Introduction to the Stock Transfer Register
When you purchase an Item that you intend to offer for rent, you can do so by following the usual process of issuing a
Purchase Order and then receiving the Item into stock using a
Goods Receipt. The Item will then be in sales stock i.e. it will be in stock for resale. As you intend to retain the Item and to offer it for rent, you will need to move it out of sales stock into rental stock. You can do this by entering a record in the Stock Transfer register, which is located in the Internal Stock module.
The Internal Stock record will accomplish the following:
- It will remove the Item from stock. This will be a normal removal from stock so the cost will be calculated in the usual way using the Cost Model that you have specified for the Item, taking the Cost Price for Serial Number option into account if it applies to the Item.
- If you have specified that Nominal Ledger Transactions will be created from Stock Transfer records, the stock valuation in the Nominal Ledger will be updated. The value of the Item calculated as mentioned in the previous step will be transferred from the Stock Account for the From Location to that of the To Location or to the Rental Stock Account.
- If the Item is Serial Numbered, a record for the Item will be created in the Rental Item register in the Rental and Internal Stock modules. This Rental Item record will allow you to offer the individual Item for rent. Separate Rental Item records will be created for each Serial Numbered unit. If the Item is not Serial Numbered, a Rental Item will only be created if you have selected the Create Rental Items and Fixed Assets from Non Serial-Numbered Items option in the Internal Stock Settings setting in the Internal Stock module. In this case a single Rental Item record will be created, irrespective of the number of units that you transfer. You can also add records to the Rental Item register yourself.
- Depending on the information that you enter in the Stock Transfer record, a record for the Item will be created in the Asset register in the Fixed Assets module. You will need to specify an Asset N/L Class and a Depreciation Model for the Asset, so that Item will be included in depreciation calculations. Alternatively you can add a record to the Fixed Asset register yourself.
- If the Item is Serial Numbered and if you are using the Update Known Serial Number Register option in the Stock Settings setting, a record for the Item/Serial Number will be added to the Known Serial Number register in the Service Orders module. The Customer Name in this record will be "Rental Item".
Please refer to the following pages for more details about the Stock Transfer register in Standard ERP:
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