Hey there!
Today's topic is near and dear to the heart of anyone implementing Dynamics 365 Finance & Operations for a company that rents equipment and vehicles, but wanted to explore options on implementing this without customizing the system OR buying an ISV to do so. Well, if that lucky duckling was / is you, then you're in luck, because today we’re diving into two straightforward, out-of-the-box approaches to make this process smooth as room temperature butter. Or as smooth as Brummel and Brown butter original spread. Not an ad, or sponsored but that butter is the best, don't @ me.
But first, because no blog is complete without a dad joke:
Why don't vehicles ever get lost?Because they always have a “wheel” to guide them!
Now, buckle up and let’s drive right into it!
Approach 1: Using Project Management and Accounting Module
Overview:The Project Management and Accounting module in D365 F&O can be an excellent way to handle rental scenarios. This module is typically used for managing projects, but with a bit of creativity, it can be adapted to track rented assets.
How It Works:
Project Creation:
Create a new project for each rental agreement. This project will serve as a container for all transactions related to the rental.
Item Requirements:
Use the Item Requirements functionality to specify the equipment or vehicles being rented. Each item can have specific dates for when it is expected to be rented out and returned.
Time and Material Projects:
Set up the project as a Time and Material project. This allows you to bill customers based on the duration of the rental and any additional costs incurred.
Tracking and Billing:
Track the rental period through the project’s timeline and generate periodic invoices based on the rental duration and usage.
Advantages:
Provides detailed tracking of each rental transaction.
Integrates seamlessly with other financial modules for invoicing and reporting.
Example: *Note, this example is totally made up and not anywhere close to a real life example I may be going through. Imagine you run a construction company that rents out bulldozers. Each bulldozer rental is set up as a project. You can track how long each bulldozer is rented out, any maintenance costs incurred during the rental period, and easily bill the customer accordingly.
Approach 2: Using Asset Management Module
Overview:The Asset Management module is a fantastic tool for companies that need to manage and maintain their equipment and vehicles. This module can also be adapted to handle rentals by treating rented items as assets with specific rental schedules.
How It Works:
Asset Setup:
Set up each piece of equipment or vehicle as an asset within the Asset Management module. Include all relevant details such as purchase date, maintenance schedule, and expected rental lifespan.
Work Orders:
Create work orders for each rental. These work orders will track the rental duration, any maintenance performed, and other related activities.
Rental Schedules:
Use the scheduling feature to book assets for specific rental periods. This ensures that the asset is available for the customer and not double-booked.
Service Orders:
Generate service orders for the rental period. These service orders can include rental fees, delivery charges, and any additional services provided during the rental.
Advantages:
Centralized management of all assets, including maintenance and rental schedules.
Detailed tracking of asset usage and rental periods.
Example:Let’s say you're a dad who loves to take the family on outdoor adventures, but you don't own an RV. Instead, you rent one every summer. Each RV is set up as an asset in D365 F&O. When you book the RV, a work order is created, detailing the rental period and any special requests like a barbecue grill or extra camping gear. The system tracks the RV’s availability, ensuring it’s ready for your adventure and for the next family after you return it.
Combining Both Approaches: When to Use Both Project Management and Asset Management Modules
There are situations where combining both approaches might be beneficial. Here’s when you might consider this hybrid method:
When to Use Both:
Complex Rentals with Detailed Tracking:
If you have complex rental agreements that require detailed tracking and invoicing, using both modules can provide a comprehensive solution. For example, a construction company that rents out large machinery might need to track not only the rental duration and maintenance but also the specific projects the machinery is being used for.
Long-Term Rentals with Maintenance:
For long-term rentals where maintenance and service are crucial, combining both modules ensures that you can manage the rental period, track maintenance schedules, and handle invoicing efficiently. For instance, a company renting out medical equipment for extended periods might need to ensure regular servicing while also keeping track of each rental period.
Asset Utilization and Financial Reporting:
Using both modules allows for better asset utilization tracking and detailed financial reporting. This is particularly useful for organizations that need to report on asset performance and rental income separately while maintaining a holistic view of their financial health.
How It Works:
Project Creation and Asset Setup:
Create a project for each rental agreement and set up the rented item as an asset. The project tracks financial transactions and billing, while the asset management module handles maintenance and availability.
Integrated Work Orders and Service Orders:
Use work orders to manage rental schedules and service orders to track maintenance. Both modules work together to provide a complete picture of the rental lifecycle.
Example: Imagine you're a dad who not only rents out family camping equipment but also runs a small business renting out heavy machinery. You need to track each piece of equipment’s usage, maintenance schedules, and rental periods while also keeping an eye on your financials. By using both Project Management and Asset Management modules, you can ensure that every aspect of your rentals is covered, from maintenance and availability to invoicing and financial reporting.
Wrapping Up
There's always more than one way to skin a cat, and the same goes for solving a problem in Dynamics 365. In our case, we solved this problem without needing to customize our system OR buying an ISV.
Dad Joke Bonus (yes, you're welcome):
Why was the Pepsi Cola employee fired?
He tested positive for Coke (sorry, not sorry on this one).
Bye (for now),
Dynamics Dad
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