Defining Charges › Defining Charge Elements › The Chargeback Algorithm

The Chargeback Algorithm

The chargeback algorithms used by CA PMA Chargeback are defined by Version and ORD Type, which are in turn defined by your Chargeback Administrator. An algorithm is a formula used to calculate a charge. Each algorithm is associated or owned by a charge element. All calculations start with the charge unit definition. In its simplest form, the chargeback algorithm is:

	Charge          Charge
	Unit  * Rate  = Element
 |       |      |
 |       |      --User-defined field that holds the
 |       |        result of the calculation
 |       |
 |       --Can be either simple or conditional
 |
 --Can be simple or complex

where:

Charge Unit

Defines a chargeable resource. It can be any quantitative field. A charge unit can be:

• Simple: An existing ORD Element (field) contained within an ORD. That is, a numeric element from the incoming ORD record used in the chargeback algorithm. Any quantitative field in the incoming ORD record can be designated as a charge unit, and hence a chargeable resource.
• Complex: The calculated result of two or more existing elements (fields) defined within an ORD that is identified by a user-defined name and prefixed by @. Complex Units or an existing field and a constant are defined on the Charge Units Entry panel shown in Charge Units Entry Panel.

  Charge units, both simple and complex, can also be normalized. That is, have a weighting factor applied that serves as a charge unit adjustment factor when a conditional test is applied that results in a true or false condition. Normalization factors can be entered via the Charge Elements Entry Panel using F8 which takes you to the Normalizer Entry panel shown in Normalizer Entry Panel, or by selecting the Normalizers option on the Cbdefs pull-down and following the pathway to the Normalizer Entry panel shown in Normalizer Entry Panel. A normalizer's qualifiers are entered using the Qualifier Entry panel shown in Qualifier Entry Panel.

Rate

A user-defined charge per unit. Rates can be:

• Simple: A constant (the default rate)
• Conditional: When different rates are applied to a unit based on its qualifier (a true or false condition based on the contents or range of a unit)

Charge Element

A user-defined element (chargeable resource) that holds the result of a chargeback algorithm (the charge). A charge element is always associated with a charge unit.