Monitoring Rental Equipment

[Former Member]

Hello Experts,

Need your valuable inputs on following Scenario.

We are working with Construction Equipment Leasing company.

Scenario :-

Clients main business is equipment leasing. They procure equipment (e.g Generator, JCB, Crane etc.) & then rent it out to their Customers for few months / years.

Query

If we procure these items as Asset item, then @ GR , we have to assigned it as an Asset item. So we cant see the inventory of this item in MMBE. When this Company want to rent this item, how can i issue this item for delivery?? (We are not selling this item, it is Company Asset, after some time, Their Customer will return this item)

How to monitor the stock of this item at WH & at different Customer premises.

How to manage this scenario, could you please provide some suggestion.

-Julie

[Former Member · Accepted solution]

Option 1 --> Activate batch management for the asset items . You can assign customer name as batch number and also enter various parameters in batch characterstics. Using this option you will be able to monitor each batch by customer name in Stock overview and if required do batch to batch transfer etc..and still own the inventory

Option 2 - Create each customer as Vendor and then do special stock transter to Vendor's location. Using this option, you will be able to track your assets items in stock overview and still own the inventory

Hope this will be useful.

[Former Member]

Let me break this down in two scenarios:

1. If we procure these items as Asset item, then @ GR , we have to assigned it as an Asset item. So we cant see the inventory of this item in MMBE

For this, you need to use a non-valuated material (such as UNBW) so that the inventory can be receipted (you will see inventory in stock overview) and tracked in the plant/storage location/warehouse.

2. When this Company want to rent this item, how can i issue this item for delivery??

You may have to use the combination of SD 'rental contracts' and customer consignment stock. Essentially, SD rental contracts to invoice the rent and customer consignment to track the inventory (using only consignment fill-up and pick-up to track inventory at customer). Typically, 'rental contracts' suffice the process of leasing equipment however, since you wanted to track inventory therefore customer consignment may be a possiblity.

I'd suggest you to consult an SD person for the second scenario.

[Former Member]

Thanks guys for your prompt reply.