[SUEALLEN]

The following is an excerpt from some documentation I recently wrote on this topic, which may help. Feel free to reply back or e-mail me at sue.allen@a3i.com if you need clarification or a more detailed example. It took me a while to get my head around rate factors and rules, but I've got it down to a science now.

Rate Factor Rule – Header Screen

The header screen identifies the basic data attached to the Rate Factor Rule. After entering this data, click the “New Rate Factor” button to add the detailed rule information via the Rate Factor Rule detail screen.

Field Name
Description / Rules
Rate Factor Rule ID
Unique OTM System identifier for the Rate Factor Rule.
Description
Detailed description of the rule.
Source Rate Factor ID
Rate Factor Source that the rule relates to. This is the data that the rule and resultant accessorial charges will be based upon.
Accessorial Code ID
The accessorial code ID must match the accessorial code the carrier will provide via EDI. All valid EDI accessorial codes are pre-defined in OTM for your convenience. Use the “F” (find) Power Field to find the appropriate code. The EDI code typically used for Fuel Surcharges is FUE.
Accessorial Cost ID
In the case of Rate Factor Rules, the Accessorial Cost describes the unit of measure of the fuel surcharge (percentage, cost per mile, etc.). Create an Accessorial Cost entry to describe how the fuel surcharge will be applied.
For the remainder of the fields on this screen, create one entry per Rate Offering / Rate Record to define the rate items for which a fuel surcharge entry should be created each time this rule is processed / each time the Rate Factor Source is updated.
Sequence Number
Unique sequence number. Increment this number for each new Rate Offering / Record you attached to the Rate Factor Rule.
Rate Record Type
Select Rate Offering or Rate Record.
Rate Offering ID
If you selected Rate Offering as the Rate Record Type, select the Rate Offering you are attaching to this rule.
Rate Record ID
If you selected Rate Record as the Rate Record Type, select the Rate Record you are attaching to this rule.


1.1.2 Rate Factor Rule – Detail Screen




Field Name
Description / Rules
Effective Date
This is the ORIGINAL effective date of the rule itself. The fuel surcharge entries will be based off the Rate Factor Source effective dates.
Expiration Date
This is the ULTIMATE expiration date of the rule itself. Typically these rules stay in place indefinitely, so the expiration dates of the Rate Factor Rules should be well in the future.
Source Effective Date
Always select “Factor Effective”.
Source Expiration Date
Always select “Factor Expiration”.
Cost Type
Lookup associates the Rate Factor Source with a corresponding Accessorial Cost. For example, if you have a relation between the rise in the index and the fuel surcharge (e.g., for every 5 cents of diesel fuel, the fuel surcharge goes up 0.5 percent).

Use Copy Factor if you are entering the Fuel Surcharge itself and want to copy the fuel surcharge rate as-is to the accessorial costs. This is useful if the carriers’ fuel surcharge program does not follow a fixed pattern but is updated periodically as-is.
Apply To
Per Unit – accessorial will be created as a price per unit (i.e., per mile, per weight, etc.)

Percentage – accessorial will be created as a percentage value.
Factor Increase
For Copy Factor cost types, this is not required. If you chose Lookup as the Cost Type, enter the amount of increase in the Rate Factor Source that will dictate a change in the fuel surcharge. In the instance that you are entering a fuel surcharge that goes up 0.5 percent for 5 cents of diesel cost, this value would be .05 to represent the 5 cent increase.
Cost Increase
For Copy Factor cost types, this is not required. If you chose Lookup as the Cost Type, enter the amount of corresponding increase in the fuel surcharge rate base don the Factor Increase you entered for the Rate Factor Source. In the instance that you are entering a fuel surcharge that goes up 0.5 percent for 5 cents of diesel cost, this value would be .5 to represent the .5 percent increase in fuel.
Maximum Factor Value
For Copy Factor cost types, this is not required. If you chose Lookup as the Cost Type, enter the amount of the index where the pattern in fuel begins. For example, if the lowest fuel surcharge percentage or rate is at zero when diesel fuel is $1.10 you would enter 1.10 in this field.
Cost Value
For Copy Factor cost types, this is not required. If you chose Lookup as the Cost Type, enter the lowest (usually zero) amount of the fuel surcharge where the pattern in fuel begins. For example, if the lowest fuel surcharge percentage or rate is at zero when diesel fuel is you would enter 0 in this field. Click SAVE after entering the Maximum Factor Value and Cost Value.