Defining Frequency Codes
When you create a rate schedule, you must enter a code defining the frequency in which the prices are expressed, e.g., monthly, quarterly, biannual, etc. To set up frequency codes, open
Description of Page
Enter a unique Frequency ID and Description for each frequency.
Before entering the remaining fields, you must analyze the "proration provisions" in your rates. For example, consider a rate used to calculate charges for a "month's worth of service". Assume this rate's charges will not be prorated when the customer's service period is anywhere between 27 and 33 days. This rate requires a frequency that indicates:
- 12 Periods / Year (because it's a monthly rate).
- Minimum Days Offset equal to 3.
- Maximum Days Offset equal to 3.
When the system creates a bill using a rate with this frequency, it compares the number of days of consumption on the bill to the minimum and maximum number of days inferred by the rate's frequency. In the example above, the minimum number of days would be 27 (365 days / 12 period per year - 3 offset for minimum days). The maximum number of days would be 33 (365 days / 12 periods per year + 3 offset for maximum days). Therefore, if a bill's consumption period is less than 27 days or more than 33 days, the bill's charges are prorated.
Overriding the system's standard proration logic. If the standard proration logic does not satisfy your requirements, you may plug in an override proration algorithm to calculate the proration factors as required by your implementation. For example, we have encountered companies who treat a year has have 360 days rather than 365 days. Such a company would need to develop an override proration algorithm and plug it on the Installation record.
Where Used
Every Rate Schedule must have a frequency. Refer to Defining Rate Schedules for more information.