The Rate is the amount charged for an Item. The Customer Commercial Contract Manager (CCM) uploads a Rate Table for all items on the Supplier’s Contract. The Supplier’s Contract cannot be made active until rates have been uploaded.
A rate is specified for each item within each Category and Zone. This is necessary because the rate may vary between Categories or per Zone (e.g. more expensive in a rural Zone than in a metropolitan Zone).
Each Supplier Contract can be set to either apply the current rate for Items or the rate in effect at the Start Date on the order.
Any changes made to the Rate Table will only apply to Orders created after the modified Rate Table is uploaded and attached to the Contract. Within the Rate Table you can also specify a date for the new rate to take effect (Effective From date). The modified rate will apply to new Orders created after that date.
The Rate Type determines how the rate is applied when the Customer is itemising an Order or when the Supplier is actioning the Order or claiming for payment. The following rate types are used in ConSol:
- Fixed (F)
The rate for this Item as set in the Rate Table cannot be changed during the creation or processing of an Order. The rate can only be changed by updating the Rate Table that is attached to the Contract.
- Capped (C)
The rate for this Item as set in the Rate Table can be changed to a lower value during the creation or processing of an Order. The rate cannot be changed to a value higher than the “cap” set in the Rate Table.
- Variable (V)
The rate for this Item as set in the Rate Table is only an estimation of the actual cost. Typically it is used for items where the exact cost is not known until the Supplier is selected. The rate can be set by the Customer when the Order is created. The Supplier cannot edit the cost of Variable Rate item directly. Instead, on a Variation request or Claim for Payment they can set the quantity of the original item to zero and add a new instance of the item for which they can set an alternative rate.
- At Cost (E)
The rate for this Item as set in the Rate Table is only a guideline. Typically this Rate Type is used for a high turnover Item where the rate changes often. The Customer does not know what the rate will be when the Order is created. The Supplier can set the rate for At Cost items when they request Variations or submit Claims for Payment.
- Percentage (J%)
J% is NOT a Rate Type – it is a Unit of Measure and can be applied against any of the Rate types. The rate for items with a J% UOM is used to calculate the value of the J% item as a percentage of total order costs. For example, if the rate for an item is $10 and total value of other items is $100, then value of J% for that Item is 10 (in other words 10% of the total Order value).
While some item rates can be modified when submitting a Claim for Payment, once the claim has been accepted and proceeds to the Invoice stage, none of the item rates can be changed.