Exchange Balances

Highlights

Some quick info on Exchange:

• Exchange types can have negative balances
• For exchange types, the list of barcodes is not related to the asset balance.
• For exchange types, the asset balance is just total ships minus the total returns over time.
  • You can return a stolen exchange asset and still get credit for returning it.

About

"Exchange" asset types are small cylinders that are cheaper and are typically owned by the end customer (holder). A holder must normally "exchange" one of their tanks for one of the gas distributor. If the holder does not have any, he must buy one. A common example is an Acetylene MC size tank. It is only maybe a foot tall and worth $35. Distributors typically sell these rather than rent them. Most of our customers do not barcode these kinds of assets, but RBO does. Some customers do barcode medical exchange tanks, but not the industrial exchange tanks.

Rental was built before the issue of exchange types was introduced. Many clients would prefer to never rent these tanks and instead make the customer buy them. On further investigation though (the devil is in the details) there are cases where these tanks are rented. Even without rent, it is important to at least keep track of a running tally of which party owes the other party cylinders. For instance, if over several years a customer has been delivered 150 tanks and has returned 155 tanks, then the distributor owes the customer 5 tanks. If the distributor loses the business, they must give the customer 5 of these tanks.

Conceptually, for exchange type tanks, we need to have enough data to be able to calculate a running tally of delivers and returns over a time period without regard to exceptions or accounting adjustments. If an individual returns three exchange type tanks but doesn't pick up new ones, the vendor owes the individual three tanks. This means that the balance for the asset type can go negative, and TrackAbout should not "hold the line at zero", as it does for non-exchange types. It is for this reason that TrackAbout suppresses normal Asset Transfer Exception (ATE) processing during movement of the asset. If it did not suppress ATE processing, the line would be held at zero and the customer would not get credit for all returns.

Normally, we calculate a customer's balance by the following formula:

For each distinct Asset Type:
 Count of unique (tagged) assets + DNS - RNS = Balance

For exchange types, this balance calculation will, over time, differ or drift away from the running Exchange Type rental balance. This is OK.

As mentioned, negative balances for exchange types are allowed. A negative balance just means that the distributor owes the holder some tanks.

If a distributor delivers a tank to holder A and then holder B returns it, this is ok. Holder A still owes the distributor a tank back. Also, the distributor now owes holder B a tank.

We support both unique and NS assets for exchange asset types.

For exchange types, end customers don't care if they get their unique, owned asset back. They just want to get any asset back of the same Asset Type. So though these assets are tracked uniquely with lot numbers and other properties, distributors don't care about tracking them uniquely on customer balances.

If a customer is delivered more exchange tanks than they have returned, then they owe the distributor rent. In the opposite case the balance goes negative. This negative balance indicates that the distributor owes the customer X number of tanks of this type. This negative has no affect on rent. It does not cause a credit. It is just used to indicate that the distributor owes this customer tanks.

Why even bother tracking them then? Why not just track using Not-Scanned Assets (DNS/RNS)?

• Lot # Control – there is value in this. You can't have lot numbers on Not-Scanned assets.
• Internal Quantity Control – we don't support NS at branch locations, only at Holders, so these assets must be tracked uniquely to maintain internal location balances.
• Internal Tracking – sometimes users want to find the exact tank returned from a given customer. Need to track them uniquely to find these tanks
• Consistent process – It is a simpler process to train and enforce when users must barcode and track all cylinders
• Some DNS/RNS logic prevents negative balances, so it's not ideal for exchange types.