Equipment Threshold Hours in SharpeSoft Estimator

The Equipment Threshold Hours window is used to set up a discount schedule for each piece of equipment you own, based on the number of hours the equipment is used per day.

For example, if you want to offer a discount for your owned equipment after eight hours of use per day, you would enter '8' in the Day length threshold field. If your owned equipment is used more than eight hours per day, then the discount would be applied to any hours over the threshold of '8' set here. Discounts are not applicable for rented equipment.

Where to Find the Equipment Threshold Hours window:

• Click on the Defaults tab on the main menu bar.

• From the drop-down menu, selection Company Configuration.

• Select Equipment Threshold Hours.

The system accepts only one threshold applicable to all owned equipment. However, the percentage of discount is applied according to each equipment group and is entered in the Equipment Groups window. For example, you could set the percentage for your dozer equipment group at 5% and your scraper equipment group could have 10%. These percentage discounts would apply only after the equipment had passed the threshold hours set in this window.

Where to Find the Equipment Groups window

• Click on the Defaults tab again on the main menu bar.

• From the drop-down menu, click on Equipment Defaults.

• Click on Equipment Groups.

• Inside the Equipment Groups window, double-click inside the Owned Discount column, or select Edit after highlighting an item.

Equipment must be marked as owned in the Tables menu > Equipment > Equipment Rates by Area window where you will double click on an equipment record for the discount to apply.

Where to find the Equipment Rates by Area window

• Click on the Tables tab from the main menu bar.

• Select Equipment.

• In the Equipment window, double-click on any equipment item to open the Equipment Rates by Area window.

• Adjust the item's ownership/rental status in the Owned column.

Explaining the Discount Process

The image below is part of the Equipment Rate by Area window for the item discussed in the video, labeled Test Equipment.

The Equipment Group which the Test Equipment item belongs to receives a 10% discount after a threshold of 8 hours. Let's first establish all of the other relevant costs for determining the discounted equipment rates for a normal, 8 hour shift.

To find the full base rate at the threshold, take the hourly threshold (8 hours) and multiply it by the equipment's hourly rate (50), resulting in a base rate of 400.

To find only the equipment rate discount, subtract the percentage discount from 1 (1-0.1=0.9). Then take this sum and multiply it by the equipment's hourly rate (50x0.9=45).

To find the base total of the daily discount, take the above sum and multiply it by the number of hours over the threshold. In our example, we are using a 10 hour day, so it will be two hours over the threshold (45x2=90).

For the total daily rate including the discount, simply add the above sum to the full base rate (400+90=490).

For the hourly rate including the discount, take the above sum and divide it by the day length in hours (490/10=49).

Finally, for the discounted hourly rate with fuel and burden costs, simply add the above sum with the appropriate rates (49+30+20+0=99).

Conclusion

Getting started with SharpeSoft is a breeze. Whether you are looking to create a new job or add one, SharpeSoft has got your back. We have the tools and expertise necessary to help you make it happen without breaking a sweat.

You can continue on to other helpful Fast Trax articles found in the Blog section. To learn more about this particular subject, consult your system Help manual, or just give us a call and we’ll be glad to walk you through it.