U0212 Portfolio

New Lease Customizations

• Accounting Settings
• IDC Method, Relative Dates
• Term, Rate, Factor Ranges

Accounting Settings

This screen is used to establish or change parameters used by the New Lease update [U0101], such as accounting methods, IDC calculation methods, etc.

• LEASE DATE NOT AFTER OTHER DATES:
  The Book Lease option of the New Lease update [U0101] allows entry of a lease date later than the commencement date only if this parameter is unchecked.
  
  
• BACK DATED NEW LEASES APPEAR ON DELINQUENCY REPORT:
  Check this box if back-dated leases with outstanding invoices, i.e., new leases with past commencement dates, should appear on the delinquency report and be considered delinquent by the Collections module. Otherwise, uncheck the box.
  
  Back-dated leases may immediately appear to be delinquent because payments with past due dates are established as accounts receivables by the booking process. If the check box is unchecked, then such leases do not appear on the delinquency reports or in Collections unless they have gone through their first income accrual and late charge process and are still delinquent.

• ASSIGN CASH DISBURSEMENTS THROUGH SESSION:
  Check this box if cash is to be disbursed through sessions. Otherwise, uncheck the box. For this parameter to take effect, the SESSION UPDATE USED parameter on the third screen of the Miscellaneous Customizations option of the Portfolio update [U0212] must be checked.
  
  Sessions provide balancing control over transactions involving cash disbursement, such as vendor payments, broker payments, etc. If sessions are used, an operator may not process payments greater than the amount assigned to that operator's session. Refer to the Session update [U0111] for more information.

• CLIENT RECEIVES ADVANCE MONEY:
  This parameter is used by the Book Lease option of the New Lease update [U0101] as the default for the screen which inquires whether advance money has been received at commencement. Advance money includes security deposit, advance payments, advance payment tax, down payment, down payment tax, interim payment, and interim payment tax if the lease is accrued in advance.

• CLIENT RECEIVES ADVANCE MONEY (R/I/A/P)
  When the Partial Deductions module is purchased, this parameter is used by the AMOUNTS DUE AT COMMENCEMENT screen in the Book Lease option of the New Lease update [U0101] as the default for the screen which inquires whether advance money has been received at commencement. Advance money includes security deposit, advance payments, advance payment tax, down payment, down payment tax, interim payment, and interim payment tax if the lease is accrued in advance.
  
  Enter the one of the following selections:
  
  
  • R = Advanced Funds Are Received
  • I = Advanced Funds Are Invoiced
  • A = Advanced Funds Are Deducted from Accounts Payable
  • P = Advance payment amount plus associated tax as a reduction to accounts payable owed to the dealer.
    
    
  Selection of P defaults only the advance payment amount plus associated tax as a reduction to accounts payable owed to a dealer. P option allows defaults only when booking that what changes on invoice due at commencement are invoiced and which are being considered as paid by reducing the amount of accounts payable due to the dealer. If user selects P, LeasePak will default only the advance payment and associated tax into the A/P column of the partial deductions screen of U0101 Book Lease. Advanced payments are the scheduled lease or loan payments from payment schedule that is due at commencement. All other payments due at commencement will default as invoice.
  
  
• FUNDING INTEREST IS USED:
  Check this box if funding interest is calculated at lease commencement. Otherwise, uncheck the box. Funding interest represents interest due or payable because of early or late disbursement of funds, either before or after the lease commencement date. It may increase or decrease accounts payable for asset(s) under the lease. Refer to the FUNDING INT/DAYS field in the Book Lease option of the New Lease update [U0101] for more information.

• SECURITY DEPOSIT AFFECTS YIELD:
  This field is not active.

• BOOK ITC ACCRUE:
  Check this box if Investment Tax Credit income should be accrued for book purposes. Otherwise, uncheck the box.
  
  This parameter should not be changed if an active lease accruing book ITC income exists in the portfolio. Otherwise, problems resulting from data inconsistencies may occur. A warning message is displayed if the parameter is changed and this situation exists. A conversion of the General Ledger and data may be needed to change this parameter.

• INTERIM RENT:
  Check this box if interim rent payment is considered a one-time income item; the entire payment is recognized as income in the first month of the lease. Uncheck the box if interim rent is considered part of minimum lease payments receivable; income from interim rent is amortized over the life of the lease.
  
  This parameter should not be changed if an active lease with an interim rent payment exists in the portfolio; problems resulting from data inconsistencies may occur. A warning message is displayed if the parameter is changed and this situation exists. A conversion of the General Ledger and data may be needed to change this parameter.

• ACCRETE RESIDUAL:
  Check this box if residual income is to be separated from lessor income for accrual purposes. Uncheck the box if residual income is not separated from lessor income.

• VENDOR PARTICIPATES IN INCOME:

  Check this box if the vendor or investor participates in a portion of the income earnings of the lease. EUncheck the box if the vendor or investor participates in a percentage of the lease payment. Participation in the lease payment is restricted to precomputed interest type leases (for example, level yield, rule of 12/78ths, etc.).

  This parameter should not be changed if an active lease with vendor participation exists in the portfolio; problems resulting from data inconsistencies may occur. A warning message is displayed if the parameter is changed and this situation exists.

  You must also set this to 'Yes' for investor income participation.

  Vendor Participation is not compatible with Accrete Residual.

• CALCULATE ASSET YIELD:
  Check this box if a yield is to be calculated at the asset level. For an asset-level yield to be calculated, a payment amount must be entered for the asset through the second screen of the Add Asset option of the New Leases update [U0101]. Therefore, TRACK AUX NON-VEHICLE INFO and/or TRACK AUX VEHICLE INFO parameters must be set to Yes.

Calculate Asset Yield is not considered by LeasePak for Asset Focus leases.

• ALLOW TAXABLE ASSET ON IBL:
  Check the box if assets booked using the interest bearing loan accrual methods may charge sales/use tax. Uncheck the box to force sales/use tax to be NONR for all assets on IBLs. If the IBL Principal Adjustment module [U0125] is to be used, this switch should be unchecked, since taxes cannot be properly prorated for adjustments made midway in an accrual period.

• TRACK AUX NON-VEHICLE INFO:
  Check this box if auxiliary information is to be tracked for non-vehicle assets (class begins with an E). If the check box is checked, an additional screen appears in the Add Asset option of the New Leases update [U0101] and the Asset update [U0210] to allow entry or modification of this information. Refer to the AUXILIARY INFORMATION (NON-VEHICLE) screen of Add Asset [U0101] for more information on what non-vehicle auxiliary information is tracked.

• TRACK AUTOMOBILE OPTIONS:
  Check this box if automobile options should be tracked for all assets with an automobile classification (class begins with V). If automobile options are tracked, several extra screens appear in both the Add Asset option of the New Lease update [U0101] and the Asset update [U0210].

• TRACK AUX VEHICLE INFO:
  Check this box if auxiliary information is to be tracked for vehicle assets. If Y is entered, an additional screen appears in the Add Asset option of the New Leases update [U0101] and the Asset update [U0210]. This screen appears in addition to the screens that appear when the TRACK AUTOMOBILE OPTIONS parameter is set to Yes. Refer to the AUXILIARY INFORMATION (VEHICLE) screen of Add Asset [U0101] for more information on auxiliary vehicle information.

• UPFRONT VALUE ADDED TAX:
  Two methods exist for billing value added tax (VAT). It may be charged on periodic rentals just like other sales/use tax, or it may instead be charged both upfront on the acquisition cost and during the lease term on only the interest portion of payments. If the latter method is used, a manual assessment or one-time charge must be set up to bill the VAT.
  
  Upfront VAT is supported for only Lessor Accrual Type code of xVVx or xOVx.
  
  When the switch is checked, and the Use Tax Code for the asset is NOPF or NOUT, upfront VAT is calculated as a percentage of the asset's acquisition cost and charged at lease commencement. In addition, VAT is charged on the interest portion of each periodic payment; no VAT is charged on principal. Principal includes down payment and all advance payments at lease booking, but not interim rent, which is considered interest.

Upfront VAT is not compatible with Lease Discounting, nor with Disburse Upfront Tax. If the UPFRONT TAX switch is checked, the LEASE DISCOUNTING USED switch on the Modules Customization option of the Portfolio update [U0212] must be unchecked, and Disburse Upfront Tax cannot be implemented.

For Vertex O users only: If portfolio is a Vertex O portfolio than, the Upfront Value Added Tax cannot be set to Yes.

• CKECK CREDIT BAL ON ASSET ADD:
  This field is not supported in LeasePak.

• CLC DAYS DELINQ 30/360:
  Check this box if, instead of using actual calendar days to determine delinquency, LeasePak should assume all months are 30 days and all years are 360 days. Delinquency reports which categorize by number of days delinquent, for example, will consider all accounts which have missed two monthly payments in the 60 day category, regardless of the number of calendar days in those two months.

• LEASE DATE AFFECTS YIELD:
  Check this box if the first accrual period should begin on the lease date, instead of the usual commencement date. The intention is that the lease date should be either before or after the commencement date, creating a longer and shorter initial accrual period respectively and affecting yield. This parameter affects the following types of transactions when Lease Date Affects Yield switch is set to Yes:



Accrual Methods	Note
AAPR, RAPR	Supports AAPR, RAPR leases
	Recalculates the Yield %
	Calculates the lessor income when the lease date on the lease is either before or after the commencement date.
	Prorate Income (when “Prorate Income, IDC/IDR” switch is set to Y.)
RAX*	Supports IBLs at fixed rate, principal and interest, billed monthly in arrears.
	Calculates the interest income when the lease date before the commencement date.
	Prorate Income (when “Prorate Income, IDC/IDR” switch is set to Y.)

This parameter applies only if the JULE Fund 1994 was purchased.

• APPLY PAYMENT TO NOTE:
  This field allows payments to be applied to pending Notes. Check or uncheck the box for payments to be applied.

• DEFAULT DESECURTIZE PORTFOLIO:
  This field defaults the current Portfolio number for automatic de-securitization.
  
  LeasePak allows for delinquent leases to be moved from their original Company, Region, Office to another. LeasePak will automatically change keys on delinquent leases, based on how the lease was set up during the time of booking. The Book Lease option in the New Lease update [U0101], allows the option to Securitize the lease during the booking process with the SECURITIZE field. If the Securitized lease becomes delinquent, the End of Period process will create a batch input file for Batch Change Key to select delinquent leases marked for de-securitization. This process automatically moves the delinquent leases to the default Company, Region, Office selected.

The DEFAULT DESECURTIZE PORTFOLIO field, automatically defaults the number of the Portfolio selected to add or change in the first screen of the Portfolio update [U0212].

• DEFAULT DESECURTIZE COMPANY:
  Enter the default Company to which all Securitized leases will default if delinquent.

• DEFAULT DESECURTIZE REGION:
  Enter the default Region to which all Securitized leases will default if delinquent.

• DEFAULT DESECURTIZE OFFICE:
  Enter the default Office to which all Securitized leases will default if delinquent.

• DEFAULT DESECURTIZE BANK CODE:
  Enter the default desecuritization Bank Code.

• APPLY PAYMENT TO NOTE:
  If both the Notes Payable and the Multiple Banks modules are purchased, this parameter controls how payments are applied to notes payable which are linked to leases. Check this box if payments to a lease applied through the Payment update [U0102] or through Batch Payments [U0415] should automatically be applied to a note payable attached to that lease. Uncheck the box if payments to a lease have no effect on the note attached to the lease.

IDC Method, Relative Dates

This screen is used to change the edit checking ranges that are in effect during the Book Lease option of the New Lease update [U0101].

Items may be left blank if edit checking is not required. For instance, if there is a minimum but no maximum documentation fee, enter the minimum fee and leave the maximum fee blank. LeasePak only checks that the documentation fee entered is greater than or equal to the minimum fee specified.

• INSURANCE FEE PERCENTAGE:
  Enter the percentage of INSURANCE PREMIUM which will be recorded as an INSURANCE FEE receivable for new leases. The receivable does not appear on invoices. When payment is received, satisfy the receivable with a General Ledger Adjustment [U0121] to credit Insurance Fee and debit cash.

• MINIMUM ORIGINAL ACQUISITION COST:
  Enter the minimum original acquisition cost. If an amount is entered, it is used as an edit check in the Add Asset option of the New Lease update [U0101].

• MAXIMUM ORIGINAL ACQUISITION COST:
  Enter the maximum original acquisition cost. If an amount is entered, it is used as an edit check in the Add Asset option of the New Lease update [U0101].

• MINIMUM DOCUMENTATION FEE
  Enter the minimum documentation fee. If an amount is entered, it is used as an edit check in the Book Lease option of the New Lease update [U0101].

• MAXIMUM DOCUMENTATION FEE:
  Enter the maximum documentation fee. If an amount is entered, it is used as an edit check in the Book Lease option of the New Lease update [U0101].

• TOLERANCE:
  Lease payment amounts that are entered in the Book Lease option of the New Lease update [U0101] can be verified by LeasePak (e.g., for level yield transactions, lease payment amount at lease level equals payment amounts for assets on lease). The amounts entered by the operator must agree with LeasePak's calculations within this tolerance range. If this amount is zero, then the amount input by the operator must agree exactly with LeasePak's calculated amount, otherwise the lease may not be booked.

• INS FINANCE:
  This field works in conjunction with Pre-Paid Insurance, allowing LeasePak to track insurance and finance charges through the life of the lease. Check this box for LeasePak to track Insurance Finance.

Verify that Insurance Percentage and Insurance Bank fields are populated accordingly in the Vendor [U0201] update.

• INSURANCE POLICY FEE:
  When the Insurance Finance switch is set to Y, the user may populate this field with the Insurance Policy Fee. The default value is $75.00.

• AUTO APPLY IBL INTERIM RENT:
  Check this box to use Automatic Interim Interest Calculation for IBLs in the portfolio.

• MAXIMUM NUMBER OF DAYS BEFORE CURRENT DATE FOR LEASE DATE:
  Enter the maximum number of days before the current date to which a lease date may be set. If a number is entered, it is used as an edit check in the Book Lease option of the New Lease update [U0101].

• MAXIMUM NUMBER OF DAYS AFTER CURRENT DATE FOR LEASE DATE:
  Enter the maximum number of days after the current date to which a lease date may be set. If a number is entered, it is used as an edit check in the Book Lease option of the New Lease update [U0101].

• MAXIMUM NUMBER OF DAYS BEFORE CURRENT DATE FOR DISBURSEMENT DATE:
  Enter the maximum number of days before the current date to which a disbursement date may be set. If a number is entered, it is used as an edit check in the Book Lease option of the New Lease update [U0101].

• MAXIMUM NUMBER OF DAYS AFTER CURRENT DATE FOR DISBURSEMENT DATE:
  Enter the maximum number of days after the current date to which a disbursement date may be set. If a number is entered, it is used as an edit check in the Book Lease option of the New Lease update [U0101].

• MAXIMUM NUMBER OF DAYS AFTER LEASE DATE FOR COMMENCEMENT DATE:
  Enter the maximum number of days after the lease date to which the commencement date may be set. If a number is entered, it is used as an edit check in the Book Lease option of the New Lease update [U0101].

Term, Rate, Factor Ranges

This screen is used to change percentages, rates, and other ranges that control LeasePak's edit checking during the Book Lease option of the New Lease update [U0101]. Items may be left blank if edit checking is not required. For instance, if there is a minimum lease term but no maximum, enter the minimum and leave the maximum blank. Minimum and maximum income rates need only be entered for the types of accruals that may be performed (lease, vendor, investor) and for the accrual methods utilized.

• MINIMUM LEASE TERM:
  Enter the minimum lease term. If a number is entered, it is used as an edit check in the Book Lease option of the New Lease update [U0101].

• MAXIMUM LEASE TERM:
  Enter the maximum lease term. If a number is entered, it is used as an edit check in the Book Lease option of the New Lease update [U0101].

• MINIMUM DISCOUNT RATE:
  Enter the minimum discount rate. This rate is used primarily in the payoff calculation for the net present value of the remaining lease payments. If the minimum rate is 10%, then enter 10.00000, not ___.10000.

• MAXIMUM DISCOUNT RATE:
  Enter the maximum discount rate. This rate is used primarily in the payoff calculation for the net present value of the remaining lease payments. If the maximum rate is 10%, then enter 10.00000, not ___.10000.

• FLOATING RATE FLOOR:
  Enter the default for the minimum interest rate that may be used for floating rate leases. If the base plus add-on interest rate falls below the floating rate floor, the floor is used instead. This value may be changed for each lease. It should be less than the ceiling, if the ceiling is non-zero.

• FLOATING RATE CEILING:
  Enter the default for the maximum interest rate that may be used for floating rate leases. If the base plus add-on interest rate exceeds the floating rate ceiling, the ceiling is used instead. This value may be changed for each lease. If there is no ceiling, enter zero (0). If non-zero, the ceiling should be greater than the floor.

• BATCH APPLICATION STATUS:
  Enter or change the batch application status. This field will allow all pending applications and pending assets to be booked through the Batch Application [U0101] module with the same status. LeasePak will allow Batch Book Requirement [U0801] to be processed, when the application status is equal to the one entered in this field. All statuses may be defined in Application Status [U08011] update. The status assigned must begin with 'A' for Approved.

• BATCH APPLICATION DISBURSAL BANK CODE:
  Enter or change the batch application disbursal bank code. This is the general ledger account that Batch Applications will use to automatically disburse all asset, broker fee, IDC1, and IDC2 accounts payable associated with the assets and applications being booked. Following are the available disbursement types:
  1. COMM
     The default bank code will be 126. Click on Help arrow for a list of valid bank codes.
  2. IDC1
     The default bank code will be 126. Click on Help arrow for a list of valid bank codes.
  3. IDC2
     The default bank code will be 126. Click on Help arrow for a list of valid bank codes.
  4. NEWA
     The default bank code will be 126. Click on Help arrow for a list of valid bank codes.
  5. NEWD
     The default bank code will be 126. Click on Help arrow for a list of valid bank codes.

• MINIMUM LEASE:
  Enter the minimum lease rates for level-yield, rule of 12/78ths, straight line, simple, and/or floating rate leases. The lease rate is the total lease rate (including any vendor or investor participation). These rates are used as an edit check in the Book Lease option of the New Lease update [U0101]. Enter rates only for the types of accruals that are performed. For instance, if straight line interest accrual is not used, do not enter rates for that type.

• MAXIMUM LEASE:
  Enter the maximum lease rates for level yield, rule of 12/78ths, straight line, simple, and/or floating rate leases. These rates are used as an edit check in the Book Lease option of the New Lease update [U0101].

• MINIMUM VENDOR RATE:
  Enter the minimum vendor rates for level yield, rule of 12/78ths, straight line, simple, and/or floating rate leases. The vendor rate is the participating vendor's portion of the lease rate. These rates are used as an edit check in the Book Lease option of the New Lease update [U0101].

• MAXIMUM VENDOR RATE:
  Enter the maximum vendor rates for level yield, rule of 12/78ths, straight line, simple, and/or floating rate leases. These rates are used as an edit check in the Book Lease option of the New Lease update [U0101].

• MINIMUM INVESTOR RATE:
  Enter the minimum investor rates for level yield, rule of 12/78ths, straight line, simple, and/or floating rate leases. The investor rate is the participating investor's portion of the lease rate. These rates are used as an edit check in the Book Lease option of the New Lease update [U0101].

• MAXIMUM INVESTOR RATE:
  Enter the maximum investor rates for level yield, rule of 12/78ths, straight line, simple, and/or floating rate leases. These rates are used as an edit check in the Book Lease option of the New Lease update [U0101].