Lease/Rental Contracts
You use the Lease/Rental Contracts application to define the overall terms and conditions of an agreement between a vendor and a customer that pertains to rotating assets. A rotating asset is an asset that is interchangeable, such as a motor, pump, or laptop computer.
Rotating assets have an asset number and an inventory item number. Using both of these numbers, you track the asset as it moves from an operating location to a storeroom and back to an operating location.
After the customer receives the assets, the Lease/Rental Contracts application
provides the details of the individual costs per asset. Payment schedule details
are generally consolidated and provided on a monthly or quarterly basis. The
payment schedule details can include the following information:
- Total payment amount
- Total number of payments
- Lease rate factor
- Period payment amount
- Costs associated with each asset that was delivered during the specified time period
When you receive a new payment schedule, you can create a lease contract under the master agreement, add a payment to an existing lease contract, or create a lease contract under the existing master with one line of payment schedule details.