Waivers can be charged to the customer for protection on your
rental equipment to cover problems such as loss, damage or
liability.
Damage Waiver is an industry accepted way for your firm to build a
reserve for uncovered losses when/if an incident does happen.
In addition, Damage Waiver is a revenue source and some stores in
the industry capture 2% to 4% of their total revenue through damage
waiver fees.
Two approaches to calculation the Waiver are provided:
With the Alternate Damage Waiver method only the "blank"
waiver code is required in this table for description and the
posting accounts, and the DW formula uses either a base value or
uses the extended rental charge on each product detail line, times
one of two different waiver percent rates defined by the product
Group, to determine the DW amount to
charge by product on the document.
This means two different percent rates can apply to the rentals on
the same document, depending on the product Group.
Refer to Company Alternate Waiver Settings
for configuration.
The Standard or Alternate calculation method can be activated in the Company Contract Parameters.
An operator must be assigned a Security Role that allows permission to the Accounting - Waiver Codes in order to access this table.
Division Level:
Waiver rates can also be defined at the divisional level in the
Division Standard Waiver Settings or
Division Alternate Waiver Settings that
would over-ride the company rates according to the specific waiver
code.
Customized by Customer:
With the Standard calculation, if the feature to Respect Waiver
Codes By Customer has been activated in the Company Contract Parameters, rates can also be setup
in the Waiver Codes by Customer window for
eligible customers in Customer
Information, that would over-ride both the division and company
rates for the waiver code.
With the Alternate calculation, the customer specific rates can be setup in the Customer Damage Waiver Settings.
Note: When the Waiver flag or the Waiver percent is changed for a customer in Customer Information the option is provided to update Open Documents.
With the Standard calculation, when multiple waiver codes could apply to a document (e.g. loss, damage, etc.), a window is triggered in the rental document header to allow the operator to choose the waiver code for the document.
Note: When choosing the waiver from the selection window on the
document, if both the company and the division have been assigned
rates for the same waiver code, the percent for the division
over-rides the company percent for that waiver code.
If company and/or division, and the customer have a rate setup for
same code, then the percent for the customer applies.
The charge waiver flag can be over-ridden on the document if
your firm does not Use Damage Waiver Per Item Value Limits
as set in the Company Damage Waiver
Parameters.
If Use Damage Waiver Per Item Value Limits is activated, the
Damage Waiver flag assigned in the Customer Information will be enforced, so that so
that only customers flagged as 'Optional' will have the choice to
accept or decline the Damage Waiver on the document.
The parameter to Allow User Access to Waiver% in the
Divisional Contract Parameters controls
whether the operator also has the ability to change the percent
rate charged for any waiver code in document entry on the header or
in the Damage Waiver pop-up window.
This divisional control is set according to the division of the
document, regardless of the operator division.
Note: When a new document is generated automatically by the software and multiple waiver options could apply, the first waiver in the list, defaults to the document.
If the customer accepts the waiver on the rental document, then a percent of the rental charge for eligible rental equipment determined by the selected waiver code, will automatically be billed on all Cycle Billing invoices and on the Rental Return invoice.
The default for specific customers that always decline Damage Waiver can be flagged accordingly in Customer Information.
Note: The FIFO Rental Return feature is not allowed for a customer who has been charged varying Waiver rates, as the percent of rental to charge may not be consistent across the contracts.
The information to setup the initial waiver codes includes:
Note: The Blank waiver code is mandatory and cannot be deleted.
Uncheck this box if rates should only be defined at the company level in Company Waiver Code Maintenance, or at the division level in Division Standard Waiver Settings for this waiver code.
Check this box to permit the rate for this waiver code to be customized for specific customers as setup in Waiver Codes by Customer which would then over-ride any division or company rate for this code.
There are three tax processing methods, each of which impacts
this Damage Waiver tax window differently.
Refer to Tax Codes Maintenance to review the
regulations determining the tax selection using either taxing
method.
The exemption flag for Tax 1 as set for each customer in the Customer Information is respected for Damage Waiver.
The exemption flag for Tax 2 as set in the Customer Information is respected..
Enhanced Taxing
The purpose of the Enhanced Tax method is to allow more than two
tax codes to be tracked according to Location, and to be charged on
products, services, and Damage Waivers, and to allow for tax
exemptions on any or all of these charges.
The Enhanced taxing method can be activated in the Company Taxing Parameters.
Vertex Taxing
For the third-party Vertex software two tax codes are
displayed as follows:
If an Alternative Language applies, over-type the displayed
waiver description with the appropriate description to print on
documents for customers flagged as preferring the Alternate
Language option.
The Alternate Language feature can be activated from the Company Miscellaneous Parameters.
This field is disabled if iRely is not activated.
Note: The customer rate always over-rides the division and company rates for the same waiver code, and if there is no customer rate then the division rate always over-rides the company rate for the same waiver code.
The parameter to Allow User Access to Waiver% flag in the
Divisional Contract Parameters controls
whether the operator has the ability to change the percent rate
charged for the waiver code selected in document entry.
This divisional control is set according to the division of the
document, regardless of the operator division.
ACTIONS:
Additional actions provided by buttons on
the Waiver Code screen include:
Click on the DELETE button, then select the Waiver code to be deleted from the window, and proceed as outlined in Delete Waiver Codes.
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