The purpose of this article is to guide you through the function and components of surcharge discount rules in carrier agreements. This information is intended for any system user with a PDF agreement that needs to be loaded into the Agreement Management System.
Organization of rules
Rules are ordered by class type in the following order:
- Dim Divisor
- Service Discount
- Grace Period Discount
- Earned Discount
- Minimum Net Charges
- Surcharge Discount
- Fuel Discount
It’s important to mention that rules are executed from top to bottom. That means rules at the bottom are executed after the rules above and can overwrite the rules where overlap exists.
Surcharge discount rule
The Surcharge Discount rule calculates the discounts on Surcharges.
Service
Select the Service targeted by the rule.
Note: Services and Service Type Groupings are carrier specific.
Pro tip: Services are organized into groups. Each bullet point within the Service Type Grouping is included in the rule created when the heading is selected.
Effective Start Date
Relevant for expiration terms on Surcharge Reductions.
Default: Null
Format: mm/dd/yyyy
Common mistake: Effective Start Date is entered on a date that is after the analysis period date range within CAO View. Ensure that the Effective Start Date does not affect the surcharge discount being applied to the date range of analysis.
Pro tip: Create one Net Surcharge Discount rule for each term within the agreement. The Effective Start Date and Effective Stop date fields build each rule for the targeted date range.
Effective Stop Date
Relevant for expiration terms on Surcharge Discounts.
Default: Null
Format: mm/dd/yyyy
Common mistake: Effective Start Date is entered on a date that is after the analysis period date range within CAO View. Ensure that the Effective Start Date does not affect the Surcharge Discount being applied to the date range of analysis.
Pro tip: Create one Net Surcharge Discounts rule for each term within the agreement. The Effective Start Date and Effective Stop date fields build each rule for the targeted date range.
Directions
Overview: Domestic service types are managed as a single rule on Surcharge Discounts. Surcharge Discounts on international shipments, in contrast, are managed as separate rules by direction. Export and Import.
Default: All enabled by default
Options:
- Import
- Export
- Domestic
Discounts
- Surcharge Name. Select all of the surcharge discounts that apply for the given incentive rule.
- Surcharge Discount. Percentage discount off the list rate of the surcharge or accessorial charge.
- Surcharge Pay Type. Specify your surcharge discount by pay type. Example, there could be a difference between the Prepaid Ground Commercial discount vs. the Freight Collect Ground Commercial discount.