Transfer Rental to Sale

When a rental item has outlived its useful rental life, it can be transferred to the Used Sale Inventory.
This stops the depreciation, when the item is no longer being rented. Usually, special inventory accounts and separate product classes are used to distinguished Used Sale inventory from regular merchandise.

When a rental is transferred to sales, it can be transferred to an existing product number, or a new number can be created.

Note: If a new number is created for each transfer, historical costs can be kept accurate and separate. If added to an existing number, the old stock will be averaged with the new transfer inventory.

When the new sales item is created, the same product number as before can be used, prefaced with a U to identify it as USED.
e.g. 110-5 becomes U110-5 when transferred to used inventory.
This helps cross reference the equipment, when looking up past rental or repair history for a potential buyer.

When the rental to sale transfer is accepted, an inventory transfer entry is automatically recorded on the Rental Journal, which posts with Daily Close 3.
Note: The used inventory is transferred at Book Value.

The inventory transfer posting entry is as follows:

        Rental Inventory is       CREDITED Acct# 1300   With the original cost
        Accum. Depreciation is    DEBITED  Acct# 1301   With the accumulated depreciation
        Used Inventory is         DEBITED  Acct# 1260   With the Book Value

        The journal entry shows:  Source = Transfer #
                                  Reference = XFER RENTAL TO SALE
                                  Details = FR  "product#"  TO "product#"

TRANSFER TRANSACTION #

Accept the next assigned transfer #.

FROM PRODUCT #

Enter the rental product which is being transferred, or select it from the Inventory Search window.

PRODUCT CLASS

The Product Class assigned to this rental item will display.

GROUP

The Group assigned to this rental item will display.

TRANSFER TO PRODUCT #

To create a new sales part record, enter in the new product number, class, and group, or accept the default sales part number generated per the Sales Product Mask setup in the Company Inventory Parameters.
The ability to transfer to a new sales product can be controlled by the Add Sales Inventory flag set in the operator's Security Role Permission.

When creating a new sales part record, the option is provided to click the icon and to select a similar sales part from a similar class and group.
The new product # will then inherit the same class and group from the existing product identified.

Alternatively the product may be transferred to an existing sales product number by entering the Sales part #, or selecting it from the Inventory Search window.
This will dictate the class and product for the sales product.

PRODUCT CLASS

If the class has not been determined, enter the sales Product Class for this item or search for it in the window as outlined in Product Class Search.
The Class change is tracked in the Audit Log.

The new sales product being created will be flagged as Inventory Yes or No, depending on the type of GL account assigned as the "Inventory" posting account in the Sales Product Class.
Refer to Inventory Flag Defaults for further information on how this flag is set when inventory is "auto-added" into inventory.

GROUP

If the group has not been determined, enter the group for this sales item or search for it in the window as outlined in Group Search.
The Group change is tracked in the Audit Log.

SmartEquip - Duplicate Part Warning:
The SmartEquip - Duplicate Products in Same Stock Class warning is triggered if the SmartEquip feature is activated in the Software Integration, when the Sales part is assigned the same Vendor Product # as another Sales part in the same Group.
The warning is displayed with all matches to the Vendor Product # in the Group but it does not stop the operator from proceeding.

This transfer rental to sales action copies the rental Vendor Product # automatically to the sales part, but the Vendor Product # can be changed in the Update Vendor Product # and Description utility if required.

FROM DIVISION

Enter the division which will be used when posting the transfer, or select it from the drop-down list.

FROM LOCATION

Enter the location from which this item is being transferred, or select it from the drop-down list that displays the quantity on hand at each location.

QUANTITY ON HAND

The current quantity on hand at the From Location will display.

TO DIVISION

Enter the Division where the transfer is going, or select it from the drop-down list.

TO LOCATION

Enter the Location, or select it from the drop-down list.

QUANTITY TO TRANSFER

Enter the quantity to be transferred to the new location.

Quantity Control:
If the rental product quantity requested to be converted to a sales part is more than the "Quantity On Hand" of the rental product, the warning "Quantity transferred XX is greater than quantity on hand" is triggered and the transfer is only allowed if the flag to "Allow Overrides On Location Quantities" is set to Yes in the Company Security Parameters.
If the "Allow Overrides On Location Quantities" flag is set to No then the transfer cannot be completed because of insufficient quantity.

Note: It does not check the committed requirements of other documents such as on Contract, on Order, on Transfer, etc.

Fixed Asset Tag Selection:
A window opens, so that a Fixed Asset tag and the appropriate G/L Accounts may be selected.
Select a quantity from the tags that equals the transfer quantity, as displayed at the top of the window, as follows:

ASSET TAG

Window to view and select from the Asset Tags available as outlined in Asset Tag Search.

QUANTITY

Enter the quantity to be transferred from this tag.

ACCOUNT NUMBERS and DESCRIPTIONS

The account numbers for the transfer posting include:

• Rental Inventory: The inventory account that displays from the Product Class for this product, will be Credited.
• Accum Depreciation: Window and select the Accumulated Depreciation account that is associated with the Rental Inventory account, that should be Debited for any depreciation amounts.
• Sales Inventory: The Sales Inventory account, that displays from the Product Class for this product, will be Debited.

AMOUNT

The dollar amounts for the transfer posting include:

• Rental Inventory: The Original Cost will display with a C to be Credited.
• Accum Depreciation: Any Accumulated Depreciation will display with a D to be Debit.
• Sales Inventory: The Book Value amount will display with a D to be Debit.

Finished?

Click ACCEPT to accept the tags and to exit the window.

TRANSFER POSTING DATE

Enter the date to be used on the inventory transfer journal entry.

Date Range Control:
If the operator does not have the ability to over-ride the current date range, the transfer date will be checked to make sure the date is valid against the date ranges set as acceptable for module RSPM in Date Range Control.

OPERATOR

Accept the current Operator, or type in the code for the staff responsible for the transfer.

Finished?

Click ACCEPT to accept or CANCEL to abort.

WEIGHT window

If the Rental product carries a weight value in the Make/Model window in Rental Inventory, the weight is transferred to also become the new Rental product weight.
The total shipment weight prints on the packing slips.

If the Rental product part carries a weight value in the Make/Model window in Rental Inventory but the Sales Inventory already has a weight, then the window to update the weight displays showing the existing Rental product weight and existing Sales part weight.

• Click ACCEPT to change the Sales part weight in the Re-Order Information, to match the transferred Sales part weight.
• Click CANCEL to leave the Sales part weight unchanged.

Finished?

When accepted, the inventory record is updated and the sale to rental inventory transfer journal entry is generated to be posted next time Daily Close 3 is run.

Conflicting Serial Number Window

• If the serial number being transferred already exists on the Sales part, a window opens to allow a new serial number and make/model information to be entered, or exit and the transfer does not occur.
  The values default from the transferred product but can be over-typed on the new serialized product as follows:

  SERIAL NUMBER

  Enter the new serial number for the Sales part.

  DATE RECEIVED

  Enter the Date this part was received.

  MODEL

  Enter any Model information.

  MAKE

  Enter any make information.

  ENGINE MAKE

  Enter the Engine Make if appropriate.

  ENGINE SERIAL#

  Enter the Engine Make if appropriate.

  COST

  The Cost for this part defaults from the transferred product cost.

• If the serial number being transferred already exists, but has been sold on the Sales part, a window opens warning that the Serial Number is sold, and displays the Sale Invoice # and Date of Sale, and to avoid a conflict a new serial number can be entered.

ACTIONS:
Additional actions provided by buttons on the Transfer Rental to Sale screen can be processed for a specific record or generally as follows:

• Generate Rental to Sale Transfer Report
  Click the HISTORY button at the bottom left of the screen to generate a transfer report as outlined in List Rental To Sale Transfers.