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Purchase of Material on rental basis

Former Member
0 Kudos

Dear All,

We have new scenario in our company

Supplier will give us material on daily rent basis & they will charge accordingly.

In this we want material maintain inventory BUT without valuation (as this material is not our property, & will be returnable after some period).

Requesting your comments.

BYD process experts also can call me.

Regards

Vishal Kambare.

+91 22 4171 4416

Accepted Solutions (1)

Accepted Solutions (1)

lokesh2
Advisor
Advisor
0 Kudos

Hi Vishal,

if you are getting the product as rent, and also not required for valuation, I assume you can go for cost & expense account if its acceptable to you.

Thanks

Lokesh Sharma

Former Member
0 Kudos

Hi Lokesh,

Thanks for your reply.

below are my requirements

  • supplier gives material on daily rental basis
  • we don't want to maintain valuation
  • but we want to maintain Material Inventory / Stock for such Materials
  • We do not hold ownership of such Material - hence we can not hold its value in our books
  • This needs to be returned to supplier (period is not defined)
  • We will give this to our customers on rental basis (on returnable basis)

Regards

Vishal.

Former Member
0 Kudos

Dear Vishal,

This is a very special situation where you purchase material from supplier however it is still with-his ownership - this is consignment scenario which is not supported in ByDesign current version.

You need to consider an add-on option for the same.

From there you can follow the normal rental service.

Rental service can be captured in SAP Business ByDesign, check the below SCN

http://scn.sap.com/community/business-bydesign/blog/2013/04/18/byd-consulting-tutorial-how-to-rent-a...


Regards

Leo

Former Member
0 Kudos

Hi Leo,

Thanks for reply.

We are not purchasing this from supplier.

here we will send them request of material & they will issue it as returnable basis.

this all is out of system.

In system we just wanted to maintain inventory / stock.

Regards

Vishal.

stefan_resag
Employee
Employee
0 Kudos

Hi Vishal,

why not just setting the inventory valuation to 0?

Best regards,

Stefan

Answers (1)

Answers (1)

0 Kudos

Hi Vishal,

if I understand your scenario: you somehow like to track what supplier inventory you have in your system and you rent (e.g. you would like to see a list of PC as overview but you do not want to enter valuation data, because it is not your inventory, but the supplier's).

Is there any need to use those products? Selling them - most likely not, because you don't want to maintain valuation data.

If you scenario is something like tracking of leased PC, company cars or similar, then there is no standard ByDesign entity which was designed for such scenario. Maybe a customer specific enhancement would solve the issue?

Best regards

Marlene

Former Member
0 Kudos

Hi Marlene,

Thanks for your quick reply.

Yes, You understood the correct scenario..

These Material is going to customer place again as rental... for which we will bill customer accordingly.

For e.g.

We took Car on rental from supplier.... he gave us for 100 days.

we will give this Car to our customer as rental & charge him for 80 days (as per customer use)

after 100 days over, we have to hand over this tool to supplier again OR we may extend its hold.

Regards

Vishal