Managing Leasing Logistics

This document describes the logistics of a leasing line.

Leasing lines (line type L in 'Rental Agreement. Open Lines' (STS201)) are managed from 'Rental Logistics Toolbox. Open' (STS140). The delivery of a leasing line is done using standard procedures for delivering equipment using (STS140).

When the leasing period is over for the end customer, the leasing line should be terminated. Depending on the next step for the equipment, different actions needs to be taken in M3 Business Engine. Which action depends on if the equipment is owned by the rental company (the M3 Business Engine company) or if it is owned by a funder.

Prerequisites for managing the return of a leased equipment

Terminating a leasing agreement line

There are several scenarios that can be valid when terminating a leasing agreement line.

Equipment owned by rental company in M3 BE

When the equipment is owned by the rental company, it should be in 'Fixed Asset. Open' (FAS001) as a fixed asset (FA) and not connected to any active financial agreement in 'Financial Agreement. Open' (AGS100).

Scenario 1

Customer buys the equipment.

For this scenario you use related option 20='Sales of indiv' in (STS201) on the leasing agreement line to do a sale of individual. This creates a stock transaction of type '71'. The leasing line is terminated and the return DO is removed from the leasing line.

Scenario 2

Customer returns equipment to rental company and rental company puts it in their rental fleet.

For this scenario the equipment is returned through the DO connected to the leasing line, using the standard return process in (STS140). FA should be kept as is.

Scenario 3

Customer returns equipment to the rental company and the rental company puts it in their used fleet to be sold.

For this scenario the equipment is returned through the DO connected to the leasing line, using the standard return process in (STS140). FA should be kept as is.

Equipment is then moved from rental fleet to used fleet using the standard fleet transfer process.

Equipment owned by funder

When the equipment is owned by a funder, it should be on a financial agreement in 'Financial Agreement. Open' (AGS100) and placed in (FAS001) as a right-of-use asset.

Scenario 4

Customer buys the equipment from funder.

For this scenario the equipment is returned through the DO connected to the leasing line, using the standard return process in (STS140). It is not physically returned.

Terminate the financial agreement line for this equipment using (AGS100). This disposes the right-of-use fixed asset.

The actual selling from funder to end customer is done by the funder.

Scenario 5

Customer returns equipment to the rental company. The rental company buys it from the funder and puts it in their rental fleet.

For this scenario the equipment is returned through the DO connected to the leasing line, using the standard return process in (STS140).

Terminate the financial agreement line for this equipment using (AGS100). This disposes the right-of-use asset.

Create and process a PO using 'Purchase Order. Open' (PPS200) and 'Purchase Order. Receive Goods' (PPS300) to buy the equipment from funder. Use a PO type set up for creating fixed assets. This creates a normal fixed asset and puts the equipment back to stock.

Scenario 6

Customer returns equipment to the rental company. The rental company buys it from the funder and puts it in their used fleet to be sold.

For this scenario you do the same as in scenario 5 but you do not use a PO type set up to create fixed assets, setting 300-'Fixed asset type' in 'Purchase Order Type. Open' (PPS095), if the rental company wants to have it as accounted inventory.

Scenario 7

Customer returns equipment to the rental company. The rental company returns it to the funder.

For this scenario the equipment is returned through the DO connected to the leasing line, using the standard return process in (STS140).

Terminate the financial agreement line for this equipment using (AGS100). This disposes the right-of-use asset.

Use transportation item on CO through 'Customer Order. Open' (OIS100), if transportation documents are needed for the transport back to funder.

Scenario 8

Customer returns equipment directly to the funder.

For this scenario you do the same as in scenario 7 except that no CO for transportation is needed.

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