Group Rates


System Maintenance Menu -> Configure System Settings -> Operations Tab -> Inventory -> Groups -> Rental Information window -> Use Group Rates for Group Bookings- icon -> Group Rates

Standard rental rates to be charged for rental equipment on a document can be setup by the specific product in Rental Inventory, or in this window at the Group level.
When a product does not have any rate codes defined, the rates default from the associated Group.

Rates for New Products:
When a new rental product is created, if the associated Group has rates defined in this window, no rates are required on the individual product as rates will default from the Group.
If the products in the Group have varying rates and there are no rates defined in this window at the Group level, then the rates from the Rental Product Class are copied to the new product.
Rates can then be modified later for specific products as required.

Special Rates:
Unique rates to apply to products or groups can also be defined for specific customers, groups of customers, or to a division, as setup in Special Rates Codes.

The Group rate structure can be setup as follows:

SEQ
This is automatically assigned to track the rental rate records in the table.
When a new Group is initially added any rates from the associated Rental Product Class default to the Group rates, that can then be modified as required.

CODE
The code represents the rental rate code that is used to determine the order in which rates should be applied.
e.g. The Daily Rate code is generally a lower number than the Monthly Rate code.

DESCRIPTION
The description refers to the time period of the rental rate, and can be printed on the document.
e.g. Hourly, 4 Hrs, Daily, Weekly, Weekend, 28 Days, Monthly, Event etc.

TO HOURS
The To Hours value determines the cut-off point after which this rental rate no longer applies.
e.g. If 1 day = 24 hours, and the To Hours is 96 hours, then the Daily rate applies up to 4 days before the next rate WEEKLY applies.

Note: For special Weekend, Over-night, or Event rates, leave the To Hours field blank as this could limit the effectiveness of the rate code.


RATE HOURS
The Rate Hours determines the number of hours per time period.
Example:
1 Day = 24 hours, so the rate hours in this time period is 24.
1 Week = 168 hours (7 days * 24 hrs), so rate hours is 168.
4 Weeks = 672 hours (7 days * 24 hrs * 4), so rate hours is 672.

RATE BOOK
This field only applies to the Company Default Rates and the rates defined in the Rental Product Classes.
It is used to determine which rates print on the rental document and on the rate books as follows:
  • For 'Rate Books by Description or Product #' order, the rates to print are determined by using the first 6 rates with the Rate Book checked in the Company Default Rates.
  • For 'Rate Books by Product Class', the rates to print are determined by using the first 6 rates with Rate Book checked in the window on the "Product Class Rates" field in Rental Product Classes.
  • On the 'Document' the Rate codes to print on the Contract or Invoice, are determined by using the first 5 rates with the Rate Book field checked in the Company Default Rates, regardless of what is checked at the class level.
    If a rate structures is setup for a specific Division in Company Default Rates, the division selection over-rides the setup for "All" divisions.
  • In the 'Inquiry' it is the first three rates that are checked in the Company Default Rates that are displayed for rental products in the Inventory Search window.

Check this box to print this rate on the appropriate Rental Rate Books.
Uncheck this box if this rental rate should not print on the Rental Rate Book.

Note: When new Product Classes are added, the default flag from Company Default Rates is applied to the new class.


RENTAL RATE
Type in the dollar amount which applies to each time period.

Multiple Rate Structure Setup Using Zero Rate:
A zero rental rate can be set for a "filler" Rate Code, and when the Suppress 0 Rates On Document parameter in the Company Rate Parameters is set, the zero rate is not used on the document.
Then the zero Rate Code can be given a rate in Special Rates Codes to allow two different rate structures for the same product or group to be maintained.
Refer to Company Rate Parameters for setup and examples of using the Suppress 0 Rates On Document feature.


BASE RATE
Enter the optional Base Rates for applicable Rate codes.
Refer to the notes on Base Rate Processing at the end of this document for a detailed explanation of this feature.

BASE HOURS
Enter the Base Hours for applicable Rate codes.

Expanded Rate Record
Click the EXP/CON button to access the Meter rate and New Rate information:
METER INCLUDED
This field only applies to metered or blade-type non-bulk rental products.

Enter the number of meter or blade units included with the rental rate.
If the meter units at Rental Return are less that this meter allowance, there is no meter charge.

Note: For equipment that is billed only by the meter usage and not for the rental time, refer to the Meter Rate Charge Exception information explained with the Suppress 0 Rates On Document parameter in the Company Rate Parameters.

RATE
Enter the over-time rate per meter or blade unit, if the included meter units is exceeded for this rate code.

SURCHG
This field only applies if Base Rate processing is being used.
This amount is the additional amount required in the calculation to equal the Base Rate.
This is an information field only.

MAINTENANCE PROVISION
Optional maintenance provision postings can be generated to reflect a maintenance expense in the G/L as a portion of the rental revenue.

Leave this field blank if NO maintenance provision postings are required for this rate code, or enter an hourly rate to be charged at this rate code level for maintenance.
When invoices for this equipment at this rate are posted in the Daily Close, a Debit is then posted to the Maintenance Expense account and a Credit is posted to the Maintenance Provision Liability account as setup in Rental Product Classes.

To enter manual Maintenance Provision postings, and to review report history, refer to Maintenance Provision.

Note: Miscellaneous invoices must have the rental period information entered, in order to calculate this hourly maintenance provision posting.
The Invoice Rate Window for Rentals parameter in the Divisional Rate Parameters can be set so that the rate window for rental charges opens automatically on Miscellaneous Invoices and Quotations.


NEW RATE AS OF:
New rates for each rate code can be setup in advance either manually or using the Rate Increase/Decrease Utility.

Enter the effective date when these new rates should be applied.
Any Contracts, Quotations, Reservations, etc., entered with a date out that is later than this date will be billed at the new rate.
At this effective date, the new rates replace the expired rates in the product rate file.

The fields include:

RATE
Enter the new rate to apply as of the effective date just set.
BASE RATE
Enter the Base Rate for the code to be applied as of this New Rate effective date.
BASE HOURS
Enter the Base Hours for the Rate code, to be used as of this New Rate effective date.
METER INCLUDED RATE
Enter the over-time rate per meter or blade unit to be used as of this New Rate effective date.
SURCHG
This amount is the additional amount required in the calculation to equal the Base Rate.
This is an information field only.

Note: To ensure the new rates replace the "old" rates as of the new rate effective date, the program RSRF16A can be included in the Automatic Job Scheduling to run daily.


ALTERNATE DESCRIPTION
If your firm uses the alternate language feature activated in the Company Miscellaneous Parameters, the alternate descriptions for each rate code can be printed on documents for customers flagged to receive their documents in the alternate language.
The alternate language rate descriptions default from the company defined descriptions in Company Default Rates and can be modified at the product and Group level in this table as required.

Finished?
Click ACCEPT button to exit the window when finished.

BASE RATE PROCESSING
Base Rate processing provides the ability to setup two sets of rates for any regular rate level.
This allows a product to be billed at a base rate for a portion of a rate level, and then billed at the regular rate for the remaining portion of that rate level.

e.g. A base weekly rate can be setup for the first week, and then the following 3 weeks could be billed at a lower regular rate. This offers the customer a reduced rental rate when the equipment is out longer than the base period.

Base rates can be setup for any rate code level. e.g. Hourly, Daily, Weekly or even Monthly.

There are two ways of setting up Base rates in the product rate structure.

  1. When the base rate applies to more than one period of the rate level, then two rate codes should be setup for that rate level, with the same Rate Hours.

    Example Rate Structure:

                                                --- BASE ---
    CODE DESCRIPTION  TO HRS  RATE HOURS   RATE  RATE  HOURS
    ==== -----------  ------  ----------   ----  ----  -----
     2   FIRST 3 DAYS  72.00       24.00   2.00
     3   4 TO 7 DAYS  168.00       24.00   1.00  6.00  72.00
     4   WEEKLY       504.00      168.00  10.00
     5   4 WEEKS     9999.00      672.00  28.00
    

    This product would be billed at the base rate of $2.00 for each of the first 3 days, and then it would be billed at the regular rate of $1.00 for each of the remaining 4 days, before it goes to the weekly rate. Rate optimization still applies.

    This method should be used when the base charge applies to more than just the first period of the rate code.

  2. A slightly different application of the Base Rate processing is to charge one rate for only the FIRST period of a rate code, and then a reduced rate for each subsequent period of the same rate code.

    Example Rate Structure:

                                               --- BASE ---
    CODE DESCRIPTION  TO HRS  RATE HOURS  RATE  RATE  HOURS
    ==== -----------  ------  ----------  ----  ----  -----
     1   MINIMUM        1.00              2.00
     2   HOURLY        24.00        1.00  1.00  2.00   1.00
     3   DAILY         96.00       24.00  3.00  4.00  24.00
     4   WEEKLY       504.00      168.00 10.00 12.00 168.00
     5   4 WEEK       999.00      672.00 30.00 35.00 672.00
    
    This rate structure has been created by setting the Base Hours equal to the Rate Hours in each rate code.
    Then the first period always uses the Base Rate, and every additional period is charged at the regular rates.
    e.g.
    First hour  charge =  $2.00 & every hour  after @  $1.00
    First day   charge =  $4.00 & every day   after @  $3.00
    First week  charge = $12.00 & every week  after @ $10.00
    First month charge = $35.00 & every month after @ $30.00
    
    This method should be used when only the first period in the rate code is eligible for the base charge.

Topic Keyword: RSGF02 (3712)
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