Incentives and Fee Rule

This rule is used to calculate incentive- and fee-based program event settlement transactions that represent credits or changes that will be applied to a customer's bill based on incentives and/or fees configured for a program to which the customer subscribes.

Variables

The Variables section is used to define one or more variables that will be used in formulas defined in the Calculation Details section. The variable's Variable Type determines how the variable is populated:

• Algorithm: The value is returned by a specified algorithm.

• Transaction Value: The value is based on a variable defined in a previous rule and stored in the program transaction's Calculation Results.

Variables must be defined in the Incentive and Fees Variables (X1-IncentiveFeeVariablesLookup) extendable lookup. In addition to the pre-defined variables provided, implementations can created their own variables using this extendable lookup.

Note: The base package does not include algorithms for deriving prices for use in incentives and fees calculations. Implementations must configure their own algorithms if they wish to derive prices and/or values from other data.

Calculation Details

The Calculation Details section is used to define the formulas used in the rule's calculations. Simple formulas support basic math operations using variables defined in the Variables section. Complex formulas allow for more complex operations, comparisons, and conditions upon which certain variables are set to certain values. Refer to the embedded help in this section for details about configuring formulas.

Results

The Results section is used to define result parameters of the incentives and fees calculation rule, including:

• Variable Name: The variable that holds the result of the calculation.

• FCPO: Checkbox that indicates if the result will be used for calculation purpose only. This is most often used with results that are prices or quantities and that will be Transaction Values passed to other rules. This checkbox should be unchecked for rules that calculates the final incentive or fee amount.

• Line Description:A description of the calculated value. It is relevant only to the rule that calculates the incentive or fee amount.

• Result Container: indicates if the result is a quantity, price or an amount.

Notes and Recommendations

For help with the meaning of specific configuration fields, refer to the embedded help on the screen when adding or editing the rule.

Business Object

X1-IncentiveCalculationRule

Example Scenario

Below is an example scenario that can be achieved based on configurations of this rule.

In this example, the first rule calculates a Service Charge variable that is used in calculating a Penalty Charge in the second rule.

Rule 1: Calculate Service Charge

• Sequence: 10

• Description: Calculate Service Charge

• Variables:

  Variable Name	Variable Type	Algorithm
  Early Termination Fee (ET)	Derive Price Algorithm	Derive Termination Fee (custom)
  Penalty Fee (PF)	Derive Quantity Algorithm	Derive Penalty (Custom)

• Calculation Details:

  • Formula Source: Conditional Formula

  • Conditional Formula:

    Seq.	Operand 1	Criteria Operator	Operand 2	True Action	True Formula	False Action	False Formula
    10	PF	>	EF	Apply True Formula	PF+ET	Apply False Formula	PF-ET

• Results:

  • Variable Name: Service Charge (SC)

  • FCPO: Yes (checked)

  • Result Container: Price

Rule 2: Calculate Penalty

• Sequence: 20

• Description: Calculate Penalty Charge

• Variables:

  Variable Name	Variable Type	Algorithm
  Service Charge (SC)	Transaction Value

• Calculation Details:

  • Formula Source: Simple Formula

  • Simple Formula: SC

• Results:

  • Variable Name: Penalty (PN)

  • FCPO: No (unchecked)

  • Line Description: Penalty

  • Result Container: Amount