Inventory Types and Price Computations

This article explains how to classify inventory items and how each type affects price computations in your system. You’ll learn the differences between rental and sale items, how to configure rate structures, and how to apply them correctly. Whether you're entering a one-time sale or setting up a rental package, understanding item types is essential for accurate pricing and contract processing.
 

Topics in this article include

• How to Access Item Records

• Inventory Types Overview

• Rental Items

  • Rental Rate Codes

  • Metered Rental Items

  • Rental Item Types

• Sale Items

  • Quantity Discounts

  • Sale Item Types

How to Access Item Records

Expert:
Program Menu > File Maintenance > Item File > Select an item > Modify

Elite:
Configuration icon > Under Legacy Options, File Maintenance > Item File > Select an item > Modify

Inventory Types Overview

When you create or modify an item record, you choose whether it will be a rental or sale item. This classification determines how the system treats the item in contracts, pricing, kits, and rate computations.

Use the Type dropdown to assign the appropriate item type.

Rental Items

Rental items are generally available for both rental and sale, unless the item type is set to Rental – No Sale.

If you sell a rental item, the system uses the Sell Price in the item record. The counter person can override this price in the contract screen.

To rent an item, make sure it includes period (hours) and rate information in the rental rate table. This table supports up to ten periods and ten corresponding rates.

Rental Time and Rate Computation

• Enter estimated rental time in whole hours when opening a contract.

• When the item is returned, the system charges by the actual time out to the minute—or use a manual override.

• The default rate code in Parameters (Configuration) determines how rental charges are computed, but you can override it at the item level.

Rental Rate Codes

Each rate code calculates charges differently. Choose the one that matches your business model:

• 24-Hour (0): Charges based on nearest matching period or interpolates between two periods.

• Interpolative (1): Similar to 24-Hour, but adjusts for overtime and interpolates between rates.

• Rental Equipment Register (RER) (2): Uses adjusted hours and clock overtime to calculate charges.

• Party Rate (3): Charges a minimum of 24 hours per day, commonly used for event-based rentals.

• Iterative (4): Applies highest possible rates iteratively based on remaining hours.

• No Hourly Overtime (5): Prevents overtime charges by the hour.

Rate Code Example Comparisons

For a 49-hour rental using a defined rate table:

You can also define extra time charges by inserting a repeated or lower period in the rate table.

Metered Rental Items

Metered items prompt for hour–meter readings (in tenths) at rental out and return. These items must have a quantity of 1. The system charges based on either time rented or meter hours, whichever is greater.

Meter Overtime Calculation Steps

1. Convert Meter Hours:
   (Meter Hours) / (Hours per Day × Days per Week) × 168

2. Meter Hours Charge:
   Apply your rate formula and structure.

3. Hours Out Charge:
   Calculate using actual hours out and your rate structure.

4. Overtime Charge:
   (Meter Hours Charge - Hours Out Charge) × % Overtime Rate

5. Final Rate:
   Hours Out Charge + Overtime Charge

Example 1 – Iterative Rate

• 9 Days, 80 meter hours

• Parameters: 8 hrs/day, 5 days/week, 100% meter overtime

• Final Rate: $60

Example 2 – RER Rate

• 9 Days, 120 meter hours

• Parameters: 10 hrs/day, 5 days/week, 75% meter overtime

• Clock Overtime: 6 hrs/day, 4 days/week

• Final Rate: $73.13

Rental Item Types

• Rental Header: Groups serialized items; tracks cost and revenue.

• Rental Accessory: Can be rented or free; accompanies another item.

• Rental No Sale: Can be rented, not sold (e.g., consignment).

• Rental Miscellaneous: Not in inventory, but rentable.

• Rental Coupon: Used as giveaways or discounts.

• Rental Package: Bundles multiple items with auto-calculated qty and price.

• Rental Dynamic Qty: Bundles with calculated qty; price must be set manually.

Sale Items

Sales items are not rented and typically include blades, sandpaper, and parts. Assign a Sales Item type to these items and enter a Sell Price in the item record. You can also set up quantity-based discounts.

Quantity Discounts Example

To activate this feature:

1. Set item type to Sales – Normal

2. Mark the item as Bulk under the Options tab

3. Return to the item record to enter Disc Qty and Price
   

Sale Item Types

• Sales Normal: Standard sale-only items.

• Sales Fractional Qty: Sold in fractions (e.g., fuel).

• Sales Miscellaneous: One-time sales; system prompts for name, price, and qty.

• Sales Labor: Charges labor with prompt for date.

• Sales Parts: Repair parts; hidden from normal contracts unless “Show Parts” is enabled.

• Sales Percentage of Rental: Adds a % charge to a rental line (e.g., road tax).

• Sales Header: Groups serialized sale items for easier selection.

• Non Rental Asset: Tracks depreciating assets like vehicles and office equipment.

• Work Order Item: For customer work order contracts, either generic or specific.