Rental Default Data Fields

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Active

Rental defaults should never be deleted if rental contracts under the default remain outstanding. If a rental default becomes obsolete, pull up the applicable rental default and click the Active box in order to deselect it. The outstanding contracts will continue to refer to the default but the inactive default may no longer be selected when entering new contracts.

Rental Default

A word or phrase that describes the type of rental being established.

Rental Type

Click in the Rental Type box and select the type applicable to the rental default you are establishing. A description of the available contract types are described under 'Types of Rentals'.

Principle Tax Code

If the principle portion of the rent is taxable, click the Tax Code box next to Principle and select Tax Rate 1 if the tax rate associated with Tax Rate 1 in Tax Authorities applies to the default being established.

If rent is taxable, click the Tax Code box and select Tax Rate 2 if the tax rate associated with Tax Rate 2 in Tax Authorities applies to the default being established. The 'Tax Rate 2' option does not apply if you are located in the United States.

If rent is taxable, click the Tax Code box and select Both Tax Rates if the tax rate associated with both Tax Rate 1 and Tax Rate 2 in Tax Authorities applies to the default being established. The 'Both Tax Rates' option does not apply if you are located in the United States.

If rent is not taxable or you are setting up a contract default for your tax exempt rentals (i.e. schools or churches), click the Tax Code box and select Tax Exempt from the drop down list.

Maintenance Tax Code

If the type of contract being established has a maintenance or insurance option and maintenance is taxable, click in the Tax Code box next to Maintenance and select Tax Rate 1 if the tax rate associated with Tax Rate 1 in Tax Authorities applies.

If maintenance is taxable, click the Tax Code box and select Tax Rate 2 if the tax rate associated with Tax Rate 2 in Tax Authorities applies. The 'Tax Rate 2' option does not apply if you are located in the United States.

If maintenance is taxable, click the Tax Code box and select Both Tax Rates if the tax rate associated with both Tax Rate 1 and Tax Rate 2 in Tax Authorities applies. The 'Both Tax Rates' option does not apply if you are located in the United States.

If maintenance is not taxable or you are setting up a contract default for your tax exempt rentals (i.e. schools or churches), click the Tax Code box and select Tax Exempt from the drop down list.

Note: The Maintenance Tax Code is unavailable if the Rental Type selected is 'Extended Warranty'. If maintenance is not taxable in your state, you should have selected 'Tax Exempt' in the Principle Tax Code box as the principle on Extended Warranty contracts is maintenance.

Late Fee Tax Code

If late fees are taxable in your state, click in the Tax Code box next to Late Fee and select Tax Rate 1 if the tax rate associated with Tax Rate 1 in Tax Authorities applies.

If late fees are taxable, click the Tax Code box and select Tax Rate 2 if the tax rate associated with Tax Rate 2 in Tax Authorities applies. The 'Tax Rate 2' option does not apply if you are located in the United States.

If late fees are taxable, click the Tax Code box and select Both Tax Rates if the tax rate associated with both Tax Rate 1 and Tax Rate 2 in Tax Authorities applies. The 'Both Tax Rates' option does not apply if you are located in the United States.

If late fees are not taxable or you are setting up a contract default for your tax exempt rentals (i.e. schools or churches), click the Tax Code box and select Tax Exempt from the drop down list.

Lease Services Tax Code

If the type of contract being established has an even lease or rental fee to be calculated into each payment and the fee is taxable, click in the Tax Code box next to Lease Services and select Tax Rate 1 if the tax rate associated with Tax Rate 1 in Tax Authorities applies.

If the lease fee is taxable, click the Tax Code box and select Tax Rate 2 if the tax rate associated with Tax Rate 2 in Tax Authorities applies. The 'Tax Rate 2' option does not apply if you are located in the United States.

If the lease fee is taxable, click the Tax Code box and select Both Tax Rates if the tax rate associated with both Tax Rate 1 and Tax Rate 2 in Tax Authorities applies. The 'Both Tax Rates' option does not apply if you are located in the United States.

If the lease fee is not taxable or you are setting up a contract default for your tax exempt rentals (i.e. schools or churches), click the Tax Code box and select Tax Exempt from the drop down list.

Payoff Formula

If the Rental Type selected is 'Rent to Rent', the Payoff Formula box will be available. The Payoff Formulas are established in 'Add/Change Payoff Formulas' under Rental Maintenance. Refer to 'Rental Payoff Formulas' for more information.

Click in the Payoff Formula box and select the payoff formula that applies to the rent to rent contract default being established.

Interest Rate

If the Rental Type selected is either 'Rent to Purchase', 'Sales Contract', 'Simple Interest – Rent' or 'Simple Interest – Sales' the Interest Rate box will be available.

If the type of rental being established is to be charged interest, type the interest rate in decimal form, i.e. .169 for 16.9%.

Free Months

If the Rental Type selected is either 'Simple Interest – Rent' or 'Simple Interest – Sales', the Free Months box will be available.

If the type of contract being established is to have a certain number of months where interest should not be charged, enter the number of months 'free' here.

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Auto Pay

If contracts entered under the rental default being established are to be set up on an automatic payment plan with credit card or bank debit, click the Auto Pay box in order to select it. This option may be changed individually by contract.

Type

If the Auto Pay option is selected, the auto pay type must be selected in the Type box. The options include Credit Card-Icverify or Bank Debit.

Only If Payment is Late By __ Days

If the credit card or bank debit is to only take effect if the customer is late on a payment, click the Only if Payment is Late box and enter the number of days the customer has before the credit card is charged or bank account is debited.

Payment Frequency

Click in the Payment Frequency box and select the payment frequency of the contract.

Example: Select 1 if the customer is to make monthly payments, select 3 if the customer is to make quarterly payments, select 12 if the customer is to make yearly payments.

If the rental payments are not based on a regular schedule, select 1 as the Payment Frequency.

Irregular Payment Schedule

If the rental payments are not based on a regular schedule, click Irregular Payment Schedule in order to select it. For those contracts set up on an irregular payment schedule, the next payment due date and next payment due amount must be entered each time a payment is made on the contract.

Example: An Irregular Payment Schedule may apply if your rentals are based on a school semester session and summer session.

Tax Depr

The Tax Depr box will not be available if the Rental Type is Extended Warranty, Sales Contract or Simple Interest – Sales.

If the inventory that goes out on rent under the default being established should be depreciated using a tax depreciation schedule, click in the Tax Depr box and select the applicable tax depreciation schedule from the drop down list. The tax depreciation schedules are established in 'Depreciation Schedules' on the Inventory Maintenance menu.

Book Depr

The Book Depr box will not be available if the Rental Type is Extended Warranty, Sales Contract or Simple Interest – Sales.

If the inventory that goes out on rent under the default being established should be depreciated using a book depreciation schedule, click in the Book Depr box and select the book depreciation schedule from the drop down list. The book depreciation schedules are established in 'Depreciation Schedules' on the Inventory Maintenance menu.

Late Charge

If your customers must pay a late charge when rental payments are not made on time, type the late charge amount or percentage of payment to calculate as the late charge in the b box. If the amount entered is under 1.00, it will be assumed that the number is a percentage.

Grace Period

The Grace Period box should contain the number of days from the time a payment is due to the time the late charge should be assessed.

Note: The late charge will automatically be assessed; however, a late charge may be easily be 'forgiven' on individual contracts.

Payment Required Every Month

The Payment Required Every Month option is only available if the Rental Type is 'Simple Interest – Rent' or 'Simple Interest – Sale'.

If the customer must make a payment every month, regardless if multiple payments are made at once, click the b box. Any 'extra' payments are applied towards the principle.

Ask for Student and School

If you would like the Student and School boxes to appear when entering contracts under the default being established, click the Ask for Student and School box in order to select it.

The Student and School information on rental contracts is often useful for those stores that want to track rentals by school (i.e. music stores that do a large quantity of instrument band rentals). This enables you to track the item by student name and also enables you to run reports showing how well your rental business is doing by school.