Rental 101 Flashcards
Rental / Hire
Rental = American terminology
Hire = European terminology
Time Utilization
Total rental days EARNED per unit/subgroup/group
- divided by -
Total rental days AVAILALE per unit/subgroup/group
Examples:
1 Unit purchased 90 days ago has been on rent for 45 days.
Utilization = 50% (45 / 90)
100 Units purchased 100 days ago have been on rent for a combined 6,742 days.
Utilization = 67.42% (6,742 / 10,000)
100 Units purchased 50 days ago and 200 units purchased 100 days ago have been on rent for a combined 15,000 days.
Utilization = 60.00% (15,000 / ( (100 * 50) + (200 * 100) ) )
What is an Invoice
An invoice is a time-stamped commercial document that itemizes and records a transaction between a buyer and a seller. If goods or services were purchased on credit, the invoice usually specifies the terms of the deal and provides information on the available payment methods.
What is a Purchase Order?
A purchase order (PO) is a legally binding document created by a buyer and presented to a seller.
What is a re-rental?
Rental operator rents something FROM a supplier and then rents that same item TO a customer.
The supplier usually offers a discounted rate, which allows the rental operator to earn a margin.
Typical…
- Supplier rents to operator at 80% of normal rate (e.g. $800/mo)
- Operator rents to Customer at normal rate (e.g. $1000/mo)
What are Payment Terms?
The amount of time the customer has to pay an invoice.
Common payment terms:
- NET30 = 30 days from the date of invoice
- NET15 = 15 days from the date of invoice
- 2NET10 = 2% discount applied if paid within 10 days of the date of Invoice
What is the difference between Availability and Allocation?
Availability = what is available?
Allocation = where are my rental assets?
What is a serialized asset?
If an asset is serialized, it requires a serial number for all of its movements and transactions, including inventory transactions, work orders, cycle counts, shipments, transfers, etc.
With serialization, you can get a comprehensive understanding of the entire lifecycle of an asset.
It provides you with details about:
- when a particular product was manufactured
- when a particular product was sold
- how many times it was serviced
- maintenance history
What is a non-serialized (bulk) asset?
Also known as bulk rental inventory, these items do not have serial numbers or individually barcoded units assigned to them. In bulk rental stock, items are rented out as a group or bundle.
What is batch invoicing?
(aka - cycle billing, recurring billing)
Batch invoicing allows you to generate multiple invoices from a single-entry input, as opposed to manually entering information per individual invoice.
What is Damage Waiver (DW)?
DW removes the renter’s liability for all or some damage to a rental due to an accident, theft, fire, or vandalism.
What is an Environmental Fee?
Fees meant to defray the costs – your costs – associated with disposing of waste fluids, failed parts, tires, and other hazardous materials.
These fees are common within the waste industry (dumpsters, toilets, septic service).
Some non-waste companies charge an Environmental fee, primarily as an extra revenue source.
What are other terms for Damage Waiver?
LDW - Loss & Damage Waiver
PDW - Physical Damage Waiver
FTW - Fire and Theft Waiver
Companies offer differing types of damage waiver. Many are trying to avoid covering accidents, as unskilled users can do tremendous damage to a unit.
What is a Call-off?
What does Long-term Down (LTD) mean?
