Payments [U0102]: Payment Reversal

Contents

• Reverse Lease Payment
  
• Reverse Credit Memo (Lease)
  
  
• Reverse Interest Bearing Loan (IBL) Payment
• Reverse Interest Credit/Principal Paydown (IBL)

Introduction

This screen is used to select the invoice(s) to which payment reversal will applied. The selection may be by invoice number or lease number.

Note: Payment reversals for interest bearing loans must be by lease number.

If payment reversal is by lease, the invoice with the most recent payment due date that is paid or partially paid will be retrieved for reversal. For interest bearing loans, any interest credit is reversed first. If there is no interest credit to reverse, the invoice with the most recent payment made is retrieved for reversal.

Note: When the Principal Payment Down (Y/N) switch is set to Y, LeasePak will apply overpayments to the Principal paydown if no account receivable records exists. All Suspense items will be reversed when this switch is set to Y. The Principal will be reversed when set to N.

Field Descriptions

• INVOICE NUMBER
  Enter the number of the invoice to be reversed. Leave blank if selecting a lease.

• LEASE
  Enter the lease number. Leave blank if selecting a specific invoice.
  

Reverse Lease Payment

This screen is used to reverse payments to an invoice. This screen is displayed if:

• An invoice number is entered and the invoice is paid or partially paid.
• A lease number is entered, and there is a paid or partially paid invoice for the lease.

Amounts on the invoice are itemized and displayed by payment and assessment amounts.

If payment to amounts due at lease commencement is being reversed and the lease was booked using the optional Partial Deductions module, the entire payment, as processed, must be fully reversed. The amount to reverse may not be changed from the AMOUNT PAID. If a partial reversal is desired, first reverse the entire amount and then re-apply the corrected amount.

If the lease is a simple interest or precomputed accrual type lease and in a suspended earnings status, and the due date of the invoice is after the effective date of the earnings suspension, SUSPENDED PRINCIPAL and SUSPENDED INTEREST are displayed in place of NORMAL PAYMENT. Payments for suspended leases of the above two types are separated into

their principal and interest components. Default cash reversal assignments are displayed for both components. Cash may be reversed from either in the same fashion as from NORMAL PAYMENT.

If the lease is an operating lease and in a suspended earnings status, and the due date of the invoice is after the effective date of the earnings suspension, SUSPENDED INTEREST is displayed in place of NORMAL PAYMENT. Payments to suspended operating leases are regarded as suspended interest (or income). Cash may be reversed in the same fashion as from NORMAL PAYMENT.

If the lease is extended using the RES method, NORMAL PAYMENT corresponds to any remaining residual. INTEREST corresponds to any income in excess of residual, i.e.: the residual is completely amortized. Income and residual normally recognized at the time this invoice was created may have been deferred if cash basis accounting was used. In this case, the income and residual would be reversed now and put back into a deferred’ status. Refer to the RES Accrual Method section in the LeasePak Calculations document for more information on this accrual method.

If the Multiple Banks module has been purchased, the bank code specified during the last payment to this invoice will default. It may be changed.

Field Descriptions

• LESSEE SHORT NAME
  The short name of the lessee is displayed and may not be changed.

• INVOICE NUMBER
  The invoice number is displayed and may not be changed.

• INVOICE DUE DATE
  The invoice due date is displayed in MM/DD/YY or DD/MM/YY format, depending on the Date Format Preference field in Security [U0706] and may not be changed.

• EFFECTIVE DATE
  Enter the effective date desired in MM/DD/YY or DD/MM/YY format, depending on the Date Format Preference field in Security [U0706]. This field defaults to the payment due date if the PAYMENT EFFECTIVE DATE DEFAULT parameter on the last screen of the Lease Form update [U0721] is set to D. It defaults to today’s date, if the above parameter is set to C.

  The EFFECTIVE DATE is used in calculating late charges under the actual days delinquent (GFT or GFL) late charge calculation methods.

• SUSPENSE ITEM
  If a suspense item was used to process the payment, it is possible to reverse the amount back into suspense under the original item number, if desired. Determine the item number from the Suspense Review [U0203] and enter it.

  If the invoice is from a group lease, then the suspense item must be assigned to that group. Otherwise, the suspense item must be assigned to the lease.

  The suspense item must also be assigned to the operator performing the payment reversal. If the original suspense item is cleared, only the last assigned operator on the suspense item may process the reversal. For additional information on assigning financial amounts to an operator, refer to the Session update [U0111].

• SUSPENSE AMOUNT
  The original amount of this suspense item is displayed. SUSPENSE AMOUNT is displayed only if a SUSPENSE ITEM is entered.

• SUSPENSE BALANCE
  The remaining balance of the suspense item is displayed. SUSPENSE BALANCE is displayed only if a SUSPENSE ITEM is entered.

• SUSPENSE COMMENT
  Enter comments for the suspense item. This field is accessed only if a SUSPENSE ITEM is entered.

• TOT AMT TO REVERSE
  For ease of processing, TOT AMT TO REVERSE defaults to the TOTAL AMOUNT PAID when the screen is first displayed. If this is not the actual amount to reverse, then replace TOT AMT TO REVERSE with the correct amount, if allowed. The TOT AMT TO REVERSE may be equal to or less than the TOTAL AMOUNT PAID.

  Note: If payment to amounts due at lease commencement is being reversed and the lease was booked using the optional Partial Deductions module, the entire payment, as processed, must be fully reversed. The amount to reverse may not be changed from the AMOUNT PAID. If a partial reversal is desired, first reverse the entire amount and then re- apply the corrected amount.

• CHECK NUMBER
  Enter the check number for reference. It may be up to 10 digits.

• CASH REVERSED (Y/N)
  Enter Y to use a cash G/L account to record the transaction. Enter N to use a clearing account. This field defaults to Y.

• BANK CODE
  This field appears only if the Multiple Banks module is purchased. The bank code used to process the payment defaults. Change the code, if desired. A warning message appears if the default is changed, but a changed code will be accepted. If the reversal is recorded in a clearing account (CASH REVERSED = N), Bank Code may be entered but has no effect.

• NORMAL PAYMENT (, etc.)
  Descriptions of each charge on the invoice are displayed. If the Name Assessment by Portfolio module is purchased, customized assessment names will be displayed.

• AMOUNT BILLED
  The amount billed for each charge on the invoice is displayed. Charges include the payment amount, interest amount (simple interest leases only), use tax, late charges, collection fees, legal fees, etc.

• AMOUNT PAID
  The amount paid for each charge on the invoice is displayed.

• AMOUNT TO REVERSE (scrolled area)
  The AMOUNT TO REVERSE for each charge defaults to the corresponding AMOUNT PAID when the screen is initially displayed. If the TOT AMT TO REVERSE is less than the AMOUNT TO REVERSE, then payments are reversed in the order the charges appear on the screen (top to bottom).

• TOTAL AMOUNT BILLED
  The total amount billed for this invoice is displayed.

• TOTAL AMOUNT PAID
  The total amount paid for this invoice is displayed.

• TOTAL AMOUNT TO REVERSE
  The total amount to reverse for this invoice is displayed.

Reverse Credit Memo (Lease)

This screen is used to reverse unapplied credit memos. The amounts on the memo are displayed. Credit memos may not be reversed if they are fully applied. The invoices against which the credit memos were processed may be reversed instead.

This screen is only displayed if one of the following is true:

• The invoice number entered is a credit memo; or
• A lease is entered and the first accounts receivable item is a credit memo.
• The lease is not an interest bearing loan.

Field Descriptions

• LESSEE SHORT NAME
  The lessee short name is displayed and may not be changed.

• MEMO NUMBER
  The credit memo number is displayed.

• MEMO DUE DATE
  The date the credit memo was created is displayed in MM/DD/YY or DD/MM/ YY format, depending on the Date Format Preference field in Security [U0706].

• EFFECTIVE DATE
  Enter the effective date desired in MM/DD/YY or DD/MM/YY format, depending on the Date Format Preference field in Security [U0706]. This field defaults to the memo due date if the PAYMENT EFFECTIVE DATE DEFAULT parameter on the last screen of the Lease Form update [U0721] is set to D. It defaults to today’s date if the above parameter is set to C.

  The payment effective date is displayed on the Batch Payment Audit report [U0415B] and the Individual Account Payment History report [R0909]. It is used in calculating late charges under the actual days delinquent (GFT or GFL) late charge calculation methods.

• SUSPENSE ITEM
  If a suspense item was used to create the credit memo, it is possible to reverse the amount back into suspense under the original item number, if desired. Determine the item number from the Suspense Review [U0203] and enter it.

  If the invoice is from a group lease, then the suspense item must be assigned to that group. Otherwise, the suspense item must be assigned to the lease.

  The suspense item must also be assigned to the operator performing the payment reversal. If the original suspense item is cleared, only the last assigned operator on the suspense item may process the reversal. For additional information on assigning financial amounts to an operator, refer to the Session update [U0111].

• SUSPENSE AMOUNT
  The original amount of this suspense item is displayed. SUSPENSE AMOUNT is displayed if a SUSPENSE ITEM is entered.

• SUSPENSE BALANCE
  The remaining balance of the suspense item is displayed. SUSPENSE BALANCE is displayed if a SUSPENSE ITEM is entered.

• SUSPENSE COMMENT
  Enter comments for the suspense item. Comments may be used later to identify suspense items on the Suspense Review report [R0203]. This field is accessed only if a SUSPENSE ITEM is entered.

• TOT AMT TO REVERSE
  For ease of processing, TOT AMT TO REVERSE defaults to the TOTAL AMOUNT PRE-PAID when the screen is first displayed. If this is not the actual amount to reverse, then blank out TOT AMT TO REVERSE and enter the correct amount. The TOT AMT TO REVERSE may be equal or less than the TOTAL AMOUNT PRE-PAID.

• CHECK NUMBER
  The number of the pre-payment check is displayed.

• CASH REVERSED (Y/N)
  Enter Y to use the cash G/L account to record the transaction. Enter N to use the clearing account. This field defaults to Y.

• BANK CODE
  This field appears only if the Multiple Banks module is purchased. The bank code used to create the credit memo defaults. Change the code, if desired. A warning message appears if the default is changed, but a changed code will be accepted. If the reversal is recorded in a clearing account (CASH REVERSED = N), Bank Code may be entered but has no effect.

• AMOUNT APPLIED
  Any portion of the credit memo that was applied toward an invoice is displayed.

• AMOUNT PRE-PAID
  The original amount of the credit memo is displayed.

• AMOUNT TO REVERSE (scrolled area)
  The AMOUNT TO REVERSE defaults to the remaining amount of the credit memo when the screen is initially displayed. If the TOT AMT TO REVERSE is less than the AMOUNT TO REVERSE, then the AMOUNT TO REVERSE is adjusted to match the total. The amount to reverse may not be more than the remaining unapplied portion of the credit memo.

• TOTAL AMOUNT APPLIED
  The total portion of the credit memo amount that was applied toward invoice(s) is displayed.

• TOTAL AMOUNT PRE-PAID
  The total original amount of the credit memo is displayed.

• TOTAL AMOUNT TO REVERSE
  The total amount to reverse for the memo is displayed.

  Note: For leases extended using the RES method on a cash basis, no income is recognized for pre-payments (credit memos) until the credit memo is actually applied to an open invoice. This usually occurs during Invoicing [U0302]. Any amounts applied that are reversed would reverse the income/residual as well. Any unapplied money reversed would have no effect on the Deferred G/L accounts nor Income/Residual. Refer to the RES Accrual Method section in the LeasePak Calculations document for more information on this accrual method.

Reverse Interest Bearing Loan (IBL) Payment

This screen is displayed if:

• A lease number is entered, and there is a paid invoice for the lease.
• The lease is an interest bearing loan.

The amounts of payments are itemized and displayed by interest, principal and assessment amounts. The entire payment, as processed, must be fully reversed. The amount to reverse may not be changed from the AMOUNT PAID.

Interest bearing loan payments must be reversed in exactly the opposite order and in the exact amounts that were processed. Accordingly, LeasePak automatically displays the correct payment to reverse for the lease number entered.

A maximum of 25 payments can be reversed on an interest bearing loan. If more are attempted, a message appears: "Exceeded array size in LSLSTPRADJ program. Contact Client Services. Press return." It is possible for MSI’s Client Services to erase old records from the RPC (principal change) file so that more reversals can be performed, if necessary.

If the loan is in a suspended earnings status, and the due date of the invoice is after the effective date of the earnings suspension, SUSPENDED PRINCIPAL and SUSPENDED INTEREST are displayed in place of PRINCIPAL and INTEREST. Default cash reversal assignments are displayed for both components. Cash may be reversed from either in the same fashion as from PRINCIPAL and INTEREST.

Field Descriptions

• LESSEE SHORT NAME
  The short name of the lessee is displayed and may not be changed.

• INVOICE NUMBER
  The invoice number is displayed and may not be changed.

• INVOICE DUE DATE
  The invoice due date is displayed in MM/DD/YY or DD/MM/YY format, depending on the Date Format Preference field in Security [U0706] and may not be changed.

• EFFECTIVE DATE
  The effective date of the last payment is displayed in MM/DD/YY or DD/MM/ YY format, depending on the Date Format Preference field in Security [U0706] and may not be changed.

  The payment effective date is used in calculating interest for Interest Bearing Loan accrual types and also in calculating late charges under the actual days delinquent (GFT or GFL) late charge calculation methods.

• SUSPENSE ITEM
  If a suspense item was used to process the payment, it is possible to reverse the amount back into suspense under the original item number, if desired. Determine the item number from the Suspense Review [U0203] and enter it.

  If the invoice is from a group lease, then the suspense item must be assigned to that group. Otherwise, the suspense item must be assigned to the lease.

  The suspense item must also be assigned to the operator performing the payment reversal. If the original suspense item is cleared, only the last assigned operator on the suspense item may process the reversal. For additional information on assigning financial amounts to an operator, refer to the Session update [U0111].

• SUSPENSE AMOUNT
  The original amount of this suspense item is displayed. SUSPENSE AMOUNT is displayed only if a SUSPENSE ITEM is entered.

• SUSPENSE BALANCE
  The remaining balance of the suspense item is displayed. SUSPENSE BALANCE is displayed only if a SUSPENSE ITEM is entered.

• SUSPENSE COMMENTS
  Enter comments for the suspense item. Comments may be used to later identify suspense items on the Suspense Review report [R0203]. This field is accessed only if a SUSPENSE ITEM is entered.

• AMOUNT TO REVERSE
  The total amount to reverse is displayed and may not be changed.

• CHECK NUMBER
  Enter the check number for reference. It may be up to 10 digits. This number appears on the Account Payment History report [R0909].

• CASH RECEIVED (Y/N)
  Enter Y to use the cash G/L account to record the transaction. Enter N to use the clearing account. This field defaults to Y.

• BANK CODE
  This field appears only if the Multiple Banks module is purchased. The bank code used to process the payment defaults. Change the code, if desired. A warning message appears if the default is changed, but a changed code will be accepted. If the reversal is recorded in a clearing account (CASH RECEIVED = N), Bank Code may be entered but has no effect.

• INTEREST BEARING
  Descriptions of each charge paid on the invoice are displayed. If the Name Assessment by Portfolio module is purchased, customized assessment names will be displayed.

• AMOUNT PAID (scrolled area)
  The amount paid for each charge on the invoice is displayed and may not be changed. The AMOUNT PAID is the amount to reverse.

• TOTAL AMOUNT PAID
  The total amount paid for this invoice is displayed. This is also the total amount to reverse.

Reverse Interest Credit/Principal Paydown (IBL)

This screen is used to reverse interest credits and principal paydowns for an interest bearing loan.

This screen is displayed if:

• A lease number is entered, and the lease is an interest bearing loan.
• An interest credit or a principal paydown has been processed for the loan.
  
  

Field Descriptions

• LESSEE SHORT NAME
  The short name of the lessee is displayed and may not be changed.

• INVOICE NUMBER
  The invoice number is displayed and may not be changed.

• INVOICE DUE DATE
  The invoice due date is displayed in MM/DD/YY or DD/MM/YY format, depending on the Date Format Preference field in Security [U0706] and may not be changed.

• EFFECTIVE DATE
  The effective date of the last payment is displayed in MM/DD/YY or DD/MM/ YY format, depending on the Date Format Preference field in Security [U0706] and may not be changed.

  The payment effective date is displayed on the Batch Payment Audit report [U0415B] and the Individual Account Payment History report [R0909]. It is used in calculating interest for interest bearing loans and also in calculating late charges under the actual days delinquent (GFT or GFL) late charge calculation methods.

• SUSPENSE ITEM
  If a suspense item was used to process the interest credit or principal paydown, it is possible to reverse the amount back into suspense under the original item number, if desired. Determine the item number from the Suspense Review [U0203] and enter it.

  If the invoice is from a group lease, then the suspense item must be assigned to that group. Otherwise, the suspense item must be assigned to the lease.

  The suspense item must also be assigned to the operator performing the payment reversal. If the original suspense item is cleared, only the last assigned operator on the suspense item may process the reversal. For additional information on assigning financial amounts to an operator, refer to the Session update [U0111].

• SUSPENSE AMOUNT
  The original amount of this suspense item is displayed. SUSPENSE AMOUNT is displayed if a SUSPENSE ITEM is entered.

• SUSPENSE BALANCE
  The remaining balance of the suspense item is displayed. SUSPENSE BALANCE is displayed if a SUSPENSE ITEM is entered.

• SUSPENSE COMMENTS
  Enter comments for the suspense item. Comments may be used to identify suspense items on the Suspense Review report [R0203]. This field is accessed only if a SUSPENSE ITEM is entered.

• AMOUNT TO REVERSE
  The total amount to reverse is displayed and may not be changed.

• CHECK NUMBER
  Enter the check number for reference. It may be up to 10 digits. This number appears on the Account Payment History report [R0909].

• CASH RECEIVED (Y/N)
  Enter Y to use the cash G/L account to record the transaction. Enter N to use the clearing account. This field defaults to Y.

• BANK CODE
  This field appears only if the Multiple Banks module is purchased. The bank code used to process the payment defaults. Change the code, if desired. A warning message appears if the default is changed, but a changed code will be accepted. If the reversal is recorded in a clearing account (CASH RECEIVED = N), Bank Code may be entered but has no effect.

• INTEREST BEARING
  A description of the pre-payment is displayed.

• AMOUNT PAID (scrolled area)
  The amount of each pre-payment is displayed and may not be changed. The AMOUNT PAID is the amount to reverse.

• TOTAL AMOUNT PAID
  The total amount paid for this invoice is displayed. This is also the total amount to reverse.

© 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.