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Example: Rolling window with the Apply Overage at the end of Smoothing Period option

This example demonstrates the functionality of the rolling window when the "Apply Overage at the end of Smoothing Period" option is selected, detailing how the window progresses and overage charges are applied.

This example shows how the rolling window works if you select Apply Overage at the end of Smoothing Period as the overage option.

With this option and the example scenario for rolling window , the window moves forward to the following month if there is no overage in a smoothing period.

The following table lists the usage for the customer in a year:

Month

Units in Plan

Usage

Month in Period

Current Usage Total

Overage

Action

Notes

January

500

700

January

700

0

None

No overage

February

500

200

January, February

900

0

None

No overage

March

500

333

January, February, March

1233

0

Move forward

No overage. The total usage (1233) is based on the usage during January (700), February (200), and March (333).

Because there is no overage in this three-month period, the window moves forward to the following month. The next smoothing period is February - April.

April

500

1000

February, March, April

1533

33

Reset

The total usage (1533) exceeds the base total (1500).

Extra 33 units ($3.3) are charged at the end of this period (February - April).

The window is reset at the end of this period and the next smoothing period is May - July.

May

500

600

May

600

0

None

No overage

June

500

1200

May, June

1800

300

None

The total usage (1800) exceeds the base total (1500).

Extra 300 units ($30) are charged at the end of this period (May - July). You cannot bill for the overage charge in June.

July

500

0

May, June, July

0

300

Reset

Extra 300 units ($30) occurred in June but the overage charge is billed at the end of this period (May - July).

The window is reset at the end of this period and the next smoothing period is August - October.

August

500

90

August

90

0

None

No overage

September

500

160

August, September

250

0

None

No overage

October

500

600

August, September, October

850

0

Move forward

No overage. The total usage (850) is based on the usage during August (90), September (160), and October (600).

Because there is no overage in this three-month period, the window moves forward to the following month. The next smoothing period is September - November.

November

500

750

September, October, November

1510

10

Reset

The total usage (1510) exceeds the base total (1500).

Extra 10 units ($1) are charged at the end of this period (September - November).

The window is reset at the end of this period and the next smoothing period is December.

December

500

1100

December

1100

600

Reset

Because the subscription ends in December, there is only one-month period on this window.

The total usage (1100) exceeds the base total (500).

Extra 600 units ($60) are charged at the end of this period.

Overage charges by service period

The following table lists the overage charges and their corresponding service periods:

Service Period Quantity Total
02/01/2015 to 04/30/2015 33 $3.3
05/01/2015 to 07/31/2015 300 $30
09/01/2015 to 11/30/2015 10 $1
12/01/2015 to 12/31/2015 600 $60