Transfer Rental to Sale
Inventory Control Menu -> Rental/Sale
Transfers -> Transfer Rental to Sale
When a rental item has outlived its useful rental life, it can
be transferred to the Used Sale Inventory.
This stops the depreciation, when the item is no longer being
rented. Usually, special inventory accounts and separate product
classes are used to distinguished Used Sale inventory from regular
merchandise.
When a rental is transferred to sales, it can be transferred to
an existing product number, or a new number can be created.
Note: If a new number is created for each transfer, historical
costs can be kept accurate and separate. If added to an existing
number, the old stock will be averaged with the new transfer
inventory.
When the new sales item is created, the same product number as
before can be used, prefaced with a U to identify it as USED.
e.g. 110-5 becomes U110-5 when transferred to used inventory.
This helps cross reference the equipment, when looking up past
rental or repair history for a potential buyer.
When the rental to sale transfer is accepted, an inventory
transfer entry is automatically recorded on the Rental Journal,
which posts with Daily Close 3.
Note: The used inventory is transferred at Book Value.
The inventory transfer posting entry is as follows:
Rental Inventory is CREDITED Acct# 1300 With the original cost
Accum. Depreciation is DEBITED Acct# 1301 With the accumulated depreciation
Used Inventory is DEBITED Acct# 1260 With the Book Value
The journal entry shows: Source = Transfer #
Reference = XFER RENTAL TO SALE
Details = FR "product#" TO "product#"
The prompts to enter a transfer are:
-
- TRANSFER TRANSACTION #
- Accept the next assigned transfer #.
FROM PRODUCT #
- Enter the rental product which is being transferred, or select
it from the Inventory Search window.
PRODUCT CLASS
- The Product Class assigned to this rental item will
display.
GROUP
- The Group assigned to this rental item will display.
TRANSFER TO PRODUCT #
- To create a new sales part record, enter in the new product
number, class, and group, or accept the default sales part number
generated per the Sales Product Mask setup in the Company Inventory Parameters.
The ability to transfer to a new sales product can be controlled by
the Add Sales Inventory flag set in the operator's Security Role Permission.
When creating a new sales part record, the option is provided to
click the icon and to select a similar sales
part from a similar class and group.
The new product # will then inherit the same class and group from
the existing product identified.
Alternatively the product may be transferred to an existing
sales product number by entering the Sales part #, or selecting it
from the Inventory Search window.
This will dictate the class and product for the sales
product.
PRODUCT CLASS
- If the class has not been determined, enter the sales Product
Class for this item or search for it in the window as outlined in
Product Class Search.
The Class change is tracked in the Audit
Log.
The new sales product being created will be flagged as
Inventory Yes or No, depending on the type of GL account
assigned as the "Inventory" posting account in the Sales Product Class.
Refer to Inventory Flag Defaults for
further information on how this flag is set when inventory is
"auto-added" into inventory.
GROUP
- If the group has not been determined, enter the group for this
sales item or search for it in the window as outlined in Group Search.
The Group change is tracked in the Audit
Log.
SmartEquip - Duplicate Part Warning:
The SmartEquip - Duplicate Products in Same
Stock Class warning is triggered if the SmartEquip feature is activated in the Software Integration, when the Sales part is
assigned the same Vendor Product # as another Sales part in
the same Group.
The warning is displayed with all matches to the Vendor Product
# in the Group but it does not stop the operator from
proceeding.
This transfer rental to sales action copies the rental Vendor
Product # automatically to the sales part, but the Vendor
Product # can be changed in the Update
Vendor Product # and Description utility if required.
FROM DIVISION
- Enter the division which will be used when posting the
transfer, or select it from the drop-down list.
FROM LOCATION
- Enter the location from which this item is being transferred,
or select it from the drop-down list that displays the quantity on
hand at each location.
QUANTITY ON HAND
- The current quantity on hand at the From Location will
display.
TO DIVISION
- Enter the Division where the transfer is going, or select it
from the drop-down list.
TO LOCATION
- Enter the Location, or select it from the drop-down list.
QUANTITY TO TRANSFER
- Enter the quantity to be transferred to the new location.
Quantity Control:
If the rental product quantity requested to be converted to a sales
part is more than the "Quantity On Hand" of the rental
product, the warning "Quantity transferred XX is greater than
quantity on hand" is triggered and the transfer is only allowed
if the flag to "Allow Overrides On Location Quantities" is
set to Yes in the Company Security
Parameters.
If the "Allow Overrides On Location Quantities" flag is set
to No then the transfer cannot be completed because of insufficient
quantity.
Note: It does not check the committed requirements of other
documents such as on Contract, on Order, on Transfer, etc.
Fixed Asset Tag Selection:
A window opens, so that a Fixed Asset tag and the appropriate G/L
Accounts may be selected.
Select a quantity from the tags that equals the transfer quantity,
as displayed at the top of the window, as follows:
-
- ASSET TAG
- Window to view and select from the Asset Tags available as
outlined in Asset Tag Search.
QUANTITY
- Enter the quantity to be transferred from this tag.
ACCOUNT NUMBERS and DESCRIPTIONS
- The account numbers for the transfer posting include:
- Rental Inventory: The inventory account that displays
from the Product Class for this product, will be Credited.
- Accum Depreciation: Window and select the Accumulated
Depreciation account that is associated with the Rental Inventory
account, that should be Debited for any depreciation amounts.
- Sales Inventory: The Sales Inventory account, that
displays from the Product Class for this product, will be
Debited.
AMOUNT
- The dollar amounts for the transfer posting include:
- Rental Inventory: The Original Cost will display with a
C to be Credited.
- Accum Depreciation: Any Accumulated Depreciation will
display with a D to be Debit.
- Sales Inventory: The Book Value amount will display with
a D to be Debit.
Finished?
- Click ACCEPT to accept the tags and to exit the window.
TRANSFER POSTING DATE
- Enter the date to be used on the inventory transfer journal
entry.
Date Range Control:
If the operator does not have the
ability to over-ride the current date range, the transfer date will
be checked to make sure the date is valid against the date ranges
set as acceptable for module RSPM in Date
Range Control.
OPERATOR
- Accept the current Operator, or type in the code for the staff
responsible for the transfer.
Finished?
- Click ACCEPT to accept or CANCEL to abort.
WEIGHT window
- If the Rental product carries a weight value in the
Make/Model window in Rental
Inventory, the weight is transferred to also become the new
Rental product weight.
The total shipment weight prints on the packing slips.
If the Rental product part carries a weight value in the
Make/Model window in Rental
Inventory but the Sales Inventory
already has a weight, then the window to update the weight displays
showing the existing Rental product weight and existing Sales part
weight.
- Click ACCEPT to change the Sales part weight in the Re-Order
Information, to match the transferred Sales part weight.
- Click CANCEL to leave the Sales part weight unchanged.
Finished?
- When accepted, the inventory record is updated and the sale to
rental inventory transfer journal entry is generated to be posted
next time Daily Close 3 is run.
Conflicting Serial Number Window
- If the serial number being transferred already exists on the
Sales part, a window opens to allow a new serial number and
make/model information to be entered, or exit and the transfer does
not occur.
The values default from the transferred product but can be
over-typed on the new serialized product as follows:
-
- SERIAL NUMBER
- Enter the new serial number for the Sales part.
- DATE RECEIVED
- Enter the Date this part was received.
- MODEL
- Enter any Model information.
- MAKE
- Enter any make information.
- ENGINE MAKE
- Enter the Engine Make if appropriate.
- ENGINE SERIAL#
- Enter the Engine Make if appropriate.
- COST
- The Cost for this part defaults from the transferred product
cost.
-
If the serial number being transferred already exists, but has
been sold on the Sales part, a window opens warning that the Serial
Number is sold, and displays the Sale Invoice # and Date of Sale,
and to avoid a conflict a new serial number can be entered.
ACTIONS:
Additional actions provided by buttons on
the Transfer Rental to Sale screen can be processed for a
specific record or generally as follows:
- Generate Rental to Sale Transfer Report
Click the HISTORY button at the bottom left of the
screen to generate a transfer report as outlined in List Rental To Sale Transfers.
Topic Keyword: RSTS01