ORMB Rate Schedule Explained with a Simple Tiered Pricing Example

Imagine your bank charges you less per transaction when you do more transfers. Sounds simple, right? But when you try to implement this in ORMB, it’s not just about applying a rate -you need to understand tiering, rate components, and how values flow step by step.

Let’s break this down using a simple, real-world wire transfer example.

The Business Scenario

A bank charges corporate clients for wire transfers based on monthly usage.
The rule is straightforward:
The more transactions a client performs, the lower the per-transaction fee.
This is a classic volume discount model — very common in banking and billing systems.

The Pricing Logic

Here’s how the pricing is defined:

0–50    → 500 per transaction  
51–200  → 350 per transaction  
201+    → 200 per transaction  

This uses THRESHOLD (THRS) tiering.

That means:

• One single rate applies to the entire transaction count
• The system does NOT split calculation across slabs

So if a client performs 150 transactions:

• The rate is 350
• And all 150 transactions are charged at 350

Not like this:

• First 50 at 500 ❌
• Next 100 at 350 ❌

That would be STEP tiering, which is a completely different logic.

One Simple Example

Let’s take a real case:

• Transactions in a month = 150
• Applicable rate = 350

Now calculation becomes:

• Wire Fee = 150 × 350 = 52,500
• GST (18%) = 9,450

Final Amount : Total = 61,950 

That’s it — no complexity at business level.

Now Comes the Real Question

So far, everything looks simple. But here’s where it gets interesting:

• How does ORMB actually calculate this internally?
• How does it know the transaction count?
• How does it pick the correct tier?
• And how does it combine everything into a final bill?

Now that we understand the business logic, let's see how ORMB brings it to life internally. Don't worry if you're new to ORMB — we'll walk through each concept as it appears.

---

First, Meet the Building Blocks

Before diving into setup, you need to understand the core concepts that drive how ORMB calculates a charge. These aren't random terms — they form a clear hierarchy, and each one has a specific job.

The Hierarchy at a Glance

Rate Schedule
    └── Rate Version (effective date)
            └── Rate Component (actual calculation steps)

Think of it like a folder structure:

• Rate Schedule is the folder
• Rate Version is a dated snapshot inside that folder
• Rate Components are the actual files — the real calculation steps

The Building Blocks Explained

Step 6 — Configure Rate Definition

Before ORMB can use your Rate Schedule for tiered pricing, it needs to know how the tiering works. That's what the Rate Definition is for.

The Rate Definition is linked to the Rate Schedule and tells ORMB the type of rate being applied — Flat, Tiered, or Threshold.

Navigation: Main Menu → Rates → Rate Definition → Add

Step 7 — Configure Tiering Criteria

The Tiering Criteria defines what to measure when deciding which tier applies. It holds the SQI and acts as the reference point for the tier lookup in RC 20.

Navigation: Admin Menu → Tiering Criteria → Add

Step 8 — Configure Pricing at Account Level

Now we assign the actual pricing to the customer. This is where the tier ranges and their rates are defined, and it's linked directly to the account.

Navigation: Pricing Management → Pricing → Add

Tier Rates defined inside Pricing:

Step 9 — Create the Billable Charge

The Billable Charge is what triggers the rating. It represents the actual usage for the month — in our case, 150 wire transfer transactions.

Navigation: Main Menu → Billing → Billable Charge → Add

Think of the Billable Charge as the input to the rating engine. It says — "this account consumed 150 wire transfer transactions in January." ORMB takes this, runs it through the Rate Schedule, and produces the bill.

Once saved, the billable charge sits waiting — ready to be picked up when a bill is generated for this account.

Step 10 — Generate the Bill

With everything in place — Rate Version, Rate Components, Pricing, and Billable Charge — it's time to generate the bill and see ORMB do its job.

Navigation: Main Menu → Billing → Bill → Add

Select the account and trigger billing. ORMB will:

1. Find the billable charge for this account
2. Pick up the Rate Schedule from the pricing
3. Run the 4 Rate Components in sequence
4. Produce the bill segment with calc lines

What the Bill Calculation Lines look like:

RC 10 is visible in the calc lines because we set Retain on Bill Calc Line when configuring it. RC 20 is FCPO and worked silently — but RC 10 gives you full transparency on the count that drove the calculation.

Tiered pricing in ORMB isn't magic — it's just the right setup in the right order. Once the pieces click, the system does exactly what you'd expect. And the bill speaks for itself — 61,950, calculated to the penny.