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 is returned or when the rental agreement is terminated.

After the rental agreement is invoiced:

• Analyze updated sales statistics in the sales statistics and performance programs, and in 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.
• Use the invoice inquiry to search for invoices and create credits in 'Rental Invoice. Display/Credit' (STS350).
• 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 can apply to customer orders but not to rental agreements. To exclude a service charge from rental invoicing, use the 'Service charge' field in 'Settings - Rental Agreements' (STS699).

These are the available options for the 'Service charge' field:

• Service charge is calculated for rental.
• Service charge is not calculated for rental.
• Service charge is calculated for rental, but only for rental sales lines.

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 values such as payer, payer address number, customer site, or customer site address number differ between agreement lines of the same agreement.

   If the 'Inv at check-in' field 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 is specified.

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

2. Approve invoice proposal

   When the invoice proposal is created, you can examine agreements before confirmation. If an agreement line requires adjustment or update, you can generate a new proposal after you make the changes.

   Note: You can access and maintain rental agreements while an invoice proposal is open. The proposal must not be approved, and no service order (SO) must exist.

   When an invoice proposal exists, you can perform these actions:

   • Update rental agreements and manage agreement lines.
   • Add agreement lines.
   • Perform activities such as stand-down management, termination, and exchange.

   To ensure invoicing accuracy, follow these rules:

   • Change selected non-invoice-impacting information on the agreement and the included agreement lines in the invoice proposal.
   • Ensure that date-related updates are not earlier than the invoice coverage defined in the proposal.
   • Stand-down periods and terminations must not conflict with dates already covered by the invoice proposal.

   When an invoice proposal is approved, a service order for invoicing is created and displayed in 'Rental Invoice Proposal. Update' (STS810). After the SO is created, you can generate the invoice.

   Note: This behavior applies when the Vertex solution for US Sales and Tax Calculation is integrated with M3 BE.

   When the SO is invoiced, the tax is calculated through Vertex. The Vertex solution is involved only when US Sales Tax is relevant for the division. To enable this process, set the 'Tax method' field on 'Company. Connect Division' (MNS100/G) to 3.

   The tax code is retrieved according to this hierarchy:

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

     You can change the tax code manually for each 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, the invoice proposals 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, and total invoice amount excluding VAT.

   Use the invoice inquiry program, 'Rental Invoice. Display/Credit' (STS350), to specify an invoice number and view detailed invoice information at all levels.

5. Split invoice

   Split the invoice job to improve performance when processing large volumes of invoices. Running a single job can take a long time.

   You can split the invoice job through the 'Split inv job' field in (CRS790). Specify the number of invoice orders in each batch when the invoice job is submitted from (SOS180). This setting enables running parallel jobs during invoicing, if the number of 'Max active jobs' per queue job in 'Job Queue. Open' (MNS300) supports the configuration. Set the value to at least 2 to split an invoice job.

   Note: If no record exists for (SOS181CL) in 'Job. Connect Job Queue' (MNS310), the 'Max active jobs' setting in (MNS300) is not used. In this case, the invoice job can be split into a maximum of 20 batches.

   Consider the expected number of invoice orders in an invoice run when configuring the 'Split inv job' and 'Max active jobs' fields. For example, if the expected number of deliveries in an invoice run is 100,000 and the 'Max active jobs' is 10, set the 'Split inv job' to 10,000 to use all 10 available jobs. If the 'Max active jobs' is 20, set 'Split inv job' to 5,000 to use all 20 available jobs.

   Invoice orders that have the same payer remain in the same invoice job to support summary invoicing. All deliveries are sorted in the payer's order and added to an invoice job batch. Once the number of invoice orders are selected for a job batch according to 'Split inv job', any remaining deliveries for the current payer are also added to the job batch.

   The split invoice job functionality is not activated if 'Split inv job' is blank.

   You can activate 'Split inv job' only under these conditions:

   • 'Direct to FIM' is not selected.
   • 'Direct to FIM' is selected but 'Compr FIM trans' is not selected.
   • 'Direct to FIM', 'Compr FIM trans', and 'Sep voucher no' are selected.