If a rental business object is no longer needed, you must scrap or sell it. Unlike a fixed asset, it follows a different process and does not use the standard disposal or scrap journal.
First, convert the business object to inventory by using the Fixed asset to inventory journal in the Business object module. Then, sell it through a sales order or scrap it using an Inventory adjustment journal.
The business object must be off-rented and unlinked from its fixed asset. In Rental Management, the Business object module integrates with the Fixed assets module. You cannot dispose of or sell the object while it is assigned to a fixed asset and still on rent.
This flow describes the standard Rental Management process to convert a business object to inventory before selling or scrapping it.
You must off-rent the business object first. A financial specialist must validate the 'Depreciate until' date. This date is specific to Rental Management and must match the depreciation date of the fixed asset. You must validate this before posting the Fixed asset to inventory journal.
| Name | Responsible | Description |
|---|---|---|
|
Dispose a fixed asset |
Finance manager |
You can dispose of a fixed asset by using one of two journal types: Disposal - sales and Disposal - scrap. Use Disposal - sales to post a disposal amount for the asset. Use Disposal - scrap to remove the asset from the legal entity's books without a value. This process explains how to perform both types and outlines the differences between them. |
|
Dispose of a business object and fixed asset |
Finance manager |
You can sell or scrap a business object. This differs from a fixed asset. Use the Fixed asset to inventory journal to unlink the business object and sell the asset. This journal also converts the business object into inventory. You can trigger this process using a sales order in Rental Management. However, you must post the journal manually. After selling the business object, it receives the external category. Make sure the financial and physical owners are the same. If the object is cross rented across legal entities, you must align ownership before disposal. Also, manually update the status and last on-rent date of the business object after disposing. |
