Time-Base Discounts

A Time-Based Discount is a discount that can be given for a limited portion of the rental period for a rental product, on a Quote, Reservation, or Contract.

For example, a Time-Based Discount could be applied for the first part of a rental period as an initial Training period.

The divisional Time-Base Discounts table can be setup by Over-ride Codes with a preset number of days, and a fixed discount % or a maximum allowable discount %.
A G/L Expense account can be assigned to post the discounted amounts.

The Time-Based Discount is triggered when the operator over-rides the Discount Percent on the rental product second detail line, and then selects an Over-ride Reason code that is defined with Time Based Discount rates.
The operator can then view and modify the discount values for the rental product, up to the preset maximum days and discount percent.

The Time Based Discount does not show as part of the discount percent or dollar value on the product document detail line, but can be accessed in the Line Item Discounts window on the Discount % field.

Calculation:
The Time-Based Discount is applied on the Extended Amount after other discounts are taken.
When the Time-Based Discount is on only a portion of the rental period, the formula is:
(# of eligible days / total rental period days) * Time Based Discount % = the Actual Discount% that is then applied to the Extended amount

Note: When a Time-Based Discount is given on a rental product, any Customer Discount Programs no longer apply for that product, but any Special Rate discounts as setup in Rate Discount for Products/Groups do apply.

The prompts to define the Time-Base Discount over-ride codes for this division include:

SEQ

The sequence number automatically tracks the override records in this table.
Multiple override code records can be entered.

OVERRIDE

Enter an Reason code that has been identified as a Rental Item Rate Or Discount Change type PR override code, or select it from the drop-down list, as setup up in Over-ride Reason Codes.

Note: Once a Reason code is defined as a Time-Based Discount Over-ride, in that division the reason code can only be used for Time-Based Discount over-rides.
However other divisions not using that Reason Code for Time-Based Discount can continue to use that same Reason Codes for other over-rides.

DESCRIPTION

The Override code description displays. This can be over-typed as required.

MAX/FLAT

This parameter controls how the discount percent is applied on the document.
Select one of the following options from the drop-down list:

Type M to set a Maximum percent of the rental amount for this Time-Based Discount.
On the document the operator can enter any discount percent for the rental, up to this maximum.
If the operator enters a discount percent greater than the maximum, then the discount will revert to the Max value.

Type F to set a Flat rental percent to use for the Time-Based Discount.
The operator cannot change this fixed discount percent on the document.

DISC %

Enter the discount percent to be used as either the Maximum percent, or the set Flat discount percent, as explained above for the Max/Flat field.

MAX DAYS

Enter the maximum days that the operator can set on the document, until the discount stops applying.
If the Max Days = 0, then on the document the operator can enter any number of days for the discount to apply.

PRINT

Check this box if the Time-Based Discount name and discount amount should print as a note on the invoice for each relevant line item.
Uncheck this box to suppress printing the discount information for each product detail.

DISCOUNT G/L ACCOUNT

Posting Time-Based Discount amounts separately to the General Ledger is optional.

• Leave this G/L account field blank if discounts should not be posted separately to the G/L.
  This causes the net rental charge to be posted as a Credit (Rate less Discount) to the product Revenue account.
• To post discounts to the G/L separate from the revenue, enter the Expense Account to which discount amounts for this Override Code should be posted.
  A G/L Account Search window is provide to view and select the appropriate expense account for posting this discount.

  When the Time-Based discounted invoice is posted through Daily Close 3, the gross rental charge is posted as a Credit to the Rental Equipment Revenue account as determined by the Product Class, and then the Time-Based Discount amount is posted as a Debit to this Discount Expense account, to reduce the invoice total that the customer pays.

Note: This discount posting feature is entirely independent from Post Document Discounts to G/L that can be activated from the Company Posting Parameters.

ALT LANGUAGE DESC

Enter the Alternate language wording for the description of this Discount type.
This is the discount description used for Alternate language customers if the discount information is printed on the document for each product detail.
The remaining wording for the notes can be set in Document Field Labels.

Finished?

Click ACCEPT to accept the records in the table and to close this window.

ACTIONS:
Additional actions provided by buttons on the Time-Based Discount screen include:

• Delete Time-Based Discount Records by Over-ride Code:
  Click the DELETE button to view only Over-ride Discount records that are not currently in use that are eligible for deletion.
  To view the expanded details for these records click the EXPAND button.

  To delete a record, click on the corresponding sequence number to highlight the record and then click the DELETE button.
  Confirmation is required.

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Topic Keyword: RSDSD01