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Coupa Success Portal

Equipment Rental

Equipment Rental

Equipment rental, also called plant hire in some countries, is a service industry providing machinery, equipment and tools for a limited period of time to final users, mainly to construction contractors but also to industry and individual consumers.  Operational complexity around changes in requirements are very common in the space as different factors can influence project timelines that may have not been accounted in the initial estimate.  For example a purchase order was raised for a two day hire at daily rate of $X but then equipment had to be retained for two weeks at weekly rate $Y which is lower than original rate and is applied to the full duration of the rental.  There are a couple ways to handle these type of changes in Coupa:

1.  Change Orders

1. Customer orders hire equipment. 

2. Each change is requested via change request process, approved and revised purchase order issued to supplier. 

3. Supplier invoices at correct rate for latest revised change order.

4. If already invoiced and change order comes after then supplier invoices for additional rental period and then provides a credit against original invoice

2. Contract Backed Invoices 

1.  Create a contract for each rental period agreement

2.  No purchase order issued.  Contract serves as approved document to receive rental equipment

3.  Supplier invoices and refers to contract as backing document

4.  Invoice goes through approvals to confirm correct charges

5.  Spend against contract is tracked through duration of the project

 

 

 

 
 

 

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