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.
- Create purchase order with service line and appropriate account assignment.
- 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.
- Check the “Rental” check box on the service item.
- Enter mobilization material (rental item material master), quantity, unit (EA), package and Mobilization status.
- Save the purchase order. On saving the PO, SAP will create material lines on the PO for the rental material masters.
The automatically created line item for the Mobilization equipment will have the “Free item” check box selected in it.
- 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.
- Service Entry for the Rental period
- Create Service Entry sheet for the rental period of the equipment.
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).
- Post invoice
- 3-way match between PO, invoice and service receipt, up to the date of last service entry run.