Create Rental Order – A summary of the activity

Airline operators always 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. The customer thus raises a request for a part, typically a rotable or test equipment, to be rented or leased for a specific period. The operator acknowledges the request and creates a rental order to release the part.

Rental Order

The rental order is a document created to acknowledge the customer request and to record the details of the part to be rented. You can create one rental order per part. In case of components, you can create one rental order per component. While creating the rental order, you can specify the terms and conditions, TCD details and the penalty charges applicable for the rental order.

Typical Rental Order Process

• A lease agreement is drafted between the Lessor and the Lessee (Customer) to arrive at common terms and conditions for leasing or renting.

• The customer then places a request for a part on lease by specifying the part number, preferred condition, lease tenure etc.

• Based on the customer request, the lessor checks the availability of the part and identifies even the serial number that matches the lessee’s requirement such as part condition.

• The lessor raises a rental order specifying the part number and/or the serial number of the unit being rented out, along with the charge details, lease period details (calendar and/or usage), terms and conditions, taxes, charges and discounts and penalty rates if applicable.

Rental Order Statuses

• Draft – When the rental order is created with some mandatory information not entered

• Fresh – When the rental order is created with all mandatory information entered

• Canceled – When the rental order is canceled

• Returned – When the rental order is returned by an authorizer

• Released – When the rental order is authorized

• Under Amendment – When the rental order is under amendment

• Amended – When the rental order is modified after approval

• Shipped – When the rental order is updated with part shipment information

• Acknowledged – When the rental order is updated with the item receipt  acknowledgement information

• Closed – When all the items issued out through rental order are received and rental order is closed

Getting familiar with the pages inside

What you can do in this activity

Create a rental order

Enter terms and conditions

Enter TCD details

Enter penalty charges

View consumption and range parameter details

Create a rental order

You can create a rental order that contains the details of the part to be rented along with the terms and conditions, TCD details, penalty charges and other information pertaining to the rental process.

• Go to the “Select Part #” page to select a part for creating a rental order.

• Go to the “Create Rental Order” page to create a rental order.

Enter terms and conditions

You can specify the various terms and conditions (payment terms, agreement terms, delivery terms, etc.) applicable for the rental order.

• Go to the “Edit Terms & Conditions” page to enter terms and conditions for the rental order.

Enter TCD details

You can enter the taxes and charges that are applicable for the rental order.

• Go to the “Edit TCD Details” page to enter TCD details for the rental order.

Enter penalty charges

You can enter the penalty charges that are applicable for the rental order.

• Go to the “Edit Penalty Charges” page to record the penalty charges for the rental order.

View consumption and range parameter details

• Go to the “View Consumption & Range Parameters” page to view the consumption and range parameters for the component.