Invoicing Rental Agreement

Outcome

• Service orders for invoicing are created and are ready to be invoiced.
• Rental agreements are printed and invoiced before being sent to the customer.
• The general ledger is updated automatically or manually, depending on the settings in 'Settings – Service Order Invoicing' (CRS790).

Rental agreements can be invoiced periodically on a selected date. A final invoice is created when the equipment has been returned or when the rental agreement has been terminated.

After the rental agreement has been invoiced:

• The updated sales statistics can be analyzed in the sales statistics and performance programs, and component group SST in M3 Sales Management.
• The updated post-calculation enables you to analyze the revenues and costs per rental item for an agreement customer.
• The invoice inquiry can be used to search for invoices and create credits in 'Rental Invoice. Display/Credit' (STS350).
• It can be used to update the individual item history of rental items.

These tables are affected when you invoice a rental agreement:

• Service Order Head (SSHEAD)
• Agreement Line Rental (STAGLI)
• Rental Line Detail (STLIDE)
• Agreement Proposal Head (STAGPH)
• Agreement Proposal Line (STAGPL)
• Agreement Head (STAGHE)

Before you start

A valid agreement with records ready for invoicing must exist in 'Rental Agreement. Open' (STS100).

The service charge is added to the rental invoice, if a service charge is connected to the payer and if this service charge has a limit higher than the invoiced amount.

The service charge may be relevant for a customer order but not for rental agreements. In that case, the service charge can be excluded from rental invoicing using the setting 'Service charge' in 'Settings - Rental Agreements' (STS699).

Follow these steps

1. Create invoice proposal

   An invoice proposal is created when the rental agreement is to be invoiced. You can invoice agreement lines that are not already invoiced, up to the next invoice date. You can also limit the selection to, for example, certain agreements, payers or individual item numbers.

   Note: Separate invoice proposals are generated if any value - payer, payer address number, customer site, or customer site address number - differs between agreement lines of the same agreement.

   If the 'Inv at Check-in' parameter in 'Rental Agreement Order Type. Open' (STS020) is set to 1-'Yes', an invoice proposal is created automatically during check-in. The invoiced period is up until the termination date of the agreement (check-in date), if no prior termination date has been specified.

   Create an invoice proposal in 'Rental Invoice Proposal. Create' (STS800).

2. Approve invoice proposal

   When the invoice proposal is created, agreements can be examined before confirmation. If any agreement line needs to be adjusted or updated, the new proposal can be generated after the changes are made or updated.

   Note: The original proposal must be deleted before any changes can be made to the rental agreement.

   When an invoice proposal is approved, a service order for invoicing is created and displayed in 'Rental Invoice Proposal. Update' (STS810). The invoice can be generated after the SO has been created.

   Note: When the Vertex solution for US Sales and Tax Calculation is integrated in M3 BE.

   When the SO (service order) is invoiced, the tax is calculated through Vertex. The Vertex solution is involved only where US Sales Tax is relevant for the division – when the tax method field in 'Company. Connect Division' (MNS100/G) is set to 3.

   The tax code is retrieved according to the following hierarchy:

   • For sales lines (line type 1, 2, 6), the tax code is retrieved from 'Item. Open' (MMS001).
   • For rental lines (line type 5, 7, 8), the tax code is retrieved from 'Individual Item. Open' (SOS419).

     This tax code can also be changed manually per line.

3. Print invoice

   Print the invoices in 'SO Invoice. Print' (SOS180). After printing the invoice, information such as invoicing interval, next invoice date, invoice to date and the customer to be invoiced is updated.

4. Updated sales statistics or invoice history

   When the invoice is printed, the sales statistics, individual item history, post-calculation, and general ledger are updated automatically.

   Before the invoice proposals are deleted in the invoicing process, they are copied to the new invoice history files, with the same information as the invoice proposal files. An additional file for the invoice is also created containing complete information, such as invoice number, invoice date, total invoice amount including VAT, total invoice amount excluding VAT, etc.

   The invoice inquiry program, 'Rental Invoice. Display/Credit' (STS350), enables you to specify an invoice number and search down to the lowest level of what has been invoiced.