Enabling the Usage Tier Multiplier on a plan’s usage-based service(s) is a rating method that can be used to rate usage when a customer purchases multiple units of a plan. When enabled, Usage Tier Multiplier adjusts the upper levels of each unit/rate tier by the number of plan units purchased to rate the customer’s usage consumption. The following unit/rate table outlines the effect of the Usage Tier Multiplier when a customer purchases 2 plan units of a plan containing the following usage-based service:
| Usage-Based Service | Unit Tiers | Unit Price | Multiplier Tier (Upper Units of Each Tier X 2) | Unit Price |
| Service A | 1 – 200 | $0.03 | 1 – 400 | $0.03 |
|
| 201 – 500 | $0.02 | 401 – 1000 | $0.02 |
|
| 501 – Infinity | $0.01 | 1001 – Infinity | $0.01 |
In the above scenario, the first tier of a rate schedule for a cell phone plan service is $0.03 for 1 – 200 minutes. A customer who purchases 1 plan unit and consumes 200 minutes of service in a billing period will be charged $0.03 per minute (for a total of $6.00).
However, if 2 units of this same plan is purchased, and Usage Tier Multiplier has been enabled, then a customer who consumes 400 minutes of this service will still only be charged $0.03 per minute (for a total of $12) because their usage falls within the first level of their multiplied usage tier.
Reference the Usage Tier Multiplier example for a more detailed use case.
Enabling Usage Tier Multiplier
Usage Tier Multiplier can be enabled for all pricing methods (i.e. standard tier, volume discount, and flat rate per tier). Additionally, Usage Tier Multiplier can be applied whether real-time usage rating is enabled or not (i.e. the Automatically Rate Un-rated Usage Records at Load Time system parameter).
To enable Usage Tier Multiplier, you must select Usage Tier Multiplier from the Advanced Billing Options on a plan's assigned usage-based service (Plans > Services).
