Why loan stock deserves a dedicated process
Providing a replacement device while the customer’s equipment is being repaired—notebook, smartphone, professional tool, or industrial component—is a widespread commercial lever in Switzerland. From a balance-sheet and accounting perspective, however, those assets have not “left” the company fleet: they remain owned by the SME and circulate off-site, often without the same attention given to the main warehouse.
A disorganised workflow creates inventory gaps, disputes over return condition, difficulties at year-end close, and, in the event of a loss, insurance uncertainty. Swiss accounting rules (Code of Obligations and GAAP/FER practice) require that material movable assets be identifiable, valued truthfully, and that commitments to third parties be documented—even when no sale is involved.
This guide explains how to structure registers, contracts, and journal entries for courtesy equipment, in the typical operating context of a repair or technical support SME.
Gratuitous loan for use, free replacement, or rental: what changes
Before opening new accounts or warehouse labels, align the commercial offer with the legal type of relationship. The distinction affects invoicing, VAT, credit risk, and provision of the asset.
| Arrangement | Transfer of ownership | Typical accounting | VAT (guidance) |
|---|---|---|---|
| Gratuitous loan for use | Remains with the lender (Art. 305 CO) | Asset in fixed assets/inventory; analytical movement “on loan” | No taxable supply if free and without hidden consideration (Art. 18 VAT Act) |
| Courtesy included in the repair contract | Unchanged | Cost of service; courtesy fleet depreciated as fixed assets | Taxable repair supply; courtesy ancillary if not itemised separately |
| Separate rental / “depot fee” | Unchanged (lease) | Rental income; asset in tangible fixed assets | Leasing of movable goods generally taxable (check exceptions) |
| Temporary substitute sale with buy-back | Temporarily to the customer | Sale and return to stock—not recommended except structured trade | Two distinct taxable transactions |
For most workshops and service centers the cleanest form remains a written gratuitous loan for use, with a dedicated inventory and no invoicing for the loan unless penalties or rentals are expressly provided for.
Physical inventory and register of loan issues
The courtesy fleet should be treated as a subset of operating assets, not as anonymous consumables. Two-level tracking—accounting warehouse and operational register—reduces year-end variances.
Minimum data per unit
- Internal inventory number and barcode or QR code
- Make, model, serial number, and status (available, on loan, in repair)
- Acquisition value, date placed in service, and useful life for depreciation
- Associated accessories (charger, case) with issue checklist
Movements to record
- Issue: customer, date, repair order reference, visual condition
- Return: checklist comparison, any damage, decision on charging
- Internal transfer between sites or technicians with responsible person
- Disposal for obsolescence or theft with protocol and internal assessment
At year-end, perform a physical count of on-site stock and reconcile the “on loan” list with signatures or digital documents collected during the year. Units not returned beyond the internally defined threshold (for example 90 days after work completion) should trigger a formal reminder and, if necessary, an assessment of receivables from the customer for failure to return or compensation for value.
Liability toward customers: contract, custody, and damage
Under a gratuitous loan for use the customer—the borrower—must use the asset in accordance with the contract, not transfer use to third parties, and return it at the agreed time (Art. 306 and 309 CO). In case of deterioration or loss attributable to them, they are liable for compensation (Art. 97 CO); if they use the asset differently from what was agreed, they may also be liable for force majeure events (Art. 306 para. 3 CO). The loan agreement and handover form should specify: maximum loan duration, permitted use (professional only or private as well), prohibition of sub-lending, obligation to report faults immediately, and the amount of participation in damage or “deductible” in case of negligence.
For the repair relationship, the rules on agency or contract for work apply in parallel (Art. 394 et seq. and 363 et seq. CO): the SME keeps photographic documentation of the customer’s asset and of the substitute on issue, so as to separate pre-existing damage from any caused during the loan. In a dispute, chronological evidence weighs more than the technician’s recollection.
Insurance: check whether the company liability policy and contents cover assets temporarily with third parties; an extension or a specific policy for fleets in circulation is often required. Theft and liquid damage to courtesy laptops are among the most frequent claims—excluding them in writing in the contract does not always remove reputational risk, but it clarifies expectations.
Accounting in SMEs: fixed assets, inventory, and analytics
Classification depends on value and nature of the asset. Small repeatable accessories may fall under consumables; devices and machines reusable for years should be capitalised as tangible fixed assets and depreciated on a straight-line basis over the estimated useful life (often 3–5 years for courtesy electronics, unless accelerated wear is documented).
| Event | Indicative entry | Note |
|---|---|---|
| Purchase of courtesy fleet | Debit fixed assets / Credit suppliers or bank | Input VAT deductible if subject to tax |
| Issue on loan for use | No exit from balance sheet total; possible analytical warehouse adjustment “loan” | Off-balance tracking or memo account if company practice provides |
| Annual depreciation | Debit depreciation / Credit fixed assets | Pro rata temporis in year of acquisition if material |
| Charge damage to customer | Debit receivables / Credit compensation income or reduction of repair costs | Sales document if taxable; reconcile with repair order |
| Loss from unrecovered theft | Debit loss on fixed assets / Credit fixed assets (net residual) | Police report and insurance copy in file |
| Security deposit received | Debit bank / Credit other liabilities (liability) | Not revenue; repaid on return of asset |
SMEs with simplified annual accounts (for example without notes, where Art. 959c CO allows) must still comply with principles of proper presentation of accounts, in particular completeness and clarity (Art. 958c CO): in the notes or, if notes are not prepared, in the balance sheet or income statement, a brief description of the loan operating fleet and custody policies helps auditors and banks interpret stock and receivables. Accounting software such as Accountex can link the repair order to the substitute’s inventory number, maintaining an audit trail without duplicating balance-sheet capitalisation on every issue.
Recommended operational workflow
Integrating the loan into the repair workflow prevents the register from remaining an Excel sheet updated “when there is time”.
- Ticket opening — Verify whether the customer is entitled to courtesy (warranty, SLA, commercial policy).
- Unit assignment — Scan on issue, digital signature or PDF with conditions; block unit in the management system.
- During repair — Automatic reminder mid-period; escalation if the customer’s repair is delayed.
- Return and closure — Checklist mirroring issue; possible damage invoice or deposit refund.
- Quarterly review — Open loans list, impairment assessment on obsolete units still on the balance sheet.
Tax and deductibility: points to watch
Profit / income tax
Depreciation and losses on operating assets are generally deductible if the asset serves the profit-making activity. Compensation for damage to the courtesy fleet is included in taxable income. Deposits and transitory items do not affect profit while they remain balance sheet liabilities.
VAT
Gratuitous loan: as a rule no VAT invoice on the loan, in the absence of consideration (Art. 18 VAT Act). Separate rental: apply the standard rate to the fee. Temporary export to foreign customers: assess place of supply and customs documentation only if goods cross the border in a material way—a rare case for local courtesy.
Compliance checklist for management
- ✓Standard loan-for-use contract and issue/return form aligned with the Code of Obligations, retained for at least ten years with accounting records (Art. 958f CO).
- ✓Numbered inventory reconciled at least once a year with fixed assets on the balance sheet.
- ✓Internal policy on maximum loan duration, deposits, and damage charging communicated to front-desk staff.
- ✓Insurance cover verified for off-site assets; procedures in case of theft.
- ✓Link between repair management system and accounting to avoid duplicate purchases or missed disposals.
A well-governed courtesy fleet supports customer satisfaction without eroding net assets. Investing a day in processes and records often pays off more than buying additional replacement devices.