Creating a billing rate for out-of-route mileage
Creating a billing rate for out-of-route mileage
Your company may want to set up a secondary rate to bill an additional per-mile amount for out-of-route mileage, for example, miles traveled for the interim stops recorded for an order).
For example, suppose you have an order like that shown below.
The total mileage for all three stops on the order is 2,396 miles.
The distance between the origin and destination is 2,023 miles. (The O/D mileage amount does not include any interim stops between the initial stop and the final stop.)
There are 373 out-of-route miles for the order (2,396 total miles minus 2,023 O/D miles).
We set up an out-of-route mileage rate to calculate the charge for the additional miles. The rate uses the Circuitous Miles system code charge type. This charge type is unique, because although Charge Units is Miles and Rate Unit is $/Mile, the Unit Basis is defined as Off Route.
In the rate index for the rate, we made an entry in the Off Route Minimum field. This indicates that the secondary rate will be applied only if the out-of-route miles on the order are equal to, or greater than, ten percent of the O/D miles. (We entered the percentage as a decimal, that is, .10.)
We linked the out-of-route mileage secondary rate to the appropriate primary rate.
The order's 179 out-of-route miles are greater than the 10 percent minimum specified in the rate index (660 x 10% = 66 miles). Therefore, the system applies the additional charge for the out-of-route miles when the order is invoiced.
The system added an invoice detail line showing an out-of-route charge of $74.60 (373 miles at $0.20 per mile).