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Out of Contract Usage

Everything about Out of Contract Usage

Introduction

Your rented equipment is governed by contractual terms: validity period, covered days, daily hour caps, and specific billing conditions. When a machine is used outside this framework, the corresponding revenue can easily go unnoticed.

Out of Contract Usage automatically compares your equipment's real usage against its contractual terms to surface gaps, estimate their value, and help you track them through to billing.

This feature is part of the Connect module.

How it works

Out of Contract Usage cross-references two data sources: usage data reported by your connected equipment and contract lines associated with each machine, imported into Hiboo through your ERP integration.

Whenever usage falls outside the agreed contractual terms, Hiboo automatically creates a gap. Each gap can then be reviewed, commented on, ignored, or marked as invoiced.

Detecting out-of-contract usage

Hiboo can identify several types of gaps:

  • Usage after the contract period has ended.

  • Usage on days not covered by the contract, such as weekends or excluded days.

  • Hours run beyond the daily cap defined in the contract.

For example, if a customer ends a rental on Thursday but the machine is not picked up until Monday, any usage on Friday can be detected as out-of-contract usage.

Detection rules

Each organization can refine detection using a daily tolerance threshold and a list of excluded equipment.

By default, the tolerance threshold is set to 1 hour. This means a gap is only generated when out-of-contract usage exceeds that threshold. This avoids creating gaps for very short usage, such as simply moving a machine.

Gaps are usually calculated the day after the usage is detected. If telematics data changes later, the gap may be recalculated automatically. However, changes to the contract do not recalculate gaps that have already been generated.

Only organization administrators can change these rules.

Valuing the gaps

Each gap is valued using the daily rate set on the equipment's contract line. The estimated amount to bill is calculated automatically when the gap is created, then can be adjusted manually by an administrator.

If no daily rate is available, the amount remains at zero until it is completed.

Tracking and processing gaps

All gaps are grouped in a dedicated screen where they can be filtered by period, equipment, customer, gap type or status.

Each gap has a status to track its progress: to process, ignored, invoiced or not invoiced. You can also add comments, attach documents and review the change history to keep all context in one place.

A summary helps you monitor key indicators: number of gaps, invoiced amount, billed percentage and breakdown by status.

Exports and reports

You can export the list of gaps. The export uses the filters currently applied on screen and is sent to you by email.

You can also subscribe to a periodic report, per workspace, to receive detected gaps directly in your inbox. Reports can be sent daily, weekly or monthly.

FAQ

Why aren't any gaps showing for my equipment?

Out of Contract Usage requires your equipment to report usage data and its contracts to be imported into Hiboo through the ERP integration. Also check that the equipment is not excluded and that the usage exceeds the defined tolerance threshold.

How is a gap's amount calculated?

It is estimated from the daily rate on the equipment's contract line. If no rate is set, the amount remains at zero until an administrator fills it in.

Who can change a gap's status or amount?

Only organization administrators can change the status and edit amounts. Other users can view gaps and add comments.

What defines out-of-contract usage?

Two levels of rules are taken into account: contract terms, such as covered days, hour caps or validity period, and your organization's settings, such as tolerance threshold and excluded equipment.

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