Understanding Rate Definitions

Rate definitions establish the basic information of a rate. Rate definitions include this information:

• Charge codes

• Rate calculations

• Lookup definitions

When you set up the rates, you first determine the charge codes for each rate. A rate can have billable charges, payable charges, or both. You determine whether the rate is billable to the customer, payable to a carrier as part of the freight costs, or a combination of both.

Each rate has a defined calculation method. Depending on the rate type that you select (fixed amount, unit amount, stored in route, prorated amount, or an external business function), you then enter information about the basis of the rate, the unit of measure of the rate, and the level (piece, shipment, or detail) at which you want the rate applied. You can also apply discounts to the rates.

If the rate calculates the charges using two variables, you then must enter information about the lookup definitions. Lookup information consists of the definitions of the variables that the system uses to calculate the rate using the table that you set up.

You can set up additional detail information for rates such as information about how to use variables to interact with other rates, applying conditions to a rate, or prorating a rate for a shipment with multiple stops to different address book numbers.