Allocate Bulk Disposals


Back Office Menu -> Allocate Bulk Disposals

Reports Menu -> Automatic Reporting -> Function RSBS02 -> runs Bulk Disposals Report


Selling Non-Bulk Rental Inventory:
Non-bulk rental inventory refers to items that are tracked individually, often by serial number and by status code. Each non-bulk product is assigned a unique product number and the quantity per product number is always 1.
Non-bulk rental products are identified by the Bulk flag in the Rental Inventory file.

When Non-bulk rental inventory is sold, and the sales invoice is posted using Daily Close 1, Daily Close 2, and Daily Close 3 programs, the revenue from the sale and the cost on disposal are automatically posted to the General Ledger.
At the same time a Disposal Record is written, which can later be reviewed in Disposal Transactions Report to determine if any depreciation adjustments are required.

When the sale of a Non-bulk rental product is reversed, the equipment is returned on a credit invoice with a negative quantity. This "negative sale" is recorded in the Bulk Disposals file until the relevant Fixed Asset Tag is determined.
When the Disposal Transaction is selected, the corresponding Fixed Asset Tag is updated and the appropriate transactions to reverse the Inventory and COGS postings are written to the Rental Journal Transactions file in preparation for posting on the next Daily Close posting to the G/L.

If the post Depreciation feature has been activated from the Company Posting Parameters, then the posting to clear Depreciation for the sold equipment is now also reversed in the G/L.


Selling Bulk Rental Inventory:
Bulk rental inventory refers to rental inventory where the quantity per Product number is greater than one. Examples of bulk rental items include: points, chisels, air hoses, cutlery, dinner plates, etc.
Bulk rental products are identified by the Bulk flag in the Rental Inventory file, where multiple Fixed Asset Tags can be setup for each product to track costs by purchase lot.

Two Options for Selecting Costs for Bulk Items:

  1. When Bulk rental inventory is sold, and the sales (disposal) invoice is posted using Daily Close 1, Daily Close 2, and Daily Close 3, the revenue from the sale is automatically recorded. The cost of the equipment, however, is not clear at the time of the posting because bulk equipment allow for multiple Fixed Asset Tags with varying costs.

    To handle multiple tags, the sale of any bulk rental equipment writes a record into the Bulk Disposals file, and the cost posting is temporarily held out of Daily Close 2 . The revenues, services and taxes which result from the invoice are immediately posted, and will appear on reports from Daily Close 3.

    On a regular basis, usually part of month end close, the Bulk Disposals must be reviewed to pick the Fixed Asset Tags and complete the cost postings. The costs will appear on the Rental Journal Report next time Daily Close 3 is run.
    It is important to complete Bulk Disposals regularly in order for the correct costs of the equipment to be recognized in the General Ledger, Detailed Product History and Monthly Product History, and Disposal Transactions.

  2. A flag in the Company Posting Parameters, can be set to automate the selection of the Fixed Asset Tag in the Daily Close for the disposal or sale of Bulk Rental products with multiple Fixed Asset Tags.
    When this feature is activated the tag with the oldest acquisition date is automatically updated with the disposal information and the inventory value posting reflects the value from that oldest tag.
    Records are only written to Bulk Disposals when there are insufficient Asset Tag quantities, or when a disposal is being reversed, and the tag then needs to be selected manually.

The Disposal Transaction Record is written, that can be review in Disposal Transaction Report to determine if any depreciation adjustments is required.

Since the Salesman Commission Report relies on the costs of equipment to determine Gross Margins on Sales and Disposals, the Bulk Disposals must be completed before the report can be run.

Posting Asset Value on Disposal:

ALLOCATE BULK DISPOSALS:
The prompts to clear the disposal records in preparation for completing the posting include:

TAG DIVISION, OR 'ALL'
Accept ALL to include Asset Tags from all divisions, or select a division from the drop-down list.
This is the Owning Division of the equipment as determined on the Fixed Asset Tag.

INVOICE DIVISION, OR 'ALL'
Accept ALL to include products sold on invoices from all divisions, or select a division from the drop-down list to include only products sold on invoices from that division.

Resulting Product Disposal List
The Bulk Disposal details lists the bulk items which have been sold on an invoice and any reversals of rental sale transactions, that have not yet been cleared, with the Product #, Invoice #, Date, Quantity Sold, and Selling Price Each.
Invoice Details:
A window is provided on the Invoice# field to drill down to the details of the sale invoice, as outlined in View Document Information.
To select a tag and to clear a bulk disposal record, window on the Allocate field:
ALLOCATE
Window to select the Fixed Asset Tag for that product, as outlined in Allocate Bulk Disposals Window displaying the detailed selling information

Once the tag selection is completed , the outstanding quantity to be allocated is reduced and the balance to be allocated is redisplayed.
When the balance to be allocated reaches zero, the product disappears from the Bulk Disposals list.

Finished?
Click ACCEPT to accept the information, and run Daily Close 3 to complete the postings. The Bulk Disposal posting amounts appear on the Rental Journal Transactions Report.

A Reminder to Contact Leasing Vendor warning is triggered if the rental product has been assigned one in the Lease Information window in Rental Inventory.

Tag Quantity Discrepancy Problems in Bulk Disposals
If the tag quantity did not equal the location quantity in Rental Inventory prior to the sale, both quantities must be adjusted to correct the tag quantity and to be able to clear the item in Allocate Bulk Disposals.
Quantity discrepancies can be checked by running the report in Verify Tag Quantity = Loc Qty.

If there is not enough quantity on the tag in Allocate Bulk Disposals, or if there is no tag at all adjustments can be made as follows:

If the product is a non-bulk product and it is listed in Allocate Bulk Disposals it could be because the product did not have an asset tag when it was sold. In this case, follow these procedures:

For large volume party rental companies, the following is suggested as a daily procedure:

Daily Close 1
Daily Close 2
Allocate Bulk Disposals
Daily Close 3

Prior to the close of each month, run Verify Tag Quantity = Loc Qty and then check Allocate Bulk Disposals.

ACTIONS:
Additional actions provided by buttons on the Bulk Disposal screen include:


Topic Keyword: RSBS02
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