How do I manage loaner equipment

Managing Loaner or Rental Equipment

Warehouse Management

You may find it advantageous to use a different warehouse for your rental items verses your stocking items.  This is an accounting decision and should be discussed with your accounting team and project manager.

Creating Loaner Items

Many clients have loaner equipment that must be tracked and accounted for.   We have found the best method for tracking loaners is to set the items up as "Stock but don't value" items.  This allows you to keep track of the item, just like a regular stocking inventory item, but not affect Cost Of Goods Sold when you consume it on orders.   

There are two ways to accomplish this:  

1. To  know exactly where the item is currently and have a complete history of where that item has been for future reference, follow the directions below to create Serialized Loaner Items.  

2. For smaller, less costly items where you simply want to move these items in and out of inventory -

NOTE:  When the IS A LOANER box is checked and the order the item is on is invoiced, ServMan returns this item directly back to the warehouse.  In other words, when placed on an order and saved, the warehouse sets it aside  (reserves for the order), while the order remains open.  Once the order is invoiced, the item that was set aside, returns to the warehouse  and becomes available again.

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Creating Serialized Loaner Items

Costly items are typically serialized when placed into loaner or rental programs allowing you to track histories around specific equipment.  Speak with your accounting team to determine your correct General Ledger account settings.

• Create an item with the type of "STOCK"
• Check the update to "COGs" flag and enter the proper GL accounts for Income, Inventory and Cost of Sales for loaner items
• Check the Serialize checkbox at the top of the screen and select Received and Sold in the dropdown

• To document exactly which clients used these loaner items, check the Update to Client Systems Database checkbox on Page 2 of the item setup
• Do not check the Is a Loaner checkbox

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Managing Serialized Loaner Items

Managing the items is as simple as placing them on an order, and posting the order to COGs.  This will remove the item from inventory and, if the items "Update to Client Systems Database" check box is set, the item will be updated to the clients Systems tab once the order has been invoiced and updated to AR.  Click here for further information.

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Returning Serialized Loaner Items to Inventory

This is accomplished by placing the item on an order/invoice using a negative quantity and posting the item to COG's.   You must make sure you manually key in the serial number on the Select Serial Number popup.  This returns the item into inventory and makes it available to use again.

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Finding Serialized Equipment that's Out of the Office  

In many rental businesses, the originating order is often kept open until the unit is returned.  

Regardless if the order is open or closed, you can quickly see where an item is by simply right-clicking on the item and selecting Sales History.

You can also view this information from within the item master and clicking on the Serial Inventory tab, and selecting SOLD if the Invoice has been updated or RESERVED if it has not.

If you have updated the records to the client systems tab, you can also search for specific equipment, using the Systems SmartView by serial number, item number, equipment type or any other element of the System record.

Important Note: By default items are not removed from the client systems tab when returned to stock.  If this feature is desired it is possible to script this behavior using a call back procedure. Contact your Project Manager or ServMan support to request this.

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