Replacement of Equipment

[Former Member]

Hello Experts,

I have simple scenario - Company rents out the equipment and use the periodic billing process.My question is what if the machine breakdowns and send back to company location and company will replace the new machine.since the billing is creating for previous equipment,i want the scenario to show the replacement equipment with same calculation.

I feel the user will create the return order and then create another order..for replacement.

How should i handle this situation if the machine is replaced interms of price .

In brief...

There are scenarios that on-hire equipment break down. Company will replace another machine to customer when on-site repair is not applicable. The original machine will be brought back to workshop for repair.

The sum of the rental charge for the two machines (old and the replaced) shall be equal to the rental charges as if there is no machine replacement taken place.

If there is any replacement of macines, all subsequent invoices should be able to show the last machine to which this replacement is made.

Thanks

Shri..

Edited by: shrii on Jun 29, 2011 2:43 PM

[jignesh_mehta3 · Accepted solution]

Hello Shri,

There are two scenarios here:

1. Return of Original Equipment (material)

2. Issue of new (replacement) Equipment.

Now, the Original Equipment which is returned need to be repaired or scrap as the case may be. The customer would have used it for couple of months & paid the rent for the same via periodic billing.

Now you requirement is the when you issue the Replacement Equipment, the system should automatically link this to Original Equipment's Periodic Billing & only change for the balance months.

This would ideally not be possible because both the Equipments are seperate Materials codes & we cannot link them. For reference purpose you can create the Sales Order for the issue of Replacement with reference to Return Order for Original Equipment.

But When you create the Sales Order for Replacement Material the Periodic Billing start date will be today's date & you will have to manually enter the Last date of Periodic Billing as you did in Original Sales Order. Thus system will Invoice the customer only for balance amount.

But the requirement of automatic linking of two equipment cannot be fulfilled...

Hope ths helps,

Thanks,

Jignesh Mehta

[former_member183879]

Hi Shrii,

This is indeed a good scenario to discuss about.

Ideally there should be a return order and return delivery to receive the material in the receiving storage location. On receiving the material, the material should be repaired if needed. If it cannot be repaired, it has to be dumped and then the cost should be accrued by scrapping this equipment. Accordingly the credit memo can be created and provided to the customer.

However on the business perspective, a new order will be created for the customer, a new equipment is delivered to the customer of course with a different eqpmt number and then the customer is invoiced.

In summary, customer will pay for the differential amount.