1.2.4 Defining charges to be applied on a slab or tier structure
You can create a charge rule that calculates charges on the basis of an amount structure. This structure could be in tiers or in slabs. Select the Tiered Amount check box if the Basis Amount structure is Tiers. Leave it blank if the Basis Amount structure is Slabs.
The following example illustrates how this works:
Example
You have defined a Charge Rule, SplChgPor01, which you like to apply on deals in DEM,
with the following amount basis structure:
When this rule is applied on a deal of value 1.5 Million DEM, the rate of the
charge is calculated depending on whether the basis has been defined as Slab or Tier as
indicated below.
| Amount | Rate |
|---|---|
| 0 to 250 Thousand | 0.05% |
| > 250 Thousand <= 1 Million | 0.06% |
| > 1 Million <= 3 Million | 0.07% |
| > 3 Million | 0.08% |
- Tier basis
- The first 250,000 (of the total value of 1.5 million) is charged at 0.05%.
- The amount from 250,000 to 1,000,000 at 0.06%.
- The amount from 1,000,000 to 1,500,000 at 0.07%.
- The total amount levied as charge is DEM 925.
- Slab basis
- The entire DEM 1.5 million is charged at 0.07%.
- Therefore, the amount charged is DEM 1,050.
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