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Process for Loaned Equipments or free equipment with usage based billing

Rohit_Zalani
Participant
0 Kudos
214

Hi All,

A lot of Medical device companies / Office equipment Companies work on the model where the device or machine is sent to the customer free / on rent / lease or the customer is charged based on usage of the equipment. While subscription billing can be used for usage based billing, the following are challenges that still exist:
a. A finished product first needs to be converted into an asset for such leased / rented equipment
b. The underlying equipment master needs to be updated with the asset number.
c. Financials need to be posted to show asset in transfer based on the current asset value
d. Asset depreciation needs to be commenced based on the receipt of the asset at the customer.
e. Asset returned needs to automatically stop depreciation and the asset cost should be reflected based on usage or services carried out for onward movement to the next customer.
All this requires an integration between Sales, Logistics and Finance.
Would appreciate inputs from fellow members on their experience / approach to integrate all these functions end to end.

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