A Time-Based Discount is a discount that can be given for a limited portion of the rental period for a rental product, on a Quote, Reservation, or Contract.
For example, a Time-Based Discount could be applied for the first part of a rental period as an initial Training period.
The divisional Time-Base Discounts table can be setup by
Over-ride Codes with a preset number of days, and a fixed discount
% or a maximum allowable discount %.
A G/L Expense account can be assigned to post the discounted
amounts.
The Time-Based Discount is triggered when the operator
over-rides the Discount Percent on the rental product second
detail line, and then selects an Over-ride Reason code that is
defined with Time Based Discount rates.
The operator can then view and modify the discount values for the
rental product, up to the preset maximum days and discount
percent.
The Time Based Discount does not show as part of the discount percent or dollar value on the product document detail line, but can be accessed in the Line Item Discounts window on the Discount % field.
Calculation:
The Time-Based Discount is applied on the Extended Amount
after other discounts are taken.
When the Time-Based Discount is on only a portion of the rental
period, the formula is:
(# of eligible days / total rental period days) * Time Based
Discount % = the Actual Discount% that is then applied to the
Extended amount
Note: When a Time-Based Discount is given on a rental product, any Customer Discount Programs no longer apply for that product, but any Special Rate discounts as setup in Rate Discount for Products/Groups do apply.
The prompts to define the Time-Base Discount over-ride codes for this division include:
Note: Once a Reason code is defined as a Time-Based Discount
Over-ride, in that division the reason code can only be
used for Time-Based Discount over-rides.
However other divisions not using that Reason Code for Time-Based
Discount can continue to use that same Reason Codes for other
over-rides.
When the Time-Based discounted invoice is posted through Daily Close 3, the gross rental charge is posted as a Credit to the Rental Equipment Revenue account as determined by the Product Class, and then the Time-Based Discount amount is posted as a Debit to this Discount Expense account, to reduce the invoice total that the customer pays.
Note: This discount posting feature is entirely independent from Post Document Discounts to G/L that can be activated from the Company Posting Parameters.
ACTIONS:
Additional actions provided by buttons on
the Time-Based Discount screen include:
To delete a record, click on the corresponding sequence number
to highlight the record and then click the DELETE
button.
Confirmation is required.
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