Wednesday, September 12, 2018

Accounting for Item/Equipment for Rent

To correctly process and monitor items or equipment for rent, consider that the ownership is not transferred. As a workaround, perform the following:

1.    Create a Serialized Inventory Item.

o    Navigate to Lists > Accounting > Items > New

o    Click Serialized Inventory Item

o    Assign Income Account to Rent Income

o    Select a Location where the same items/equipment are received when bought

2.    Create a Location where Items/Equipment may be temporarily placed while it is out for rent.

o    Navigate to Setup > Company > Locations > New

o    Name of Location : Rented Location

3.    Transfer purchased Item/Equipment from original receiving location to Rented Location.

o    Navigate to Transactions > Inventory > Transfer Inventory

o    Transfer the Items/Equipment from Receiving Location to Rented Location

o    Assign the serial number

4.    Record the Rent Transaction.

o    Navigate to Transactions > Sales > Enter Sales Order

o    Select Rented Location on Location field

o    On Items column, select the serialized Item/Equipment

o    Enter the rate and amount of the rented Item/Equipment with the serial number

  This sales order must not be completely fulfilled (Shipped status) to retain company's ownership. However users may fulfill the order until Picked/Packed status only.

o    Click Next Bill, edit the rate and enter the monthly rental charge.

5.    Users may opt to use a Memorized Transaction or a Billing Schedule to bill.

6.    Users must also depreciate the same Item/Equipment, as necessary.

7.    Upon customer's return of the Item/Equipment, edit the Sales Order and mark the Close box.

To return the item from Rented Location to the original receiving location, navigate to Transactions > Inventory > Transfer Inventory.

To be able to utilize the same serial number after being closed, refer to SuiteAnswer 49684: Location Available and Serial Quantity Available mismatch due to Sales Orders closed with Item Fulfillment set as Picked or Packed.

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