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Overview

You can have finance contracts for machines where the finance company provides the machine, the customer uses the machine and the finance company pays copy costs up to an agreed value each month. The customer then pays the overs in any month where the customers usage in the month exceeds the agreed maximum monthly usage to be charged to the finance company. Invoicing for the month is split between the finance company and the customer:

  • The customer gets a "overs" invoice for the over usage, only if the customer exceeds the agreed maximum usage for the month
  • The finance company always gets an invoice for any usage charged less than or up to the maximum usage for the month.

Worked example

Each month a set volume of usage is charged to a Finance Company for a range of machines. At the end of each quarter we charge for any usage over the agreed volume not to the Finance Company but to the End User (customer).
The "Machine Charge Group" feature would be used to implemented this.

Expand
titleShow me an example

Customer A has three machines being numbers 1,2 and 3. 
Finance company B agrees to pay up to $1000 ex gst of usage charges for printers 1,2 and 3 each month. 
In month 1 usages is $800. So $1000 is charged to finance company B. Like a minimum charge for the print services agreement. The credit is carried forward. 
In month 2 usages is $1200. Of this $1000 is charged to finance company B. The excess being $200 is carried forward as a variance. 
In month 3 usages is $1100. Of this $1000 is charged to finance company B. The excess being $100 is carried forward as a variance. 
In month 3 usages the sum of all variances for the quarter. Being -$200 for month 1, $200 from month 2 and $100 from month 1 are charged to the end customer A. The net result being a charge of $100. 

Month

(3 month/quarterly cycle)

Usage

Invoice to Finance Company

(charge to limit)

Carried Forward Variance

(CFV)

Invoice to End Customer


1$8001000-2000
212001000+2000
311001000+100100 (Net of all CFV at end of a charge cycle)


...

Note

You should set up a product to stand for Monthly Finance charge eg MPSFIN (MPS Plan Min Charge to Finance) and assign this product to each machine that is part of the MPS cycle on the Total Meter and then also assign this product to the Machine Charge Group.

It is optional, but you may wish to setup products to identify the overusage to be charged on the invoice for the customer at the end of the cycle.
If you choose to set up a product, then ensure you assign this product to each appropriate meter on each machine on the MPS cycle (eg black meter or colour meter etc but not the total meter)

Eg you can set up a product called 'MonoOverUsuage' Product name = 'Charges for over usage on Mono' and assign this product to the Machines for the MPS cycle for the mono meter print charge.
Then set up another product eg 'ColourOverUsage' Product name = Charges for over usage on Colour' and assign this product to the machines for MPS cycle for the colour meter print charge. 

The product appears on the invoices, so we want the product code and name to clearly indicate this product relates to over limit charges to do with a machine finance agreement.

When extracting a meter charge run, you don't actually see the charges to the Finance company until you click on Finalise and/or Complete after clicking on Preparing Shipments.

IrrespectivelyIrespectively, each month based upon the value in the cycle field, a invoice is generated from the meter charge run to the Finance company. So the finance company will always receive a monthly invoice for only the actual usage to the limit.
So if the value exceeds the limit for that month, the finance company will get charged the value of the limit.

If the sum of all the values are less that the total sum of the limit, then no variance invoice is greater.

If the sum of all the values is greater than the sum of the limits, then a variance invoice is created and charged to the customer.


The meter charge run also creates a invoice to stand for each customer/machine on the MPS machine charge group but the status on these invoices are flagged as Cancelled with a zero value.
See example screen shots below:




Not until the last cycle of the meter charge run for a charge group, will the customer be charged only if there is an over usage

...