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Procedure documentationEditing Charges for Tiered, Interval or Combined Tiered and Interval Calculation

 

This procedure describes how you specify charges for tiered, interval, or mixed tiered and interval calculation.

These tiered or interval conditions enable you to automatically adjust charges according to the item number of an account. You can scale charges such as item charges according to a counter reading.

You can assign the tiers to item limits, thus specifying the number of items above which an amount is to be used.

You can use tiered or interval calculation as follows:

  • In the tiered calculation, the system uses the item counter and the item limit to determine a condition for each settlement period. The system applies the determined tier condition to the counter reading.

  • In the interval calculation, the system uses the item counter and the item limit to determine a condition for each settlement period. The system applies the corresponding tier conditions to the parts of the counter reading defined by the item limits. The interval calculation is executed inclusively until the determined tiered condition.

  • In the mixed tiered and interval calculation, the system uses the item counter and the item limits to determine a tier condition for each settlement period. The system applies the interval calculation to the part of the counter reading that contains the determined tier. The system applies the tiered calculation to the rest of the counter reading.

Example Example

Tier

Item limits

Amount

1

5 to 19

EUR 0.01

2

20 to 49

EUR 0.05

3

From 50

EUR 0.10

The system calculates as follows if the counter reading is EUR 54

Tiered calculation

  1. The system determines the tier that contains the counter reading.

  2. Counter reading x amount tier 3: 54 x 0.10 = EUR 5.40

Interval Calculation

  1. (Upper Limit Tier 1 - Lower Limit Tier 1) x Amount of Tier 1: (19 − 5) x 0.01 = EUR 0.14

  2. (Upper Limit Tier 2 - Lower Limit Tier 2) x Amount of Tier 2: (49 − 20) x 0.05 = EUR 1.45

  3. (Counter reading - Lower Limit Tier 3) x Amount of Tier 3: (54 − 50) x 0.10 = EUR 0.40

Mixed tiered and interval calculation

  1. The system determines the tier that contains the counter reading.

  2. (Counter reading - Lower Limit Tier 3) x Amount of Tier 3: (54 − 50) x 0.10 = EUR 0.40

  3. Upper Limit Tier 2 x Amount of Tier 2: 49 x 0.05 = EUR 2.45

End of the example.

The following figure shows an example of the simplified use of a tiered condition as compared to an interval condition:

Prerequisites

  1. You have made all necessary settings so that the fields for creating charges for tiers, interval, or combined tier/interval calculation are available.

    For more information about the required settings, see the decision table in the documentation for each amount category that is relevant for the charge.

  2. The system displays condition editing on the Calculation tab page.

Procedure

You can make the following settings:

  1. In the Tiers/Interval field, enter the value Tiered Calculation, Interval Calculation, or Combined.

    The system displays the screen area for tiered calculation, interval calculation, or combined tiered and interval calculation.

  2. You can enter values in the following fields in the screen area for tiered, interval, or combined tiered and interval calculation:

    • Number from (item limit)

      A tier or interval starts after the defined number of items.

    • Percentage rate

    • Amount

    • Divisor

    • Minimum Amount

    • Maximum Amount

    The fields for each tier or interval are the same as those used to specify a simple charge. For more information, see Editing Simple Charges.

Result

You have specified charges or tiered, interval, or combined tiered and interval calculation.