Rental Inventory


Inventory Control Menu -> Rental Inventory

Inventory Control Menu -> Inventory Inquiry -> Product Information window -> Rental Inventory Inquiry only

Purchase Order Menu -> Purchase Order detail -> Order Qty field window -> Product Information window -> Rental Inventory Inquiry only


Create New Rental Product
To enter new Rental items click the ADD button and proceed as outlined in Add Rental Products.
The ADD button is only active if the operator has role permission to Add Rental Inventory as defined in the "Miscellaneous" window of the as defined in the Security Role that is assigned in Operators.
Alternatively, Clone Rental or Sales Products may be used to copy equipment already setup. This is particularly useful to create a Re-Rent product with similar details to an existing Rental Product.

Refer to Inventory Structure for an outline on the setup flow for Rental Equipment.

Note: Rental equipment records can also be accessed from FL- Assets.

Modify Existing Rental Products
This program can be used in Change mode to view and update existing rental inventory records as follows.

Note: Most of these variable fields can also be updated using the Inventory Clean-Up utility.

PRODUCT NUMBER
Enter the existing rental product number, or barcode, or look for it in the Inventory Search window.

Detailed Product Inquiry
Once the product number as been selected click the INQUIRY button at the bottom of the screen to view the product history as outlined in Inventory Inquiry.


DESCRIPTION
This is the primary description of the item as it should appear on reports and invoices printed in the standard language.

If the product description is manually changed and this product is included in a Kit the operator is given the option to also update this description on the Kit but only if the original descriptions are an exact match.
If the product description is changed by the Export/Import Inventory Clean-up utility and this product is included in a Kit the description on the Kit is also updated but only if the original descriptions are an exact match.

Note: The product description can always be over-typed on the document.

ADDITIONAL DESCRIPTIONS
Additional product descriptions for product search and for printing purposes can be set up in the window as follows:
ALT LANGUAGE DESCRIPTION
If your firm services customers who require that their documents are printed in a different language such as French or Spanish, the Alternate Language feature can be activated from the Company Miscellaneous Parameters and specific customers can be flagged to use the alternate language in Customer Information.

This field can be used to set the alternate language description for this product.
The “Alternate Language Descriptions” assigned to Sales Products and to Rental Assets can also be updated from the Export/Import Inventory Clean-up utility.

If the product alternate language description is manually changed and this product is included in a Kit the operator is given the option to also update this alternate language description on the Kit but only if the original alternate language descriptions are an exact match.
If the product alternate language description is changed by the Export/Import Inventory Clean-up utility and this product is included in a Kit the alternate language description on the Kit is also updated but only if the original alternate language descriptions are an exact match.

Note: The inventory search does not use the alternate language description. This is just a printing feature for the reservations, contracts and invoices.


ALTERNATE DESCRIPTIONS
This window can be used to manually setup multiple alternate descriptions to be used in the product search utilities, as outlined in Alternate Descriptions.

SYSTEM GENERATED DESCRIPTIONS
This window can be used to view the optional descriptions that the system has generated. They are only used in the product search utilities, as outlined in System Generated Descriptions.

VENDOR #
This is the number of the primary vendor (supplier) from whom the item was purchased or from whom it will be re-ordered.
A window Vendor Search window is provided to view and select from existing vendors.

The Update Product Vendor utility can be used to update this primary Vendor # field for a selection of products.

Other suppliers with their pricing for this product can be setup in the Alternate Vendor Purchasing table.


VENDOR PRODUCT #
This is the supplier's identifying product number for purchasing or re-ordering this product. The Vendor Product# can be entered in the 'Description' Inventory Search to find this product.

This field is display only because the vendor product number is tied to Warehouse Receiving records.
If this number needs to be changed, use Update Vendor Product# And Description which also updates the corresponding Warehouse Receiving records correctly.


VENDOR DESCRIPTION
This is the vendor's description of the product.

The Clone Group Information to Products can be used to copy the description defined for the Group to the existing products within that Group, becoming the product Description and the product Vendor Description.


PRODUCT CLASS
Classes are used to define the rate parameters and the G/L posting accounts for product activity.
This is the Product Class assigned to this rental product, as setup in Rental Product Classes.
This display only.

To modify the Product Class on this product use the Update Class/Group/Vendor on Product utility, or Restructure Class/Group/Rates/Tag, and the change is tracked in the Audit Log.


GROUP #
This is the Group assigned to this rental product, as setup in Groups.
This is display only.

To change a group assigned to a product, use Update Class/Group/Vendor on Product or in Restructure Class/Group/Rates/Tag.
This is necessary in order to ensure that all product bookings made for this Group are properly maintained.
Any change in Group is tracked in the Audit Log.

Groups are used by inventory lookups, kits, product availability and reservation bookings.
Groups can be used to define rates for the products in that Group, so that rates do not need to be maintained on the individual products. This is only practical when all products in the Group use the same rate structure.
Groups can also be used to copy Descriptions, Safety Notes, Kits, Specifications, Costs, Weights, and Sales Lists, to the products within the Groups using Clone Group Information to Products.


METER TYPE
Tracking meter units used or blade usage is only applicable to NON-BULK items.
For a non-bulk item, select one of the following options:
  • Metered Item is checked if this product tracks meter units used such as hours or km, through contracts, maintenance, product exchanges, and rental returns.

    Overtime meter usage can be billed by the unit or by the shift. Refer to Rental Product Classes for further details.

    The Current Product Status Report can be used to list non-bulk products with the current meter count.
    For information on tracking Meter rollover or replacement on equipment refer to Update Meter Prompt/Hours.

    The Meter Units of the non-bulk rental equipment can also be tracked by the AEMP Telematics processing and updated from a "Cellutrak" import, where the captured 'Engine Hours' are converted to actual hours and logged as meter units on the product.

    The Meter fields include:


    METER READING
    This is the current meter reading.
    This will be updated as the equipment is rented, exchanged, put off or on rent, and returned, when the new meter reading is recorded.
    Window to view the meter information as outlined in Product Meter Information.

    The "Current Meter Reading" is reported on the Equipment Summary Report and the Rental Age Report Export.

    Automatic Meter billing up to this count will be generated when a contract with this asset is invoiced in the Cycle Billing process if the rental product has a meter rate structure defined and the “Bill Current Meter” feature is activated in the Company Billing Parameters.
    If the metered asset is out on more than one contract, then the meter units used will not be billed in the Cycle Billing.


    LTD METER READING
    This field tracks the total units used in the lifetime of the equipment.
    Window to view Meter History.
  • Bladed Item indicates that this product tracks blade usage such as diamond blades where the units decrease with use.

    METER READING
    This is the current blade reading.
    This will be updated when the equipment is rented, exchanged, put off or on rent, or returned, and a new blade reading is reported.

    Window to access the Product Blade Information as follows:

    CURRENT METER READING
    Enter the current blade reading.
    This will be updated when the equipment is rented, exchanged, put off or on rent, or returned, and a new blade reading is reported.
    CURRENT METER DATE
    This is the date of the latest recorded blade reading.
    INITIAL METER READING
    This is the original blade reading of the equipment.
    INITIAL METER DATE
    This is the date of the original blade reading.

    Finished?
    Click OK to accept the blade readings for the new equipment.

    LTD METER READING
    This field does not apply to blade items.
  • Not Metered is checked if there is no meter tracking for this product.
    The Meter Reading and the LTD Meter Reading fields are disabled.


INVENTORY
Check this box if the item is part of the rental fleet.

Uncheck this box if the item is not part of inventory (re-rental items or other generic items).
The item will still be included in Inventory Search but, will not be included as part of the total value when the Inventory Value Report is printed.
Non-inventory products can be included or excluded in the Rental Age Report.

Note: In Purchase Order entry when a Sales or Rental product is ordered that is not flagged as inventory, the option is provided to change this Inventory flag if the operator has Security Role Permission to Change Inventory Flag During P.O. Entry as set in the "Document Field Access".

Any change to this flag is tracked in the Audit Log.
Refer to Inventory Flag Defaults for information on how this flag is set when inventory is "auto-added" into Rental Inventory.

The Inventory Listing Report provides this flag in the filter selection and includes the value on the output.

Make/Model/Re-Order Info
Window to access the re-order information as outlined in Make/Model and Re-Order Information.

LIST PRICE MATRIX
Check this box to allow pricing for this product to be updated based on the pricing tables setup in Update List Price Matrix.
List Price Matrix Exceptions can be run to identify products that do not utilize matrix price updates.

Uncheck this box if pricing of this product should never be updated using the pricing matrix tables.


MARKUP %
The markup percentage will default from the Product Class selected for this item. Accept this default, or type in the correct markup percentage.
e.g. Enter a markup of thirty percent as 30.00

Alternatively, use the Markup Based on Margin Calculator window to calculate the Markup% from a margin amount.


LIST
The list price will calculate as the LAST PO COST * (1 + MARKUP % ).
Accept this selling price, or over-type with the correct price.
The list price will display on the screen when selling the asset on an invoice, but it can be over-typed as required.

Over-typing the List field will not cause the markup % to recalculate. Once the list price is accepted, changing the markup % will not automatically recalculate the List Price.

Note: To force the list price to be recalculated based on the current markup, first reset the List to zero. Then reset the Markup% to the new percent value.

Any changes made to the list price are tracked.
A window on the List field is provided to view Price Change History, as outlined in List Price Changes.

List Price Reduced by Percent of Revenue Formula:
The selling price of a non-bulk rental asset can be calculated on a base list price reduced by a percent of the revenue generated by the equipment during its rental life.
This feature is activated when a discount percent of revenue off list is set up by product group in Groups.
A maximum discount percent to limit how much the list can be reduced, may also be set.

When this formula is in use for a non-bulk asset, the value displayed in the List Price field is the discounted price.
Window to view the original base list price. If the base is adjusted, the List will be recalculated accordingly.


ALTERNATE LIST
This is an information field only, that can be used to track an alternate price.
e.g. List price in a different country.

The Alternate List can also be captured for Sales or Rental Inventory in the Inventory Clean-Up export for products.


KIT #
Enter the Kit to be displayed when this item is rented or look it up in the Kit Search window.
A Kit is a list of secondary items that generally accompanies a primary item. Only the primary item should be marked with the Kit number.
Kit items can be sold at no charge, full charge or a discounted amount.
e.g. If a Bomag Roller were sold, the Kit could contain various tools which generally are included at no charge.

Note: It is possible that the same item calling the kit is also included in the kit, however this structure can cause a loop to be created recalling the kit repeatedly.
If the kit must be setup this way, to break the loop on the document un-select the product the second time the same kit is presented.

The Clone Group Information to Products can be used to copy the Kit defined for the Group to the existing products within that Group.
Update Kit By Product may also be used later, to assign a kit to the product. This program can be used to assign a kit to several products at the same time.


SSL#
Enter the Suggested Sales List (SSL) to be displayed when this item is rented or look it up in the Suggested Sales List Search window.
The Suggest Sales List will recommend other items to be sold with this item.
e.g. If a sander were sold, the Suggested Sales List could contain several sizes of sandpaper.

Note: It is possible that the same item calling the SSL is also included in the SSL, however this structure can cause a loop to be created recalling the SSL repeatedly.
If the SSL must be setup this way, to break the loop on the document un-select the product the second time the same SSL is presented.

The Clone Group Information to Products can be used to copy the SSL defined for the Group to the existing products within that Group.
Update Suggested Sales List By Product may also be used later, to assign a SSL to the product. This program can be used to assign a SSL # to several products at the same time.


SHOW ON WEBSITE
Select one of the following options:
  • Select Yes if this product should be displayed on the web site.
  • Select No to prevent this product from showing on the web site.
  • Select System Default to apply the default display flag as set in Show on Web site Default in Global Portal Settings.

This flag to display the product on the web site applies to both the Portal as outlined in Portal Overview.

This flag can also be setup for products in Inventory/Division Settings.


BITMAP IMAGE NAME
Enter the image name for the picture representing this product on the website.
Flags in Product Classes and Product Groups can also be set to control products displayed on the website.

This image applies to both the Portal as outlined in Portal Overview and the Kiosk feature as outlined in Kiosk Shopping.

This image can also be setup for products in Inventory/Division Settings.


NOTES
Enter any instructions, comments or notes about this item.
This notes do not print out any where, but they do show at the bottom of the screen in Counter Worksheet, Sales Orders and Sales Order Invoices.

ON P.O.
The total quantity on open Purchase Orders is updated whenever a purchase order is entered or received against.
This field is display only. If this running total gets out of balance with the actual open Purchase Orders, it can be reset using Recalculate Qty On P.O.

Note: Any products on a Purchase Order that has been cancelled are not reflected in this count.
A cancelled P.O. is not included in the Rebuild Quantity on Purchase Order calculation or in the Open Purchase Order Report.

Window to view the Purchase Orders for this product as outlined in View Document Information.


ON CONTRACT
This is the total quantity on open contracts and leases.
The quantity on contract is updated whenever a contract is entered or returned.
This field is display only.
Window to view the Contracts for this product as outlined in View Document Information.

Note: If this running total gets out of balance with the actual open contracts, it can be reset using Recalculate Inventory Availability.
This utility also resets the On Reservation and On Sales Order quantities at the same time.


ON RESERVATION
The total quantity on reservation is updated whenever a reservation is entered, cancelled or converted.
This field is display only.
Window to view the Reservations for this product as outlined in View Document Information.

Note: If this running total gets out of balance with the actual reservation quantities, it can be reset using Recalculate Inventory Availability. This utility also resets the On Contract and On Sales Order quantities at the same time.


QUANTITY ON HAND
The total product quantity at all locations displays.
This field is display only.
To update the quantity displayed, assign the quantity to a product location in the Locations window.

Note: If the Quantity On Hand becomes out of sync with the total quantity at the locations, and needs to be reset, a warning indicator is displayed on the screen.
Click on the ? for an explanation and reset the On Hand quantity as instructed.
No audit record is generated.
The Verify Tag Qty = Loc Qty utility can be run to identify rental products where the quantity On Hand does not match the quantity on the Asset Tag Detail.


DATE COUNTED
This date is maintained automatically and reflects the last time a location quantity was updated for this product.
This is useful for monitoring accurate inventory counts.
It indicates that a quantity adjustment was made in Rental Inventory or in one of the Update Quantity/Location utilities such as Product Quantity Adjustment, Update On Hand Quantity by Product#, Inventory Count, or Auto Receive Non-Bulk Rental Item.

Date Counted by Location:

Window to view the dates last counted for each individual location as outlined in Dated Counted by Location.

DATE LAST MOVE
This date is maintained automatically and tracks the latest activity for the item, including the last date when this item was on a P.O., received, or on an invoice, contract, exchange, billing, or serviced on a W.O. It can be used to determine if there is recent activity, or no activity for some time.
It is updated when used as a part on a work order, but not when it is the make/model# being repaired.

Note: The Date Last Moved and Last Invoice# will not be updated if the document date is less than the current Date Last Moved, to prevent old transactions from back-dating the last moved information.

This date can be used as the preferred inventory sort in the Inventory Search window, when setup as the Non-Bulk Rental Primary Sort choice for a division in the Division Inventory Parameters.


ADJUSTED FIRST COST
This value is updated during the purchasing process for the non-bulk asset and can be updated manually as required.
It is used in the Time Utilization Report, Disposal Transaction Report and the Rental Age Report.

REPLACEMENT COST
Enter the cost each to replace this item if purchased new.
This is an optional field that will default from the Groups Replacement Cost value.

When this date is updated manually or updated by the Restructure Class/Group//Rates/Tag utility using the Product Cost Restructure option, a record is written to the Audit Log for "RSPF_REPLACEMENT", with date, operator, product, and cost values.

The Clone Group Information to Products can be used to copy the Replacement Cost value defined for the Group to the existing products within that Group.

Rental Value Check:
When a rental product has a Replacement Cost, the system is able to track the total value of rental equipment that a customer has out on rent at one time.
Only rental products that have a replacement value and belong to a Product Class that is flagged to be included in the Rental Value Limit in Rental Product Classes, are included in the value total calculated at Contract entry.

Customers can be assigned an optional Rental Value Limit in the "Credit Information" window of Customer Information.
Equipment Replacement Value Totals are checked against Customer Rental Value Limits in Contract entry and when source documents are converted to the Contract.

        The formula to calculate equipment Rental Value on the Contract is:
        Replacement Cost * Quantity on Contract * Rental Conversion Value
        
The Company Security Parameters control how the Rental Value Limit is utilized on the Contract, including whether to permit or prevent a customer from going over his personal Rental Value Limit, and what the allowable percent should be by which the customer can exceed his Rental Limit before he is actually prevented from doing further rentals of value controlled equipment.

Note: The Rental Value total includes equipment out on a Contract until it is entered on a Rental Return. This means that equipment that is Off Rent, On Delivery, and On Pickup, is still included in the customer's Rental Value total, as it is still his responsibility until it is checked back in.

Refer to Customer Information for details on this feature.

APPRAISAL VALUES
A window is provided to view the Appraisal Values for non-bulk rental assets.

AVG COST EACH
The average cost per unit is calculated using the average quantity cost from the Fixed Asset Tags.
This is a display only field.
Click on the icon to view any cost changes as outlined in View Average Cost Adjustments.

LAST PO COST
When the item is purchased, this field records the Last Purchase Cost.

L.C.F. - LANDED COST FACTOR
This factor is used to include the exchange, brokerage, duty, and freight, in the cost of an imported product.
The value displays as 1 if no L.C.F. applies to the product.

The factor will be used to convert the cost on the invoice (during Accounts Payable invoice entry) to the final purchase cost.
e.g. If the invoice unit cost of an item was $10.00 and the L.C.F. was 1.2, then the final unit price including brokerage, duty and freight would be $12.00.

This field is display only and is updated when inventory is purchased and either the costs are entered in the A/P Invoice, or the costs are updated in Warehouse Receiving.
Default Duty/Brokerage and Freight percentages can be setup for individual suppliers in Vendor Information.
The currency exchange rate is setup in Currency Codes.

The L.C.F. formula is:
LCF = Round((Exchange * Duty/Brokerage * Freight),4)

e.g. Exchange 57.53%, Duty/Brokerage 2%, Freight 3%
LCF = (1.5753 x 1.02 x 1.03) Rounded to 4 decimal places
LCF = 1.6550

Note: If required, the LCF can be updated through the Update Product Costs & Prices utility.


LANDED P.O. COST
When an item is purchased, this field is updated to track the last landed purchase cost.
It is display only.
The Landed Purchase Order Cost = Last P.O. Cost * Landed Cost Factor.

STATUS CODE
Specific products can be identified as NOT eligible for rental, for transfer, and/or for depreciation, causing an warning message to be displayed when an operator attempts to rent, transfer, or depreciate them.

Enter the appropriate code for this product, or select one from the Product Status Codes Search window.

Security can be setup to restrict operators from changing the product code.
To setup Security Roles and a password use the module name RSAR, and refer to Module Passwords.
For more information on this security feature refer to System Security Overview.

Note: An Override Reason is not required to change the Status Code.

Any change to the Product Status Code is tracked in Status Code Change History for RSPF02.

Note: If a Contract has been created for the "External Repair Customer" as defined in the Company Estimate & W.O. Parameters then any 'not available' for Rent flag on the Status Code is ignored.


BULK ITEM
This box is checked if the quantity for this product will be greater than 1.

This box is unchecked if the quantity for this product will be 1. This is appropriate for serialized equipment.

This field cannot be accessed. Use Change Bulk Status if required.


MULTIPLE TAGS
If Bulk Item is not checked there is only 1 Fixed Asset Tag allowed for a non-bulk product, and this prompt is skipped.

If Bulk Item is checked and multiple Fixed Asset Tags are required this box is checked.
A new fixed asset tag is generated for each new purchase when entering the invoice into Accounts Payable.
Multiple fixed asset tags enables the date acquired, amount and quantity to be stored separately for each purchase. This makes it simple to track the additions to the rental fleet, and depreciate each purchase separately.
This box cannot be unchecked if multiple tags exist for the product.

If Bulk Item is checked, and multiple Fixed Asset Tags are not required this box is unchecked.
This is useful for smaller bulk items such as air hoses, when all quantities are then included on one Fixed Asset tag.

ASSET TAGS
A window is provided to access the Fixed Asset Tags as outlined in Asset Tag Detail.

Find Rental Inventory By Serial# can be used to review serial numbers for bulk and non-bulk Rental products.
Verify Asset Tag Qty = Location Qty can be used to identify quantities discrepancies between the Tag total and the On Hand total.
Update Asset Tags can be used to update some of the tag data and provides access to both the Asset Tag Export and Asset Tag Import.


FILE ATTACHMENTS
Multiple external documents or images can be associated with this product when setup in the File Attachments window.

This field is disabled if there is no attachment directory defined in Company Miscellaneous Parameters.


RENTAL INFORMATION
This window can be used to access additional product details including a conversion factor, rental rates, and security deposit, as outlined in Rental Information.

BARCODES
Skip this window if your firm does not use barcodes on this product, or use this window to setup barcodes for the product as outlined in Barcodes.

SAFETY NOTES
Skip this window if the safety notes do not apply, or use this window to define safety notes as outlined in Safety Notes.

The Clone Group Information to Products can be used to copy the safety notes assigned to the Group to the existing products within that Group.
Any existing safety notes for the product Group are also included for the new product.


SPECIFICATIONS
Window to access and update specifications for this product that can be referenced during contract entry in the window on the product description field, as outlined in Equipment Specifications.

The Clone Group Information to Products can be used to copy the specifications assigned to the Group to the existing products within that Group.


FINANCING
Skip this window if lease or finance information is not required for this product, or use this Financing Options window to setup the payment information in either of the two financing schedules methods provided.

Export/Import Asset Financing Schedule:
The icon beside the Financing window in Rental Inventory accesses the Asset Financing Export/Import tools that can be used to import Financing data into the Asset Financing Information table for non-bulk equipment.
This configuration icon is only enabled when focus is on the 'Product Number' field before the product number has been entered.


POSTING ID fields
These three fields only apply to non-bulk rental equipment, and only appear if the Posting by Inventory by Customer Type processing has been activated in the Support Application Parameters.
The Posting ID codes, to be assigned to all non-bulk rental equipment, must first be setup in Posting Identifications. When non-bulk rental equipment is rented or sold, the current Posting ID is then updated.
An audit trail in Posting ID Changes tracks changes to the Posting ID codes by product.

This processing also facilitates the posting of revenue and expenses for non-bulk rental equipment, to different revenue and expense G/L accounts by product, according to the type of customer.
Refer to Inventory Posting Identification Overview for setup.

The prompts for the product's Posting ID codes are:

CURRENT POSTING ID
This is always the Current Posting ID code for the product, and is updated when the product is added, sold, or rented, at the time the invoice is created.
The Posting ID Search window is provided to view and select from valid ID codes.
RENTAL POSTING ID
This is the Posting ID code to be assigned as current when the product is rented.
SALE POSTING ID
This is the Posting ID code to be assigned as current when the product is sold.

Note: These fields are disabled for bulk rental products.


INACTIVE
Uncheck this box if this is an active product that should always appear in the Inventory Search.
Check this box if this product is no longer part of your fleet and should only appear in the Inventory Search when the 'Include Inactive' filter is checked. Confirmation is required.

This flag can also be set by the Inventory Clean-Up tool.


Finished?
Click ACCEPT to accept this product.

MISCELLANEOUS RENTALS

Occasionally, there may be the need to rent an item that is not setup in the inventory file. This requires setting up a special product MR - Miscellaneous Rental, and using this item in a special way.

Note: This item should never be used to sell an item, since the posting to the General Ledger will be incorrect.
Instead, use MS - Miscellaneous Sale product #. See Sales Inventory - Miscellaneous Sales for details.

During contract entry, when prompted for product number - type in MR then over-type the words MISC RENTAL with the actual description of the item being rented. This allows the proper product description to appear on the contract and invoice, without having to setup a separate product number. Rates must also be entered. This must be done in a special manner. See below:

Step 1) In Rental Product Classes - setup:

        PRODUCT CLASS    299
        DESCRIPTION      MISC RENTAL ITEM

                          G/L Acct  Account Description
                          --------  -------------------
        COST OF GOODS SOLD    4500      COST OF RENTAL EQ. SOLD
        REVENUE ACCOUNT       4100      RENTAL REVENUE
        INVENTORY ACCOUNT     4500      COST OF RENTAL EQ. SOLD
        SALES OF RENTAL       4090      SALE OF RENTAL EQUIPMENT

The Cost of Goods Sold and the Inventory Account should be set to the same G/L Account, in case someone accidentally uses the MR - Miscellaneous Rental product when selling something. This prevents any impact in the G/L, since the same account will be debited and credited.

Step 2) Using Rental Inventory, follow this setup:

        PRODUCT #       MR
        DESCRIPTION     MISC RENTAL     (this description will be over-typed)
        BULK ITEM       Y
        PRODUCT CLASS   299             (see above for explanation)
        VENDOR #        1               Unknown vendor
        AVG COST EACH   0.00
        PRICE           0.00
        MULTIPLE TAGS   Y               (In case someone does sell this item)
        INVENTORY       N               (This is not a real product & it should
                                         not appear on inventory lists or value
                                         reports)
        RATE BOOK       N               (This is not a real product)
        LOCATIONS       99999.00        Enter a generous quantity at each
                                         location, since the quantity will only
                                         be decreased with each sale or repair.
        FIXED ASSET TAGS Y              Enter 1 tag with zero costs on it.
        RATES            Y              Enter your basic rate structure.
                                         Assign your most typical rates. Do
                                         NOT leave them at zero.

RATES ON MISC RENTAL ITEM
Setup the rates on the Miscellaneous Rental item, using your most typical rate structure. For the rate amounts, use your most typical rate. See the example below:

CODE DESCRIPTION            TO HOURS  RATE HOURS       RATE
---- -----------            --------  ----------       ----
2    4 Hours                    4.00                    .60
3    Daily                     48.00       12.00       1.00
5    Weekly                   252.00       84.00       4.00
7    Month                   9999.00      336.00      12.00

MISC. RATES CALCULATION
When this item is entered on to a contract, staff will override the rental rate displayed with the correct rate for that item.
For example, if a heater was rented for $5.00 a Day, staff would override the $1.00 daily rate with $5.00.
Then a ratio is used to calculate the Weekly or Monthly rate, if the equipment remains out longer.

     Misc Rental - Rates   Heater Rates
     -------------------   ------------
                    1.00           5.00     Ratio is 5:1
                    4.00          20.00     $4.00/week x 5 = $20
                   12.00          60.00     $12.00/month x 5 = $60.00

RATE CALCULATION
The rate calculation examples use these assumptions:

The rental charge is calculated by executing these steps:

  1. Using the Calendar, the billable hours is calculated as the total number of hours that the equipment has been out on rent, less the number of off rental hours.
  2. To determine which rate applies in the rental rate structure for that item, each rate from lowest to highest Rate Code is considered to determine where the billable number of hours applies.
    Using the example above, the Daily rate applies up to 48 hours, the Weekly rate applies up to 252 hours (3 weeks), after which the 4 Week rate applies.
  3. The general rule is: The billable hours is divided by the Rate Hours then multiplied by the Rental Rate to equal the Gross Rental Charge.
    The Gross Rental Charge less previous invoice charges equals the Net Rental Charge.

    When the Billable Hours are less than the Rate Hours, the Rental Rate amount is charged as the Gross Rental Charge.

  4. Rate Optimization ensures that the next cheapest rate will be applied, where rates are irregular.
    For example: if the rates were $ 10 a day, $25 a week, the software would charge the weekly rate $25 for the third day and not $30 (3 times the daily rate).
  5. Minimums are applied when the Gross Rental Charge is less than the minimum.
    For example: if the Minimum is $ 25, and the daily rate is $10 then the Minimum would be charged until the third day.

Examples of Standard Rate Calculation:
Billable Hours / Rate Hours * Rental Rate = Rental Charge

An item rents for:

                     $  60 a Day
                     $ 240 a Week
                     $ 720 for 4 Weeks

Rental Period Is 1 Day:12 hours / 12.00 * $ 60.00 = $ 60.00

Rental Period Is 3 Days:3 days * 12 hours / 12.00 * $ 60.00 = $ 180.00

Rental Period Is 1 Week:7 days * 12 hours / 84.00 * $ 240.00 = $ 240.00

Rental Period Is 2 Weeks:14 days * 12 hours / 84.00 * $ 240.00 = $ 480.00

Rental Period Is 4 Weeks:28 days * 12 hours / 336.00 * $ 720.00 = $ 720.00

Rental Period Is 8 Weeks:56 days * 12 hours / 336.00 * $ 720.00 = $1440.00

Examples of Standard Rate Calculation using Overtime:
The A.R.A. Overtime is defined as:

 6 overtime hours in a Day
 5 overtime days in a Week
20 overtime days in a Month with 5 Days in a Week

The rental rates for an item are:

                     $  60 a Day
                     $ 240 a Week
                     $ 720 for 4 Weeks
DAILY RENTAL: (Overtime Hours in a Day = 6)
Each overtime hour is charged at 1/6 of the Daily Rate. After 6 hours the Daily rate is charged.

Billable Hours is 15 hours = 1 Day + 3 overtime hours
(12 hours / 12.00 * $60) + (3 hours * 1/6 * $60) = $ 90.00


WEEKLY RENTAL: (Overtime Days in a Week = 5)
Each overtime day is charged at 1/5 of the Weekly Rate. After 5 days the Weekly rate is charged.

Billable Hours is 108 hours = 1 Week + 2 overtime days
(84 hours / 84.00 * $240) + (2 days * 1/5 * $240) = $ 336.00


4 WEEK RENTAL: (Overtime Days in a Month = 20 with 5 Days in the Week)
Each overtime day is charged at 1/20 of the 4 Week Rate. After 20 billable days (4 weeks) the full 4 Week Rate is charged. The prompt WITH ___ DAYS IN A WEEK determines how the number of overtime days in the month should be applied. When the number of overtime days in a month is 20 with 5 days in a week, the charge per week is evenly divided over 4 weeks.

Billable Hours is 360 hours = 4 Weeks + 2 overtime days
(336 hours / 336.00 * $720) + (2 days * 1/20 * $720) = $ 792.00

Billable Hours is 444 hours = 4 Weeks + 1 week + 2 days
(336 hrs / 336.00 * $720) + (1 week * 1/4 * $720) + (2 days * 1/20 * $720) = $ 972.00

Overtime Days 1 to 5 are charged at 1/20 of 4 Week Rate for each day.
Overtime Days 6 to 7 are no charge.
Overtime Days 8 to 12 are charged at 1/20 of 4 Week Rate for each day.
Overtime Days 13 to 14 are no charge.
Overtime Days 15 to 19 are charged at 1/20 of 4 Week Rate for each day.
Overtime Days 20 to 21 are no charge.
Overtime Days 22 to 26 are charged at 1/20 of 4 Week Rate for each day.
Overtime Days 27 to 28 are no charge.

Examples of Rate Calculation using Alternative Overtime:
Alternatively, overtime can be set to:

                   4  overtime hours in a Day
                   4  overtime days in a Week
                  12  overtime days in a Month with 4 Days in a Week

The rental rates for an item are:

                   $  60 a Day
                   $ 240 a Week
                   $ 720 for 4 Weeks
DAILY RENTAL: (Overtime Hours in a Day = 4)
Each overtime hour is charged at 1/4 of the Daily Rate. After 4 hours the Daily rate is charged.

Billable Hours is 15 hours = 1 Day + 3 overtime hours
(12 hours / 12.00 * $60) + (3 hours * 1/4 * $60) = $ 105.00


WEEKLY RENTAL: (Overtime Days in a Week = 4)
Each overtime day is charged at 1/4 of the Weekly Rate. After 4 days the Weekly rate is charged.

Billable Hours is 108 hours = 1 Week + 2 overtime days
(84 hours / 84.00 * $240) + (2 days * 1/4 * $240) = $ 360.00


4 WEEK RENTAL: (Overtime Days in a Month = 12 with 4 Days in the Week)
Each overtime day is charged at 1/12 of the 4 Week Rate. After 12 billable days (3 weeks) the full 4 Week Rate is charged. The prompt WITH ___ DAYS IN A WEEK determines how the number of overtime days in the month should be applied. When the number of overtime days in a month is 12 with 4 days in a week, the charge per week is evenly divided over the first 3 weeks.

Billable Hours is 360 hours = 4 Weeks + 2 overtime days
(336 hours / 336.00 * $720) + (2 days * 1/12 * $720) = $ 840.00

Billable Hours is 444 hours = 4 Weeks + 1 week + 2 days
(336 hrs / 336.00 * $720) + (1 wk * 1/3 * $720) + (2 days * 1/12 * $720) = $1080.00

Overtime Days 1 to 4 are charged at 1/12 of the 4 Week Rate for each day.
Overtime Days 5 to 7 are no charge.
Overtime Days 8 to 11 are charged at 1/12 of the 4 Week Rate for each day.
Overtime Days 12 to 14 are no charge.
Overtime Days 15 to 18 are charged at 1/12 of 4 Week Rate for each day.
Overtime Days 19 to 28 are no charge.

Examples of Rate Calculation using No Overtime:
Some firms do not use the American Rental Association (A.R.A.) method of calculating overtime.
Instead, when overtime would apply, these firms use the daily and weekly rates. This is most common where firms are used to calculating rates on a manual basis.

For example, if an item was rented for 1 week and 2 days, the customer would be charged the one week at the weekly rate plus two days at the daily rate.

If the overtime was set to:
0 overtime hours in a Day (Prorate Partial Days = N)
0 overtime days in a Week
0 overtime days in a Month with 0 Days in a Week

And the rental rates for an item are:

                 $  60 a Day
                 $ 200 a Week
                 $ 550 for 4 Weeks

a) For an item rented 1 week & 2 days:

$320 = (1 week * $200 a week) + (2 days * $60 a day)
RATE PER DAY $ 35.55 = $320 / 9 days

b) Using the standard A.R.A. method:

$ 300 = (1 week * $200) + (2 days * 1/4 * $200)
where each O/T day is 1/4 the weekly rate
RATE PER DAY$ 33.33 = $300 / 9 days

Using a rate calculation with No Overtime, the rate per day calculated over the entire rental period will always be higher. This means that the customer is not given the advantage of the cheaper weekly rate (cheaper per day) for keeping the equipment out longer than one week. With this method, the customers will be inclined to return the equipment after one week, instead of keeping it for several extra days, in order to avoid the higher daily rates.

Generally, it is desirable that the customer keeps the equipment for as long as possible to maximize long term rentals. Because the customer is not rewarded for keeping the equipment out longer, there is a general movement away from this method of calculating rental charges in the Rental Industry. This is why the A.R.A. does not recommend this method of rate calculation.

DAILY RENTAL:
Any overtime hour causes an extra day to be charged. Partial Days are not allowed. Please note that the 4 Hour Minimum applies only to the first four hours of the rental. It will not be used to calculate the rate after the first four hours.
Billable Hours is 15 hours  =  1 Day + 3 hours  =  2 days
                               2 days  *  $60   =  $ 120.00

WEEKLY RENTAL:
Each overtime day is charged at the Daily Rate.

Billable Hours is 180 hours = 2 Weeks + 1 day
(2 weeks * $200 Weekly Rate) + (1 day * $ 60 Daily Rate) = $ 460.00


4 WEEK RENTAL:
Each overtime day is charged at the Daily Rate. Each overtime week is charged at the Weekly Rate.

Billable Hours is 360 hours = 4 Weeks + 2 days
(336 hours / 336.00 * $540) + (2 days * $ 60) = $ 660.00

Billable Hours is 444 hours = 4 Weeks + 1 week + 2 days
(336 hours / 336.00 * $540) + (1 week * 200) + (2 days * $ 60) = $860.00

Billable Hours is 720 hours = 2 x 4 weeks + 4 days
(672 hours / 336.00 * $540) + (4 days * $ 60) = $ 1320.00

Examples of Rate Calculation when the Rental Rate is Overridden:
When the standard rental rate for an item is overridden, the software applies the ratio of the overridden rate over the standard rate for calculating the rental charges.

The rental rates for an item are:      $60 a Day
                                      $240 a Week
                                      $720 for 4 Weeks.
When the Daily Rate is overridden to $48.00, then the ratio is:
($48.00 / $60.00) = 0.80

The remaining rates are calculated as:

                $240  *  0.80  =  $192  Weekly Rate
                $720  *  0.80  =  $576  4 Week Rate
DAILY RENTAL (Overtime Hours in a Day = 6)
Billable Hours is 15 hours = 1 Day + 3 overtime hours
(12 hours / 12.00 * $48) + (3 hours * 1/6 * $48) = $ 72.00

WEEKLY RENTAL (Overtime Days in a Week = 5)
Billable Hours is 108 hours = 1 Week + 2 overtime days
(84 hours / 84.00 * $192) + (2 days * 1/5 * $192) = $ 268.80

4 WEEK RENTAL (Overtime Days in a Month = 20)
Billable Hours is 372 hours = 4 Weeks + 2 overtime days
(336 hours / 336.00 * $576) + (2 days * 1/20 * $576) = $ 633.50

4 WEEK RENTAL (Overtime Days in a Month = 20 with 5 Days in the Week)
Billable Hours is 444 hours = 4 Weeks + 1 week + 2 days
(336 hrs / 336.00 * $576) + (1 wk * 1/4 * $576) + (2 days * 1/20 * $576)= $777.60

BASE RATE PROCESSING
Base Rate processing provides the ability to setup two sets of rates for any regular rate level.
This allows a product to be billed at a base rate for a portion of a rate level, and then billed at the regular rate for the remaining portion of that rate level.

e.g. A base weekly rate can be setup for the first week, and then the following 3 weeks could be billed at a lower regular rate. This offers the customer a reduced rental rate when the equipment is out longer than the base period.

Base rates can be setup for any rate code level. e.g. Hourly, Daily, Weekly or even Monthly.

There are two methods of utilizing Base rates in the product rate structure.
Refer to Base Rate Structure information in the Group Rates for setup and examples.

ACTIONS:
Additional actions provided by buttons on the Rental Product screen include:


Topic Keyword: RSPF02
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