Connect Usage or Consumption Meters to a Rental Agreement Line

In this document it is explained how you connect a usage or consumption meter to a rental agreement line with a serialized item. It is possible to add usage meter or consumption meters automatically or manually when you create the agreement line.

Meters

When renting out an equipment, it is common to bill based on hourly usage, that is a usage meter. In some cases, the regular usage per shift is included in the rental rate and only over usage is billed to the customer. In other cases, both regular usage and over usage is billed.

It is also common that rental equipment has fuel or oil level meters that need to be billed based on the customer's consumption during the rental period, that is a consumption meter.

It is possible to have several consumption meters connected to an item and agreement line, but it is only possible to have one usage meter.

If an item is set up for a consumption meter, the agreement line automatically gets an additional charge to register information about check out and check in quantity of, for example, fuel.

If an item is set up for usage meter, the agreement line automatically gets an additional charge and meter information connected to register information about the meter readings and to charge the customer if the equipment is overused.

There are three different price schedule types that determines how the meter and over usage is calculated when invoicing the rental line.

These price schedule types are described in detail in Calculation of Rental Usage Meters. This is a short description of each of them:

  • Price schedule type 14. Reconciliation of agreed meter quantity every day. Any over usage is charged when invoicing the rental agreement line without comparing the dates on meter reporting with invoicing period.
  • Price schedule type 15. Reconciliation of agreed meter quantity only once, and that is after the equipment has been returned. Any over usage is calculated and charged when creating the final invoice for the rental agreement line.
  • Price schedule type 16. Reconciliation of agreed meter quantity per invoicing interval. Any over usage during the invoice period is calculated and charged when invoicing the rental agreement line.

When configuring a contract item for usage meter, one of these price schedule types must be selected.

Outcome

A contract item is created to be used for usage meter or consumption meters. Configuration is done to connect a usage meter or consumption meter, automatically or manually, to a rental agreement line.

When a usage meter or consumption meter is connected to the agreement line, this means meter readings must be performed during check out and check in of the agreement line. A usage meter can also be registered while the equipment is on the customer site.

The meter reading information is used when invoicing the agreement line.

For more information about the usage meter reading calculation during invoicing, see Calculation of Rental Usage Meters.

These tables are updated when a meter is connected to an agreement line:

  • 'STR header table' (STAGHE)
  • 'Additional charges per agreement line' (STADCH)
  • 'Rental agreement meter price schedule, header' (STMPSH)

Before you start

The item must exist in 'Item. Open Service Supplement' (SOS001).

Follow these steps

To connect a usage meter or consumption meter manually or automatically to an agreement line, a contract item must exist.

Contract items are used to invoice rental rates, delivery charges, and other additional charges. The contract items are used to describe what should be invoiced and can also be used as accounting objects to create coding for rental rates.

All items having the same usage meter or the same consumption meter can use the same contract item.

Follow these steps to create a new contract item to be used for a usage meter or consumption meter:

  1. Start 'Contract item. Open' (SAS450).
  2. Specify a contract item ID and use option 1='Create' to create a new contract item or option 3='Copy' to copy an existing contract item.
  3. Specify a name and 'Basic U/M' for the meter. For usage meter it is normally hour and for consumption meter it can be liters. Specify status 20-'Definite' and set 'Serv exp cat' to 9 on the E panel. Adjust other parameters as needed. Press Enter.
  4. Set 'Price type' to 5 on the F panel if the contract item should be used for a usage meter. Set 'Price type' to 0 if the contract item should be used for a consumption meter.

    Adjust other parameters as needed. Confirm with Enter until you are back to the starting panel.

  5. Steps 5 to 8 are only valid for usage meters:

    Use related option 12='Mtr price sched' in (SAS450) to open 'Contract Item. Update Meter Prices' (SAS451).

  6. Specify a contract item and set price schedule type to 14, 15, or 16. Use option 'Create' to get to the E panel.
  7. Specify 'Agr total qty' and 'Over usg price' on the E panel. Specify 'Agr mtr unit prc' if the allowed hours should be charged. These values are used if no meter price list exists when the agreement line is created.
  8. If over usage price and agreed quantity should instead be retrieved using the price list, this is configured in 'Rental Rates. Enter Meter Price' (STS124). See Rental Meter Price List.

Follow these steps to configure the item for usage meter reading:

Note: These steps are not required if you are only using a consumption meter.
  1. Ensure the item is configured for meter reading in 'Item. Open Service Supplement' (SOS001).

    On (SOS001/F), select the check boxes for 'Meter item', 'Act meter used', and 'Inv meter used'. You can only have one rental meter connected to an item, so only the first check box for 'Act meter used' and 'Inv meter used' needs to be selected.

  2. Open 'Item. Enter Meter Information' (SOS003), using related option 14='Meter info' in (SOS001).

    Create a record for the item, or ensure the settings are correct on (SOS003/E) if the record already exists. It is important that the fields 'Bom' for 'Inv mtr I1' and 'Total mtr' have the value M1 because the invoice meter and total meter should be based on the actual meter M1.

  3. Open 'Item. Connect Meter' (MMS004) to connect the meters that are to be used to record any usage of the item. These meters are generic for this item and not specific rental meters. All meters must exist in (MMS004), but to specify it as a rental meter, it must also exist in 'Meter Per Item. Connect Rental Meter' (STS460), see next step.
  4. The meter to be used for calculating rental meter and charging over usage through rental invoicing, is connected in (STS460).

    Open (STS460), specify the item number and meter. Use option 1='Create' to add the record.

    You can only have one type of rental meter per item number.

Configure meters for the agreement line

When the initial setup is done, you can configure a usage meter and a consumption meter to be automatically connected to the agreement line, or manually added to the agreement line.

Select from these alternatives:

  • Configure usage meters to be automatically connected to agreement line.
  • Configure consumption meters to be automatically connected to agreement line.
  • Add usage meters or consumption meters manually to agreement line.

Configure usage meters to be automatically connected to agreement line

Follow these steps to automatically connect meter information to the agreement line when this item is used on an agreement line:

  1. Open 'Contract Item. Connect to Item' (SAS460), using related option 11='Contract items' from (SOS001).
  2. Select the contract item and select option 1='Create'. Press Enter on the E panel to create the record.

    This contract item is connected to the additional charge of the usage meter when an agreement line is created.

Configure consumption meters to be automatically connected to agreement line

Follow these steps to automatically connect a consumption meter charge to the agreement line when this item is used on an agreement line:

  1. Start 'Additional Charge. Connect to Item' (STS590/B).
  2. Select an item number and a contract item, and then select option 1='Create'.
  3. Specify record type as 7, which specifies it as a charge for consumption meter.

    Verify the information in the 'Check-out quantity' field and edit if needed.

    This value is useful, for example, if the equipment always starts with a full fuel tank.

    Check-out quantity can be manually changed when the consumption meter is reported during the delivery of the agreement line.

  4. Press Enter to finish and return to the B panel.

Add usage meters or consumption meters manually to agreement line

Follow these steps to manually add usage meters or consumption meters to an agreement line:

  1. Start 'Rental Agreement. Open' (STS100).
  2. Select the agreement you want to add a meter for.
  3. Use option 11='Lines' to proceed to 'Rental Agreement. Open Lines' (STS201).
  4. Select an agreement line.
  5. Use option 15='Additional charge' to proceed to 'Rental Agreement. Connect Additional Charge' (STS103/B).
  6. Select a line suffix, record type, and contract item. Select option 1='Create' to proceed to the E panel.

    A consumption meter must be set up with suffix 73 and record type 7. A usage meter must be set up with suffix 70 and record type 6.

  7. Verify the information in these fields, and edit if needed:
    • 'Charge'
    • 'Order quantity basic U/M'
    • 'Basic U/M'
  8. If needed, specify an accounting control object.

    The field is user defined but is often used to control account entries.

  9. For a usage meter, use option 11='Mtr prc sch hdr' to proceed to 'Rental Agreement. Update Meter Prices' (STS121/E).
  10. If needed, edit the information in these fields:
    • 'Agreed total quantity'
    • 'Agreed meter unit price'
    • 'Over usage price'
  11. Press Enter to return to (STS103/B).

If a usage meter is connected to an agreement line, the line is marked with an asterisk (*) on (STS201/B1).

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