A master has two colour machines with a minimum volume for both black and colour. All unders and overs are clawed back at the current rate (AUC). There is a minimum of 10,000 pages for black and 2,000 pages for colour.
The first machine has opening balances of 25,000 black and 10,000 colour, with reads received of 29,000 black and 11,500 colour. The second machine has opening balances of 50,000 black and 8,000 colour, with reads received of 53,000 black and 9,000 colour.
Once jobs have been created for the two children and the master, they will appear as follows:
We can see that there were 3,000 unders pages for black. As there were colour overs, there are no amounts billed on the master, and the 500 overs are just tracked. The total for the master as a whole is 10,000 X 0.01 + 2,500 X 0.1 - 350.00 ex tax.
The following month, the first machine receives reads of 36,000 (7,000 pages) black and 12,300 (800 pages) colour, and the second machine receives reads of 58,000 (5,000 pages) black and 9,400 (400 pages) colour. Once jobs have been created for the two children and the master, they will appear as follows:
We can see that some of the unders charged in the first month for the black meter are clawed back in the second month. There is no clawback for the colour meter as overs were charged in the first month, and the contract is set to only clawback unders.
The total for the master as a whole is 12,000 X 0.01 + 2,000 X 0.1 = 320.00, less the 2,000 black overs.
When reducing overs we:
▪Reduce unders (if it’s a master),
▪Increase standard billing.
For black we add (-2,000 X 0.01 – 2,000 X 0.01 + 2,000 X 0.01) = -20.00
Overall we bill 320.00 – 20.00 = 300.00 ex tax.