How to setup and process products loaned to customers in Sage X3?

Loan orders are for products that shipped to customers that may return the product by a defined return date or may keep the product and be invoiced for it later. For example, an equipment might be loaned to a Business Partner for a special event and they will return it when the event is over.

When working with loan orders, it is important to identify specific loan information in regards to transaction entry types, locations, and customer and product information.

To enter orders corresponding to the loaning of products, we must have at least one order type defined with the Loan category. The Loan order type is defined through the Sales order types (GESTSO) function in the Setup, Sales.

Defining the order type as a loan type, the system will allow to assign a sequence number counter (Setup, General parameters, Sequence number definition, Structures) to loans different from normal orders.

In addition to defining a Loan order type, we need to define entry transactions for orders and shipments that are defined with a category and delivery type of Loan or All Categories/All Types.

Entry transactions are created in Setup, Sales, Entry transactions, Orders (GESSLC) for the loan orders and Deliveries (GESSLD) for the loan deliveries.

When delivering a loan order, the internal stock is moved to a BP location. It is therefore necessary to define at least one Customer location. This can be setup in Common data, Product tables, Location types (GESTLO). Then after defining the customer location type, clicking the Create loc. button will create a new location for the location type specified.

When creating products and customers, there are specific settings to be defined in order to manage loans correctly for the products and customers.

In the Product function, the Loan authorized check box under the Sales tab needs to be checked.

In Product-site, Management tab, Location management needs to be checked.

In the Customer record, Commercial tab, Loan authorized box needs to be checked and the Ship-to customer must has a loan location in it.

When processing a loan order using the GESSOH function, a normal order can be entered but the type must be a loan type. The OSTLND general parameter specifies whether the loan order total is included in the customer’s order total, which can impact the customer credit limit. Also, when allocating the product, it must be allocated from an internal location. Then once processing the delivery, the type must be a loan type.

When the delivery is validated, the product leaves the Internal location to the Loan location.

and when the loaned product is returned, a new loan return (GESSRL) can be processed to move the product from the loan location to the internal location. 

Anonymous
  • We'd like to use this for consignment inventory that we place at a Customer's site. As far as I can tell, Loan Orders don't allow us to deliver an amount (40,000lbs) to Customer site (loan location), then invoice based on customer's reported usage for a period (eg. 27,000lbs for a month).  The loan order function assumes that the invoice quantity is the same as the delivered quantity (40,000lbs). This doesn't work for us.