Scrap Rental Items
When a unit is beyond repair or at the end of its life, a scrap request takes it out of the fleet properly: it checks the unit can go, sets it to Scrapped, records the scrap on its history, and prepares the disposal of its fixed asset for your accounts team to post.
How it fits in
Scrapping is for a unit you still have in the yard but will never hire out again: written off after damage, worn out, or not worth repairing. If the unit never came back from a customer, use Lost Items instead, which also recharges the customer.
Nothing is scrapped the moment you ask. You create a scrap request with the units on it, check it, and then select Process. Until then you can change your mind, and if your business wants a second pair of eyes, the request can go through an approval first. Each processed request is kept under Posted Scraps.
The accounts side is covered both ways. Processing a request queues the disposal of each unit's fixed asset on a journal; and when your accounts team posts a disposal of a unit's fixed asset themselves, the unit is retired for you. Anything that gets out of step shows on the Fleet and Asset Mismatches list.
Before you start
Scrap requests and posted scraps take their numbers from two fields on Rental Setup. The setup wizard fills them for a new company, and the upgrade did so for an existing one, creating the number series RSCRAP and RSCRAP+ where they were missing.
Creating a scrap request
Select Create Scrap Request in any of three places. Each one checks the units first and then opens the new request, dated the work date, with a line for each unit.
On the Rental Item card: for that one unit.
On the Rental Items list: select several units and get one request for all of them. It is all or nothing: if any selected unit cannot be scrapped, every problem is listed and no request is created.
On a maintenance order: for the unit the order is for, when the work shows it is not worth finishing. See Scrapping from a maintenance order below.
What stops a unit being scrapped
A unit can go on a request only when all of these are true. When one is not, you are told which unit and why, one problem per line.
- It is in the yard: its status is Available, Not-Ready, Maintenance, Service or Unavailable. A unit that is Rented (out on hire), In-Transit, Lost, Scrapped, Sold or Transferred-Out cannot be scrapped.
- It is not booked on a rental quote or order that has not shipped. Swap or unallocate it there first.
- It is not in transit on a location transfer. Scrap it once the transfer is complete.
- No maintenance order for it is In Progress or Completed (started but not yet posted). Scrap it from that maintenance order instead, so the work is posted. An Open maintenance order that has not been started is simply cancelled when the unit is scrapped.
- It is not already on another scrap request.
- Your company owns it. A unit shared with you through Global Equipment can only be scrapped by the company that owns it.
- It is not a bulk item. Scrapping bulk items is not supported.
The scrap request
The request has a General FastTab and a Units list. While its status is Open you can change the date and reason and add or remove units; once it is waiting for approval or released, it is locked.
While a unit is on a request that has not been processed, whether the request is open, waiting for approval or approved, the unit cannot be allocated to or shipped on a rental line. Its Rental Item card shows the request in Scrap Request No.
Changed your mind? Delete an Open request and its units are free again straight away. To change a request that has already been approved, select Reopen to return it to Open first.
Processing the request
Select Process. Every check runs again across all the units, because things may have changed since the request was made. If any unit fails, nothing changes and every problem is listed together. When all the units pass, a message confirms the posted scrap number (for example Scrapped as PSCRAP00004.), and for each unit:
Its status becomes Scrapped, so it can no longer be booked, allocated or shipped. The Rental Item record stays, so its history and past documents still make sense.
A Rental Ledger Entry of type Scrap, quantity -1, dated the Scrap Date, with the posted scrap number as its document number and the request's Reason Code.
Maintenance and pre-flight orders that are still Open, not started, are cancelled: there is no point servicing a unit that is leaving the fleet.
If the unit is linked to a fixed asset that has not been disposed of, a disposal line dated the Scrap Date goes on the FA G/L journal (when the depreciation book posts disposals to the general ledger) or the FA journal (when it does not), on the batch set up on Rental Setup. It is created, not posted: your accounts team checks and posts it as usual.
The request then moves to Posted Scraps, together with any approval entries.
With an approval workflow
If you switch on the Scrap Request Approval Workflow (see Approvals), a request must be approved before it can be processed:
- Select Send Approval Request. The status becomes Pending Approval and the request is locked. The units stay blocked from booking and shipping while it waits.
- Cancel Approval Request withdraws it and returns it to Open.
- Once approved, the status is Released and Process becomes available. Selecting Process on a request that still needs approval, or is waiting for it, stops with a message saying so.
- Reopen returns a released request to Open so it can be changed or deleted.
Scrapping from a maintenance order
Sometimes the decision comes during maintenance: the unit is stripped down and it is clear it is not worth repairing. Select Create Scrap Request on the maintenance order. The request records the maintenance order number.
When the request is processed, that maintenance order is posted first, with the work done so far, so the parts and labour already spent stay on the unit's record. Tasks not done are dropped and no certificates are issued. Then the unit is scrapped as above. The Posted Scrap shows both the maintenance order and the posted maintenance order it became. If the request is rejected or deleted instead, the maintenance order is left as it was.
Posted Scraps
Search for Posted Scraps to see every processed request. Each one shows the request it came from, the Scrap Date and Reason Code, who asked (Requested By), who processed it and when (Processed By, Processed At), and the maintenance order and posted maintenance order if it came from one. The Approvals action shows who the request was sent to and who approved it.
Its Units list records, for each unit:
- Fixed Asset Outcome: Disposal queued on the FA journal, Disposal queued on the FA G/L journal, Fixed asset already disposed of, or No fixed asset.
- Disposal Journal Template and Disposal Journal Batch: the journal the disposal was queued on, so the accounts team know where to find it. Blank when nothing was queued.
- Rental Ledger Entry No.: the scrap entry written on the rental ledger.
When the accounts team posts a disposal
Sometimes the disposal starts in finance: a fixed asset is sold or written off from the FA journal, the FA G/L journal, or a sales invoice with a Fixed Asset line. When that disposal is posted in the asset's default depreciation book (the book Business Central picks for a new journal line), Essential Rental retires the linked unit for you if it safely can:
- Sold, with a Sale entry on the rental ledger, when the disposal brought in money (it carried proceeds).
- Scrapped, with a Scrap entry, when it did not.
It only does this when the same checks as a scrap pass. When they do not (for example the unit is on hire, booked, in transit or on a scrap request, has a maintenance order in progress or completed, or you use the scrap approval workflow, so a person should decide), the accounts posting still goes through and the unit is left as it is, to show on the Fleet and Asset Mismatches list. Cancelling a disposal later never puts a retired unit back into the fleet.
Fleet and Asset Mismatches
Search for Fleet and Asset Mismatches, or choose the tile of the same name on the Role Centre, which turns red when there is anything on it. It lists units whose rental status and fixed asset disagree, in two kinds, shown in the Problem column:
- Asset disposed but unit still in the fleet: the fixed asset has a disposal date but the unit has not been retired, usually because the accounts posting could not retire it. Select the line and choose Create Scrap Request once the unit is free to go.
- Unit retired but asset still on the books: the unit is Scrapped or Sold but its fixed asset has not been disposed of and no disposal is waiting on a journal. This also catches a queued disposal line that was deleted by hand.
The Rental Item and Fixed Asset actions open the unit and its asset.
Related pages
- Rental Items: Create Scrap Request on the card and the list, and the Scrapped and Sold statuses.
- Maintenance Orders: scrapping a unit part way through maintenance.
- Approvals: the Scrap Request Approval Workflow.
- Lost Items: for a unit that never came back from the customer.
- Rental Setup: the scrap number series and the disposal journals.
- Role Centre: the Scrap Requests and Fleet and Asset Mismatches tiles.