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Home > User Documentation > Usage > Configure Usage > Usage Pooling > Usage Pooling Example

Usage Pooling Example

Overview

Outlined below is an example of how usage is rated over one billing period for a service with usage pooling enabled and the below rate schedule.

Rate Schedule

Incoming Faxes Outgoing Faxes
Units Rates Units Rates

1 – 100

.00

1 – 100

.00

101 – 500

.10

101 – 500

.08

501 – 1000

.08

501 – 1000

.06

1001 – Infinity

.05

1001 – Infinity

.04


Calculating Usage Rating with Usage Pooling

To understand the usage rating for this service, it is important to consider the way that the usage is pooled across multiple rate schedule tiers and how the factor unit rate is then calculated.

Service

Units

Pooled Usage

Factored Unit Rate

Total Charge

Calculation Explanation

Incoming Faxes

125 units

125 units

$0.02

$2.50

The first 100 units of incoming faxes fall into the first tier and are charged at $0.00.

The remaining 25 faxes fall into the second tier and are charged at $0.10 for a total charge of $2.50 (25 units X $0.10). 

This makes the total charge for this usage $2.50 ($0.00 + $2.50).

Outgoing Faxes

300 units

425 units

$0.08

$24.00

The pooled usage prior to this load is 125 units.

300 units are loaded for outgoing faxes, which falls into the second tier and are charged at $0.08 per unit for a total charge of $24.00 (300 units X $0.08).

Incoming Faxes

200 units

625 units

$0.09

$17.50

The pooled usage prior to this load is 425 units.

The first 75 units of this load for incoming faxes are rated at $0.10 per unit for a total charge of $7.50 (75 units x $0.10).

The remaining 125 units are rated at $0.08 per unit for a total charge of $10.00 (125 units x $0.08).


This makes the total charge for this usage $17.50 ($7.50 + $10.00).

Outgoing Faxes

150 units

775 units

$0.06

$9.00

The pooled usage prior to this load is 625.

150 units are loaded for outgoing faxes, which falls into the third tier and are charged at $0.06 per unit for a total of $9.00 (150 units X $0.06).


Factored Unit Rate

To understand how the invoice calculates the total charge for the service, it is important to realize how the factored unit rate is calculated for each usage load charge. A factored rate is the adjusted rate per unit for a usage load that falls across tiers of a rate schedule. You can use the below formula to get the factored rate per unit.

Factored Rate Per Unit = Total Charge of Usage Load / Number of Units in the Usage Load

For instance, in the first usage load of the above scenario, 125 units were loaded for a total charge of $2.50 (100 units at $0.00 and 25 units at $0.10). This means the factored rate for each unit in this usage load is $2.50 / 125, which is equal to $0.02.

The factored unit can be seen as the Price Per Unit on the generated invoice (Account > Statements & Invoices > Invoices), as shown below.

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