Entering Rental Agreement Lines

This document explains how you enter rental agreement lines.

Use this document when you want to enter a rental agreement line for individual items or equipments.

Rental items in a rental agreement line can also be entered by:

Outcome

By creating an agreement line:

The rental agreement lines are used to:

The following tables are updated, when rental agreement lines are entered:

Before you start

Activity description - Variant A

Variant A describes how rental items are entered in rental agreement lines.

Note: For entering rental agreement lines using the normal method, line type 5='Hire' must be used.
  1. Select Rental Object

    A rental object is selected in 'Rental Agreement. Open Lines' (STS201/B), which is reached using option 11='Lines' in 'Rental Agreement. Open' (STS100) and information such as, warehouse, line type, rate type, order quantity, number of shifts, supplier details, charge, credit information, etc., can be added to the rental agreement line.

    For more information, see Line type, Rate typeand Supplier details.

  2. Enter Agreement Validity and Invoicing Details

    You enter validity and invoicing details for the rental agreement line in 'Rental Agreement. Open Lines' (STS201/B). Validity and invoicing details such as, customer site, payer, valid from, valid to, reason code, whether service order will be automatically created, whether the invoiced has to be on hold, the invoice interval, next order date, etc., can be added.

  3. Enter Price Information

    You enter pricing information in 'Rental Agreement. Open Lines' (STS201/F). Pricing details are used while invoicing rental agreement lines. Pricing information, such as, number of shifts, tax code, rate type, price list, number of days/weeks, rate factor, rental type, rental period, minimum rental amount, cost price, etc, can be entered. It is possible to invoice everything that has not already been invoiced up to the next order date.

    For more information, see Price information.

  4. Enter Delivery and Return Information

    You enter delivery and return information in 'Rental Agreement. Open Lines' (STS201/H).

    Each agreement line has at least two distribution orders (DO) connected to it - delivery and return. The picking and delivery for the rental agreement must be carried out on the connected DOs in 'Picking List. Report' (MWS420).

    For more information, see Delivery and return information.

Activity description - Variant B

Variant B describes entering rental agreement lines using the in lieu process.

  1. Select Rental Agreement Line

    Using option 11='Lines' in 'Rental Agreement. Open' (STS100), information such as, warehouse, line type, rate type, order quantity, number of shifts, supplier details, charge, credit information, etc., can be added to the rental agreement line.

    For more information, see Line type.

  2. Check Availability for Up/Down rent (SOS550)

    An Up rent or Down rent takes place when a customer requests for a specific individual item or equipment, which the rental company is unable to supply. The rental company rents out a smaller (Down rent) or a larger capacity item (Up rent), which is still capable of performing the required task, to the customer.

  3. Select Up/Down rental Object (SOS550)

Activity description - Variant C

Variant C describes entering the rental agreement lines using the in lieu process.

  1. Enter in lieu Rental Object

    In lieu indicates whether equipment is used instead of another equipment. The in lieu options are indicated in two different methods while entering rental agreement lines:

    • The in lieu option is used for an existing rental agreement line, using options 21='Down rent' or 22='Up rent' available in 'Individual Item. Display' (SOS550).
    • The in lieu option is indicated while entering rental agreement lines by entering a value for up renting or down renting (1='Down rent' or 2='Up rent') in 'Rental Agreement. Open Lines' (STS201/E).

    For more information about In Lieu, refer to Replace Item on Rental Agreement Lines.

  2. Enter Rental Object to be Up/Down Rented

    For up renting or down renting an item or equipment:

    • The order quantity must be one individual item or equipment.
    • The rental agreement line type must be 5='Hire' in 'Rental Agreement. Open Lines' (STS201).
    • The status of the DO line that is connected with the rental line must be less than or equal to 33='Soft Allocated'.
  3. Enter Agreement Validity and Invoicing Details

    You enter validity and invoicing details for the rental agreement line in 'Rental Agreement. Open Lines' (STS201/E). Validity and invoicing details such as, customer site, payer, valid from, valid to, reason code, whether service order will be automatically created, whether the invoiced has to be on hold, the invoice interval, next order date, etc., can be added.

    For more information, see Agreement validity, invoicing details, Address information and Delivery and return information.

  4. Enter Price Information

    You enter pricing information in 'Rental Agreement. Open Lines' (STS201/F). Pricing details are used while invoicing rental agreement lines. Pricing information, such as, number of shifts, tax code, rate type, price list, number of days/weeks, rate factor, rental type, rental period, minimum rental amount, cost price, etc, can be entered. It is possible to invoice everything that has not already been invoiced up to the next order date.

    For more information, see Price information.

  5. Enter Delivery and Return Information

    You enter delivery and return information in 'Rental Agreement. Open Lines' (STS201/H).

    Each agreement line has at least two distribution orders (DO) connected to it - delivery and return. The picking and delivery for the rental agreement must be carried out on the connected DOs in 'Picking List. Report' (MWS420).

    For more information, see Delivery and return information.

Activity description - Variant D

Variant D describes entering the rental agreement lines using packages.

Process - Variant D

In this scenario, a package is selected when entering rental agreement lines in 'Rental Agreement. Open Lines' (STS201/B). A Package Structure contains a package header and package lines. Each package header line holds the package price and the price is automatically distributed to the package lines, as defined in the package structure. Packages are created/displayed in 'Rental Package Structure. Open' (STS455/B) and package lines are created/displayed in 'Rental Package. Open Line' (STS456).

  1. Select Package

    For entering rental agreement lines using packages, line type 4='Package ID' must be used.

    For a package ID to be created, the package must exist as a service expense in 'Service Expenses. Open for Task' (SOS408).

    The total of these package lines, and any included line charges, should then equal the package price as held on the package header, providing of course that a full invoice period for all lines is being invoiced.

    Note:  It is not possible to add or delete lines to the package or change the delivery address, after the package lines are added to the rental agreement. However, the pricing of the package can be updated or changed.
  2. Enter Agreement Validity and Invoicing Details

    You enter validity and invoicing details for the rental agreement line in 'Rental Agreement. Open Lines' (STS201/E). Validity and invoicing details such as, customer site, payer, valid from, valid to, reason code, whether service order will be automatically created, whether the invoiced has to be on hold, the invoice interval, next order date, etc., can be added.

    For more information, see Agreement validity, invoicing details.

  3. Enter/update Package Price

    You enter pricing information in 'Rental Agreement. Open Lines' (STS201/F). Pricing details are used while invoicing rental agreement lines. Pricing information, such as, number of shifts, tax code, rate type, price list, number of days/weeks, rate factor, rental type, rental period, minimum rental amount, cost price, etc, can be entered. It is possible to invoice everything that has not already been invoiced up to the next order date.

    For more information, see Price information.

  4. Enter Delivery and Return Information

    You enter delivery and return information in 'Rental Agreement. Open Lines' (STS201/H).

    Each agreement line has at least two distribution orders (DO) connected to it - delivery and return. The picking and delivery for the rental agreement must be carried out on the connected DOs in 'Picking List. Report' (MWS420).

Line type

The line type is by default set in the agreement order type. It can, however be changed for each line:

Line type Description
1 Sales line that generates a purchase order with delivery to the yard warehouse.
2 Sales line that generates a purchase order with delivery directly to the customer site
4

Package lines generate the package price that will be added to the rental agreement. If the line type is '4', the item identity will be validated against the new package structure header. Packages must be predefined in 'Rental Package Structure Header. Open', to be used for entry on a rental agreement.

Rental line types 5, 7 and 8 are allowed as package lines.

Sales line types 1, 2 and 6 are not allowed as package lines.

5 Rental from stock (serialized and non-serialized items) that generates two distribution orders, one for delivery and one for return.
6 Sale from stock that generates a distribution order for delivery to the customer site.
7 X-Hire line (cross-rental) that generates a purchase order with delivery to the yard warehouse and two distribution orders, one for delivery and one for return.
8 X-Hire (cross-rental) line that generates a purchase order with delivery directly to the customer site and a distribution order for return to the customer.
9 Involuntary sales created from a rental line.

Rate type

The rate type controls how the price is retrieved from the price list and, later, how the rental rate is calculated on the invoice. Rate types include:

Rate type Description
1 Day
2 Week
3 Month
4 Period
9 Period plus best price

Number of shifts

The rental price in the price list can vary per price category depending on the number of shifts. Shifts include 1 = 1 shift, 2 = 2 shifts and 3 = 3 shifts.

Supplier details

When you enter line types 1, 2, 7 or 8, the supplier is automatically retrieved from the Item or Warehouse record. If necessary, you can override this supplier by entering a different one in the field.

Agreement validity, invoicing details

Proceed as follows:

  1. If necessary, change the information in the 'Customer Site', 'Payer', 'Valid from', and 'Valid to' fields. If a customer number or the address number of a customer site or payer is changed, the name and address fields are automatically updated with the defaulted values from the customer master on the G panel.

  2. If necessary, change the reason code. If there is more than one individual item on the agreement and the reasons differ as to why the customer needs the individual item, you can change the reason code on each agreement line.

  3. Choose whether service orders will be created automatically for the returned rental identities. This happens if the 'Auto crt SO' flag is set to 1. Service orders can be manually created if the flag is set to 0.

  4. If necessary, change the invoice interval. The invoice interval is defaulted from the agreement order type and controls how the invoice range is calculated.

  5. If necessary, change the next order date. The next order date is calculated based on the invoicing method and payment terms. You can enter the next order date in the agreement header, site or agreement line. However, the date entered in the agreement line is what the system uses to choose the lines that will be invoiced.

  6. Invoice at best rate groups agreement lines, fulfilling certain conditions, together so they will be invoiced at the same time. This functionality is valid when the order type setting has:

    Best price method = 2-Graduated,

    Rate type = 9-Best price,

    Invoice at best rate=1 and when the rental agreement lines have Arrears invoicing, the same Valid from date, the same Invoice range field.

  7. If necessary, change the 'Hold invoicing' field. This field is used to manually hold an agreement line from being invoiced to the customer.

  8. Press Enter to proceed to panel F.

Address information

If necessary, change the department, reference details and telephone number. The customer site, address number and payer can only be changed on the E panel.

If the site customer number is changed on the E panel, you must clear the name and address fields on the G panel to retrieve the information from the customer master. If the customer number or payer is changed, the name and address fields are automatically updated with the default values from the customer master.

Delivery and return information

Press Enter to proceed to the I panel.

Price information

  1. If necessary, change the information in the following fields:

    • 'No. shifts'

      The rental price in the price list can be different for different price categories depending on the number of shifts.

    • 'Tax code'

      The Tax Code field is displayed in 'Rental Agreement. Open Lines' (STS201/F), depending on the division setting. The Tax Code is used to retrieve approximate tax rates and to calculate the US Sales Tax.

      The Tax Code field is automatically populated for new rental agreement lines based upon the individual item and line type entered for the rental line in 'Rental Agreement. Open Lines' (STS201/B1).

      The tax code is retrieved according to the following hierarchy:

      • 'Rate/type'

        Best price (rate type 9) works in two ways, depending on how the discount model is set up. If the discount model contains discounts that can be manually changed, the only rate field for input will be 'Net period rate'. If all the discount numbers in the discount model are closed to manual entry, you will be able to quote a period rate, a weekly rate and a daily rate. When creating an invoice proposal, the system calculates the best price for the customer regardless of the method used.

      • 'Price list'

        The price list is retrieved according to the following hierarchy:

        1. Manually changed price list on the agreement header.

        2. Customer-connected price list in 'Serv Price List. Open' (STS017).

        3. Generic price list connected to customer in 'Customer. Enter Service Order info' (CRS611); all five price list fields from left to right.

        4. Price from 'Item. Connect Warehouse' (MMS002)– only applies to sale lines.

        5. Generic price list in 'Rental Depot. Open' (STS030).

        The price list can also be changed manually per line as long as the currency is the same as in the agreement currency. You determine whether the price list, net rate and discount percentage can be changed via parameters on the order type (STS020).

      • 'Days/week'

        Days per week determines how many days in a week the customer is invoiced for (that is, whether or not the weekend is included). The valid options are 5 days or 7 days.

      • 'Rate factor'

        The rate factor determines how a weekly rate is broken down into a daily rate. For example, if a machine is rented for seven days and 'Days/week' is 7, but the 'Rate factor' is 5, then the weekly price will be divided by 5 rather than 7.

  2. Specify the minimum rental type.

    The minimum rental type defines whether the period entered is the number of days or the amount. Minimum rental type 1 means that the minimum rental period is 10 days. Minimum rental type 2 means that rental amount can be used. The invoiced value is accumulated to the 'Acc hire value' field after each invoicing.

  3. If necessary, enter a minimum rental period and minimum rental amount.

    All the fields relating to minimum rental period and/or amount are defaulted from 'Item. Open Service Supplement' (SOS001/F) or from 'Rental. Agreement Header' (STS100/E), if values are not entered in 'Item. Open Service Supplement' (SOS001). Minimum rental period or amount is only applicable for rental line types 0, 5, 7 and 8.

  4. If necessary, specify a cost price per day.

    Cost price per day is set in the price list as a percentage of the daily rate and the number of shifts. The percentage is calculated against the rental rate and is displayed in this field. It is also possible to enter a value manually.

  5. Press Enter to proceed to the G panel.

Accounting dimensions

  1. If necessary, change the accounting strings for the revenue.

    This panel will normally not be in the sequence. Instead, the postings will be done automatically according to a predefined accounting setup.

  2. If necessary, change the agreement type.

    The agreement field is used to specify the service agreement type to use when the service agreement is created during checkout. A service agreement type can be specified in 'Rental Agreement Order Type. Open' (STS020/G), and this value will default to all agreement lines.

  3. If necessary, specify an accounting string for the revenues.

    This information is not usually specified here. Instead, the postings are done automatically according to a predefined accounting setup.

  4. Check the information in the 'DO delivery' field.

    This field shows the distribution order number and the line that was created to move the individual item or item on the agreement line from a yard warehouse to an on-hire warehouse (a fictitious warehouse). During a rental transaction, a distribution order for return is also created and displayed in the 'DO return' field.

  5. If necessary, change the information in the 'PO no.' and Supplier no.' fields.

    For line types 1, 2, 7, and 8, a purchase order is created for the delivery to the yard warehouse (line types 1 or 7) or directly to the customer (line types 2 or 8). This purchase order number is displayed in the 'PO no.' field. The 'Supplier number' can be entered manually for these line types to control the supplier used.

  6. Press Enter to proceed to the J panel.

Detail panel for free agreement fields

Enter values in the user-defined fields. The fields are defined in 'Meter Per Item. Connect Rental Meter' (STS460).

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