Index Based Accessorial

This procedure shows you how to base an accessorial cost on an index (rate factor value). For example, you may have a fuel surcharge that varies by a fuel price index published by the Department of Energy in USA. The more rates you have that all vary by one rate factor value, the more time you save by using this setup.

Scenario

In this scenario, you want accessorial costs in two different rate offerings to vary according to one rate factor value. As the rate factor value changes, you can generate new accessorial costs that charge a different amount depending on the rate factor value.

For shipments weighing more than 100 pounds, this table shows how the total cost of the shipment should vary by different rate factor values. For shipments weighing less than 100 pounds, the rate factor value does not matter to the cost.

Rate Factor Value	Add this
1	0%
1.5	3%
2	7%

For rate factor values larger than 2, increase the percentage by 1% for every 0.5 rate factor value increase.

The percentage additions are valid when the rate factor value is valid.

Prerequisites

This must have been defined:

• two rate offerings that you want to vary by one and the same rate factor value.

Setup

Template For Accessorial Cost

All fields in the accessorial cost you use as a template are copied into the new, generated accessorial costs. These fields are replaced with new, calculated values:

• Accessorial Cost ID
• Effective Date
• Expiration Date
• Apply Discount of

1. Open any one of your rate offerings for editing by navigating to Contract and Rate Management > Contract Management > Rate Offering.
2. Go to the Accessorials tab.
3. Create a new Accessorial Cost.
4. Enter an Accessorial Cost ID. It may be helpful to use an ID that helps you remember what kind of rate factor value and cost this refers to and that it is only a template.
5. Select SHIPMENT.WEIGHT as your Basis in the Conditional section.
6. Select ">" as your Operator.
7. Enter 100 as your Value.
8. Select LB as your unit of measure.
9. Select AND.
10. Select SHIPMENT.COSTS.TYPE as your Basis in the Conditional section.
11. Select "=" as your Operator.
12. Enter B as your Value to only apply the surcharge to the base cost part of the shipment cost.
13. Mark Charge Amount.
14. Select SHIPMENT.COSTS.AMOUNT as your charge multiplier in the Basis field.
15. Enter 0 as your Percentage. This means that your accessorial cost stays the same as the previous time you processed the rate factor. Another option may be to enter -100%, meaning that there is no added cost at all in case the rate factor does not equate to any surcharge.
16. Enter an Effective and Expiration Date for when the template is valid.
17. Click Finished to save your accessorial cost template.
18. Continue to the next step without saving your changes to the rate offering. This is because you do not want to associate the accessorial cost template with any rate offering; it is only a template for generating other accessorial costs.

Rate Factor

1. Create a new Rate Factor in Contract and Rate Management > Power Data > General.
2. For now only enter a Source Rate Factor ID and a Description. It may be helpful if you enter a Source Rate Factor ID that starts with the same name as the accessorial cost template.
3. Click Finished.

Note: If a Rate Factor is updated AFTER being processed, this does not update the calculated/created data that was performed when processing the rate factor. Therefore manual data cleanup is necessary. See the section Updating a Rate Factor after Processed in Rate Factor Actions.

Rate Factor Rule

1. Create a new Rate Factor Rule in Contract and Rate Management > Power Data > General.
2. Enter a Rate Factor Rule ID. Use the accessorial cost template id plus the word "rule" if you like.
3. Select the Source Rate Factor ID you just created.
4. Create a new Accessorial Code ID.
5. Select the Accessorial Cost ID of the accessorial cost template you created previously.
6. Enter any Sequence Number you want.
7. Select rate offering as your Rate Record Type.
8. Select the Rate Offering ID of your first rate offering.
9. Click Save.
10. Enter any Sequence Number but the one you already used.
11. Select rate offering as your Rate Record Type.
12. Select the Rate Offering ID of your second rate offering.
13. Click Save.
14. Click New Rate Factor.

Rate Factor Rule Detail

1. Select an Effective Date and an Expiration Date for the rate factor rule. The rule can probably stay in effect as long as the rate offering.
2. Select Factor Effective as your Source Effective Date since the generated accessorial cost should go into effect as soon as the rate factor value becomes effective.
3. Select Factor Expiration as your Source Expiration Date since the generated accessorial cost should expire as soon as the rate factor value expires.
4. Select Lookup as your Cost Type.
5. Enter 1 as your Maximum Factor Value.
6. Enter 0 as your Cost Value.
7. Click Save.
8. Enter 1.5 as your Maximum Factor Value.
9. Enter 3 as your Cost Value.
10. Click Save.
11. Enter 2 as your Maximum Factor Value.
12. Enter 7 as your Cost Value.
13. Click Save.
14. Enter 0.5 as your Factor Increase.
15. Enter 1 as your Cost Increase.
16. Click Save to save your rate factor rule detail.
17. Click Finished to save your rate factor rule.

Update Accessorial Costs

Change and Process Rate Factor Value

1. Find your previously created Rate Factor in Contract and Rate Management > Power Data > General.
2. Edit your rate factor.
3. Click New Rate Factor.
4. Select an Effective and Expiration Date for the rate factor value.
5. Enter the Rate Factor Value that is valid for the time period you just specified. For example, you can enter 5, and expect the surcharge to be 13% (7% + ((5-2)/0.5)*1 = 7% + 6% = 13%).
6. Click Save.
7. Click Finished.
8. Mark the check box next to the rate factor you just saved.
9. Click Actions.
10. Click Process Rate Factor.

Results

1. Two new accessorial costs have been generated. You can verify that in Contract and Rate Management > Power Data > Rates and Codes > Accessorial Code.
2. The accessorial costs hold a charge discount value according to the rate factor rule you have set up. If you entered a rate factor value of 5, you should find 13 in the Percentage field as explained above.
3. Each generated accessorial cost is associated with its own rate offering. You can verify that in Contract and Rate Management > Contract Management > Rate Offering and find the rate offerings you entered in the rate factor rule.
4. Shipments using either of the two rate offerings should now have 13% added to their base costs (if you entered 5 as your rate factor value). You can verify this in the rate wizard. Remember to specify a ship unit weight of more than 100 pounds if you try this.