Create Rental Agreement Lines

Outcome

This is the outcome of creating an agreement line:

• You have reserved a quantity for an item or serial to be rented out, leased, or sold to a customer.
• The item or serial is connected to a specific customer location and payer.

The rental agreement lines are used for these purposes:

• Rent out or lease out rental items, or sell consumables to the customer.
• Keep track of the rental items or equipment during the time span of the rental agreement.
• Invoice the customer.
• Up rent or down rent equipment.
• Exchange equipment.

These tables are updated when rental agreement lines are created:

• Agreement Line (STAGLI)
• Line Charges (STLICH)
• Additional charges per agreement line (STADCH)
• Stand Down Period (STAGDN)
• Documents per Agreement Line (STLIDO)

Before you start

Before you start, these settings must be specified:

• A valid agreement header must exist in 'Rental Agreement. Open' (STS100). For more information, see Define Rules for Rental Agreement Header and Define Rules for Rental Agreement Lines.
• If the item is to be rented, it must exist and have the 'Available rent' setting activated in 'Item. Open Service Supplement' (SOS001).
• To specify rental agreement lines using packages, packages must exist with status 20-'Active' in 'Rental Package Structure. Open' (STS455). For more information, see Create Package Structure Header, Creating Package Structure, and Create Package Structure Lines.

Create agreement line

In this section it is described how rental items are specified in rental agreement lines.

1. Start 'Rental Agreement. Open Lines' (STS201/B), which is reached using related option 11='Lines' in (STS100).
2. Select item and, if applicable and known, the serial number.
3. Information such as, warehouse, line type, rate type, number of shifts, and validity period is set to default values from the agreement header or the agreement order type, and can be changed on the B panel or later on the detailed panels.
   Note: Correct line type must be already set on the B panel. The line type determines whether the item is to be rented, leased, or sold to the customer. Line type 5 is to be used for a normal rental agreement.
4. Press Enter. The subsequent panels are determined depending on the set panel sequence for (STS201). The fields available on each panel depend on the line type.

   These are the panels and fields displayed using line type 5:

   • (STS201/E) – Details

     On (STS201/E), you can change settings such as 'Valid from' and 'Valid to' date, customer site, payer, invoicing details, reason code, whether work order should be automatically created, and if invoice has to be on hold. You can edit the field for item name if the rental agreement order type is configured to allow this.

     For a non-terminated rental line, the invoicing range indicates the invoicing period to be included in the next invoice run. The invoicing range is recalculated after each invoice run.

     The next invoice date is calculated based on the invoicing method and payment terms. The next invoice date entered in the agreement line is what the system uses to choose the lines that will be invoiced. If the 'Inv at best rt' setting is activated on (STS020/F) and conditions for this setting are fulfilled, the calculation of next invoice date is instead according to this setting.

     Note: If the item is set up for container management in 'Item. Connect Warehouse' (MMS002) on the on-hire warehouse, the customer site address field on (STS201/E) is mandatory. Otherwise, the field should be left blank. This value is set with a default value from the agreement header or previous agreement line, if such exists.

     Note: The 'Valid from' and 'Valid to' date and time are defaulted according to the system time zone but should be considered as the customer time zone.

     The time zone of the customer is displayed in the 'Time zone' field next to the 'Valid from' and 'Valid to' on (STS201/E) and next to 'Dely day/time' and 'Pick-up day/tm' on (STS201/H). The time zone displayed in this field is compared to the time zone of the delivering warehouse when the distribution orders are created.

     The time zone is retrieved from the customer site address ID. If no customer site address ID has been set for the agreement line (item not defined for container management), 'Place' from the customer on 'Customer. Open' (CRS610/G) is used instead.

   • (STS201/F) - Price information

     If the item is connected to a valid price list, the price list and prices are set to default values on (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 per week, rate factor, rental type, rental period, minimum rental amount, and cost price can be updated if needed.

     The price list is retrieved according to this hierarchy:

     • Manually changed price list on the agreement header.
     • Customer-connected price list in 'Serv Price List. Open' (STS017).
     • Generic price list connected to customer in 'Customer. Enter Service Order info' (CRS611). All five price list fields from left to right.
     • Price from (MMS002). This only applies to sale lines.
     • 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, using parameters on the order type 'Rental Agreement Order Type. Open' (STS020).

     The 'Rental rate method' setting in (STS020) determines if the 'Rate' or 'Net rate' field is editable for a rental line. With 'Rental rate method' 1, you can work with discounts also when a rental rate is set manually instead of retrieved from a price list.

     'Rental rate method' 1 cannot be combined with the best price or stepped price.

     When using 'Rental rate method' 1, the rental line has a price origin stored in (STAGLI). When you set a price manually in the rate field, the price origin is set to 8 (manually set price). When the price origin is 8 for the line, you can still change shift, rate type, rate factor, and days/week, but you cannot trigger the retrieval of a new price list. You cannot update the 'Price list' field.

     If the 'No. shifts' field is changed, this may also update the price because 'No. shifts' is one level in the price list structure, see (STS017).

     The rate type determines which price fields are displayed and how these prices are used during invoicing.

     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 is 'Net period rate'. If all the discount numbers in the discount model are closed for manual entry, you can 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.

     The 'Tax code' field is displayed depending on the division setting. The tax code is used to retrieve approximate tax rates and to calculate US sales tax. The 'Tax code' field is automatically specified for new rental agreement lines based on the item and line type specified for the rental line.

     All the fields relating to minimum rental period or amount get default values retrieved from 'Item. Open Service Supplement' (SOS001/F) or from 'Rental. Agreement Header' (STS100/E) if no values are specified in (SOS001). Minimum rental period or amount is only applicable for rental line types 5, 7, and 8.

     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. You can also specify a value manually.

   • (STS201/G) - Payer information

     On this panel the payer information is displayed. Some of the fields are editable.

     If customer number or the address number of a customer site or payer is changed, the 'Name' and 'Address' fields are automatically updated with default values from the customer master.

   • (STS201/H) - Delivery and return information

     On this panel the customer site information and the shipping details are displayed. Some of the fields are editable. Which fields are editable depends on the status of the agreement line and the statuses of the connected distribution orders.

     If the agreement line is to be returned to a different warehouse than the one that originally delivered it, you must change the warehouse in the return information.

     This can also be done using related option 25='Dsp line detail' on (STS201/B).

     Note: The date and time of 'Dely day/time' and 'Pick-up day/tm' are used for rental distribution order creation. 'Dely day/time' and 'Pick-up day/tm' are automatically set to the values in 'Valid from' and 'Valid to' on (STS201/E), but they are editable.

     When rental distribution orders are created, the time zone of the delivering warehouse is compared to the time zone of the customer site address ID of the agreement line to set the transaction date and time for the distribution orders. If no customer site address ID has been set for the agreement line (item not defined for container management), 'Place' from the customer on (CRS610/G) is used instead.

     Transaction date and time for the distribution orders in 'Req/Distr Order. Open' (MMS100) and 'Req/Distr Order. Open Lines' (MMS101) are displayed according to the time zone of the delivering warehouse.

     If needed, specify the responsible person. It is defined as mandatory through a parameter on (STS020/G).

     Blank = No value is proposed.

     *CUS = The proposed value for the responsible person is retrieved from the customer file.

     *SYS = The name of the current user is proposed.

     *M = Responsible person must be specified manually. No proposal is given.

     The agreement line gets the value of the responsible in the agreement head during the agreement creation. When a customer site is updated on the new or existing agreement lines (temporary and quotation status), the person responsible is retrieved again from (CRS610) depending on the customer site specified. You can also manually update the person responsible. If you change the customer site using 'Change Customer Site' (STS177), the person responsible is not updated in (STS201). Any value set as the responsible in the agreement must exist in 'User. Open' (MNS150) regardless of the configuration in (STS020).

   • (STS201/I) – Revenue accounts and reference order number

     This is the detailed panel for account entries, project order, and reference order numbers.

     Each rental agreement line has two distribution order lines connected to it – one for the delivery and one for the return. The picking and delivery for the rental agreement is done through these distribution orders using 'Rental Logistics Toolbox. Open' (STS140). A sales line only have one distribution order line and that is for the delivery.

     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 is automatically retrieved from (MMS002/E) for the cross-hire warehouse and can be manually changed if needed.

5. Adjust details. The line is now created but you can still adjust details in (STS201) using option 2='Change' for the line.

   Different related options in (STS201) can also be used, for example, to add text, add or adjust charges, or stand down.

6. Specify usage or consumption meters. You can add usage or consumption meters automatically or manually while creating the rental agreement line.

   You can automatically add a consumption meter, such as a fuel charge, by connecting the fuel charge to an item in 'Additional Charge. Connect to Item' (STS590).

   You can automatically add a usage meter by connecting a contract item in 'Contract Item. Connect to Item' (SAS460).

7. Search for available equipment. Instead of manually typing in the item number and serial number on (STS201/B) to create the line, you can also search for available equipment.

   Using function key F18 in (STS201) you open 'Rental Equipment Planning Board. Open' (STS495). Values such as warehouse, item, and dates are set to defaults retrieved from (STS201/B), if these where set before using F18. The planning board can be used to find available equipment for a certain rental period.

   Using function key F21 in (STS201) you open 'Rental Equipment. Search' (STS300). Values such as warehouse and item are set to defaults from (STS201/B), if these where set before using F18. The equipment search program can be used to find available equipment.

   The information set to default values in (STS495) and (STS300) can be adjusted to customize the search for the agreement line. If equipment is not found for the specific item, an option can be to search wider with, for example, item group or maybe for another warehouse.

8. Convert to active agreement or quotation. The status of the created line depends on if it was created on a temporary, quotation, or active agreement. To continue delivering the agreement line, the agreement must be activated. This is done in 'Rental Agreement. Create' (STS109) using F14='Crt agreement' in (STS201).

   In (STS109), you select if the agreement should be converted to a quotation or active agreement using the alternatives in the 'Crt agreement' field.

   Specify a reason code, which indicates the requirements that caused the customer to rent the equipment. A reason code can also be specified on the agreement header.

   If a deposit is connected to the agreement, this can also be invoiced from (STS109).

   The status of the agreement changes based on the selection in the 'Crt agreement' field. An active agreement is set to status 20.

   A distribution order from the rental warehouse to the on-hire warehouse (determined by the agreement order type) is generated when the agreement is activated.

   • For rental transactions, a distribution order for return of the item is also generated.
   • For sales transactions, no return distribution order is required, because the item is taken from the on-hire warehouse when the first invoice for the agreement is produced.
9. Print rental agreement. You can use the menu option to print rental quotation or agreements or you can do it during creation of an agreement in (STS109).

Up rent and down rent

In this section it is described how to create rental agreement lines using the in-lieu process.

The 'In lieu' field on (STS201/E) indicates whether equipment is used instead of another equipment. The 'In lieu' field can be set in two different ways while creating rental agreement lines:

• The in-lieu option is used for an existing rental agreement line using up or down rent option in (STS495), see steps 2-3 under Follow these steps.
• The in-lieu option is indicated manually when creating a new rental agreement line in (STS201), see step 4 under Follow these steps.

An up rent or down rent takes place when a customer requests for a specific 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.

For up renting or down renting an item or equipment:

• The order quantity must be one on the agreement line in (STS201).
• The rental agreement line type must be 5-'Hire' in (STS201).
• The status of the DO line connected to the rental line must be less than or equal to 33-'Soft Allocated'.

Follow these steps to up rent or down rent an item or equipment:

1. Start (STS201/B), which is reached using option 11='Lines' in (STS100).
2. For an existing line:

   Select the line on (STS201/B) and use related option 30='Chg with item no' to go to (STS495).

3. Find an appropriate equipment in (STS495) to replace the item that is currently on the agreement line. Use related option 12='Down rent' or 13='Up rent' available in (STS495).

   Selecting the appropriate related option takes you back to (STS201) and the agreement line is updated with the new item number and serial number, if this was selected.

4. For a new line:

   Create a rental line for the up or down rented item number.

   On (STS201/E), select 1-'Down rent' or 2-'Up rent' in the 'In lieu' field and the item number originally requested by the customer in the 'Down/Up rent it' field.

See Create agreement line for information about, for example, how to specify values and fields for the other panels and activate the agreement.

Create package line

In this section it is described how to create the rental agreement lines using packages.

A package structure contains a package header and package lines.

A package header is created and displayed in 'Rental Package Structure. Open' (STS455) and package lines are created and displayed in 'Rental Package. Open Line' (STS456). Each package line has a price factor determining how the package price should be distributed per package line.

Package prices can be set up in 'Rental Rates. Enter Package Price' (STS125) to get a default price during agreement line entry.

To connect a package ID to a rental agreement line, the package must exist as a service expense in 'Service Expenses. Open for Task' (SOS408).

1. Start (STS201/B), which is reached using related option 11='Lines' in (STS100).
2. Select package ID as item number.

   To create rental agreement lines using packages, you must use line type 4-'Package ID'.

3. Press Enter. The subsequent panels are displayed depending on the set panel sequence for (STS201). See Create agreement line for information about how to specify values and fields for the other panels.

4. When confirming all the panels for the package header and you return to (STS201/B), all the package lines have been automatically added.

   The package header has line type 4 while the package lines have a line type determined by the setup in (STS456).

   Edits to any of the detailed information on (STS201) panels, such as price or validity period, should be done on the package header.

   Note: You cannot add or delete lines for the package, or edit the delivery address, after the package lines are added to the rental agreement. However, the pricing of the package can be updated or edited.

   Also, you cannot deliver or return part of the package. All lines must be delivered and returned at the same time.

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