Processing Losses

Unless a credit memo document is specifically needed to process a Rental Loss, such as fully invoiced prepaid contracts, losses are processed as reverse credit entries in the rental invoices based on the following parameters:

  • Periods within the invoicing period are regarded as negative lines (credit entry) on the current invoice.
  • Periods before the current invoicing period are regarded as negative lines (credit entry) on the next invoice.
  • Periods after the current invoicing period are regarded as negative lines (credit entry) on the invoice in the proper period.

Example

This example shows the results of posting a rental loss as a credit entry on an invoice line and as a separate credit memo document.

Invoice

In the following table, a Rental Contract is created for January 1 – February 28. The current invoice period is January and whether it was posted and/or prepaid determines how the loss is processed for posting within and before this period. The last entry shows what happens when a loss is posted for a period after the current invoice period. In each scenario, a credit entry to the invoice is created to process the loss.

Loss Posting Current Invoice Period Invoice Posted Prepaid Loss Period Result Next Invoice Period Result
Within January 1 – January 31 No January 16 – January 18 Fully invoiced for January and one credit line for 3 days of loss
Before January 1 – January 31 Yes ✗ January 16 – January 18 Prepaid, no further January invoicing February 1 – February 28 Fully invoiced for February and one credit line for 3 days of loss in January
After January 1 – January 31 No February 1 – February 5 Fully invoiced for January; no credit line since loss is scheduled for February February 1 – February 28 Fully invoiced for February and one credit line for 5 days of loss

Credit Memo

In the following table, a Rental Contract is created for January 1 – January 31. There is a 3-day loss from January 16 – January 18, which is posted as a credit memo for entries without and with a prepaid invoice.

Invoice Period Invoice Posted Prepaid Loss Period Credit Memo Result
January 1 – January 31 No January 16 – January 18 ✗ Fully invoiced for January and one Credit Memo created for 3 days of loss
January 1 – January 31 Yes ✗ January 16 – January 18 ✗ No further invoicing; Credit Memo created for 3 days of loss

Serial Number Tracked Items

Items that use serial number tracking are listed individually in the Rental Loss Worksheet. Losses are processed the same way for serial numbers as without, meaning based on whether the loss is within or outside of the invoicing period.

To process a loss for a single rental contract

  1. Create, ship, and if necessary, invoice the Rental Contract.
  2. Open the Rental Loss Worksheet from the Rental Contract header/lines or from the Rental Status Lines page, depending on the desired filtered view.
  3. In the Start Date and End Date fields, enter the starting/ending date of the loss. Alternatively, you can choose the Copy Dates action to transfer the shipment and return dates from the lines to these fields.
  4. Fill in the Description and Loss % fields either manually or through the defaults by entering a loss reason in the Reason Code field.
  5. Select or clear the Selected checkbox on the lines to include or exclude from the loss posting. You can also choose the Select/Clear All action for mass changes.
  6. If the number of items/rate parts to be included in the loss is smaller than the Maximum Quantity, then enter the number in the Selected Quantity field.
  7. To create an immediate credit memo instead of adding a credit entry in the next invoice, select the Credit Memo checkbox.
  8. Choose the Post Rental Loss action.

You can review the loss information for the line by choosing the value in the No. of Posted Losses field.

To process losses for multiple rental contracts

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter Rental Loss Worksheets, and then choose the related link.
  2. In the Start Date and End Date fields, enter the starting/ending date of the loss.
  3. Fill in the Description and Loss % fields either manually or through the defaults by entering a loss reason in the Reason Code field.
  4. Select the Selected checkbox on the lines to include in the loss posting. You can also choose the Select/Clear All action for mass changes.
  5. If the number of items/rate parts to be included in the loss is smaller than the Maximum Quantity, then enter the number in the Selected Quantity field.
  6. To create an immediate credit memo instead of adding a credit entry in the next invoice, select the Credit Memo checkbox.
  7. Choose the Post Rental Loss action.

You can review the loss information for each line by choosing the value in the No. of Posted Losses field.

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