Managing Internal Rental Pricing

A price on a purchase order is normally the price to be paid when purchasing an item. This is not the same price as when renting an item. The purchase price of the main purchase order line does not therefore reflect the price invoiced by the owning division. It is instead the subline connected to the main line that holds the information of the price to be paid for each rental cyclic invoice.

When creating the PO line, a price is set on the PO line if one is found. This price is set to 0 when the internal rental agreement is activated. Then the price from the rental agreement line is set as the purchase price on the subline. The price on the subline is per rental invoice. The quantity on the subline represents the number of invoices expected to be sent from the owning division. This means that the price on the subline multiplied with number of invoices (quantity on subline) should match what is expected to be the total rental price for the total rental period, given that full periods are to be invoiced.

In internal rental it is always the rental agreement and owning division that determine the price. There is no functionality to let the PO price update the rental price on the internal rental agreement.

If a matching rental price list is found when the internal rental agreement is created, this is used to set the price on the internal rental agreement line.

If no price is found, it is important to manually set a price before activating the agreement. If you do not, the PO subline has zero as the purchase price. The purchase price on the PO is not updated automatically if the rental price is updated after the agreement has been activated. To change the purchase price on the PO subline, the confirmation must be removed in 'Purchase Order. Display Line Trans' (PPS330).

The price transferred to the PO subline is the net period rate from the rental line. This means that if any discount is set on the rental line, this affects the net period rate and therefore also affects the price on the PO subline.