How to process Rentals - Using Miscellaneous item

Processing Rental units using miscellaneous item

How to process rentals - Using Miscellaneous item

Accounting

• 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.