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When you handle rental items in Business Central, you can use two transfer orders to track items going out to a customer and coming back again. This setup lets you ship an item from your own inventory, deliver it to the customer, and receive it back later, sometimes months down the line.
You control where items go through three location codes in the rental setup: a default rental location code for where the item is shipped to and stored, a transit location code for the time the item is in transport, and a default return location code for when the item comes back. You can configure these per customer or set defaults that apply to all customers using a blank customer entry.
When you create a sales order with a rental item, swapping the rental line automatically creates the two transfer orders. The outbound transfer order handles the shipment out of your inventory and the receipt at the customer. The inbound transfer order handles the return when the item comes home from the customer.
Using two transfer orders for rental items
Rental items move in both directions, so a single document does not cover the full cycle. Instead, you work with two transfer orders. One handles the outbound journey when you ship the item to the customer, and one handles the inbound journey when the item comes back. The return can happen much later, even months after the item first left your inventory.
Setting up rental location codes
The rental setup is where you define how items move. You can set this up for a specific customer, or you can use a blank customer entry that applies to all customers by default. For each setup you define three location codes:
- Default rental location code: where you ship the item to and store it.
- Transit location code: where the item sits while it is in transport.
- Default return location code: where the item goes when it comes back.
This means a blank customer setup covers all customers, while a specific customer, such as customer 20,000, can use its own set of location codes.
Creating a sales order with a rental item
When you create a new sales order, for example for customer 20,000, and add a rental item, you specify the quantity you want to rent out, such as one piece, and the rental period, for example six days. When you swap the rental line, Business Central creates the two transfer orders for you.
You can navigate into both the outbound and inbound transfer orders directly from the rental line on the order.
Handling the outbound and inbound transfer orders
The outbound transfer order is the first one. On it you post the shipment, which ships the item out of your inventory, and then you post the receipt. There may be a transit period built in, for example three days, before the item reaches the customer. The outbound order has its own number, for instance 1,033.
The inbound transfer order determines when the item is coming home from the customer. You use it to handle the return once the rental period is over.
Q&A
Why do you use two transfer orders for rental items?
Rental items move in both directions. One transfer order handles the outbound shipment to the customer, and the other handles the inbound return when the item comes back, which can be months later.
Which location codes do you set up for rentals?
You set up three location codes: a default rental location code for where the item is shipped and stored, a transit location code for items in transport, and a default return location code for when the item comes back.
Can you set rental location codes for all customers at once?
Yes. You can use a blank customer entry in the rental setup, which applies the location codes to all customers by default. You can also set up specific customers with their own location codes.
How are the transfer orders created?
When you add a rental item to a sales order and swap the rental line, Business Central automatically creates the two transfer orders. You can navigate into them directly from the rental line.
How do you post the outbound transfer order?
On the outbound transfer order you first post the shipment to ship the item out of your inventory, and then post the receipt once it reaches the customer. A transit period, such as three days, can be built in before the item arrives.