Intercompany trade in Rental
The Intercompany trade in Rental functionality allows you to transfer rental products or equipment between different entities, in the same company or between different companies.
For example, to fulfill a rental order from customer C, the rental office S rents rental products or equipment from the rental owner R using an Intercompany Trade Agreement. The rental owner R rents the required products or equipment to rental office S and issues an invoice for the rental charges.
The equipment or rental product is transferred from the rental owner to a rental office for a specified period, based on the Intercompany Trade Agreement. However, the ownership of the rental product or equipment remains within the same company. The rental office uses the rental product or equipment and incurs a cost that is settled through intercompany trade.
- Define the intercompany trade relationship between the rental owner and rental office in the Intercompany Trade Relationship (tcitr2600m000) session.
- Define an intercompany trade agreement with the Scenario set to Rental in the Intercompany Trade Relationship - Agreements (tcitr2105m000) session.
- Define the transfer pricing rules for the Intercompany Trade Agreement in the Intercompany Trade Agreement - Transfer Pricing Rules (tcitr1605m000) session.
Note: The Price Origin can be set to Commercial Price or Price Origin only for the Rental scenario.
- Define the Rental Operating Cost Rate and Rental Intercompany Rate for a rental product or equipment in the Rental Operation Costs Rates (tsmdm0120m000) session, to calculate the rental charges that required to paid by the rental office to the rental owner.