Setting up Rent by Hour

Background

This document describes how to define rent by hour. The rate per hour is defined in 'Serv Price List. Enter Rental Rates' (STS120/E).

If needed, set up stepped pricing using 'Rental Rates. Enter Stepped Price' (STS123/E) invoked by option 11-Stepped Pricing.

Price list management

In 'Serv price List. Enter Rental Rates' (STS120/E) the start and end times of the day is defined on the order type, and stored in the order type table STAOTP. This setting is made on the (STS020/E panel). If rate type 5 is selected, these fields are mandatory, and rate type 5 will not work unless these values are defined.

Rate type 5 may only be used with No. shifts = 1, as the defined start and end times for a day define the number of hours to invoice per day. The minimum rental type 3-Number of hours is introduced on the order type, and will be defaulted to the agreement. Minimum rental type 3 can only be used with this rate type. When minimum rental type 3 is selected, the value of the field ‘Minimum rental period’ will be interpreted as hours.

Agreement Entry in (STS201/B), valid from and to dates is complemented with the time fields Start time FVTM and End time EVTM. The time fields are only regarded when using rate type 5. By default, these fields are blank. When using rate type 5, the time fields are mandatory. When the agreement is terminated, the field Termination time TETA is used in addition to Termination date TEDA. This field can either be manually entered, or updated upon equipment return (depending on agreement order type setting Termination).

When creating a line, the fields Daily rate PDAP, Net daily rate PDAN and Additional daily rate ADDR are calculated by multiplying the hourly rate by the number of hours per day (defined by the start and end times of day, specified on the agreement order type).

Invoicing

When invoicing a rental agreement line with rate type 5, the number of hours is counted. Number of hours is equal to the number of days used, multiplied with number of hours per day (calculated from rental day start/end on the order type). An adjustment is then made for the start/end time of the rental period. Since the first and last day might not be full, the number of hours rented during these days is explicitly calculated. The calculated number of hours is rounded off upwards, since only whole hours are invoiced. The field Hours used UHRS in the rental agreement line file STAGLI is used when rate type is 5, to keep track of the accumulated number of previously invoiced hours. It is the equivalent of the field Days used UDAY that is used in a similar way for the other rate types.

Example: Rental hours is 8:58 to 10:10 during one day.

For this day, 2 hours is invoiced since 10h 10m – 8h 58m = 1h 12m, rounded off upwards to 2h.

When fetching the start and end date and time of the period to invoice, the same settings that apply to other rate types are used (e.g. the Termination, Invoice from delivery agreement order type settings).

Credit of invoice

If rate type 5 is used, Hours used, UHRS is rolled back instead of Days used UDAY.

Limitations

Follow these steps

  1. Start 'Rental Agreement Order Type. Open' (STS020/E).

  2. Enter all necessary agreement details and include the following mandatory fields for rent by hour:

    Field Value
    Rate type Must be set to 5 - Hours
    No. shifts Must be set to 1
    Rental day start/end Enter a range of the hours when rental is possible, for example, 7.00 – 17.00
  3. Click Next.

Outcome

When invoicing a rental agreement line with rate type 5, the number of hours is counted.

Setup

  1. In 'Serv price List. Enter Rental Rates' (STS120/E) the rate per hour must be entered.

  2. If needed, set up stepped pricing using 'Rental Rates. Enter Stepped Price' (STS123/E) invoked by option 11-Stepped Pricing.

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