Payment Extension [U0107]

Contents

• Payment Extension
• Payment Extension Reversal

Introduction

The Payment Extension update postpones the due dates of outstanding invoices by a specified number of months. All future payments as well as the lease term and maturity date are extended. A fee for the payment extension may be added to the first extended invoice or, if already collected, recorded as received.

This update could be used to bring a delinquent lessee current without forgiving any payments due. For example, a lease is delinquent for payments due in January, February, and March. In April a collector might offer to extend the payments by three months and charge the lessee a fee for the extension. After the extension:

• The previously overdue payments for the lease are due in April, May, and June.
• The lease is brought current (no longer delinquent).
• The lease term is increased by three months.
• The lease maturity date is extended by three months.

Payment extension cannot be applied to a non-accrual lease. Also, payment extensions may not be processed on leases with advanced invoicing.

When the Cash Control module is purchased and a Payment Extension is made to the lease, LeasePak will automatically assign a trace reference information from the Payment Origination code when a Payment Extension Fee is received. The trace reference will appear in the Cash Control Payment History [R0926] report.

All extensions made to a lease will run through edit checks ensuring that the lease meets all Ext/Def eligibility criteria based on the parameters set in the Miscellaneous Customizations option of the Portfolio [U0212] update.

When a Suspense item has been tied to the lease that is being extended, LeasePak will automatically default the trace reference information to the Suspense Review [R0203] report.

Note: Back to back Payment Extensions may now be done on the same lease invoice if the user has Supervisor Override privileges. Although, only the last extension may be reversed.

This screen is used to select the Payment Extension update [U0107] option desired.

Payment Extension

This screen is used to select the lease or the first invoice to which the payment extension should be applied. The user may enter either:

• An invoice number. The lease extension will begin with the invoice number that was selected.
• The lease number. The lease extension will begin with the first outstanding invoice. All unpaid invoices for the lease are extended.

If no invoices are outstanding for the lease selected, a message appears to that effect and no payment extension is performed.

A warning message will be displayed if an active note is attached to the lease. This message only appears if the Notes Payable module is purchased.

• INVOICE
  Enter any outstanding invoice number for the lease to be extended. Leave blank to select a lease number.

• LEASE
  Enter the lease number. Leave blank to select an invoice number.

This screen is used to process the payment extension. The due date of the first unpaid invoice is displayed.

• NUMBER OF EXTENSION MONTHS
  Enter the number of extension months desired. All invoices and credit memos outstanding are extended by the number of months specified.

• EXTENSION FEE
  Enter the extension fee, if any. This may be a fee that is already collected or a fee to be assessed and billed to the lessee. Leave this field blank if no extension fee is involved.

  If the PAYMENT EXTENSION FEE USED parameter on screen 1 of the Assessment Customizations option of the Portfolio update [U0212] is set to N (i.e., payment extension fees are not used), this field may not be accessed.

  When the Vehicle is purchased, LeasePak will perform edit checks on the extension fee entered based on the EXT/DEF/DUE DAY CHG FEE field in Lease Form [U0721].

• SALES TAX ON EXTENSION FEE
  This field is informational only. If the Sales Tax on Assessments module has been purchased, and the associated table has been set up through [U0725], sales tax will be automatically calculated on the extension fee, and applied to the invoice. If, however, the fee already exists on an invoice, but was not previously taxed, then this additional amount will likewise not be taxed.

• EXTENSION FEE PAYMENT CHECK AMOUNT
  Enter the amount of any check already received for the extension fee payment. The check amount must not be greater than the fee plus any calculated sales tax. Leave this field blank if no check has been received.

  If no EXTENSION FEE PAYMENT CHECK AMOUNT and no SUSPENSE NUMBER are entered, the full extension fee plus any calculated sales tax is assessed to the lessee. If a check amount and/or suspense item is entered, but the amount is less than the extension fee plus any calculated sales tax, the remainder is assessed to the lessee.

  If no EXTENSION FEE is entered, this field may not be accessed.

• CHECK NUM
  Enter the check number for the extension fee received.

• BANK CODE
  This field will appear if the Multiple Banks module has been purchased. It allows the user to specify which bank should receive the payment. The default bank code is 125; valid entries are 1 or 125-144. If no EXTENSION FEE is entered, this field may not be accessed.

  If the fee will be placed on an invoice that is partially paid, the bank code used in the partial payment will be defaulted.

• SUSPENSE AMOUNT
  This field is informational only. If the number of a suspense item is entered in the next field, the amount of that suspense item is displayed after RETURN or OK is clicked.
  
  
• SUSPENSE NUMBER
  If all or part of the extension fee payment is from suspense, enter the number of the suspense item to be used. If the SUSPENSE AMOUNT is greater than the EXTENSION FEE plus any sales tax, the fee plus any sales tax is deducted from the SUSPENSE AMOUNT.

  If no EXTENSION FEE is entered, this field may not be accessed.

  If the Multiple Banks module has been purchased, the bank code from the suspense item will be defaulted in the BANK CODE field.

• FIRST INVOICE PAYMENT DUE DATE
  The due date of the first unpaid invoice for the lease is displayed in MM/DD/ YY or DD/MM/YY format, depending on the Date Format Preference field in Security [U0706].

• NEW FIRST INVOICE PAYMENT DUE DATE
  The new due date of the first invoice after the extension is displayed in MM/ DD/YY or DD/MM/YY format, depending on the Date Format Preference field in Security [U0706]. The new due date is calculated by adding the number of extension months to the FIRST INVOICE PAYMENT DUE DATE. All other outstanding invoices for the lease are also extended by the same number of months.

Payment Extension Reversal

This screen is used to select the lease for which a payment extension should be reversed. For the lease specified, all extended invoices are returned to their original payment due dates, before any current extension(s) were made. Also, the lease term is reduced and the lease maturity date is moved back.

If there are no extended invoices for the lease selected or any of the extended invoices are paid in full or in part, no payment extension reversal may be performed.

• INVOICE
  Enter the invoice number of any of the extended invoices which are to be reversed. Leave blank to select a lease number.

• LEASE
  Enter the lease number. Leave blank to select an invoice number.

This screen is used to verify the lease payment extension to be reversed. The due date of the first extended invoice and the number of months it was extended are displayed.

• ORIGINAL DUE DATE
  The date the payment was due before an extension was granted is displayed in MM/DD/YY or DD/MM/YY format, depending on the Date Format Preference field in Security [U0706]. After reversing the extension, the payment will again be due on this date.

• NUMBER OF CURRENT PAYMENT EXTENSIONS
  The number of times the payment has been extended is displayed.

• EXTENDED DUE DATE
  The current due date of the extended payment is displayed in MM/DD/YY or DD/MM/YY format, depending on the Date Format Preference field in Security [U0706].

• TOTAL NUMBER OF MONTHS EXTENDED
  The number of months the invoice is extended was displayed.

• REVERSE THIS PAYMENT EXTENSION (Y/N)?
  If the reversal is performed, all extended invoices and credit memos are returned to their pre-extension dates. Any fee and sales tax assessed or collected at the time the extension was made is reversed. The lease term is reduced to the pre- extension length, and the maturity date is changed to the pre-extension maturity date.

© 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.