A carrier has an agreement with a shipper that starts on January 1 for fuel price as 5% of the base freight. The fuel surcharge is pegged to the current price of 3 USD a gallon. The fuel surcharge…

Question

Options

• AUse an index table for the fuel surcharge charge item.
• BUse the rating amount or a standard rate table for the fuel surcharge.
• CUse a rate table for the fuel surcharge with calculation date as a scale.
• DUse a determination rule for the index rate table.

• A
  63% (19)
• B
  23% (7)
• C
  13% (4)

Explanation

In SAP Transportation Management, fuel surcharges pegged to a reference price (here, $3/gallon) and subject to proportional change require an index table (A) because index tables are specifically designed to track external price indices over time, automatically adjusting charges proportionally when the fuel price changes on the calculation date. A determination rule (D) is also required because it tells the system which index table to apply when calculating the surcharge - without it, the system has no logic to locate the correct index table for the charge item.

B is wrong because a standard rate table or rating amount handles fixed or manually-tiered rates, not proportional index-driven changes tied to an external price reference. C is wrong because using a rate table with calculation date as a scale would require manually entering discrete rates for each date period - it cannot automatically compute proportional changes based on a live fuel price index.

Memory tip: Think "Index = automatic proportional tracking" - any time a charge is pegged to an external price and must float proportionally, you need an Index Table (to store price movements) + a Determination Rule (to point the system to that table). Rate tables are for static lookups, not live index tracking.

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