Closing an Hour-Metered Item

This article explains how to close a contract with an hour-metered item. When you close the contract, Point of Rental will ask you to record the current meter reading of the item.

Closing an hour-metered item

1. Close the contract by going to Close Contract through the Counter System (Expert) or Transactions (Left Menu) > Close Contract (Elite).
     
2. After you have closed the items, the following window will be displayed prompting you to record the meter reading for the item coming back.
   
   
   
3. If the metered hours used are greater than the allotted time set in your parameters, you will receive the following message (for example, if you allow 10 meter hours in a day and the meter reading is for 11 hours).
   
   
   
4. Another message you may see is when the meter used exceeds the actual time out (for example, a one day, 24 hour rental with a meter reading coming back of 25 hours).
   
   
   
5. This is physically impossible and you will get a warning that asks if you want to re-enter the meter reading (the program assumes that you have made a mistake).
   
   
   
6. If you choose not to re-enter, you will be given the option to use the meter reading or the actual time out to calculate charges.
   
   
   
7. If you have a GPS (AEMP) installed on this asset, you will have the option to pull the hour meter reading from the GPS unit.

How are hour-metered item price caculated?

Hour metered item prices are calculated based on either the actual time the item was rented out or the meter hours used—whichever is greater. The system uses specific parameters set for meter overtime (such as allowed hours per day/week), and overtime charges are applied if usage exceeds these limits.

Here are the main steps and rules that govern the calculation:

• The metered rental item must have a quantity of 1 and be designated as a "Rental Item - Hour Meter."
• At checkout and return, you must enter the meter readings (in tenths of an hour).
• The parameter for "Meter overtime" on the item's Rates tab sets the number of free meter hours per day, days per week, and weeks per month before overtime charges start.
• For each hour over the free limit within a 24-hour period, overtime is computed at a fraction of the daily rate (e.g., if set to 8 free hours per day, each extra hour is charged at 1/8 of the daily rate).
• The percentage charge for meter overtime (% charge for meter overtime) determines how much overtime usage is charged (e.g., 100% for full value, 50% for half rate).
• On return, the system computes charges based on the maximum of actual clock hours out or meter hours used.
• Overtime cost calculation example:
  • Convert Meter Hours: (Meter Hours) / (Hours per Day × Days per Week) × 168
  • Compute Meter Hours Charge via the rate structure
  • Compute Hours Out Charge via rate structure
  • Overtime Charge: (Meter Hours Charge - Hours Out Charge) × % Overtime Rate
  • Final Rate: Hours Out Charge + Overtime Charge

All these details are entered and calculated at both item checkout and return, ensuring accurate billing for usage and time out