The variance between base rate billed during the course of the year vs scale-based rate based on total volume at the end of the year.
Scale can be based on:
•Percentage
•Dollar Amount
Volume can be based on:
•Cases
•Lbs/Kgs
•Purchases Amount
•FOB Amount (Contract Pricing)
The Overbase is used to help calculate the variance with the scale based rate.
The Rate can be calculated against one of the following:
•Number of Cases
•Lbs/Kgs (weight)
•Purchases Amount
•FOB Amount (Contract Pricing)
Example:
