Billing Manager

Updated on April 22nd, 2024

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  • Help Center
  • Billing Manager
  • Using Billing Manager
  • Rates
  • Understanding Rates
  • Rates
    • Understanding Rates
        • Understanding Global Rates vs Custom Rates
        • Creating, Duplicating, and Deleting a Rate
        • Understanding Default Assigned Rate vs Assigning Rate per Warehouse Facility
        • Assigning Rates and Rate Sheets to a Customer
        • Understanding Standard vs Volume Tiering
        • Understanding Count vs Count Less Other UOMs
        • Creating a Rate Sheet
        • Count Less Other UOMs (Unit of Measures) Pre-Condition
        • Understanding the Use of Movable Units as Counting Units in Rate Creation
        • Common Terminologies in Rate Creation
        • Reassigning Rate Sheet from Customer Settings
        • Understanding Units of Measure (UOM) Count Rate
        • Unassigning a Rate From a Customer
        • Duplicating a Rate Sheet
    • Return Transaction Rates
        • Creating a Rate for Return Fee
        • Creating a Rate for Returned Primary Units on a Tiered Unit Basis
        • Creating a Custom Rate for a Return Process of a Specific Customer
        • Creating a Rate for Returning Packages
        • Creating Rates to Charge for a Partial Pallet Based on Movable Unit Type
    • Receiving Transaction Rates
        • Creating a Rate for After-Hours Receipt of Devan Inbound 20' Containers
        • Creating Rates for Inbound Devanning: 20', 40', and 45' High Cube Containers (Multiple Conditions)
        • Creating a Rate for Inbound Receiving Excess Weight Fee
        • Creating a Rate Based on Unique Lot IDs
        • Creating a Rate Based on Unique SKUs Shipped
        • Creating a Rate Based on Unique Location
        • Creating Rate Based on Quantity of Lot with Volume Tiered Rate
        • Creating a Rate Based on Quantity of Location with Standard Tiered Rate
        • Creating a Rate for Storage Upon Receipt per Carton Using a Split Rate
        • Creating a Smart Rate for Devan Inbound 20’ Container
        • Creating a Standard Warehouse Inbound Receipt Rate
        • Creating a Weekend Receipt Charge Rate
        • Creating a Rate for Inbound Pallet Fee Based on the Number of Pallets
        • Creating a Rate to Charge for a Partial Pallet Based on Movable Unit Types
        • Creating a Rate for Primary Unit vs Packaging Unit vs Pallet
        • Creating a Rate for Inbound Pallets with Multiple Movable Unit Types: Rounding Up Movable Units by Quantity
        • Creating a Rate for Movable Units Based on the Number of Pallets
        • Creating a Rate for Storage Upon Receipt by Movable Units Using a Split Rate
        • Creating a Rate Based on Total Weight
        • Creating a Rate for an Inbound 20' and 40' Floor Loaded Containers Based on Carton Count
        • Creating a Standard Tiered Rate for Each Pick
        • Creating a Rate for Inbound Pallet Fee based on Unique Movable Unit
        • Creating a UOM Count Rate for a Receipt or Shipment
    • Shipping Transaction Rates
      • Special Charges
          • Creating a Custom Rate to Implement Unique SKU-Based Promotional Insert Fees for Your Customers
          • Creating Customized FBA Prep Fees for Customers Including Carton Labeling
          • Creating a Special Charge for Will Call Fees
        • Creating a Rate for Order Processing Fee
        • Creating a Package Materials Fee and Small Parcel Shipping Label Fee
        • Creating a Handling Oversized Shipment Surcharge Rate (Over 40 lbs)
        • Creating a Shipping Oversized Pick Surcharge Fee (Over 20lbs)
        • Creating an FBA Prep Carton Label with Standard Tiered Fee
        • Creating a Rate for Pick-and-Pack Fee with Amazon Item Classification
        • Creating a Fragile Package Handling Rate
        • Creating a Promotional Rate Based on SKU for a Specific Customer
        • Creating a Rate for an Outbound Pick Fee with a Minimum Base Charge
        • Creating a Pick Fee Rate Based on Business to Business Order
        • Creating a Minimum Order Charge Rate Based on Total Weight
        • Creating an Inner Case Pick Rate Using Standard Tiering
        • Creating a Base Charge Rate for Less Than Truckload (LTL) Orders Going to Various Retailers
        • Creating a Base Charge Rate for Orders That Exceed 5 Cartons Shipped
        • Creating a Case Picking Rate Using Volume Tiered Fee
        • Creating a Rate for an Outbound Picking Fee Based on Individual Units
        • Creating a Rush Fee Rate
        • Creating a UOM Count Rate for a Receipt or Shipment
        • Creating a Rate Based on Shipping Destination
    • Transaction Minimum / Markup Rates
        • Creating a Transaction Minimum Receiving Rate
        • Creating a Transaction Markup Rate
        • Creating a Category Markup Rate for Handling Based on Item Classification (Smart Rate)
        • Creating a Category Minimum Receiving Handling Rate
    • Storage Rates
        • Confirming Recurring Storage and Reviewing in Billing Manager
    • Warehousing Services / Adjustments / Assemblies Rates
        • Creating a Tiered Rate for Adjustments per SKU
        • Creating a Tiered Rate for Adjustments Counting Total Quantity
        • Creating a Tiered Rate for Assembly Kitting Component Fee (Total Count)
        • Creating a Rate for Adjustment by Unique Location
        • Creating a Rate for an Adjustment Based on Total Volume
        • Creating a Rate for Assembly Kitting Component Fee by SKU
        • Creating a Custom Rate for Adjustments per Unique SKU
        • Creating a Tiered Rate for Assemblies (Total Kits Fee)
        • Creating a Rate for Total Kits Created in an Assembly Using Volume Tiering
        • Creating a Rate for Total Kits Created in an Assembly Using Standard Tiering
        • Creating an Assembly Per Kit Fee Rate with a Minimum Charge
      • List of How-to Guides for Creating Rates

Understanding Standard vs Volume Tiering

This article is about the Billing Manager app, not the Billing Wizard in 3PL Warehouse Manager. To learn about the Billing Wizard, please refer to the articles in the Billing Setup.

 

This article illustrates the difference between Standard Tiering and Volume Tiering through a sample computation. This also explains how to use the Between operator in tiered rates.

Counting Units

Selecting the Counting Unit will determine how the tiered rates calculate charges.

  • If the Primary Unit is chosen as the Counting Unit, the total quantity of the transaction will be used to calculate the Tiered Fees.
  • If the Secondary or Packaging Unit is selected as the Counting Unit, the individual SKU quantities within the transaction will be used to calculate the Tiered Fees.
 

Standard Tiering

This rate charges a certain amount for the quantity within a tier and will charge a certain amount for the quantity within the next tier. In short, the rate will be applied for each tier being used. 

Referring to the image below, the system charges $2.00 for the first case, $1.50 for the 2nd to 5th cases, and $1.00 for any additional cases beyond five.

Scenario 1

Let's say we have a total of 4 cases, how much is the total rate based on above image? This will utilize both Tier 1 and Tier 2 rate.

Answer: (QTY 1*$2) + (QTY 3 * $1.5) = $6.50 will be charged for a total of 4 cases. 

Scenario 2

If we have a total of 12 cases, how much is the total rate based on above image? This will utilize all tiers.

Answer: (QTY 1*$2) + (QTY 4 * $1.5) + (QTY 7 * $1.00)= $15.00 will be charged for a total of 12 cases. 

Volume Tiering

This rate charges a specific amount depending on which tier the quantity falls within. Unlike standard tiering, there could only be one tier to utilize when the system generates the rate. 

Referring to the image below, the system charges $1.00 per case if there are up to 5 cases, $0.75 per case if there are between 6 and 10 cases, and $0.50 per case if there are more than 10 cases

Scenario 1

Let's say we have a total of 10 cases, how much is the total rate based on above image? This will utilize Tier 2.

Answer: (QTY 10 * $0.75) = $7.50 will be charged for a total of 10 cases. 

Scenario 2

If we have a total of 15 cases, how much is the total rate based on above image? This will utilize the last tier.

Answer: (QTY 15 * $0.50)= $7.50 be charged for a total of 15 cases. 

Scenario 3

If we have a total of 5 cases, how much is the total rate based on above image? This will utilize the first tier.

Answer: (QTY 5 * $1.00)= $5.00 be charged for a total of 5 cases. 

Between Operator

Notice that the operators are locked to Less Than or Equal, Between, and Greater Than. 

When using the Between operator to set tier values, remember that the system excludes the value indicated in the 'From' field. Referring to the image below, Tier 2 counts only for cases 6 through 10.

In Scenario 1 with 10 cases, Tier 2 is used for charge calculation, not Tier 3. In Scenario 3 with 5 cases, Tier 1 is used, not Tier 2

 

 

standard tier volume tier tiered rate tiering

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Related Articles

  • Creating a Smart Rate for Devan Inbound 20’ Container
  • Creating Rate Based on Quantity of Lot with Volume Tiered Rate
  • List of How-to Guides for Creating Rates
  • Creating a Standard Warehouse Inbound Receipt Rate

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