Service centers often buy back equipment for various reasons: sometimes repairs are more expensive than the device itself, so it is more profitable to buy it back and repair it in-house; sometimes working parts are needed for other orders; sometimes the client simply wants to get rid of old equipment; and there are also cases of trade-ins, when the old model becomes part of the payment for the new one. To correctly reflect the purchased asset in accounting, the Orderry provides two simple ways to register it.
Choose the method that best suits your use case: if the asset is intended for resale, convert it into a product. If you plan to rent out the asset, it is more convenient to use the second method without converting it into a product.
Method 1. Converting an asset into a product
1. Go to the asset profile.
2. Click Actions > Convert to product.
To do this, the “Can convert assets to products” right must be enabled.
The supplier will be specified as the client who owns the asset.
3. In the Warehouse field, specify the warehouse where our converted asset will be added.
4. Select from existing products or click Create product to create a new one.
In the receipt window, the asset serial number will be copied to the new product, as the asset can only be converted to a serialized product. In the purchase price field, specify the cost of the purchased asset and click Add.
5. If necessary, check the Pay from account checkbox to immediately settle with the client.
6. Click Convert and make the payment.
After the asset is converted, it will be written off, and a new unit of product will appear in your Inventory. The client order in which this asset was added can be closed.
Method 2. Changing the asset owner
1. Go to the asset profile.
2. In the Owner field, select We and specify which warehouse to add this asset to.
3. Save the changes.
If necessary, you can immediately pay the client for this asset. There are two ways to do this:
Create an expense in the account. To do this, go to the Finance > Transactions page and create an expense from the appropriate account. Specify the former owner of the asset as the client, and in the comments, you can write that this is a payment for the redemption of the asset.
Create an expense in the client's profile. To do this, go to the client's profile, click on the “Payments” tab, and create an expense. Select the desired cash register and add a comment with the reason for the payment.
As a result, the asset will become your property. The client's order in which this asset was added can be closed.
After that, you can choose further actions depending on your needs:
Restoration or repair – restoration of operability for further sale or rent.
Use of parts – assets/products can become a source of components for other orders.
Trade-in – old equipment can become part of the payment for a new model.