Notes Payable [U09]

 

Introduction

The Notes Payable module of LeasePak is used to show the relationship between assets on lease and the notes payable that were used to purchase those assets. Notes payable may be tied to assets in inventory or to leases.

Notes Payable updates allow entry of new notes payables, payments on a note, payoff of a note, adjustments and interest accrual or reversal for notes payables.

The Notes Payable Update Menu is accessed by selecting the UPDATE [U] option on the Main Menu and then selecting the NOTES PAYABLE option [U09]. Alternatively, the menu may be selected by entering U09 from any LeasePak menu.

The Notes Payable updates are accessed by clicking on Updates from the Main Menu, then clicking Notes Payable, and selecting the update desired. Alternately, hold down the Alt key and press U, then N, then continue pressing N until the update desired is highlighted.

To use the Fast Menu for accessing any Notes Payable update, enter 7 characters:

 

New Notes Payable [U0901]

The intended use of the Notes Payable feature of LeasePak is to show the relationship between an asset or lease and the note payable that was used to purchase the asset(s). Notes payable may be tied to assets in inventory or to leases.

The New Notes Payable update [U0901] is part of the Notes Payable module, a separately licensed module of LeasePak. The New Notes Payable update [U0901] allows the initial booking of a note payable onto the system [U0901BK], as well as the complete removal of a note [U0901RM]. If a booking error is discovered that cannot be corrected through the regular adjustment functions, the note payable can be removed and then booked again with the correct information.

The New Notes Payable update [U0901] on the Notes Payable menu offers 2 options, Book Notes Payable [BK] and Remove Notes Payable [RM].

Using the Book Notes Payable option of this update, a note payable can be added to the Notes Payable (RNO) file. In order to attach a note payable to an asset or a lease, the note payable must exist on the Notes Payable (RNO) file. Notes Payable are attached to assets or leases when the latter are entered through the Add Asset or Book Lease options of the New Lease update [U0101]. In addition, notes payable may be attached to - or detached from - leases or assets using the Master Financial update [U0202] or the Asset update [U0210], respectively.

Partial payments may be made when a Payment [U0102] is made to a lease with an attached note. The partial payment is based on the payment hierarchy and the Apply Payment to Note (Y/N) field set to 'Y'. The interest will be paid prior to the principal. All non- advanced payments applied to the lease will also be applied to the note. If the note is under paid, the payment will be applied to the interest portion of the note first. If the note is over paid, the overage will be listed in the exceptions report.

Using the Remove Notes Payable option of this update, a note payable which was added in error through the Book Notes Payable option may be removed from the Notes Payable file.

General Ledger accounting for Book Notes Payable is as follows:

General Ledger AccountAmount
DRCashNote Payable
    CRNote Principal Outstanding Payable 

 

This menu is used to select the New Notes Payable update [U0901] option.

 

Book Note Payable

 

This screen is used to specify the note payable to be booked.

 

General Tab

This screen is used to specify the General financial information associated with this notes payable.

DOWN PAYMENT is the only optional field on this tab; all others are required before a new note payable can be stored.

 

Rate/Comments Tab

The second tab of Book Notes Payable is labeled Rate/Comments.

 

Payment Schedule

The final tab is labeled Payment Schedule.

 

 

Notes Payable Audit Report - General Information

The Book Notes Payable Audit Report [U0901BK] provides the following notes payable information for each note booked. For more detailed information on the items shown on the report, refer to their field descriptions above on the Book Notes Payable tabs.

 

Notes Payable Audit Report - Accrual Information

The Book Notes Payable Audit Report [U0901BK] provides the following notes payable accrual information for each notes payable booked.

 

Notes Payable Audit Report - Payment Information

The Book Notes Payable Audit Report [U0901BK] provides the following payment information for each note booked. For more detailed information on the items shown on the report, refer to their field descriptions on the Book Notes Payable option tabs.

 

Notes Payable Audit Report - Accrual Register


The Book Notes Payable Audit Report [U0901BK] provides the following notes payable accrual register information for each notes payable booked.

 

Remove Note Payable

This screen is used to specify the note payable to be removed. (This function is analogous to the Remove Lease option of the New Lease update [U0101].) Removing a note has no effect on the asset or lease attached to the note, other than removing the relationship between the notes payable and the asset or lease. The following restrictions for this function apply:

 

This dialog box appears,showing the number and description for the Note Payable.

DELETE NOTE PAYABLE Y/N

Enter Y if this is the correct note payable to remove.

 

Notes Payable Payment [U0902]

The Notes Payable Payment update [U0902] processes payments to lenders and payment reversals.

LeasePak creates an accounts payable record for each payment due for each note payable. Payments may be processed individually by note, or by multiple payments for a lender or lender/note.

Access the Payment option by pressing <F2> and entering U0902PA in the fast menu, or by selecting it from pull-down menus. Access Payment Reversal in the same ways, using U0902PR in the fast menu.

 

This menu is used to select the Notes Payable Payment update [U0902] option desired.

 

 

 

Notes Payable Payment

Notes payable payments may be processed individually for a specific due date on a note, or as a group by lender, or for all payments due on a note.

 

This screen appears if LENDER alone is entered on the initial screen, or if a combination of LENDER and NOTE is entered. This screen is used to disburse all outstanding notes payable payments for the lender or on the note selected. All unpaid payments due on or before the specified end date are displayed for disbursal. The entire amount due must be paid; no adjustments, partial payments or overpayments are allowed. When RETURN is pressed or Save is clicked, all the notes payable payments are disbursed as specified.

An alternate screen displays if a specific note payable was selected.

Click the Retrieve button and payments to be disbursed will appear in the scrolled area.

Click the Save button to process all payments in the scroll area.

 

This screen is used to disburse a single payment for the note payable selected. The previous screen may be used to disburse all unpaid payments for a specified note or lender.

 

Notes Payable Payment Reversal


This screen is used to select the note whose payment to the lender is to be reversed. Even if the payment was originally processed as part of a group of payments due for a lender, it must be reversed note by note.

 

This screen is used to reverse a payment made to the note payable selected. The paid payment with the most recent due date appears for reversal.

 

Notes Payable Payoff [U0903]

The Notes Payable Payoff update [U0903] is used for a payoff or payoff reversal of a note payable.

A notes payable payoff should occur when:

The notes payable may be paid off early (before note maturity) or at note maturity.

The note payable may have been attached to a lease when it was booked. When the note is paid off, the link between note and lease is dissolved. A new note may be attached to that lease, if desired.

For notes payable attached to leases, amounts may have been entered as SECURITY DEPOSIT, GAP FEE, LEASE FEE, SERVICE FEE or PER DIEM INTEREST. These amounts are reversed on the General Ledger when the note is paid off. RESERVE FOR CHARGE BACK is not reversed by paying off the note.

Access the Payoff option by pressing <F2> and entering U0903PF in the fast menu, or by selecting it from pull-down menus. Access Payoff Reversal in the same ways, using U0903PR in the fast menu.

 



This menu is used to select the Notes Payable Payoff update [U0903] option desired.

 

Notes Payable Payoff

This screen is used to enter the number of the note payable to be paid off.

 

Use Help to access a Notes Payable Search by Lender screen. Enter selection criteria for the lender (e.g., name, location), if any, then click Retrieve. Select from the list of lenders displayed by highlighting one lender, then clicking on Select.

 

A list of notes payable associated with that lender is displayed. Highlight the note to be paid off and click Select.

 

This screen is used to enter the notes payable payoff information.

If the note is attached to a lease and a partial payment has been applied to the note, a message appears: "Partial payment must be reversed or paid in full."

 

Notes Payable Payoff Reversal

This screen is used to enter the number of the note payable whose payoff is to be reversed.

 

This screen is used to verify that the paid off note entered is the correct one to reverse. A notes payable payoff may be reversed if the notes payable record still exists in the system.

 

Principal and Schedule Adjustment [U0904]

Circumstances may occur which make it necessary to increase the principal on a note payable and increase the payment schedule amounts at the same time. For example, one or more assets may be added to the lease to which the note payable is tied.

In other circumstances it may be necessary to pay down the principal before the payment schedule would call for such payments, perhaps due to a casualty loss or payoff/termination of one or more of the assets on the lease to which the note payable is tied. The remaining payment schedule may also be adjusted.

 

The Principal and Schedule Adjustment update [U0904] is used to make such changes.The following information may be changed:

If a payment reschedule is to apply to payments already accrued, use the Notes Payable Accrual Reversal option of the Notes Payable Accruals update [U0905] to reverse accruals for the payments to be rescheduled, before making the desired adjustment through the Principal and Schedule Adjustments update [U0904].

 

This screen is used to enter the number of the note payable whose principal balance and/or remaining payment schedule is to be adjusted. A warning message appears if the note has been attached to a lease by entering the lease number when the note was booked.

Use Help to perform a Notes Payable Search by Lender, as outlined in the Notes Payable Payoff update [U0903] documentation.

 

This screen is used to enter the amount of increase or decrease to the current note’s principal balance. The remaining payment schedule may also be changed.

If there are any principal or payment schedule adjustments and the selected note is not accrued to the current date, this module will automatically accrue the note up to date.

After an adjustment has been performed, the note payable may not be removed from the system with the Remove Notes Payable option of the New Notes Payable update [U0901RM].

Note: COMM is an invalid payment frequency code at this point, for COMM is only allowed for a payment due on the commencement date. The note has to be removed and then rebooked in order to change either the payment amount or the frequency code for the payment due on the commencement date.

 

Principal and Schedule Adjustment Audit

The Principal and Schedule Adjustment Audit report [U0904] provides the following information for notes payable with principal or payment schedule adjustments.

 

Notes Payable Accrual [U0905]

The Notes Payable Accrual update [U0905AC] is used in conjunction with the Notes Payable module, a separately licensed module of LeasePak. The update is used to interactively accrue or reverse interest expense calculations for a note payable. (Refer to the New Notes Payable update [U0901] for more information on notes payable.)

There is also the option to calculate interest expense for a selection of notes payable or for all notes payable in the entire LeasePak system. All notes payable selected are accrued to their current point, as determined by the system based on the current date. Catch-up accruals are performed if a note payable has missed more than one accrual. Notes payable that fit the selection criteria but are already current are not accrued. Therefore, a note payable is never accrued past its current point, regardless of the number of times the accrual option is selected for the note.

The Accrual Reversal option of the Notes Payable Accrual update [U0905AR] reverses the accrual process for a specific note payable.

Access the Accrual option by pressing <F2> and entering U0905AC in the fast menu, or by selecting it from pull-down menus. Access Accrual Reversal in the same ways, using U0905AR in the fast menu.

 

This menu is used to select the Notes Payable Accrual update [U0905] option.

 

Notes Payable Accrual

 

This screen is used to select the note payable or selection of notes payable to accrue.

The bottom portion of this screen is used to select the range of payment due days for the notes payable or selection of notes payable to accrue.

The values in the START DAY and END DAY fields are initially defaulted to include all possible payment due days (1 through 31), but may be changed to produce a narrower range. If only notes payable with a particular payment due day are to be accrued, both START DAY and END DAY may be set to the same value.

 

Notes Payable Accrual Audit

The Notes Payable Accrual Audit report [U0905A] reports at the notes payable level and provides the following information for each note payable accrued:

 

Notes Payable Accrual Message

The Notes Payable Accrual Message report [U0905B] reports at the notes payable level and provides the following messages:

 

Notes Payable Accrual Reversal

This screen is used to select the note payable whose accrual is to be reversed.

 

Select the note whose accrual should be reversed. Notes must be selected for reversal one by one.

 

This screen is used to enter the date to which accruals for the selected note payable are to be reversed. Pertinent information about the note payable is displayed.

This is the last screen of the Notes Payable Accrual Reversal option. When ENTER is pressed or OK is clicked, accruals are reversed for the note.

If accruals could not be reversed, a message is displayed indicating the problem, and no file updating is performed. If this occurs, correct the problem before attempting to reverse accruals again. Then re-enter this update and try to reverse accruals again.

 

LeasePak  Reference Guide

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