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When you rent out items by the day or for short periods in Business Central, you can simplify the rental process by using a single transfer order instead of two. This setup handles both the shipment to the customer and the return on one document. To make it work, the default rental location must be marked as a transit location on the location card, and the default return location must differ from the rental location. You cannot create a transfer order where the from-location and to-location are the same.
If you need the rental and return to use the same physical location, you have to stick with two transfer orders instead of one.
Using one transfer order for short-period rentals
For rentals that run by the day or over short periods, you don’t need the full two-transfer-order setup. You can rely on the posting of shipment and receipt as the transfer, combined with the transit code, to handle the whole rental cycle on a single transfer order.
The key is the location setup. The default rental location code has to point to a location that is marked with transit on the location card, using the standard field that flags it as a transit location. The default return location code then has to be a different location.
This is required because a transfer order cannot have the same from-location and to-location. In a practical example, the from-location might be your “Basic” location, and you then need a separate location for the return. If you want both to use the same location, you are back to creating two transfer orders.
How it works in Business Central
Once the customer is set up with the right location defaults, you create a rental for the item, for example a Segway, with a start date and a rental period of three days. When you post the line, Business Central creates only one transfer order rather than two.
You can confirm this on the rental relation line. The outbound transfer and the inbound transfer share the same transfer order number. The transfer-from location comes from the sales order line, the return location comes from the setup on the transfer and sales order line, and the transit location sits in between.
Shipping and receiving the rental item
You ship the transfer order on the rental start date. When the customer returns the item, you receive it back on the return date. If the item goes out on the start date and comes back two days later, the customer pays for three days, covering the second, third, and fourth day until the item is returned.
After you receive the transfer line, it is both shipped and received successfully, and the sales order quantity reflects the three rental days. Everything matches, and you can then post using the period posting job. This lets you post the sales order for the three days and keeps short-period rentals simple to handle.
Q&A
When can I use a single transfer order for rentals in Business Central?
You can use one transfer order when you rent out items by the day or for short periods. It handles both the shipment to the customer and the return on a single document, which keeps the process simpler.
What setup is required to use one transfer order instead of two?
The default rental location code must point to a location marked with transit on the location card, using the standard transit location field. The default return location code must be a different location from the rental location.
Why can’t I use the same location for the rental and the return?
A transfer order cannot have the same from-location and to-location. If you want both to use the same physical location, you have to create two transfer orders instead of one.
How does Business Central handle the rental period for billing?
The customer pays for the full rental period. If the item ships on the start date and is returned two days later, the customer is billed for three days. You post the sales order for those days using the period posting job.