Set up a new rate.
A rate is a charge, payment, or price fixed according to a ratio, scale, or standard. In Accounts Receivable, a rate defines how an amount is calculated when you create recurring billings, recurring invoices, sales tax, or penalty.
The rate calculates based on quantity, current charges, delinquent balance, or days. You can set up a rate for each calculation level, or tier. Then, you can link the rate to a recurring billing, recurring invoice, or category.
1. Open Connect Accounts Receivable > Organization > Rates.
2. Click New (CTRL+N).
The form clears. The next available rate number appears in the Rate Number field.
3. Enter the Description.
A description is a word or phrase that describes the character or features of the rate.
Do you want to use the default description?
Yes, I want to use the default description. Continue to the next field.
No, I want to use a different description. Click on the Description field, and then type in a new description (up to 40 characters).
4. Select the Category.
A category is distinct class to which invoices, vendors, transactions, and so on may belong.
What is the category?
I want to select a category code. Use the Category field to select a category name.
I need to add a new category. Use Organization > Category to add a new category record. See the help topic titled How do I add a category?
5. Set up the Bill Minimum Amount checkbox. (Optional)
Use bill minimum amount to bill at least x dollars even when the billed amount is less than the billed minimum amount. For example, Jane bills a minimum amount of $10. When she uses this rate to calculate an amount, the billed amount is $7.00. Since the rate is set up to bill minimum amount and the calculated billed amount is less than the bill minimum amount, the account is billed $10.00.
Do you want to bill a minimum amount?
Yes, bill minimum amount. Click to select Bill Minimum Amount. Then, enter the minimum amount to bill in the Bill Minimum Amount field.
No, bill the calculated amount. Clear the Bill Minimum Amount checkbox.
6. Set up the Bill Maximum Amount checkbox. (Optional)
Use bill maximum amount to bill x dollars when the account balance is greater than the billed maximum amount. For example, Jane adds a rate that bills a maximum of $100. She uses this rate to calculate an amount. The billed amount is $125.00. Because the rate is set up to bill a maximum amount and the calculated amount is greater than the billed maximum amount, the account is billed $100.00.
Do you want to bill maximum amount?
Yes, bill maximum amount. Click to select Bill Maximum Amount. Then, enter the maximum amount to bill in the Bill Maximum Amount field.
No, bill the calculated amount. Clear the Bill Maximum Amount checkbox.
7. Enter the Base Amount. (Optional)
A base amount is an amount charged in addition to the calculated amount.
Total Calculated Amount = Base Amount + Calculated Amount
Do you want to charge a base amount?
Yes, charge a base amount. Use the Base Amount field to enter an amount.
No, do not charge a base amount. Enter zero (0) as the Base Amount.
8. Select the Levels Based On.
When you use a rate the rate uses levels, or tiers, to calculate amounts. You can set up the variable the level will use to calculate amounts. The variable is defined in the Levels Based On field. See the help topic titled What are levels based on?
9. Set up the Multiply Base by Units checkbox. (Optional)
Use Multiply Base by Units to multiply the base amount by the number of units. The Number of Units is stored in the customer's file. When you use this rate, the rate will look at the Number of Units in the customer's file to calculate an amount.
Calculated Amount = Base Amount x Number of Units
Do you want to multiply base amount by units?
Yes, multiply base amount by units. Click to select Multiply Base by Units.
No, do not perform this calculation. Click to clear the Multiply Base by Units.
10. Set up the Multiply Levels by Units checkbox.
Use Multiply Levels by Units to multiply Levels Based On by the number of units. The Number of Units is stored in the customer's file. When you use this rate, the rate will look at the Number of Units in the customer's file to calculate an amount.
Calculated Amount = Levels Based On x Number of Units
Do you want to multiply levels based on by units?
Yes, multiply levels based on by units. Click to select Multiply Levels by Units.
No, do not perform this calculation. Click to clear Multiply Levels by Units.
11. Set up the Rates.
The rate calculates based on quantity, current charges, delinquent balance, or days. You can set up a rate for each calculation level, or tier. Then, you can link the rate to a recurring billing, recurring invoice, or category. See the help topic titled How do I set up levels in a rate?
12. Click Save (Ctrl+S).
The rate is set up.