Suspended/Non-Accrual Leases [R0602]

The Suspended/Non-Accrual Leases report [R0602] lists all Non-Accrual leases and leases whose earnings have been suspended. Suspended status codes are set through the Suspended Earnings update [U0115]. This update is used to place a lease on a suspended earnings status as of the current accrued to date or a date in the past, change the status of a lease from one suspended status to another, or to remove a lease from a suspended earnings status.

When income earnings are suspended, all outstanding lease payment receivables (due on or after the effective date of the earnings suspension) and unbilled interest (as of the effective date) are transferred to suspended General Ledger accounts. Receivables due before the effective date of the earnings suspension are unaffected.

The accrual process sets up receivables in the suspended receivables G/L account (separated into principal and income portions) and income in the Suspended Income Accrued G/L account. Invoicing continues as normal. If a payment is received, the payment is allocated against principal and income in the usual manner. The amount of income paid is accumulated in a suspended income collected Master Financial (RLS) file field. If earnings are reinstated for the account, the Suspended Income Accrued is transferred to the normal income G/L account. If the account is charged off, the suspended income collected is re-applied against the remaining principal balance or contract receivable (before the loss/amount to charge against bad debt reserve is calculated).

This report includes leases with the following activity statuses:

HHLD Non-Accrual hold

HINS Non-Accrual non-insurance

HREC Non-Accrual rescission

HREP Non-Accrual involuntary repossession

HSET Non-Accrual insurance settlement

HSKP Non-Accrual skip

HVOL Non-Accrual voluntary repossession

NHLD Suspended hold

NINS Suspended non-insurance

NREC Suspended rescission

NREP Suspended involuntary repossession

NSET Suspended insurance settlement

NSKP Suspended skip

NVOL Suspended voluntary repossession

The suspended leases are in some transitional stage and are not currently earning income, but rather accumulating suspended income in suspended income accounts. Use the Suspended Earnings report [R0609] to view the suspended income accumulated. If a lease is removed from a suspended status using the Suspended Earnings update [U0115], suspended earnings are automatically reinstated.

If the Lease Discounting module is purchased and used, this report may also be used to view a list of discounted leases (leases of NDSC status) if the accounting unit or the lease entered for reporting is in a Lease Discounting portfolio. Refer to the Lease Discounting update [U0123] for more information.

The report is organized by Portfolio, Company, Region, Office, or by Customer, Group. The report may be accessed through the Collection/Tracking report menu [R06]. The report may be selected interactively for: All leases

All customers and groups
A portfolio
A company
A region
An office
A lease
A customer
A customer/group

Suspended/Non-Accrual Leases Selection

ALL
Enter X to report on all leases in a suspended earnings or non-accrual status. Leave blank to report on a specific portfolio, company, region, office, lease, customer and/or group. If ALL is selected, leases that belong to a customer or to a group are also reported, sorted by their portfolio, company, region, office, and lease numbers, rather than their customer or group numbers.
ALL CUST
Enter X to report on all customers. Leave blank to report on a specific portfolio, company, region, office, lease, customer and/or group. If ALL CUST is selected, only leases that belong to a customer or to a group are reported (sorted by customer and group).
PORT
Enter the number of the portfolio upon which to report. Leave blank if reporting across portfolios.
COMP
Enter the number of the company upon which to report. Leave blank if reporting across companies.
REGN
Enter the number of the region upon which to report. Leave blank if reporting across regions.
OFFIC
Enter the number of the office upon which to report. Leave blank if reporting across offices.
LEASE
Enter the number of the specific lease upon which to report.
CUST
Enter the number of the customer upon which to report. CUST may not be entered if a portfolio, company, region, office, or lease number is entered. CUST must be entered if GROUP is entered.
GROUP
Enter the number of the group upon which to report. GROUP may not be entered if a portfolio, company, region, office, or lease number is entered.

Suspended/Non-Accrual Leases Report

The Suspended/Non-accrual Leases report [R0602] reports at the lease level and provides the following information:

LEASE
LESSEE SHORT NAME
ACT STAT
The short form of one the following activity status values is displayed:

HHLD Non-Accrual hold

HREC Non-Accrual Rescission
HREP Non-Accrual Involuntary Repo
HSKP Non-Accrual Skip
HINS Non-Accrual Non-Insurance
HSET Non-Accrual Insurance Settlement
HVOL Non-Accrual Voluntary Repo
NHLD Suspended Hold
NREC Suspended Rescission
NREP Suspended Involuntary Repo
NSKP Suspended Skip
NINS Suspended Non-Insurance
NSET Suspended Insurance Settlement
NVOL Suspended Voluntary Repo
NDSC Discounting lease
SUSPEND EFF DATE
The effective date of the suspension is displayed.
LEASE COM DATE
The lease commencement date is displayed. The commencement date to the maturity date equals the term of the lease.
PMTS ACCR
The number of payments accrued is displayed.
DAYS DELQ
The number of days from the most delinquent payment date to the current date is displayed. A switch on the New Lease screen of the Portfolio update [U0212NL] allows an alternative calculation of number of days delinquent which presumes all months have 30 days.
DAYS SUSP
The number of days since the suspension effective date is displayed.
NET INVESTMENT
The net investment for the lease is displayed. It is calculated as follows:
For precomputed interest leases:

CONTRACT RECEIVABLE
+ RESIDUAL
- UNEARNED INCOME (LESSOR + VENDOR + ITC + INVESTOR)
+ UNAMORTIZED IDC
For simple interest leases:

ACCRUED PRINCIPAL
For operating leases:

NET BOOK VALUE
= (LEASED ASSET COST - ACCUMULATED DEPRECIATION)

ESTIMATED PAYOFF
The payoff amount as of the suspension effective date is displayed. For interest bearing loans, if the suspension effective date is before the last payment effective date, the last payment effective date is used instead. "N/A" is printed for the ESTIMATED PAYOFF if the payoff amount cannot be calculated. Generally, this means that the payoff method from the lease form code is invalid for the lease.
LAST PMT DATE
The date a lease payment was last processed on the system is displayed.
MOST DEL INVOICE
The payment due date of the most delinquent invoice is displayed.
TOTALS
Page totals for number of leases, net investment and estimated payoff are shown by office. Group totals are shown if customer/group is selected. Suspended and Non-accrual leases are totaled separately Region, company, portfolio, and grand totals are shown for number of leases (Suspended and Non-Accrual), net investment and estimated payoff. Customer totals are shown if customer/group is selected.

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.