The rating policies define settings for deficit rating, indirect rating, spot base rate, cost limits, and split rates. This policy also specifies split stops setting and multi-stop rating type.

Complete the following steps to manage rating policies:

1. L og in to the ONE system.

2. Click on Menu/Favs > Contract Mgmt > Rating Policies .
   The Rating Policies screen appears.
   
   

   

   
   
   

3. Fill out the following fields. Fields with an asterisk ( * ) are required.
   

   Field	Description
   Support Deficit Rating	Select this checkbox to enable the deficit rating. D eficit Rating is typically used to manage Less-than-Truckload (LTL) shipments. In the case of rates with steps, the system will always attempt to rate the shipment with the next band and pick between the least actual cost in the current band vs. deficit-rated cost with the next band. For Deficit Rating, the initial default is that it is not used. If Deficit Rating is configured, only two rating types will use Deficit Rating: Per CWT and Per Weight.
   Support Indirect Rating	Select this checkbox if an indirect rating is supported. Indirect Pricing is provided by carriers to SMC when they do not service certain areas, but hand over the execution of that leg to a secondary carrier. Typically, 3PL organizations/shippers do not interact with the secondary carrier. The primary carrier (based on the carrier's network) provides information to SMC, where the origin-destination lane is a direct or indirect lane. This information is stored in SMC's Carrier Connect service. When indirect pricing is used, it involves using a different base rate minimum (line haul minimum) and different discount rates. Indirect pricing is used for LTL Shipments only. By default, Indirect Rating is inactive.
   Split Stops By	Select a split stop option from the dropdown menu. The available options are City or Postal Code. Previously, for multi-stop shipments, stop-off rates were applied for each intermediate stop that the movement went through. In the scenario where a movement went through two different sites within the same city that were a few miles apart, stop-off rates were applied to both sites. Split Rate functionality comes into the picture to avoid counting the city as a stop and other stops within the city as Split Stops. For example, if you have a movement from Charlotte with two drop-off locations in Dallas and a final destination of Houston. The first stop in Dallas would be charged the Stop-off Rate, while the second stop-off would be charged the Split Rate. In some cases, shippers may charge $0 for the second stop in Dallas. If the rating preferences are configured to have Split Rates functionality based on Split Stops by value, stop count and split count are derived at the movement level. If the Support Split Rate is true based on the Split Stops by value, the number of stops and splits will be counted, and accordingly, the rating will be applied. If the value is City, the first stop in the city will count as a stop, and all additional stops in the same city will be counted as a split. The stop will be charged the Stop-off Rate and the splits will be charged the Split Rate.
   Multi-Stop Rating Type	Select a multi-stop rating type from the dropdown list. The available options are Continuous Move, Dedicated, or Direct. The Shipper can rate multi-stop routes differently from the direct routes as they can be more complex to execute. Contracts can be set up for Direct Rates or Dedicated Rates for the same lane and equipment. If the Rating preferences are configured to have multi-stop routes to be rated with Dedicated Rates, rates will be done accordingly.
   Skip Rerating On Approval	Select this box to skip the rerating calculation upon approval.
   Rerate on Pickup	Select this checkbox to rerate on pickup.
   Exclude DOT Break Time	Select this checkbox to exclude DOT break times.
   Disable Shipment/Movement Updates after Invoice is Approved	Select this checkbox to disable shipment and movement updates after an invoice is approved.
   Support Spot Base Rate	Select this checkbox if spot base rates are supported.
   Support Cost Limits	Select this checkbox if cost limits are supported. Cost Limits enable Hubs to represent the thresholds of transportation cost on a given lane. Whenever the movement exceeds those limits, an approval process will be triggered before the movement is tendered to the carrier. Based on Rating Preferences, Cost Limits are available as part of a Contract that will be hidden. If the Cost Limits are not available, approval workflow and the corresponding status fields on the Tender Plan Details screens are hidden. If the cost limits are enabled, the User should be able to configure the cost limits the same as Base Rates in a given contract. When a tender plan is generated while the cost limits are enabled, the corresponding cost limit value will be derived and will be presented on the tender plan details screen. If the cost limit value is lower than the current cost value, the tender plan will be waiting for approval from the supervisor. Until then the Shipper will not be able to tender the plan.
   Support Split Rates	Select this checkbox if split rates are supported.
   Chargeable Stops	Select the chargeable stops option from the dropdown menu.
   Enable Reverse Lane Rating	Select this checkbox to apply the reverse lane rating.
   Ignore Base Rate Min on Zero Rateware Cost	Select this checkbox to ignore base rate minimums on zero rateware costs.
   Support Taxes for Spot Cost	Select this checkbox to ap ply tax rates to spot rates.
   Include Dead Head Distance	Select this checkbox to include the deadhead distance in the total distance calculation for movements with no service level.