Defining Internal Rental

This topic describes the definitions needed for the internal rental process.

Defining the internal supplier

The internal supplier must be defined as supplier type 7-'Internal' in 'Supplier. Open' (CRS620).

Defining the purchase order type to be used for internal rental

The PO type for internal rental must have PO category 80 in 'Purchase Order Type. Open' (PPS095) and the parameter 795 must be set to 2 or 3. If the parameter is set to 2, a subline is created on the PO to be used for invoice matching of the invoices sent by the owning division. If the equipment is considered as Right of Use by the rental division, the invoice matching should be done using 'Financial Agreement. Open' (AGS100) instead. In this case the parameter 795 should be set to 3 and no subline is created. Setting 030 in (PPS095) cannot be set to 30 or 40 for an internal rental PO type.

Defining the item number to be used on the PO subline

If parameter 795 is set to 2 in (PPS095), see description in Defining the purchase order type to be used for internal rental, an item must be defined to be used when creating the PO subline. This is done in the 'X-hire cycl inv' field in 'Settings - Rental Agreements' (STS699).

Defining the internal customer number

The rental division, that is, the customer of the internal rental agreement, must be defined as customer in 'Customer. Open' (CRS610). We recommend you to configure it as customer type 0.

This customer number is set per supplier number and receiving warehouse in 'Supplier. Connect Our Customer Number' (CRS680). The receiving warehouse is defined as the warehouse of the purchase order header in 'Purchase Order. Open' (PPS200). The supplier can thereby assign the same customer number to several warehouses placing a purchase order against the supplier.

If the receiving warehouse is assigned the same customer number for all internal rental, and internal sales, if this process is also used, this customer number can be defined in 'Warehouse. Open' (MMS005).

Note: There can only be one customer number per purchase order.

If no customer number is defined in (CRS680) or (MMS005), the internal rental agreement cannot be created when the PO has been printed. Instead, an application message is displayed in 'Application Message. Open' (CRS420) stating that the internal rental could not be created, and for which PO number. An email is also sent to the user, if configured to do so in 'Email Address. Open' (CRS111). If the necessary configuration is missing, resulting in no creation of an internal rental agreement, this must be corrected.

Defining the internal rental agreement order type

The internal customer number must have a rental agreement order type defined on the M panel in (CRS610). If this information is missing, the internal rental agreement cannot be created. A message is then displayed in (CRS420) stating that the internal rental could not be created, and for which PO number.

Settings of order type for rental agreement

The rental agreement order type used for internal rental must have an RO type defined in the 'RO tp internal' field in 'Rental Agreement Order Type. Open' (STS020).

This order type is used for removing the stock from owning division, which is needed to perform goods receipt on rental division.

Because internal rental means moving the equipment from one facility to another and back again, it is important to have the 'Upd plan fac' setting activated on the internal rental order type. If this is not activated, WO requests are not transferred when moving the equipment to another facility.

If a maintenance agreement should be created for the internal rental agreement between the owning division and rental division, a template is set in the 'Agreement MAI' field in (STS020).

You can use the same rental agreement order type both for internal and external rental, but for follow up and search purposes it can be better to use a separate rental order type for internal rental.

Defining the facility, depot and supplying warehouse of the internal rental agreement

The financial owner of the internal rental agreement is defined through its facility. The depot determines the delivering warehouse.

Facility and supplying warehouse is set on the G panel in 'Supplier. Define Purchase & Financial' (CRS624). The depot is found using the configuration in 'Rental Depot. Open' (STS030) where the supplying warehouse from (CRS624) must exist as yard warehouse.

Recommendations

Use a rate type and invoicing interval that match each other on the internal rental agreement. If you do not, there is a risk that the calculated number of periods, that is, the quantity on the subline, may not match the number of invoices that are sent from the owning division to the rental division.
The item used for the PO subline is the same item used for the x-hire subline. If several invoicing intervals are used in these processes, we recommend that you set a generic U/M for this item in 'Item. Open' (MMS001), indicating 'Pieces' or 'Each' instead of a certain period.
If other units of measure, for example, week or month, should be used in the x-hire flow, these can be connected in 'Purchase Agreement. Open Lines' (PPS101).
If the internal rental is used for an item with lot control method 0 or if it is a non-FA equipment, the setting 200 in 'Dispatch Policy. Open' (MWS010) should not be activated. This to avoid a transaction in (CAS300). No internal accounting should be created for the internal PO at goods receipt, this applies both for FA and non-FA equipment.