How do I add a rate?
Rates
Add a new rate to the Rate table. Connect will use the rates to calculate bills for businesses.
Watch a video
Learn how to set up active and inactive rates, add rate levels to a rate, and use amounts and rates on rate levels. Watch a video (01m07s)
Example
The following examples of Joe and Barbara demonstrate the difference between when you would want to set up levels to bill by rate verses by amount.
Joe runs an ice skating rink and he offers group rates for large groups that come to use in the rink. For groups up to 20 people, he charges $125 for the whole group. For groups up to 40 people, he charges $215. For groups up to 60 people, he charges $300, and for groups up to 100 he charges $400.
Joe sets up the following levels:
Level 1: Qty = 20, Rate/Amt = 125.00
Level 2: Qty = 40, Rate/Amt = 215.00
Level 3: Qty = 60, Rate/Amt = 300.00
Level 4: Qty = 100, Rate/Amt = 400.00
In this case, Joe would want to set up the Type of levels by Rate because when he enters a quantity (in this case, the number of people) the rate will charge the one rate that corresponds to the level the number people falls into. The quantity will not multiplied by the rate, but instead the rate will calculate the appropriate charge depending on the quantity of people entered. So if Joe used this rate to create a billing and entered a quantity of 55, he would bill $300.00 (Level 3).
Barbara runs a business that sells bulk T-shirts and she wants to offer discounts for customers who buy larger quantities of T-shirts at one time. She wants to set up levels her business that will charge $8.00 for each T-shirt when you buy up to 10 shirts, $6.00 when you buy 11-50 shirts, and $5.00 when you buy 51+ shirts.
In this case, Barbara would want to set up levels to be billed by amount. Barbara would set up the following levels:
Level 1: Qty = 10, Rate/Amt = 8.00
Level 2: Qty = 50, Rate/Amt = 6.00
Level 3: Qty = 9999, Rate/Amt = 5.00
In this case, Barbara would want to set up the Type of levels by Amount because she wants to charge the amount for EACH quantity so that when a customer buys 6 T-shirts, which would fall in Level 1, the rate would bill the customer at 6 x 8.00 = $48.00. When levels are set up by Amount, they bill the amount multiplied by the quantity, whereas when you when you choose to bill by Rate you simply use the quantity to determine what the appropriate level is that you wish to bill at.
Adding a rate
1. Open Connect Business License > Organization > Rates.
2. Click New (CTRL+N).
3. Set up the rate options.
4. Click Save (CTRL+S).
The rate is saved.
202005, 2020Mar16
Options
Rate number
Assign a number that hasn't been assigned to another rate.
Description
Add a brief description of the rate (up to 60 characters).
Bill minimum amount
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 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 calculated amount. Clear the Bill Minimum Amount checkbox.
Bill maximum amount
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 calculated amount. Clear the Bill Maximum Amount checkbox.
Base amount
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.
Allow new billings
Select the Allow New Billings checkbox to allow users to use this rate to create billings. When the checkbox is selected, the rate is active. Do not select the checkbox to stop Connect from using the rate to create billings. The rate is inactive when the checkbox is not selected.
Allow New Billings checkbox in the Rates view
202005, 2020Mar16
Rate levels
Learn how to set up rate levels. See How do I work with rate levels?
Penalty options
Set up options for calculating penalty billings. See How do I add a penalty rate?
GL account override
Use different GL accounts instead of using the default GL accounts. See How do I use override a GL account? (Rates)
202005, 2020Mar17
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