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Standard Rate Engine
This article will discuss the Standard Rate Engine. Standard Rate Engine uses the amounts entered under your (daily, weekly, monthly) rates created in an item's record, to calculate your standard rates. If you want to use a multiplier or percentage to calculate your overtime hours, please see Base Rate Engine.
Topics in this article include
Auto Add Item
Here's how to get there
Expert: Program Menu > Configuration > System Configurations > Parameters > Item Rates tab
Elite: Configuration Gear > App Configurations > System Configurations > Parameters > Item Rates tab
Item key to add on Reservation contracts - This is the key of the item that is to be added to every reservation contract written.
Item key to add on Open contracts - This is the key of the item that is to be added to every open contract written.
Item key to add on Work Orders - This is the key of the item that is to be added to every Work Order written.
Item Percentage
Item Percentage Description - This is the description for any item percentage charge. This charge is defined in each item record as a percentage of the amount charged. This field can be used to charge GST in Canada, road tax, EPA fee, or any other percentage-based fee. The name entered here will be displayed on the item record and the contract, printed on reports, and the contract.
Minimum Item Percentage - This is the minimum amount (in currency value) you want to charge.
Maximum Item Percentage - This is the maximum amount (in currency value) you want to charge.
Charge Item Percentage on Sale of Asset - With this option checked, the item percentage will be charged whenever this item is sold. With this option unchecked, the item percentage will not be charged on the sell amount.
Charge Item Percentage on Damage Waiver - With this option checked, the item percentage will be charged on any damage waiver amount charged on this item. With this option unchecked, no item percentage will be charged on the damage waiver.
Minimum Damage Waiver Amount - With this box checked, a set price entered in this field will be charged in the damage waiver field of the contract. With this option unchecked, you will be able to enter the damage waiver per item being entered on the contract.
Special Rates use Item’s Rate Structure - This allows special rates to follow the item record’s rate structure. For example, if you have an item rate structure of $100 – 1 day, $150 – 2 days, and $180 – 3 days, setting the special rate of $80 for a day will also update the item rates to be $120 – 2 days, and $148 – 3 days. For your items that only have a minimum day, week, month structure this parameter will make no difference.
Charge Damage Waiver on non-discounted Items - If this box is checked, then the damage waiver is discounted along with the regular rental rates regardless if there is a discount on the item. Warning, checking this box, and then modifying a closed or completed contract will remove the discount from the damage waiver, only calculating the discount on the regular item record.
Rate Engine - From the drop-down menu you can select the type of item rate: Base Rate vs Standard Rate. The standard rate uses the rate set in the item record.
Weekend rate charge - This is the amount that you charge for an over Sunday charge. For example, this would be 1D if you wanted to charge one day for over Sunday. If you want to charge a day and a half use whatever your 1 ½ day charge is in hours (usually 27H).
Rate Engine
Here's how to get there
Expert: Program Menu > Configuration > System Configurations > Rate Engine
Elite: Configuration Gear > App Configurations > System Configurations > Rate Engine
Select from the type field standard to use rates set in the item record. From here you can set the Overtime Hours, Clock Overtime, Meter Overtime, and Usage Item.
Name - You can add the store to be associated with the item rate. (Ex: XYZ Company, Store 1). You will be able to create multiple rate engines with different equipment types.
Type - From the drop-down menu you can select the type of Item Rate. (Base Rate vs Standard Rate) The standard rate uses the rate set in the item record.
Standard Rate - This is the normal rate you would set up in the item record under the Details tab. These are the rental period hours. Normally these would be entered as Daily (24 hr), Weekly (168 hrs), or Monthly (672 hrs).
Inactive - Checking this box, will make the rate structure not available.
Default Overtime Calculation
This parameter selects how the program will calculate rental fees for time periods that are not defined in the item rate table. The program recognizes these rate codes:
RER formula (2) - The RER recommended formula will be used, with overtime hours based on the “Clock Overtime” parameter. This is the most common Rate Code.
Party rate formula (3) - Charges will be based on a day late return. No overtime will be charged if the item is brought back within the same day that it was due. This rate code is mostly used in party stores where due back time is not critical.
Iterative Formula (4) - The Iterative Rate formula will be used, with overtime hours being charged as the early rates in the table. For example, 196 hours will charge a weekly rate plus a day rate plus a 4-hour rate. This rate will charge the customer more than any other rate code.
24 Hour formula (0) - Charges will be based on a 24-hour day, 7-day week, 4-week month.
Interpolative formula (1) - An interpolation will be done using the two values in the item rate table that the rental period falls between. Each hour past an exact day will be charged based on the “Clock Overtime” parameter.
No Hourly Overtime - This formula is a way for equipment stores not to charge any overtime, similar to a party store, without any of the other party store verbiage/settings. For example, if someone rents a mower in the morning for 4 hours, they won't be charged overtime if they don't return it until 5 pm.
Grace period % of rental * 10 - When a rental item is returned, the counter program will compute the grace period by multiplying the total time out by this parameter. This parameter must be entered as a percent, e.g. 1.5 would mean 1.5%. The resulting grace period will then be adjusted, if necessary, to fall within the minimum and maximum limits described below. The customer will be charged for the time out minus the adjusted grace period. For late or on-time returns, the charged time will not be allowed to be less than the scheduled time.
Grace period minimum minutes - The program will not allow the grace period to be less than this value.
Grace period maximum minutes - The program will not allow the grace period to be more than this value.
Prorate rentals on close of continuation bill - With this box checked, when contracts are returned after multi-month continuation billing, the item rental rate will be prorated. With it unchecked, the items will be charged at standard rates as if the customer had only rented the item for that time period.
Minimum refund amount - This specifies the minimum refund amount per line item that you want the program to consider when rental items are being returned early. For example, if you set this parameter to .50 (which is 50 cents), then the program will not give the customer a refund unless the refund is greater than 50 cents.
Minimum extra charges - This specifies the minimum extra charges amount per line item that you want the program to consider when rental items are being returned late. For example, if you set this parameter to .50 (which is 50 cents), then the program will not charge a late fee if the computed late charges are less than 50 cents.
Weekend Rates (Saturday/Sunday)
You can choose whether to bill for Saturday or Sunday. In the New Rate Engine screen, you can turn the billing off or on for either of those days. This will simply deduct 24 hours for each Saturday or Sunday, during the rental period, from the total hours calculated for a rental item.
Prorate between Min and Day - With this parameter checked, any overtime past the minimum rental period will be prorated for the duration the customer had the item. With it unchecked, the customer will go directly into the daily rate if they are late.
Prorate rentals on close of Continuation - With this box checked, when contracts are returned after multi-month continuation billing, the item rental rate will be prorated. With it unchecked, the items will be charged at standard rates as if the customer had only rented the item for that time period.
Round overtime to the next day - With this parameter checked any time past the grace period given to the customer will result in another day’s rental. With it unchecked, the customer will be charged the actual time out.
Round hours up to next hour - With this parameter checked, any time past the grace period given to the customer will result in hours being rounded to the next full hour. (Ex. three hours and 2 minutes round up to four hours).
Month to Month - With this parameter checked, the customer will be billed on a month to the monthly billing cycle. (Ex. The 5th of a month to the 5th of the next month).
Bill from 1st to Last Day - This is an aesthetic setting for you to bill month to month and utilize auto-continuation. Traditionally, contracts reflect the true hours an item is out, for example, 7/1 8:00 am to 8/1 8:00 am. This setting will set the contract date/time to be at 7/1 8:00 am to 7/31 5:00 pm, but still bill for the full amount of hours. The user must have this enabled and must bill through the last day of the month in their auto-continuation template to invoke this code.
Clock Overtime - These parameters are used to calculate overtime charges for any overtime after 24 hours. They define how many hours you count as a rental day and how many days you count as a rental week. For example, if you set hours in a day to 6 and days in a week to 5, then each hour of overtime past a 24-hour day will be calculated at 1/6 of the 24-hour daily rate, and each 24-hour day of overtime past a week will be calculated at 1/5 of the weekly rate.
Meter Overtime - These parameters are used to calculate overtime charges for metered items. They define how many meter hours you count as a rental day and how many days you count as a rental week. For example, if you set meter hours in a day to 8 and days in a week to 5, then 8 meter-hours will be allowed in a 24-hour period, and 5 meter-days (i.e., 40 meter-hours) will be allowed in a week.
% charge for meter overtime - This parameter sets the percentage of hour meter overtime charges to the bill. An entry of 100% charges full value for hour meter over time. An entry of 50% would only charge half of the normal overtime rate for hour meter usage.
Usage Items - This parameter is generally used in conjunction with diamond blade wear calculations. It determines how many units free are given for each hour, week, and month charged. The “Hours in a day” parameter determines the fraction of free units per day given for each hour charged. This would normally be set to the same value as the clock overtime hours in a day. A value of 6 means for every hour charged give 1/6 of the daily free units. Valid entries are 0 to 24. The “Days in a week” parameter determines the number of free units given per week charged. Valid entries are 0 to 7. The “Weeks in a month” determine the number of free units given per month. Valid entries are 0 to 4. If the parameters are set to 6 hours a day, 3 days a week, and 3 weeks per month and the “free units” in the item record is set at 6, the customer would receive 1 free unit per hour, 6 free units per day, 18 free units per week, and 54 free units per month charged.
Most stores give a certain number of free units based on each transaction instead of time out. If this is how you operate, put 0 for each of these parameters.