How to do setup and process for loaned products in Sage X3

By | August 30, 2021

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 function please navigate to: Setup > Sales > Document type > Order types

Fig 1 : Sales order types screen

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 below path.                      

 Navigate to: Setup> Sales> Entry transactions> Orders for the loan orders and Deliveries for the loan deliveries.

Fig 2 : Sales order transaction

The setup will be same for Delivery transaction as shown in above fig for order transaction.

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. Then after defining the customer location type, clicking the Create location button will create a new location for the location type specified.

Fig 3 : Location type

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.

Fig 4 : Product

In Product-site, Management tab, Location management 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 have a loan location in it.

Fig 5 : Customer
Fig 6 : Customer

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.

Fig 7 : Sales order

Create a delivery against above sales order. When the delivery is validated, the product leaves the Internal location to the Loan location.

When the loaned product is returned, a new loan return can be processed to move the product from the loan location to the internal location.     

With the help of above setup user can successfully do the process for the same.