RENTAL SALES ORDER

[Former Member]

Hi,

How is the background effect of cost of sales for rental items?

With what ratio the COS is charged, each time we use the material?

My goal is to keep track of inventory stock issued to client as rental item and cost charged each time we invoice the client for rental upon extend of rental period. and to keep rental stock maintain as rental items once it has been issued from inventory.

regards,

adnan

[former_member187610]

Hi Adan,

From my understanding you have a periodic billing, where your client is into the renting equipment/products so he requires the periodic billing. There are 2 options:

1)   You can create rental contract using order type MV using the T code- VA41

Where you might be using the delivery process to show the inventory movement from one storage location to customer location. So you need to copy the same rental order and then create the Sales order then delivery.

2)   You can create the sales order directly by attaching the billing plan to order type OR and item category.

I hope the above options might help you.

Regards,

Sharan

[former_member216765]

Hi

As per my understanding of your scenario, You are issueing the material to the customer and not invoicing for the material itself, where as the customer is only be paying the rent on the materials issued for consumption for a specific period.

I believe that there will be some sort of agreement or a contract with your co. and the customer, where period will be specified along with rent value that customer requires to pay.

I suggest that you should go for Rental Contract, the process could be Contract>Delivery>Proforma Invoice for issuing the Material for first time and there after  Contract>Billing as per the billing plan for the rents.

[former_member182378]

adnan,

My goal is to keep track of inventory stock issued to client as rental item and cost charged each time we invoice the client for rental upon extend of rental period. and to keep rental stock maintain as rental items once it has been issued from inventory.

Let us take a business example -

Your company has 100 Laptops. These laptops are given for rent.

How to know how many laptops are given on rent? and how many more are available, to be given on rent?

You can have delivery in the sales cycle.

When a client wants 10 laptops, the first time Order>Delivery>Billing happens.

Thereafter every month, to get the rent Order > Billing

In the first process (that includes delivery), the inventory stock shall decrease by 10; that means ATP = 90.

So, 90 laptops are available to be given for rent.

[ajitsingh6]

Hi,

Consignment sale process is best suited for your business requirement.

Do following process,

1. Consignment Fill Up(While giving Material to Customer)

2. Consignment Pick Up(While customer return after contract is over)

you will be able to see stock at customer location.

Regards,

Ajit K Singh

[suman_sardar2]

Hi Adnan,

As follow members already advised you to go for Consignment process though I am not able to understand the point "cost charged each time we invoice the client for rental "  .

Please clarify your points is it stock you are going to track then Consignment is best option.

Thanks,

Suman$

[Former Member]

Hi Adnan,

If you issue inventory stock as like rental Item that mean in sap you are not doing delivery and PGI. And then Stock position remain same and COGS will also not generate.

Regards

Arun

[piyush_gajera]

Hello,

What i understood from your explanation is that some material you are issuing to customer but liablility belongs to you only. If this is the case then you may check with consignment scenario.

Pl check accordingly.

Thank$$

PG