Fuel Rate Index Surcharge Setup and Application
Last Modified on 07/01/2026 10:36 am PDT
A Fuel Rate Index Surcharge is used to adjust pricing in response to fuel cost changes. Typically associated with a published index, such as the EIA (U.S. Energy Information Administration) diesel average, it allows companies to account for market fluctuations without frequently updating customer contracts. This article explains how to set up and apply a Fuel Rate Index in Navusoft. After the initial setup, rates can be easily maintained from the Rate Index Setup screen.
Rate Index Setup
Pathway: Setup > Services > Rate Index
The Rate Index Setup screen is used to configure index rates and define their corresponding fuel cost value. The screen is divided into two grids: the upper grid is for adding rate indexes, and the lower grid is for entering values tied to each index. During billing, the applicable rate is determined by the value’s start date in relation to the service date on the invoice.
Add Rate Index
Click the Add icon to create a new Rate Index for fuel costs. This will act as a container for entering rate index values as fuel prices fluctuate.
Add & Manage Rate Index Values
Once a Rate Index has been added to the upper grid, select it to open the Rate Index Value tab in the lower grid. Here, you can enter the index value (fuel cost) along with the Start Date indicating when it takes effect. New index values can be added over time to reflect changes in fuel costs.
Note: The system does not display an End Date for each index value. Instead, the Start Date of the next value automatically serves as the end date of the previous value's effective period. When a site is invoiced, the system will compare the service date to the start date of the rate index values. The corresponding value will determine the surcharge that applies.
Surcharge Setup
Pathway: Setup > Services > Surcharge
Surcharge Setup defines the surcharge amount that can be invoiced to a site, either as a flat fee or a percentage. This setup follows the logic outlined in the previous section, where the applicable surcharge is determined by comparing the service date to the start date of the rate index values.
Add Surcharge
Use the Add icon to create a new surcharge where the Type is set to a Rate Index option and a specific Rate Index is selected. This must be done before values can be associated.
Field Descriptions
| Field |
Description |
| Name |
The name of the surcharge.
|
| Surcharge Class |
Groups the surcharge into a class. When a surcharge is applied to a service, the assigned class will be displayed with it in a separate column/field.
|
| Type |
Select a Rate Index option from the Type drop down to define the calculation method used for the surcharge.
|
| Rate Index |
Select the appropriate Rate Index previously created for this surcharge. This field will only appear if a Rate Index option is selected in the Type field.
|
| GL Account |
Specifies the GL Account used to track revenue streams associated with the surcharge.
|
| Temporary Service GL Account |
If revenue from temporary services is tracked at the surcharge level, select the corresponding GL account it should be tracked under.
|
| Taxable |
Indicates if the surcharge is taxable.
- 'No' - surcharge is not taxable.
- 'Yes' - surcharge amount is included in tax calculations during billing.
- 'Tax Class' - taxed through the Tax Class identified in the Tax Class field.
|
| Tax Class |
Required field if 'Tax Class' is selected from the Taxable field.
|
| Exclude From Revenue Calculation |
Indicates if the Surcharge should be excluded from company's revenue calculations.
|
| Franchise Fee |
Indicates if the Surcharge is a Franchise Fee.
|
Define the Rate Index Values
After a surcharge for rate index pricing has been created, select it from the upper grid to enter the Rate Index Values in the lower grid.
Field Descriptions
| Field |
Description |
| ID |
System generated ID.
|
| Surcharge |
Identifies the surcharge that will be applied.
|
| From Quantity |
The 'From Quantity' fields establish threshold ranges that determine when a Rate Index value qualifies for the surcharge.
In the example above, the threshold ranges are:
- 0.00 - 2.50
- 2.50 - 5.00
- 5.00 - 7.50
|
| Value |
Specifies the amount to be applied, whether as a percentage-based surcharge or a flat fee amount.
|
Surcharge Group Setup
Pathway: Setup > Services > Surcharge Group
Surcharges cannot be applied directly to a site's billing settings. Instead, they must be added to a Surcharge Group, which is then assigned to the site. Once a rate index surcharge is created, it must be included in an appropriate surcharge group to take effect.
As with other setup screens, begin by selecting the appropriate Surcharge Group from the upper grid. Then, add the Rate Index surcharge to the Surcharges tab in the lower grid.
Service Code Setup
Pathway: Setup > Services > Service Code
Surcharges are individually assigned to Service Codes, while Surcharge Groups are assigned to Sites. For a Fuel Rate Index Surcharge to be applied during billing, the surcharge must exist in both places: it must be included in the Site's assigned Surcharge Group and also be assigned to the Service Code associated with the Site's active service.
Relationship of Surcharges and Service Codes
A Service Code can have multiple surcharges assigned, while each Site is assigned a single Surcharge Group. This structure allows Service Codes to define the full set of possible surcharges for a service, while Surcharge Groups control which of those surcharges are eligible for a given Site.
Relationship of Surcharge Group to Site's Active Service
Following from the example above, the site is assigned the Liberty w/ Fuel Surcharge-Rate Index, Surcharge Group. It also is receiving a service using the 10 Yard Trash Service, service code. When the site is billed, only the surcharges that are assigned to both the Service Code and the Liberty w/ Fuel Surcharge-Rate Index Group will be applied.
Add Surcharge Group to a Site
Pathway: Accounts > Customer Service Screen > Edit Site > Billing Settings [tab]
A Surcharge Group is assigned to a site from the Billing Settings tab within the Edit Site popup editor. Any updates to the surcharge or Rate Index values will automatically impact the site's billing in the next billing cycle. Expand this section to also see the Billing Workflow.
Application of the Fuel Surcharge Rate
Relationship Between Surcharge Setup and Rate Index Setup in
During the billing process, if a site is subject to a fuel surcharge, the system will first look at the Start Date and Value (fuel cost) in Rate Index Setup to determine based on the site's service date, which value applies. Once it has identified the appropriate value (in Rate Index Setup), it will then look at the 'From Quantity' and 'Value' columns for the surcharge to identify the surcharge amount to be billed.
Example Scenario: A site was serviced on February 25, 2025, and invoiced on March 15, 2025. Based on the service date, the applicable Rate Index value is 3.50. Because this value falls within the defined surcharge range of 2.50 to 5.00 (refer to the 'From Quantity' column), the system will apply the surcharge Value of 7.00.
How a Surcharge Qualifies for a Site Invoice (Visual)
Billing Workflow to Calculate the Fuel Surcharge Rate (Visual)
Related Articles
Surcharge Setup
Surcharge Group
Rate Index Setup
Service Code Setup
