Rate Definition

Rate schedules, rate versions, and rate components are used to define the formulas to calculate the total amount charged to a customer for a product. Some examples of formulas are: price times the number of transactions used and a flat monthly charge plus a percentage of the average daily balance.

The rate is a formula with variables whose values are supplied by a user by setting up a price list or override price. For example, a rate might add a flat monthly charge and a percentage of the average daily balance to arrive at the amount charged to the customer. This rate might be used to calculate the charge for multiple products, each product with its own flat amount and percentage. So, these two factors are defined as variables whose values must be entered by users when they setup price list or override price. In Oracle Revenue Management and Billing (ORMB), these variables are defined as rate components.

The system provides you with the ability to create tiered pricing in case standard flat pricing is not sufficient to meet the business needs. The Rate Definition screen allows you to indicate whether the rate component supports standard flat pricing or tiered pricing. It allows you to define, edit, and delete the tiering setup of a rate component. This screen consists of the following zones:

• Rate Schedule Components

• Create/Edit Rate Definition

Related Topics

Parent topic: Pricing Management