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Rental Equipment Scenario in Remote Logistics Management

Rental Equipment Scenario in Remote Logistics Management (RLM):

There are many industries that takes Machines/Equipment on rent to execute their day to day operations. There are different reasons for taking the Machines/Equipment on rent like:

  • Machine/Equipment is too costly to be purchased
  • It is to be used for one time activity only
  • Intermittent use of Machine/Equipment
  • To avoid cost of storage, maintenance, depreciation & disposal

I will explain in below steps how we can execute the Rental Equipment Process with MM-RLM (Remote Logistics Management) integration.

  1. Create purchase order with service line and appropriate account assignment.

               Rental_1.png

  1. Create service item, with either a rental service master or service group.
    • Specify the rental quantity (number of days), unit of measure (time-based, usually days), price, over delivery tolerance.

               Rental_2.png

  1. Check the “Rental” check box on the service item.
    • Enter mobilization material (rental item material master), quantity, unit (EA), package and Mobilization status.

               Rental_3.png

  1. Save the purchase order. On saving the PO, SAP will create material lines on the PO for the rental material masters.

                Rental_4.png

The automatically created line item for the Mobilization equipment will have the “Free item” check box selected in it.

     Rental_4_2.png

  1. Item delivered
    • Enter physical receipt of equipment via MIGO – 101 PO receipt.
    • Physical location of equipment can be tracked whilst on site, if desired, by moving from storage location to storage location.
  2. Service Entry for the Rental period
    • Create Service Entry sheet for the rental period of the equipment.

               Rental_6.PNG

     7. Return to vendor

    • Enter vendor return document via MIGO – 122, referencing PO line item.
    • Set document date to the date when equipment was returned to the vendor or vendor was notified (can vary depending on rental contract terms).

               Rental_7.png

  1. Post invoice
    • 3-way match between PO, invoice and service receipt, up to the date of last service entry run.

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      27 Comments
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      Author's profile photo Jürgen L
      Jürgen L

      you have to reload the pictures, copying it over from a blog is unfortunately technically not possible

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Thanks for your comment. I have reloaded the pictures

      Author's profile photo Dibyendu Patra
      Dibyendu Patra

      I have worked with Service Entry Sheet.

      But I didn't know this process.

      Now I can give the presentation to my boss as my company take machines for rent for our production.

      Thanks for sharing the document.

      Regards

      Dev

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Hi Dev,

      Just to add to above document, i think you need to have RLM activated to use the above Rental functionality.

      Thanks for your comments.

      Regards,

      Akash

      Author's profile photo Joao Sousa
      Joao Sousa

      Thanks for sharing

      Author's profile photo Mahesh Naik
      Mahesh Naik

      As Techanically not possible in ECC, because is it only working for IS oil sector?

      If we require this in Manufacturing ind , how to deal.

      Author's profile photo Former Member
      Former Member

      Hi Mahesh,

      Since SAP ERP 6 EHP7 it is possible to activate and operate SAP Remote Logistics Management without SAP IS-OIL.

      Author's profile photo manu m
      manu m

      The 3 rd screen is not available in std ECC.

      Can you please recheck . Also give more information on payment and its settlement with accounting entries

      Dëv Päträ,

      Is it working for you ?

      regards

      manu

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Hi manu m

      To achieve this, you need to have RLM activated beforehand. RLM will allow you to have the "Rental" Check box and "Mobilization Material" fields activated thereby you can have Machines/Equipment being purchased as Rental.

      Thanks,

      Akash

      Author's profile photo manu m
      manu m

      Hi akash mhowwala,

      Ok . Thanks

      Can you brief on the accounting entries with 101 and Service entry sheet with values .

      i cant activate the RLM in my system hence asking your help.

      regards

      manu

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Hi manu m

      There is no accounting entry with 101 since the Material is having "Free Item" check box selected in the PO automatically

      SES screenshot is added in point 6.

      Thanks,

      Akash

      Author's profile photo Kavita S.
      Kavita S.

      Hello Akash,

      Thank you for the document.

      Since the "mobilization" field work only if RLM is activated can you please tag this document in in the SAP for Oil & Gas.

      Thanks,

      Kavita

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Hi Kavita,

      Tag is added. Thanks for your comment.

      Akash

      Author's profile photo Kaushal Sharma
      Kaushal Sharma

      I have activated business fuction in Ides, though I am not able to see node relevant to RLM and also not able to see Rent field in purchase order. Please advice.

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Hi Kaushal,

      Can you please share the SPRO node where you activated RLM.

      Ideally once you have activated RLM you should be able to see the RLM related fields in transactions.

      Thanks,

      Akash

      Author's profile photo Former Member
      Former Member

      Hi Kaushal,

      You need to Define Relevant Service Categories in RLM, this will enable you to use the Rentals functionality.

      RLM_2.gif

      RLM.gif

      Richard

      Author's profile photo Former Member
      Former Member

      Hi Akash,

      Is there any possible tweaks we may choose instead of activating RLM?

      Thanks and Regards,

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Hi Harvey,

      I don't think it is possible to achieve this in standard SAP without activating RLM.

      It can be done by creating some custom fields and developing a program to perform the same function as of Standard RLM programs.

      Thanks,

      Akash

      Author's profile photo Former Member
      Former Member

      Thank you Akash for prompt feedback.

      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal

      Good implementation , thanks for sharing.

      M.Ozgur Unal

      Author's profile photo Former Member
      Former Member

      Hi Akash,

      For your mobilsation material have you used material type UNBW - Nonvaluated materials?

      Thanks

      Richard

      Author's profile photo Former Member
      Former Member

      Hi Akash,

      Thanks for sharing this document and it is very useful.

      Could you please provide the steps to activate the RLM functionality.

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Hello B S,

      RLM is a part of IS Oil solution. Hence you can activate the RLM component in SPRO in IS Oil section.

      Presently i am not working on a RLM Project hence cannot send you a screenshot.

      Thanks,

      Akash

      Author's profile photo Former Member
      Former Member

      Hello Akash,

      Thank you for your response and I am able to activate it.

      Author's profile photo Jagdeep Singh Choudhary
      Jagdeep Singh Choudhary

      Hi Akash

      This is nice document and good effort. With EHP7 this node is available in Logistics execution. Also RLM seems to be have addition license cost from SAP. I can also see you have specify the plant and storage locations where RLM will be active.  Storage locations are optional for RLM activation.

      Also looking at configration , creating plant customers seems requirement to use RLM process.

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Hi Jagdeep,

      Thanks for comments.

      I didnt get a chance to look into EHP7, however once I get a chance to work with EHP7 that will be the first thing I'll check.

      Regarding Storage Locations, there is a node where we maintain Plant as Base or Remote location.

      Also we mention that Storage Locations of this specific plant is relevant or not by selecting the check box.

      Drilling further into this node allows to maintain "Ship-to".

      For details, you can refer to below configuration path:

      SPRO > Industry Solution Oil & Gas (Remote Logistics Management) > Global Settings >Define Relevant Plants and Storage Locations

      Thanks,

      Akash Mhowwala

      Author's profile photo Rustam Aizatulin
      Rustam Aizatulin

      Hi,

      Don't see the possibility to create Crossdocking delivery to offshore installation after GR.. It looks that RLM should react somehow here, but it doesn't. I don't have specified Storage Location in the PO. Do you have any idea?