Definition
Equipment Agreement is defined as the formal contract between the rental provider and the customer that outlines the specific terms, conditions, and responsibilities associated with renting assets.
Key Details
This document in rental management serves as the foundational record for a transaction, governing aspects such as the rental duration, liability, and financial obligations.
- System Category: This term is closely associated with the Tax Code – Summary (Items Taxable) section, particularly concerning the contract’s tax status.
- Tax Configuration: The system includes an “Agreement Taxable” toggle that determines whether the specific rental contract is subject to state or local taxes during the invoicing process.
- Liability Coverage: Agreements often incorporate terms for Damage Waivers or Rental Protection Plans, which define the renter’s financial liability for accidental damage or loss during the rental period.
Use Case Example
In practice
A customer enters into an Equipment Agreement for a high-value machinery rental. If the “Agreement Taxable” option is enabled in the system, PREXA365 automatically applies the relevant state and city tax codes to each bill generated under that contract. However, if the contract is marked as non-taxable, the system ensures no tax codes are applied to the invoices.