End of Period [U04]: Monthly Updates

This is part of the End of Period [U04] group. For an introduction to End of Period and links to all the End of Period documents, refer to End of Period [U04]: Overview.

 

Introduction

Below are descriptions of the updates that can be set to run as part of End of Month. The updates are listed in alphanumeric order by title. Note that the list is not in module execution order. The Module List section of End of Period [U04]: Overview provides a list of modules in execution order.

 

Application/RAP Cleanup [U0453]

This module performs the following:

 

Dealer Statement [U0426]

The Dealer Statement module allows the lessor to track new IDC/IDR activities as well as any accounting information between the dealer and the lessor. This module works in conjunction with the IDC/IDR enhancement in v3.1a and the Vehicle Finance module.

This update will run as part of the End of Month in End of Period. The module must be selected from the MODULES AND REPORTS screen in the End of Period Customizations option of the Portfolio [U0212] update. LeasePak will calculate the total amount owed to the dealer for the current month based on the RDT table, Dealer Transaction records and the RDH Transaction History. When the amount owed to the dealer is less or equal to the HOLDBACK AMOUNT in Vendor [U0201], no check will be disbursed. LeasePak will perform a check disbursal for the total amount due to the dealer by adding a new record to the RCK Cashier’s Check table.

The Cashier’s Check Disbursal [U0117] module will need to run prior to the Dealer Statement [U0426] module to ensure that a scratch file has been created.

 

Dealer Statement Audit

This report screen displays the Dealer Statement Audit [U0426A] report.

Field Descriptions

 

General Ledger Lessor Income [U0446]

This module updates the GL Lessor Income Month to Date, Year to Date and Life to Date of each lease. These fields will be accurately tracked and updated each time end of month is run. When this module is selected from the MODULES AND REPORTS screen in the End of Period Customizations option of the Portfolio [U0212] update, LeasePak will run the update during end of month processing. LeasePak will read through the Monthly Transaction (RTX) file for each lease; add and subtract the debits and credits and calculate the three new fields in the Lease (RLS) file. The MTD, YTD and LTD fields in the Lease Inquiry [R0905] report will display the GL Lessor Income for that lease.

Note: This JULE Fund 1998 enhancement will calculate the GL Lessor Income [U0446] for leases that were booked after the option is selected. Any leases booked prior to the selection in Portfolio [U0212] or purchase of the JULE Fund 98 module will only calculate the GL Lessor Income on a forward basis.

 

Historical Payment/RTX Cleanup [U0451]

This module deletes all transactions processed before the last End of Month. For example, if the current End of Month date is March 31 and the last End of Month executed on March 2, all transactions processed on or before March 2 are deleted. It also follows that if the current End of Month date is March 31 and the last End of Month executed on February 27, all transactions processed on or before February 27 are deleted. This module also transfers all lease payment transaction information to the Historical Transaction (RHT) file.

Note: Journaling is automatically turned off for this update. The update is structured so that the database is not corrupted if this update should terminate abnormally in any part of its processing.

Skip Comments: There is no adverse effect if this module is skipped. Transactions are cleaned-up by the next End of Month Historical Payment/RTX Clean- up update.

This module can be run interactively via the Historical RTX Clean-up 220 lease/util option. This interface allows Historical Payment/RTX Cleanup to be performed prior to end of month processes. The user may run the module interactively anytime prior to end of month. This allows for large Portfolios to perform the clean up more efficiently.

 

Insurance Tracking [U1002]

This module produces a formatted file of insurance information to be sent to an outside insurance tracking agency. A summary report is produced showing the total number of assets whose information was put on the insurance tracking file. This update is available only as part of the Collateral module, a separately licensed module of LeasePak.

Refer to the Insurance Tracking update [U1002] for more information on this update.

Skip Comments: There is no adverse effect if this update is skipped. The interactive Insurance Tracking update [U1002] may be used to create the insurance tracking file.

 

Investor Income Participation [R0701]

This module produces the same report as the interactive Investor Income Participation report [R0701], but when executed through End of Period, this module performs additional functions:

Refer to the documentation for the interactive Investor Income Participation report [R0701] for a sample report.

 

Loan Accrual [U0455]

This module amortizes to the End of Month all existing underlying loans on file, calculating the monthly income amount and storing it on file. It also reduces the principal outstanding balance of the loan.

All loan accruals are memo and informational changes only. No General Ledger accounts are changed by the loan accrual.

Refer to the Loan update [U0211] for more information on underlying loans.

Skip Comments: If this module is skipped, loan outstanding balances and calculated interest amounts are not updated for the current month. Therefore, the Loan reports show outdated information. However, the next End of Month Loan Accrual brings all accruals current.

 

Suspended Earnings [R0609]

This module produces the same report as the interactive Suspended Earnings [R0609], but when executed through End of Period, this module performs additional functions:

 

Use Tax Disbursal [U0449]

This module reports the use tax to disburse to various taxing entities (state, county, and city). It also clears the reported payable amount from the Use Tax Payable General Ledger for each office.

If the Transit Tax enhancement, part of the 1993 JULE Fund, has been purchased, then transit taxes (or other fourth level taxes in addition to state, county and city) will be split out on a separate line on the Use Tax Disbursal reports. The county or city rates and tax amounts will appear net of any fourth level tax rates and tax amounts.

Five reports are produced by this module:

Use tax is disbursed either when actual payment is received from the lessee (cash basis) or when the payment is due to be received from the lessee (accrual basis).

If the taxing entity’s reporting code is quarterly, a report for that taxing entity is produced during the months of March (for January, February, and March), June (for April, May, and June), September (for July, August, and September), and December (for October, November, and December).

If the Multiple Banks module is purchased, the cash account that will be credited is 127 (Sales Tax Disbursals).

Skip Comments: There is no adverse effect if this module is skipped. Use tax is disbursed by the next End of Month Use Tax Disbursal report. However, if this module is skipped, no Use Tax Disbursal report is available for tax reporting purposes. For instance, if the taxing entity’s reporting code is quarterly and the March report is skipped, the next report produced is the June report.

 

Use Tax Disbursal Location

The Use Tax Disbursal Location report [U0449A] reports at the asset level. The [U0449D] report is identical to the [U0449A], except that it only includes assets with a use tax code of NONR (Exempt and Non Reportable). Both reports include the following information:

 

Use Tax Disbursal Office

The Use Tax Disbursal Office report [U0449B] reports at the asset level. Report [U0449E] is identical to the [U0449B], except that it only includes assets with a use tax code of NONR (Exempt and Non Reportable). Both reports contain the following information:

 

Vendor File Clean-Up [U0423]

This module deletes any vendors that have the status TERM (terminated). The status code may be changed to TERM through the Vendor update [U0201] only if there are no active leases on file for the vendor.

Note: If Multi-Portfolio is purchased, Vendor File Cleanup should be selected to run one Portfolio only. The EOP module processes all of the vendors in the database regardless of the Portfolio submitted. If more than one Portfolio is run during the same EOP, all Portfolios will duplicate the same process.

Skip Comments: There is no adverse effect if this update is skipped. Terminated vendors are deleted by the next End of Month Vendor File Clean-up update.

 

Vendor Income Participation [R0801]

This module produces the same report as the interactive Vendor Income Participation report [R0801], but when executed through End of Period, this module performs additional functions:

This module is executed only if the setting of the VENDR PARTICIPATES IN INCOME parameter is Y. This parameter is located on the first screen of the New Lease Customizations option of the Portfolio update [U0212]. If the parameter is N, the End of Month Vendor Payment Participation report [R0805] is executed.

Refer to the documentation for the interactive Vendor Income Participation report [R0801] for a sample report.

Skip Comment: LeasePak assumes the vendor payable amounts are disbursed to the vendor only when this report is executed through End of Period. Therefore, by skipping this module in End of Period, participation payments due to the vendor for the month are not considered disbursed by LeasePak. These amounts remain on file and are reported by the next End of Month Vendor Income Participation report.

 

Vendor Payment Participation [R0805]

This module produces the same report as the interactive Vendor Payment Participation report [R0805], but when executed through End of Period, this module performs additional functions:

This module is executed only if the setting of the VENDR PARTICIPATES IN INCOME parameter is N. This parameter is located on the first screen of the New Lease Customizations option of the Portfolio update [U0212]. If the parameter is Y, the End of Period Vendor Income Participation report [R0801] is executed.

Refer to the documentation for the interactive Vendor Payment Participation report [R0805] for a sample report.

Skip Comments: This report calculates and reports on lessee payments collected since the last month end. This information is used to determine participation amounts payable to the vendor. If this report is skipped and the normal End of Month process completes, the current month lessee payment collection information is not reported in the next month’s report, resulting in incorrect vendor payment reporting. Therefore, this report should not be skipped unless all End of Month modules are also skipped.

 

Vertex Interface [U0437]

The Vertex Interface [U0437] module will automatically create/update the location (RLO) and name (RNM) files using Vertex’s tape. The Vertex Interface automates executing location updates in Location table maintenance [U0701]. It allows automated maintenance of tax rates. In locations where a cap is placed on the use tax which may be charged on each asset on every billing ("maximum use tax"), Vertex passes those maximums on to LeasePak. This interface is executed via EOD/EOM processing in [U0401] and is only accessible if the module is purchased.

The Vertex Interface update takes care of all tax rate changes so the users do not need to perform rate updates. It is highly recommended that the user not manually add locations if the Vertex Interface module has been purchased. If any records are manually added to the RLO/RNM files, these records will not be updated by the Vertex update. The HELP function on the Location table [U0701] may not work if the user manually adds locations that do not use the standard Geo Codes. Rates may be manually updated if necessary, but eventually, should Vertex attempt to post the same rate change, the manual rate change will be pushed to the Previous rate column and the current rates installed.

LeasePak will track historical tax rate changes as well as store the correct tax rates from Vertex to provide tax calculations for back dated payments and reversals. When the tax rates are updated as part of the End of Period process, the RST field will determine which rate, if any will be loaded for locations under the same state. LeasePak will use the TAX RATE TO USE field in the State [U0713] update is used to allocate either Sales, Use or Rental rates for each state location.

Note: The first record of Vertex file contains the date of Vertex update. This date is compared with the RCG field d_vtx_upd_ymd_s to prevent the same tape being posted twice or to give an error message if an update was skipped.

A full sales tax file is received from Vertex monthly. Records that have been added or changed are so flagged. All files from the Vertex tape, SEQEXP, should be in the correct environment directory:

$TOPDIR/ _vertex.

Note: The End of Period only processes the Vertex file when the U0712EP switch "Run Vertex this EOP Y/N" is set to ‘Y’.

For the new LeasePak client whose database contains only seed files, containing only the US states, the seed data must be made Vertex compatible by having the LeasePak Database Administrator perform the instructions below.

NOTE: It is virtually impossible to change a database from a manually (through U0701) maintained location system to Vertex. Typically, massive and costly custom conversions are required for such a task. The only way to avoid such an expense is to purchase, install and utilize the Vertex interface from the very beginning, or to maintain a manual system in precise lockstep with Vertex's geocode system. If the following instructions are carried out on an active database that has been utilizing a manual system, massive data corruption will likely result.

The Canadian provinces must be added to the RST by executing the setup_rst command:

setup_rst <LeasePak environment name> add CAND <dbo> [<dbo passwd>]

Then the US states and Canadian provinces must be updated to contain Vertex state geocodes by executing the setup_rst command: 

setup_rst <LeasePak environment name> update VRTX <dbo> [<dbo passwd>]

NOTE: The LeasePak Database Administrator should contact an MSI representantive when first setting up for Vertex. It is important to understand that the Vertex interface relies on the geocodes in the RST table to identify which RST state corresponds to which Vertex geocode state or county. The Vertex interface lists as exceptions any states that it cannot find in the RST by geocode.

Once the RST state table is prepared, the program processes as follows:

Two Custom General (RCG) fields are used to control the Vertex update. After processing the Vertex file for the first time, the RCG switch vertex_run_c is set to Y and the field d_vtx_upd_ymd_s is updated with the date of the Vertex file. These fields are used to prevent duplicating the update and to check if any update has been missed.

For the existing LeasePak client who has purchased Vertex, where the RLO/RNM files already exist, the program reads the Vertex file sequentially and selects records flagged as changed/added. The RLO/RNM files are updated with new rates and other changes. After successful update the Vertex file is again renamed to VERTEX_YYMMDD.DAT, the RCG field d_vtx_upd_ymd_s is updated with the date of the Vertex file.

An audit report is produced to list all changes from the last update and to list exceptions (records with invalid tax rates). Exceptions are flagged with R if the new rate is invalid or O if the old rate is invalid.

 

Vertex Interface Audit

The Vertex Interface [U0437A] reports all changes in tax rates and descriptions.

 

Zero Monthly General Ledger Accounts [U0450]

This module zeroes out monthly debits and credits for all General Ledger accounts for each office. It also clears balances in all income and expense accounts (except reserve accounts) on LeasePak’s General Ledger. If this module is not executed monthly, the month-to-date debit and credit amounts reflect an accumulation of months’ work. Regardless of whether it is executed monthly, this module automatically executes at the end of the year. This provides the ability to store year-to-date totals, instead of month- to-date totals, by suppressing this module on a monthly basis.

Note: A switch on the Custom General update [U0712] may be set to Y so that before sales tax records are zeroed out, they are stored in a separate DTR.SEQ file which is never manually deleted. This may be used for interfacing with tax subsystems.

Skip Comments: If this module is skipped, monthly debits and credits are not cleared for the current month. If a monthly interface to an outside General Ledger system is completed, then next month’s General Ledger numbers include the current month’s information, effectively double-counting the current month’s information.

 

LeasePak  Reference Guide

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