Drop Rates

Note: If you do not compensate accounts on a per-address basis, you can skip this option.

A drop credit is a flat fee paid to an account for each home address delivered, without regard to the number of pieces that are delivered to the address. Drop credits are not used with single copy routes.

Drop rates are associated with a product. Normally, the product with the highest drop rate determines the drop credit paid to the account, although product priorities can be established to override this calculation. For example, if a home delivery route delivered a daily publication and a TM product on a Saturday, the account would receive the drop credit for the publication or TM product, whichever was higher, or (if a priority was assigned) based on priority.

The Drop Rates option is where you define the daily drop rates. You must specify a product, but also may specify an account, route, district, zone, region, area, account class and account group. For each day of the week, you specify the GL account to use for the drop credit, as well as the credit code to use and the daily rate.

Drop credits are generated by the Create Drop Credits option (see the User manual).

To set up a drop rate:

1. In character Circulation, select Drop Rates from the Account Rates menu to display the Drop Rate Setup screen.

   
2. Select Add and complete the following fields.

   Field	Type	What to enter
   PRODUCT	setup	Specify the product to which these drop rates will apply.
   ACCOUNT ROUTE DISTRICT ZONE REGION AREA ACCOUNT CLASS ACCOUNT GROUP	setup	Optionally, use these fields to narrow down the list of accounts to whom these drop rates will apply. The most specific criterion will always be used. For example, if a region and an route are entered, the drop rates will apply only to the route. If a single account is entered, the rates will apply only to that account, no matter what else is entered in these fields.
   START DATE END DATE	date	Enter the date range during which these drop rates are valid.
   G/L ACCOUNT (SUN-SAT)	setup	For each day of the week, enter the GL account number to be used for this drop rate.
   CHARGE CODE	setup	For each day of the week, enter the charge code for the drop rate.
   RATE	decimal	For each day of the week, enter the per-address drop rate.

3. Select Accept to enter the bonus rate into the database.

4. Set up another drop rate, or press F4 and select Exit to return to the Setup menu.