Payoff [U0103]: Payoff, Payoff Reversal

This update is part of the Payoff [U0103] group of updates. For an introduction to Payoff and links to all the Payoff documents, refer to Payoff [U0103].

The Payoff functions, Payoff and Payoff Reversal, process and reverse payoffs on leases or assets attached to leases. In LeasePak, a payoff allows the lessee to fulfill financial obligations on the lease (or on the portion pertaining to one of its assets) and purchase the leased asset(s). These functions are options of the Payoff update, which can be accessed through the main LeasePak Updates menu, Payoff option, or by entering U0103 into Fast Menu <F2>.

Additionally, the Payoff update has been modified to create and/or append to a centrally located scratch file for invoice generation. Field data will be stored in the historical Lease table (RPS).

This update processes payoffs according to various switch settings within the Payoff Customization option of the Portfolio [U0212] update. Based on those settings, the Payoff update will process payoffs according to the customization of those fields.

Payoff
- Method, Effective Date
  - Lease Payoff
  - Asset Payoff

Reverse Payments to Effective Date
Sales Tax
Payoff Amounts
Apply Payoff or Place in Suspense
Overage/Shortage
- Overage
- Shortage
Asset Payoff - Payment Reschedule
- Confirm Payment Schedule

Payoff Reversal
- Reverse Lease Payoff
- Reverse Asset Payoff
  - Payment Reschedule
  - Confirm Payment Schedule

Payoff

This option pays off an entire lease or an asset on a lease with more than one asset.

Paying off Leases

For a lease payoff, all outstanding asset and commission fee accounts payable must be disbursed. Use the New Lease update [U0101], Disburse Check option to clear these payables.

Paying off Assets

In order to perform an asset payoff, the asset to be paid off must not be the only asset attached to the lease. If only one asset is attached to the lease, perform a lease payoff.

If an Automatic Lease Extension record has been set up for the lease, performing an asset payoff will produce a message warning the user that the Automatic Lease Extension record exists and will become obsolete if it is not adjusted following the asset payoff. Obsolete Automatic Lease Extension records are not used to put a lease into Automatic Lease Extension. Instead, the lease number will appear on the Automatic Lease Extension Exception report [U0430A] and the extension, if desired, will need to be performed manually. To avoid this, use the Lease Extension update [U0108], Automatic Lease Extension option to update the Automatic Lease Extension record immediately following an asset payoff. To perform a manual lease extension, use the Lease Extension update, Lease Extension option.

A Payoff may be made to an asset that is attached to a lease with a MTM (month to month) status.

If the user has purchased and is using the Notes Payable module, a warning message will be displayed if an active note is attached to the asset.

To dispose of an off lease asset, use the Sale of Asset in Inventory option of the Payoff update.

This screen is used to select Payoff from the Payoff options menu.

Use this screen to select the lease or asset to pay off.

When a lease or asset contains a Suspense balance item, a warning message will notify the user of the suspense balance amount prior to processing the Payoff/Termination. This warning message will not be displayed for batch processes or when a Suspense balance is added and/or changed via the G/L Adjustments [U0121] update.

LEASE
This is the lease number to be paid off. Leave this field blank if paying off an asset.
ASSET
Type the asset number to pay off, or select the field and click to start the Asset Search function. The asset must not be the only asset attached to its lease. Leave this field blank if paying off a lease.

Note: U0103 ensures that the funding tax accounts payable on acquisition cost, broker fee, IDC1 Insurance Premium, and IDC2 Notary Fee are disbursed before payoff of an an asset or a lease. An error message will appear when any of the above accounts payable are not disbursed before payoff.

Lease Payoff

This is the first screen of a lease payoff. It is used to specify parameters for the payoff. Sales tax information is displayed only if sales tax should be charged on the sale, as determined by the payoff section of the Lease Form update [U0721].

If a payoff quote was established for the lease or asset using the Payoff Quote update [U0213], parameters from the Payoff Quote (RPD) file are displayed on this screen. The quote's parameters may be changed.

For asset payoffs, the accrued to date for the lease is used as EFFECTIVE DATE of the payoff. Refer to the Accrual section of the Lease Inquiry report [R0905] for the accrued to date. It is possible for the lessor to continue depreciating the asset beyond the payoff effective date. This is accomplished by entering a different date in ASSET DISPOSITION DATE.

For assets paid off from interest bearing loans, the outstanding principal for the asset must not exceed the unaccrued principal for the lease.

The asset status code of paid-off assets is automatically changed to NSLD (not available - sold).

PAYOFF METHOD
PAYOFF METHOD defaults to the method specified on the Payoff Quote (RPD) file. If no Payoff Quote exists, PAYOFF METHOD defaults to the method on the lease form, as established on the Lease Form update [U0721]. The method may be changed to another valid method. Click on the Help arrow for a list of valid payoff methods. If paying off an operating lease, the PAYOFF METHOD defaults to OPR and may not be changed.
LeasePak calculates the income of INV, OPR and PRN type methods based on the Payoff Customization switches in the Portfolio [U0212] update.

The matrix below shows which payoff methods may be used for each lease type.

Vehicle Finance users: valid methods for precomputed leases are INV, PRN, R78, and SB.

Lease Type	Payoff Methods	Termination Methods
Precomputed	CF3, EBV, FIX, G12, INV, NPV, PR, PRN, PV2, PVS, PVT, R78,RES, RV, SB, TAX, WO	EBV, G12, INV, NONE, PV2, RV, TAX, WO
Simple Interest	EBV, PRN	NONE
Operating	OPR	INV, NONE
IBL	IB	IB

Note: LeasePak now allows the Rule of 12/78th to be used as a pay-off method for pre-computed, AAPR/RAPR accrual methods leases only.

Alternate Accrual/Billing Cycles: For details of non-monthly accrual/billing cycle, refer to the Alternate Accrual/Billing Cycles overview document.

Refer to the Calculations document for more information on payoff methods.

Refer to the Portfolio update, Payoff Customizations [U0212] for more information on payoff control switches.

Refer also to the Custom General, Miscellaneous Customizations option [U0712].

EFFECTIVE DATE
For asset payoff, the effective date is defaulted to the accrued to date of the lease and may not be changed.

For lease payoff, enter or change the effective date of the payoff in MM/DD/YY or DD/MM/YY format, depending on the Date Format Preference field in Security [U0706]. For a lease payoff, the EFFECTIVE DATE may be back- dated to any date in the past as long as all lease payments due after the EFFECTIVE DATE are outstanding (unpaid) on the Accounts Receivable (RAR) file. LeasePak automatically reverses the lease back to the EFFECTIVE DATE entered. This means that the lease is reversed to the first payment due date on or before the EFFECTIVE DATE. For example, a lease with a payment due date of the first of the month and a payoff with an EFFECTIVE DATE of 11/30 reverses to 11/1.
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 is changed during the period for which the accrual reversal process is performed.

The EFFECTIVE DATE may be set to a future date up to the date for which income is accrued (accrued to date). Generally, this date is the next payment due date. LeasePak processes all unpaid invoices up to and including the EFFECTIVE DATE through the clearing account.

For interest bearing loans, the payoff EFFECTIVE DATE must be on or after the last payment effective date. The asset payoff EFFECTIVE DATE must be on the accrued to date.

For IBLs in NMAT (matured) status and with Capitalize Interest set to 'N', you can specify an effective date as far forward of the accrued-to date as needed.

If the Last Accrued to Date is less than Payoff Effective Date, LeasePak will calculate the additional interest.

Example

Current Accrued to Date	10/1/01
Accrual Deferral Days	6
Next Accrual	EOP on 10/07/01
New Accrued to Date on 10/07/01	Next Payment Due Date 11/01/01
Current Date	10/01/01-11/01/01 (between Last Accrued to Date and next Last Accrued to Date)
Payoff Effective Date	10//06/01

Current Interest Outstanding = Additional Interest (Interest calculated for 7 days of October) + Current Payments Outstanding (Interest accrued until 10/1/01)

Changing the EFFECTIVE DATE of a payoff for interest bearing loans has no effect on the BASE PAYOFF calculation. However, it does affect interest calculations:

Lease Payoff
PMTS OUTSTD shows a different interest calculation.

Asset Payoff
Subsequent interest calculations for the lease reflect the new principal based on the EFFECTIVE DATE entered.

SUSPENSE ITEM
Enter or change the suspense item which is to be used for the payoff, if applicable. Click on the HELP arrow for a list of available SUSPENSE items. If LeasePak's session assignment is used and no items from suspense are assigned to the operator, then this field may not be accessed.
PAYOFF SOURCE
Enter or change the payoff source. Use Help for a list of valid sources. PAYOFF SOURCE is informational only. Codes are established through the Custom Codes update [U0722] under code SRC.
SOURCE NAME
The Source Name for the lease is defaulted based on the Payoff Source entered and may be modified. The Vendor Name, Customer Name and/or the Insurance Agent Name will default from the lease when the Payoff Source Code selected begins with a C*** (customer), D*** (vendor/dealer) or I*** (insurance agent). Payoff Source Codes are defined in the Custom Codes [U0722] update.
FMV
Enter or change the fair market value. FMV is used only for calculations in the RV (realized value) payoff method.

When an OPER asset is terminated, a calculated FMV will be displayed on the screen and cannot be changed.
PAYOFF RATING
Enter or change the payoff rating. Use 'HELP' for a list of valid payoff ratings. PAYOFF RATING is informational only. Payoff rating codes are established through the Custom Codes update [U0722] under code RAT.
SALES PARTY
Enter R if the asset was sold to a related party (e.g., a sale from a captive to its parent) or U if unrelated (sale to an outside third-party).
ASSET DISPOSITION DATE
Defaults to match payoff effective date in MM/DD/YY or DD/MM/YY format, depending on the Date Format Preference field in Security [U0706]. It may be overridden with a later date if lessor intends to continue depreciating the asset beyond the payoff date. Cannot be later than fiscal year end following payoff effective date.
PAYOFF REASON
Select payoff reason from the available list of reason codes. Use help arrow to select termination reason code. Use U0722 Custom Code – PAYO.LEASE to add more code values for payoff reason for non-CBR use. LeasePak sets this field to blank by default. LeasePak does not allow the user to set payoff/termination reason code as 'ERRO' or 'FRAD' if a lease has never been reported as a CBR lease. Users can set other reasons for non-CBR leases. If user selects to 'ERRO' or 'FRAD' for non-CBR leases than U0103 Payoff will prompt the user with the following error message:

Error Message: "'ERRO' or 'FRAD' allowed only when lease is credit bureau reported."

Credit Bureau Extract users: Selecting reason 'ERRO' or 'FRAD' will cause LP to report the account to the credit bureaus as deleted with an Account Status of DA or DF, respectively. Use caution when selecting either of these reasons.
Users cannot leave this field blank if the selected lease is a credit bureaus lease.

Credit Bureau Extract users:Credit Bureau Extract – Do not delete or modify code 'ERRO' or 'FRAD', via U0722 Custom Code, as both of these codes are specific to credit bureau reporting. Users must set Payoff/Termination reason code if user has selected "Payoff Source/Termin Reason" to 'FLTC'.
- Reversal of Payoff/Termination for Leases Reported as Deleted: LeasePak restricts payoff or termination reversal for leases reported as deleted. If payoff/termination reason is 'ERRO' or 'FRAD' and a lease has been reported as CBR lease than LeasePak does not allow the reversal.
Error Message: "Payoff/Termination reversal is not allowed with ERRO or FRAD reason."
EXCLUDE PAST DUE PAYMENT AND ASSESSMENT (Y/N)
This switch will appear when the Off-Lease Billing module is purchased. This field will work in conjunction the with the PAYOFF INVOICE DUE DAYS switch in the Miscellaneous Customizations option of the Custom General [U0712] update.

Select this field (check the box) for all past due payments and assessments to be excluded from the Payoff Quote. This will allow the user to override the Base Amount and the outstanding Payment and/or assessment amount. This will also enhance the functionality as given below:

For Off-Lease Billing users only:

RECOGNIZE CASH-BASIS INVOICE INCOME AT PAYOFF

Also supports Asset Focus Module.

NOTE: If an asset is removed from lease, any assessments on advanced invoices may be affected when the tax is recalculated at the time of accrual. Any NSF fee automatically generated will not be allowed on advanced invoices.

Asset Payoff

This is the first screen for an asset payoff. It is used to specify parameters for the payoff of an asset. Sales tax information is displayed only if sales tax should be charged on the sale, as determined by the payoff section of the Lease Form update [U0721].

Additionally, LeasePak supports the NPV Payoff Method for Asset Payoffs on a lease with an irregular payment schedule on an *APR accrual method. The Asset Percentage Calc Method (A/P/C) switch in Miscellaneous Customization option of the Custom General update [U0712] must be set to 'A' for Payoff to allow the NPV method to be entered as a Payoff Method. The Payoff effective date will be the default for the accrual to date and cannot be changed.

For assets paid off from interest bearing loans, the outstanding principal for the asset must not exceed the unaccrued principal for the lease.

The asset status code of paid-off assets is automatically changed to NSLD (not available - sold).

PAYOFF METHOD
PAYOFF METHOD defaults to the method specified on the Payoff Quote (RPD) file. If no Payoff Quote exists, PAYOFF METHOD defaults to the method on the lease form, as established on the Lease Form update [U0721]. The method may be changed to another valid method. Click on the Help arrow for a list of valid payoff methods. If paying off an operating lease, the PAYOFF METHOD defaults to OPR and may not be changed. The matrix below shows which payoff methods may be used for each lease type.

Lease Type	Payoff Methods	Termination Methods
Precomputed	CF3, EBV, FIX, G12, INV, NPV, PR, PRN, PV2, PVS, PVT, RES, RV, SB, TAX, WO	EBV, G12, INV, NONE, PV2, RV, TAX, WO
Simple Interest	EBV, PRN	NONE
Operating	OPR	INV, NONE
IBL	IB	IB

EFFECTIVE DATE
For asset payoff, the effective date is defaulted to the accrued to date of the lease and may not be changed.

For lease payoff, enter or change the effective date of the payoff in MM/DD/YY or DD/MM/YY format, depending on the Date Format Preference field in Security [U0706]. For a lease payoff, the EFFECTIVE DATE may be back- dated to any date in the past as long as all lease payments due after the EFFECTIVE DATE are outstanding (unpaid) on the Accounts Receivable (RAR) file. LeasePak automatically reverses the lease back to the EFFECTIVE DATE entered. This means that the lease is reversed to the first payment due date on or before the EFFECTIVE DATE. For example, a lease with a payment due date of the first of the month and a payoff with an EFFECTIVE DATE of 11/30 reverses to 11/1.
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 is changed during the period for which the accrual reversal process is performed.

For interest bearing loans, the payoff EFFECTIVE DATE must be on or after the last payment effective date and on or before the accrued to date. The asset payoff EFFECTIVE DATE must be on the accrued to date.

Changing the EFFECTIVE DATE of a payoff for interest bearing loans has no effect on the BASE PAYOFF calculation. However, it does affect interest calculations:

Lease Payoff
PMTS OUTSTD shows a different interest calculation.

Asset Payoff
Subsequent interest calculations for the lease reflect the new principal based on the EFFECTIVE DATE entered.

SUSPENSE ITEM
Enter or change the suspense item which is to be used for the payoff, if applicable. Click on the HELP arrow for a list of available SUSPENSE items. If LeasePak's session assignment is used and no items from suspense are assigned to the operator, then this field may not be accessed.
PAYOFF SOURCE
Enter or change the payoff source. Use Help for a list of valid sources. PAYOFF SOURCE is informational only. Codes are established through the Custom Codes update [U0722] under code SRC.
FMV
Enter or change the fair market value. FMV is used only for calculations in the RV (realized value) payoff method.

When an OPER asset is terminated, a calculated FMV will be displayed on the screen and cannot be changed.
PAYOFF RATING
Enter or change the payoff rating. Use 'HELP' for a list of valid payoff ratings. PAYOFF RATING is informational only. Payoff rating codes are established through the Custom Codes update [U0722] under code RAT.
SALES PARTY
Enter R if the asset was sold to a related party (e.g., a sale from a captive to its parent) or U if unrelated (sale to an outside third-party).
ASSET DISPOSITION DATE
Defaults to match payoff effective date in MM/DD/YY or DD/MM/YY format, depending on the Date Format Preference field in Security [U0706]. May be overridden with a later date if lessor intends to continue depreciating the asset beyond the payoff date. Cannot be later than fiscal year end following payoff effective date.
CANCEL CREDIT LIFE INSURANCE 1
The default value of this field is N, stating that the Credit Life Insurance has not been canceled.

Enter Y if the Credit Life Insurance has been canceled, the corresponding unearned amount will be zero and the unearned amount will need to be reversed before a payoff is made.

If the canceled unearned amount is not equal to the asset payoff amount, a warning message will be received.
CANCEL CREDIT LIFE INSURANCE 2
The default value of this field is N, stating that the Credit Life Insurance has not been canceled.

Enter Y if the Credit Life Insurance has been canceled, the corresponding unearned amount will be zero and the unearned amount will need to be reversed before a payoff is made.

If the canceled unearned amount is not equal to the asset payoff amount, a warning message will be received.
CANCEL CREDIT DISABILITY INSURANCE 1
The default value of this field is N, stating that the Credit Disability Insurance has not been canceled.

Enter Y if the Credit Disability Insurance has been canceled, the corresponding unearned amount will be zero and the unearned amount will need to be reversed before a payoff is made.

If the canceled unearned amount is not equal to the asset payoff amount, a warning message will be received.
CANCEL CREDIT DISABILITY INSURANCE 2
The default value of this field is N, stating that the Credit Disability Insurance has not been canceled

Enter Y if the Credit Disability Insurance has been canceled, the corresponding unearned amount will be zero and the unearned amount will need to be reversed before a payoff is made.

If the canceled unearned amount is not equal to the asset payoff amount, a warning message will be received.
CANCEL WARRANTY INSURANCE
The default value of this field is N, stating that the Warranty Insurance has not been canceled

Enter Y if the Warranty Insurance has been canceled, the corresponding unearned amount will be zero and the unearned amount will need to be reversed before a payoff is made.

If the canceled unearned amount is not equal to the asset payoff amount, a warning message will be received.
Note: Refer to the Lease Payoff section of the Payoff update [U0103] for further information regarding these fields.
The Lease Form update [U0721] sets the parameters for REBATES.

Reverse Payments to Effective Date

This screen is used for both lease and asset payoffs. It appears for all accrual types except Interest Bearing Loans (IBLs) and gives the user the option to reverse all payments to the EFFECTIVE DATE specified for the payoff.

PAYMENTS HAVE BEEN MADE TO INVOICES WITH A PAYMENT DUE DATE AFTER THE EFFECTIVE DATE. DO YOU WISH TO REVERSE THOSE PAYMENTS (Y/N)
Enter Y if all payments made with a due date after the effective date are to be reversed. Enter N, if the payments are not to be reversed during the Payoff.

If the payments are not to be reversed, the effective date will need to be changed accordingly.
BANK CODE FOR PAYMENT REVERSAL
This field appears if the Multiple Banks module is purchased. Enter the Bank Code that pertains to the lease being paid off. If the Multiple Banks module has not been purchased, all reversals will be applied to the Cash account (LeasePak G/L account 1001).
Note: If a Bank Code is not entered , LeasePak will give a warning message: 'Bank Code is blank. Original Bank Code will be used.'

Sales Tax on Payoff

This screen is used for both lease and asset payoffs. For asset payoffs, only one asset - the one being paid off - will appear in the asset list. It is used to specify sales tax requirements for payoffs. This screen is displayed if sales tax should be charged on the sale, as determined by the lease form code for the lease. (Refer to the Lease Form update [U0721].)

If a payoff quote is established for the lease or asset using the Payoff Quote update [U0213], information from the Payoff Quote (RPD) file is displayed on this screen. The quote's payoff parameters may be changed.

BASE TAXABLE AMOUNT DEFAULT
Enter a code for how to determine the base taxable amount for each asset on the payoff. Leave blank if no base taxable amount should be defaulted. Valid codes are:
PAY The asset's percentage of the total lease determines the asset's portion of TAXABLE AMOUNT. BASE TAXABLE AMOUNT defaults to the base payoff amount and may be changed.
RES The asset's residual value is its default TAXABLE AMOUNT. BASE TAXABLE AMOUNT defaults to the total residual value and may be changed.

FMV TAXABLE AMOUNT is the fair market value as entered by the user for each asset. Note that this option will not default TAXABLE AMOUNT for each asset, nor will a BASE TAXABLE AMOUNT be defaulted.

BASE TAXABLE AMOUNT
The amount defaults based on the code entered above and may be changed.

If the lease is subject to value added tax, the Base Taxable Amount is the amount subject to VAT. For example, when the UPFRONT VALUE ADDED TAX switch is set to Y for the portfolio, the Base Taxable Amount may be principal only.
SALE LOCATION/RATE DEFAULTS
This field may be used as a quick way to enter sale location and rate information for each asset in the scrolled area. Actual sale location and rate for individual assets may then be changed, if necessary. Therefore, if one of the following methods approximates the conditions of the sale, use it to default information and then change pieces of information as needed. Leave this field blank if no locations or rates are to be defaulted. Valid codes are:
CUR Current state, county, and city locations and use tax rates for the assets should be used as the defaults
A specific state, county, or city rate can later be changed using the LOCATION DEFAULT and RATE DEFAULT fields. For example, if assets are being sold in their current location, but the applicable state tax rate on a sale is different from the defaulted state use tax rate, enter the STATE LOCATION DEFAULT and the STATE RATE DEFAULT. This automatically changes the defaulted state rate for all assets in that state. All other information is unaffected. This process may be repeated for multiple adjustments to the information in the scrolled area.
NEW Existing locations and rates for each asset should all be overridden with a single user-specified state, county, and city location and rate. The location and rate is specified through the following default location and rate fields. (Any of the state, county, and city locations and rates may be entered as default information.)

LPQ The last saved payoff quote's state, county, and city locations and use tax rates should be used as defaults for each asset in the scrolled area. This code is valid if a payoff quote exists.

STATE LOCATION DEFAULT
Enter the 2 character post office abbreviation of the state of the sale. The state must be on the Location file. When the state is entered, state use tax rate is displayed as the STATE RATE DEFAULT.

If the SALE LOCATION/RATE DEFAULTS code is NEW, all assets in the scrolled area are defaulted with the state location of the one entered in this field. The state sales tax rate for the assets is also defaulted at this time with the STATE RATE DEFAULT.

If the SALE LOCATION/RATE DEFAULTS code is CUR, this field is used with STATE RATE DEFAULT to change the state sales tax rates for all assets in the state to the STATE RATE DEFAULT.
STATE RATE DEFAULT
When the state is entered, the state rate is displayed and may be changed.

If the SALE LOCATION/RATE DEFAULTS code is NEW, all assets in the scrolled area are defaulted with the state rate entered in this field.

If the SALE LOCATION/RATE DEFAULTS code is CUR, this field is used with STATE LOCATION DEFAULT to change the state sales tax rates for all assets in the state to the rate entered in this field.
COUNTY LOCATION DEFAULT
Enter the code of the county of the sale. The county must be on the Location file. COUNTY LOCATION DEFAULT may not be entered if the STATE LOCATION DEFAULT is a Canadian province.

If the SALE LOCATION/RATE DEFAULTS code is NEW, all assets in the scrolled area are defaulted with the county location of the one entered in this field. The county sales tax rate for the assets may also be defaulted at this time.

If the SALE LOCATION/RATE DEFAULTS code is CUR, this field is used with COUNTY RATE DEFAULT to change the county sales tax rates for all assets in the county to the COUNTY RATE DEFAULT.
Note: In order to handle county level taxes for Australian states, a standalone conversion program is required.

COUNTY RATE DEFAULT
When the state and county are entered, the county rate on file is displayed and may be changed. The COUNTY RATE DEFAULT may not be entered if the STATE LOCATION DEFAULT is a Canadian province.

If the SALE LOCATION/RATE DEFAULTS code is NEW, all assets in the scrolled area are defaulted with the county rate entered in this field.

If the SALE LOCATION/RATE DEFAULTS code is CUR, this field is used with COUNTY LOCATION DEFAULT to change the county sales tax rates for all assets in the county to the rate entered in this field.
CITY LOCATION DEFAULT
Enter the code of the city of the sale. The city must be on the Location file.

If the SALE LOCATION/RATE DEFAULTS code is NEW, all assets in the scrolled area are defaulted with the city location entered in this field. The city sales tax rate for the assets may also be defaulted at this time.

If the SALE LOCATION/RATE DEFAULTS code is CUR, this field is used with CITY RATE DEFAULT to change the city sales tax rates for all assets in the city to the CITY RATE DEFAULT.
CITY RATE DEFAULT
When the state, county (except for Canadian provinces), and city are entered, the existing city rate on file is displayed and may be changed.

If the SALE LOCATION/RATE DEFAULTS code is NEW, all assets in the scrolled area are defaulted with the city rate entered in this field.

If the SALE LOCATION/RATE DEFAULTS code is CUR, this field is used with CITY LOCATION DEFAULT to change the city sales tax rates for all assets in the city to the rate entered in this field.
ASSET (scrolled area)
The assets number(s) to be sold are displayed and may not be changed.
ST (scrolled area)
Enter or change the two-character post office abbreviation of the state of the sale.
ST RATE (scrolled area)
Enter or change the state sales tax rate to be used to calculate the tax on the sale of this asset. ST RATE may be zero.
CNTY (scrolled area)
Enter or change the code for the county of the sale. CNTY may not be entered if the state entered is a Canadian province.
CNTY RATE (scrolled area)
Enter or change the county sales tax rate to be used to calculate the tax on the sale of this asset. CNTY RATE may be zero. CNTY RATE may not be entered if the state entered is a Canadian province.
CITY (scrolled area)
Enter or change the code for the city of the sale.
CITY RATE (scrolled area)
Enter or change the city sales tax rate to be used to calculate the tax on the sale of this asset. CITY RATE may be zero, if so desired.
TAXABLE AMT (scrolled area)
Enter or change the amount upon which the sales tax should be based. The total TAXABLE AMT for all assets is displayed at the bottom of the screen. The total TAXABLE AMT must equal the BASE TAXABLE AMOUNT when all changes have been completed.
SALES TAX (scrolled area)
SALES TAX is calculated as follows:
TAXABLE AMT
* (STATE RATE + COUNTY RATE + CITY RATE)
Total SALES TAX for all assets is displayed at the bottom of the screen.

The above screen is used for lease and asset payoff and will only appear for Vertex O lease(s) and asset(s). Lease, Asset, Payoff Method, Payoff Source, Effective Date, Suspense Item, Asset Disposition Date, Sales Party, Payoff Rating, Ins Refund, Source Name, Debt Pm Bal, Debt Add Int, Debt Penalty, Exclude Past Due Pmts and Assmt (Y/N), FMV, Base Taxable Amount Default, and Base Taxable Amount fields works same as for non-Vertex lease(s) and asset(s).

ASSET (scrolled area)
The assets number(s) to be sold are displayed and may not be changed.
CODE (scrolled area)
The asset's use tax codes are displayed and may not be changed.
FROM TAID (scrolled area)
The tax area ID of the asset's current location is displayed. This TAID refers to the ship from with respect to sale of the asset.
ST (scrolled area)
Displays the state corresponding to the TAID.
TO TAID (scrolled area)
The tax area ID of the asset's current location is displayed and may not be changed. This TAID refers to the Ship To with respect to Sale of Asset.
ST (scrolled area)
Displays the state corresponding to the TAID.
ADM ORG TAID (scrolled area)
The tax area ID of the asset's administrative origin will default to the lease level vendor's locating and may not be changed. If no lease level vendor is associated, the asset's current location will be used. This TAID refers to the administrative origin or location where the sale of the asset is accepted.
ST (scrolled area)
State corresponding to the TAID is displayed.
TAXABLE AMT (scrolled area)
The total taxable amount for all assets is displayed at the bottom of the screen. This is the amount upon which the sales tax should be based. The total TAXABLE AMT must equal the BASE TAXABLE AMOUNT when all changes have been completed.
SALES TAX (scrolled area)
SALES TAX is calculated as follows by sending a request to Vertex O engine using the Taxable Amount, Code, From TAID as the ship from TAID or physical origin, TO TAID as the ship to TAID or destination, Adm Org TAID as the administrative origin of the asset, and transaction type of SALE.

For Vertex O users only: The payoff method of FMV is not supported by Vertex O.

On completing payoff transaction, LeasePak stores the ship from, ship to, and administrative origin information for each asset in ROU table. LeasePak will use these values to calculate tax for the asset sale. The Ship from for the asset will be sent as the physical origin, the ship to will be sent as the destination, and the administrative origin as the administrative origin. LeasePak will use the codes to identify that the asset should be marked exempt or not for the sale of asset, same as the tax payment code is used for payoff transactions. The transaction type will be SALE instead of LEASE for the line items. LeasPak calculates the tax and creates RW* records same as Sale of Asset in Inventory but for vertex O payoff all of the assets will remain on the same invoice.

For Vertex O users Only: Off Lease billing is not supported for vertex-O leases and assets The amount due for the payoff with off lease billing does not need to be collected at the time the lease or asset is being paid off. However, it can be invoiced.

If the switch Calculate Sales Tax on Payoff (Y/N) is set Y from U0721 Lease Form Codes update, then each asset has, a taxable amount set on it and sales tax is calculated for that taxable amount. If the same switch is set to N, then each asset does not have a taxable amount set on it.

Payoff Amounts

This screen is used for both lease and asset payoffs, with the following exceptions:

SECURITY DEPOSIT
On asset payoffs, this field is not accessible.
CHECK NUMBER
This field appears only on lease payoffs.
BATCH NUM
This field appears only on lease payoffs.

The screen is used to record the payoff amount received and additional charges.

CHECK AMOUNT
Enter the amount received for the payoff. CHECK AMOUNT is included in TOTAL REC'D.
Note: When the Cash Control module is purchased, LeasePak will not allow a payoff to be made with a suspense item.
SECURITY DEP
The security deposit for the lease is displayed and included in TOTAL REC'D. For asset payoffs only, this amount may be reduced.
Cash Control module, security deposit suspense item: if the Portfolio [U0212] Payoff Customizations switch Holding Security Deposit in Payoff/Term is set to 'P' or 'B', the security deposit amount is not included in TOTAL REC'D, but placed in suspense. LeasePak will create a new suspense item using the batch and check number from the original security deposit payment. In the case where more than one security deposit payment was received, LeasePak will create individual suspense items for each of the security deposit payments, using original batch and check numbers. The security deposit remains in suspense until applied to outstanding invoices or the number of days set in Holding Period for Security Deposit Disbursal has expired. If the payoff is reversed, the security deposit is restored, unless the amount has been disbursed through the Auto Security Deposit Suspense Disbursal [U0436] and Cashier's Check Disbursal [U0117] updates.

You can create security deposit suspense items during payoff or termination for leases only. They are not available for interest bearing loans (IBLs).
SUSPENSE AMT
If a SUSPENSE ITEM was entered, the remaining balance of the suspense item is displayed. These funds are used as part of the payoff amount received and are included in TOTAL REC'D.
REV PMT AMT
If the reverse payment switch has been set to Y, this field will default the total for REVERSED PAYMENT AMOUNT. These funds are used as part of the payoff amount received and are included in TOTAL REC'D.
BANK CODE
This field will appear if the Multiple Banks module has been purchased. It allows the user to specify which bank should be used to process the payoff. The default is 125; valid entries are 1, 125-144, or 499-520. Help is available.

If invoices exist that are partially paid, the bank code used in the first partial payment will default.

If a suspense item is used, the bank code from that suspense item will default.

Check Number

(Conditional)
The check number is required, if:

Cash Control module is running.

The payoff amount received is greater than 0.

If you have specified a suspense item for the payment, LeasePak will set this field to the check number specified for the suspense item. It will also make this field become unavailable and uneditable.

LeasePak will store the check number in the Monthly Transaction (RTX), Check Payment Master (RPM) and Check Payment Detail (RPN) files. A trace reference will be created based on thePayment Originationcode: 'LPPF' for Payoff [U0103]. The trace reference will be displayed in the Cash Control Payment History [R0926] report. The check number will appear on R0411 Cash Receipts Journal, as well as any other reports that include the check number.

BASE PAYOFF
The base payoff for the value of the lease or asset, as calculated using the PAYOFF METHOD and the EFFECTIVE DATE, is displayed. For interest bearing loans (IBLs) with a balloon payment booked into the residual, the base payoff is equal to the balloon payment.
PMTS OUTSTD
The amount of lease payments outstanding on or before the EFFECTIVE DATE is calculated and displayed.
ASSM OUTSTD
The amount of all assessments outstanding, regardless of the EFFECTIVE DATE, is displayed. Use tax for the lease payments due on or before the EFFECTIVE DATE is included in this amount.
SALES TAX
Tax on sale as specified on screen 2 is displayed. The SALES TAX amount may not be changed.

If the lease is subject to value added tax, VAT on the Base Taxable Amount, Additional Interest and Fee/Penalty is displayed.
ADDL INTEREST
Any additional interest required by the payoff method is displayed and may be modified.

FEE/PENALTY
Fees or penalties charged to the lessee on the payoff are displayed and may be modified. FEE/PENALTY is calculated according to the information on the lease agreement. (Refer to the payoff section of the Lease Form update [U0721].)

The Fee/Penalty amount is included in Other income Y-T-D (req.oth_ytd_d) and Other income L-T-D (req.oth_ltd_d) and is also tracked separately in Payoff/Termination Fee/Penalty L-T-D (req.payoff_fee_ltd_d). Fee/Penalty amounts are reversed if the user performs a Payoff Reversal. The amount in req.payoff_fee_ltd_d should reconcile to the balance in the general ledger account 88 Termination Fees.
ITC RECAPTURE
The amount of Investment Tax Credit to be recaptured upon payoff, if any, is displayed and may be modified. LeasePak adds the ITC recapture into the payoff amount only if so directed by the lease agreement. (Refer to the payoff section of the Lease Form update [U0721].)

ITC recapture for tax purposes is always automatically calculated and performed by the system. The amount entered on this payoff screen represents an extra fee to be charged to the lessee.
LIF 1 REBATE
The total IDR7 - Credit Life Insurance 1 amount for the lease is displayed, when Enhanced IDC/IDR module is purchased.
LIF 2 REBATE
The total IDR8 - Credit Life Insurance 2 amount for the lease is displayed, when Enhanced IDC/IDR module is purchased.
DIS 1 REBATE
The total IDR9 - Credit Disability 1 amount for the lease is displayed, when Enhanced IDC/IDR module is purchased.

DIS 2 REBATE
The total IDRA - Credit Disability Insurance 2 amount for the lease is displayed, when Enhanced IDC/IDR module is purchased.

The Rebate amount of the Credit Life Insurance 1/2, Credit Disability 1/2 may be used to reduce the payoff amount. The additional G/L accounts added calculate the difference between the rebate amount and the existing unearned amount.

If the Insurance Unearned is to zero because of the canceled insurance, than the rebate amount must be zero in the Rebate screen of the Lease Form Code update [U0721]

Auto Charge Off [U0440] update, displays IDC/IDR totals for Payoff.

LeasePak uses the following formula to calculate the rebate amounts for the Payoff [U0103]or Payoff Quote [U0213].

(((MTHS TO RUN * (MTHS TO RUN + 1) / ORIGINAL TERM * (ORIGINAL TERM + 1)) * TERMS CHARGES)

EXAMPLE: The following is an example on how LeasePak calculates the rebate amounts when an IBL type lease is processed.

First of all, setup or adjust a Lease Form [U0721] last screen by entering Rule of 78ths = ‘Y > 0’ under the Credit Life and A_H Rebates option.
Create new application using the following sample values.

Field Description	Value
Lease type	RAX5
Term length (Original Term)	12
Original term + 1	13
Commencement date	02/20/1989
First invoice due date	03/20/1989
Payment frequency	MON

Set up the following field values on the Enhanced IDC/IDR [U0801] dialog.

Field Description		Value
Term Charges	Credit Life Insurance 1	440.36
	Credit Life Insurance 2	147.17
	Credit Disability Ins 1	594.09
	Credit Disability Ins 2	319.23

Now process the Payoff [U0103] or Payoff Quote [U0213] by using the specific Lease Form [U0721] that you have adjusted for the rebate calculations. It will show you the results according to the table given below. The table shows the calculated rebate amounts throughout the lease term.

Due Date	Term (Accrued-to date)	Month To Run	Month To Run + 1	LIF1 Rebate	LIF2 Rebate	Dis1 Rebate	Dis2 Rebate
2/20/1989	0	12	13	440.36	147.17	594.09	319.23
3/20/1989	1	11	12	372.61	124.53	502.69	270.12
4/20/1989	2	10	11	310.51	103.77	418.91	225.10
5/20/1989	3	9	10	254.05	84.91	342.74	184.17
6/20/1989	4	8	9	203.24	67.92	274.20	147.34
7/20/1989	5	7	8	158.08	52.83	213.26	114.60
8/20/1989	6	6	7	118.56	39.62	159.95	85.95
9/20/1989	7	5	6	84.68	28.30	114.25	61.39
10/20/1989	8	4	5	56.46	18.87	76.17	40.93
11/20/1989	9	3	4	33.87	11.32	45.70	24.56
12/20/1989	10	2	3	16.94	5.66	22.85	12.28
1/20/1990	11	1	2	w5.65	w1.89	7.62	4.09
2/20/1990	12	0	1	0.00	0.00	0.00	0.00

BATCH NUMBER
When the Cash Control module is purchased, LeasePak will display the Batch Number associated with the lease.
QUOTE BASE PAYOFF
This field appears if the Off-Lease Billing module is purchased and works in conjunction with the PAYOFF INVOICE DUE DAYS switch in the Miscellaneous Customizations option of the Custom General [U0712] update.

The Base Payoff from the Payoff Quote is displayed if the quote was saved. This field may be changed.
TOTAL REC'D
The sum of CHECK AMOUNT, SECURITY DEP and SUSPENSE AMT is displayed.
TOTAL PAYOFF
The sum of all the payoff components is displayed.
BASE PAYOFF
+ PMTS OUTSTD
+ ASSM OUTSTD
+ SALES TAX
+ ADDL INTEREST
+ FEE/PENALTY+ ITC RECAPTURE

This update will identify any remaining balances in the each record set of subvention entered by the user during lease booking for unearned income general ledger accounts. LeasePak will identify the subvention income on any remaining balances for each set or record of subvention unearned general ledger accounts. Payoff will check for the unearned amounts, if any balances remains in the set of subvention unearned general ledger accounts, LeasePak will produce a general ledger entry to clear those unearned income balances. LeasePak will create the general ledger entries for the following:

The following is the sample general ledger entry for the lease not matured:

General Ledger Account	Amount
DR Subvention1IDRD - D/L SUBVENTION1	Remaining Balance Payoff Early Amount (1000.00)
CR IncomeIDRD - D/L SUBVENTION1 INCOME

LeasePak will create following general ledger transaction to clear any amounts in the suspended D/L suspended income accounts if the lease was suspended prior to payoff:

General Ledger Account	Amount
DR IDRD - SUSP D/L SUBVENTION1 INC	Remaining Balance Payoff Early Amount (1000.00)
CR IDRD - D/L SUBVENTION1 INCOME

LeasePak produces the same as above general ledger transactions if payoff is at asset level.

LeasePak creates the following sample general ledger payoff transaction for an interest bearing loan that has not matured.

General Ledger Account	Amount
DR IDRD - RETAIL SUBVENTION1	Payoff Early Amount (1000.00)
CR IDRD - RETAIL SUBVENTION1 INC

LeasePak will create following general ledger transaction to clear any amounts in the suspended retail subvention income accounts If the interest bearing loan was suspended prior to payoff:

General Ledger Account	Amount
DR IDRD - SUSP RETAIL SUBVENTION1 INC	Remaining Balance Payoff Early Amount (1000.00)
CR IDRD - RETAIL SUBVENTION1 INC

For the Dealer reserve Payoff will first checks and make sure that all the dealer reserve payables have been disbursed before LeasePak payoff's for each asset. When processing payoff LeasePak checks that whether or not a dealer reserve chargeback needs to occur and the amount of the chargeback.

When LeasePak process payoff for dealer reserve, after the effective date input user clicks on the OK button. LeasePak determines that if a chargeback and its amount is required for the asset or lease. If the amount of chargeback is greater than zero, LeasePak prompts following error message:

"A dealer reserve chargeback will occur when this transaction is committed."

Users can proceed with the update by the click on OK button or can click on Cancel button to stop processing with the effective date on and can stop processing update. U0103 payoff only chargeback once transaction completes.

If user clicks on OK button U0103 Payoff proceeds processing transaction, accepts the inputs for payoff, and assumes that chargeback has been committed and dealer reserved has been reduced. At the last screen when user commits changes or payoff LeasePak first process the chargeback and then process payoff and update U0103 processing completes.

NOTE: If chargeback cannot find the transaction to reverse, LeasePak will not be able to process payoff. Otherwise, an error message prompts.

"Check record not found for chargeback. Transaction cancelled. The asset trying to perform a chargeback would need to be updated so that the dealer reserve plan code assigned to it does not trigger a chargeback before the payoff or termination can be completed."

LeasePak produces the general ledger entries to record dealer reserve payoff or termination updates after processing any chargeback required and these will be the same as the IDC3 fixed rate reserves general ledger updates, except they will use the new dealer reserve accounts. The dealer reserve accounts replace the IDC3 fixed rate reserve accounts for these transactions are as listed below.

General ledger will be made to maintain the records and transactions of dealer reserve to the corresponding insurance premium accounts when process payoff or termination for dealer reserve. LeasePak adds the following dealer reserve accounts:

Additional dealer reserve accounts if dealer reserve is on a pre-computed lease or asset:

IDC7 – UNAMORT D/L DEALER RESERVE
IDC7 – UNAMORT D/L DEALER RESERVE
IDC7 – AMORT D/L DEALER RESERVE
IDC7 – D/L DEALER RESERVE PAYABLE
IDC7 – D/L SUSP DEALER RESERVE

Additional dealer reserve accounts if dealer reserve is on an operating lease or asset:

IDC7 – UNAMORT O/L DEALER RESERVE
IDC7 – AMORT O/L DEALER RESERVE
IDC7 – O/L DEALER RESERVE PAYABLE
IDC7 – O/L SUSP DEALER RESERVE

Additional dealer reserve accounts if dealer reserve is on an interest bearing loan lease or asset:

IDC7 – UNAMORT DEALER RESERVE
IDC7 – AMORT DEALER RESERVE
IDC7 – DEALER RESERVE PAYABLE
IDC7 – SUSP DEALER RESERVE

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 the lease.

Apply Payoff or Place in Suspense

This screen is used for both lease and asset payoffs. Use this screen to enter an Off Lease Billing Proceeds amount and to apply the payoff receivables or place the total amount received into suspense.

Note: if the amount in TOTAL RECD is equal to the amount in TOTAL PAYOFF, this is the last screen of a lease payoff. For a lease payoff with no overage or shortage, clicking on OK from this screen processes the payoff.

OLB PROCEEDS
For Off-Lease Billing users, type an Off Lease Billing proceeds amount, if any. LeasePak reports this amount in the Proceeds From Sale column of both the Tax Gain/Loss [R0311] and Gain/Loss--EOY [U0606] reports. Otherwise this is an informational field only.

SELECT ONE OPTION
Select either to payoff the selected lease or asset, or you can put the amount in suspense.
APPLY PAYOFF
Applies the payoff to the selected lease or asset.
PLACE TOTAL AMOUNT RECEIVED INTO SUSPENSE
Places the entire received amount in suspense. Selecting this option makes available the Type, Follow up date and Comments fields. Entering the value for these fields is optional.
TYPE
Enter or select using the suspense type.
FOLLOW UP DATE
Enter the follow up date for this suspense.
COMMENTS
Enter comments for the suspense item.

Payoff Overage/Shortage

Shortage

Overage

This screen is used for both lease and asset payoffs. It is used to indicate the distribution of the payoff overage. It appears if the TOTAL REC'D is greater than the TOTAL PAYOFF. The overage is displayed on the screen and is reduced by each amount that is entered.

The overage must be zero before the lease is paid off. That is, the amounts entered for GAIN ON SALE, PLACE IN SUSPENSE and REFUND CHECK must total the original PAYOFF OVERAGE.

Note: for a lease payoff with an overage, this is the last screen. Clicking on OK from this screen processes the lease payoff.

PAYOFF OVERAGE
GAIN ON SALE
Enter the amount of the overage that is to be retained and recorded as a gain on sale. It must be less than or equal to PAYOFF OVERAGE.
PLACE IN SUSPENSE
Enter the amount of the overage that is to be placed into suspense to be researched and processed later. The amount entered must be less than or equal to the PAYOFF OVERAGE. If the Multiple Banks module has been purchased, the bank code entered for the payment will be used to process the suspense item. The bank code on this screen is used for processing a refund check.
COMMENTS
If an amount is placed in suspense, comments to be associated with that suspense item may be entered.
REFUND CHECK
Enter the amount of the overage that is to be returned to the lessee through a cashier's check. The amount entered must be less than or equal to the PAYOFF OVERAGE.
BANK CODE
This field will appear if the Multiple Banks module has been purchased. It allows the user to specify which bank should be used to process the refund. It is not used in the processing of a suspense item (if specified). The default bank code is 126; valid entries are 1, 125-144, or 499-520. Help is available.
REFERENCE
If an amount in REFUND CHECK is entered, a reference associated with the check may be entered.
BANK CODE
This field will appear if the Multiple Banks module has been purchased. It allows the user to specify which bank should be used to process the refund. It is not used in the processing of a suspense item (if specified). The default bank code is 126; valid entries are 1, 125-144, or 499-520. Help is available.
DISB DATE
If an amount for the REFUND CHECK is entered, the disbursement date of the check may be entered in MM/DD/YY or DD/MM/YY format, depending on the Date Format Preference field in Security [U0706]. DISB DATE must be on or after the current date.

Shortage

This screen is used for both lease and asset payoffs. It is used to indicate the distribution of the payoff shortage. It appears if the TOTAL REC'D is less than the TOTAL PAYOFF, short payoffs are accepted, and the shortage is within the maximum allowable shortage for payoffs. (Refer to the Payoff Customizations option of the Portfolio update [U0212]).

PAYOFF SHORTAGE is displayed and is reduced by each amount entered. The shortage must be zero before the lease may be paid off. That is, the amounts entered for LOSS ON SALE and ALLOWANCE FOR BAD DEBT must equal PAYOFF SHORTAGE.

Note: for a lease payoff with a shortage, this is the last screen. Clicking on OK from this screen processes the lease payoff.

PAYOFF SHORTAGE
LOSS ON SALE
Enter the amount of the shortage to be recorded as a loss on sale. The amount entered must be less than or equal to PAYOFF SHORTAGE.
ALLOWANCE FOR BAD DEBT
Enter the amount of the shortage that is to be charged against the allowance for bad debt account. (A percentage of the contract receivable for each new lease may be set aside as allowance for bad debt during lease booking.) The amount entered is subtracted from the PAYOFF SHORTAGE, and so must be less than or equal to the current PAYOFF SHORTAGE.

When the Off-Lease Billing module is purchased, this field will be accessible for both lease and asset Payoffs/Terminations.
INVOICE (RENT)
This field appears when the Off-Lease Billing module is purchased and works in conjunction with the PAYOFF INVOICE DUE DAYS switch in the Miscellaneous Customizations option of the Custom General [U0712] update.

In order for the shortage amount to be billed, the user must enter the total amount to invoice. The default value of loss on Sale is Total Shortage amount based on LeasePak's calculated base payoff amount.

The Payoff cannot be reversed if 'P' for asset payoff or 'Q' for lease payoff type invoice is partially or fully paid. 'P' and 'Q' type invoices cannot be removed by accrual reversal and must be removed by Payoff Reversal.

The new invoice can be viewed through the Account Receivable Balancing Report [R0404] with 'P' or 'Q' in front of the lease number.

For lease Payoff, defaulted form the Payoff Quote Base Payoff reflects the amount on the invoice with type P (Asset Payoff Invoice) also included in the Outstanding Payment in Payoff if the new 'Exclude Past Due Payment and Assessment Y/N switch is set to N. The invoice generated in Payoff will calculate sales tax if the switch CALCULATE SALES TAX ON PAYOFF is set to Y in the Lease Form [U0721]. The Rent amount in 'P' and 'Q' type invoices may be waived through Payment/Principal Waiver [U0102].
The G/L for the Invoice Rent in Payoff will be calculated as follows:

Debit Credit

Lease Payment Receivable Operating Lease Income (OPR Lease)

Lease Payment Receivable Lessor Income (FIN Lease)

If the user has entered no amount in OLB Proceeds on the previous screen, but enters an amount in Invoice Rent, the user will receive the message 'Warning: OLB Proceeds are $0'. The user will still be able to continue the payoff. However, if the user has entered an amount in OLB Proceeds on the previous screen, and the Invoice Rent amount is less than the OLB Proceeds, the user will receive the message 'Invoice Rent must be more or equal to OLB Proceeds' and will have to adjust the amount accordingly before continuing with the payoff.

Asset Payoff - Payment Reschedule

Confirm Payment Schedule

This screen is used for asset payoffs only. It is used to input a new payment schedule for the lease. Information about the existing lease and its remaining payment schedule is displayed.

After payment schedule adjustments are made and RETURN is pressed, new information for the lease is calculated and displayed. This information should be verified.

For operating leases, CONTRACT RECEIVABLE, TOTAL UNEARNED and NET INVESTMENT are not calculated.

ACQUISITION COST - CURRENT/NEW
The new acquisition cost is calculated and displayed. It is calculated by subtracting the acquisition cost of the paid off asset from the acquisition cost of the lease.
OTHER CHARGES - CURRENT/NEW
Other charges are calculated and displayed. They are calculated by subtracting other charges for the paid off asset from other charges for the lease.
RESIDUAL - CURRENT/NEW
The new residual is calculated and displayed. It is calculated by subtracting the residual of the paid off asset from the residual of the lease.
CONTRACT RECEIVABLE - CURRENT/NEW
The new contract receivable is displayed once the new payment schedule is entered. (This field is not applicable to operating leases or interest bearing loans.)
TOTAL UNEARNED - CURRENT/NEW
The new total unearned income is displayed once the new payment schedule is entered. (This field is not applicable to operating leases or interest bearing loans.)
NET INVESTMENT - CURRENT/NEW
The new net investment is displayed once the new payment schedule is entered. For interest bearing loans, NET INVESTMENT is the amount of principal outstanding. (This field is not applicable to operating leases.)
LESSOR YIELD - CURRENT/NEW
The new lessor yield is displayed once the new payment schedule is entered. For interest bearing loans, yield is only calculated for P&I accrual methods; it is not calculated for P+I accrual methods.

REMAINING PAYMENT SCHEDULE GRID
The remaining payment schedule grid, based on the number of lease payments already accrued, is displayed.

Refer to Payment Schedule overview document for description of remaining payment schedule grid columns and values.

Confirm Payment Schedule

This screen is used for asset payoffs only. It is used to display the recalculated acquisition cost, residual, etc., and to confirm processing of the payoff.

DO YOU WISH TO USE THIS PAYMENT SCHEDULE (Y/N)?
Entering Y confirms the payment schedule and payoff. Entering N returns the user to the previous (payment schedule) screen.

Note: this is the last screen of an asset payoff. Entering Y into the last field and clicking on OK from this screen processes the asset payoff.

General Ledger

U0103 Payoff support supplemental depreciation and creates the following general ledger transaction to clear any accumulated supplemental depreciation balance adjustment amount. This is applicable to both the lease and asset level payoffs. The supplemental depreciation records can be found in LTD Supplemental Depreciation in reqa Asset 2 table.

General Ledger Account Amount

DR - ACCUMULATED SUPPLEMENTAL DEPRECIATION LTD SUPPLEMENT DEPRECIATION

CR - SUPPLEMENTAL DEPRECIATION EXPENSE

General Ledger Account Amount

DR - ACCUMULATED SUPPLEMENTL DEPRECIATION LTD SUPPLEMENT DEPRECIATION

CR - EOT SUPPLEMENTL DEPRECIATION RELEASE

Following are the general ledger transaction for additional IDC fields (IDC8–IDC9 and IDCA–IDCH) during payoff:

For a precomputed type of lease:

Debit Credit

524 IDC8–D/L RESERVES PAYABLE 523 IDC8–UNAMORT D/L RESERVES

523 IDC8–UNAMORT D/L RESERVES 624 IDC8 AMORTIZATION

624 IDC8 AMORTIZATION (additional transaction for suspended lease only during payoff) 634 IDC8 – SUSPENDED AMORTIZATION (additional transaction for suspended lease only during payoff)

644 IDC8 – TOTAL RESERVES PAYABLE 524 IDC8–D/L RESERVES PAYABLE

528 ALT:IDC8–RESERVES PAYABLE 654 IDC8 – ALT:LEASE INCOME ADJUSTMENT

527 ALT:IDC8–UNAMORT RESERVES 654 IDC8 – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

532 IDC9–D/L RESERVES PAYABLE 531 IDC9–UNAMORT D/L RESERVES

531 IDC9–UNAMORT D/L RESERVES 625 IDC9 AMORTIZATION

625 IDC9 AMORTIZATION (additional transaction for suspended lease only during payoff) 635 IDC9 – SUSPENDED AMORTIZATION (additional transaction for suspended lease only during payoff)

645 IDC9 – TOTAL RESERVES PAYABLE 532 IDC9–D/L RESERVES PAYABLE

536 ALT:IDC9–RESERVES PAYABLE 655 IDC9 – ALT:LEASE INCOME ADJUSTMENT

525 ALT:IDC9–UNAMORT RESERVES 655 IDC9 – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

540 IDCA–D/L RESERVES PAYABLE 539 IDCA–UNAMORT D/L RESERVES

539 IDCA–UNAMORT D/L RESERVES 626 IDCA AMORTIZATION

626 IDCA AMORTIZATION (additional transaction for suspended lease only during payoff) 636 IDCA – SUSPENDED AMORTIZATION (additional transaction for suspended lease only during payoff)

646 IDCA – TOTAL RESERVES PAYABLE 540 IDCA–D/L RESERVES PAYABLE

544 ALT:IDCA–RESERVES PAYABLE 656 IDCA – ALT:LEASE INCOME ADJUSTMENT

543 ALT:IDCA–UNAMORT RESERVES 656 IDCA – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

548 IDCB–D/L RESERVES PAYABLE 547 IDCB–UNAMORT D/L RESERVES

547 IDCB–UNAMORT D/L RESERVES 627 IDCB AMORTIZATION

627 IDC AMORTIZATION (additional transaction for suspended lease only during payoff) 637 IDCB – SUSPENDED AMORTIZATION (additional transaction for suspended lease only during payoff)

647 IDCB – TOTAL RESERVES PAYABLE 548 IDCB–D/L RESERVES PAYABLE

552 ALT:IDCB–RESERVES PAYABLE 657 IDCB – ALT:LEASE INCOME ADJUSTMENT

551 ALT:IDCB–UNAMORT RESERVES 657 IDCB – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

556 IDCC–D/L RESERVES PAYABLE 555 IDCC–UNAMORT D/L RESERVES

555 IDCC–UNAMORT D/L RESERVES 628 IDCC AMORTIZATION

628 IDCC AMORTIZATION (additional transaction for suspended lease only during payoff) 638 IDCC – SUSPENDED AMORTIZATION (additional transaction for suspended lease only during payoff)

648 IDCC – TOTAL RESERVES PAYABLE 556 IDCC–D/L RESERVES PAYABLE

560 ALT:IDCC–RESERVES PAYABLE 658 IDCC – ALT:LEASE INCOME ADJUSTMENT

559 ALT:IDCC–UNAMORT RESERVES 658 IDCC – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

564 IDCD–D/L RESERVES PAYABLE 563 IDCD–UNAMORT D/L RESERVES

563 IDCD–UNAMORT D/L RESERVES 629 IDCD AMORTIZATION

629 IDCD AMORTIZATION (additional transaction for suspended lease only during payoff) 639 IDCD – SUSPENDED AMORTIZATION (additional transaction for suspended lease only during payoff)

649 IDCD – TOTAL RESERVES PAYABLE 564 IDCD–D/L RESERVES PAYABLE

568 ALT:IDCD–RESERVES PAYABLE 659 IDCD – ALT:LEASE INCOME ADJUSTMENT

557 ALT:IDCD–UNAMORT RESERVES 659 IDCD – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

572 IDCE–D/L RESERVES PAYABLE 571 IDCE–UNAMORT D/L RESERVES

571 IDCE–UNAMORT D/L RESERVES 630 IDCE AMORTIZATION

630 IDCE AMORTIZATION (additional transaction for suspended lease only during payoff) 640 IDCE – SUSPENDED AMORTIZATION (additional transaction for suspended lease only during payoff)

650 IDCE – TOTAL RESERVES PAYABLE 572 IDCE–D/L RESERVES PAYABLE

576 ALT:IDCE–RESERVES PAYABLE 660 IDCE – ALT:LEASE INCOME ADJUSTMENT

575 ALT:IDCE–UNAMORT RESERVES 660 IDCE – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

580 IDCF–D/L RESERVES PAYABLE 579 IDCF–UNAMORT D/L RESERVES

579 IDCF–UNAMORT D/L RESERVES 631 IDCF AMORTIZATION

631 IDCF AMORTIZATION (additional transaction for suspended lease only during payoff) 641 IDCF – SUSPENDED AMORTIZATION (additional transaction for suspended lease only during payoff)

651 IDCF – TOTAL RESERVES PAYABLE 580 IDCF–D/L RESERVES PAYABLE

584 ALT:IDCF–RESERVES PAYABLE 661 IDCF – ALT:LEASE INCOME ADJUSTMENT

583 ALT:IDCF–UNAMORT RESERVES 661 IDCF – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

588 IDCG–D/L RESERVES PAYABLE 587 IDCG–UNAMORT D/L RESERVES

587 IDCG–UNAMORT D/L RESERVES 632 IDCG AMORTIZATION

632 IDCG AMORTIZATION (additional transaction for suspended lease only during payoff) 642 IDCG – SUSPENDED AMORTIZATION (additional transaction for suspended lease only during payoff)

652 IDCG – TOTAL RESERVES PAYABLE 588 IDCG–D/L RESERVES PAYABLE

592 ALT:IDCG–RESERVES PAYABLE 662 IDCG – ALT:LEASE INCOME ADJUSTMENT

591 ALT:IDCG–UNAMORT RESERVES 662 IDCG – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

596 IDCH–D/L RESERVES PAYABLE 595 IDCH–UNAMORT D/L RESERVES

595 IDCH–UNAMORT D/L RESERVES 633 IDCH AMORTIZATION

633 IDCH AMORTIZATION (additional transaction for suspended lease only during payoff) 643 IDCH – SUSPENDED AMORTIZATION (additional transaction for suspended lease only during payoff)

653 IDCH – TOTAL RESERVES PAYABLE 596 IDCH–D/L RESERVES PAYABLE

600 ALT:IDCH–RESERVES PAYABLE 663 IDCH – ALT:LEASE INCOME ADJUSTMENT

599 ALT:IDCH–UNAMORT RESERVES 663 IDCH – ALT:LEASE INCOME ADJUSTMENT

For an operating type of lease:

Debit Credit

526 IDC8–D/L – O/L RESERVES PAYABLE 525 IDC8–UNAMORT D/L – O/L RESERVES

525 IDC8–UNAMORT D/L – O/L RESERVES 624 IDC8 AMORTIZATION

624 IDC8 AMORTIZATION (additional transaction for suspended lease only during payoff) 634 IDC8 – SUSPENDED AMORTIZATION (additional transaction for suspended lease only during payoff)

644 IDC8 – TOTAL RESERVES PAYABLE 526 IDC8–D/L – O/L RESERVES PAYABLE

528 ALT:IDC8–RESERVES PAYABLE 654 IDC8 – ALT:LEASE INCOME ADJUSTMENT

527 ALT:IDC8–UNAMORT RESERVES 654 IDC8 – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

534 IDC9–D/L–O/L RESERVES PAYABLE 533 IDC9–UNAMORT D/L – O/L RESERVES

534 IDC9–UNAMORT D/L – O/L RESERVES 625 IDC9 – AMORTIZATION

625 IDC9 AMORTIZATION (additional transaction for suspended lease only during payoff) 635 IDC9 – SUSPENDED AMORTIZATION (additional transaction for suspended lease only during payoff)

645 IDC9 – TOTAL RESERVES PAYABLE 534 IDC9–D/L – O/L RESERVES PAYABLE

536 ALT:IDC9–RESERVES PAYABLE 655 IDC9 – ALT:LEASE INCOME ADJUSTMENT

535 ALT:IDC9–UNAMORT RESERVES 655 IDC9 – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

542 IDCA–D/L – O/L RESERVES PAYABLE 541 IDCA–UNAMORT D/L – O/L RESERVES

541 IDCA–UNAMORT D/L – O/L RESERVES 626 IDCA AMORTIZATION

626 IDCA AMORTIZATION (additional transaction for suspended lease only during payoff) 636 IDCA – SUSPENDED AMORTIZATION (additional transaction for suspended lease only during payoff)

646 IDCA – TOTAL RESERVES PAYABLE 542 IDCA–D/L – O/L RESERVES PAYABLE

544 ALT:IDCA–RESERVES PAYABLE 656 IDCA – ALT:LEASE INCOME ADJUSTMENT

543 ALT:IDCA–UNAMORT RESERVES 656 IDCA – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

550 IDCB–D/L – O/L RESERVES PAYABLE 549 IDCB–UNAMORT D/L – O/L RESERVES

549 IDCB–UNAMORT D/L – O/L RESERVES 627 IDCB AMORTIZATION

627 IDCB AMORTIZATION (additional transaction for suspended lease only during payoff) 637 IDCB – SUSPENDED AMORTIZATION (additional transaction for suspended lease only during payoff)

647 IDCB – TOTAL RESERVES PAYABLE 550 IDCB–D/L – O/L RESERVES PAYABLE

552 ALT:IDCB–RESERVES PAYABLE 657 IDCB – ALT:LEASE INCOME ADJUSTMENT

551 ALT:IDCB–UNAMORT RESERVES 657 IDCB – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

558 IDCC–D/L – O/L RESERVES PAYABLE 557 IDCC–UNAMORT D/L – O/L RESERVES

557 IDCC–UNAMORT D/L – O/L RESERVES 628 IDCC AMORTIZATION

628 IDCC AMORTIZATION(additional transaction for suspended lease only during payoff) 638 IDCC – SUSPENDED AMORTIZATION (additional transaction for suspended lease only during payoff)

648 IDCC – TOTAL RESERVES PAYABLE 558 IDCC–D/L – O/L RESERVES PAYABLE

560 ALT:IDCC–RESERVES PAYABLE 658 IDCC – ALT:LEASE INCOME ADJUSTMENT

559 ALT:IDCC–UNAMORT RESERVES 658 IDCC – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

566 IDCD–D/L – O/L RESERVES PAYABLE 565 IDCD–UNAMORT D/L – O/L RESERVES

565 IDCD–UNAMORT D/L – O/L RESERVES 629 IDCD AMORTIZATION

629 IDCD AMORTIZATION(additional transaction for suspended lease only during payoff) 639 IDCD – SUSPENDED AMORTIZATION (additional transaction for suspended lease only during payoff)

649 IDCD – TOTAL RESERVES PAYABLE 566 IDCD–D/L – O/L RESERVES PAYABLE

568 ALT:IDCD–RESERVES PAYABLE 659 IDCD – ALT:LEASE INCOME ADJUSTMENT

567 ALT:IDCD–UNAMORT RESERVES 659 IDCD – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

574 IDCE–D/L–O/L RESERVES PAYABLE 573 IDCE–UNAMORT D/L – O/L RESERVES

573 IDCE–UNAMORT D/L – O/L RESERVES 630 IDCE AMORTIZATION

630 IDCE AMORTIZATION (additional transaction for suspended lease only during payoff) 640 IDCE – SUSPENED AMORTIZATION (additional transaction for suspended lease only during payoff)

650 IDCE – TOTAL RESERVES PAYABLE 574 IDCE–D/L – O/L RESERVES PAYABLE

576 ALT:IDCE–RESERVES PAYABLE 660 IDCE – ALT:LEASE INCOME ADJUSTMENT

575 ALT:IDCE–UNAMORT RESERVES 660 IDCE – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

582 IDCF–D/L–O/L RESERVES PAYABLE 581 IDCF–UNAMORT D/L – O/L RESERVES

581 IDCF–UNAMORT D/L – O/L RESERVES 631 IDCF AMORTIZATION

631 IDCF AMORTIZATION (additional transaction for suspended lease only during payoff) 641 IDCF – SUSPENDED AMORTIZATION (additional transaction for suspended lease only during payoff)

651 IDCF – TOTAL RESERVES PAYABLE 582 IDCF–D/L – O/L RESERVES PAYABLE

584 ALT:IDCF–RESERVES PAYABLE 661 IDCF – ALT:LEASE INCOME ADJUSTMENT

583 ALT:IDCF–UNAMORT RESERVES 661 IDCF – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

590 IDCG–D/L – O/L RESERVES PAYABLE 589 IDCG–UNAMORT D/L – O/L RESERVES

589 IDCG–UNAMORT D/L – O/L RESERVES 632 IDCG AMORTIZATION

632 IDCG AMORTIZATION (additional transaction for suspended lease only during payoff) 642 IDCG – SUSPENDED AMORTIZATION (additional transaction for suspended lease only during payoff)

652 IDCG – TOTAL RESERVES PAYABLE 590 IDCG–D/L – O/L RESERVES PAYABLE

592 ALT:IDCG–RESERVES PAYABLE 662 IDCG – ALT:LEASE INCOME ADJUSTMENT

591 ALT:IDCG–UNAMORT RESERVES 662 IDCG – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

598 IDCH–D/L – O/L RESERVES PAYABLE 597 IDCH–UNAMORT D/L – O/L RESERVES

597 IDCH–UNAMORT D/L – O/L RESERVES 633 IDCH AMORTIZATION

633 IDCH AMORTIZATION (additional transaction for suspended lease only during payoff) 643 IDCH – SUSPENDED AMORTIZATION (additional transaction for suspended lease only during payoff)

653 IDCH – TOTAL RESERVES PAYABLE 598 IDCH–D/L – O/L RESERVES PAYABLE

600 ALT:IDCH–RESERVES PAYABLE 663 IDCH – ALT:LEASE INCOME ADJUSTMENT

599 ALT:IDCH–UNAMORT RESERVES 663 IDCH – ALT:LEASE INCOME ADJUSTMENT

For an interest bearing loan type of lease:

Debit Credit

522 IDC8–RESERVES PAYABLE 521 IDC8–UNAMORTIZED RESERVES

521 IDC8–UNAMORTIZED RESERVES 604 IDC8 – FASB91 INCOME ADJUSTMENT

604 IDC8 – FASB91 INCOME ADJUSTMENT (additional transaction for suspended lease only during payoff) 614 IDC8 – SUSP FASB91 INCOME ADJUSTMENT (additional transaction for suspended lease only during payoff)

644 IDC8 – TOTAL RESERVES PAYABLE 522 IDC8–RESERVES PAYABLE

528 ALT:IDC8–RESERVES PAYABLE 654 IDC8 – ALT:LEASE INCOME ADJUSTMENT

527 ALT:IDC8–UNAMORT RESERVES 654 IDC8 – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

530 IDC9–RESERVES PAYABLE 529 IDC9–UNAMORTIZED RESERVES

529 IDC9–UNAMORTIZED RESERVES 605 IDC9 – FASB91 INCOME ADJUSTMENT

605 IDC9 – FASB91 INCOME ADJUSTMENT (additional transaction for suspended lease only during payoff) 615 IDC9 – SUSP FASB91 INCOME ADJUSTMENT (additional transaction for suspended lease only during payoff)

645 IDC9 – TOTAL RESERVES PAYABLE 530 IDC9–RESERVES PAYABLE

536 ALT:IDC9–RESERVES PAYABLE 655 IDC9 – ALT:LEASE INCOME ADJUSTMENT

535 ALT:IDC9–UNAMORT RESERVES 655 IDC9 – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

538 IDCA–RESERVES PAYABLE 537 IDCA–UNAMORTIZED RESERVES

537 IDCA–UNAMORTIZED RESERVES 606 IDCA – FASB91 INCOME ADJUSTMENT

606 IDCA – FASB91 INCOME ADJUSTMENT (additional transaction for suspended lease only during payoff) 616 IDCA – SUSP FASB91 INCOME ADJUSTMENT (additional transaction for suspended lease only during payoff

646 IDCA – TOTAL RESERVES PAYABLE 538 IDCA–RESERVES PAYABLE

544 ALT:IDCA–RESERVES PAYABLE 656 IDCA – ALT:LEASE INCOME ADJUSTMENT

543 ALT:IDCA–UNAMORT RESERVES 656 IDA – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

546 IDCB–RESERVES PAYABLE 545 IDCB–UNAMORTIZED RESERVES

545 IDCB–UNAMORTIZED RESERVES 607 IDCB – FASB91 INCOME ADJUSTMENT

607 IDCB – FASB91 INCOME ADJUSTMENT (additional transaction for suspended lease only during payoff) 617 IDCB – SUSP FASB91 INCOME ADJUSTMENT (additional transaction for suspended lease only during payoff)

647 IDCB – TOTAL RESERVES PAYABLE 546 IDCB–RESERVES PAYABLE

552 ALT:IDCB–RESERVES PAYABLE 657 IDCB – ALT:LEASE INCOME ADJUSTMENT

551 ALT:IDCB–UNAMORT RESERVES 657 IDCB – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

554 IDCC–RESERVES PAYABLE 553 IDCC–UNAMORTIZED RESERVES

553 IDCC–UNAMORTIZED RESERVES 608 IDCC – FASB91 INCOME ADJUSTMENT

608 IDCC – FASB91 INCOME ADJUSTMENT (additional transaction for suspended lease only during payoff) 618 IDCC – SUSP FASB91 INCOME ADJUSTMENT (additional transaction for suspended lease only during payoff)

648 IDCC – TOTAL RESERVES PAYABLE 554 IDCC–RESERVES PAYABLE

560 ALT:IDCC–RESERVES PAYABLE 658 IDCC – ALT:LEASE INCOME ADJUSTMENT

559 ALT:IDCC–UNAMORT RESERVES 658 IDCC – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

562 IDCD–RESERVES PAYABLE 561 IDCD–UNAMORTIZED RESERVES

561 IDCD–UNAMORTIZED RESERVES 609 IDCD – FASB91 INCOME ADJUSTMENT

609 IDCD – FASB91 INCOME ADJUSTMENT (additional transaction for suspended lease only during payoff) 619 IDCD – SUSP FASB91 INCOME ADJUSTMENT (additional transaction for suspended lease only during payoff)

649 IDCD – TOTAL RESERVES PAYABLE 562 IDCD–RESERVES PAYABLE

568 ALT:IDCD–RESERVES PAYABLE 659 IDCD – ALT:LEASE INCOME ADJUSTMENT

567 ALT:IDCD–UNAMORT RESERVES 659 IDCD – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

570 IDCE–RESERVES PAYABLE 569 IDCE–UNAMORTIZED RESERVES

569 IDCE–UNAMORTIZED RESERVES 610 IDCE – FASB91 INCOME ADJUSTMENT

610 IDCE – FASB91 INCOME ADJUSTMENT (additional transaction for suspended lease only during payoff) 620 IDCE – SUSP FASB91 INCOME ADJUSTMENT (additional transaction for suspended lease only during payoff)

650 IDCE – TOTAL RESERVES PAYABLE 570 IDCE–RESERVES PAYABLE

576 ALT:IDCE–RESERVES PAYABLE 660 IDCE – ALT:LEASE INCOME ADJUSTMENT

575 ALT:IDCE–UNAMORT RESERVES 660 IDCE – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

578 IDCF–RESERVES PAYABLE 577 IDCF–UNAMORTIZED RESERVES

577 IDCF–UNAMORTIZED RESERVES 611 IDCF – FASB91 INCOME ADJUSTMENT

611 IDCF – FASB91 INCOME ADJUSTMENT (additional transaction for suspended lease only during payoff) 621 IDCF – SUSP FASB91 INCOME ADJUSTMENT (additional transaction for suspended lease only during payoff)

651 IDCF – TOTAL RESERVES PAYABLE 578 IDCF–RESERVES PAYABLE

584 ALT:IDCF–RESERVES PAYABLE 661 IDCF – ALT:LEASE INCOME ADJUSTMENT

583 ALT:IDCF–UNAMORT RESERVES 661 IDCF – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

586 IDCG–RESERVES PAYABLE 585 IDCG–UNAMORTIZED RESERVES

585 IDCG–UNAMORTIZED RESERVES 612 IDCG – FASB91 INCOME ADJUSTMENT

612 IDCG – FASB91 INCOME ADJUSTMENT (additional transaction for suspended lease only during payoff) 622 IDCG – SUSP FASB91 INCOME ADJUSTMENT (additional transaction for suspended lease only during payoff)

652 IDCG – TOTAL RESERVES PAYABLE 586 IDCG–RESERVES PAYABLE

592 ALT:IDCG–RESERVES PAYABLE 662 IDCG – ALT:LEASE INCOME ADJUSTMENT

591 ALT:IDCG–UNAMORT RESERVES 622 IDCG – ALT:LEASE INCOME ADJUSTMENT

Debit Credit

594 IDCH–RESERVES PAYABLE 593 IDCH–UNAMORTIZED RESERVES

593 IDCH–UNAMORTIZED RESERVES 613 IDCH – FASB91 INCOME ADJUSTMENT

613 IDCH – FASB91 INCOME ADJUSTMENT (additional transaction for suspended lease only during payoff) 623 IDCH – SUSP FASB91 INCOME ADJUSTMENT (additional transaction for suspended lease only during payoff)

653 IDCH – TOTAL RESERVES PAYABLE 594 IDCH–RESERVES PAYABLE

600 ALT:IDCH–RESERVES PAYABLE 663 IDCH – ALT:LEASE INCOME ADJUSTMENT

599 ALT:IDCH–UNAMORT RESERVES 663 IDCH – ALT:LEASE INCOME ADJUSTMENT

IDC ASC 842:

U0103 Payoff supports the IDC ASC 842 amount. Payoff will produce the following general ledger transaction for IDC ASC 842:

Debit Credit

669 IDC AMORTIZATION – ASC 842 666 UNAMORTIZED IDC COST – ASC 842

Payoff Reversal

Reverse Lease Payoff
Reverse Asset Payoff
- Payment Reschedule
- Confirm Payment Schedule

This option reverses the previous payoff of an asset or a lease.

In general, lease and asset payoffs can be reversed as long as the transaction records for the payoff are still in the Transaction (RTX) table. Running the Historical Payment/DTX Cleanup update [U0451] through End of Month will remove older transaction records.

Reversing Lease Payoffs

If one of the assets on a lease has already been paid off, then the remaining lease is paid off, neither payoff can be reversed.

Reversing Asset Payoffs

If an asset payoff is followed any of the actions below, it cannot be reversed:

Paying off or terminating the remainder of the lease;
paying off or terminating another asset on the same lease;
placing another asset on the same lease using the Asset Add-On update [U0113].

If the user has purchased and is using the Notes Payable module, a warning message may be displayed if an active note is attached to the asset.

This screen is used to select Payoff Reversal from the Payoff options menu.

This screen is used to select the lease or asset whose payoff is to be reversed.

LEASE
This is the number of the lease whose payoff is to be reversed. To reverse an asset payoff, leave this field blank.
ASSET
This is the number of the asset whose payoff is to be reversed. To reverse a lease payoff, leave this field blank.

Reverse Lease Payoff

This is the first and only screen of a lease payoff reversal. It displays all the information recorded for the payoff.

SECURITY DEPOSIT AMOUNT
The amount of the security deposit used for the payoff is displayed.
SUSPENSE AMOUNT (CLEARED)
The amount of any suspense item used for the payoff is displayed.
CLEARED ITEM NUMBER
The suspense item number, if suspense was used, is displayed.
CHECK AMOUNT
The amount of the check entered on the payoff is displayed.
CHECK NUMBER
The check number entered for the payoff is displayed.
LOSS
Any amount recorded as a loss on sale is displayed.
REASON CODE
Select the reason code for the payoff reversal. Use the Help menu for a list for valid codes. This field is required for processing the payoff reversal.
BAD DEBT
Any amount recorded as a debit to the allowance for bad debt account is displayed.
INVOICE RENT
Any rent invoiced by the payoff is displayed.
SUSPENSE AMOUNT (ENTERED)
Any payoff overpayment that was placed in suspense is displayed.
ENTERED ITEM NUMBER
The suspense item number that was assigned to the SUSPENSE AMOUNT is displayed.
CASHIER'S CHECK AMOUNT
Any amount of overpayment that was refunded to the lessee is displayed.
GAIN
Any amount of overpayment that was retained as a gain on sale is displayed.
TOTAL PAYOFF AMOUNT
The total amount of the payoff is displayed.
DO YOU WISH TO PROCESS THIS PAYOFF REVERSAL (Y/N)?
Entering Y and clicking OK processes the payoff reversal. Entering N and clicking OK returns the user to the previous screen.

Reverse Asset Payoff

Payment Reschedule
Confirm Payment Schedule

This is the first screen of an asset payoff reversal. It displays all the information recorded for the payoff.

SECURITY DEPOSIT AMOUNT
The amount of the security deposit used for the payoff is displayed.
SUSPENSE AMOUNT (CLEARED)
The amount of any suspense item used for the payoff is displayed.
CLEARED ITEM NUMBER
The suspense item number, if suspense was used, is displayed.
CHECK AMOUNT
The amount of the check entered on the payoff is displayed.
LOSS
Any amount recorded as a loss on sale is displayed.
BAD DEBT
Any amount recorded as a debit to the allowance for bad debt account is displayed.
INVOICE RENT
Any rent invoiced by the payoff is displayed.
SUSPENSE AMOUNT (ENTERED)
Any payoff overpayment that was placed in suspense is displayed.
ENTERED ITEM NUMBER
The suspense item number that was assigned to the SUSPENSE AMOUNT is displayed.
CASHIER'S CHECK AMOUNT
Any amount of overpayment that was refunded to the lessee is displayed.
GAIN
Any amount of overpayment that was retained as a gain on sale is displayed.
TOTAL PAYOFF AMOUNT
The total amount of the payoff is displayed.
DO YOU WISH TO PROCESS THIS PAYOFF REVERSAL (Y/N)?
Entering Y and clicking OK processes the payoff reversal. Entering N and clicking OK returns the user to the previous screen.

Payment Reschedule

This screen is used for asset payoff reversals only. It is used to input a new payment schedule for the lease after an asset payoff reversal. Information about the existing lease and the payment schedule for the remaining term of the lease are displayed.

For operating leases, CONTRACT RECEIVABLE, TOTAL UNEARNED and NET INVESTMENT are not calculated.

ACQUISITION COST - CURRENT/NEW
The new acquisition cost is calculated and displayed. It is calculated by adding the acquisition cost of the paid off asset to the acquisition cost of the lease.
OTHER CHARGES - CURRENT/NEW
Other charges are calculated and displayed. The new charges are calculated by adding other charges for the asset paid off to other charges of the lease.
RESIDUAL - CURRENT/NEW
The new residual is calculated and displayed. It is calculated by adding the residual of the paid off asset and the residual of the remaining lease.
TOTAL UNEARNED - CURRENT
The current total unearned income is displayed.

(Not applicable to operating leases.)
NET INVESTMENT - CURRENT
The current net investment is displayed.

(Not applicable to operating leases.)
LESSOR YIELD - CURRENT
The current lessor yield is displayed.

REMAINING PAYMENT RESCHEDULE GRID (Asset Payoff Reversal)
The remaining payment schedule grid, based on the number of lease payments already accrued and reversed, is displayed.

Refer to Payment Schedule overview document for description of remaining payment schedule grid columns and values.