How to Combine an Insurance Minimum and Incremental Rate

Pricing, Costing, and Rating
A common insurance charge combines an incremental rate and a flat fee or minimum charge into a price modifier group as follows:
  1. Open OnTime Management Suite and navigate to the Prices list.
  2. Select the Price Modifiers view using the radio button on the left side of the application.
  3. Click the New Price Modifier button located in the toolbar.
  4. Begin by creating a flat fee or minimum charge for insurance. Configure the price modifier’s settings:
    1. Name the price modifier accordingly (e.g. “Insurance Fee”).
    2. Set the Calculation Type to Fixed Amount.
    3. Enter the amount of the flat fee or minimum charge for insurance into the Amount field.
    4. Save the price modifier.
  5. Click the New Price Modifier button again to create a second price modifier for the incremental rate:
    1. Name the price modifier accordingly (e.g. “Incremental Insurance Rate”).
    2. Choose Incremental Overage Amount for the Calculation Type.
    3. Set the Increment according to the rate that is to be charged for insurance. For instance, if the insurance rate is $1.00 for every $100 declared value in the shipment, then the Increment would be ‘100’.
    4. Set the Field to Declared Value.
    5. Set the Amount as the amount to charge per increment of declared value. In the example above (c), the Amount would be $1.00.
    6. Save the price modifier.
  6. To combine the prices, right-click anywhere within the Price Modifiers list and choose New Price Modifier Group.
    1. Name the new Price Modifier Group accordingly while keeping in mind that the group will be the actual price modifier that is selected to be included within the service.
    2. Set the Type to General Option.
    3. Set the Behavior to Use the sum of all modifiers to combine the subsequent amounts from each of the price modifiers in the group.
    4. Pay attention to the Percent eligible for commission if any of your Users are set up to receive a commission. Insurance is not usually commissionable; in such cases, you should set it to 0.00%.
    5. Locate the two price modifiers created above in the Available Modifiers list on the right, then drag and drop them into the Group List on the left.
    6. Click OK to save the new group.
  7. Finally, make sure to include the new insurance price modifier group in each of the price sets in which it is required or should be available for selection.
Article ID: 217, , Modified: June 27 at 2:05 PM

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