Overview Selection Adjustment Method Selection Payment Schedule Update Mode RSC - Payment Reschedule Audit Report The Generic Reschedule Reversal (RSCR) Adjustment Method

The Generic Reschedule (RSC) Adjustment Method

LeasePak menu: Daily Work [U01], Payment Reschedule[U0104]

Corresponding End of Period process: None
Related to : Payment Reschedule [U0104]

This method is also known as the "Free Schedule" method since it allows users to define a payment schedule freely just like at the time of application definition. The reschedule will be applicable for the remaining payments. For Asset Focus leases, payment rescheduling is only allowed using this method. Payment reschedule adjustments for Asset Focus leases can be both: Asset to lease level (bottom to top), or Lease to Asset (top to bottom). For more on payment rescheduling for Asset Focus leases, click here.

P, C, R, O, Lease Selection

At the selection screen you may select a single lease by specifying its lease number, or select multiple leases by specifying the P, C, R, O accounting units.

See instructions for selection on the main page for Payment Reschedule [U0104].

Adjustment Method Selection

After selecting the lease, or leases (for the PCRO to reschedule payments), the next requirement is to select the adjustment method - which in this case is RSC.

See instructions for adjustment method selection on the main page for Payment Reschedule [U0104].

Payment Schedule Update Mode

Financial, Asset

This screen appears only if the ADJUSTMENT METHOD is RSC. It is used to change relevant financial data for the asset and/or lease. The existing security deposit, book IDC, asset number(s), asset cost(s), and asset residual value(s) for the lease are displayed.

The asset information is not displayed for operating leases.

Field Description

IDC Amount

(Optional)

This is the Book IDC calculated by LeasePak. Increase it, if desired. INITIAL DIRECT COST may not be decreased.

Neither Notary Fee (IDC2) nor IDR fields (Registration Fee, Vendor Subsidy, Opening Commission, Insurance Fee) can be adjusted on this screen.

Security Deposit

(Optional)

Enter amount for security deposit, if required. If the lease is subject to advanced invoicing, any increase in security deposit must have already been received. LeasePak will not bill additional security deposit in these cases.

Security Cash Rec'd

(Mandatory)

Enter 'Y' or 'No' to specify whether the security deposit payment is in cash.

This field becomes available if security deposit changes.

Sec Chk

(Conditional)

Enter the payment check number. This field becomes available if Sec Cash Rec'd is set to 'Y' and is mandatory.

Bank

(Optional)

The bank code of the deposit account. By default, this will be 125.

Paydown Amt

(Conditional)

This amount is used to pay down a portion of the outstanding principal of a precomputed lease. The PAYDOWN amount field will only be accessible for an RSC payment adjustment method. The paydown amount should not exceed the outstanding principal of the lease. The new contract receivable and the lessor unearned income will be adjusted by the paydown amount, which will be reflected in the following two G/L transactions.

General Ledger Account	Amount
DR Cash	PAYDOWN
CR Contract Receivable
DR Contract Receivable	NEW CONTRACT RECEIVABLE -ORIGINAL CONTRACT RECEIVABLE + PAYDOWN
CR Unearned Income

A paydown is not allowed for RES method extended leases on a cash or accrual basis as these types of leases do not have contract receivable.

Click OK to continue to the payment schedule.

Asset Detail

This screen appears for Interest Bearing Loans only and shows the detail of assets attached to the loan.

Field Description

Asset

(Read-Only)

Shows the asset number.

Cost

(Read-Only)

Shows the acquisition cost of the asset.

Residual

(Read-Only)

Shows the residual amount set for the asset.

New Residual

(Optional)

Shows and sets the new residual amount to set for this asset.

Payment Schedule

Field Description

Contract End Date

(Optional)

This field appears only for Interest Bearing Loans. It sets the new contract end date for the reschedule. LeasePak checks that the Contract End Date is on or between:

1)  the accrued-to date minus one month plus one day and
2)  the accrued-to date plus one month minus one day

Remaining Pmt Schedule

(Read-Only)

Shows the number of payments for every entry which builds up the payment schedule. Based on the term entered, starting payment number and ending payment number of the current payment schedule line are displayed. This information is useful when entering irregular payment schedules for a lease. For example:

Payment Schedule	Frequency	Number	Amount
1-36	MON	36	100.00
37-60	MON	24	200.00

Number

(Mandatory)

Shows the number of payments for this schedule entry.

If one or more fixed payment schedules are entered followed by 999 as the NUMBER of the last payment schedule, the lease will automatically convert to a month-to-month lease at the end of the fixed term.

Frequency

(Mandatory)

Shows the frequency of payments. Valid payment frequencies are:

MON - Payments are due monthly (12 payments per year).
QTR - Payments are due quarterly (4 payments per year).
SEMI - Payments are due semi-annually (2 payments per year).
ANNL - Payments are due annually (1 payment per year).
SKIP - Payment is skipped for the month(s) indicated (no lease payment due). A payment AMOUNT may not be entered with SKIP as FREQUENCY code.
ADVQ - Quarterly payment is due in advance.
ADVS - Semi-annual payment is due in advance.
ADVA - Annual payment is due in advance.

Start Date

(Read-Only)

Shows the initial date of the payment stream.
If one or more fixed payment schedules are entered followed by 999 as the NUMBER of the last payment schedule, the lease will automatically convert to a month-to-month lease at the end of the fixed term.

End Date

(Read-Only)

Shows the final date of the payment stream.

Amount

(Mandatory)

Shows the payment amount. This does not include the use tax. LeasePak automatically calculates the use tax amount at time of accrual.

Click OK after modifying the payment schedule or accepting the existing one.

Verification

LeasePak will ask for confirmation. Enter 'Y' in the field for Adjust payment schedule (Y/N)? and click OK if you want to continue with your changes to the payment schedule.

RSC - Payment Reschedule Audit Report

The Payment Reschedule Audit report [U0104B] provides the following information for each lease whose payment schedule is changed using the RSC ADJUSTMENT METHOD.

For detailed information on the data shown on the report, refer to their field descriptions on the previous Payment Reschedule update screens.

The Generic Reschedule Reversal (RSCR) Adjustment Method

Reverses the most recent deferment to the specified lease. The following criteria applies for reversing Generic Reschedules:

• RSC must be the last payment reschedule method for a lease. Reschedule will fail if the lease was later again rescheduled using a different rescheduling method for example, CPI, RWT.
• LeasePak will not allow reschedule reversals for leases that have an asset paid off using the Asset Payoff [U0103] update, or a new asset attached using Asset Add On[U0113] update, after their reschedule using the RSC method.
• Users will need to confirm that the current data for the following fields matches with that after the RSC reschedule was performed. If not, the users may need to reverse them using their appropriate reversal updates:
  • Current payment schedule; if there were any payment extensions to change the payment schedule, reverse them.
  • Accruals; if these do not match with those after RSC reschedule performed, reverse the accruals using Cycle Accruals [U0301] update.
• For leases extended using the Lease Extension [U0108] update, RSC reschedule is irreversable.
• For security deposit fee:
  • Amount received, not yet invoiced - No action required.
  • Amount received and included in invoice then;
    1. If the fee is not fully or partial paid (e.g. through U0102-Payment, U0305 Batch Payment or U0125 Cash Control) and the fee amount has not changed through U0105-Assessment, then user does not need to do anything.
    2. If the fee is fully or partial paid (e.g. through U0102-Payment, U0305 Batch Payment or U0126 Cash Control), user requires to do payment reversal to reverse the payment first, the user shall then be able to reverse the RSC payment reschedule.
    3. If the fee has changed through U0105-Assessment, user needs to go to U0105 to change the fee back to its original value first then shall the user be able to reverse the RSC payments reschedule.

To reverse a deferred payment schedule, you will need to:

1. Open the Payment Schedule [U0104] dialog and select the lease to reverse the schedule for and click OK.
2. Select RSCR from the Adjustment Method list.
3. Click OK.
4. LeasePak will display the existing financial settings and the payment schedule for the lease. Click OK to continue.
5. LeasePak will ask to confirm the reversal action by typing 'Y' in the Adjust Payment Schedule (Y/N)? box. Continue by typing 'Y' followed by clicking OK to continue with the reversal action.

LeasePak  Documentation Suite

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