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Early Return / Contract Termination

Termination options allow you to invoice penalty payments if specific rent objects are returned early or if the whole rent contract is canceled. This can be necessary, for example, if an external machine had to be rented for this rent contract.

This chapter is divided into the following sections:

Setting Up Termination Options

In order to use the Early Return and Contract Termination termination options in rent contracts, you must first set up the following:

These steps will be described in the following sections.

Creating a Rent Revenue Item for a Termination Option

To create a rent revenue item for the termination option, proceed as follows:

Note

If there is already a rent revenue item for the Termination revenue type, skip this step and continue with the following section.

  • Use the quick search (ALT+Q) to find the Rent Revenue Items page.
  • Create a revenue item for the Termination revenue type as described in Rent Revenue Items.

Creating an Additional Revenue for a Termination Option

To create an additional revenue for the termination option, proceed as follows:

Note

In order to create an additional revenue for the Termination price type, you must first create a rent revenue item.

  • Use the quick search (ALT+Q) to find the Rent Contract Additional Revenue Setup page.
  • Create one or more additional revenues for the Termination price type as described in Setting Up Additional Revenues.

Depositing a Termination Option in a Rent Class

Tip

For a rent-class-specific price for an early return, you can also deposit a price code with the Termination revenue type in the rent class.
For more information on working with price codes, click here.

To deposit a termination option in a rent class, proceed as follows:

For more information on adding additional costs in rent classes, click here.

Setting Up the 'Early Return' Termination Option

To set up the Early Return termination option, proceed as follows:

  • Use the quick search (ALT+Q) to find the Rent Contract Termination Options page.

Note

The termination options created on the Rent Contract Termination Options page are used globally and are not contract-specific. This means that they can be used as a template for contract-specific termination options.
You can find more information on creating contract-specific termination options here. These created termination options can then be used in this rent contract only.

  • Enter a unique code for the termination option in the Code column. This is used for the later selection of the termination option.
  • In the Description column, enter a meaningful description for the termination option.
  • In the Type column, select the Early Return option.
  • The Invoice Type and Amount or Percentage columns are no longer editable.
  • The additional Lines FastTab is displayed. Here you can further specify the amount that has to be paid in case of an early return.
  • In the Invoice Type column, select the Fixed Amount or Percentage option.
  • In the Amount or Percentage column, either enter a fixed amount or a percentage of the contract value which the customer has to pay.
  • In the Return Date Formula column, enter a date formula which will calculate the earliest return date either based on the Delivery and Return Date or the Rent Start and End Date. This date is set in the Adding Termination Options to a Rent Contract section.

Note

Example for the return date formula:
'1W' = If the rent object is returned within a week after either the Delivery and Return Date or the Rent Start and End Date, the defined amount will be invoiced.
'1M' = If the rent object is returned within a month after either the Delivery and Return Date or the Rent Start and End Date, the defined amount will be invoiced.
If no further formulas are specified, no amount is invoiced for returns more than a month after either the Delivery and Return Date or the Rent Start and End Date.
You can furthermore use the formulas 'D' (Day), 'Q' (Quarter) or 'Y' (Year) for this column.

Setting Up the 'Contract Termination' Termination Option

To set up the Contract Termination termination option, proceed as follows:

  • Use the quick search (ALT+Q) to find the Rent Contract Termination Options page.

Note

The termination options created on the Rent Contract Termination Options page are used globally and are not contract-specific. This means that they can be used as a template for contract-specific termination options.
You can find more information on creating contract-specific termination options here. These created termination options can then be used in this rent contract only.

  • Enter a unique code for the termination option in the Code column. This is used for the later selection of the termination option.
  • In the Description column, enter a meaningful description for the termination option.
  • In the Type column, select the Cancellation option.
  • In the Invoice Type column, select the Fixed Amount or Percentage option.
  • In the Amount or Percentage column, either enter a fixed amount or a percentage of the contract value which the customer has to pay.

Adding Termination Options to a Rent Contract

Once you have made all the necessary setups for using the termination options, you can now use them in the processing of a rent contract. To do so, proceed as follows:

Note

If termination options are created specifically for a rent contract, all rent objects from this rent contract have to be returned early in order for the penalty payment to be invoiced. Termination options can also be deposited directly in a rent class. If this rent class is added to a rent contract, the penalty payment is invoiced as soon as this rent class is returned early.

Note

Alternatively, you can also add a termination line to a rent contract as a general additional revenue. To do this, click Functions > Add General Additional Revenue in the Lines FastTab and select the respective line from the list. For more information on adding additional revenues, click here.

Note

Please note that the Contract Termination termination option can only be added to a rent contract as a general additional revenue. It cannot be assigned to a rent class line. For more information on adding additional revenues, click here.

  • Click in the Termination Option Code column in the Lines FastTab.
  • The Termination Option page is displayed. This page shows the termination options that have been created for this rent contract.

Tip

Alternatively, mark the termination line and select Manage > Termination Options from the menu bar of the Lines FastTab.

Note

If you select the Early Return option, the Invoice Type and Amount or Percentage columns are not editable. You define these values in the Lines FastTab as described below.

  • Complete the columns on this page as described in the Setting Up the 'Early Return' Termination Option or Setting Up the 'Contract Termination' Termination Option sections.
  • Optional To use the global termination options that have been set up on the Rent Contract Termination Options page, proceed as follows:
    • Click the three dots in the menu bar of the Termination Option window.
    • Select Copy.
    • The Rent Contract Termination Options page is displayed.
    • Select the desired line from the list.
    • Confirm your selection with OK.
    • The line is copied into the termination options of the rent contract. You can then edit this line.
  • For lines of the Early Return type, the Lines FastTab is displayed. Here you can further specify the amount that has to be paid.
  • In the Invoice Type column, select the Fixed Amount or Percentage option.
  • In the Calculation Option column, select whether the Delivery and Return Date or the Rent Start and End Date is used for calculating the earliest date.

Tip

On the Rent Setup page, you can select in the Termination Early Return Option field of the Contract Settings FastTab whether the Delivery and Return Date or the Rent Start and End Date is used by default for calculating the earliest date.

  • Optional In the Earliest Return Date column, select the earliest return date. A penalty payment is invoiced if the rent object is returned before this date. You can define this date manually or have it calculated by using the date formula and the Delivery and Return Date or the Rent Start and End Date.
  • In the Return Date Formula column, enter a date formula which will calculate the earliest return date either based on the Delivery and Return Date or the Rent Start and End Date, depending on your selection in the Calculation Option column.

Note

Example for the return date formula:
'1W' = If the rent object is returned within a week after either the Delivery and Return Date or the Rent Start and End Date, the defined amount will be invoiced.
'1M' = If the rent object is returned within a month after either the Delivery and Return Date or the Rent Start and End Date, the defined amount will be invoiced.
If no further formulas are specified, no amount is invoiced for returns more than a month after either the Delivery and Return Date or the Rent Start and End Date.
You can furthermore use the formulas 'D' (Day), 'Q' (Quarter) or 'Y' (Year) for this column. If you leave the Return Date Formula column empty, the specified amount will always be invoiced before the Delivery and Return Date or the Rent Start and End Date.

  • In the Amount or Percentage column, either enter a fixed amount or a percentage of the contract value which the customer has to pay.
  • Select the desired lines.
  • Confirm your selection with OK.
  • Process the rent contract as usual.

Tip

Once the rent contract has been posted, you can use the Documents > Open End Of Contract Lines option in the menu bar of the Invoice Plan to retroactively adjust the penalty amounts to be invoiced.