Create and Manage Leasing Agreement Using EQM Without Funder

This document describes how to create and manage a leasing agreement using the leasing process in Equipment Quotation Management (EQM). This routine should be used when the equipment should not be funded by an external funder, that is, it is owned by the rental company.

We recommend that you start the leasing process in EQM, but a leasing line can also be specified manually using Rental Counter through 'Rental Agreement. Create' (STS085) or 'Rental Agreement. Open' (STS100).

Outcome

An EQM quote is created and completed in status '80'. The EQM quote triggers these actions:

The equipment is delivered to the customer using the leasing line.

Before you start

These settings should be verified before you start:

Create leasing lines through EQM for sales warehouse

Follow these steps if the equipment is placed on, or is sourced to, the sales warehouse and is not to be funded by external funder.

  1. Open EQM to create the quote according to the agreement with the customer.
  2. In EQM, select the quote to be leased by your customer. Click 'Details' to display EQM Details.
  3. Select the line to be leased. Use related option 16='Add Financing' and select a suitable financing option, not including funder in the setup in 'Quotation. Add Financing' (QUS116). It is important that the financing type is 3-'Leasing'. If needed, new financing options can be added using the plus icon.
  4. From the EQM header or EQM details, click 'Create order' to trigger the creation of leasing lines and a CO for internal movement.

    The leasing line is created on a temporary rental agreement according to the settings in (QUS116).

    The CO for internal movement is created with zero sales price, if equipment needs to be moved. This depends on rental depot in 'Quotation Type. Open' (QUS020). If this is not the same as where equipment is placed (sales warehouse), a CO is created to move the equipment. The receipt at the rental warehouse is done with transaction ID '90'.

    If equipment is configured on the quote, a work order (WO) is created that is connected to the CO to make the equipment ready according to the configuration.

    The orders related to the quote can be found using the fulfillment tab in EQM.

  5. If a work order exists it is reported using standard procedures.
  6. Report the customer order using standard procedures, for movement to correct warehouse.

    If a serial number was set at quote creation, but is no longer correct, edit this when reporting the CO. This updates the connected leasing line.

  7. If no fixed asset already exists, one is created automatically with status '5' when the CO for internal movement is reported. Run 'Internal Account Entry. Create' (CAS950) to activate the fixed asset.
  8. Report delivery of the equipment to the customer through the rental agreement or leasing line, using standard procedures in 'Rental Logistics Toolbox. Open' (STS140) or Rental Counter.
  9. During the lifetime of the leasing agreement, the customer is invoiced through the rental agreement, using standard procedures in 'Rental Invoice Proposal. Create' (STS800) and 'Rental Invoice Proposal. Update' (STS810).

Create leasing through EQM for rental warehouse

Follow these steps if the equipment is placed on a rental warehouse and is not to be funded by an external funder.

  1. Ensure that there are no active financial agreements in 'Financial Agreement. Open' (AGS100) or 'Financial Agreement. Open Lines' (AGS101) for this equipment.

    If there is an active financial agreement for this equipment and it is classified as a right-of-use asset, use the standard procedure to buy back equipment from a funder since this equipment should now be owned by the rental company. See Managing Leasing Logistics.

  2. Open EQM to create the quote according to the agreement with the customer.
  3. In EQM, select the quote to be leased by the customer. Click 'Details' to display EQM Details.
  4. Select the line to be leased. Use related option 16='Add Financing' and select a suitable financing option, not including funder in the set up in (QUS116). It is important that the financing type is 3-'Leasing'. If needed, new financing options can be added using the plus icon.
  5. From the EQM header or EQM details, click 'Create order' to trigger the creation of leasing. The leasing line is created on a temporary rental agreement according to the settings in (QUS116).

    The rental agreement related to the quote can be found using the fulfillment tab in EQM.

  6. Report delivery to the customer through the rental agreement or leasing line, using standard procedures in (STS140) or Rental Counter.
  7. During the lifetime of the leasing agreement, the customer is invoiced through the rental agreement, using standard procedures in (STS800) and (STS810).
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