The intent of this article is to guide you through the function and components of Earned Discount Rules in carrier agreements. This information is intended for any system user with a PDF agreement that needs to be loaded into the Agreement Management System.
Organization of rules
Rules are ordered by class type as follows:
Data Transformer
DIM Divisors
Earner Discounts
Fuel Surcharge Discounts
Service Period Discount by Region
Grace Period Discounts
Minimum Net Charge
Multipiece Minimum Weight Qualifier
Service Discount
Service Discount by Region
Service Net Rates
Surcharge Net Rates
Surcharges Discounts
It’s important to note that rules are executed from top to bottom according to the position of the rule among all other agreement rules. In other words, rules at the bottom are executed after the rules above and can overwrite the rules where overlap exists.
Earned discount rules
The Earned Discount rule calculates the amount of earned discount applied for each shipment. Carrier calculations on earned discounts, including portfolio tier discounts and yearly rolling averages are provided as inputs by the carrier.
Effective Start Date
Relevant for expiration terms on earned discount incentives.
Default: Null
Format: mm/dd/yyyy
Common mistake: Effective Start Date is entered on a date that is after the analysis period date range within CAO View. Ensure that the Effective Start Date does not affect the service discount being applied to the date range of analysis.
Pro tip: Create one Earned Discount rule for each term within the agreement. The Effective Start Date and Effective Stop date fields build each rule for the targeted date range.
Effective Stop Date
Relevant for expiration terms on earned discount incentives.
Default: Null
Format: mm/dd/yyyy
Common mistake: Effective Start Date is entered on a date that is after the analysis period date range within CAO View. Ensure that the Effective Start Date does not affect the service discount being applied to the date range of analysis.
Pro tip: Create one Earned Discount rule for each term within the agreement. The Effective Start Date and Effective Stop date fields build each rule for the targeted date range.
Effective Zones
Zone Range: Specify the zone range with Start Zone and Stop Zone.
Note: this is the most common
Zone List: Click the arrow to the right of the row to specify individual zones separated by comma.
Exclude Zones: Use this to target a zone to apply an exclusion rule for the given Zone Range or comma separated Zone List
FedEx
Domestic Zone Range: 1 – 99
International Zone Rage: A – Z
UPS
Domestic Zone Rage: Service type specific
International Zone Rage: Service type specific
DHL
International: A – Z
USPS
Domestic Zone Range: L – 10
International Zone Range: 1 – 99
Services
Create a row for each service type where the earned discount applies.
Discounts
- Min Rolling Average. The lower bound on the revenue band.
- Max Rolling Average. The upper bound on the revenue band.
- Discount. Amount of the Earned Discount.