One vehicle is leased for a minimum price per month of $1,000. That includes all maintenance costs, insurance, and 2,000 miles per period. Extra miles over 2,000 are invoiced at $0.50 per mile. If meter readings are not always available estimates will be calculated and invoiced.
Define this contract as follows, but take into consideration that other ways may lead to the same result:
Charge Category |
Subcategory |
Charge Level |
Invoice |
Rate |
Min. |
UOM Related |
|
---|---|---|---|---|---|---|---|
Charge Estimated Usage |
Estimated Daily Usage |
||||||
Usage Charges |
Usage Based - Miles |
Transaction |
Yes |
$0.50 |
2,000 |
Yes |
50 |
The car went 1600 miles the first month. Meter readings were entered 4 days short of the invoicing period end date. The Invoice for this month will be $1,000.00:
Charge Category |
Subcategory |
Charge Level |
Amount |
---|---|---|---|
Usage Charges |
All |
Charge Category |
$1,000 |
Usage Charges |
Usage Based |
Charge Subcategory |
$1,000 |
Usage Charges |
Usage Based |
Charge Subcategory |
$0 (estimated) |
The car went 2100 miles the second month. Meter readings were entered 1 day short of the invoicing period end date. The Invoice for this month will be $1075.00:
Charge Category |
Subcategory |
Charge Level |
Amount |
---|---|---|---|
Usage Charges |
All |
Charge Category |
$1075 |
Usage Charges |
Usage Based |
Charge Subcategory |
$1050 |
Usage Charges |
Usage Based |
Charge Subcategory |
$25 (estimated) |
A six-month run could look like this:
Invoice Period |
Month 1 |
Month 2 |
Month 3 |
Month 4 |
Month 5 |
Month 6 |
---|---|---|---|---|---|---|
Minimum Quantity |
2,000 |
2,000 |
2,000 |
2,000 |
2,000 |
2,000 |
Actual |
1,600 |
2,100 |
2,500 |
1,950 |
1,900 |
2,050 |
Missing reading days |
4 |
1 |
5 |
1 |
0 |
3 |
Estimate Usage therefore |
200 |
50 |
250 |
50 |
0 |
150 |
Invoice Quantity |
2,000 |
2,100 |
2,500 |
2,000 |
2,000 |
2,050 |
Estimated Invoice Quantity |
0 |
50 |
250 |
0 |
0 |
150 |
Invoice Price Estimate Estimate Credit |
$1,000 |
$1,050 $25 |
$1,250 $125 -$25 |
$1,000 -$125 |
$1,000 |
$1,025 $75 |
If you add rollover buffering to this contract:
Invoice Period |
Month 1 |
Month 2 |
Month 3 |
Month 4 |
Month 5 |
Month 6 |
---|---|---|---|---|---|---|
Minimum Quantity |
2,000 |
2,000 |
2,000 |
2,000 |
2,000 |
2,000 |
Actual |
1,600 |
2,100 |
2,500 |
1,950 |
1,900 |
2,050 |
Missing reading days |
4 |
1 |
5 |
1 |
0 |
3 |
Estimate Usage therefore |
200 |
50 |
250 |
50 |
0 |
150 |
Invoice Quantity |
2,000 |
2,000 |
2,450 |
2,000 |
2,000 |
2,000 |
Estimated Invoice Quantity |
0 |
0 |
250 |
0 |
0 |
100 |
Invoice Price Estimate Estimate Credit |
$1,000 |
$1,000 |
$1,225 $125 |
$1,000 -$125 |
$1,000 |
$1,000 $50 |
Rollover buffer |
200 |
50 |
0 |
0 |
100 |
0 |