Additional Info – Billing Overage: Tiered Rates

When selected, e-automate calculates the number of clicks for each tier, multiplies it by the rate, and arrives at a tier total. A tier total is calculated for each tier and then sums the tier totals to determine the meter group overage charge. This method uses the rate for each of the multiple tiers identified and used by the meter group. When displayed on the contract invoice, e-automate displays only the effective rate for all clicks charged. This may need some explanation to your customer.

When selected, e-automate determines the number of clicks used and the highest quantity tier in which the number of clicks used falls. Then e-automate uses the assigned rate of the highest tier for all clicks charged for the meter group.

When using tiered rates you can either identify Covered copies (allowance) or leave the Covered copies field at zero. If you decide to enter Covered copies, the number of covered copies must be equal to or less than the ending amount identified for your first tier. In our example, the Covered copies for the meter group could be 1,500 or less. To further explain how tiered rate billing works we will use 1,000 for our Covered copies and total clicks of 5,500 for the meter group cycle.

The number of clicks available for each tier is determined by subtracting the lower end tier from the upper end. In our example for tier one, 1500 – 1 = 1499. Tier one has 1499 clicks available. Clicks available for each tier identified are calculated by e-automate and stored for later use.

If there are covered copies associated with the meter group, e-automate subtracts the Covered copies from the number of clicks available for tier one to determine remaining clicks available and chargeable for the tier, if any. In our example, 1499 - 1000 = 499 remaining clicks available in tier one. Since the first 1000 clicks are covered at no charge, e-automate deems the remaining clicks available as chargeable and assesses a charge for the 499 remaining clicks for tier one at the rate of $0.0125 for a charge of $6.2375.

At this point, e-automate has accounted for 1499 clicks, 1000 (Covered copies) plus 499 (chargeable clicks remaining in tier one). With a total click amount of 5500 clicks, e-automate still has to account for and charge for 4001 clicks, 5500 minus 1499.

Then e-automate determines the number of clicks available in tier two and assesses a charge. There are 1499 clicks available in tier two so e-automate calculates a charge of $17.988 (1499 * .012).

e-automate has accounted for 2998 clicks, 1000 (Covered copies) + 499 charged in tier one + 1499 charged in tier two. That leaves 2502 clicks unaccounted for so e-automate moves to tier three.

e-automate then determines the number of clicks available in tier three and assesses a charge. There are 1499 clicks available in tier 3 so e-automate calculates a charge of $17.6882 (1499 * .0118).

e-automate has accounted for 4497 clicks, 1000 (Covered copies) + 499 charged in tier one + 1499 charged in tier two + 1499 in tier three. That leaves 1003 clicks unaccounted for so e-automate moves to tier four.

In this example there are 1003 clicks remaining and tier four has 1499 available, this accounts for the remaining uncalculated charges. e-automate calculates a charge of $11.5345 (1003 * .0115).