Cold Storage on rental

[Former Member]

Hi,

WE have a requirement from the client, wherein the client gives the cold storage space on rent to the customer. Customer store there material in the cold storage and they are charged on basis of tones of material.

Client charge there customers for each week.

Customers also issue the material during this period as well.

For eg

1) Cusomer 'X' stores 100 KG Chicken from starting of 1 week

2) So he is charged for 100 KG for that week

3) During the same week he issues 10 Kg of chicken, so balance is 90 KG in the cold storage

4) So for the next week the customer should only be charged for 90 KG Chicken

please note that the business rents out the cold storage space to other customers and bill them weekly (fixed).

Was planning to have a rental contract MV with weekly periodic billing plan but the issue is the base for billing is the weight of material stored in cold storage which keeps on changing week to week as the customer also issues the material during this period.

Kindly advise how the same can be mapped through SD.

[Former Member · Accepted solution]

For that week it will be charged for 100 Kg for the next week it will be charged for 90 KG

Eg

-Week starts on 1st feb (Monday) ending 7th Feb (Sat)

-Customer keeps the material (100 kg) in C. Storage on 3rd feb (Wed)

-Issues 10 kg on 5th (Friday)

-He will be charged for the whole week ie from 1-7 Feb for 100 kg (*)

-Now the stock is 90 kg on 8th Feb (next monday)

-For this week (8-14 th Feb) he will be charged for 90 kg irrespective of how much he will

be issuing in that respective week. (*)

-Stock needs to be updated for rent charges on weekly basis.

Was planning to have

-Procure customer material in our stock (Cold storage location) as a non valuated material

-Rental contract (MV) with periodic billing

-Whenever customer want to issue material, create sales order with reference to rental

Contract and PGI (for material qty issued) will reduce stock from our inventory and create

Proforma invoice.

-For weekly rental create a billing with reference to billing plan assigned in Rental

agreement.

Problem

The billing plan assigned in rental Contract wont consider the issued material qty while

billing for a respective week (in above eg marked as (*))

Hope the scenario is clear

Please advise.

Regards

Rahul

[Former Member · Accepted solution]

Hi,

Please advice.

Regards

Rahul

[former_member182378 · Accepted solution]

Rahul,

For me, the company is providing a service (giving space on rent).

A sales cycle with order > billing (no delivery - as it is service).

Further, as it is service -

Do not have inventory

Do not have availability check, or TOR activated in the sales order.

User shall create an order by inputting the qty manually. With pricing condition record the rent per 1 qty shall be calculated automatically in the sales order. Then billing can take place.

Additional comment - This way is simple and straight forward but there would not be any visibility of the space available to rent. But this is not needed as you are using the sales cycle only when charging the customer and not during inward movement of goods!

[Former Member · Accepted solution]

Thanks Gentlemen for your response

However please note that we are charging the rent weekly irrespective of how much the customer is issuing through out the week. and also we need to keep an inventory check.

Sales order is just created in order to deliver the material which the customer wants to issue from cold storage and rent wont be charged on the delivered material but on the opening stock of the material at the beginning of the week.

Hope its not getting more confusing.

Regards

Rahul.

[former_member182378]

Rahul,

If starting of the week (say Monday), there was 100KG of a customer. On Wednesday 10KG was issued, the for this week how many KG would be charged?