Cost Per Use
Overview document (not a LeasePak menu item)
Corresponding End of Period process: None
Descibes Cost Per Use meters, a feature that allows the user to attach a meter definition to either a pending/booked asset or an application/lease, then enter meter readings and assess cost per use charges. Requires the optional Cost Per Use module.
Asset- vs. Lease-Level Meters
When you attach one or more meters (up to 4) to an individual pending or booked asset at the asset level, LeasePak tracks meter readings and assessed charges for the individual asset, using an asset-level general ledger assessment account.
When you attach one or more meters (up to 4) to an entire application or lease at the lease level, you can still associate meters with particular assets on the application/lease (up to 4 per asset), but LeasePak tracks meter readings and assessed charges for the whole lease, using a lease-level general ledger assessment account.
Do not use both asset- and lease-level meters on the
same application or lease. This will result in unexpected and erroneous LeasePak behavior.
Portfolio [U0212]: Miscellaneous Customizations
Before attaching meters to an asset or application/lease, you must first specify the assessment(s) to use for meter charges.
For asset-level meters, use the field Cost Per Use Assmt Code in Portfolio [U0212]: Miscellaneous Customizations to specity an asset-level assessment. The following choices are available:
- FHUT - Federal Highway Use Tax
- PRTX - Property Tax
For lease-level meters, use the field Lease Cost Per Use Assmt Code in Portfolio [U0212]: Miscellaneous Customizations to specity a lease-level assessment. The following choices are available:
- ASMF - Assumption Fees
- COLL - Collection Fees
- ITCF - ITC Fees
- LEGF - Legal Fees
- LEXT - Lease Extension Fees
- LSRW - Lease Re-Write Fees
- OTHF - Other Fees
- PEXT - Pmt Extension Fees
You can use Sales Tax on Assessments with any of these assessments. If your LeasePak license includes the Rename Assessments module, you can change the names of these assessments through Assessment Customizations, and you can modify the names used for the accounting transactions through Office G/L Change.
Application Tracking [U08]
For asset-level meters on pending assets, use Asset Meter Maintenance from the Application Tracking [U08] menu. This starts the Asset Meter Maintenance [U0231] update for pending assets.
For lease-level meters on applications, use Application Meter Maintenance from the Application Tracking [U08] menu. This starts the Lease Meter Maintenance [U0233] update for applications.
For booked assets and leases, you can access the appropriate meter maintenance updates from the LeasePak main menu.
Asset Meter Maintenance [U0231]
To add, change, or delete asset-level meter definitions, use Asset Meter Maintenance [U0231], either through Application Tracking [U08] (for pending assets), or directly from the LeasePak main menu (for booked assets in inventory or attached to a lease).
Lease Meter Maintenance [U0233]
To add, change, or delete lease-level meter definitions, use Lease Meter Maintenance [U0233], either through Application Tracking [U08] (for applications), or directly from the LeasePak main menu (for booked leases).
Tier-Based Pricing
The Cost Per Use module employs a tier-based pricing system. The following are setup and assessment examples of 4-tier pricing.
Setup
Base Allowance = 3,000
| Tier | Start Range | End Range | Cost Per Use |
|---|---|---|---|
| 1 | 3,001 | 8,000 | $0.00090 |
| 2 | 8,001 | 12,000 | $0.00080 |
| 3 | 12,001 | 20,000 | $0.00070 |
| 4 | 20,001 | -1 | $0.00060 |
Assessment
Previous Meter Reading: 112,000
New Meter Reading: 136,000
Difference: 24,000
| Number of Uses | Cost Per Use | Assessment | |
|---|---|---|---|
| 0 - 3,000 | $0.00000 | $0.00 | |
| 3,001 - 8,000 | $0.00090 | $4.50 | |
| 8,001 - 12,000 | $0.00080 | $3.20 | |
| 12,001 - 20,000 | $0.00070 | $5.60 | |
| 20,001 + | $0.00060 | $2.40 | |
| Totals | 24,000 | N/A | $15.70 |
Tier-Based Service Credits
Using the same setup as assessments, service credits are divided appropriately among the tiers and converted to corresponding credit amounts. In the event that there are more credits than uses during a cycle (month or time between meter readings), the excess service credits will roll over and become available for the next cycle, unless the number of uses during a cycle are less than the Base Allowance. In that case, all uses are charged at the base ($0.00000 per use) rate and no service credits roll over for the next cycle.
Example 1: (based on the tiers described in the previous section)
number of uses > the Base Allowance
number of service credits < number of uses.
Previous Meter Reading: 112,000
New Meter Reading: 136,000
Difference: 24,000
Service Credits Available: 8,000
| Number of Uses | Service Credits | Cost Per Use | Assessment | Credit Amount | |
|---|---|---|---|---|---|
| Base | 3,000 | N/A | $0.00000 | $0.00 | $0.00 |
| 1 | 5,000 | 5,000 | $0.00090 | $4.50 | $4.50 |
| 2 | 4,000 | 3,000 | $0.00080 | $3.20 | $2.40 |
| 3 | 8,000 | 0 | $0.00070 | $5.60 | $0.00 |
| 4 | 4,000 | 0 | $0.00060 | $2.40 | $0.00 |
| Totals | 24,000 | 8,000 | N/A | $15.70 | $6.90 |
Assessment - Credit Amount = $8.80
Example 2: (based on the tiers described in the previous section)
number of uses > the Base Allowance
number of service credits > number of uses over the Base Allowance.
Previous Meter Reading: 112,000
New Meter Reading: 136,000
Difference: 24,000
Service Credits Available: 23,000
| Number of Uses | Service Credits | Cost Per Use | Assessment | Credit Amount | |
|---|---|---|---|---|---|
| Base | 3,000 | N/A | $0.00000 | $0.00 | $0.00 |
| 1 | 5,000 | 5,000 | $0.00090 | $4.50 | $4.50 |
| 2 | 4,000 | 3,000 | $0.00080 | $3.20 | $3.20 |
| 3 | 8,000 | 8,000 | $0.00070 | $5.60 | $5.60 |
| 4 | 4,000 | 4,000 | $0.00060 | $2.40 | $2.40 |
| Totals | 24,000 | 20,000 | N/A | $15.70 | $15.70 |
Assessment - Credit Amount = $0.00
Service credits rolled over to the next cycle: 3,000
Example 3: (based on the tiers described in the previous section)
number of uses < the Base Allowance
Previous Meter Reading: 112,000
New Meter Reading: 114,500
Difference: 2,500
Service Credits Available: 8,000
| Number of Uses | Service Credits | Cost Per Use | Assessment | Credit Amount | |
|---|---|---|---|---|---|
| Base | 3,000 | 8,000 | $0.00000 | $0.00 | $0.00 |
| Totals | 2,500 | 8,000 | N/A | $0.00 | $0.00 |
Assessment - Credit Amount = $0.00
Service credits rolled over to the next cycle: 0
Assess Meter Charge [U0131]
To enter meter readings and assess charges to either asset- or lease-level meters interactively, use Assess Meter Charge [U0131].
You can also assess readings and charges in batch mode using LeasePak Utility 224: Cost Per Use Import File, described later in this document.
Invoicing Assessed Charges
LeasePak will place the meter charge assessment on the next invoice to be accrued for an asset tied to a lease. For users without the Off Lease Billing module, if the lease has stopped accruing, LeasePak will place the assessment on the most recent invoice; in this case, multiple assessments may be placed on the same invoice over time.
For users with the Off Lease Billing module, LeasePak will only place multiple assessments on the same invoice if accruals are stopped due to the lease being in a non-accrual hold status.
The following is an example of how meter assessments appear on the invoice scratch file:
<inv #1> 213 <due #1>890506 <cm #101>N <asm #101>FED HIWAY USE TX FEE <asm type #101>FHUT <asm amt #101>0000000850 (METER TRANSACTION BEG) <meter unit> 81 <meter id> BW <meter desc>Black and White <meter prv read>0000000000120000 <meter new read>0000000000137000 <meter usage beg>890316 <meter usage end>890416 <meter base allow>0000004000 <meter prv credit>0000000000 <meter new credit>0000003000 <meter apl credit>0000003000 <meter charge>0000000760 <meter item tier#01>00004000 <meter rate tier#01>00000090 <meter item tier#02>00004000 <meter rate tier#02>00000080 <meter item tier#03>00005000 <meter rate tier#03>00000070 (METER TRANSACTION END) (METER TRANSACTION BEG) <meter unit> 81 <meter id> BW <meter desc>Black and White <meter prv read>0000000000137000 <meter new read>0000000000142000 <meter usage beg>890416 <meter usage end>890516 <meter base allow>0000004000 <meter prv credit>0000000000 <meter new credit>0000000000 <meter apl credit>0000000000 <meter charge>0000000090 <meter item tier#01>00001000 <meter rate tier#01>00000090 (METER TRANSACTION END)
Notes
You must use one of the Cost Per Use updates to either assess or reverse meter charges. Once you specify an assessment to use with Cost Per Use, you cannot assess or waive charges for that assessment through other LeasePak assessment/waiver updates, such as Assessment [U0105] or Batch Assessments [U0418].
Reverse Meter Charge [U0132]
To reverse meter assessments on either asset- or lease-level meters interactively, use Reverse Meter Charge [U0132].
You can also reverse readings and assessments in batch mode using LeasePak Utility 224: Cost Per Use Import File, described later in this document.
Reversal Procedures
These are examples of different procedures you can use when reversing and reassessing multiple meter charges. Each example uses the following set of assessments:
| Invoice Date | Period Start | Period End | Meter Reading |
|---|---|---|---|
| 04/15/ | 03/15/ | 04/15/ | 1,000,080 |
| 05/15/ | 04/15/ | 05/15/ | 1,001,111 |
| 06/15/ | 05/15/ | 06/15/ | 1,002,002 |
Example 1: combine all charges into one period.
- Reverse all payments made to the three invoices
- Reverse all meter charges, including the first one with the meter reading 1,000,080
- Assess a new meter charge using a new meter reading of 1,002,002
- Reapply reversed payments.
Example 2: re-assess charges on the original invoices.
- Reverse all payments made to the three invoices
- Reverse all meter charges, including the first one with the meter reading 1,000,080
- Reverse accruals to remove all three invoices
- Re-assess a meter charge for the 04/15/ invoice with using a new meter reading of 1,000,080 (or the corrected reading)
- Accrue the lease
- Reverse accruals to remove just the two most recent invoices
- Re-assess a meter charge for the 05/15/ invoice with using a new meter reading of 1,001,111 (or the corrected reading)
- Accrue the lease
- Reverse accruals to remove just the most recent invoice
- Re-assess a meter charge for the 06/15/ invoice with using a new meter reading of 1,002,002 (or the corrected reading)
- Accrue the lease
- Reapply reversed payments.
Example 3: re-assess charges individually on the next invoice.
- Reverse all payments made to the three invoices
- Reverse all meter charges, including the first one with the meter reading 1,000,080
- Assess a meter charge using a new meter reading of 1,000,080 (or the corrected reading)
- Assess a meter charge using a new meter reading of 1,001,111 (or the corrected reading)
- Assess a meter charge using a new meter reading of 1,002,002 (or the corrected reading)
- Reapply reversed payments.
For best results, MSI recommends using the procedures described in Example 2 or 3. For more information about reversal procedures, contact your MSI representative.
LeasePak Utility 224: Cost Per Use Import File
The LeasePak utilities are options of the
program $uexe/lpautil.exe. You must have direct access to the LeasePak server, either as the LeasePak administrative
user (lpadmin) or as the MSI release administrator (msiadmin), in order to run this program. Many of
the utilities can severely corrupt LeasePak and its databases; consult your MSI representative before running any of
them.
Terminal emulation: you must use one of the supported terminal types. Refer to System Requirements for more information.
Use this utility to load meter charge assessment and reversal information into the RBM table for processing by the End of Period (Sequential Updates, Daily) module Batch Meter [U0448] (described later in this document).
To use the utility, create a batch input file named p*_btchcpu.dat
(where * is the portfolio number) and place it in the data
directory of your LeasePak environment.
Each line of the batch input file must contain the following three elements separated by commas:
- Transaction type, either A for assessment or R for reversal
- Lease number, asset number or asset serial number, preceded by L if the lease number or U if the asset number or S is the serial number (with no space between the U or S and the following number)
- Meter ID, preceded by M (with no space between the M and the following ID).
For assessment transactions (type 'A'), you may also include the following:
- Meter reading, preceded by V (for Value), with no space between the V and the following value (also, do not use commas or other punctuation in the meter value)
- Service credits, preceded by C, with no space between the C and the number of credits (also, do not use commas or other punctuation in the credit number)
- Meter period end date, format YYMMDD, preceded by E (for End date), with no space between the E and the number of credits
These additional elements are also separated by commas. You can specify them in any order as long as you place them after the required elements.
Example 1
A,U12245,M0001,V12500,E040115
This line assesses Asset 12245, Meter 0001 with a meter reading of 12,500 and a meter period end date of 01/15/04.
Example 2
A,SSER#124912-23133,M0002,V550000,C2300
This line assesses an asset with serial number SER#124912-23133, Meter 0002 with a meter reading of 550,000 and 2,300 service credits.
Example 3
R,SSER#124912-23133,M0002
This line reverses the most recent meter charge made to the asset with serial number SER#124912-23133.
Once the batch input file is successfully loaded, the Batch Meter module (if set to run) will process it during the next End of Period.
Batch Meter [U0448]
This End of Period (Sequential Updates) module assesses and reverses meter charges loaded into the RBM table through LeasePak Utility 224: Cost Per Use Import File. The update produces two reports, Batch Meter Exception [U0448A] and Batch Meter Audit [U0448B]. If you wish to use this module, you must first turn it on in Portfolio [U0212]:End of Period Customizations, Modules and Reports.
Meter Transaction Journal [R0925]
Use the Meter Transaction Journal [R0925] to report on meter assessments and reversals. This is an interactive report--it does not have an End of Period counterpart.
LeasePak Documentation Suite
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by McCue Systems Incorporated. All rights reserved.
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.