The dealer reserve is a term used to define an amount given to a dealer for selling customer loans with higher interest rate from the original amount. This is the most common method used to facilitate dealers and for dealers to earn commission. It's a kickback paid amount to dealers by the finance company for bringing new customers. Dealer reserve is the interest amount/points that consist of two to four interest points additional to the interest rate. It is the difference between the interest charge and interest charge on contract.
Dealer Reserve works in conjunction with Enhanced IDC/IDR module. Users must purchase Enhanced IDC/IDR module to enable Dealer Reserve functionality.
When user books a lease from U0101 - Book lease, LeasePak stores input data from Add Asset about to add dealer reserve relevant field's value at asset level. LeasePak requires dealer plan code, dealer reserve amount, bulletin/promo number, program rate, buy rate, and dealer reserve pay to fields input at asset level to add an asset.
The U0101 Batch Application, and U0101 Quick Book Lease totals the dealer reserve amounts on the assets and process that total dealer reserve amount on the lease at the time of booking. The check type of DRES can disburse dealer reserves amount on check disbursal screen. LeasePak performs the automatic check disbursal at the time of batch booking. While booking a lease check type of DRES can disburse dealer reserve amount on the check disbursal screen. LeasePak stores dealer reserve amount at the asset level ad rolls up this amount to lease level. LeasePak records this lease level amount into the GL accounts. LeasePak produces GL transactions when booking lease in case of if the lease is booked therefore, the asset becomes payable once it is booked on lease (for pre-computed, operating and interest-bearing loan). for more deatils, see U0101 Book Lease. Dealer reserves payments can be disburse by U0101 Disburse Check update. Disburse Check update disburses dealer reserve payments by DRES type of disbursement. LeasePak defaults payee to the dealer in the asset's dealer reserve pay to field and users are not allowed to change this default value. Users must update the dealer's status to an ACTIVE status A through U0201 vendor or change the dealer reserves pay to value to an active dealer through U0210 Asset, or reduce the amount of dealer reserve payable to zero through U0225 IDC/IDR Adjustments. For more details, see U0101 Disburse Check. LeasePak allows a user to reverse dealer reserve checks. The U0101 Reserve Check update reverses a dealer reserves disbursement. LeasePak will only reserves checks in case of if the asset is on lease. LeasePak does not support reserve checks for assets in inventory or assets that have been sold. For more details, see U0101 Reverse Checks. Once lease has been created and user wishes to remove a lease, U0101 Remove Lease also supports for the dealer reserve amounts and reverse the GL transactions created for dealer reserves when user commits to remove a lease. For more details, see U0101 - Remove Lease.
LeasePak processes Payoff for dealer reserve. To Payoff dealer reserve, make sure that all the reserve payables have been disbursed before LeasePak payoffs for each asset. When lease processes Payoff LeasePak checks that whether or not a dealer reserve chargeback and the amount of chargeback should occure or not.
NOTE: If chargeback cannot find the transaction to reverse, LeasePak will not be able to process payoff. Otherwise, an error message prompts.
NOTE: If user attempts to payoff or terminate one asset, the amount of the dealer reserve payoff or termination general ledger transactions for that asset will be in the same proportion as the asset's dealer reserve amount to the total amount of dealer reserve on lease.
LeasePak maintains payoff/termination GL transactions of dealer reserve to the corresponding insurance premium accounts when processing payoff/termination for dealer reserves. For more details, see U0103 Payoff/Termination.
To process lease extension, LeasePak sets the value of dealer reserve field to zero when a lease is extended in the same manner that the current IDC/IDR fields are zeroed out. For more details, see U0108 Lease Extension. Dealer reserve and dealer reserve payable amount can be split by U0214 Split asset and U0112 Split/Merge QTY Asset updates. These amounts are the amounts of principle asset into a new asset. For more details, see U0112 Split Asset & U0214 Split Asset. To increase lease level dealer reserves, U0113 increases the lease level dealer reserves, when adding an asset with dealer reserve amount to an existing lease or interest bearing loan lease. For more details, see U0113 Asset Add-On. To transfer or move the dealer reserve fields and general ledger accounting transactions information from one PCRO key to another PCRO key. For more details, see U0114 Change Key. LeasePak maintains general ledger transactions (for pre-computed, operating and interest bearing loan) for Suspended Earnings(u0115) and when changing a lease from suspended earnings status back to a normal status.
Dealer reserve also allows to rebook a lease (IBL's as well). To rebook a lease with dealer reserve switch "Allow Dealer Reserve" must be turned on from U0212 Portfolio . The amount of dealer reserves cannot be changed in negative amounts if dealer reserve amounts are already disbursed. For more details, see U0116 Rebook. U0117 Cashier's Check Disbursal update disburses checks to allow dealer reserve disbursal. It also updates the dealer transaction history (RDH) table when dealer reserve amounts are being disbursed. U0117 processes dealer reserve payments with check type of "DRES" requires disbursements. At the time of processing disbursal for a dealer reserve check, U0117 removes the records and writes a record of disbursal to the dealer transaction history (rdh) table. For more details, see U0117 Cashier's Check Disbursal. When adding an asset by update U0210 Asset LeasePak provides dealer plan code, dealer reserve amount, bulletin/promo number, program rate, buy rate and dealer reserve pay to field input to process and record dealer reserve amounts. For more details, see U0210 Asset. User must turn on "Allow Dealer Reserve" from update U0212 Portfolio to enable dealer reserve fields on relevant updates. For more details see U0212 Portfolio update.
U0225 IDC/IDR Adjustments update allows the user to enter dealer reserve amounts for each asset. LeasePak maintains GL transactions to increase or decrease dealer reserve adjustments.
NOTE: If dealer reserve fields amounts are not defined for a particular asset, U0225 IDC/IDR Adjustments does not allow a user to enter dealer reserve amounts on U0225. If dealer reserve fields are not populating on u0225 automatically, those fields can be updated through update U0210 Asset first to proceed with the Dealer Reserves processing on U0225.
LeasePak runs a process of chargeback reversal on lease or asset number and displays those assets in selection and amount of their chargeback. For more details, see U0238 Dealer Reserve Chargeback Reversal. U0301 Cycle Accrual/Accrual Reversal amortizes dealer reserve and produces GL transactions. To amortize the dealer reserve amount LeasePak processes and works same as is it does for IDC3 - Fixed Rate Reserve. For more details, see U0301 Cycle Accruals/Accrual Reversal. To process Dealer Reserve U0440 Automatic Charge Off checks that is there any outstanding dealer reserve payables are before processing charge off. U0440 identifies that whether the chargeback should occur or not for dealer reserves. For more details, see U0440 Automatic Charge Off. Matains GL accounts to zero out month-to-date debits and credits for dealer reserves. In addition to the GL accounts that have been added in the U0450 Zero General Ledger Accounts, zero monthly GL accounts also specifies that which income and expense general ledger account balances will be zero out by the U0450. For more details, see U0450 Zero General Ledger Accounts. LeasePak adds dealer reserve GL accounts to U0460 GL Master Reconciliation with other GL accounts to reconcile as many GL accounts as possible with the lease. For more details, see 0460 GL Master Reconciliation.
LeasePak clears dealer reserve field from historical table. U0482 clear Year-To-date Fields also zero outs all the year-to-date information on the lease and moves the amount to the year-to-date history table for the dealer reserve fields. For more details, see U0482 Clear Year-To-Date Fields. LeasePak disburses dealer reserve checks through U0466 Dealer Reserve Batch Check Disbursal. U0466 disburses dealer reserve checks for all the assets booked on lease that have not been disbursed previously. Once dealer reserve has been disbursed, LeasePak writes a record to (rck) Cashier's Check table and produces one of the possible GL transaction where the amount is the amount of the check depending on the type of lease(pre-computed, operating, interest bearing loan). For more details, see U0466 Dealer reserve Batch Check Disbursal. Dealer Reserve requires dealer plan code to process dealer reserves in LeasePak for leases on asset level. U0734 Dealer Plan Code Maintenance allows the user to add, change, or delete the dealer plan codes. For more details, see U0734 Dealer Plan Code Maintenance. LeasePAk accepts dealer reserve information at Application level. "Dealer Reserve" tab presents dealer reserve fields to store the amounts and dealer reserve information on dealer reserve tab. For more details, see U0801 Application - Dealer Reserve Tab.
Dealer reserve information will be available on the following reports:
LeasePak performs two extracts on Dealer Reserve functionality. U0467 Dealer Reserve Daily Extracts and U0468 Dealer Reserve Monthly Extracts, for more details, see U0467 Dealer Reserve Daily Extracts and U0468 Dealer Reserve Monthly Extracts.
LeasePak Documentation Suite
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