Additional Options - Rental Product Classes

The following configuration settings can be set for each Rental Class:

MAINTENANCE PROVISION

Optional maintenance provision postings can be generated to reflect a maintenance expense in the G/L as a portion of the rental revenue.

This is set by product or by Group in the expanded rate structure detail of Rental Inventory and in Equipment Groups, where an hourly rate to be expensed for maintenance can be entered in the Maintenance Provision field for each rate code.

When invoices for this equipment at this rate are posted in the Daily Close, a Debit is then posted to the Maintenance Expense account and a Credit is posted to the Maintenance Provision Liability account as setup in the Product Class.

MAINTENANCE EXPENSE

Enter the G/L Expense account to which to Debit the maintenance portion, for relevant products in this class.

MAINTENANCE PROVISION

Enter the G/L Liability account to which to Credit the maintenance portion, for relevant products in this class.

Note: If your firm does not use maintenance provision postings a "Suspense" account can be assigned to both these fields as the debit and credit postings will net zero.

Maintenance Provision Overview explains the utilities to enter and to post manual maintenance provision postings, by product, division, and date. Reports and inquiries are also provided to review existing and unbilled maintenance provision amounts.

The Invoice Rate Window for Rentals flag in the Divisional Rate Parameters can be set so that the rate window for rental charges opens automatically on Miscellaneous Invoices and Quotations.
The rental period information provided in this window is necessary in order to generate maintenance provision postings by the hourly rate.

SELLING PRICE TABLE

A Selling Price Table can be setup for this class in this window, to define a cost factor based on the age of the product.
This cost factor would be used in a formula to calculate the selling price of rental equipment by age, instead of always using the list price when used equipment is sold. Customer discounts will not be applied.
The prompts are:

AGE

Enter the minimum age for this factor in months.
The age of the equipment is determined in full months, from the date of the Sales Invoice less the Date Acquired on the Fixed Asset Tag.

COST FACTOR

Enter the cost factor to be applied when the equipment is in the aging category at the time it is sold.
The formula used is: Selling Price = Average Cost X Cost Factor

                Selling Price Table
                ===================
                Age     Cost Factor
                ---     -----------
                  0         1.50
                 12         1.00
                 18          .50
                 24          .25
        

e.g. A Rental product that was under 12 months old would be sold for a Selling Price of the Average Cost * the Cost Factor of 1.5
A Rental product that was over a year and a half old, but under 24 months old would be sold for a Selling Price of the Average Cost * the Cost Factor of .25

Note: The Selling Price formula for used equipment by Product Class, only applies to Non-Bulk Rental Equipment with an Average Cost and with a Date Acquired on the Fixed Asset Tag.

SERVICE CODES

Optional Service Charges can be associated with a rental product class so that when a product in the class is invoiced as a sale or rental, a flat rate or a percent of the charge can be automatically billed for the related services or fee, as outlined in Product Class Service Codes.

DEFAULT MARKUP %

Enter the markup percentage used to calculate the list price from the cost of the inventory in this Product Class. e.g. Enter 30% as 30.00
A 30% Markup is calculated as COST * (100 + 30.00)

Alternatively, window to enter a desired Margin Amount to be used to calculate the Markup %, as outlined in Markup Based on Margin Calculator.

RERENT CLASS

Check this box if this class contains rerented (sub-rented) equipment only.
Each time re-rented equipment is invoiced, the software automatically tracks the revenue in Re-Rental Inquiry.
When the Re-rental costs are entered in A/P Invoices and A/P Invoices By P.O. and allocated against the same product, the profit on the re-rental can be determined.
Re-rent products can be included or excluded in the Rental Age Report.

Uncheck this box if this product class does not represent re-rent products.

Note: Availability checking for Rental equipment in a Re-rent Product Class does not apply even if that equipment belongs to a Group flagged to require availability checking, and the availability column in the results of an Inventory Search show as AVAIL.

Non-bulk products in a Re-rent Class cannot be assigned a 'Resource URL' in the Maintain External Resource URL utility.

ALLOW TRADE DISCOUNT

Check this box to allow Trade Discounts on the rental products in this class.
Uncheck this box to prevent Trade Discounts from being given on products in this class.

For more information on this discount feature refer to the Trade Discounts.

ALLOW RENTAL DISCOUNT

Check this box to allow standard Rental Discounts to be given on the rental products assigned to this class.

Uncheck this box to prevent Rental Discounts from being given on any products in this Product Class.
This causes Customer discounts to be ignored and prevents manual discounts to be given on a document.
Rental products included as part of a Kit will always be given any discount defined in the kit to allow "bundled" pricing by kit, but will not be given any customer discount.

Note: This flag does NOT apply when a product is given a Time Based Discount, or when a split billing invoice is generated.

The ability to disallow discounts can also be set for specific rate levels in Special Rate Codes.

EXEMPT FROM EARNING REWARDS

Check this box if rental products in this class should not generate "Reward Dollars" for rental transactions on the invoice.
Uncheck this box to allow customers to earn "Reward Dollars" on billed rental transactions for products in this class.

For more information on this feature refer to the Reward Program Maintenance.

CANNOT BE PAID WITH REWARDS

Check this box to prevent "Reward Dollars" from being used to pay invoiced amounts for rental products in this class.
Uncheck this box to allow "Reward Dollars" to be used to pay invoiced rental amounts for products in this class.

INCLUDE IN RENTAL VALUE LIMIT

Each rental product can carry an optional "Replacement Cost" value in Rental Inventory.
By tracking this cost at the time a Contract is created, the total replacement value of designated rental equipment that a customer has out on rent at any one time, can be tallied.
In the "Credit Information" window for each customer in Customer Information, an optional Rental Value Limit can be set that is checked in Contract entry and when source documents are converted to the Contract.

Check this box if products in this class that have a replacement cost, should be included in the value total sum at Contract entry, that is compared to the customer's Rental Value Limit.

Uncheck this box if equipment in this class should not be included in the Rental Value Limit checking.

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.
Refer to Customer Information for details on how the Rental Value Limit can be utilized.

RENT TO ACCOUNT CUSTOMERS ONLY

Check this box if only On Account Customers as identified in Customers Information should be able to rent equipment in this Product Class.
Cash customers will be prohibited from renting equipment in this Product Class, however they can still buy equipment in the class as they are making full payment.

Uncheck this box if there should be no restriction and both Cash and On Account customers should be allowed to rent equipment in this class.

Note: This flag is respected in rental documents and in invoices.

PREVENT SALE OF RENTAL PRODUCTS

Check this box if equipment in this Product Class is not for sale and should never be sold on any counter document.
If an item in this class is lost, it would need to be transferred to a different class or transferred from a Rental to a Sales product before it could be "sold".

Uncheck this box if there should be no restriction preventing rental equipment in this class from being sold.

ALLOW ZERO QTY ON RESVTN, QUOTE

This setting controls whether the bulk rental products in this class or the Group for this class, can be included on a Worksheet, Reservation, or Rental Quote, with a zero quantity.

Uncheck this box if products in this class should not allow a zero quantity on Counter Worksheet, Quotations, and Reservations.
This is the default setting in rental Product Classes.

Check this box to allow non-bulk products from this class to be entered with a zero quantity on Counter Worksheet, Quotations, and Reservations.
If an item still has a zero quantity when the document is converted to a contract then that line item is omitted from the new contract.

Note: Non-bulk rental products and serialized sales parts must always have a quantity of 1 or -1, regardless of the Product Class flag.

ALLOW CREATE P.O. FROM CONTRACT

This field is only enabled if the Rental Product Class is flagged as a Rerent Class.
The "Inventory Received In Warehouse" feature must be activated in the 'Purchase/Receiving Settings' of the Company Inventory Parameters.

Uncheck this box if a P.O. should not be generated when rerent products in this class are entered on a contract.

Check this box if the operator should have the ability to create a Purchase Orders for re-rental equipment (bulk or non-bulk) in this class from a Contract as explained in Contract/Purchase Order Link Overview.
Define the following two G/L Accounts for processing an Accrual transaction from the P.O./Contract Accrual Report.

P.O. ACCRUAL EXPENSE ACCOUNT

Enter the G/L expense account number or select one from the G/L Account Search window, to which to post the Debit and reversing Credit Accrual transactions from the P.O./Contract Accrual Report for relevant products in this class.

P.O. ACCRUAL LIABILITY ACCOUNT

Enter the G/L liability account number or select one from the G/L Account Search window, to which to post the Credit and reversing Debit Accrual transaction from the P.O./Contract Accrual Report for relevant products in this class.

FINANCE INTEREST EXPENSE ACCT

Asset Financing can be setup for non-bulk equipment in the Finance Options window of Rental Inventory so that Asset Finance Report and Posting and Asset Finance Interest Report and Posting can be used to post the payment, principal, interest and any early termination amounts to the G/L.

This Interest Expense account defaults from the Class Defaults when a class is created, and can be over-typed as required for each class.

Refer to Asset Financing for information on the Debit and Credit postings that are generated.

DEFAULT REPAIR CHARGE CODE

• The "Auto Close From Fast Track Labor" flag in the Company Estimate and W.O. Parameters controls the ability to automatically close a Work Order for rental equipment to an Internal repair when labor is logged in Fast-Track Work Order Labor, if the product has a Status that allows rental and if there is a valid Repair Charge code defined for the Product Class.

• The "Texada Web Auto Close" flag for Work Orders in the Status Code Actions By Group window controls the ability to automatically close a Work Order for non-bulk rental equipment to an Internal repair when the Work Order is completed on a Texada Web Mobile device, if the product has a Status that is configured to auto-close and if there is a valid Repair Charge code defined for the Product Class.

Enter a Repair Charge code if products in this class should be eligible for this "auto-close to a repair" processing, or select one from the drop-down box, as setup in Repair Charge Code.
This Repair Charge code also becomes the default code when repairs are processed manually in Close Internal Work Orders.

Note: If this field is left blank, and there is a blank code in Repair Charge Code then products in the class become eligible for this processing.

MAINTENANCE RENTAL PERIOD

The Maintenance Schedule Report provides the flexibility to define the "# of Rental Days" (Type1 maintenance) for non-bulk rental equipment based on the actual usage of 12 or 24 hours in each day of the rental period.

Hours rented is always determined by hours billed on each contract when the invoice is posted through Daily Close 2, but for scheduling maintenance by the number of days rented, the conversion from Hours to Days can be based on 12 or 24 hours of actual usage.

This parameter controls the maintenance schedule default that can be changed in document entry in Contracts, Reservations, Quotes, and Worksheets.
Select one of:

• Select 12 Hours if maintenance schedules for non-bulk rental products in this Product Class should be based on twelve hours of use in each rental day.
• Select 24 Hours if maintenance schedules for non-bulk rental products in this Product Class should be based on twenty-four hours of use each rental day.
• Select Calendar if maintenance should only be based on the full calendar hours of each day and no prompt should be triggered in document entry.

The Maintenance Rental Period can be captured for each non-bulk product detail in the Select Maintenance Rental Period Hours window on each contract to calculate when the product is due for Type 1 maintenance as defined in the Maintenance Schedule.
If there is no 12/24 value reported for the contract, the value in the Rental Product Class is used.

MAINTENANCE BUFFER PERIOD

This field is only enabled if the Warn When Product Due for Maintenance feature is activated in the Company Contract Parameters, to generate a warning or to block rental when equipment due for maintenance is put on a Contract.
The Buffer is used to delay a Block action downgrading it to a Warning, based on the formulas outlined in Maintenance Due Causing Warn/Block on Rental.

A default Buffer value can be setup for each Repair Maintenance Code, but this Class specific Buffer value would over-ride that default for products in this class.

For complete details on the setup and use of this feature, refer to Maintenance Due Causing Warn/Block on Rental.