Penalty
Calculates penalties for SLA breaches in Statistics, Events, and Incidents, with options to configure applicability (percentage, fixed amount, or cost points), metrics, configuration type (value or time-bound), and penalty type (default, priority, or vendor).
Users can also define service cost, maximum cost, allow partial penalties, handle multiple downtimes, and override costs from asset properties.
Add Penalty
Go to the Penalty Configuration page and click Add (top-right corner).
Enter a Name and Description for the penalty configuration.

Label
Action
Description / Example
Name*
Enter text input
Unique identifier for the penalty rule
Example: Asset SLA Penalty Report
Description*
Enter text input
Brief explanation of the penalty configuration
Example: Penalty applied when incident downtime exceeds defined SLA thresholds.
Module
When creating a new penalty configuration, the first step is to choose the module. This choice determines the type of SLA penalties you are configuring. The system dynamically updates the configuration fields based on the selected module.
Statistics
Defines penalties based on service availability or performance statistics. Penalties trigger when thresholds (e.g., uptime %, latency) fall below agreed SLA levels.
Events
Applies penalties when specific system or network events occur (e.g., access point down, repeated SLA breaches). Event type selection drives the penalty conditions.
Tickets
Calculates penalties for SLA breaches in incidents. Penalties can be configured by default, priority, or vendor, with options for maximum cost, accumulation, and cost overrides.
Configuration Fields

Field
Description
Use Case / Example
Penalty Applicability*
Defines how the penalty amount will be applied.
Options include: Fixed Amount, Percentage of Service Cost, or Points of Service Cost.
Fixed Amount
A flat penalty value applied for SLA breach.
If downtime exceeds SLA, apply a penalty of $200 per incident.
Percentage of Service Cost
Penalty is calculated as a percentage of the configured service cost.
For a service cost of $1000 and a penalty rate of 15%, the penalty = $150.
Points of Service Cost
Deducts cost points instead of currency. Useful where penalty tracking is non-monetary.
Example: Deduct 5 service points for every breach.
Statistics / Event Type*
Defines the measurement domain for penalties (Availability, Performance, etc.).
Example: For network SLA, select Availability. For server load SLA, select Performance.
Availability
Measures uptime against defined thresholds.
Example: Penalize the vendor if uptime drops below 99.5%.
Performance
Measures efficiency metrics such as latency, throughput, or error rates.
Example: If latency exceeds 200ms, a penalty is triggered.
Statistics (Dropdown)
Lists specific statistics for SLA calculation. Varies by module.
Note: This field only applies when the Statistics and Events module is selected.
Network Availability:
Tracks % of network uptime. Example: If network availability falls below 98%, apply SLA penalty.
Access Point Down:
Penalty condition triggered when the access point is unavailable. Example: Apply a penalty if the access point downtime > 2 hours.
Breach Count:
Penalty condition based on the number of SLA breaches. Example: If breach count > 3 in a week, apply a penalty.
Metric Type*
Select from the drop-down.
Note: This field only applies when the Tickets module is selected.
Defines the SLA metric used to calculate the penalty.
Example: Resolution Metric. Metrics are preconfigured in SLA → Metric, and represent measurable SLA targets (e.g., Resolution within 8 hours, Response within 30 minutes).
Configuration*
Defines how the penalty is calculated: Time Bound or Value.
Example:
Time Bound → calculate penalties per downtime hour; Value → penalties based on breach count.
Time Bound
Penalty calculated on elapsed downtime (minutes).
Example: $100 penalty per hour of downtime.
Value
Penalty calculated on occurrence count.
Example: 5% penalty if the response SLA is breached more than 5 times.
Type (Tickets Only)
Defines penalty logic for tickets: Default, Priority, or Vendor.
Example: Priority → higher penalties for high-priority incidents.
Default (Type)
Applies the penalty to all tickets equally.
Example: Flat penalty of $50 per breach.
Priority (Type)
Applies penalties based on ticket priority (e.g., Critical, High, Medium).
Example: $500 penalty for Critical, $200 for High.
Vendor (Type)
Penalties applied based on vendor accountability.
Example: If vendor SLA breached, apply agreed penalty. Select the appropriate vendor from the drop-down list.
Maximum Cost
Upper limit for penalty cost. Prevents unlimited charges.
Example: Cap penalties at $10,000 per month.
Accumulate Each Cost
If enabled, penalties accumulate across multiple breaches.
Example: If three breaches occur, apply a penalty for each breach instead of only once.
Override Cost from Asset Property
Pulls penalty cost directly from asset configuration instead of manually entering it.
Example: For a server asset with cost = $2000, penalty percentage will auto-calculate using this value.
Multiple Downtime
Allows penalties to be applied multiple times for repeated downtime events within the SLA window.
If downtime occurs 3 times in a day, penalties apply for each instance separately.
Target
Target Configuration | Basic Details
Field
Description
Example / Use Case
Operator
Defines the condition for evaluating SLA data.
Options include: Range (From – To), Less Than, Less Than or Equal, Greater Than, Greater Than or Equal, Equal To, Not Equal To.
Set “Greater Than 60 mins” downtime → penalty applies if downtime exceeds 1 hour.
Value
Specifies threshold values for the selected operator.
From: 98, To: 99 → penalty applies within this downtime range.
Penalty-Type–Specific Fields
1. Fixed Amount

Field
Description
Example / Use Case
Credit
Defines a fixed penalty amount for the breach.
$500 penalty for downtime between 98-99.
Additional Credit
Adds an extra fixed penalty when specific conditions are met.
An extra $200 penalty if downtime exceeds.
2. Percentage of Service Cost

Field
Description
Example / Use Case
For Each
Applies penalty repeatedly for each interval difference (except when operator = Range).
Penalty applies for every extra 30 minutes (Value/ Min) of downtime beyond SLA.
Credit (% Cost)
Percentage-based penalty is applied to the service or asset cost.
10% of $10,000 service cost = $1,000 penalty.
Additional Credit (% Cost)
Extra percentage penalty applied under defined conditions (not applicable with “For Each”).
An additional 5% penalty if the breach continues beyond 6 hrs.
3. Points of Service Cost

Field
Description
Example / Use Case
For Each
Applies penalty points repeatedly for each interval difference.
Deduct 10 points for every 1 hr of downtime.
Credit (Point Cost)
Penalty expressed in points, applied to the service/asset cost.
Deduct 50 points for SLA breach in P1 incident.
Additional Credit (Point Cost)
Extra penalty points added under specific conditions (not applicable with “For Each”).
Extra 20 points deducted if breach > 4 hrs.
Calculation
The system allows entering Sample Data to test how penalties are calculated based on the configured rules. The engine checks each condition in sequence, validates whether it is satisfied, and then applies the defined Credit (percentage, fixed, or points) to the Service Cost.
Example:

Service Cost: 12,000
Sample Data Entered: 96
Condition Checks (Step-by-Step)
When you enter a sample value (96 in this case), the system goes through each configured rule under Target and verifies if the value falls within the specified range:
Rule 1: Range 98 – 99
Check: Is 96 between 98 and 99?
Result: ❌ No → Condition Not Satisfied
Rule 2: Range 97 – 98
Check: Is 96 between 97 and 98?
Result: ❌ No → Condition Not Satisfied
Rule 3: Range 94 – 97
Check: Is 96 between 94 and 97?
Result: ✅ Yes → Condition Satisfied → Apply Credit = 20%
Rule 4: Less Than 94
Check: Is 96 less than 94?
Result: ❌ No → Not Applicable
Since only Rule 3 is satisfied:
Formula: (Credit % * Service Cost) / 100
Substitution: (20 * 12000) / 100
Penalty Amount: 2400
Result Summary
Effective Credit Percentage Applied: 20%
Final Penalty Amount: 2400.0
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