:

In our example, a waiver period lasts for six months. Each month, two different charges of EUR 20 and EUR 10 are incurred. The percentage is 80 % and the minimum amount is EUR 175. The Waiver From checkbox is not selected. The system waives the charges until the minimum amount has been reached. This is the case in period 6. A total waiver of EUR 150 is reached from the waiver period 1-5. During period 6, waivers of EUR 16 and EUR 8 would be added. The system reaches the minimum with an additional EUR 1. The system adds this EUR 1 to the waiver for charge 1. During period 7, the system analyzes periods 2-7 retroactively. The system must waive the full amount again.

Month

1

2

3

4

5

6

7

Charge 1

20

20

20

20

20

20

20

Charge 2

10

10

10

10

10

10

10

Waiver Charge 1

20

20

20

20

20

17

20

Waiver Charge 2

10

10

10

10

10

8

10

Billed charge 1

0

0

0

0

0

3

0

Billed charge 2

0

0

0

0

0

2

0

Example 7:

In our example, a waiver period lasts for three months. Each month, two different charges of EUR 20 and EUR 10 are incurred. The Waiver From checkbox is selected. The amount is EUR 32, the percentage is 80%, and the maximum amount is EUR 25.

During the first period, the system initially tries to bill EUR 32. This means that the system cannot waive anything since the charges amount to EUR 30 only. During the second period, the system tries to bill the remaining EUR 2, and calculates the waiver as only EUR 18 for charge 1 and EUR 10 for charge 2. At 80%, this means EUR 14.40 and EUR 8. The system bills the remainder. In total, the system has waived EUR 22.40 throughout periods 1 and 2. The system waives the remaining EUR 2.60 for the maximum amount of EUR 25 in period 3.

During period 4, the system totals the values from periods 2,3, and 4 and does not waive anything since the maximum amount has not been reached.

During period 5, the system totals the values from periods 3,4, and 5. There is EUR 22.40 left that the system must waive to attain the maximum amount. This is possible by a waiver of EUR 16 for charge 1 and EUR 6.40 for charge 2.

Month

1

2

3

4

5

Charge 1

20

20

20

20

20

Charge 2

10

10

10

10

10

Waiver Charge 1

0

14.4

2.6

0

16

Waiver Charge 2

0

8

0

0

6.4

Billed charge 1

20

5.6

17.4

20

4

Billed charge 2

10

2

10

10

3.6