Show TOC

Procedure documentationCharges on Amount for Tiered, Interval or Mixed Tiered and Interval Calculation

 

This procedure describes how you specify charges on amount for tiered, interval, or combined tiered and interval calculation.

These tiered or interval conditions enable you to automatically adjust charges according to the transaction amount. You can scale charges according to the transaction amounts.

You can link the tiers to amount limits, that is to upper limits (up to and including this limit) or the lower limit (from and including this limit). If the transaction amount is under the lower limit of the first tier or over the upper limit of the last tier, the system does not calculate a charge.

You can use tiered or interval calculation as follows:

  • In the tiered calculation, the system uses the transaction amount and the amount limits to calculate a condition for each transaction. The system calculates the condition if a percentage has been specified for the transaction amount. If an amount has been entered, the system uses this amount.

  • In interval calculation, the system uses the transaction amount and the amount limits to calculate a condition for each transaction. The system applies the corresponding amounts or percentages to the parts of the transaction amount defined by the amount limits. The interval calculation is executed inclusively until the determined tiered condition.

  • In combined tiered and interval calculation, the system uses the transaction amount and the amount limits to determine a condition for each transaction. The system applies the interval calculation to the part of the transaction amount that contains the determined tier. The system applies the tiered calculation to the rest of the transaction amount.

Example Example

Tier

Amount Limits

Percentage Rate

1

EUR 0 to EUR 100

1 %

2

EUR 100 to EUR 1,000

2 %

3

Over EUR 1,000

3 %

The system calculates as follows if the transaction amount is EUR 1,200.00

Tiered calculation

  1. The system determines the tier into which the transaction amount falls.

  2. Transaction amount x percentage rate tier 3: 1,200 x 0.03 = EUR 36

Interval calculation

  1. (Upper limit tier 1 - lower limit tier 1) x percentage rate tier 1: (100 − 0) x 0.01 = EUR 1

  2. (Upper limit tier 2 - lower limit tier 2) x percentage rate tier 2: (1,000 − 100) x 0.02 = EUR 18

  3. (Transaction amount - lower limit tier 3) x percentage rate tier 3: (1,200 − 1,000) x 0.03 = EUR 6

Mixed tiered and interval calculation

  1. The system determines the tier into which the transaction amount falls.

  2. (Transaction amount - lower limit tier 3) x percentage rate tier 3: (1,200 − 1,000) x 0.03 = EUR 6

  3. Lower limit tier 2 x percentage rate tier 2: 1,000 x 0.02 = EUR 20

End of the example.

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 necessary settings, see Amount Category 115050 - Charge on Amount in the decision table.

  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 Upper/Lower Limit field and the screen area for tiered calculation, interval calculation, or combined tiered and interval calculation.

    • If you enter the value Upper Limit in the Upper/Lower Limit field, you can enter values as upper limits on the screen for tiered, interval, or combined tiered and interval calculation. The tier or interval is then valid up to and including this value.

    • If you enter the value Lower Limit in the Upper/Lower Limit field, you can enter lower limits in the screen area. The tier or interval is then valid from and including this value.

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

    • Percentage rate

    • Amount

    • 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 a Simple Charge on Amount.

Result

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

More Information

Amount Category

Editing the Calculation Tab Page