LeasePak Module Listing

Contents

• Base System
  • Base System Modules
  • JULE Fund Enhancements
    • JULE Fund 1993
    • JULE Fund 1994
    • JULE Fund 1995
    • JULE Fund 1996
    • JULE Fund 1997
    • JULE Fund 1998
    • JULE Fund 1999
    • JULE Fund 2000
    • JULE Fund 2001
      
      
• Optional Modules
  • Operational Business Types
  • Portfolio Processing Options
  • LeasePak Interfaces

Base System

The base system of LeasePak provides all functionality required to account for and manage a lease and loan portfolio, regardless of size. Among its many features are:

• Flexible cycle billing with user-specified cycle periods,
• Flexible payment schedules including monthly, quarterly, semi-annual, annual, skip payments, and uneven payments,
• Group billing which consolidates several leases for one customer into a single bill,
• Handling of precomputed and simple interest and floating rates,
• Support for interest bearing loans with several alternative principal/interest repayment methods,
• State, county, and city sales tax collection and reporting as well as federal highway use tax and property tax assessment collection and reporting capability,
• Tracking of depreciation benefits on an individual asset basis with the ability to isolate these benefits for a specified subset (e.g., all assets placed in-service during the previous fiscal year),
• Solid audit controls with transaction journaling, dynamic software restart, and access and update restrictions based on operator security access,
• Database fully defined for customized reporting using any of several reporting tools,
• Flexible portfolio, company, region, office, and dealer/vendor reporting with detail General Ledger accounting available at the office level.

Base System Modules

Clients who purchase LeasePak UX receive several modules which enhance the functionality of the base.

Advanced Cloning

Client cloning allows users to clone client relationships from like client relationships; for example, clone a lessee from an existing lessee. This functionality covers lessees, vendors, customers, investors, guarantors, brokers, and lenders.

Disburse Upfront Sales Tax

The Disburse Upfront Sales Tax module allows the user to disburse upfront sales tax amounts through the end of period processing.

If the module is activated, then Add Asset [U0101A], Delete Asset [U0101D], Change Asset [U0120], Asset Maintenance [U0210] and Rebook [U0116] will create an additional G/L transaction debiting Accounts Payable and crediting Use Tax Payable for the amount of the upfront sales tax. Also, records will be created for tax disbursal. When an asset’s upfront tax amount is changed, correcting G/L and Tax entries will be made.

Lease Extension

The Lease Extension module provides the ability to extend or renew a lease at maturity. The extension/renewal may be structured with a specified term or month-to-month as follows:

Establish a new contract receivable, residual, unearned income, term and payment schedule. Income for the extended/renewed lease may be recognized using either the original accrual method or specifying a new method. With this extension method, a portion of each lease payment is recognized as income.

Establish a new payment schedule with or without a specified term. Each lease payment reduces the residual value of the original lease until it is zero, at which time all subsequent lease payments are recorded as income.

The module provides an easy one-step transaction requiring entry of only the data necessary to effect the appropriate changes while retaining the original lease number and all existing data elements. There is no interruption in accounting (book and tax) or customer billing.

Lease Extension Reversal

The Lease Extension Reversal module provides the ability to reverse the extension of an extended lease.

Property Tax Description

The Property Tax Description module allows the user to enter a description code for each property tax and federal highway use tax (FHUT) assessment, via Assessment Update [U0105] or Group Property Tax Update [U0106]. The codes are user-maintained through Custom Code Update [U0722].The description will be printed on all Property Tax and FHUT reports.

Quick Book

This module serves the following functions:

• User security access can be set up for booking a lease,
• Data entry can be minimized when application is added using the Application Tracking module.

Once an application is approved and validated for booking, the user has the flexibility to book assets and leases automatically. This module will default information from the pending assets and application onto Add Asset [U010l] and Book Lease [U0101] with the following exceptions:

• Payment information in Book Lease [U0l01].
• Disburse check information in Book Lease [U010l].

If an error occurs during the booking process, the error message will display and the information must be corrected using the Application module [U080l].

Reverse a Payable

Reverse a Payable module allows payables to be reversed (or checks to be voided).

Sales Tax on Assessments

The Sales Tax on Assessments module allows sales tax to be charged on assessments and/or recurring charges. The user can indicate whether a state requires that sales tax be charged on specific assessments and/or recurring charges. If sales tax is to be charged, then all tax rates set up for the location according to the tax type of the asset are used in the sales tax calculation.

User Defined Toolbar

This enhancement adds a graphical utility for quick access to often used functions. The User Defined Toolbar allows users to create menu shortcuts for menu options and allows the user to associate them with various icons. The toolbar is customizable at each individual PC that is running LeasePak.

JULE Fund Enhancements

• 1993
• 1994
• 1995
• 1996
• 1997
• 1998
• 1999
• 2000
• 2001

The LeasePak User Group administers an annual fund to which members may contribute. The JULE Fund finances popular enhancements to LeasePak. All contributing members vote on which enhancements should be sponsored by the fund each year and participate in defining requirements for them. Once the package of enhancements is coded and tested, all members receive it.

New clients purchasing LeasePak receive existing JULE Fund enhancements included in the base system. In order to receive future JULE Fund enhancements, the client must contribute to the fund.

1993 JULE Fund Enhancements

Enhanced Payments

When an invoice or lease number is entered, Enhanced Payments displays not only the oldest open invoice for that lease, but also all other open invoices for the lease in a scrolled area on the screen. This facilitates full or partial payment of multiple open invoices at once. When a customer/group number combination is entered, Enhanced Payments displays all open receivables for the customer/group, broken down by lease.

Enhanced Payments offers the choice of applying an overpayment on a lease to prepay in addition to the choice of applying overpayments to suspense. The prepay choice is not available at the customer/group level.

Enhanced Payments may not be used for payments on interest bearing loans.

IBL Principal Adjustment

The Interest Bearing Loan Principal Adjustment module allows increased flexibility in adjusting the principal balance on non-asset-based loans. (On asset-based loans, adjustments are performed through Asset Add-on or Payoff/Termination.) On LeasePak, non-asset-based loans are defined as interest bearing loans with a single asset per loan. Principal may be written up or written down at any time during the billing cycle. Principal and interest G/L adjustments are created at the time the write-up or write-down is entered. Interest can be accurately calculated and billed on a fluctuating balance. The balance may even be written down to zero and billing temporarily discontinued while the loan remains in active status.

Retain Invoice Numbering During Change Lease Key

Without this enhancement, LeasePak assigns a new invoice number to any invoice reversed during Change Lease Key [U0114] processing. With this enhancement, the original invoice number is retained.

Transit Tax

This enhancement has the ability to track a taxing jurisdiction below the state/county/city levels (example transit district, school district, etc.). This fourth level tax is reported in the USe tax Disbursal Reports [U0449A, B, C, D and E]

1994 JULE Fund Enhancements

Advanced Invoicing

Invoices for a lease can be produced up to 120 days before the due date, if a lessee needs extra lead time. Such advanced invoices have no effect on the General Ledger until they reach their accrual dates, a maximum of 30 days before the due date. No assessments can be charged on an advanced invoice. Any payment received before the receivable accrues is treated as a pre-payment. A field on the LEASE FORM code table [U0721] governs the number of days before the due date advanced invoices are produced

Delayed First Payment

This enhancement adds a LEASE DATE AFFECTS YIELD parameter at the portfolio level. With the parameter set to Yes, the initial accrual period for level yield leases billed monthly in arrears begins on the Lease Date rather than the Commencement Date. This is used when accrual should begin early, extending the initial accrual period or, from another perspective, delaying the first payment. The delay's effect on yield is calculated and displayed after the Lease date is entered. It has no effect on invoicing the lessee. (This enhancement functions like "odd first payment" on an HP calculator.)

Disburse Commission Check to Vendors

A new disbursement type code, COMV, may be used when some or all of the commission is paid to the vendor, not to the broker. When COMV is entered on a Disburse Check screen, the vendor's name and address default as payee.

IBL Batch Payments

This enhancement allows payment for interest bearing loans to be processed during a batch payment run, if the Batch Payments and Loan Accounting modules are purchased. Interest adjustments on IBLs are automatically made to reflect early or late payments. However, overpayments and principal paydowns are not supported, nor are interest adjustments due to principal changes in these cases.

Interactive Batch Payments

This enhancement is used in conjunction with the Batch Payments module. It allows the user to initiate batch payment processing for a portfolio interactively by choosing the Batch Payment update [U0305] on the Predefined Cycles menu. Without this enhancement, batch payments can be processed only through End of Period.

 

1995 JULE Fund Enhancements

Enhanced Payment Hierarchy

This new enhancement allows the Enhanced Payment option of the Payments update [U0102], to apply payments based on a Payment Hierarchy. The payment hierarchy is assigned in the Assessment Customization option of the Portfolio update [U0212], and will apply the payment made from the oldest invoice to the most recent.

Master G/L Reconciliation Report

The Master G/L Reconciliation Report will reconcile as many G/L accounts as possible within LeasePak and, when an out-of-balance condition is found, provide available detailed information to aid in researching the account.

The Master G/L Report contains two reports. The U0460A reports out-of- balance transactions.The U0406B will display the account that caused the out of balance as well as display the transactions during the first two days the report run, unless G/L related activities have occurred.

 

1996 JULE Fund Enhancements

Add Comment to Transaction Record

LeasePak allows the user to add comments to certain general ledger transactions, creating an audit trail for a specified lease. The comments may be entered from within the following updates: Payments [U0102], G/L Adjustment [U0121], and IBL Principal Adjustment [U0125]. The comments are viewed in the following reports: Daily Transaction Journal [R0405], Cash Receipts Journal [R0411], and the Account Payment History [R0909].

Alternate Tax Basis

This enhancement allows the user to add a new cost basis for personal property taxes as well as allow the tax basis for depreciation to be different than the original acquisition cost entered.

Default Payment Amount

The Default Display of Payment Amount Y/N switch in the Miscellaneous Customization option of the Portfolio [U0212MI] update, will allow the user to set parameters to default the TOTAL AMT due or to manually enter the payment amount in the Payment and Enhanced Payment options of the Payment update [U0102].

Ten New Lease Status Codes

This enhancement includes Ten New Lease Activity Status Codes. The status codes include four Suspended Earnings codes, two Charge-off codes, two Payoff codes, and two Prior Active codes. All codes must be established and defined in the Activity/Bankruptcy update [U0709].

Batch Enhanced Payments/Order Option

This enhancements incorporates two new methods for redefining the payment hierarchy in Enhanced payments and /or Batch Payments. The first method, affecting only Batch Payments, is part of the Jule Fund enhancement. The second method, affection both Enhanced Payments and Batch Payments is a LeasePak UX base system enhancement only. Note that while similar in concept, the two methods affect the payment hierarchy in different ways.

 

1997 JULE Fund Enhancements

Exclude Unguaranteed Residual for Payoff Quote

A new field has been added to the Payoff Quote update [U0213]. The new field Exclude Unguaranteed Residual Amount, will allow the user the ability to exclude the unguaranteed residual amount in the calculation of the Payoff Quote when the payoff method is NPV.

G/L Lessor Income: MTD, YTD, LTD

LeasePak will allow the Sequential Updates [U0411] to update the new G/L Income Month to Date, Year to Date and Life to Date fields in the Lease Inquiry Report [R0905]. When the G/L Lessor has been selected to run during End of Period, LeasePak will read through the Monthly Transaction (RTX) file for each lease and add and subtract the debits and credits in order to calculate the three new fields in the Lease (RLS) file.

Reverse Late Charge Notification

The Payment and Enhanced Payment [U0102] updates will now warn the user if the accrued or outstanding late charges must be reversed for a lease when a payment is being made to a lease that is back-dated before the grace period. The new functionality will be based on the effective date entered in the Payment and Enhanced Payment updates in LeasePak.

Track Prior YTD Lease History

This enhancement will allow LeasePak to track prior year to date information for selected lease fields. The End of Year process will transfer the data from the Lease table (RLS) to the new Year to Date History (RYH) table. The YTD history of the lease will be stored per lease per year. The assets and Notes Payable YTD data will not be saved.


Warning In-Service Date

This enhancement will warn the user when the In-Service Date of the new or cloned asset crosses a previous tax year boundary. This new warning message is informational only and will appear when the asset is being added through the New Lease Add Asset [U0101] and the Application Add Asset [U0801] updates in LeasePak.

 

1998 JULE Fund Enhancements

Change Password

LeasePak now allows regular users the ability to change their own client passwords. The new functionality will be based on the users Security [U0706] record and several switches have been added to allow certain users the ability to Change Other User’s Passwords. Additionally, by changing the user’s client password, the encrypted UNIX and Sybase passwords are modified as well.

1999 JULE Fund Enhancements

Advance Invoicing

Leases can now be set to continue advanced invoicing from initial term through renewal. The switch Advanced Invoicing (Y/N) in the Automatic Lease Extension [U0108] update is used to activate the advanced invoicing.

Data Entry Requirements

Application [U0801] now includes a new function, Data Entry Requirements, that can be set up to validate a set of fields according to the application status. Using the feature requires the creation of a Sybase stored procedure to specify the validation rules. Please contact your Product Support Representative for more information.

Depreciation in Lease Extension

Changes to Book Depreciation and Book Salvage Value can now be made at time of lease renewal for all assets belonging to a particular lease. Lease Extension and Automatic Lease Extension [both U0108] include this new functionality, which applies to leases being extended from operating to operating or from finance to operating accounting methods. This enhancement works in conjunction with Termination: Change Book Depreciation for all Assets on Lease described below.

IBL Inquiry Report

A new report - IBL Inquiry [R0927] - has been added to LeasePak. This report features a detail option that will display all principal changes, interest changes, interest adjustments, mid-term adjustments, and invoice calculations for the selected IBL. The detail option is controlled with the IBL Invoice Detail (Y/N) switch in the Custom General [U0712] update.

Month End Accrual Invoicing

This enhancement will allow LeasePak to accrue and invoice up to the actual month end when End of Month is submitted prior to the actual end of month day. When End of Month is submitted prior to the end of the month, LeasePak allows for a five day window in which End of Period can be submitted, the process will accrue and invice leases prior to the actual month end.

Off Lease Book Depreciation Methods

Changes to Book Depreciation can now be made at time of lease termination for all assets belonging to a particular lease. This new functionality is controlled through the Change Depreciation at Term (Y/N) switch in the Miscellaneous Customization option of the Portfolio [U0212] update. Finance assets associated with the lease will be converted to operating accounting methods.

NOTE: This enhancement does not function if the Vehicle Finance module is in use.

Reversal of Sale of Asset from Inventory

Now sales of assets through the Sale of Asset in Inventory option of the Payoff [U0103] update can be reversed. A new option, Sale of Asset in Inventory Reversal, has been added to the Payoff options menu.

When a sale of asset reversal is performed, the asset is put back in inventory, all G/L transactions from the sale are reversed, cash is credited accordingly, and a new suspense item is created to replace any suspense cleared during the transaction. This reversal is not possible after the Historical Payment UPD/RTX Clean-Up has been run through End of Period.

Suspense Item Accounting & Reporting

This enhancement incorporates several changes to the Suspense functionality, including: (1) suspense items can now be associated with applications; (2) selection criteria for the Suspense [U0109] update and the Suspense Review [U0203] report now include Application and Lessee Number, and these fields, along with Lessee Name, Customer Number, and Group Number are now displayed in both the update and report; (3) suspense items can now be partially cleared through the Payments [U0102], Payoff [U0103], and Book Lease [U0101] updates; and (4) a new report, Suspense Item [U0208], will display changes made to suspense items.

2000 JULE Fund Enhancements

Automatic Status Change from NMAT to NPMT

LeasePak now supports the ability to automatically change the status of an NMAT, CSA type lease to NPMT when all balances, receivables and assessments to the lease are zero and the final accrued to date has been processed.
A new module in End of Period, Paid Off CSA Leases [U0429] will display the leases status change. Selection of this module can be made via the End of Period Customization option in the Portfolio [U0212] update. This new functionality will be driven by a new Portfolio [U0212] switch Automatic Payoff of CSA NMAT leases (Y/N), in the Payoff Customizations option.

Check Disbursal Report

A new report Check Disbursal [R0209] will be generated through the End of Period module. This new report will contain detailed information regarding all checks disbursed within LeasePak containing any disbursement type.
This new report will also work in conjunction with the new Multiple Asset Disbursal enhancement described below.

Multiple Asset Disbursal

LeasePak now has the ability to disburse all asset checks by lease in the Book Lease [U0101] Check Disbursal screen. LeasePak will list all assets tied to a lease with the asset cost for disbursal. The user can change the defaulted disbursal amount to any of the listed assets.
This enhancement works in conjunction with the Check Disbursal [R0209] report described above.

Payoff Customization: Take Income on 'PRN' Payoff of Suspended Leases

A new switch has been added to the Payoff Customization option of the Portfolio [U0212] update. The "Take Income on 'PRN' Payoff of Suspended Simple Interest Lease (Y/N)", will allow the user to choose if suspended income will or will not be taken for simple interest leases using the 'PRN' payoff method.

Payoff Customization: Take Income on 'OPR/INV' Payoff of Suspended Leases

Two new field options have been added to the Payoff Customization option of the Portfolio [U0212] update. The 'Take Income on 'OPR' Payoff of Suspended Operating Lease (Y/N)' and the 'Take Income on 'INV' Termination of Suspended Operating Lease (Y/N)', will allow the user to take suspended income or not from operating leases with OPR or INV methods.
Note: 'OPR' is not a valid LeasePak termination method for operating type leases.

2001 JULE Fund Enhancements

Auto Assess NSF Fee

A new field, "Automatic NSF Fee Assessment Code" has been added to the Miscellaneous Customization option of the Portfolio [U0212] update. This new option will allow LeasePak to automatically assess an insufficient fund fee when a Payment or Payoff Reversal has been processed.

Historical Rate Change Tracking

LeasePak now has the ability to track all Sales Tax rate changes at the Location [U0701] level. A new historical table RHO has been added to store all the historical rate changes.

 

Multiple Asset Maintenance Update U0230

A new update Multiple Asset Maintenance [U0230] has been added to LeasePak. This new update allows the user to update information for multiple-asset leases. Once a lease number is entered, LeasePak will display all assets that are tied to the lease. The user will have the option to select 'All' or specific assets. The fields that may be updated for the assets are the following: Address, Use Tax Code, Property Tax (Y/N), Tax Type, Allow Property Tax (Y/N) Property Tax Basis and Title Filings.

Multiple Asset Tax Waiver

A new option has been added to the Assessment [U0105] update, Multi Asset Tax Waiver, allowing the user to waive Sales/Use Tax and Property Tax for leases with multiple assets. The user may select 'All' to waive the tax on all the assets tied to the lease, or they may select specific assets tied to the lease. This new option works in conjunction with the Off Lease Billing Module and the 2001 JULE Fund module.

OPER Extension on Cash Basis

A new field has been added to Lease Extension [U0108] "Income Cash/ Accrual (C/A)". This field will allow the user to select Cash basis for operating type lease extensions therefore allowing the Book Depreciation accrual to continue during the extension period. This new option also applies to Auto Lease Extension [U0430].

Payment Labels for Off Lease Invoices

The Accounts Receivable Balancing [R0404] report has been modified to display "Type Other" and "Other" columns to list off lease accounts that have a P or Q type invoice status from a Payoff/Termination [U0103]. This new feature works in conjunction with the Off Lease Billing module and the 2001 JULE Fund module.

 

Optional Modules

Many optional modules are available to enhance LeasePak UX Users may tailor the system to meet the needs of their portfolio and to take advantage of many productivity-enhancing options offered. Additonally, LeasePak's optional modules are grouped by the following criteria:

• LeasePak Modules
• Operational Business Types
• Portfolio Processing Options
• LeasePak Interfaces

LeasePak Modules

Application Tracking

The Application Tracking module provides front-end update and reporting capabilities to follow the prospective customer and lease application through negotiation, lease structuring and credit approval. All application data is collected and stored to avoid duplicate keying at the time of lease booking. The module includes:

• Duplicate application search
• Lessee application history; pending and rejected
• Lessee/lease history; active and terminated
• Customer, lessee, guarantor credit exposure/performance
• Work schedule / note recording (follow-ups)
• Established credit line and auto-approval limits on customers and lessees
• Credit analyst approval limits
• Letter and word processing interface
• User definable lessee, application, and asset fields
• Activity, productivity and exception reporting

Automated Lease Document Generation

The Automate Lease Document Generation module allows the user to produce contract origination type documents directly from their PC. This module works in conjunction with the Application Tracking [U0801] module and Microsoft Word. Documents such as; “Master Lease Agreement”, “Lease Schedule”, “Pricing Quote” can be generated using a mail merge type function setup between Microsoft’s Word™ application and LeasePak.

This module enhances and works in conjunction with the Document List update [U0815]. The user may specify, based on the document list, the document to generate, the status and the MS Word™ template to use for the merge. All MS Word™ templates must be predefined, contain static text, and contain the mail merge “fields” that will be replaced with actual data from the current application.

Once generated, the document may be opened as a normal document file in MS Word™. The file may be printed, faxed, emailed, converted to a PDF file, etc. Please see the Document List [U0815] update for a complete list of the fields currently supported.

Attach External Files to Lease Summary

The user can now attach an external file to a particular lease number through the Collection [U1101], Alternate, or Customer Service [U1601] Lease Summary [F5] screens. The actual file is stored in a shared directory, while a record of the file and its associated lease number is stored in the RFA table of the LeasePak database up until the lease is cleared through Closed Lease Clean-Up [U0419]. File types that can be attached using this feature are Microsoft Word (DOC), MS Excel (XLS), JPEG (JPG), bitmap (BMP), and Portable Document Format (PDF).

Automatic Suspend/Charge Off

Two modules, Automatic Suspended Earnings and Automatic Charge Off, are related.

The Automatic Suspended Earnings update [U0439] is accessible at end of period if the first module is purchased. This module will automatically suspend income for leases that have been delinquent for at least 90 days. Only leases with active status or normal matured status can be automatically suspended.The Auto Suspended Earnings update allows earnings for a non- performing lease to be suspended while billing with accurate G/L reporting continues. Invoicing and accruals continue with no interruption. Internally, however, parallel G/L accounts are used to record lease payment receivables and income for suspended accounts.

When income earnings are suspended, all outstanding lease payment receivables (due after the effective date of the earnings suspension) and unbilled interest (as of the effective date) are transferred to suspended G/L accounts. Invoicing continues as normal. If earnings are reinstated for the account, the Suspended Income Accrued is transferred to the normal G/L account.

The Auto Charge Off update [U0440] is accessible if the Auto Charge Off module is purchased. This update is used to automatically terminate leases 120 days delinquent during end of month processing. Individual new leases must be coded as eligible for auto charge off, should they meet the delinquency criteria. Deferral of auto charge off beyond 120 days is possible with manual recoding of the lease’s eligibility code.

If the Sales Tax on Assessment module is purchased, sales tax that was billed but unpaid will be reversed before the lease associated with the asset is charged off. This will occur only if Sales/Use Tax is accounted for on a cash basis.

The Auto Charge Off process uses the INV lease termination method. The accrued to date of the lease will be used as effective date of the charge off and the FMV will be set to zero. Charge Off Shortage will be calculated as follows:

BOOK VALUE
+ PAYMENT OUTSTANDING
+ ASSESSMENT OUTSTANDING
+ ANY ADDITIONAL INTEREST
+ ANY FEES/PENALTIES CHARGED TO THE LESSEE
= TOTAL CHARGE OFF SHORTAGE

Batch Applications

The Batch Application [U0101]update is part of the Batch Applications module and works in conjunction with the Partial Deductions module, separately purchased modules of LeasePak. This new update will allow LeasePak to process pending application assets (RAQ) and pending applications (RAP) through the New Lease [U0101] update in a batch mode either interactively or through the back end using the lease/util options.

This update requires that the Batch Application Status field in the Miscellaneous Customization option of the Portfolio [U0212] update to be populated with the batch status based on the Portfolio.

This update also works in conjunction with the Application Tracking [U0801] module. Once the pending application/asset has passed the Batch Book Requirements, LeasePak will allow the application to be booked through the Batch Application option of the New Lease [U0101] update.

Batch Assessments

This module automatically assesses fees, taxes, or charges to leases or assets via an input file. This program will process General Ledger accounting and update other LeasePak files.

One feature in Batch Assessment, which is not a function of the base system Assessment update [U0105], is the ability to specify a payment due date for the invoice on which the assessment will appear. This will allow monthly assessments to non-monthly payment schedules. For example: a quarterly lease can be billed for assessments due in the first and second month of the quarter.

Two reports are created by the program: an exception report, [U0418A], and an audit report, [U0418B].

Batch Payment Processing

The Batch Payment Processing module provides the ability to process a high volume of lease payments remitted to one or more lockbox services. The module also allows efficient processing of "assumed" lease payments, where payments are pledged and remitted to a third party, e.g., a lender, vendor, or broker. Both payment types are processed in the non-interactive End of Period process. (The ability to initiate batch payment processing interactively is also offered as a separate optional module.)

Additionally, as part of the Batch Payment module, LeasePak will also allow for Batch Payments to be reversed through a batch input file similar to the Batch Payment file. All batch payment reversals may be run interactively or non-interactively.

Cash Control

The Cash Control module provides the ability to interactively enter multiple payments into LeasePak UX. Each group of payment entries is controlled by a batch number consisting of the current date and a unique sequential number. This module also include the Batch Payment Report Viewer [R0415] which displays the Batch Control Detail record information as well as any validation reports prior to processing the batch job. This allows the user to verify all processed and unprocessed Cash Control entries for a specific Batch Control Number. This enhancement will work in conjunction with various updates, switches and modules of LeasePak.

Collateral Tracking

The Collateral Tracking module provides tools required to track the receipt of ownership and protection documents on an asset, including certificates of ownership, UCC filings, and insurance policies. This module features flexible assignment of accounts, flexible work scheduling for each collateral clerk, all required information on the account, and recording all written and conversational communication during the process of following up for ownership documents, and flexible collateral letter preparation.

Collections Tracking

The Collection module provides a comprehensive tracking and reporting system to assist in the collection of delinquent lease payments. This module includes the flexible assignment of accounts, flexible scheduling of work for each collector, all required information on the delinquent account, and recording of the written and conversational communication between the lessee and collector, and flexible collection letter preparation.

Customer Service Tracking

The Customer Service module provides very flexible, user-controlled work schedules and a detailed Lease Summary inquiry. A customer service representative may use the work schedule to keep track of incoming requests, commitments for service, etc. The user adds and deletes items from the work schedule. Items are prioritized according to criteria established by management for all module users. From the work schedule or from any screen in LeasePak, the customer service representative may access a detailed summary of any lease in the system.

Draw-Down Application

The Application Drawdown module allows for multiple lines of credit per lessee through a Master Application. The user sets up a master application by approving an application for the full amount of the line of credit and then executing a status transfer to a special user defined status. Once the application is in this status, it cannot be booked or altered in any way.

To drawdown from this line of credit, the user clones a new application from the master application and sets the acquisition cost on the new application to the amount of the desired drawdown. LeasePak attempts to approve this application based on the line of credit balance, expiration date, customer exposure and standard credit approval rules.

Forecasting

The Forecasting module allows the user to see future cash flows, earnings, depreciation, and account balances that will be generated by a runoff of the current level of business. This information assists in the reporting required to comply with FASB Statement 96. The reports for fixed term and suspended leases include a cash report, an earnings report and an account balances report. The reports may be selected interactively for all leases, a portfolio, a company, a region, an office, or a lease.

Month-to-month extended leases are reported separately for informational purposes. The reports show monthly detail for the shorter of a user-selected number of months or until all reported items have run off to zero. The report shows quarterly and annual summary information. The reports may be produced with the time axis running horizontally, the standard reporting format, or vertically for easier transfer to a spreadsheet program.

Increased Recurring Charges

The Increased Recurring Charges module allows up to 15 recurring charges to be established. Without the module, 3 types of recurring charges may be defined. At the invoice level, up to 10 different assessments and recurring charges can be included on a given invoice.

If desired, a vendor or broker can be set up as recipient of the recurring charges payable.

Insurance Tracking Module

The Insurance Tracking module, a separately purchased module of LeasePak, is used to keep track of all insurance policies that have expired.

Accounts with an expired policy, or a policy that is about to expire may be tracked through this update until the policy is current. The Insurance update [U1301] assists in tracking insurance policies by providing several tools, including a schedule of daily work to be processed, a summary of each policy and a notebook record of the written and conversational communication between the assigned insurance clerk and the lessee.

Maturing Lease Tracking

The Matured Lease Tracking module provides a complete tracking and reporting system to assist in the collection of lease residual balance, lease renewal, and/or purchase and disposition of the leased asset. This module includes the flexible assignment of accounts, flexible scheduling of work for each clerk responsible for maturing leases, all required information on the maturing account, and recording of the written and conversational communication between the lessee and clerk, and flexible letter generation.

Multiple Banks

The Multiple Banks module allows the number of cash accounts (banks) to be increased from one to twenty.

Twenty bank accounts are added to the General Ledger, accounts 125 through 144. Some of the accounts are for specific uses. For example, 127 is for sales tax disbursal and 128 is for property tax disbursal. Most accounts may be defined by the user.

All payment/disbursal updates are modified to allow the user to indicate the bank code for the transaction.

Partial Deductions

The Partial Deductions module allows partial payment to be applied for amounts which are due at lease commencement. Without Partial Deductions, the assumption is that all or none of the advance payments due has been received. With this module, partial amounts can be applied to one or all of the following categories at lease booking:

• Amount of cash received
• Amount to invoice
• Amount to reduce A/P
• Amount to put into suspense

Asset(s) whose accounts payable is to be reduced can also be specified.

User Defined Fields/Tables

The User Defined Fields/Tables module allows the user to define 36 fields and 12 table columns for each of the following files: application, lease,

asset, lessee, customer and vendor. The purpose of this module is to be able to store data not currently carried by the LeasePak system. This module includes an edit check for entry of valid codes, numeric data, dates and dollar amounts; an input required feature; and the transfer of user-specified information from the lease application to the lease at the time of booking. This module is integrated with the LeasePak base system in that user- specified information is entered and maintained using the base system updates for entry and maintenance of application, lease, asset, lessee, customer and vendor information.

Operational Business Types

Capital Cost Allowance

The Capital Cost Allowance (CCA) module calculates and reports CCA, a Canadian tax deduction that may be claimed annually on depreciable property. It is designed to ensure that a tax entity will be allowed to recover the full capital cost of depreciable property. Therefore, cumulative deductions that may be claimed will eventually result in the entire cost of the depreciable property.

Discounting

The Discounting module provides the ability to discount lease payment streams which are then sold to investors. The lessor does not administer the sold, discounted leases, but does track them in a separate portfolio which does not affect the books of the lessor’s own portfolio.

All outstanding lease payment receivables and unbilled interest for the discounted leases sold to the investing institution are recorded in General Ledger accounts as though income on the leases were suspended. The lessor may use the Suspended Leases report [R0602] for a list of leases on discounting. In addition, the Suspended Earnings report [R0609] may be used to view the income accumulated for discounted leases.

When a discounted lease has reached maturity, the Payoff update is used to close it out. Upon close out, the amount of income collected for the lease while in discounted status is cleared against the Lessor Income General Ledger account. In addition, the status of the closed out discounted lease is changed to NPDS (Paid Discounted).

Loan Accounting

The Interest Bearing Loan (IBL) Accounting module increases the functionality of LeasePak by providing loan as well as lease accounting. This allows the financing agent to manage a varied portfolio under the control of a single operational system.

The Loan Accounting module provides actual daily-balance-outstanding interest calculations under both fixed and floating rate methods. These methods differ from other LeasePak simple interest accrual methods in that adjustments to earned interest are made due to early or late receipt of payment.

Two repayment plans are available:

• Principal plus Interest (P+I)
  This plan calls for the periodic repayment of a specified principal amount plus accrued interest. The payment schedule consists of the principal portion of the payment only. Billing includes the scheduled principal amount, accrued interest, and previous unpaid invoices.
  
  
• Principal and Interest (P&I)
  This plan calls for the periodic repayment of scheduled (fixed) amounts, as stated in the promissory note. The payment schedule includes both principal and interest. Billing includes the scheduled (fixed) payment amount and previous unpaid invoices. Although the payment amount is fixed, the interest accrued is still adjusted due to early or late receipt of the payment. Therefore, under this method, the amount of the reduction of the principal balance is the variable factor. Accordingly, the final payment is the remaining unpaid principal balance plus accrued interest. It may be different from the scheduled last payment because of the variable principal reduction.

Generally, late charges need not be calculated, as additional interest is charged automatically if the payment is not made on its due date. However, interest bearing loans may be booked which allow the assessment of late charges.

When payments are applied, interest is recalculated to the effective date of the payment. For P&I methods, this recalculated interest must be paid in full before principal may be paid. For P+I methods, any recalculated interest amount greater than the billed interest amount is billed on the next invoice. The most delinquent principal and interest payments are applied first. Prepayments may be applied as credit memos or principal paydowns, or entered into suspense. Payment reversals must be made in `most recent due’ order.

Mid-term adjustments, such as a principal balance increase, a payment schedule change, or an asset payoff/termination are allowed. Additionally, the interest bearing loan may be changed from a floating to fixed rate basis (or vice versa) any time during its term.

The Loan module also provides for changes to termination and payoff quoting and transaction processing. There is the capability to quote a payoff or payment amount as of a given date, including dates in the future. This quote serves as an inquiry feature only (i.e., no principal or interest updating should occur as a result of the quote). Also, all assumptions are shown, such as base rates (for floating rate loans) used by the quote or the method by which future payments are assumed to be paid. Two options on future payment methods are:

• All future payments are received on their respective payment due dates,
• No future payments are received.

LeasePak also calculates and displays the per diem interest for each day beyond the specified effective date of the quote.

Notes Payable

The Notes Payable module provides accounting and reporting tools needed to manage and track lease/note payable transactions. The benefits of the Notes Payable module include:

• Lease and note payable transactions reside in one database, significantly reducing reconciliation problems.
• Performance of the lease and underlying note payable may be reviewed simultaneously at any time during the term.
• All note payable transactions are processed interactively, providing up-to-the- minute balance information.

The Notes Payable module is fully integrated with the base system and is subject to all the security and control features of LeasePak. Other features of the Notes Payable module include the abilities to:

• Set up lender information and the terms of the relationship, including credit line information and interest rates.
• Set up individual notes payable drawn against the credit line, including terms of the note.

Cross reference the note to a new asset, keep track of all interest expense and transfer that expense to the lease when the asset is leased.

• Cross reference the note to a new lease.
• Accrue interest expense using one of the fixed or floating rate methods.
• Automatic General Ledger entries for all monetary transactions processed to the note payable.

Three repayment plans are available:

• Principal and Interest (P&I)
  This plan calls for periodic repayment of scheduled (fixed) amounts, as stated in a promissory note. The payment schedule includes both principal and interest. Payments due include the scheduled (fixed) payment amount and previous unpaid interest amounts. Although the payment amount is fixed, the interest accrued for floating rate methods may still be adjusted due to fluctuations in the base rate (set up in Base Rate Update [U0705]). Therefore, in a floating rate principal and interest method, the amount of the reduction of the principal balance is the variable factor. Accordingly, the final payment may be less than the scheduled last payment because of the variable principal reduction.
  
  
• Principal plus Interest (P+I)
  This plan calls for the periodic repayment of a specified principal amount plus accrued interest. The payment schedule consists of the principal portion of the payment only. Payments due include the scheduled principal amount and accrued interest.
  
  
• Interest Only
  This plan calls for the periodic repayment of accrued interest. The payment schedule consists of zero payment amounts only. Payments due include only the accrued interest.

Off Lease Billing

The Off Lease Billing module will allow LeasePak to track and invoice Paid Off and Terminated leases that have remaining balances. It will also allow for the following:

• The effective date of the Payoff/Termination may be changed at the asset and lease level
• The ability to Payoff/Terminate a lease/asset without posting a payment. LeasePak will generate an invoice for billing
• The ability to change the distribution on the amount to loss or new invoice from the customer at the time of Payoff/Termination
• The payment schedule to adjust itself automatically when a partial Payoff/ Termination to an asset is performed
• The ability to exclude outstanding payments from a Payoff/Termination Quote and/or Payoff/Termination
• The ability to enter a residual value (FMV) when entering a Payoff Quote, regardless whether a Payoff/Termination is performed and regardless of the method
• All revenue at the moment of Payoff/Termination will be recognized
• Payoff/Termination will reverse any income accrued after the effective date as well as a warning message when payments have already been received on any invoice
• If a broker fee is being amortized the unamortized amount will be amortized (expensed) at the time of Payoff/termination
• All assessments (before the effective date) and their subsequent tax not be affected by the Payoff/Termination of an asset
• The ability to add Assessments on Paid off or Terminated lease

Operating Leases

The Operating Lease module allows booking and tracking operating leases as defined by FASB 13. Operating leases are booked onto the system in the same manner as direct finance leases, except the accrual method for the operating lease must be one of the following:

• AOSL (advance payment - operating straight line)
• ROSL (payment in arrears - operating straight line)
• AOPM (advance payment - operating payments as accrued)
• ROPM (payment in arrears - operating payments as accrued)

Edit checks and calculations which relate only to direct finance leases are not in effect for operating leases. For example, the total contract receivable need not be greater than actual asset cost.

Operating leases may be booked initially with a month-to-month payment schedule. Alternatively, operating leases may be booked with an initial fixed term and an automatic conversion to month-to-month payments. (See also Operating Leases, Floating Rate below.)

The lease rental payment is reported as income over the lease term as it becomes receivable or on a straight-line basis. Deferred Initial Direct Costs (IDC) are allocated over the lease term on a straight-line basis. For month- to-month leases, IDC costs are allocated over an estimated lease term entered by the user.

An operating lease may be paid off or terminated (early or at maturity) using the Payoff update [U0l03]. An operating lease may be extended at lease maturity (either fixed term or a month-to-month extension) using the Lease Extension update [U0l08]. The Lease Extension update also allows the change of a direct finance lease to an operating lease at the time of extension.

The payment schedule (number of payments, frequency, and/or amount) and the term of operating leases may be adjusted using the Payment Reschedule update [U0104]. Assets may be added to an existing operating lease and the corresponding adjustments to the remaining payment schedule may be entered using the Asset Add-on update [U0113]. Assets may be paid off or terminated from an operating lease and the corresponding adjustments to the remaining payment schedule may be entered using the Payoff update [U0103].

Vendor participation in an operating lease is permitted if the vendor is participating in the payment amount rather than in the income of the lease. Investor participation is not permitted for operating leases.

Operating Leases, Floating Rate

This module allows clients to offer a hybrid product which has rental payments consisting of principal and interest tied to a floating base rate and which uses operating lease accounting. The accrual method for a variable rate operating lease must be one of the following:

• AOVE (advance payment - variable rate operating)
• ROVE (payment in arrears - variable rate operating)

Income is calculated based on a 30 day month/360 day year.

Each month, interest is recalculated on the principal remaining from the original payment schedule, using a floating rate on a per diem basis. The lessee is billed the combined principal and interest amounts from the original payment schedule, and, in addition, the interest adjustment calculated using the floating rate. The interest adjustment is the difference between interest calculated using the floating rate and the scheduled interest for the payment.

Payoffs use the operating lease payoff method, OPR, which calculates the base payoff as the original cost less accumulated depreciation, plus unamortized IDC, less unamortized IDR.

Recovery Tracking

The Recovery Tracking module [U1701] assists in the recovery and repossession of a vehicle lease that has gone delinquent. This new module includes a Work Schedule, a Lease Summary of delinquent leases, account status, account assignment to repossession agencies and a comprehensive set of utilities for updating and setting various parameters that will pertain to the account. The Vehicle Finance module is required to use this module.

Value Added Tax

LeasePak supports charging value added tax (VAT) in locations where it is assessed. With the Value Added Tax module, two methods exist for billing VAT to lessees. It may be charged on periodic rentals just like other sales/ use tax. It may instead be charged both upfront as a percentage of the acquisition cost and during the lease term on only the interest portion of payments.

Note: Upfront VAT is not compatible with Lease Discounting, nor with the Disburse Upfront Sales Tax module.

Vehicle Finance

The Vehicle Finance module allows vehicle lessors to track customer information based on specific business requirements. This module works in conjunction with various base system updates and reports as well as tracking modules such as the Application [U0801], Collections [U1101], Customer Service [U1601] and Recovery [U1701] modules.

Portfolio Processing Options

Multi-Portfolio Processing

The Multi-Portfolio Processing module provides the ability to segregate the LeasePak database into individual portfolios. Each portfolio can operate completely independently within its own set of custom LeasePak parameters. Access to the database may be restricted for an individual user at the portfolio, company, region, office, and vendor levels.

Multi-Portfolio Security

The Multi-Portfolio Security module allows the user to have access to a single portfolio, to several but not all portfolios, or to all portfolios. All updates and reports throughout LeasePak will enforce this security.

Rename Assessments at Portfolio Level

The Rename Assessments by Portfolio module provides the ability to customize the names of assessments charged on leases or assets. It’s possible to have different assessment names in different portfolios, if the Multi-Portfolio module is purchased.

The Rename Assessments module also allows variations in default assessment payment order at the portfolio level. Payment order establishes priorities by which various types of receivables are paid when a payment doesn’t cover all open amounts.

Without this module, assessment names and assessment payment order are stored at the system level where the user cannot customize them.

Service Bureau

The Service Bureau module enables the user to re-license the LeasePak software to external companies in either a timesharing or service bureau capacity, with a mechanism for measuring usage and producing timesharing invoices. The Multi-Portfolio Processing module must be purchased in order to use this module.

LeasePak Interfaces

The following optional data interfaces are available in LeasePak. Through interfaces LeasePak data can be fed into other third-party software such as Electronic A/R systems (ACH or PAP), Electronic A/P systems, corporate General Ledgers, and Vertex.

Credit Bureau Extract Interface

The Credit Bureau Extract program is a separately purchased module of LeasePak, this interface works with LeasePak to extract lease account delinquency information for Credit Bureau Reporting. This EOM module creates a file of data extracted from all leases and includes a totals report. The file is manipulated into the METRO2 format for subsequant upload to most credit bureaus. The program updates the date the lease was last reported and the lessee bureau transaction type code.

Additional functionality is provided if the Vehical Finance module is purchased. An an example of some of these features include assigning status codes to filter selected leases as well as allowing the user to mark delinquent accounts in the Collection Lease Summary Report of the Collection Work Schedule [U1101].

Credit Bureau Scoring Interface

The Credit Bureau Interface is a bridge system between MicroBilt’s credit report software and LeasePak. This interface transfers data between Microbilt and LeasePak databases via the Internet. All client information (vendor/source, lessee and guarantor) will reside centrally in LeasePak.

This module works in conjunction with the LeasePak Application Tracking [U0801] module and gives the user the ability to select client data (lessee, co-lessee, guarantor etc.) and transmit it securely to the Microbilt servers. Data (including credit scores) from requested bureaus are pulled and stored on the MicroBilt servers for later retrieval and review. The bureau reports and scores can be transferred to LeasePak, in real-time or left on the MicroBilt servers. LeasePak uses MicroBilt’s Systems Integration Tool Kit to access selected bureau products from D&B, Experian Business, Experian consumer, Equifax and Trans Union.

Additional requirements include the following:

• Application Tracking [U0801] module purchased.
• Separate licenses with MicroBilt and appropriate credit bureaus.
• Internet connection.
• Properly configured web browser in order to view credit reports.
  

Davox Predictive Dialer Interface

The Davox Predictive Dialer Interface is a link between the LeasePak Collections and Customer Service Tracking modules and the Davox Predictive Dialer system. It is designed to automate the workflow of collectors and customer service agents within a leasing organization and requires a license to user the Davox Predictive Dialer system.

Electronic Accounts Receivable (Pre-Authorized Payments/Automated Clearing House)

The Pre-Authorized Payments/Automated Clearing House (PAP/ACH) interface allows lease payments billed to a lessee to be automatically deducted from the lessee’s designated bank account. The lessor selects a

clearing bank to process the payments. A payment file is created in a form acceptable to the clearing bank and is submitted to the bank a few days prior to the due date of the payments. The PAP/ACH interface is divided into 2 areas. The first creates a scratch file of the lease payments due which the user can review for accuracy. The second reads this scratch file and generates 2 output files, one for the bank and the other for LeasePak’s Batch Payments processing.

Electronic Accounts Payable (Vendor ACH)

The Vendor Automated Clearing House (ACH) end of period module allows checks to be disbursed to a vendor to be automatically credited to the vendor's bank account. The file is created in a form acceptable to the clearing bank and is submitted to the bank a few days prior to the due date of the payments. The Vendor ACH module is divided internally into 2 areas. The first creates a scratch file of the vendor checks to be disbursed which the user can review for accuracy. The second reads this scratch file and generates the output file for the bank. Several Canadian and U.S. ACH formats are supported.

General Ledger Interface

The LeasePak General Ledger Interface provides the ability to transfer summary LeasePak G/L information to another G/L system. This module creates the LeasePak Gereral Ledger scratch file which the user can reformat and map to a receiving General Ledger system.

FormPak Automated Documents

The FormPak Automated documents is an interface between LeasePak UX and JetForm Form Generation software, which provides users with a powerful tool for the production of collection letters and invoices using data from the LeasePak database. FormPak consists of two components: FormPak Automatic and FormPak Request.

Vertex Interface

The Vertex interface integrates Vertex Tax Rates tables with LeasePak. The tax rates provided by Vertex are stored in LeasePak’s location file. Only one rate (sales, use or rental) is supported for each state. The rules governing which rates are used can be modified by the user. These rates are updated during the End of Period/End of Month process.

© 2001 by McCue Systems Incorporated.
All rights reserved.

The information contained in this document is the property of McCue Systems, Inc. Use of the information contained herein is restricted. Conditions of use are subject to change without notice. McCue Systems, Inc. assumes no liability for any inaccuracy that may appear in this document; the contents of this document do not constitute a promise or warranty. The software described in this document is furnished under license and may be used or copied only in accordance with the terms of said license. Unauthorized use, alteration, or reproduction of this document without the written consent of McCue Systems, Inc. is prohibited.