LeasePak Utilities

225 OFSA Forecasting

The utility will calculate the deferred tax for all leases in a portfolio. It will calculate and accumulate deferred tax on monthly basis for each lease, starting from the commencement date through the maturity date at the lease level. The program will perform calculations up to the actual maturity date of the lease. For open-ended leases, a maximum of 30 years of data will be calculated. The following selection criteria will be used to determine which leases are to be processed:

• As long as the lease is in RLS table, the calculations will be performed for that lease.
• The utility will ignore leases that have been paid off, terminated, matured, or marked as inactive.
• Only leases with a tax component will be processed.

Conditions

• If the utility is executed first time for a lease (i.e., no record exists in the forecasting table), it will calculate deferred tax from commencement date through the maturity date.
• If records already exist in the forecasting table for a lease, the utility will recalculate records with dates greater than the current month.

Limitations:

• If asset has been Sold, Terminated, or Split, asset-level income remain for the remainder of the current year. Asset-level income will be used only during the current year.
• True lease accrual uses accrued payments to calculate Net Receipts, whereas true lease cash uses payments received. For projection purposes, the system assumes that true lease cash equals true lease accrual; therefore, the history of payments received may not match the calculated results.
• If a lease has been rebooked, existing records in the RFT table may not be overwritten unless accruals are reversed back to Day 1.
• During the initial execution, beginning balances are calculated based on current data. Therefore, if there have been mid-term adjustments, the calculated balances may differ from the original balances.
• If a lease is terminated, existing records in the RFT table are not deleted.

The utility will validate leases within the specified portfolio to ensure they are neither renewed nor matured and that they contain a tax component. It will then check the Deferred Tax Projection (RDT) table for those leases. If no records are found, the utility will call the projection program using the commencement date as the beginning date. Otherwise, it will use the last accrued-to date.

Running the OFSA Forecasting Utility

After logging on the LeasePak server, start the LeasePak Utilities and enter '225'. This utility runs from the command line same as other LeasePak utilities. The interface is as follows:

This utility option will create forecasting records for deferred tax.
	
Do you wish to continue (Y/N)? 

Enter Y or y to continue. However, if you enter any other response including (blank), the system exits the utility and returns back to the LeasePak Utilities main menu. Enter Y or Y. The program will display:

Client Password?

Enter the correct LeasePak client string password to proceed. The program will display:

Enter portfolio, <RETURN> to exit: 

Enter correct portfolio number to process records for OFSA forecasting. An invalid portfolio number will result in the message “Portfolio is invalid. Begin transaction fails . ” and return the user to the same input . On entering correct code, the program will display:

Enter multi-process count (1 - 40), <RETURN> to exit:

Enter multi-process count from 1 – 40 or 0 to exit. If user press enter than the utility will also exit.

The program will place the output file in $udata directory as "p#_lxforecast_YYYYMMDD_005034.log".

Where:

p# is the portfolio number
YYYYMMDD is year, month , and date respectively
005034 is time with minutes and seconds