How does Max Charge work?

Updated by Cheryl Wallace

The Max Charge on a rate sheet is used to cap total rental charges. Depending on the inventory type, this is calculated differently.

Serialized

For serialized part numbers the Max Charge applies to the entire duration of the rental for an item and is cumulative. Once the maximum is reached, no further rent will be charged until the item is returned.

Example: An item is issued in September 1st, 2025 with and partial billings are run at each month end. If the Monthly rate is 50 and the Max Charge is 175, charges will be calculated as follows:

  • September 30 - $50
  • October 31 - $50
  • November 30 - $50
  • December 31 - $25 Calculated as 175-(50+50+50)
  • January 31 - $0

Bulk

For bulk parts, the Max Charge applies to the rental period in the billing cycle for a quantity of 1. This is renewed and recalculated each rental period.

Example: Three of the same part number are together on issued September 1st, 2025, two are returned on November 30th, and partial billings are run at each month end. If the Monthly rate is 10 and the Max Charge is 20, the charges will be calculated as follows:

  • September 30 - $30 Calculated as 3 x 10
  • October 31 - $30 Calculated as 3 x 10
  • November 30 - $30 Calculated as 3 x 10
  • December 31 - $10 Calculated as 1 x 10
  • January 31 - $10 Calculated as 1 x 10. Note that the Max Charge is never reached within the billing period.

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