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      How do I convert a Rental to a Sale?

      Converting a Rental to a Sale

      RPM Contract functionality allows you to convert a current rental contract to a sales invoice that considers any rental fees charged to the client prior to the asset sale. The process will allow you to finish calculating & recording outstanding depreciation on the fixed asset, sell the asset, and auto-create the disposal entries to be reviewed and posted later by your Finance department.  The unit will remain in your system as customer-owned so that maintenance history remains intact. It can be added if any additional service work is performed for the client.

      To Convert an Active Rental to a Sale

      1. Open the Contract.
      2. Review the Line Segment history to determine what amount has been billed as rental income.
        1. In the Contract Lines tab, select Manage and then Segments.
      3. Take the Unit off-rent by selecting Home and then Finalize Lines in the top ribbon.

       

      Once the customer has returned the unit to your Rental fleet, you can bill the line out as a sale to the customer.

      Create a new line on the contract for the one-time sale.

      1. Select Iine Type of Fixed Asset.
      2. Choose the asset number that you are selling to the client.
      3. Select the appropriate Billing Code for a one-time sale.
      4. Enter the total amount of the sale.
      5. Create a second line of type G/L Account for account XXXXX for the amount previously billed as a rental.
      6. If desired, enter a Comment indicating the sale details minus the previously billed rental fees. Ensure that the comment is selected for printing on the invoice.
        1. Contract Lines tab, then click Comments.
      7. Using the Personalize feature (Settings cog in top right, Personalize), add the column ‘Depreciate to FA Posting Date’ to the Contract Lines area.
      8. Add a checkmark to the new ‘Depreciate to FA Posting Date’ field. This will ensure that if the asset has not already been depreciated, it will be depreciated up to the current date before the disposal occurs.
      9. Post the Invoice. Selling the Fixed Asset will automatically create disposal entries in the FA Journal.
      10. Mark the RPM Unit card as Deactivated by selecting Actions>Functions>Other> Deactivate RPM Unit.
      11. Ensure the unit is flagged as customer-owned and assigned the correct customer number.
      12. Review and Post the FA G/L Journal Entries created on sale/disposal.