Product Classes are equivalent to general titles, organizing your inventory into distinct sections for reporting and lookup capabilities.
Rentals classes can be maintained in the Rental Product Class
window in the "Inventory" parameters on the Accounting tab
of the Configure System Settings.
An operator must be assigned a Security Role that allows permission to the Accounting - Rental Classes in order to access this table.
This role permission also controls the operator's ability to add new classes when adding new rental products on-the-fly.
A.R.A. PRODUCT CLASSES:
The American Rental Association suggested classes include:
Unassigned 50 Bars & Staging 10 Air Compressors 51 BBQ & Accessories 11 Air Tools & Accessories 52 Casino Equip & Games 12 Automotive Tools 53 Chafing Dishes 13 Compaction Equipment 54 Cutlery 14 Concrete & Masonry 55 Dinnerware 15 Drywall Tools 56 Glasses 16 Exercise Equipment 57 Silver Serving Items 18 Floor & Carpet Tools 58 Stainless Serving Items 19 Generators 59 Tables and Chairs 20 Heaters & Fans 60 Table Accessories 21 Hydraulic Jacks & Lifts 61 Tents and Marquees 22 Lawn & Garden & Household 62 Trays 23 Medical Equipment 63 Wedding Arches & Access 24 Moving Equipment 64 Miscellaneous Party 25 Painting & Decorating 80 Miscellaneous Party Merchandise 26 Plumbing Tools 81 Paper Goods 27 Pumps & Hoses 82 Balloons & Decorations 28 Saws 90 Miscellaneous Tool Merchandise 29 Scaffolding 91 Fasteners 30 Skid Steer Loaders & Trenchers 92 Finishing 31 Welding Equipment 93 Abrasives 32 Miscellaneous Tools 94 Parts
NOTES ON GENERAL LEDGER POSTING:
General Ledger posting of rentals and sale of rental equipment is controlled by the G/L Account numbers assigned to the Product Class. The posting uses these accounts numbers automatically when invoices are posted during the Daily Close process. Rental equipment and sales inventory must be in separate product classes to permit the rental and sales income to post to separate General Ledger accounts.
EXAMPLE: RENTAL ITEM: Chain Saw SELLING PRICE: $ 500.00 COST: $ 300.00 ACCUM. DEP'N: $ 120.00 RENTED FOR $ 100.00
When rental equipment is purchased:
Rental Inventory is DEBITED Acct# 1300 for $ 300.00 Accounts Payable is CREDITED Acct# 2000 for $ 300.00
When rental equipment is rented:
Rental Revenue is CREDITED Acct# 4000 for $ 100.00 Accounts Receivable is DEBITED Acct# 1200 for $ 100.00
When rental equipment is sold: - using Average Cost
Sales of Rental Equip is CREDITED Acct# 4090 for $ 500.00 Accounts Receivable is DEBITED Acct# 1200 for $ 500.00 Rental Inventory is CREDITED Acct# 1300 for $ 300.00 Cost of Rental Equip Sold DEBITED Acct# 4500 for $ 300.00
The item is recorded on the Disposal Transactions with the
current amount of Depreciation at the time of invoicing. When
Average Cost is used, the depreciation is not automatically posted
to the General Ledger.
See Allocate Bulk Disposals for details on the Disposals of Fixed Assets.
When rental equipment is sold: - using Average Cost with Selling Price Table
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.
When rental equipment is sold: - using Book Value
Sales of Rental Equip is CREDITED Acct# 4090 for $ 500.00 Accounts Receivable is DEBITED Acct# 1200 for $ 500.00 Rental Inventory is CREDITED Acct# 1300 for $ 180.00 * Cost of Rental Equip Sold DEBITED Acct# 4500 for $ 180.00 * Book Value = Original Cost - Accumulated Depreciation = 300 - 120 = 180
Note: Book Value or Average Cost is set in the Company Posting Parameters with SALE OF RENTAL
USE BOOK VALUE.
See the Disposal of Fixed Assets discussed in Allocate Bulk Disposals.
The prompts to create a new Rental Product Class are:
Note: Product Class numbers, Group numbers, Website Category numbers and Subcategory numbers cannot contain the "|" (pipe) character as this is not interpreted correctly in a browser, and an error will be triggered preventing its use.
The Product Class number sequence is controlled by Last Used Transactions, for module RSPC. The value in the TRX # column is the last assigned Class #. The value in the Running Balance column is the increment by which the auto-assign number is increased.
In Change Mode a window is provided to select an existing Product Class as outlined in Product Class Search.
Note: Once a Product Class has been assigned to Rental Inventory it can be changed using the Update Class/Group/Vendor on Product utility.
The purpose of the Enhanced Tax method is to allow more than two tax codes to be tracked according to Location, and to be charged on products, services, and Damage Waivers, and to allow for tax exemptions on any or all of these charges.
The Enhanced taxing method can be activated in the Company Taxing Parameters.
The type of GL account assigned to the Class as the "Inventory"
posting account, also controls how the Inventory Yes or No
flag is set when new equipment is "auto-added" into Rental Inventory.
Refer to Inventory Flag Defaults for information on this default.
Note: When a product is ordered on a Purchase Order the Inventory posting account can be changed for that specific order, if the Allow Override Of GL Account On PO Details setting in the Company Security Parameters.
Enter the G/L Expense account to track discounts given through rate/price over-rides and discount percents given for products on the document.
In special situations, a Revenue Posting By Tax Code can
be defined in the window, so that if an invoice for a rental
product in this class is posted charging a Tax Code listed
here, it will post both the 'Rental Revenue' and the 'Sale Of
Rental Equipment Revenue' to the corresponding Revenue
Account associated with the Tax Code in this window.
If the tax code is not included in this list, the revenue will be posted to the standard Revenue Accounts assigned to this Product Class.
Revenue Posting By Tax Code window:
Select one of the following partial day rate calculation options from the drop-down list:
H (HALF-DAY) if equipment in this product class should have the
rental rates for partial days always prorated by the half day,
after one day.
The hours equal to a half day are determined by the value entered for the next prompt O/T Hours In A Day.
For example, if the equipment is out for 2 days and a fraction of a day. If the fractional hours on the return day are less than the O/T Hours In A Day, your firm would charge 2 days plus half a day. If the fractional hours on the return day are greater than the O/T Hours In A Day, your firm would charge 3 days.
N (NO) if this product class should NOT have the rental rates
for partial days prorated.
For example, if the total hours out for the equipment equals 2 1/4 days your firm would charge 3 full days.
This setting uses the Time Out and the Time In to calculate the exact total hours that the product was out.
Based on a 24 hour calendar day, from Monday at Noon to Tuesday at Noon would equal 24 hours or 1 billing day.
F (FULL-DAY) if rental products in this product class should NOT
have the rental rates for partial days prorated but instead should
charge the full daily rate for each partial calendar day.
This processing uses the straight calendar date regardless of the time of the day that the product goes out or is returned.
For example, from Monday at Noon to Tuesday at Noon would equal 2 days billing because the product was out for part of 2 calendar days.
Note: Any Off Rental for equipment in a class flagged to bill
Full days, considers the first day off rent not billable (or billed
at the off rent rate) and all of the last day fully billable as
i.e. equipment is off rent from Monday to Wednesday so the rental charge is reduced for two days
When Prorate Partial Days = Y (YES):
Enter the number of overtime hours equal to a day. This applies after the first day.
The American Rental Association (ARA) suggests that the overtime number of hours per day should be six. By accepting, the customer will be charged 1/6 of the daily rate for each overtime hour. After six hours, the customer is charged the daily rate.
Example: An Air Compressor rents for $60 a day.
For 2 days and 3 hours, the rental charge would be calculated as follows:
(2 Days * $60) + (1/6 * $60 * 3 hours) =120 + 30 =150
When Prorate Partial Days = H (HALF-DAY):
Enter the number of hours equal to half a day, after one day.
If the extra hours to be prorated are less than this, then half the daily rate is charged. If the extra hours to be prorated exceed this, then another full day's rental is charged.
When Prorate Partial Days = N (NO):
This prompt will be ignored by the rate calculation as partial days are not prorated for this class.
When Prorate Partial Days = F (FULL-DAY):
This prompt will be ignored by the rate calculation as partial days are not prorated for this class.
The American Rental Association (ARA) suggests that the overtime number of days per week should be five. By accepting 5, the customer will be charged 1/5 of the weekly rate for each overtime day. After five days, the customer is charged for the full week.
Example: An Air Compressor rents for $240 a week.
For 1 week and 2 days, the charge totals:
(1 Week * $240) + (2/5 * $240) = 240 + 96 = 336
NOTE: If your firm charges the daily rate for each overtime day,
divide the weekly rate by the daily rate to determine the number of
Overtime Days In a Week to use.
If this number equals a fraction, round up or down.
The American Rental Association (ARA) suggests that the overtime
number of days per month should be 20. By accepting 20, the
customer will be charged 1/20 of the monthly rate for each overtime
day. After twenty days, the customer is charged for the full
Example: An Air Compressor rents at $720 for 4 Weeks.
If it is out for 6 weeks, the rental charges would be calculated as:
(4 Weeks @ $720) + (2 weeks @ 2/4 * $720) = 720 + 360 = 1080
The American Rental Association (ARA) suggests that the number of overtime days in a week after the first month should be 5. At 5 days, the weekly rate will be charged. Generally this prompt is set the same as O/T Hours In A Day.
Select one of:
Select Shift to bill over time hours by the shift.
This is usually applied only to products that track actual equipment usage by meter units of an hour. These hourly units of use should not be confused with the hours out on rent. The Meter flag in Rental Equipment, must be set to 'M' for equipment to use Shift overtime billing.
The Shift method allows for a set number of hours per rate equal
to one shift, to be included at no charge.
If the hours used exceeds the included hours of one shift, but is less than twice the included hours, this is considered to be two shifts and this second shift is billed at amount calculated as a shift rate.
If the hours used is more than twice that allowed for a shift, then the second and third shifts are billed at the calculated shift rate.
If the product rental rate is charging overtime as a fraction of weeks/months, then the meter shift also uses the fraction of the week/month as the shift rate.
Example of setup of Product rates with Shift Meter Rates:
RATE TO HRS RATE HRS METER INCL METER RATE ---- ------ -------- ---------- ---------- DAILY 96 24 8 10 WEEKLY 504 168 40 70 MONTHLY 9999 672 160 280The meter reading always prints on the invoice for rental equipment belonging to a Product Class that uses the Shift meter calculation method, regardless of the flag in the " Print Settings" of the Divisional Invoice Parameters. This flag only controls printing the standard Hourly meter usage on the invoice.
Meter Billing Calculation:
There are two approaches for calculating the meter charges on interim billings over a long term contract as configured in the Company Billing Parameters.
This field is disabled if there is no attachment directory defined in Company Miscellaneous Parameters.
Check this box if products in this Product Class are eligible for Damage Waiver.
Note: If this box is checked and if the Use Damage Waiver Per Item Value Limits feature is activated in the Company Contract Parameters, when products in this class are rented the Damage Waiver becomes mandatory on the document.
Check this box if the rental items in this class have been setup
with a daily rate only, which is to be billed for every day
of the month. To accomplish this, the appropriate rate and rate
hours for this Daily rate need to be setup, and the "To Hours"
field needs to be set to 9999.
Example, signs, flashers & barricades, or scaffolding often rent on a daily basis only, such as $1.00/day. If there were 30 days in the month, every day would be billed at $1.00 per day resulting in a $30.00 charge to the customer.
Note: This is true even if your calendar has been set to 5 days
a week - the software would still bill 7 days a week (every day
possible is charged the same amount at the daily rate for the
duration of the billing).
This is also true regardless of any no charge weekend setting setup in Divisional Weekend Charge Codes.
This does not apply to Sales items.
Select Monthly if the items in this class should be billed on a Calendar Month basis. When equipment is out for one year, 12 invoices would be issued to the customer, 1 invoice every month (28, 29, 30, or 31 days depending on the calendar month).
Uncheck this box if this Product Class does not follow the
'Company Default Rate Structure'.
Set up unique default rates for this Product Class instead.
Note: The Rate Book column can be used to flag rates that
should print on the Rate Book when it is
printed using the Product Class Sort Option.
This does not impact the rate selection that prints on the document.
Rates for New Products:
When a new rental product is created in Add Rental Products, and if the associated Group has rates setup in the Group Rates window, then no rates are required on the individual product as rates will default from the Group.
If the products in the Group have varying rates and there are no rates defined at the Group level, then the rates from the Rental Product Class are copied to the new product.
Rates can always be modified later for specific products as required.
These setting to display the class on the website apply to both the Portal as outlined in Portal Overview.
This flag and the image names can also be setup for classes in Inventory/Division Settings.
Flags in Equipment Groups and in Rental Inventory also control products displayed on the website.
Additional actions provided by buttons on the Rental Class screen include:
Delete a Product Class:
The DELETE button is only active when the role assigned to the operator in Operators has permission to delete a class.
The role permission is setup in Security Roles on the Security tab of Configure System Settings.
Click on the DELETE button, then select the Product Class to be deleted from the window, and proceed as outlined in Delete Product Classes.
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