Rental

RENTAL

1. Purpose

Rental product in Soft4Leasing implements requirements for flexible car rental, typically for consumers and small businessess, where customer will

• Select car model, select mileage tier (e.g. 10000/20000/30000 km per year), opt-in additional services and insurances
• Pay one monthly rental in advance
• Use the car for any number of months, until return (notice period applies, e.g. 14 days)
• Get monthly bill for next month in advance
• On car return – get final bill.

NOTE: Invoice documents will not be issued to the customer with each installment. Customer contract shall include automated payment collection (like direct debit or payment card charge). For VAT purposes, „Customer statement“ to be used. This approach enables re-chargeable costs to be charged to customer account („Customer Ledger Entries“) as incured. For example – fuel, car wash, road tall, admin fee for handling infridgement notices (speeding tickets).

2. Financial Product Setup

The highlighted fields indicate typical setup for Rental product.

Must include „RENTAL“ product on Leasing Setup field „Inertia Billing FinProd Filter“ :

3. Program Setup

In rental product, the typical program setup shall have “1 month“ by defaut Term. Meaning, the customer commits for one period and then auto-extends (runs „Inertia“ periods, same way as in Operating Lease).
NOTE: Program rates can be configured, but it does not affect rental price (the installment).

4. Rental Pricing Setup

Rental price will default to Rental Quote/Application, if configuration available (user input, otherwise).

• Financial Product – Financial Product code.
• Program Code – program code.
• Asset Model – asset model number.
• Model Description – asset model description.
• Asset Age at Lease Start (Months) – define asset age on rental contract start.
• Lease Term (Months) – contract term by number of months.
• Monthly Rental – montly rental price.
• Monthly Rental Tolerance % - defines rental price tolerance to modify.

5. Quote

Select, financial product, asset model, input mileage per year– the monhtly rental price gets calculated.
NOTE: there are specifig pages/fieldgroups used for Rental products:

• „Rental Asset“ field group (replacing regular „Asset“ field group)
• „Rental“ cardpart, replacing regular „Financing“ (Schedule CardPart Quote/Appl)
• „Rental Asset Models“ on model lookup
• „Rental Contract Services“ on Services assist edit
• „Rental Schedule Card QA“ on action „Rental Schedule“

Separate pages needed for future flexibility, as rental product evolve

6. Schedule calculation

There is no customer shedule in rental product. However, for consistency with other lease/credit products and fit into single data model, the schedule lines are created in the system (one initial „Installment“, which will go inertia on invoicing run):

The Rental Schedule is calculated by specific codeunit, controled by setting on Financial Product:

„Rental Schedule Lines Subpage“ is specific for rental product.

After action „Show All Fields“:

As we do not actually finance the asset, there are difference from lease/credit products:
[1] „Asset Value“ in rental is the same field as „Outstanding amount“ in financing products, but has no relation to customer installment calculation (rental price is comming from setup, by model, age, mileage)
[2] under „Asset Value Amortization“ is field „Principal“, which refers to asset value amortization, has no effect on customer installment. Amortization is based on initial asset value („Financed amount“ field) and residual value estimate, directly from „Residual Value Setup“. [3] „Interest“ is percentage of declining Asset Value, has no effect on customer installment.
[4] „Rental“ is comming from user input on Asset.“Rental Price“, defaults from „Rental Price Setup“ (NOT sum of principal and interest)

7. Application

Application page layout follows the same pattern as Quote page. There are specifig pages/fieldgroups used for Rental products, same as Quote page:
-„Rental Asset“ field group (replacing regular „Asset“ field group)
-„Rental“ cardpart, replacing regular „Financing“ (Schedule CardPart Quote/Appl)
-„Rental Asset Models“ on model lookup
-„Rental Contract Services“ on Services assist edit
-„Rental Schedule Card QA“ on action „Rental Schedule“
In essence, Application process is the same as other products, but usually would have much simpler approval process.
Contract documentation would usually be simple and signed via e-signature.
„Applicants“ section would usually not have complex structure: just „Primary Applicant“ for consumer rentals, plus one„Director“ for business rentals (the one who e-signs the contract)

8. Contract Activation

Usually, the „Contract Compliance“ would be replaced with „Asset Delivery“ workflow, which leads to contract activation.
On activation posting, balance sheet is accounted same way as Operating lease, same as „Lease Inventory“ method.

9. Invoicing run

Process is the same as Operating lease with Inertia.
Revenue postings in on „Total Installment“ (NOT principal+Interest)
NOTE: to test Inertia invoicing, you would need to change your Workdate by month forward and use „Invoicing Run“ function. Do this month-by-month, one onth at a time.

10. Service accounting

In Rental, same way as „Full Service Lease“ – using „Service Packages“ and „Service Prices“ in quotation/application stage.
Use „Service API“ to process servicer, fuel, etc. Invoices. Accounts for actual costs and re-charge to customer account, if applicable.
For API simulation you can use excel file from to
drop them to „Service API Documents“ page.

11. Asset Assessment/Return

In Rental, same way as „Full Service Lease“, with this setup: