NavigateERP for African business

Rent out an owner's asset (managed assets)

Hire out equipment, vehicles or property that belong to someone else - and pay them their share.

Steps

  1. Add the owner as a supplier.
  2. Go to Lease & rentals → Rental assets → Add an owner's asset: the asset's name, serial or registration, the owner, your management fee (%), whether costs on the asset are charged to the owner, and its rental classification, meter and rates.
  3. Rent it out on agreements and bill it exactly like your own assets.
  4. Record repairs, fuel and other costs on it as usual - coded to the asset.
  5. At the end of a period go to Lease & rentals → Owners & payouts, choose the asset and the dates, and read the statement: rentals billed − your fee − costs charged to the owner = the owner's share.
  6. An approver clicks Settle (Dr owners' share 5101 / Cr payable to asset owners 2320). Someone else then clicks Pay with the money account.

Good to know

  • The asset is not in your register or on your balance sheet, and it is never depreciated by you.
  • Each period is settled once per asset; if the fee and costs are more than the rentals, nothing is settled - recover the difference from the owner.
  • What you keep is the fee (plus costs you chose not to charge the owner): the profitability report shows it.
  • On each lease’s statement and profitability, the owner’s share of a settled period is a cost of the leases the asset earned on in that period - by the rentals each billed on it (else by days on hire) - even when the asset came back before the period ended.