Add Rental Product Class

Search window -> Product Class field -> Product Class Search -> ADD button -> Add Rental Product Class

When new rental products are being added, sometimes a new Group and/or Class are also required if the Rental Product # Mask defined in the Company Inventory Parameters, requires the Group or Class to be part of the product #.

From the Assign Product Number in the Product Class Search window, click on the ADD button to add a rental class on-the-fly.
The ability to add new classes can be controlled at the operator level according to whether the Security Role that is assigned to the Operator allows access to Rental Product Classes.

The prompts are:

PRODUCT CLASS
The next available Product Class # displays. This number can be over-typed.
To avoid URL errors the 5 special characters "/&?%+"are not allowed in the numbering sequence when creating new Product Classes.

DESCRIPTION
Enter the description for this Product Class.

ALT. LANGUAGE DESCRIPTION
Enter the Alternate Language Description.

ADDITIONAL INFORMATION
Window to access the additional information fields, or click the ACCEPT button to accept the defaults as setup in Product Class Defaults and close the Add Product Class window.

These additional fields are:

TAXES
There are three tax processing methods, each of which impacts this product class differently.
Refer to Tax Maintenance Overview to review the regulations determining the tax selection using the either taxing method.
  • Standard Taxing
    For the standard simple tax processing that handles two tax codes. the prompts in the window are:
    TAX CODE 1
    If your firm is using standard taxing, enter the tax code for TAX 1, or select it from the drop-down list provided.
    In Canada, Tax 1 is generally GST or HST. In the United States, Tax 1 is State Sales Tax SST.

    TAX CODE 2
    For standard taxing, enter the tax code for TAX 2, or select it from the drop-down list provided.
    In Canada, Tax 2 is generally PST. In the U.S.,Tax 2 is generally County, Municipal or Local tax.

  • Enhanced Taxing
    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.

    TAX EXEMPTIONS
    This field provides a window to enter any additional tax exemptions for products in this Product Class as explained in Tax Exemptions By Class, where this information can also be accessed and updated.
    Class exemptions apply regardless of Site, Customer, or Division taxes.

COST OF GOODS SOLD
Enter the typical Expense account to be debited with the cost when rental equipment is sold, or select it from the window, searching by account number or account description.

REVENUE ACCOUNT
Enter the typical Rental Revenue account to be credited with the rental revenue, or select it from the window, searching by account number or account description.

INVENTORY ACCOUNT
Enter the typical rental inventory asset account to be debited with the purchase of new equipment, or select it from the window, searching by account number or account description.

SALE OF RENTAL ACCOUNT
Enter the typical Sales Revenue account to be credited with the revenue when rental equipment is sold, or select it from the window, searching by account number or account description. (This can be the same account as the COST OF GOODS SOLD above, but generally they are different accounts.)

CROSS STORE CHECK-IN ACCOUNT
When rental products are returned to a different division, from the "out" division, a portion of the revenue can be assigned to the returning division. This percentage can be setup in the Divisional Return Parameters.
Enter the Revenue Account to be credited with the portion of the rental to be allocated to the return division, or select it from the window, searching by account number or account description.

REVENUE POSTING BY TAX CODE
Skip this field, if the revenue should be posted according to the Revenue Account selected above. This is the standard method.

In special situations, setup the Revenue Posting By Tax Code in the window.
If an invoice is posted using a Tax Code listed here, it will post both the Rental Revenue and the Sale Of Rental Equipment Revenue to the corresponding Revenue account in this window. If the tax code is not listed here, the Revenue will be posted to the standard Revenue Accounts selected for the Product Class on the main Screen instead.

TAX CODE
Select a Tax Code from the drop-down list. The description displays as setup in Tax Codes.
REVENUE ACCT#
Select a G/L Revenue Account from the window. All invoices with this tax code will post the Revenue to this G/L Account.

PRORATE PARTIAL DAYS
Select one of the following partial day rate calculation options from the drop-own list:
  • Y (YES) if this product class should have the rental rates for partial days prorated.
    For example, if equipment is out for 2 1/4 days your firm would charge 2 days plus a portion for the third day.
    This portion for the partial day rate is determined by the prompt O/T HOURS IN A DAY.

  • H (HALF-DAY) if equipment in this product class should have the rental rates for partial days always prorated by the half 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 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 time must be greater than the hours in a calendar day, in order to effect a reduction in the billing of equipment in a class flagged to bill Full days.


OVERTIME HOURS IN A DAY
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 6, 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 x $60) + (1/6 x $60 x 3 hours)
    =120+30
    =150

Prorate Partial Days = H (HALF-DAY):
Enter the number of hours equal to half a 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.

Prorate Partial Days = N (NO):
This prompt will be ignored by the rate calculation as partial days are not prorated for this class.
Press <ENTER> to accept.

Prorate Partial Days = F (FULL-DAY):
This prompt will be ignored by the rate calculation as partial days are not prorated for this class.
Press <ENTER> to accept.


OVERTIME DAYS IN A WEEK
This assigns the number of overtime days in a week. This applies after the first week.
If this field is blank, it reverts to the daily rate.

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.

For example: An Air Compressor rents for $240 a week for 1 week and 2 days. The charge totals:

    (1 Week x $240) + (2 Days @ 1/5 of $240)
    = 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.
If this number equals a fraction, round up or down.

OVERTIME DAYS IN A MONTH
This assigns the number of overtime days in a month (or 4 Weeks). This applies after the first month (or 4 Weeks).
If this field is blank, it reverts to the daily/weekly rate.

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 month.

For example: An Air Compressor rents at $720 for 4 Weeks is out for 6 weeks. The rental charges would be calculated as:

    (4 Weeks @ $720) + (14 Days @ 1/20 of $720)
    = 720 + (14 Days * $36)
    = 720 + 504
    = 1224

WITH DAYS IN A WEEK OF
This assigns the number of overtime days in a week, when the rental is over one month (or 4 weeks). This applies after the first month (or 4 Weeks).
If this field is blank, it reverts to the daily/weekly rate.

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 DAYS IN A WEEK.


CHARGE DAMAGE WAIVER
Check this box if products in this Product Class are eligible for Damage Waiver.
Uncheck this box if products in this Product Class should not be charged Damage Waiver.

ALWAYS BILL DAILY RATE
Uncheck this box if the rental items in this class have standard rental rates, i.e. day, week and month (or 4 weeks).
Party items which have event rates should also set this field to N (NO).

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.


CYCLE BILL INTERVAL
Select one of:
  • Click 28 Day if the items in this class should be billed on a 4 Week Basis. When equipment is out for one year, 13 invoices would be issued to the customer, 1 invoice every 4 Weeks(28 days).

  • Click 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).


USE DEFAULT RATES
Check this box if this Product Class follows the Company Default Rate Structure.
Click the icon to view the default rates for the company as setup in Company Defaults.

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.


PRODUCT CLASS RATES
Window to view and setup the default rates to be used for this Product Class as outlined in Rate Structures.
  • If Use Default Rates is checked, then the default rates will now appear on the screen. Make any changes required at this time, or press ADD Key to enter any special rates for this class.
  • If Use Default Rates is NOT checked, then the window will be empty. Press ADD Key and setup the rate structure to be used for this Product Class.
    Contact Texada Support if any questions about the rate structures arise.

DEFAULT MARKUP %
Enter the markup percentage used to calculate the list price from the cost of the inventory in this Product Class. e.g. Enter 30% as 30.00
A 30% Markup is calculated as COST * (100 + 30.00)

Alternatively, window to enter a desired Margin Amount to be used to calculate the Markup %, as outlined in Markup Based on Margin Calculator .


RERENT CLASS
Check this box if this class contains re-rented (sub-rented) equipment only.
Each time re-rented equipment is invoiced, the software automatically tracks the revenue in Re-Rental Inquiry. When the Re-Rental costs are entered in A/P Invoices and A/P Invoices By P.O. and allocated against the same product, the profit on the re-rental can be determined.

Uncheck this box if this product class does not represent re-rent products.


Finished?
Click OK to accept the Additional Class Information.

Finished?
Click ACCEPT to accept the new Product Class or CANCEL to abort.
Topic Keyword: ADDCLASR
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