Rental Process

[Former Member]

Hi Gurus

I got one process with the client got lot of issue with it any help will be useful

My client is get a machine from vendor for rent say 10000k rent they pay for vendor each month ,

and they give tat machine to the customer for rent 15000k each month they pay to my client

and commission my client take and pay the vendor the rent

but how to bring the product in to my place when i receive from  vendor for rent

how to give that material to the customer for rent

as i got the material for rent i cant bring the material for stock it will be asset if it comes in to my stock

if the product is not in the stock i cant not give to customer

any idea will be useful

Thanks

[former_member182575]

You basically have the SD & MM answers but you need to discuss this with the Accountants as I believe based IAS you may to recognise this as operating lease (asset).

Regards

Waza

[former_member216388]

Hello Rani Raja,

                          We mapped the giving  equipment on rent scenario by using Consignment Fill up let me know if you require more details on the same. Currently I don't have an answer to your renting from Vendor query I will get back to you on that issue(let me think).

Regards

Madan Shetty

[former_member216388]

Hello Rani Raja,

                          For Renting the material  you can  create a PO with the document type as FO, monthly rental you could use periodic invoice plan, the invoicing and GR would be regular process. The Issue is linking this with the renting out again. I don't have the system right now could suggest you further when I get to sit in front of one in the morning. Tell then you could think on these lines

Regards

Madan Shetty

[former_member184065]

Dear,

My client is get a machine from vendor for rent say 10000k rent they pay for vendor each month ,

and they give tat machine to the customer for rent 15000k each month they pay to my client .

I think ,you can very well process above scenario by Service Contract with Document Type is WV and item category is WVN and create Billing directly with FV billing doc type .But ,you need create a some dummy material as for that Machine for showing records purpose in SAP and dump stock and do .

Thanks,

Nareb

[jignesh_mehta3]

Hello,

See there are two clear processes involved here:

1. Taking a Machine on Rent from Vendor

2. Giving the same Machine on Rent to Customer.

Now as far as, Giving the Machine on Rent to Customer is concerned, you can definitely run Periodic BIllign Process (Contract - Billing) where you can charge monthly rent to the Customer.

Regarding the first process, i.e. Taking the Machine on Rent from vendor, I think you should the question on MM Forum & there will be army of consultants ready to guide you.

Thanks,

Jignesh Mehta