Outlined below is an example of how usage is rated over one billing period for a service with usage pooling enabled and the below rate schedule.
Usage Pooling Example
Overview
Rate Schedule
Incoming Faxes | Outgoing Faxes | ||
---|---|---|---|
Units | Rates | Units | Rates |
1 – 100 |
.00 |
1 – 100 |
.00 |
101 – 500 |
.10 |
101 – 500 |
.08 |
501 – 1000 |
.08 |
501 – 1000 |
.06 |
1001 – Infinity |
.05 |
1001 – Infinity |
.04 |
Calculating Usage Rating with Usage Pooling
To understand the usage rating for this service, it is important to consider the way that the usage is pooled across multiple rate schedule tiers and how the factor unit rate is then calculated.
Service |
Units |
Pooled Usage |
Factored Unit Rate |
Total Charge |
Calculation Explanation |
---|---|---|---|---|---|
Incoming Faxes |
125 units |
125 units |
$0.02 |
$2.50 |
The first 100 units of incoming faxes fall into the first tier and are charged at $0.00. |
Outgoing Faxes |
300 units |
425 units |
$0.08 |
$24.00 |
The pooled usage prior to this load is 125 units. |
Incoming Faxes |
200 units |
625 units |
$0.09 |
$17.50 |
The pooled usage prior to this load is 425 units. |
Outgoing Faxes |
150 units |
775 units |
$0.06 |
$9.00 |
The pooled usage prior to this load is 625. |
Factored Unit Rate
To understand how the invoice calculates the total charge for the service, it is important to realize how the factored unit rate is calculated for each usage load charge. A factored rate is the adjusted rate per unit for a usage load that falls across tiers of a rate schedule. You can use the below formula to get the factored rate per unit.
Factored Rate Per Unit = Total Charge of Usage Load / Number of Units in the Usage Load
For instance, in the first usage load of the above scenario, 125 units were loaded for a total charge of $2.50 (100 units at $0.00 and 25 units at $0.10). This means the factored rate for each unit in this usage load is $2.50 / 125, which is equal to $0.02.
The factored unit can be seen as the Price Per Unit on the generated invoice (Account > Statements & Invoices > Invoices), as shown below.