3rd Party Rental

If a customer wants to rent an item that is not in stock, it can be useful to rent the item from a vendor instead of buying it or not being able to rent the item to the customer. This type of renting from a vendor is referred to as 3rd party rental.

The process for creating the 3rd party rental purchase differs depending on if serialized items are used.

3rd party rentals without serial numbers

This process describes how to create and process the 3rd party rental purchase order for non-serialized items.

To create the rental purchase order

  1. Create the rental contract.

  2. On the Lines FastTab, choose Line > Functions > Create Purchase Order.

  3. In the dialog box, enter a vendor in the Vendor No. field.

  4. In the confirmation message, choose the Yes button to open the purchase order or the No button to close the message.

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    The purchase order can be accessed later by choosing Line > Related Information > Rental Purchase Orders on the Lines FastTab in the Rental Contract.

    Upon creation of the Purchase Order, the Location Code in the Rental Contract is changed to the 3rd Party Location Code that is entered in the External Rental Loc. Code field in the Rental Setup page.

To post the rental purchase order

The shipment of the Purchase Order posts the positive adjustment for the items to make them available on the 3rd Party Location. Since the rented item will be returned to the vendor, you can post a receipt and invoice simultaneously.

  1. Update the purchase order with invoice number and costs as needed.
  2. On the Home menu, choose the Post action.
  3. With the Receive and Invoice option selection, choose the OK button.

To process the rental contract

Now you can ship the item to the customer and process the return from the Rental Contract as usual.

  1. Post the shipment of the rental item to the customer.
  2. Post the return of the rental item to you.

To process the return to the vendor

Once the item return is processed to you, you can complete the return to the vendor using the Rental Purchase Order.

  1. On the Lines FastTab, choose Line > Related Information > Rental Purchase Orders.
  2. In the Qty. to Return field, enter the number of rental items to return to the 3rd party vendor.
  3. On the Home menu, choose the Post action.
  4. Choose the Return option and then choose the OK button.

If all items have been returned to the vendor and no further processing is required, you can delete the Rental Purchase Order. If this is a long-term rental with multiple vendor invoices, you will need to create Follow-Up Invoices.

3rd party rentals with serial numbers

When a 3rd party rental is needed for serialized items, the assignment of the serial number occurs in the Rental Contract line after the Rental Purchase Order is created but prior to posting the receipt in the Purchase Order.

  1. Create the rental contract.
  2. On the Lines FastTab, choose Line > Functions > Create Purchase Order.
  3. In the dialog box, enter a vendor in the Vendor No. field.
  4. In the confirmation message, choose the No button to close the message.
  5. In the Rental Contract line, choose Line > Related Information > Item Tracking Lines and then enter the serial number provided by the vendor, which does not exist in inventory.
  6. On the Lines FastTab, choose Line > Related Information > Rental Purchase Orders.
  7. Enter the pricing in the line and update the vendor invoice number if necessary.
  8. On the Home menu, choose the Post action.
  9. With the Receive and Invoice option selection, choose the OK button.
  10. Go back to the Rental Contract.
  11. Post the shipment of the rental item to the customer.
  12. Post the return of the rental item to you.
  13. On the Lines FastTab, choose Line > Related Information > Rental Purchase Orders.
  14. In the Qty. to Return field, enter the number of rental items to return to the 3rd party vendor.
  15. On the Home menu, choose the Post action.
  16. Choose the Return option and then choose the OK button.

If all items have been returned to the vendor and no further processing is required, you can delete the Rental Purchase Order. If this is a long-term rental with multiple vendor invoices, you will need to create Follow-Up Invoices.

Follow-Up Invoices

For long-term rentals, you and the vendor may negotiate a payment schedule, which would require you to create multiple invoices from the Rental Purchase Order. This is handled through Follow-up Invoices.

After the initial invoice is posted from the Rental Purchase Order, you process the shipment to the customer from the Rental Contract as usual. Once it is time to create the next invoice to the vendor, the follow-up invoice is created from the Rental Purchase Order.

  1. Ensure that the work date is set correctly.
  2. Open the Rental Purchase Order for the 3rd party rental.
  3. On the Home menu, choose the Create Follow-Up Invoice action.
  4. Update the purchase order with invoice number and costs as needed.
  5. On the Home menu, choose the Post action.
  6. Choose the Yes button to complete the posting process.

Posted and unposted follow-up invoices are accessible on the Order menu.

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