E.3.3 Tiered and Non Tiered Usage Calculation
Consider the following type of charge matrix defined:
Table E-1 Tiered and Non Tiered Usage Calculation
| Rate Chart | From Units | To Units |
|---|---|---|
| Base | 0 | 1 |
| Base | 30 | 2 |
| Base | 75 | 3 |
| Cycle Excess | 0 | 4 |
| Cycle Excess | 50 | 5 |
| Life Excess | 0 | 6 |
| Life Excess | 50 | 7 |
On receiving the following type of usage data from customer, the chargeable units are derived based on lapse and rollover rules. The chargeable units are charged based on Tiered and Non Tiered preference indicated for a collateral. The sample usage calculation is as indicated below:
Base Units:76, Cycle Excess:51, and Life Excess=65
Tiered Calculation
Base Charge = (29*1)+(45*2)+(2*3) = 125
Cycle Excess Charge=(49*4)+(2*5)=206
Life Excess Charge=(49*6)+(16*7)=406
Total Charge=125+206+406=737
Non Tiered Calculation
Base Charge =(76*3) = 228
Cycle Excess Charge=(51*5)=255
Life Excess Charge=(65*7)=455
Total Charge=228+255+455=938
Parent topic: Usage Based Leasing Workflow