Using an Index Factor with a formula rate
Adding an IndexFactor variable to a formula allows you to set up different factors on each index on the same rate.
For our example, we set up one primary rate to be used for two Bill To companies. We added an IndexFactor variable so that one Bill To company will be charged a rate that is 10% higher than the other Bill To company. We did this by inserting a multiplication operator and the IndexFactor variable in the formula that we created for rate #163 in the previous section.
Rate #163 has two indexes:
Index 1 is set up for the Bill To GENDAY.
On the Index Settings tab for GENDAY, the Index Factor is set to 1.00000.
Note: Because the IndexFactor variable is multiplied in the formula, setting the Index Factor to 1.00000 does not increase the calculated value.
This illustration shows the results of applying rate #163 to invoice #969A for the Bill To GENDAY.
Weight | * | Billable Miles | * | Rate Factor | * | Index Factor | = | Calculated Rate |
35 tons | * | 52 miles | * | $ 0.0312 | * | 1.000000 | = | $56.78/ton |
Index 2 is set up for the Bill To WENDAY.
On the Index Settings tab for the Bill To WENDAY, the Index Factor is set to 1.100000.
Note: Because the IndexFactor variable is multiplied in this formula, setting the Index Factor to 1.10000 increases the calculated value by 10%.
This illustration shows the results of applying rate #163 to invoice #969A for the Bill To WENDAY.
Weight | * | Billable Miles | * | Rate Factor | * | Index Factor | = | Calculated Rate |
35 tons | * | 52 miles | * | $ 0.0312 | * | 1.100000 | = | $62.46/ton |
Note: For this example, we set up the index factor to increase the rate by a percentage. However, be aware that the IndexFactor variable is just another factor. It can be set up many different ways.