Invoicing Exchange Agreement Lines

This document explains the concept of invoicing exchange agreement lines.

Outcome

An exchange agreement line is invoiced.

An exchange agreement line is invoiced and can be sent to customers. The exchange agreement line is used to update sales statistics and history of the rental item or equipment.

Additional charges and line charges can be added to the exchange agreement line.

The following tables are affected when you invoice exchange agreement lines:

Before you start

A valid agreement (with records which are part of the exchange and ready for invoicing) must exist in 'Rental Agreement. Open' (STS100).

Purpose

The purpose of invoicing exchange agreement lines is to invoice the customer for rental items or equipments.

When

When the rental company has rented out an individual item or equipment to the customer has to be paid for the rental service.

How

Rental items or equipments on an exchange rental agreement line can be invoiced based on the following:

  1. Rental Invoicing

  2. Additional Charges

  3. Line Charges

Rental invoicing

If the rental agreement line is part of an active exchange string, the start dates and end dates of the invoicing range is calculated and invoiced accordingly. The proposal routine calculates the invoice proposal line value for the full rental period of the active exchange string. However, before the calculation values are accepted, the value will be proportioned based on the order lines actual rental period. This process has to be repeated for each exchange line on the rental agreement in order to get a total for the rental period, which is proportioned over the exchange lines, for both the rental value and accrued hours.

When an exchange agreement line, which is the last line in the active exchange string, is finally invoiced, a check for minimum rental amount is performed and invoiced accordingly.

Example – Rental Invoicing

Units/per number of days Total number of days Exchange lines
Unit 1 (exchanged after 6 days) 6 days Line 002
Unit 2 (exchanged after 8 days) 8 days Line 004
Unit 3 (exchanged after 14 days) 14 days Line 005
Full Invoice Range 28 days  

Additional charges

There are 7 types of additional charges that can be added to rental agreement lines:

Usage meter

Meter over Usage is calculated when a rental line is finally invoiced. For meter type 15, a check for accrued hours against minimum meter hours is performed when an exchange agreement line is finally invoiced. The check out reading is subtracted from the check in reading, and the result is compared to accrued hours and any over usage is then invoiced at the over usage rate.

Note: When Meter Price Schedule Type 14 is used, the calculation process remains unaltered since each unit exchanged must have a start date and termination reading and can be invoiced as normal rental lines. Similarly, the current unit on hire will be invoiced according to any readings taken up to the end date of the invoice period.

When Meter Price Schedule Type 15 is used, the Accrued Hours for the invoice period will be apportioned in the same way as the revenue, for each exchange line involved in the invoicing period. Adjustment will be made at final invoicing of a rental line to ensure Accrued Hours are not lost and are all allowed for in the final analysis of the Over Usage.

Meter over usage is calculated for a rental line, only if it is the last line in the active exchange string.

When a rental line is part of an active exchange string, the accrued hours are adjusted to ensure that meter hours are not lost when a particular unit has not been utilized against the expected meter hours. By making the adjustment to the accrued hours for the equipment and to the rental line in the Exchange String the total Accrued Hours will be calculated. This will also have effect while invoicing the last rental line in the Exchange String once that line has been terminated.

Example – Usage of accrued hours and meter

The following example highlights a rental exchange agreement:

Consumption Rent days Accrued hours
Unit 1 on rent from Day 1 - Day 10 10 days 80
Unit 2 on rent from Day 11 - Day 28 18 days 144

Assuming 8 hours per day on a 7 day basis:

Units Check out Check in Usage Accrued Over Usage
Unit1 200 250 50 80 0
Unit 2 100 300 200 144 56

Based on the above example, the customer has used a total of 250 against a total accrued of 224 and the hence the customer must be billed for 26 (56 minus 30), and not 56.

Consumption meter

The consumption meter charge will be invoiced for every exchange, even if the rental agreement has been processed previously.

Line charges

A line charge with calculation method='0' is processed only once and the line charges will not be copied or/and processed again. A line charge with any other calculation method will be processed on every agreement line.

Note: The Invoice period covering an Exchange String will form a continuous time line for the apportionment of revenue over the exchange lines, that is, continuous rental will be assumed. To achieve this, the termination date of the exchanged line will be used as the date for invoice revenue apportionment.

Information on a rental line that affects the rental price will be the same for each line in the Exchange String that are being invoiced in the rental period. If the rental price is not the same, although the revenue is apportioned, the sum of the apportionments will not be equal to the amount of the full rental period for any specific rental line. However, it must be ensured each line to be invoiced in the rental period has the same price changes made to them.

When a rental agreement line qualifies for invoicing, a check is performed to establish if the rental agreement line is involved in an Exchange String and if the Exchange String is Active for the Invoicing period.

When the revenue is proportioned over the exchange lines in the invoice proposal routine, the resulting SO for invoicing is generated with the proportioned revenue values.

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