Rate Components

Rate components can be added to Rental Quotes, Rental Reservations, and Rental Contracts (see Rental Rate Components). Depending on the settings in the Rental Setup page, the lines are added always or only when the components and rental prices exist for the item (see Rental Setup).

Once a rental item number is added to a Rental Contract line, the related components are added to the line (see Item Rent Rate Components). Rental parameter changes made to the rental item line are also made to the component lines. Rate Components are always linked to rental item lines; they cannot be used as "stand alone" positions. Rate Parts can be credited when a rental loss is processed (see Losses); one-time invoicing are not included in rental losses.

Rate Components are set up with a unit price in the rental price list with a relation to the rental item/machine (see Rental Prices).

The processing of Rate Components differs depending on the type:

  • Rate Parts

    • Always invoiced with the rental item line and for the same period
    • Automatically link to a rental item line if added to a Rental Contract
    • Must have a Rate Unit Price prior to shipping

  • One-Time Invoicing

    • Handled the same as Sales positions.
    • When set up to invoice at Start of Rental, the lines are shipped with the item and are due on the first day of the Rental (therefore the lines are included on the first invoice).
    • When set up to invoice at End of Rental, the Qty. to Ship field is initially set to 0 (blank).

    When the return is processed, the value in the Return Qty. to Receive field from the rental item line is added to the Quantity Shipped field on the One-Time Invoicing line. This quantity is used when the line is invoiced.

Example – Process a rental contract with rate components

On January 31, a customer requests one unit of an item for the period of February 1 through February 28. This item includes two rate parts (taxes and insurance) and a one-time cleaning fee due at the end of the rental.

Create and ship the rental contracts

  1. Set the Work Date to 2/1/2022.
  2. Insert a new Rental Contract for the customer.
  3. In the Rental Billing Unit field, enter MONTHS.
  4. In the Rental Start Date field, enter 2/1/2022.
  5. In the Rental End Date field, enter 2/28/2022.
  6. In the Invoice Period field, select Month.
  7. On the Lines FastTab, enter the item/machine number.
    Three lines are added below the rental item line:
    • Two Rate Part line (INSURANCE and TAX)
    • One-Time Invoicing line (CLEANING)
  8. In the Quantity field, type 1.
  9. Ensure that all prices are entered for the rental and rate part lines.
  10. On the Home menu, choose the Create Shipment Transfer Orders action and then choose the OK button to close the confirmation message.
  11. On the Home menu, choose the Transfer Orders action.
  12. Open the shipment transfer order.
  13. Assign the serial number of the shipment for the item if required.
  14. Turn on the Direct Transfer toggle.
  15. On the Home menu, choose the Post action and then choose the OK button in the confirmation message.
  16. Go back to the Rental Contract.

Return the rental contract

  1. Change the Work Date to 2/28/2022.
  2. On the rental item line, enter 2/28/2022 in the Rental Return Date field.
  3. In the Return Qty. to Receive field, type 1. Notice that the Rate Part component lines are updated with the return information, but the One-Time Invoicing component line is still unchanged.
  4. On the Home menu, choose the Create Return Transfer Orders action.
  5. Choose the OK action to close the confirmation message.
  6. On the Home menu, choose the Transfer Orders action to open the list of transfer orders for the Rental Contract.
  7. Select the return transfer order.
  8. Turn on the Direct Transfer toggle.
  9. On the Home menu, choose the Post action and then choose the OK button in the confirmation message.
  10. Go back to the Rental Contract.
  11. Notice the following:
    • The receipt is processed on the rental item line and the rate part components.
    • The Quantity Shipped field and Qty. to Invoice fields are set to 1 on the One-Time Invoicing component line.

Invoice the rental contract

  1. On the One-Time Invoicing component line, ensure that the Unit Price Excl. VAT field is populated. If not, reopen the Rental Contract and add it.
  2. On the Home menu, choose the Post action.
  3. Choose the OK button.
    The Posting Date and Invoice to Date fields are set to 2/28/2022.
  4. Choose the OK button to create the invoice and then close the confirmation message.
  5. On the Related menu, choose Documents > Invoices and then open the invoice.
  6. Notice that the rental item, the two Rate Part components, and the One-Time Invoicing component are listed with the same values entered on the Rental Contract lines.
  7. On the Home menu, choose the Post action and then choose the Yes button to post the invoice.

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