Explaining the Proces in Rental Management

This is what happens in the video

Rental management in Microsoft Dynamics 365 Business Central lets you handle the full rental process from a single sales order. You create the sales order with the item you want to rent out, then swap the order line into transfer orders and a resource line once the customer confirms.

The transfer orders move the rental item from your own inventory to the customer’s location and back again when the rental ends. You invoice the customer on a recurring basis, for example monthly, using a resource line on the sales order.

The swapping of order lines depends on your rental setup, including rental categories and price ranges. The system automatically handles the remaining invoicing period when the item is returned.

How the rental process starts with a sales order

The salesperson begins by creating a sales order with the items to rent out. In our example, that item is a Segway. At this point the sales order uses an item type line, so you can send an order confirmation to the customer with the correct item and the correct rental prices.

The order line already states from the beginning that this is a rental item. Nothing changes physically until the customer confirms the order back to you.

Swapping the order line into transfer orders and a resource

Once the customer confirms the order, the system starts the actual process of turning this into a rental item. It swaps the order line on the sales order.

This creates two transfer orders, though you can also use one if you prefer. The transfer orders link to the sales order. The original sales order line is changed to a resource type instead, which means you use the resource to invoice the customer.

How the swapping works depends on your rental setup, the rental categories, and the range of prices you have configured.

Shipping and receiving the rental item

After the swap, the warehouse can ship and receive the first transfer order. This ships the item out of your own inventory and receives it on the customer’s inventory.

You can control the location involved. If you rent out to the same customer at a specific production site, you can use a specific location. Otherwise you use a fixed location for your rental goods.

Recurring invoicing during the rental period

With the item out on rental, you can start invoicing it every month. If this is a long rental, the system automatically postpones the rental and continues the invoicing for the period.

Returning the item and final invoicing

When the customer is done using the item and returns it, you post the second transfer order. This ships and receives the item back to your own location from the customer.

The system automatically enters the return date on the sales order. This means you can invoice the remaining period of the rental. That completes the overall flow for rental management.

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