Tiered
Rates - Retroactive Rates Calculation Example Tiered
Rates - Retroactive Rates Calculation ExampleThe following example illustrates how each of the settings for the Retroactive Rates Calculation field work. The table shows how tiered rates are set up for this example. Below the table, the first section describes how the calculation works when the field is set to N. The second section describes the calculation when the field is set to Y.
|
Tier |
From Rental Day |
To Rental Day |
Daily rate |
|
1 |
1 |
4 |
5.00 |
|
2 |
5 |
10 |
4.00 |
|
3 |
11 |
20 |
3.00 |
|
4 |
21 |
9999 |
2.00 |
Cycle billing occurs every 20 days
Amount to bill is calculated as follows:
1st 20-day Cycle Bill
rental days 1 through 4 = 4 rental day x 5.00 = 20.00
rental days 5 through 10 = 6 rental days x 4.00 = 24.00
rental days 11 through 20 = 10 rental days x 3.00 = 30.00
Total Cycle Bill 74.00
2nd 20-day Cycle Bill
rental days 21 through 40 = 20 rental days x 2.00 = 40.00
Total Cycle Bill 40.00
Total for both Cycle Bills 114.00
Subsequent invoice
(cycle bills, returns, and so on) calculations are not
retroactive. They do not look
back at any previous invoice totals to determine the amount for
the current billing.
Cycle billing occurs every 20 days
Amount to bill is calculated as follows:
1st 20-day Cycle Bill
rental days 1 through 20 = 20 rental days x 3.00 = 60.00
2nd 20-day Cycle Bill
total of 40 rental days so far x 2.00 = 80.00
80.00 - 60.00 (already billed) = 20.00
3rd 20-day Cycle Bill
total of 60 rental days so far x 2.00 = 120.00
120.00 - 80.00 (already billed) = 40.00
The second and
subsequent cycle bill calculations areretroactive. They do look back at previous cycle bill
totals to determine the amount for the current cycle bill.
Back to top