Summary: When a shed customer chooses to rent a shed by choosing the “RTO” purchase method in the order form typically we are talking about two transactions that need to occur. One for initial payment from the customer to the RTO company and another for purchase of the shed, where the RTO company purchases the shed from the manufacturer (Mfr.)
How to
RTO Payments Routed?
#1 Initial Payment
The initial payment that the customer must pay is usually 1 or 2 months’ rent and maybe a security deposit and/or LDW.
- Sales Tax is expected to be collected on this payment. The Shed App displays the tax rate that is applied to the payment.
- This payment is usually routed directly to the RTO company in The Shed App
- If the Customer pays via Credit Card: the payment goes directly to the RTO company Stripe account
- If the Customer pays via Cash or Check: this can be collected by the Mfr. (Manufacturer) and then the Mfr. can enter their own Credit Card to complete the transaction to the RTO company. The Mfr. is expected to keep the cash and make these checks payable to themselves.
Note: If the Customer pays Cash or Check and the Mfr. wants to collect the Cash or Check on behalf of the RTO company: the “Other” payment method should be selected. The process of getting the Cash or Check to the RTO company is handled outside of The Shed App
#2 The RTO company purchases the shed from the Mfr.
- There is an invoice created in TSA (Accounting > Invoices) after the order is Processed
- The RTO company is the payer of the invoice and the Mfr. is the payee
- The amount of the invoice is expected to be the price of the shed without sales tax applied