Overview

Normally, when you change the hire rate on an existing hire contract, the change will be effective from either the start of hire, or the date the item has been invoiced up to (whichever is later).  With Syrinx, a change of hire rate can also be made effective from a particular date, either via the amend contract screen, or through the equipment exchange screen.  Also, when entering a hire contract you can indicate that the hire rate is to change automatically after a given number of days, and these automated rate changes can be defined in the standard equipment rates and/or the customer pricing agreements.

Automated Rate Changes – System Setup

The feature for automating updates to hire rates is turned off by default.  To turn it on, enable the ‘Allow Auto-Update Rate changes after n days on hire’ system option on the ‘Dated Rate Changes’ tab of Syrinx Configuration\System Options\Hire Charging:

Automated Rate Changes – Contract Entry

Once the option is turned on, when entering an item on a new contract, you can go to the detail screen for a hire item (by double clicking on the charge amount):

..and you can set the new rate, and the period after which it should come into operation.  This information is then saved with the contract when the contract is confirmed. 

Automated Rate Changes –Default Rates and Pricing agreement.

If an item is always charged on the basis of a rate reduction after so many weeks, then this can be defined as part of the standard hire rate via a ‘Show Detail’ button on the Hire Rates tab of the ‘Amend Hire Category’ screen:

If a customer has an agreed rate that is always to be reduced after a given number of weeks, then this can be defined as part of the customer pricing agreement rate via a ‘Show Detail’ button on the Hire Rates tab of the Pricing Agreements screen.

Automated Rate Changes – Invoicing

When the system comes to invoice a hire contract, it looks to see if the contract has any items that are due to change rate before the date we are invoicing up to.  If so, then it splits the hire item with the old and new rates prior to invoicing.  When determining whether a rate change is due, the system takes into account any suspense days entered for the item – i.e. if the item is suspended, then this will put back the date of rate change by the corresponding number of days.  

For batch invoices, the text ‘(off hired…’ is suppressed on the invoice line that is charging the old rate.

Rate changes during first week of hire.

If the rate change occurs during the first week of hire, then the new item that is created to charge at the new hire rate is not charged according to the part week rates.  Therefore, the old rate is charged according to the part week charges, and the new item is charged from the new date (of exchange) but using flat percentages of the weekly rate (ie as if the hire commenced at the start of the second week).

This scenario should only occur when equipment is exchanged.  In this scenario the customer is charged as if he off hired the old item and started a new hire for the new item, except that the new item is not subject to the partial week rates. This behaviour can be overridden for ‘exchanges’ with the ‘Apply Part Week Rates on Exchange with Rate Change? system option on the ‘Exchanges’ tab of Syrinx Configuration\System Options\Hire Contracts: