Graduated Rental Pricing

Graduated Rental Pricing is a price structure based on the total rental time as well as a price that is valid from a specific date. In COSMO Rental, this happens when a minimum number of rental units is assigned to the Rental Price List for a rental item/machine. Once this number is met, based on the Rental Start Date and Rental End Date on the Rental Contract line, the special pricing is used for each invoice period.

Example – Process a rental contract with graduated pricing

A customer signed an agreement to rent an item for at least six months starting February 1st. While this item typically rents for 500 per month, the agreement states that as long as the rental exceeds five months, the price is 485 per month. The pricing structure is defined for this customer in the price list and then the Rental Contract is created.

Set up the price structure

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter Customers, and then choose the related link.
  2. Locate and open the customer.
  3. On the Related menu, choose Rental > Rental Price Lists.
  4. Choose the New action.
    Alternatively, open an existing price list, change the Status to Draft, and then go to step 6.
  5. Fill in the Code and Description fields.
  6. In the Lines FastTab, enter the following:
    • Product Type = Item
    • Product No. (custom) = number of the item to be rented
    • Unit of Measure Code (custom) = piece
    • Billing Unit = MONTHS
    • Unit Price = 500
  7. Go to the next line and enter the following:
    • Product Type = Item
    • Product No. (custom) = number of the item to be rented
    • Unit of Measure Code (custom) = piece
    • Billing Unit = MONTHS
    • Minimum Qty. Billing Units = 5
    • Unit Price = 485
  8. In the Status field, enter Active and then choose the Yes button to change the status.

Create the rental contract

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter Rental Contracts, and then choose the related link.
  2. Choose the New action.
  3. In the Customer Name field, enter the customer name or number.
  4. In the Rental Billing Unit field, enter MONTHS.
  5. In the Rental Start Date field, enter 2/1/2022.
  6. In the Rental End Date field, enter 5/31/2022.
  7. On the first line of the Lines FastTab, enter the following:
    • Type = Item
    • No. = number of item to be rented
    • Quantity = 1
  8. Notice that the standard pricing is used because only four months were included in the invoicing period:
    • Rate Unit Price = 500
    • Total No. of Rate Units = 4
  9. Change the date in the Rental End Date field to 7/31/2022.
  10. Notice that the agreement pricing is used because the total number of rate units equal or exceed five:
    • Rate Unit Price = 500
    • Total No. of Rate Units = 6

See Also

Rental Price Lists
Pricing and Rental Preconditions

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