Creating a Rental Agreement

This section walks you through entering a rental agreement, placing equipment on rent, and creating a transport request for equipment. 

You can check the availability of a piece of equipment either before or during the creation of a rental agreement. For more information, see Checking rental availability. 

You can have unlimited account distributions for each rental agreement line. In addition, you can specify an ownership percentage, based on who owns the equipment and who is renting the equipment. See Rental account distributions for more information.

Step 1: Enter Basic Agreement Information

1. Select Transactions > Equipment > Rental Agreement Entry.
2. Complete the following fields.
   • Agreement Type ID
     Select the agreement type ID. If you set up a default agreement type ID in Rental Setup, tab through this field and it will fill automatically.
   • Agreement No.
     Fills automatically.
   • Customer ID
     Select a Customer ID.
   • Customer Name
     The customer name fills automatically based on the customer ID.
   • PO Number
     Enter the purchase order associated with the agreement, if applicable.
   • Agreement Date
     Fills automatically based on the user date. You can change this value.
   • Rental From
     Enter the start date to specify when the equipment will be on rent. The system uses this date range to check equipment availability.
   • Rental To
     Enter the end date to specify when the equipment will be on rent. The system uses this date range to check equipment availability.
   • Rental Location ID
     Fills automatically based on the customer. If linked to a customer, this field will fill with the Customer ID and Address ID.
   • Price Template ID
     Fills automatically based on the agreement type, and is used to set up pricing structures for rental pricing.
   • Invoicing Frequency ID
     Fills automatically based on the agreement type, or - if not set up for the agreement type - based on Rental Setup. This value is used to determine when an agreement is invoiced.

   • Price Level
     The price level auto-populates based on the price group and where the price level has been assigned. For information on how the system looks for the price level to use, see Determining Price Levels.

   • Operating Lease
     If the agreement is an operating lease, mark the checkbox and then select the expansion button to open Lease Information which allows you to enter additional operating lease information. See Working with Operating Leases for more information.
   • Disable Invoicing
     Mark this checkbox to temporarily disable invoicing for this agreement line. When marked, this line will not be included in an invoice batch.
   • One Way
     Mark to designate that the booking is a one-way rental, meaning equipment is rented at one location and returned to another.
   • Separate Invoice
     Mark to override the customer invoice setting from Customer Rental Information. Marking this checkbox means that you want one invoice per agreement with multiple lines. For more information about the invoice setting in Customer Rental Information, see Customer Rental Information.

Step 2: Enter Sales Commissions and Markdowns

You can enter commissions and markdowns using the Rental Agreement Details Entry window. This window contains additional details about the agreement and stores much of the information that you enter in the other areas of the Rental Agreement Entry window. See Entering Additional Details.

Step 3: Enter Agreement Lines for Equipment

Equipment or items included on an agreement are entered as agreement lines.

1. On the Rental Agreement Entry window, select the Line Entry button. The system automatically saves the agreement and then opens the Rental Agreement Entry Line window.

2. Select the Line Type.

   When you attempt to change the Equipment ID while on an existing line, the system will prompt you with the following message: Do you want to change the equipment? 

   • If you select Yes, the following message will display: Do you want to retain the other information on this window?
     • If you select Yes, the Equipment ID will change, along with the fields associated with that equipment record - all other fields you filled manually will be retained.
     • If you select No, only the Equipment ID and the fields associated with that equipment record will fill - all other fields will be cleared.
   • If you select No, the Equipment ID is not changed.

     Select an Equipment ID or Item Number to be rented. Several fields fill automatically when you select the equipment or item, including Rental Location ID, Original Site ID, and Rental Site ID. Some fields fill from the Rental Agreement Details Entry window, and some fill from the Equipment Manager window. 

3. Complete the following fields.
   • Line
     Displays the line number.
   • Linked Line
     Displays the line that the current line is linked to. For more information linking lines, see About Line Linking.
   • Subject to Commissions
     Mark this checkbox if you want to be able to distribute commissions for this booking line.
   • One Way
     Mark to designate that the booking is a one-way rental, meaning equipment is rented at one location and returned to another.
   • Use Lowest Rate
     Mark this checkbox if want to use the lowest rate possible, regardless of which rental rate is selected. May default as checked or unchecked based on the Price Template ID.
   • Fully Maintained
     Mark to designate that tire and brake wear are not charged on the rental invoice, however, charges will always be incurred when tire type changes from original to retread and for reefer fuel consumption. For more information on recording, see Vehicle Readings.
   • Comment ID
     Select a comment ID that describes this booking line or booking type.
   • Rental From
     This field fills automatically from the Rental Booking Entry window, if applicable.
   • Rental To
     This field fills automatically from the Rental Booking Entry window, if applicable.
   • Invoicing Free Days
     Enter the number of days after the on rental date that invoicing will commence.
   • Original Site ID
     Fills automatically based on the booking type.
   • Rental Site ID
     Fills automatically based on the booking type.
   • PO Number
     Enter the purchase order number, if applicable.
   • Assign to Equipment
     Enabled only if the Line Type is not Equipment. This represents the equipment that is tied to the inventory item being rented. This is used primarily for MDA (Multi-Dimensional Analysis).
   • Enter pricing information.
   • Pricing Template ID
     Select the pricing template. Pricing information that fills based on the price template can be changed if necessary.

   • Price Level
     The price level auto-populates based on the price group and where the price level has been assigned. For information on how the system looks for the price level to use, see Determining Price Levels.

4. • Overage Rate / UOM
     The rate charged if the Overage Quantity has been exceeded. The Overage Rate is entered as a dollar amount per Unit of Measure.

   • Free Overage Qty
     If the equipment you are renting does not involve mileage charges, you may want to provide an overage amount to consider the mileage incurred when transporting the equipment. Enter the amount of free mileage in Total Overage Qty. The off rental invoice will compare the on and off rental miles with the free quantity and charge accordingly. In the first example, the free overage covers all the off rental miles, so there are no miles to invoice. The second example shows that there are still 900 miles that will be invoiced at the overage rate, after the free quantity has been subtracted.
     
     
     

     

   • Rental U of M
     Fills automatically based on the Price Template ID; defines the price rate used on this booking line.
   • Rental Rate
     Fills automatically based on the Price Template ID; if no rate is set up, enter one here.
   • Rolldown Quantity
     The point at which the price rate is rolled up or rounded up if there are more days in the billing period than are defined by the rate. See Set up price templates. for more information.
   • Remainder Option
     Determines "what to do" with any remainder if there are more days in the billing period than are defined by the rate. See Set up price templates for more information.
   • Overage Qty
     The point at which actual usage exceeds allowed usage for a piece of equipment; this is when to charge a customer the Overage Rate.

   • Estimated Quantity
     As opposed to calculating mileage and overages as part of the off rental process, mileage readings may be intermittently obtained either electronically or manually during the rental period. The calculation and invoicing will be performed at every invoicing cycle. When a reading is not obtained, estimated miles for the period will be charged and reconciled at the next accurate reading. The estimated reading is obtained by using the closest to date reading. If this doesn't exist, you can manually enter the estimated reading in the estimated quantity field in the scrolling window. If a value is entered for the total overage quantity, the overage quantities and estimated values in the scrolling window will be cleared and disabled.

   • Allow Roll Forward
     Mark this checkbox to let the system automatically adjust the invoicing frequency of a rental period that lasts longer than expected. Choosing to Allow Roll Forward also enables the following checkbox:

   • Auto Adjust Rates
     Mark this checkbox if you do not want to credit back the customer if the new rate is cheaper than the cost of the rental at the previous rate. See Setting Up Roll Forward Invoicing for more information.

   • Use Lowest Rate
     Mark this checkbox to use the lowest rate set up for this piece of equipment, regardless of what rate is currently assigned to the agreement. The system will perform calculations for all possible rates and use the lowest one when invoicing.

5. Add insurance, markdowns, and taxes to the agreement, as necessary. See Entering Additional Details.

6. Enter account distributions if necessary. See Rental account distributions for more information.

7. Select Save. The Rental Agreement Line Entry window clears. Close this window to return to the Rental Agreement Entry window. Notice that the agreement lines you enter appear on the Rental Agreement Entry window. To select a line for editing, double-click on the line on this window; the Rental Agreement Line Entry window re-opens.

Step 4: Enter Miscellaneous Lines

If you need to include additional items along with the piece of equipment, you can do so using the Rental Agreement Miscellaneous Entry window. You cannot include lot, serialized, or discontinued items on an agreement. You can include non-inventory items.

1. From the Rental Agreement Entry window, select the Misc. Entry button to open the Rental Agreement Miscellaneous Entry window.
2. Complete the following fields.
   • Item Number
     Enter the inventory item to be included on this booking.
   • Item Qty
     Enter the item quantity.
   • U of M
     Enter the unit of measure.
   • Site ID
     Fills automatically with the current site of the item. If the quantity entered is greater than what is "on hand," the Rental Item Shortage Options window will open. Use the Rental Item Shortage Options window to select to sell the balance or override the shortage. If there are no more of this item remaining after rental, you must select Override Shortage. Select OK.
   • Price Level
     Fills automatically based on the item record (Item Maintenance window). This is the price level associated with the price rate.
   • Comment ID
     Select a comment ID.
   • Assign to Equipment
     Enter the equipment ID of the piece of equipment associated with this item.
   • Inventory
     Fills account number automatically based on the item record (Item Maintenance window).
   • Cost of Sales
     Fills account number automatically based on the item record (Item Maintenance window).
   • Sales
     Fills account number automatically based on the item record (Item Maintenance window).
   • Markdown
     Fills account number automatically based on the item record (Item Maintenance window).
   • Unit Price
     Fills the unit price automatically, based on the price level of the item (Item Maintenance window).
   • Unit Markdown
     Calculated based on the booking header, if the header contains a unit markdown amount. Use the expansion button to change a percentage to a dollar amount, or vice versa.
   • Extended Price
     Calculated as the Unit Price multiplied by the Item Quantity.
   • Line Total
     Calculated as the Unit Price minus the Unit Markdown, multiplied by the Item Quantity.
   • Unit Cost
     The current cost of the item from the item record (Item Maintenance window).
   • Extended Cost
     Calculated as the Unit Cost multiplied by the Item Quantity.
   • Tax Source
     Fills automatically from the Sales Tax Option on the item record (Item Maintenance window).
   • Tax Schedule ID
     If the source is Taxable, select a tax schedule.
   • Calculated Tax
     The total tax amount, calculated by the Tax Source, Tax Schedule ID, and Line Total.
   • Misc. Line
     Displays the line number for the miscellaneous entry.

   • Linked Line
     Displays the current line number from the line entry window. You can enter or select a different line to link the entry to. For information on linking lines, see About Line Linking.
     

3. Select Save to return to the Rental Agreement Entry window. The miscellaneous lines you entered appear on the Rental Agreement Entry window. To select a line for editing, double-click the line on this window; the Rental Agreement Miscellaneous Entry window re-opens.

Step 5: Place the Equipment On Rent and Create a Transport Request

Using the On Rental Entry window, you can place equipment on rent and create a transport request. If you have multiple pieces of equipment going to the same place, you can create one transport request for all items with the push of a button.

Placing the Equipment On Rent

1. From the Rental Agreement Entry window, select the On Rental button to open the On Rental Entry window. Most of the fields on this window fill from the agreement and are initially displayed by Agreement No. You can change the Display By method by choosing a different radio button, but when you do, the window clears and you need to re-enter information.
2. Mark the On Rental checkbox. The Date fills in automatically with the Rental From date, from the agreement. If the window is displayed by Agreement No., you can select all lines for that agreement by choosing the first line, holding down the SHIFT key, then choosing the last line in the list. This way, you can select an "on rental" day for all lines at once.
3. Enter a Meter Reading, if necessary.

Creating a Transport Request

1. To create a transport request, select the Transport icon in the Transport Number field. A transport request is automatically generated and a transport number fills into the field.
2. Select Process.

For transport requests created from rental agreements to be billed on the rental invoice, you must run the transport invoicing process first. No invoice is generated, but billable amounts are added automatically to the rental agreement invoices. Make sure that all on rent, off rent, and standdown dates have been recorded before generating invoices.

To continue the transport process, proceed with scheduling the transport, dispatching and delivering the transport, and creating the transport invoice. See Transport for step-by-step procedures.

Step 6: Enter Standdown Dates

Placing Equipment on Standdown

If you know a piece of equipment will be unavailable for a certain period of time, you can enter standdown dates from the Rental Agreement Entry or Rental Agreement Line Entry windows. If you have multiple pieces of equipment on a rental agreement, but you only need to enter a standdown for one of those pieces, you can do so from the Rental Agreement Line entry window, as shown below.

1. From the Rental Agreement Entry window, double-click an agreement line to open the Rental Agreement Line Entry window.
2. Select the Standdown button to open the Rental Standdown Numbers window, with the agreement and line number auto-filled.
3. Select New to open the Rental Standdown Agreement Lines Entry window.
4. Double-click an agreement line to open the Rental Standdown Entry window, with the cursor on the From Date field.
5. Enter From and To dates to cover the duration of the standdown.
6. Enter a Reason for the standdown, if necessary.
7. The Standdown U of M fills automatically from the Rental U of M on the agreement line. Enter a standdown quantity, if necessary. The Credit Amount is calculated automatically.
8. Select Save. Close the window, then save and close the Rental Agreement Line Entry window. The standdown amount appears as a subtotal in the Rental Agreement Entry window after the agreement has been invoiced.

Inactivating Equipment for Rental

You can inactivate a piece of equipment for rental, either indefinitely or over a specific period of time. When equipment is inactivated, it cannot be placed on rent. If the equipment is already on rent when the inactivation period begins, the agreement can be processed to completion, but the On Rental date cannot be changed.

1. Select Cards > Equipment > Equipment Manager, and select an Equipment ID.
2. Select the Rental Inactivation tab, and mark the Inactivate for Rental checkbox.
3. Select Save.

Setting a Period of Rental Inactivation

When you specify a date range for a piece of equipment to be inactive, the equipment cannot be placed on rent during this period.

1. Select Cards > Equipment > Equipment Manager, and select an Equipment ID.
2. Select the Rental Inactivation tab. In the scrolling window is a list of any existing rental inactivation periods for this equipment; you can edit any rental inactivation period at any time.
3. Enter a Start Date and End Date for the inactivation period. You must enter a date in both fields, and the Start Date must occur before the End Date. Multiple rental inactivation periods for the same equipment cannot overlap.
4. Select Insert >>. If there are no conflicts with this inactivation period, the start and end dates populate into the scrolling window. If the rental inactivation period interferes with any expected rental dates from a booking or agreement, a warning message appears:
5. Select OK, and if you are sure you want to inactivate the equipment for this period, select Insert >> again. The rental inactivation period can overlap the dates of a rental agreement; however, you will not be able to put the equipment on rent during an inactive period.

Determining Projected Income for an Agreement

When you enter into a rental agreement with a customer, you can have the system project what income you will eventually obtain with that agreement.

1. Open an agreement.
2. Select the Projected button at the top of the window to open the Rental Agreement Projected Income window.
3. Select OK to close the window.