I have been asked many times on how to manage a rental in ByDesign. Here, I reveal my secret solution, which is simple and easy. Note that you will need some base knowledge in Products, Services, and Logistics. These are easily learned via the built-in help.
Note that I am posting this via an old/irrelevant SCN account while the SCN Team figures out how to get me into my normal account.
Step 1: Create a rental material
Create a new Material for your rental product. Make sure it is activated for all Relevant Processes. Make sure to maintain the product cost in Valuation
.
Step 2: Create a rental service
Create a new Service corresponding to your rental product. Make sure it is activated for all Relevant Processes. Do not maintain a service cost in Valuation.
Step 3: Create a Sales Order for your rental product
Assuming you have stocked up on this item (you may even consider creating a separate Rentals logistics area, but let’s keep it simple for now.
Click Submit > Release Order.
Step 4: Deliver the rental item
Run the Release Due Deliveries Run in Outbound Logistics
Control. In Outbound Logistics > Delivery Proposals, Post Goods Issue. Your
inventory for this item will be reduced by the amount in the Sales Order.
Step 5: Invoice the Customer for the first week
Step 6: Monitor Sales Order and Release Execution Each Week to Invoice the Customer
Each week, edit the sales order and complete execution on a week’s rental. Complete Execution for each week as each week occurs. Do this by selecting the line item and select Complete Execution.
Step 7: Assume the rental term is completed and each rental week has been invoiced.
In Inbound Logistics, create a new Parts Delivery Notificatiion
Step 8: In Inbound Logistics > Task Control, simply Confirm the put-away task.
Now your rental product is back in stock and you can rent it out again.
(AGAIN)
RENT AWAY, YOUNG SPIRITS!!
You can follow me on Twitter @JudsonOnDemand
Judson,
thank you for sharing your knowledge here. Great tutorial!
I have one question...I never saw this workaround before and I like it but I think about if financial bookings in background are correct? Have you any experience with a customer? You sell the product and some services, correct? And you invoice both, or only services? If you invoice both than you create a credit memo at the end?
Sorry some more questions.. 🙂
Cheers,
Andreas
Andreas...essentially each line item is a week's rental of the product. Line 1 is a Material so it can be taken out of inventory. Lines 2 - 4 are Services with no cost because they are simply rental fees for these weeks.
You would invoice each week. When the item is shipped (handed over, whatever), it comes out of inventory and an Invoice Request is created. Then on each subsequent week, you execute one SO item and invoice the customer. Basically they are paying a weekly rental fee until they return the material.
No credit memo at the end since each line represents one week's rental fee.
Judson, thank you for addition explanation!
Cheers,
Andreas
Clever, but I think you do really have an issue with your FIN postings if your rental material Outbound Delivery keeps "awaiting" to be invoiced for months, or even years.
It might also cause an issue with tax payments.
Just asked a FIN Colleague to validate my assumptions, will come back with more info in a day or two.
Cheers,
Marcos
I'm afraid you've missed the point. The goods issue is invoiced immediately, and all subsequent periods are invoiced as a service.
You can see that in my setup.
You're right, I missed the point, I'm sorry.
Hello,
for this usecase we have a SAP Business ByDesign addon. It is called "BIT Equipmentmanagment".
Regards,
Robert Focker
Bautzen IT
-> 01712400026<-
This scenario is for renting materials, not about managing equipment.