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Detailed Description

Contribution Margin Calculations

Automatically Generated Charges

Contribution margins are calculated on a per charge basis. The contribution margin of a charge equals the total of charge minus the cost of providing the goods and/or service being charged for. Charges in Centre Bill are either automatically generated during invoicing or manually inserted by the operator of the system.

The contribution margin of automatically generated charges depends on the type of the charges. The types of charges generated by the invoice run can be grouped into four distinct types with regard to contribution margin calculations.

  • Once off charges
  • Recurring charges
  • Excess time charges
  • Excess data charges

Once off charges are configured as structures in the system with associated service cost. The contribution margin of a once off charge is the total of the charge minus the fixed cost of the associated charge in the structure configuration tree.

Recurring charges are generated by the invoice run on a monthly, quarterly or annual basis. Charge details calculations are based on the configuration of the customer's service. Each service has a set of associated service costs that are either inherited from the default configuration or manually adjusted for the instance of a service. The contribution margin of a recurring charge is calculated based on the total value of the charge minus the value of the fixed and overhead costs.

Services have associated service costs of variable charges, both for excess time and excess data. Contribution margin of excess charges are calculated based on the total value of the charge minus the value of the variable service cost.

Manually Inserted Charges

Manual charges are inserted by selecting a corresponding structure in the structure tree. Structures have associated service costs configured. The cost of a manually inserted charge is the fixed cost associated with the structure selected. If no fixed cost is configured for the particular structure, the system user will be required to enter the cost in order to commit the charge.