Minimum Guarantee

Minimum Guarantee

The Minimum Guarantee contract term type is based on usage or charges. It may be a minimum dollar amount of usage, a minimum number of occurrences, or a minimum number of minutes that the customer has agreed to use in each bill period.

The Minimum Guarantee contract term type can have Contract Term Details. Products are considered only when the term units is Currency.

Note

Taxes and surcharges are not included in the calculation toward the terms of the contract. These include products with the following USOCs: SLCRES1, SLCRES2, SLCBUS1, SLCBUS2, SLCCOIN, PICCRES1, PICCRES2, PICCBUS2, PICCBUS2, PICCCOIN, E911.

The service numbers on which the usage is based are associated with the Minimum Guarantee term, when the contract is assigned to the customer.

The Minimum Guarantee contract term type can be prorated. For example, if Prorate Usage is selected on the New Contract Term window, when the contract is assigned to a customer in the middle of a bill cycle, the customer only needs to fulfill that percentage of the contract. Without prorating usage, a customer would be required to use the full contracted amount in less than the time unit designated in the contract (such as needing to use the full $100 worth of usage in only a couple of days' time for a contract based on months).

Selecting this type displays the configuration form.

• Configure the applicable fields.

  ID	The unique system-generated identifier of the Contract Term.
  Type	The Contract Term Type that you selected.
  Value	This is the number of units that the customer has agreed to maintain for the duration of the contract.
  Units	Determines what units the number in Value represents: Minutes, Occurrences, or Currency. Note Once the Contract Term has a Penalty defined, this field is locked to ensure that the Penalty Type/Units combination works correctly.
  Ramp-Up Days	This is the initial period, in days, following the assigned Start Date that the customer is not penalized for failing to meet the conditions. Ramp-up days are also applied when a contract is renewed.
  Include Children	Selected: In a corporate account, the services and usage from child accounts are counted toward meeting the contract conditions. Cleared: In a corporate account, only the current account's services and usage are counted toward meeting the contract conditions.
  Prorate Usage	Selected: If the contract start date or end date is within a current bill period, the terms of the contract are prorated. Cleared: No prorating is performed and the full terms of the contract must be met to avoid a penalty. Note: Select this option to avoid improperly charging a penalty.
  Evaluate Over ... Bill periods	Specify the number of bill periods to consider.
  Detail Handling
  	The View Contract Term Details button opens the Contract Term Details window for Minimum Usage Guarantee Term and Maximum Usage Guarantee Term Types. The finished setup is indicated in this area when you're done.

Penalties

Finish by setting up applicable penalties:

• Fixed Fee - can be used with all units

• Minimum Fee - limited to Currency units only

• Multiplier Fee - limited to Minutes and Occurrence units

  See Penalties.

See also:

Minimum Guarantee with Fixed Fee (Example)

Minimum Guarantee with Minimum Fee (Example)