Loan / Rental Receipt – An overview

Airline operators always have to compromise on inventory levels because of operational contingencies. Though they operate with modern inventory techniques, they often find themselves in short of an important part or being requested by a fellow operator to lend a part to overcome contingencies. To meet this demand or request, operators resort to ‘Loans’ or ‘Rentals’.

Loans or Rentals play an increasingly important role in an airline operator’s inventory management process. ‘Loans’ is the option through which an operator decides to loan a part into his inventory from another operator or supplier.. ‘Rentals’ is the option through which an operator decides to rent a surplus or idle part to another operator.

If an operator is in need of a part, he raises the Loan Order on a Loaner. Based on this, the loaner rents the part. The part received by the operator, will be taken into the inventory through the Loan Receipt.

If a fellow operator (Customer) is requesting for a part, the operator raises Rental Order. Based on this, the operator rents the part out to the customer. After usage, the customer returns the part back to the operator. The part received by the operator is taken back, into the inventory through the Rental Receipt.

This business component enables you to create a loan receipt or rental receipt. You can specify the charges applicable for the loan or rental receipt. After creation, the loan or rental receipt is confirmed to enable parts movement to inventory.

Getting familiar with the activities