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Rental or Service Contract

Former Member
0 Kudos

Hi Experts,

I have my client whose business is renting the construction equipment but its not periodic billing.Also they provide service to the product if the machine breakdown and charge to customer.Its a simple scenario.

My question is shud i use Standard rental contract config or is ther any diff config available.

Thanks in Advance

Shri...

Accepted Solutions (1)

Accepted Solutions (1)

jignesh_mehta3
Active Contributor
0 Kudos

Hello,

There are two things here:

1. Standard Rental Contract (for Rent of the Equipment)

2. Sale of additional Service (quantity of which is not fixed at time of entering into Contract).

Now, for Rental Billings, you can create Monthly Invoice Directly with Reference to Contract. But for Sales of additional Service, you will need a Sales Orders & subsequent Billing.

Kindly explain your requirement in detail for further suggestion.

Thanks,

Jignesh Mehta

Former Member
0 Kudos

Hi Jignesh,

Thanks for your reply.Still i have not created business blueprint,just preparing myself by understanding the client requirement and trying to fit the standard process.As discussed with my team below is the config we will try to map with client requirement.

Assign a Serial number profile for the material in the Material master. By using IQ08 Tcode, List out the material + serial number and convert into an Equipment. Maintain the Maintenance data like Maintenance plant, Workcenter, Partners, Catalog profile required for the Equipment.

Create a Rental Contract (VA41, MV type) with service material in the line item with Start and End date of the Contract for the Equipment with pricing conditions (if required). Enable Periodic Billing in the Billing plan. System will determine the Billing date and list in the billing due list every month.

Whenever you service the Equipment, Create service order and plan and consume the labor and materials. Settle the Service cost to the Contract.

You will get the tracking of the services and its cost to the particular equipment.

Thanks

Shri..

Edited by: shrii on Feb 21, 2011 3:30 PM

jignesh_mehta3
Active Contributor
0 Kudos

The approach seems to be good.

Also this is similar to what I suggested. There are two documents here... Contract & Service Order & both needs to be linked...

Anyways, hope your questions are cleared...

Thanks,

Jignesh Mehta

Answers (0)