Change Lease Key [U0114]

The Change Lease Key update changes the accounting unit (portfolio, company, region, and office) portion of the lease key and attached notes payable key, if any. The lease number remains unchanged, as does any notes payable number.

If the accounting unit is changed:

All associated General Ledger account amounts for the lease and any notes payable attached to the lease are automatically transferred from the old accounting unit to the new accounting unit.
The activity status of the lease is changed to AXFR (active transferred), unless it is in a non-accrual status, in which case the lease activity status remains the same.
An effective date of transfer may be entered. The lease and any notes payable attached to the lease are reversed back to the transfer date, moved from the old accounting unit to the new accounting unit, and reaccrued to its current point under the new accounting unit.
If payments have been made on the lease since the effective date of transfer, those payments are automatically reversed and reapplied in the new accounting unit.
Any outstanding invoices which are reversed and then reaccrued will have a new invoice number assigned to them.
Any undisbursed Escrow (E type) recurring charges should be disbursed prior to processing a Change Lease Key.
Note: If the 93JULE Fund module has been purchased, then the old invoice number will be retained when the invoice is reversed and then reaccrued.
Also: Use tax is calculated based upon the current tax payment code and/or location of the asset(s). Incorrect use tax may be calculated if the location and/ or tax payment code was changed during the period for which the accrual reversal process is performed.
And: This update requires substantial processing and may take some time to complete.

Change Lease Key

This screen is used to select the lease whose key is to be changed.

Note: McCue Systems Inc. offers a stand-alone batch change key program which allows a user to perform the change lease key update for multiple leases based on input from a sequential text file created by the user. This program may be used during manual data conversions, for example, to copy converted leases from a conversion portfolio/company/region/office (P/C/R/O) to a live, production P/C/R/O. Batch Change Key may also be used when a group of leases is securitized.
All accruals since the effective date of the change are automatically reversed and reaccrued, and likewise all payments since the effective date are reversed and reapplied. The reversal of payment occurs using the original bank code.
Payment reversal requires Reverse Payments to Effective Date, and payment reapplication requires the Batch Payments module. A Batch Payments input file, named 99_sctzpmt.dat where 99 equals the portfolio number, is automatically generated for reapplication of payments. Contact MSI for additional information.

Field Descriptions

LEASE
Enter the lease number. The lease may not be paid off.

If the lease is part of a customer/group, it may not be moved to another portfolio. However, it is possible to move leases that are part of a customer/group between companies, regions and offices of the same portfolio.

If a mid-term adjustment or due date change has been processed on the lease after the change key effective date, the change key may be processed. Research the results carefully, as such adjustments may cause problems.
Note: Batch Change Key, lease utility 212, will not process a change to a lease which has undergone a mid-term adjustment or due date change. An audit report and an exception report are produced when the Batch Change Key utility is run. Leases which have undergone mid-term adjustments or due date changes since the effective date of the change key appear on the exception report. Change key must be processed lease-by-lease with the Change Lease Key update [U0114].

This screen is used to enter the new accounting unit portion of the lease key. The existing portfolio, company, region and office are displayed. The new accounting unit entered must be a valid combination of portfolio, company, region, and office.

Field Descriptions

PORT
Enter the new portfolio number. To move a lease to another portfolio, the following conditions must be met:
- Parameters on screen 1 of the Assessment Customizations option of the Portfolio update [U0212] must be set to the same values for all assessment types used in both the current and the new portfolio.
- The BOOK ITC ACCRUE parameter on screen 1 of the New Lease Customizations option of the Portfolio update [U0212] must be set to the same value (Y or N) for both the current and the new portfolio.
- The VENDOR PARTICIPATES IN THE INCOME parameter on screen 1 of the New Lease Customizations option of the Portfolio update [U0212] must be set to the same value (Y or N) for both the current and the new portfolio.
- The INVESTMENT TAX CREDIT EXCLUDED FROM YIELD parameter on screen 1 of the New Lease Customizations option of the Portfolio update [U0212] must be set to the same value (Y or N) for both the current and the new portfolio.
- The ACCRUAL CYCLE DAY parameter corresponding to the payment due day of the lease on screen 1 of the Predefined Cycles Customizations of the Portfolio update [U0212] must not be set to N.
- The LEASE DISCOUNTING USED parameter on screen 1 of the Modules Customizations option of the Portfolio update [U0212] must be set to Y if the lease to be transferred is a discounted lease (lease status code is NDSC).
If the portfolio number is not to be changed, enter the current portfolio number. A portfolio number must be entered.
COMP
Enter the new company number. If the company number is not to be changed, enter the current company number. A company number must be entered.
REGN
Enter the new region number. If the region number is not to be changed, enter the current region number. A region number must be entered.
OFFIC
Enter the new office number. If the office number is not to be changed, enter the current office number. An office number must be entered.

This screen replaces the previous screen if the LEASE/APPLICATION NUMBERING METHOD in the Auxiliary Table Maintenance menu Custom General option [U0712], is set to ENTR. This screen allows the user to change the PCRO and the Lease number.

Field Descriptions

PORT
Enter the new portfolio number. To move a lease to another portfolio, the following conditions must be met:
- Parameters on screen 1 of the Assessment Customizations option of the Portfolio update [U0212] must be set to the same values for all assessment types used in both the current and the new portfolio.
- The BOOK ITC ACCRUE parameter on screen 1 of the New Lease Customizations option of the Portfolio update [U0212] must be set to the same value (Y or N) for both the current and the new portfolio.
- The VENDOR PARTICIPATES IN THE INCOME parameter on screen 1 of the New Lease Customizations option of the Portfolio update [U0212] must be set to the same value (Y or N) for both the current and the new portfolio.
- The INVESTMENT TAX CREDIT EXCLUDED FROM YIELD parameter on screen 1 of the New Lease Customizations option of the Portfolio update [U0212] must be set to the same value (Y or N) for both the current and the new portfolio.
- The ACCRUAL CYCLE DAY parameter corresponding to the payment due day of the lease on screen 1 of the Predefined Cycles Customizations of the Portfolio update [U0212] must not be set to N.
- The LEASE DISCOUNTING USED parameter on screen 1 of the Modules Customizations option of the Portfolio update [U0212] must be set to Y if the lease to be transferred is a discounted lease (lease status code is NDSC).
If the portfolio number is not to be changed, enter the current portfolio number. A portfolio number must be entered.
COMP
Enter the new company number. If the company number is not to be changed, enter the current company number. A company number must be entered.
REGN
Enter the new region number. If the region number is not to be changed, enter the current region number. A region number must be entered.
OFFIC
Enter the new office number. If the office number is not to be changed, enter the current office number. An office number must be entered.
LEASE
Enter the new lease number. If the lease number is not to be changed, enter the current lease number. A lease number must be entered.

This screen is used to specify the date for the change key process. All income accrued on or after the transfer date is accrued to the new portfolio, company, region, and office, if changed.

Note: Income accrued before the change key effective date will remain in the old accounting unit. However, if any payment has not been paid, the open accounts receivable record moves to the new accounting unit, and payments will be processed in the new accounting unit.

If a note payable is tied to the lease, all notes payable interest accrued on or after the transfer date is accrued to the new portfolio, company, region, and office.

Field Descriptions

TRANSFER ALL PAYMENTS DUE ON OR AFTER
The transfer date is initially defaulted to the current date in MM/DD/YY or DD/ MM/YY format, depending on the Date Format Preference field in Security [U0706]. Change the date, if desired.

If necessary, accruals and payments are reversed to this transfer date, the lease is transferred to the new portfolio, company, region, and office, and the lease is reaccrued to its current point. Payments are reapplied immediately in the new P/ C/R/O. It is advisable to use one of the payment due dates for the lease as the transfer date. If the transfer date is not one of the payment due dates, accruals are reversed to the first accrual period on or before the transfer date entered.

If accrual reversals are not desired, use the DATE ACCRUED TO as the transfer date. (The date accrued to may be found on the Accrual Information option of the Lease Inquiry report [R0905]).

All payments made to the lease with an effective date after the change key are reversed and automatically reapplied in the new accounting unit. Payment reapplication may not be identical to the original application:

If more than one payment was made to close an invoice, the full amount will be reapplied as one payment, unless the lease is an interest bearing loan. For IBLs, payments will be reapplied in the exact order of original application.
Any partially paid invoice will be reapplied as a partial payment. If the default payment order for assessments was manually overridden when the payment was originally made, the reapplication will not reflect that override. Assessments will be paid according to the payment order established for the lease’s new key. All partial payments appear on the Batch Change Key Payment Exceptions report. Research them, using R0909 Account Payment History report. If the payment order was overridden on the initial payment application, determine whether the automatic reapplication should be adjusted manually to match.
BANK CODE
If the Multiple Banks module is purchased, all payments will be reversed with the bank code used for the original payment. A bank code may be entered here which will be used for all reapplication. If no code is entered here, payments are reapplied with the bank code used for the original application.
Note: Batch Change Key, lease utility 212, creates a file which is automatically processed by the Reverse Payments to Effective Date program. Payments are reversed from the bank code in which they were originally applied. Payment reapplication is automatically performed by the Batch Payments module. The bank code for the reapplication may be specified when Batch Change Key is input in lease utility 212. If no bank code is specified, the codes from original payment applications are passed to the Batch Payments input file.

Audit Reports

An audit report [U0114B] and an exception report [U0114A] are produced when Change Lease Key is complete. The audit report shows reapplication of all payments in the new P/C/R/O. The exception report shows informational messages, such as "Partial Payment Was Applied," and error messages if a change key could not be processed.

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.