This activity is used when the customer wants to make an exchange of the rental assets sent out. This could happen if the asset has broken down or is due for scheduled maintenance. There can be other or several reasons as well. Then you need to send the customer a replacement.
This activity can also be used to create a replacement customer order to send the replacement parts to the customer. You need to handle the replacement customer order to deliver the replacement parts either from inventory or by supplying from internal or external supplier. If the original parts have been supplied from a site belonging to the same company or a different company compared to the demand site, you might want to request the replacement parts to be sent to the external customer from the original supply site. At this instance you need to manually create a replacement order against your original purchase order in the demand site and manually peg it to the external replacement customer order and proceed through the flow. But in case if you set the supply code of the external replacement customer order to Int Purch Trans or Purch Order Trans, it will create a new rental contract with a new purchase order at demand site and when you send this purchase order to the supply site, it will not be identified as a replacement order request for the supply site.
You also need to handle the customer receipt manually to get the exchanged parts back from the customer.
Managing the rental and the financial control of the replacement order line will be handled by the original rental number which corresponds to the original customer order line.
Note:
The original customer order must be at least partially delivered to the customer.