Processing Rental units using miscellaneous item
How to process rentals - Using Miscellaneous item
- Add G/L Sales Account – "Vehicle Rental Income";
- Add G/L COGS Account – "Vehicle Rental COGS";
- Add Location – "Rental" for Units;
- Add Transaction type – "Rental" (only necessary if all transaction types are Exclusive);
- Add Miscellaneous items for each rental period.
Assume Renting Stock number 10-12345
- Go to Unit inventory, select the stock number, then go to General info tab;
- Change Stock number to R-10-12345;
- Change location to "Rental";
- Add Customer Name and Rental Period in the Notes field;
- Add a Service Order WITHOUT the Unit attached OR a Parts invoice (Transaction Type "Rental" OR "Standard" – see above), and add "Rental-"stock number"" in the Ref Doc. field;
- Add the Rented Unit in the Concern Box (if using service order);
- Sell the Miscellaneous item per rental period;
- Receive a deposit AND/OR the rental payment;
- When the Rental Unit is returned, refund the rental deposit;
- Charge the customer for any incidentals using the same miscellaneous code.
NOTE: - All internal work done relating to the rental can either be charged to an internal rental customer pointing to “Rental COGS” OR to the internal unit, adding a cost adjustment to expense the work to Rental COGS.
NOTE: - When selling the Rental unit, the stock number and location can be changed.
Monthly Rental Write-down
- All Rental Unit Values should be written down monthly OR seasonally against the “Vehicle Rental COGS” account, based on the miles put on the unit through rental usage.