This module will establish how to set up Rental Billing and how to apply it.
Non-Vend Equipment – General
The General Tab of the Non-Vending Equipment table is used to track basic asset information such as make, model and serial number. It also provides an area to enter depreciation information and rental fees.
The type of Non-Vending Equipment. This is a general classification which broadly describes the piece of equipment.
Telemetry – Use this type to define telemetry devices added to vending machines which enables cashless activity. The Telemetry Non-Vending Equipment is used in VendMax to identify Points of Sale with cashless functionality.
For CRANE devices, the telemetry device must be validated. When creating new telemetry non-vending equipment records, press the Validate button.
Serial Number for Non-Vending Equipment
Make of Non-Vending Equipment
Model of Non-Vending Equipment
Choices are lease, purchase, or no depreciation. If the lease option is chosen, the system will calculate an expense for each Vend Visit or Delivery Sale based on a fraction of the Monthly Payment amount described below.
If Purchase is chosen, the system will calculate a monthly depreciation amount as ((Purchase Price – Sell Price) / Depreciation Months), and apply a depreciation amount to each Vend Visit or Delivery Sale based on a fraction of the month. In either case, these amounts will be shown as expenses on the Profit and Loss Statement.
If the “No Depreciation” option is chosen here, then there will be no depreciation expense calculated or attributed to Vend Visits or Delivery Sales to Points of Sale where this Non-Vending Equipment is placed.
VendMax calculates depreciation on each vend visit (but not on delivery sales or outsourced vend visits). Depreciation information is stored in the vend visit record and is used in financial reports.
Depreciation is calculated based on Finance Type:
No Depreciation – Depreciation will not be calculated.
Lease – Depreciation = [(Monthly Payment)/ 30] * number days since previous vend visit
Purchase – If number of Depreciation Months since the first vend visit to the current vend visit have passed then no depreciation is calculated. If the Depreciation Months have not passed, then (Number of days since prev. vend visit) * [(Purchase Price / Depreciation Months)/ 30]
Price paid for Non-Vending Equipment.
Residual value of Non-Vending Equipment.
Date the Non-Vending Equipment was purchased.
Date the Non-Vending Equipment was or will be sold.
Number of months used for depreciation.
If you choose a Finance Type of lease you would put the monthly payment here.
Non-Vending Equipment must always be either assigned to a Point of Sale, or placed in a Zone. When the equipment record is initially created, VendMAX will ask the user to assign a Zone where the equipment will initially be located. Non-Vending Equipment can be placed at a Point of Sale by assigning it on the Point of Sale – Equipment tab. Once this has been done, the “Current Zone Field will be blank. If the equipment is subsequently removed from the POS where it had been assigned, this field will show the description of the Zone where it is located.
This button is only active if the Non-Vending Equipment is currently placed in a Zone. This button will reveal a dialog box that provides a lookup for a new Zone, and allows the user to select the date and time that the move will become effective. This is the proper method for transferring equipment between sites.
Select the billing frequencies for which invoices are to be generated. Choices are Custom, Weekly, Bi-Weekly, Monthly, and Quarterly and Yearly. Use the custom setting when none of the other billing frequencies apply.
If a rental fee will be charged to the account where this equipment is placed, enter the rental fee in this field. VendMAX will pick up this amount and create a Delivery Sale record during the Rental Billing Activity amount to $30. If you have another customer you plan to bill weekly, set the billing period to weekly and the set the weekly amount.
The starting date for rental income. Rental invoices for the first period will be pro-rated based upon the start date. If the start date is blank, invoices will not be pro-rated. Pro-rating is based upon the start date and the system date on your PC. It does not use the Rental Billings “Generate Invoices For (Date)”.
If a Start Date happens to be in the PRIOR CALENDAR MONTH, the rental amount would be calculated as [Total Rental Amount] / [number of days in the prior month] * [number of days between start date and end of that month]. For example, if the start date is 8/22/20, and the system date on your PC is 9/03/20, the invoice is pro-rated based upon the number of days in August.
If a Start Date happens to be in CURRENT CALENDAR MONTH OR LATER, no invoice is generated. For example, if the start date is 8/22/20, and the system date on your PC is 8/30/20, no invoice is generated. If a Start Date happens to be in the months BEFORE PRIOR CALENDAR MONTH, the rental invoice is generated as if there was no Start Date entered. For example, if the start date is 8/22/20 and your PC date is 10/31/20, the invoice is created for the full rental amount.
TIP: It is recommended that you set up your rentals for month-end billing when using pro-rated functionality. Pro-rating is based upon the calendar month. During the first week of the new month, run Generate Rental Billings the last month.
The ending date for rental income. Rental invoices for the last period will be pro-rated based upon the end date. If the ending date is blank, rentals will be generated without end.
If an End Date happens to be in the PRIOR CALENDAR MONTH, the rental amount would be calculated as [Total Rental Amount] / [number of days in the prior month] * [number of days between start of that month and the End Date]. For example, if the end date is set to 9/15/20, your system date must be in October 2020 in order for the rental to be pro-rated.
If an End Date happens to be in CURRENT CALENDAR MONTH OR LATER, the rental invoice is generated as if there was no End Date entered. For example, if the end date is set to 9/15/20, and your system is also in September 2020, the full rental amount will be created.
If an End Date happens to be in the months BEFORE PRIOR CALENDAR MONTH, no invoice is generated.
Many Delivery Operations incorporate a Rental Fee for the use of Equipment which is placed at the Account Site. This might include coffee brewers, microwave ovens, refrigerators or water purifiers. These rental amounts are defined on the Non-Vend Equipment – General screen. There is no period defined for these rentals. Every time the Rental Billing function is activated, DeliveryMAX will create a Delivery Sale for every piece of Non-Vending equipment which has a Rental Amount assigned.
The Rental Billing Activity will check all Points of Sale for each piece of Non-Vending Equipment assigned on the Points of Sale – Equipment screen. Any of this equipment which has a rental amount defined will be accumulated together, and a Delivery Sale will be created for that Point of Sale, billed to the same Bill-To account as all other Deliveries made to that POS. To start the process, the following dialog box is displayed:
Generate Billing by Frequency
Select the billing frequencies for which invoices are to be generated. You can select multiple check boxes. For example, at the end of March, you can select Weekly, Biweekly, Monthly, and Quarterly to generate all of the required rental invoices at once.
Rental invoices will be generated for all non-vending equipment with frequencies which match the rental periods selected.
Generate Invoices for (Date):
Since A Delivery Sale Transaction will be created, VendMAX needs to know what Sale Date you would like to use. You can use the dropdown button to open a calendar and select the date, or type the date directly into the Generate Date: field using the mm/dd/yy format.
Keep in mind you control which invoices will be generated by using the checkboxes. Invoices can accidently be generated for the wrong period if you select the wrong check box!
The Custom check box can be used to generate invoices for a frequency which may not be available. When Custom is selected, rental invoices for all non-vending equipment with the custom setting will be generated.
TIP: It is recommended if you are using pro-rated rental billings, that you maintain a month-end billing cycle for rentals, as pro-rating is based upon the calendar month. Please note that Pro-rating uses the system date and not the Generate Invoices for (Date). Therefore, do not print rental invoices in advance of month-end. For example, if it is 9/27/11, and you have new rentals that you are pro-rating, you cannot generate rentals prior to October 2011, even though you might enter a 10/1/11 generation date. You must wait until October to run your September rentals. In addition, you must generate the rentals in the month of October in order for September rentals to be properly pro-rated.
Bill Rentals As (Invoice Item):
The new Delivery Sale must use an Invoice Item* as its Sale Item in the detail for the Delivery. You can use the Quick Lookup Button,>> , to reveal a list of all possible records in the appropriate Master File.
*Invoice Items – Overview
The Invoice Items Master File is a place to store information about non-product items which may be billed to a Delivery Point of Sale. This will include Monthly Rental charges, Delivery Fees, Repair Service Charges and Cleaning Services.
The Pricing for these Invoice Items is defined in exactly the same way as Products. See DeliveryMAX Pricing Strategies for a full explanation of pricing rules and strategy.
DeliveryMAX System Considerations
- There are 3 Invoice Items that are needed for VendMAX system relates entries. The first 2 relate to Accounts Receivable. When Billing terms are established and assigned to a Customer or Location, you can define Late Charges and Early Payment Discounts.
- Before printing Statements or Invoices, you would normally choose to Generate A/R This is a request for DeliveryMAX to calculate discounts or finance charges which are due. When this is done, DeliveryMAX will create a new Delivery Sale to the Customer with the Invoice Item called “Early Payment Discount” or “Late Payment Finance Charge” that applies. Therefore, these two Invoice Items are system entries and cannot be deleted or edited.
- The third System Consideration relates to Rental Billing. Rental Billing is defined for a piece of Non-Vending Equipment on the Non Vend Equipment – General tab. Then when the Non-Vending Equipment is placed at a Delivery POS, the National Account, Customer or Location set as the “Bill-To” on the Products – Main tab will be responsible for the rental fee. However, Rental Bills are not produced automatically in DeliveryMAX. You will need to run the Rental Billing Activity to generate the Rental Bills. When this activity is run, the dialog will ask what Invoice Item you would like the Rental Bill line item to appear under. You should create an Invoice Item for Rental Billing of equipment. This will give you the opportunity to select the Invoice Item you have created here for that purpose.
- TIP: Within the VendMAX Warehouse Handheld and Route Driver Handheld applications, invoice items are currently not available through the Product Picker for a Delivery POS. In order to bill an invoice item from the handheld, the invoice item must be in the Standing Order or the recently ordered items (History) for the POS. If you occasionally have your driver’s bill for an invoice item, you should add it to the Standing Order with no quantity.
Generate Using Route:
If you select the option to use the default route, then DeliveryMAX will use the Route assigned as a Default Route on the scheduling page of the POS when it creates the Delivery Sale. If you pay Sales or Driver commissions for that POS, then the default driver, and the assigned Sales Person are going to get commission on the rental amount.
If you would prefer not to pay these commissions, then you can choose a specific route here, effectively generating the commissions for a Route which may not even exist.
Generate comments for each invoice line items
This option will Generate comment lines in the newly created Delivery Sale. The comment lines will describe the Rental amount and the Equipment description for each piece of Non-Vending Equipment which is assigned, and being billed. This option is recommended.
This button will start the process. When it is completed, you will may review the results in the Delivery Sales table.