Rated Amount Calculation Using Tier-Level Discounts and Markups
The rating engine computes the final per-unit price by applying tier-level percentage adjustments (discounts or markups) to the Net Unit Price available onthe billing header, rather than tier level unit price. This ensures that unit price is the same but it can get discounted/marked up based on the consumption.
Required Inputs and Computation Logic
| Input | Source |
|---|---|
| Net Unit Price | Billing Header (derived from OLI/ALI after automated/manual discounts, promotions, and rebates) |
| Adjustment Type | Price Tier on the Order/Asset Line Item (% Discount or % Markup) |
| Adjustment Amount | Price Tier on the Order/Asset Line Item (percentage value) |
| Quantity | Usage Input |
- For % Markup — Rated Amount = Quantity × (1 + Adjustment Amount / 100) × Net Unit Price.
- For % Discount — Rated Amount = Quantity × (1 − Adjustment Amount / 100) × Net Unit Price.
After rating, the calculated amounts are rolled up from the usage inputs to the billing schedule record (BSR). The total rated amount across all rated usage inputs is populated in the Actual Fee Amount field, while the cumulative quantity from all usage inputs is displayed in the Total Usage Quantity field.
Dimension Values and Tier Matching
The tier-matching behavior varies depending on the dimension value type (Discrete, Range, or Cumulative Range) configured on the subscription. For more information on dimension values and tier matching, refer to Use Case: Consumption Based Billing Workflow.
Example
A billing header has a Net Unit Price of GBP 100.00 with currency decimal places set to 2 in the billing settings. The tiers are configured as shown in table.
| Sequence (Tier) | From/Tier Start Value | To/Tier End Value | Adjustment Type | Adjustment Amount |
| 1 | 1 | 100 | % Markup | 5.00 |
| 2 | 101 | 500 | % Discount | 5.00 |
| 3 | 501 | 2000 | % Discount | 10.00 |
For a Range as dimension value with a usage quantity of 550 (falls in Tier 3), the rated amount is calculated using the above computational logic as:
Rated Amount = 550 × (1 − 0.10) × 100 = GBP 49,500.00
For Cumulative Range as dimension value with the same usage quantity, the rated amount is:
Rated Amount = 100 x (1.05 x 100) + 400 x (0.95 x 100) + 50 x (0.9 x 100) = GBP 53,000.00
The above calculation demonstrates that the rating application applies tier-level percentage adjustments (discount in this case) to the Net Unit Price on the billing header to determine the rated amount.