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Renting out items in Business Central works through the sales order, and you invoice them with a batch job. This article walks through how to ship a rental item, how the quantities work, and how to invoice rentals periodically, for example once a month.
You can post the shipment of a rental item from the sales order, then invoice it afterwards with the standard batch job. The quantity to ship and the quantity to invoice are based on the number of rental days, not the number of physical items. If you rent out two of the same item for the same period, the quantity doubles.
You can invoice only part of the rental period. If you set a cut-off date, Business Central splits the quantity into what has already been used and what remains. The shipment date and the rental return date stay unchanged, so you can keep invoicing the same rental until the customer returns the item.
Shipping a rental item from the sales order
The starting point is a sales order with a shipment date. In this example the quantity to ship is 15 and the quantity to invoice is 15.
If you open the rental reservation line, you can see that the item has been shipped to the customer. Scrolling right shows the quantity shipped is 1. You are renting out one item, in this case one Segway. The quantity received is 0, and the starting time is 19 September.
This means the customer already has the item. The quantity to ship and the quantity to invoice are the number of days you are renting out the item. If you had rented out two items, the quantity would double for the same period.
How rental quantities are calculated
The quantity to invoice and ship runs from the expected shipment date to the expected rental return date. In this example the shipment date is 19 September and the return date is 3 October.
The quantity reflects the rental days across that period. This is what makes it possible to invoice a rental based on duration rather than a one-off sale.
Invoicing a rental per period
You may want to invoice a rental per month, sending an invoice every month while the customer keeps the item until they are done using it. To do that, you can invoice only up to a chosen date, for example 30 September.
When you run the invoicing, you have a few options:
- Update only the sales line with the correct quantities and dates.
- Update the sales line and post the shipment.
- Update the sales line and post both the shipment and the invoice in one go.
If you only post the shipment, you can run the standard batch job to invoice it afterwards.
You also need to select the correct order number. If you choose the rental period directly on the rental page, it picks up the order number for you. If you use the general rental period posting instead, you have to enter the number manually.
What happens after posting
After confirming the posting, the rental is posted up to the end of September. Scrolling right on the line shows the quantity to ship and invoice is now 3, which are the three days in October. The quantity shipped is 12 days in September.
The shipment date is still 19 September and the ending date is still 3 October. The dates do not change, so the remaining rental period stays intact for the next invoice.
When you check the posted documents, you find both the posted invoice and the posted sales shipment. The last posted invoice relates to the 12 days you just posted.
With this approach you can invoice a rental item periodically while the customer keeps it, and the system keeps track of what has been invoiced and what is still outstanding.
Q&A
How do you invoice a rental item in Business Central?
You ship the rental item from the sales order and then invoice it with the standard batch job. You can post the shipment first and invoice afterwards, or post the shipment and invoice in one go.
What does the quantity on a rental line represent?
The quantity to ship and the quantity to invoice are based on the number of rental days between the shipment date and the rental return date, not the number of physical items. If you rent out two of the same item for the same period, the quantity doubles.
Can you invoice a rental in monthly periods?
Yes. You can invoice only up to a chosen cut-off date, for example the end of the month, and keep invoicing the rest later. The shipment date and rental return date stay unchanged, so the remaining period is preserved for the next invoice.
What happens to the quantities after a partial rental invoice?
Business Central splits the quantity into what has been used and what remains. In the example, after posting 12 days in September, the quantity shipped becomes 12 and the quantity still to ship and invoice becomes 3, covering the three days in October.
Do you need to enter the order number manually when invoicing a rental?
It depends. If you choose the rental period directly on the rental page, the order number is picked up automatically. If you use the general rental period posting, you have to enter the correct order number yourself.