Invoicing or billing is a critical aspect of equipment rental operations. However, rental operations are complex, so the equipment rental invoicing process isn't straightforward. Each invoice you produce involves many factors and components, such as rental, overtime charges, meter charges, and damage claims.
With a strong presence of almost two decades in the equipment rental industry, To-Increase has dealt with many international rental companies struggling to digitize their invoicing processes. And we enabled them to simplify their invoicing processes with DynaRent, our rental software in Dynamics 365 for Finance and Supply Chain Management.
This article will share an overview of the invoicing capabilities our rental software in Dynamics 365 can offer your business.
You will get an understanding of the following in DynaRent for Dynamics 365:
- The rental invoicing models
- The rental invoice profiles
- The invoice configurations for equipment rental companies
- The benefits of invoicing
Equipment rental invoicing models managed by DynaRent for Dynamics 365
Our rental software can manage multiple revenue streams with different invoicing processes. The key pricing models supported are:
1. Standard rental invoicing: The leasing invoice is when the customer is invoiced a flat fee for a predefined period.
2. Consumption-based invoicing: It is a soon-to-be-released functionality where customers are invoiced based on the utilization of the rental object and the meter reading.
3. Subscription-based invoicing: In this invoicing process, customers pay recurring charges toward products or services at predefined intervals.
4. Invoicing for sales: This is used for invoicing consumables added to the primary rental object.
5. Project rental invoicing: This is used for large rental projects, and invoicing is possible for time and material projects and fixed-price projects.
Rental invoice profiles in DynaRent for Dynamics 365
An invoice profile describes the information of a particular group of invoices. Invoice profiles are required on the rental order and quotation and are used to calculate rental item prices. These profiles can be configured on a customer or vendor record and then defaulted on the rental order or quotation.
Our rental software in Dynamics 365 supports multiple types of invoice profiles, some of which are:
Hourly invoicing is often used with the rental per-hour registration functionality, and the invoicing is done based on the open hours in the used calendar.
Rental order lines are priced with the rate code hour, and you can use different rate codes which are automatically convertible. The hourly invoicing calculation is done per minute, resulting in precise charged periods.
Here is a screenshot of the hourly invoice profile in DynaRent for Dynamics 365:
This invoice profile is used to have weekly invoicing executed on a set day in the week, for example, on each Monday. The calculation of the total invoice is based on daily prices.
You can choose to set a bi-weekly invoicing profile as well, based on day prices that are executed on a particular weekday, every two weeks.
You can also do weekly invoicing based on the on-rent date or delivery date. The invoice is done one week after the on-rent date from the rental order line, and the invoices are calculated based on day prices.
Here is a screenshot of the weekly invoice profile in DynaRent for Dynamics 365:
There are different types of monthly invoice profiles in DynaRent, some of which are:
Monthly invoicing based on fixed price: It is used to invoice the entire month's prices, regardless of the number of utilization days in the month.
Monthly invoicing based on weekly prices: This calculates the monthly invoicing based on week or day prices.
Monthly invoicing based on day prices: It's used when invoicing day prices on a rental order once a month.
Here is a screenshot of the monthly invoice profile in DynaRent for Dynamics 365:
Invoice configurations for equipment rental companies
Here are some of the invoice configurations you can do with DynaRent for Dynamics 365 F&SCM:
Invoice posting setup
You can use the standard Dynamics charge codes to configure the ledger accounts for posting rental orders for owned or hired equipment and lease sub-rental orders.
Rental cost price
You can use this form to post costs on your rental equipment and can use a validity period to configure your cost prices based on the type of equipment.
You can use this to simplify your equipment rental invoicing and financial postings if you are invoicing using varied brands.
Ledger processor engine setup
You can use this to enable a multi-dimensional allocation model and periodic distribution that divides the revenue and costs into the right period. It allocates those amounts to different ledger accounts in predefined proportions across legal entities, if needed.
Apart from the default setup, rental modes can be created and updated on rental order lines when you want to increase or decrease the default pricing.
Benefits of equipment rental invoicing with DynaRent for Dynamics 365
Invoice rental orders
You can check rental order invoices (both internal and external invoices) based on the calculation and selected invoice profile. You can also check uninvoiced periods and invoice customers for precise rental asset utilization. Both project and non-project scenarios are supported with multiple variations based on flexible configurations.
Invoice sub-rental orders
One type of invoice profile is used for sub-rentals due to the discrepancy in the vendor's invoicing methods (daily, weekly, monthly, etc.). You can have maximum flexibility to register and post invoices for sub-rental orders using the calculation date set per day.
It's also possible to register variance if you cannot fully replicate the calculation method of the vendor in the system. Based on the amount of variance, the workflow can automatically approve and post vendor invoices.
Run batch invoices
For systemized periodic invoicing of rental orders, you can use the batch functionality to generate multiple invoices and add line items to the invoice. The rental solution can execute the planned batch job once or repeatedly based on the time and date setup, which is possible for both project and non-project scenarios.
Customize invoice credits
You can customize your credits for multiple crediting scenarios and combinations depending on your needs. You can create full credit, a new invoice, or combine both, allowing for greater precision. It’s possible to review expected results in the process and revert the changes for any additional validations.
Streamline crediting process
Credits can also arise from operational adjustments like rental stop, change of off-rent date, or commercial exchanges. In this case, operation activity results in a credit, and the finance department can review it before posting. Additionally, with DynaRent's rental credit wizard feature, you can manage crediting processes, handle customer invoice disputes, and reduce costs, making the job of rental crediting reps easier.
Here is a screenshot showing the credit wizard preview in DynaRent for Dynamics 365:
Allocate costs accurately
DynaRent provides multi-dimensional cost allocation and rental analytics reports. Using the dashboards on cost and project reports, you can allocate various costs to multiple dimensions, such as equipment type, countries, locations, customers, and rental orders.
Pro forma invoicing
The rental solution helps you ensure the invoice is correct before you post or send it to the customer via the 'pro forma invoice check.' Additionally, you can include previous and present credits, debits, and price or quantity adjustments before finalizing the invoice.
Rental invoice proposals
You can use this functionality to preview the expected revenue and total invoice details. These invoice proposals can be shared with customers directly or through the DynaRent Customer Portal to ensure that the expected invoice is approved by a customer before being received, reducing the payment time.
You can do a pre-invoice check for all delivered orders, which can be done periodically and before executing the invoice.
Some pre-invoice checks include:
- if the net amount is zero
- if the VAT information is incorrect
- if the rental discount given is higher than expected
- if there are open credit notes
You can do a post-invoice check for all invoiced orders that must be run periodically after the invoicing process.
Some post-invoice checks on the selected orders are:
- if the actual revenue matches the confirmed rental price
- if a rental line is not fully invoiced
- if the rental status is not delivered
- if a rental line is not stopped
Also known as summary invoicing or aggregated invoicing, with this, you can invoice different services purchased from the customers on a combined single document. A consolidated rental invoice provides all the payment information in one location, easing invoice fulfillment.
Add components to the invoice
You can deliver the main items to be rented or sold with additional components or items to the customer. It's possible to invoice for components such as insurance, attached consumables, discounts, and transport, which are allocated and processed separately but managed together.
You can automatically apply the relevant price to the rental order and track every service provided. The solution helps account for any excess utilization based on the IoT readings of the equipment and add it to the final invoice.
DynaRent offers standard rental processes and templates for billing models. It automates the equipment rental invoicing process making it quicker to calculate rental rates and create invoices. All invoicing details are connected to the rental order ID, equipment piece, and line number, which shows the exact duration of the rental period and the amount due.
Here is a screenshot showing the invoice journal line details and components such as cost price, insurance, and delivery.
Want to optimize invoicing for your equipment rental business?
If you are looking for a solution that automates the equipment rental invoicing processes with dynamic invoice profiles and pricing models, DynaRent would be a great fit.
In addition to invoice management, there are several other benefits of DynaRent. With a single source of truth for the entire rental lifecycle, the rental solution streamlines your end-to-end business processes.
You can explore more about our rental software in the DynaRent solution factsheet, which offers an overview of the solution's features and benefits.
If you want to discuss how you can enhance your rental operations and boost growth, get in touch with our industry experts.