The Consumer Price Index (CPI) Adjustment Method
LeasePak menu:
Daily Work [U01], Payment Reschedule[U0104]
Corresponding End of Period process: None
Related to
: Payment Reschedule [U0104]
Related to
Used when the payment amounts for the remainder of the payment schedule are adjusted by adding an amount that depends on a float rate index, such as the consumer price index. Use this method to make an annual lease anniversary adjustment to a lease or group of leases.
Leases to be adjusted must meet 3 criteria:
- Lessor accrual method must be one of the precomputed methods.
- Lease must have a FLOAT INDEX code. (Refer to Book Lease update [U0101] for coding.)
- Month portion of LEASE DATE must match month portion of PROCESSING DATE
Adjustments are
calculated as follows:
First, LeasePak calculates the average base rate during the processing
month entered for the financial institution coded as the lease’s
float index.
Next, LeasePak multiplies future payment amounts for the lease by that
average percentage to get an additional amount.
Finally, LeasePak adds the calculated amount to each future payment.
For example, if 09/95 is entered as the PROCESSING MONTH, all leases
with a LEASE DATE in September of any year before and including 1995
have their future payment amounts adjusted upward. If such a lease’s
FLOAT INDEX is coded 2, and 2 represents Morgan Prime, then that lease’s
rents will be adjusted by the average float rates in September 1995
for Morgan Bank
CPI Verification
Field Description
Adjust Payment Schedules-
(Mandatory)
Type 'Y' to have the selected leases adjusted.
Adjust Payment SchedulesCPI Payment Reschedule Exception Report
- Portfolio
-
(Display)
Shows the portfolio number.
Portfolio
- Company
-
(Display)
Shows the company number.
Company
- Region
-
(Display)
Shows the region identifier.
Region
- Office
-
(Display)
Shows the office identifier.
Office
- Lease
-
(Display)
Shows the lease number.
Lease
- Type of Error
-
(Display)
Shows the descriptive messages for the errors encountered.
Type of ErrorException Messages
- FINANCIAL
INSTITUTION DOES NOT EXIST
The Financial Institution record does not exist on the Names (DRNM) file. Add the financial institution through the Financial Institution Name update [U0708].
- FLOAT
RATES RECORD DOES NOT EXIST
Float rates record does not exist on the Daily Base Rates (DRPR) file. Add the base rates through the Base Rates update [U0705].
- FAILED
TO UPDATE FILES
File updating could not be completed. This message indicates a data error. Notify your customer support representative at NetSol.
- LEASE
ACCRUAL METHOD MUST BE PRECOMPUTED
Lessor accrual method is not precomputed and lease cannot be adjusted. Verify that this is the correct lease to be processed. If this is the correct lease, change the lessor accrual method to be a precomputed type using the Rebook update [U0116].
- LEASE
HAS VENDOR PARTICIPATION
Lease contains vendor participation and cannot be adjusted. Verify that this is the correct lease to be processed. If this is the correct lease, rebook it without vendor participation using the Rebook update [U0116].
- LEASE
HAS INVESTOR PARTICIPATION
Lease contains investor participation and cannot be adjusted. Verify that this is the correct lease to be processed. If this is the correct leas, rebook it without investor participation using the Rebook update [U0116].
- LEASE
IS AT THE MAXIMUM PAYMENT SCHEDULE
The lease is currently using all 360 payment schedule positions. No additional payment schedule entry may be made. Notify your customer support representative at NetSol.
- LEASE
IS OUTSIDE PAYMENT SCHEDULE
The number of payments accrued does not match the lease’s payment schedule. This message indicates a data error. Notify your customer support representative at NetSol.
- LEASE
MUST BE ACTIVE
Lease is not active (i.e., is paid off or charged off). Verify that this is the correct lease to be processed. If this is the correct lease to be processed, reverse the payoff using the Payoff Reversal option of the Payoff update [U0103] to return the lease to its status prior to the payoff.
- LEASE:
XXXX IS LOCKED
Where ‘xxxx’ is the lease number. The Lease record on the Lease (DRLS) file is locked. Try executing the Payment Reschedule update [U0104] again.
- NO
EXCEPTIONS FOUND
No errors were detected. All updating completed successfully.
- PORTFOLIO:
XXXX DOES NOT EXIST
Where ‘xxxx’ is the portfolio number. The portfolio record on the Portfolio (DRAP) file does not exist. This message indicates a data error. Notify your customer support representative at NetSol.
- PORTFOLIO:
XXXX IS LOCKED
Where ‘xxxx’ is the portfolio number. The portfolio record on the Portfolio (DRAP) file is locked. Try executing the Payment Reschedule update [U0104] again.
- PORTFOLIO:
XXXX NEXT READ 1 FAILED
Where ‘xxxx’ is the last portfolio number read. This message indicates a data error. Notify your customer support representative at NetSol.
- PORTFOLIO:
XXXX NEXT READ 2 FAILED
Where ‘xxxx’ is the last portfolio number read. This message indicates a data error. Notify your customer support representative at NetSol.
- YIELD
COULD NOT BE CALCULATED
A yield could not be calculated with the adjusted financial information. This message indicates a data error. Notify your customer support representative at NetSol.
LeasePak Documentation Suite
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The information contained in this document is the property of NetSol Technologies Inc. Use of the information contained herein is restricted. Conditions of use are subject to change without notice. NetSol Technologies 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 NetSol Technologies Inc. is prohibited.