Bill Factor Variance Parameter Values

A bill factor may also contain values, which differ by a variance parameter. This enables you to set up prices that differ by variance parameter or to set up contract values, which differ by variance parameter.

Bill Factor Variance Parameter values are typically used to record prices, which vary by variance parameter code. Variance Parameter prices are used in conjunction with variance parameter mapping. The customer would typically have interval quantities, which are mapped, using a Variance Parameter Map, into a collection of variance parameter quantities. Defining a bill factor with prices per Variance Parameter allows you to set up a single rate component to apply charges to these quantities, resulting in multiple bill calculation lines.

Just as with simple bill factors, Variance Parameter bill factors may have characteristics defined. In the above example, the characteristic is the "Market" where the prices are defined. This bill factor probably indicates that the contract has a characteristic indicating the market from which it gets its prices. This enables you to use a common rate for customers who get their prices from different markets.

In addition to defining the characteristics, Variance Parameter bill factors must also indicate the Variance Parameter Group. The Variance Parameter group is a collection of time period definitions, which make up a Variance Parameter map. This enables you to define different prices for On Peak, when it is part of a 2 part Variance Parameter map versus when it is part of a 3 part Variance Parameter map.

The Variance Parameter prices are defined for the combination of characteristic and Variance Parameter Group. In the examples below, a bill factor's characteristic is State. Also note that the effective date of the prices are the same for all variance parameter codes. If the price of any Variance Parameter value changes, then a new set of prices for all Variance Parameter codes must be entered.

The application of these variance parameter values requires the use of an algorithm. If your business uses the interval billing subsystem and uses variance parameter mapping and pricing, then functionality is available for applying these values to interval quantities, which have been mapped into variance parameter quantities. Refer to The Big Picture of Interval Billing for more information.

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Parent Topic: Setting Up Bill Factors