Re-Rental Transactions


Purchase Order Menu -> Re-Rentals -> Re-Rental Transactions

Re-renting equipment occur when your firm rents equipment from another rental firm, and then your firm rents that equipment out to one of your own customers.
This sub-rental action is useful when the demand for a product such as a generator, exceeds the number of generators your firm has available to fill your customers' orders.

Instead of turning away a customer or sending them to the competition, a re-rental or sub-rental is a way of satisfying a temporary increase in demand for a certain piece of equipment.
If the extra demand for the equipment remains over a period of time, your firm should purchase the additional equipment instead of re-renting.

Generally, when equipment is re-rented or sub-rented from another rental firm, the other firm gives a 20-30% discount on regular rental rates.
This enables renting to your customer at your regular rates, but the gross profit on re-rentals or sub-rentals would only be 20-30%.

Setting Up Re-Rental Equipment:

Tracking Re-Rental Revenue Automatically:
The new re-rental product # can be used on contracts, invoices etc. in place of the regular product number.

Each time an item from a Product Class that is flagged as a Re-rent class, is rented a record is written for the revenue into the Re-Rental Transactions file when the Daily Close programs are run.

Each time the Daily Close programs are run, any revenue earned from re-rental (sub-rented) equipment is automatically recorded into Re-Rental Transactions.

Note: In order to qualify as re-rental equipment, the product # must be in a Rental Product Class that is flagged as a Re-Rent class.


Tracking the Cost of Re-Renting:
To offset the revenue from re-rentals, the costs of the re-rentals should also be recorded, so that by tracking the number of times an equipment re-rent was required, with the revenue earned and the costs incurred, a decision can be made about re-renting the equipment in the future or purchasing the equipment instead.

Following are three separate approaches to capturing costs:

Capturing Re-rental Costs using A/P Invoices:
A/P Invoices can only be used to capture the costs from the supplier's invoice, if a "Contract/Purchase Order link" was NOT used to originally order the re-rent equipment.
When entering the invoice into Accounts Payable, at the Type field in the details select E for RE-RENTAL and enter the Product #, the Quantity and optional Reference, as outlined in A/P Invoice Details.
This automatically records a Re-Rental Transaction.

Note: To manually designate the equipment as re-rental A/P Invoice by P.O. can not be used as Type E for RE-RENTAL is not an option when the inventory purchases come from a Purchase Order.


Capturing Re-Rental Costs using A/P Invoice by P.O. :
If the re-rent was triggered by generating an order for the re-rent product at the time the Contract was entered, or linking an existing contract to a P.O. when the Purchase Order was entered, then A/P Invoice by P.O. must be used to capture the re-rent costs.
This automatically records a Re-Rental Transaction.

A window is provided on the Purchase Order Inquiry and on the Qty field of the Contract Details to show the P.O./Contract link and re-rental information.

Refer to Contract/Purchase Order Link Overview for details on this feature.


Capturing Re-rental Costs Manually using Re-rental Transaction:
If re-rental costs are not being recorded using either of the above A/P Invoices methods, costs can be entered manually in this Re-Rental Transaction utility instead, as follows:
PRODUCT #
Enter the product number of the re-rented equipment or look it up in the Inventory Search window.

DIVISION
Enter the division or store that re-rented the equipment or select it from the drop-down list.

Re-Rental Details:
Any previous revenue entries which were created when customer invoices were issued are displayed.
Enter the re-rent costs as follows:
SEQ#
The sequence number is automatically assigned to track the records in this table.
DATE
Accept today's date, or type in the date on the A/P invoice from the other rental firm.
VENDOR
Enter the vendor number of the Accounts Payable invoice, or look it up in the Vendor Search window.
NAME
The vendor name is displayed for verification.
A/P INV#
Type in the Accounts Payable invoice number from that vendor.
SALES INV#
This field is skipped and will be automatically maintained when the equipment is rented.
QUANTITY
Enter the quantity re-rented.
i.e. the number of units rented
COST
Enter the total cost of the re-rental.
i.e. the total dollar amount for renting this item from the other rental firm.
REVENUE
This field is skipped and will be automatically maintained when the equipment is rented

Expanded Record
Click the EXP/CON button to view the additional re-rent transaction fields including Reference, Billed dates, Contract number and Purchase Order number.

Finished?
Click ACCEPT Key to exit.

Re-Rental Reporting:
The Re-Rental Inquiry/Report uses these transactions, and can be used to view the metrics and value in re-renting specific equipment versus purchasing and maintaining it.

Topic Keyword: RSRR01
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