Rebook [U0116]

Contents

 

Introduction

The Rebook update can be accessed either through the LeasePak Updates menu, Rebook option or by entering U0116 into the Fast Menu <F2>.

The update is used to correct information entered in the first seven screens of the Book Lease option of the New Lease update [U0101]. This information includes:

Since the Rebook update [U0116] is used to correct input errors, this update should not be used to record midpoint changes in a lease. For example, if a new asset is to be added to a lease starting in month 6 of the lease contract, then the Asset Add-on update [U0113] should be used to add the asset. If, however, an asset should be attached to the lease starting at lease commencement but was mistakenly left off the lease, then the Rebook update [U0116] should be used to correct the error.

Any changes recorded during Rebook cause the information on file for the lease to adjust as if the change were entered during New Lease booking. To accomplish this, all transactions affecting the lease are reversed so that the lease looks as if it were never booked, e.g., all income earned is reversed. Then, adjustment(s) to the lease are made and the lease is returned to its current point (e.g., income is reaccrued for the lease based on the new financial information). Because the accrual process is reversed, all payments that may have been applied to the lease, including payments received at the time of booking, must be reversed before the Rebook update [U0116] is run. After rebook is complete, the payments should be reapplied. Note that amounts must be assigned through the Session update [U0111] in order to process any payments due at lease commencement through the Rebook update [U0116].

Note: Use tax is calculated based on 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.

Note: A maximum of 100 payments can be reversed on an interest bearing loan. If more are attempted, a message appears: "Exceeded array size in LSLSTPRADJ program. Contact Client Services. Press return." It is possible for MSI's Client Services to erase old records from the RPC (principal change) file so that more reversals can be performed, if necessary.

Note: Prior to 2.2a, LeasePak would only calculate the percent of schedule based on the weighted share of total acquisition cost on all assets. Now in 2.2a, LeasePak allows for an alternate calculation for percent of schedule based on the weighted share of the total payment amount. See EBV Payoff Method in the Calculations Document of the Reference Guide as well as the Miscellaneous Customizations option of the Custom General update [U0712].

Any update which adjusts the financial information of a lease (e.g., the Lease Payoff option, Asset Payoff option and Asset Termination option of the Payoff update [U0103], the Payment Reschedule update [U0104], the Lease Extension update [U0108], or the Asset Add-on update [U0113]) disallows a rebook for that lease. That is, a rebook may not be performed for a lease which has had an asset added onto it through the Asset Add-on update [U0113] or which has had an asset paid off or terminated through the Payoff update [U0103], etc. Refer to the REBOOK ALLOWED (Y/N) field of the Accrual section of the Lease Inquiry report [R0905] to see if a rebook is allowed for a lease.

The status of a non-accrual lease has to be changed to active status prior to rebook.

If an Automatic Lease Extension [U0108] has been added for the lease being rebooked, a warning message "Auto Lease Extn info exists. Use [U0108AX] to correct info" appears just before the rebook is processed. This message does not prevent rebooking. However, it will prevent the automatic extension from occurring when the lease reaches maturity, unless the user follows the warning and uses [U0108AX] to change extension information. It is necessary to access [U0108AX] even if no change to extension information is actually required. At lease maturity, if [U0108AX] has been used, the lease will be extended automatically. If it has not been used, the lease will appear on the Automatic Lease Extension Exception report [U0430A] and extension information will have to be entered manually on [U0108LX].

 

Audit Reports

The following audit reports will be generated after rebooking a lease. Report layouts are identical to Lease Inquiry [R0905]. Refer to documentation for [R0905] for report field descriptions.

Some applicable Lease Inquiry report sections:

Refer to the Adjust Original Cost option of the Change Asset update [U0120] on changing the starting cost, other charges, or residual of an assets that has come off-lease.

 

Lease Selection

This screen is used to specify the lease to be rebooked.

 

Assets on Lease

This screen is used to add additional assets to the lease, change the cost, other charges, and residual of the asset(s) on the lease, and to delete assets put on in error. To delete an asset means to place it back into inventory, so it may be booked onto another lease or sold using the Sale of Asset in Inventory option of the Payoff update [U0103]. The sums of the asset(s) costs, other charges, and residuals are calculated and displayed after changes are entered. This screen should be used only if the original list of assets for this lease was entered incorrectly during New Lease booking.

Note: LeasePak allows operating type assets to be booked with a RESIDUAL that exceeds the ACQUISTION COST.

The field CHANGE IDC METHOD FROM AMOR TO INCM (Y/N) appears only if the IDC ACCOUNTING METHOD parameter on the second screen of the New Lease Customizations option of the Portfolio update [U0212] has been changed from AMOR to INCM since the lease was booked.

 

Fees, Payment Schedule

This screen is used to modify the financial information and payment schedule(s) for the lease.

A lease originally booked as an operating lease may not be changed to a non- operating lease in the Rebook update [U0116] and vice versa, because the Change Asset update [U0120] allows the changing of the book accounting method only for off-lease assets. To change from an operating lease accrual method to a non-operating accrual method and vice versa, remove the lease using the Remove Lease option of the New Lease update [U0101], then change the book accounting method of the asset(s) using the Change Depreciation option of the Change Asset update [U0120], and finally book the lease again using the Book Lease option of the New Lease update [U0101].

 

Participation, Rates

 

Precomputed, Operating Lease - Vendor/Investor Participation

This screen is used to enter participation factors for the vendor and investor, if applicable, under all lessor accrual methods except simple interest. The CONTRACT FACTOR is calculated and displayed for precomputed interest leases but not for operating leases.

When RETURN is pressed, yields are calculated and displayed. A message appears indicating that yields are displayed on the screen. The yields should be checked to verify that they fall within the normal range. If not, the financial information may be incorrect.

Yields are not calculated for month-to-month operating leases, since they cannot be determined until after the lease is terminated.

The next sample screen appears if the lessor accrual method (ACCRUAL LESSOR) is a simple interest method.

Not applicable to operating leases.

 

Simple Interest Lease, Interest Bearing Loan - Rates

This screen is used to enter the lessor rate and the vendor and investor to be associated with this lease if the lessor accrual method (ACCRUAL LESSOR) is a simple interest method.

If the accrual method is not VT or VL (the simple interest principal portion of the payment only is entered in the payment schedule), when RETURN is pressed, the lessor yield is calculated and displayed. A message appears indicating that the yield is displayed on the screen. It should be checked to verify that it falls within the expected range of values for the yield. If not, the financial information may be incorrect.

For VT and VL methods, only the principal portion of the lease payments is entered into the payment schedule; these methods do not require an internal yield calculation. The previous sample screen is used if the lessor accrual method is a precomputed or operating lease method.

 

IDC/IDR (Vehicle Finance)

This screen appears in the Rebook option when the Vehicle Finance module is purchased. This option allows the user to enter or modify IDC/IDR information for the lease that is being rebooked. These fields may be customized on the IDC/IDR screen in the Assessment Customization option of the Portfolio update [U0212].

The IDC/IDR fees entered will be tracked during the lease, as well as provide an Amortization Schedule based on the accrual methods used when the lease was booked.

The fifty-three additional G/L accounts that have been added in LeasePak v3.1a will track receivables, fees, expenses, debits and credits. All G/L accounts can be reconciled via the Lease Inquiry [R0905]. Specific accounts may reconciled via the G/L Reconciliation [R0403], G/L Entries Listing [R0406] and the Master G/L Reconciliation [U0460] reports. Refer to General Ledger Accounting for detailed information..

When the Partial Deductions module is purchased, all A/R records will default to the lease at time of rebooking.

Leases with Operating type accrual methods will be amortized with straight line methods. All other accrual methods, will be amortized with a proportional income basis method. However, IDRC-Warranty Insurance will use only straight line methods.

Leases that are booked with precomputed methods will use a straight line amortization schedule when the following applies:

If the Sum of Payment Schedule - Total Contract Aquisition Cost = (+/ -) 0.99

Leases that are booked with IBL type accrual methods must have the Estimated Unearned income manually entered into the L_EST_UE_D field in the RAP table in order to calculate the earned IDC/IDR:

New Earned IDC/IDR: ((Lessor Rental Income Y-T-D/Estimated Unearned) *Original IDC/IDR) - IDC/IDR Y-T-D

If there is nothing entered in this field, LeasePak will calculate the Estimated Unearned as follows:

Estimated Unearned = Minimum Payments Receivable - Total Contract Acquisition Cost

The Total Contract Acquisition Cost is calculated as follows:

+ Unguaranteed Residual
- (Acquisition Cost - Down Payment)
- Other Charges

Minimum Lease Payments Receivable is calculated as follows:

Number of Payments * payment amount (according to payment schedule)
+ Guaranteed Residual
+ Interim Rent (when Interim Rent is set to N in [U0212NL])

If the yield/rate (Total Interest Rate) is zero, a straight line amortization method will be used for IBL's.

Note: The INCLUDE IDC IN 'NPV' and 'OPR' PAYOFFS' switch in the Payoff Customizations option of the Portfolio [U0212] update have no affect on the new IDC/IDR fields.

Enhanced IDC/IDR, supports the following accrual methods when only one asset is tied to the lease:

Field Descriptions

 

Dates, Codes

This screen is used to modify various fields for the lease.

 

Recurring Charges, Revolving Credit


This screen is used to enter or modify recurring charges. Standard recurring charges and the Extended Recurring Charges module are described in the recurring charges screen of Book Lease [U0101].

 

Revolving Credit

This half of the screen is accessible when Enter is pressed. These fields allow the uset to enter or Rebook the Revolving Credit Limit as well as enter the Insurance Risk Fee %.

Monthly = Acquisition Cost x Rate
Quarterly = Acquisition Cost x Rate x 3
Semi-Annual = Acquisition Cost x Rate x 6
Annually = Acquisition Cost x Rate x 12

Note: LeasePak will automatically assess the charges regardless of the number of days insurance coverage was missing, the full fee will be charged based on the monthly, quarterly, semi- annually or annually.

Note: If the lease is back-dated and an insurance risk fee percentage has been entered, LeasePak will not perform a 'catch- up' for the insurance risk fee.

When Insurance Risk Fee [U0428] is selected in the MODULES AND REPORTS screen of the End of Period Customization [U0212], the module will run under Sequential updates [U0411]. When EOP processes are submitted for EOD, the Insurance Risk Fee will be automatically be calculated on the lease. It will then be recorded to the G/L and appear on the following months invoice through another EOP with the Batch Assessment module on.

Additional fee percentages may be added and maintained through the Custom Code update [U0722].

 

Preauthorized Payments (PAP)

This screen defaults the PAP ACCOUNT number and the PAP INSTITUTION ID for the Lessee. This screen is displayed only if:

 

Capital Cost Allowance (CCA)

This screen is used to enter notional loan information for the purpose of Capital Cost Allowance calculations. This screen is displayed only if:

 

Amounts Due at Commencement

 

If the Partial Deductions module is purchased and used to book this lease, refer to the next screen sample instead. This screen is used to specify which amounts due at lease commencement have actually been received. Standard recurring charges and the Extended Recurring Charges module are described in the recurring charges screen of Book Lease [U0101].

Tax on advance payment(s), down payment, registration fee, insurance fee, vendor subsidy, opening commission and interim rent are automatically calculated unless a recurring charge with the special type of tax is in effect on the lease comencement date. If tax is treated as a recurring charge, these tax amounts are zero and the tax is included in the amount shown for the 'tax' recurring charge.

Note: Recurring charge tax type (T) is not supported in combination with the Sales Tax on Assessments module. Only one or the other may be active.

This screen also displays miscellaneous lease information which may be checked against the lease agreement.

 

Amounts Due at Commencment (Partial Deductions)

If the Partial Deductions module was not used during the booking of this lease, refer to the previous screen sample instead.

This screen is used to specify how the amounts due at lease commencement are to be processed if the Partial Deductions module is purchased. All or a part of each amount may be received, invoiced, or used to reduce the accounts payable to the vendor, or any combination of the three. If an over payment occurs (both lessor and the vendor received a check, for example) an amount may be placed in suspense.

The tax amounts for the advance payment(s), down payment, and interim rent are automatically calculated unless a recurring charge with the special type of T (tax) is in effect on the lease commencement date. These tax amounts are zeroed and an amount equal to the tax is included in the amount shown for the tax recurring charge.

Note: Recurring charge tax type is not supported in combination with the Sales Tax on Assessments module. Only one or the other may be active

This screen also displays miscellaneous lease information which may be checked against the disclosed lease agreement calculations. Refer to the documentation for the previous screen for further information on these display-only, informational fields.

 

This screen is used to specify how the total A/P reduction is to be allocated among the assets. This screen will appear if the Partial Deductions module is purchased and A/P amounts were specified on the previous screen. Without Partial Deductions, LeasePak would automatically reduce the asset's A/P balance first-come first-served. By using this screen the user may allocate A/P to the asset(s) desired and for the amount(s) desired.

 

LeasePak  Reference Guide

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