In this article, we will see how we can enter rental orders in the template. If you have any questions, please leave a comment below.
This article is part of a series of support articles of Rental Business Manager Excel template. For more information on the product, please visit Rental Business Manager Excel template.
Entering Order in 2 Steps
We will enter orders in 2 steps. First is the Order Header and then the Order Details. Order Header includes information that are unique for an order. For example, there will be only one Customer Name and one Order Date for each order. Order Details include the specific assets in the rental order. We will see how we can create them.
Creating a rental Order
Let’s start with entering a simple order where we are renting 3 products to our customer ‘Customer One’. First, we will enter in the Order Headers sheet.
The Order Number should be unique. In other words, each order should be entered in one and only one row. The field should not be blank. We can enter any method of numbering orders. The template does not limit that and does not create any pre-defined order numbers. Here, we have entered ‘1’ as order number.
The order was placed on Aug 1st, 2016 and the customer wants to rent assets from 5th Aug to 16th Aug. Let’s understand that each order will have 3 dates. Order Date, Rent Out Date and Return Date.
- Order Date is the date when the order is placed. (Aug 1st)
- Rent Out Date is the date when the item will be rented out. (Aug 5th)
- Return Date is the date when the rented item will return to the inventory. (Aug 16th)
Important: All the items within an order should have the same rent out and return dates. This implies that we cannot return some or partial items separately.
Orders can be put in one of 3 Order Statuses.
- BOOKED: When the rental order is confirmed and we want to reserve the inventory for that order, we choose BOOKED status. This status will impact inventory calculations by reducing the inventory for those products on the order, between Rent Out Date and Return Date.
- CANCELLED: When the rental order is cancelled and we want to make those products available in our inventory for other orders, we do so by choosing CANCELLED status. Such orders will not be counted for revenue reporting.
- INQUIRY: When we want to provide a quote to our customers, we use the INQUIRY order status. This order will not impact inventory calculations. Items will not be reserved for such orders. They will also not be included in reporting.
In an example scenario, a customer can ask for a quote for a future date and we use INQUIRY status. A couple of days later, the customer confirms the order and we can change the status to BOOKED. A few days later, the customer requests a cancellation and we can change the status to CANCELLED.
Another important component of an order is how we are going to charge for rentals. We have options to choose from 2 rental types.
PER DAY when we charge for each day (rounded) or we want to enter a fixed rate for the entire rental duration. The template will use this to calculate order amounts.
- TAX RATE: We can set the tax rate for the entire order. You can enter 0 if tax is not applicable.
- INVOICE #: You can enter an invoice number that will appear on the invoice.
- PAYMENT DUE DATE: Date when the payment for the order is due.
- OTHER CHARGES: Any additional cost on the order. For example, shipping charges.
- ORDER LEVEL DISCOUNT: Any additional order level discount amount. We will be entering product level discounts later.
- ORDER NOTES: Enter any notes we would want to appear on the invoice.
- PAID AMOUNT: Any amount that has already been paid by customer for this order.
Entering Order Details
Now, let’s enter the products or items that are part of the order. We go to the Order Details sheet. In this example, customer wants to rent 10 Blue folding chairs, 5 Red Folding Chairs and 1 Red Folding Table.
There are 2 methods of checking rental availability of assets. We can check for availability before entering the order in the Order Details sheet.
At the top of the Order Details sheet, we can choose an asset and rental dates. The available quantity will be shown. This availability checker can calculate availability for rental periods up to 90 days. If we enter a longer window than 90 days, we will see an error message.
Important: Availability checker will consider all booked orders entered in the table, while calculating availability.
Now, once we have checked for availability for each of the 3 products and confirming that we have enough to rent, we can enter them in the table.
We enter Order Number, then choose Asset Category from drop down list. Then when we go to Asset Name column, its drop down list will show only applicable assets. For example, when I chose Chairs as my Asset Category, then Asset Name drop down will only show chairs. This helps in data entry, especially if you have a lot of assets. You can also just type Asset Name instead of choosing from drop down list.
Enter Quantity of each asset being rented and the rental price for each asset.
If you are providing any discount, enter in Unit Discount field.
As an example, the first row entered in the table shows we are renting 10 Blue Folding Chairs. Each chair costs $2 to rent per day (since our order rate type was set up as PER DAY). But we want to give $1 discount per day.
Now, let’s see how the template calculates amounts. When we scroll to the right on the Order Details sheet, we will see columns in green colored headers.
Please note that these are calculations and should not be edited. Any editing or deleting will break the workbook.
We can see that the data we entered in Order Headers sheet are brought automatically here for calculation purposes. This saves us time as we don’t have to enter them again and again for each line in our order.
- Rental Duration shows the number of days the assets on the rental order will be rented out. In this case, from Aug 5th to Aug 16th will be 12 days (including both 5th and 16th).
- Net Price will be Unit Price – Unit Discount. For Blue Folding Chairs, $2 – $1 Discount = $1.
- Amount Before Tax is Net Price * Rental Duration * Quantity. So, $1 net price for 12 days for 10 blue folding chairs will be 1* 12 * 10 = $120.
- Tax of 10% will be $12.
- Amount After Tax is $120 + $12 to $132.
Similarly, each line item’s calculations are automatically done.
That’s it. We have completed entry for the rental order. In this case, we entered 3 rows as we are renting 3 different assets. If you have more in your order, please add more rows.
In the next article, we will learn How to use Rental Availability Calendar?