RESIDUAL VALUE INFORMATION

A residual balance amount is an extra payment required at the end of the agreement, similar to a balloon payment.

Use Residual Balance

Click this checkbox if the agreements have an additional amount added to the end of the agreement.  Some states require a residual amount be added to the payoff amount.   This amount is not added to the balance of the agreement.

Use Residual Balance

If this checkbox is not checked the agreements do not have an additional amount added to the end of the agreement.

The Calculate From option allows the user to decide whether to base the residual value off of the cash price of the items or the balance of the agreement.

Retail

Choose Retail if the residual value is a percentage of the cash price.

Balance

Choose Balance if the residual value is a percentage of the original contract balance.

Enter the percentage for the residual amount.  If the residual amount is 11% of the retail price, then enter 11.00 in this field.  If the residual amount is 11% of the original contract balance enter 11.00 in this field.

DEFAULT INFORMATION

Enter the tax code from the Tax Code file, to be used as a default for each of the 3 tax code fields.  These are the tax code used most often by your company, to determine the amount of sales tax charged to a customer when they rent an item.  A drop-down box reveals the tax codes previously entered in the Tax Code file.  If you do not see the Tax Code you want to use, click ". . ." beside the drop-down box to access this file.

The ". . . "  button is used to access the Tax Code file.

Enter the tax code from the Tax Code file, to be used as a default for the cash sale transaction.  This is the tax code used most often by your company, to determine the amount of sales tax charged to a customer when they purchase an item for cash.  A drop-down box reveals the tax codes previously entered in the Tax Code file.  If you do not see the Tax Code you want to use, click ". . ." beside the drop-down box of the Default Tax Code field to access this file.

Enter the default payment method.  Enter the way most customers rent in your company.  For example, if the majority of your customers rent "Weekly" then you would select the "Weekly" payment method.  A drop-down box reveals the available payment methods.

Enter the default rental type.  Enter the most commonly used rental type for your company.  For example, if the majority of your customers rent-to-own merchandise then you would select the "Rent-To-Own" rental type.  A drop-down box reveals the active rental types.

The ". . ." button is used to access the Rental Type file.

The waiver or insurance fees can be a flat dollar amount or can be calculated as a percentage of the rental rate.

Waiver based on Percent

If this checkbox is checked the waiver amount is calculated using a percentage of the rental rate.

Waiver based on Percent

If this checkbox is not checked the waiver amount is a flat dollar amount.

Number of Contracts to Print

The RAM System allows you to print rental agreements automatically when you rent items to customers, this field determines the number of copies of the agreement you want to print.  Depending on the type of agreement you have selected you could have (1) one copy if you are using 2 or 3 part forms, or you are using a laser printed agreement you could print as many copies as you need.

Enter the number of copies of your rental agreement you want to print when you rent an agreement or print agreements.

Enter the number of days an agreement can remain pending before being automatically terminated by the system.  Example:  If you input 90 days, this tells the system that an agreement can remain rented WITHOUT having money applied for 90 days.  After the 90th day, without any money the agreement is AUTOMATICALLY terminated, during the Close Day process.

PAYOFF INFORMATION

There is a Payoff file in the system used to calculate the early discount given to customers who payout their agreements before the end of the agreement period.

Use Payoff File

If this checkbox is checked the system automatically calculates an early discount percentage for all agreement based on the information you input in the Payoff file.  The Payoff file requires you to add a record for each agreement period you rent.  (For example, 1 record for 78 weeks, 1 record for 77 weeks, 1 record for 18 months, 1 record for 17 months, etc.)

Use Payoff File

If this checkbox is not checked the system uses the remaining balance on the agreement as the payoff amount.

You have the option of whether you want to charge your customer a waiver fee on the last payment of the agreement.  The last payment being the payment that pays out the agreement.

Collect Waiver on Payoff

If this checkbox is checked the customer is charged a waiver fee on the last payment when it will payout the agreement.

Collect Waiver on Payoff

If this checkbox is not checked the customer is not charged a waiver fee on the last, or "payout" payment.

The system allows you to decide whether you will refund the club membership and/or insurance/waiver overpayments to the early payout price.  The overpayment of club/waiver can be subtracted from the early payout price if this option is checked.

Refund Club/Waiver Overpayments

Check this box if you want all club/waiver overpayments due to the customer paying ahead of the scheduled payout to be subtracted from the early payout price.

Refund Club/Waiver Overpayments

Do NOT check this box if you want all club/waiver overpayments due to the customer paying ahead of the scheduled payout NOT to be subtracted from the early payout price.

The system allows you to decide whether you will charge tax on the last payment of the agreement.  The last payment being the payment that pays out the agreement. A drop-down box reveals the choices for this setting.

YES

If you choose Yes all agreements are charged tax on the payoff amount.  This would cause even tax-exempt agreements to be charged tax on the last payment.

NO

If you choose No agreements are not charged tax on the payoff amount.  This would cause taxable agreements not to be charged tax on the last payment.

TAX ONLY TAXABLE

If you choose Tax Only Taxable agreements that are set to tax-exempt would NOT be charged tax on any payments.  Agreements that are set to taxable would be charged tax on the last payment as well.

RATE TABLE INFORMATION

Use Rates File

If this checkbox is checked you can use the Rates file to automatically calculate the rental rates on your inventory based on the cost and the other fields in the Rates file.

Use Rates File

If this checkbox is not checked you can manually enter the rates on each individual inventory item.

Ignore Min/Max on Rates

If this checkbox is checked the system will ignore the minimum and maximum prices figures in the Rates file and calculate the rental rate based on the cost regardless of the minimum and maximum pricing.

Ignore Min/Max on Rates

If this checkbox is not checked the system enforces the minimum and maximum pricing and limits the calculation of the rental rates to the minimum and the maximums you set up.

Residual value is best explained as an amount added to the end of an agreement, or an amount added to the payoff.  What it means to the customer's payment is when the normal early payoff amount is calculated an additional percentage of either the original agreement balance or the retail price is added to that discounted payoff amount.  That's all, just an extra payment, like a balloon payment added on to the last payment on the agreement.

Make sure you add a tax code for 6.5% in the Tax Code file.

Then set the default tax code to be the 6.5% tax code you entered.  That's it.  When you add a new customer, the default tax code will be 6.5% and it will be automatically applied to all items that are taxable.