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Initially, the ratings system will take the destination entered in the transaction and attempt to find a rate covering that specific zone. If a match is not found, the system then attempts to place the destination within a zone hierarchy for either the current service or the carrier default.
Postcode 2020 (Mascot, NSW) has been entered into the transaction. Not finding a rate, the software will search for a containing postcode range for the current service. Not finding a postcode range, it will then try and find a containing postcode range in the default zone hierarchy for the carrier.
If it is found within a postcode range then the program will take the parent local zone and attempt to find a rate associated with that. Not found by the local zone it continues to move up the hierarchy trying successive levels until a match is found. This processing can start at any point so that the user may have entered "SYDNEY" as a local zone into the transaction.
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