Billing rates overview
You use TMWSuite's Rate Schedules application to establish the billing rates your company has negotiated with its customers. After setting up rates, you can use the Compute function in the Order Entry, Dispatch and/or Invoicing applications to calculate charges for orders.
The Rate Schedules application allows a great deal of flexibility in setting up billing rates. If your company bills customers differently depending on the customer, on the type of load, on location, on commodity, or on equipment used, you can establish restrictions for individual rates based on those characteristics. When you use the Compute function to determine which rate is the best match for a particular order, the system will compare rate restrictions with data recorded for the order. If mismatch(es) occur between a rate’s restrictions and the order, the system will reject the rate for use in calculating charges. The rating engine within Rate Schedules is designed to apply a rate that is the best possible match for an order and the company being billed.
When you set up a billing rate in Rate Schedules, you must record this information:
the rate basis
The rate basis identifies the unit of measure on which charges are based. For example, if you charge by the mile, the rate is mileage-based. In addition to the unit of measure, the rate basis determines whether the rate is to be used for line haul charges or for accessorial (i.e., add-on) charges. The charge type you select for the rate determines the rate basis.
the conditions under which the rate is to be used
You can set up restrictions that dictate when the rate is to be applied. For example, a certain rate may be applicable only for a particular customer and for a particular commodity. Therefore, you would set up Bill To and freight as restrictions for that rate.
the actual dollar figure(s) to be applied
A simple rate might consist only of a single dollar amount. For example, if you always charge all customers $.40 per mile, the rate would be recorded as $.40. However, suppose your per mile charges vary according to number of miles driven. In this case, you would need to set up a table of rates. The table would list each mileage range and the corresponding per mile billing rate.
To establish billing rates in Rate Schedules, you must perform these steps:
1. Set up charge types. (Charge types are items for which customers may be billed.)
2. Set up line haul rates.
3. Set up accessorial rates.
4. Link accessorial rates to line haul rates (if appropriate).