Overview Lease Selection CPI Verification CPI Payment Reschedule Exception Report

The Consumer Price Index (CPI) Adjustment Method

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

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

Used when the payment amounts for the remainder of the payment schedule are adjusted by adding an amount that depends on a float rate index, such as the consumer price index. Use this method to make an annual lease anniversary adjustment to a lease or group of leases.

Leases to be adjusted must meet 3 criteria:

1. Lessor accrual method must be one of the precomputed methods.
2. Lease must have a FLOAT INDEX code. (Refer to Book Lease update [U0101] for coding.)
3. Month portion of LEASE DATE must match month portion of PROCESSING DATE

Adjustments are calculated as follows:

First, LeasePak calculates the average base rate during the processing month entered for the financial institution coded as the lease’s float index.

Next, LeasePak multiplies future payment amounts for the lease by that average percentage to get an additional amount.

Finally, LeasePak adds the calculated amount to each future payment.

For example, if 09/95 is entered as the PROCESSING MONTH, all leases with a LEASE DATE in September of any year before and including 1995 have their future payment amounts adjusted upward. If such a lease’s FLOAT INDEX is coded 2, and 2 represents Morgan Prime, then that lease’s rents will be adjusted by the average float rates in September 1995 for Morgan Bank

Lease Selection

At the selection screen users must select a single lease by specifying its lease number.

Field Description

Lease

(Mandatory)

Enter lease number to perform payment adjustment.

CPI Verification

Field Description

Adjust Payment Schedules

(Mandatory)

Type 'Y' to have the selected leases adjusted.

CPI Payment Reschedule Exception Report

Portfolio

(Display)

Shows the portfolio number.

Company

(Display)

Shows the company number.

Region

(Display)

Shows the region identifier.

Office

(Display)

Shows the office identifier.

Lease

(Display)

Shows the lease number.

Type of Error

(Display)

Shows the descriptive messages for the errors encountered.

Exception Messages

• FINANCIAL INSTITUTION DOES NOT EXIST
  The Financial Institution record does not exist on the Names (DRNM) file. Add the financial institution through the Financial Institution Name update [U0708].
  
  
• FLOAT RATES RECORD DOES NOT EXIST
  Float rates record does not exist on the Daily Base Rates (DRPR) file. Add the base rates through the Base Rates update [U0705].
  
  
• FAILED TO UPDATE FILES
  File updating could not be completed. This message indicates a data error. Notify your customer support representative at NetSol.
  
  
• LEASE ACCRUAL METHOD MUST BE PRECOMPUTED
  Lessor accrual method is not precomputed and lease cannot be adjusted. Verify that this is the correct lease to be processed. If this is the correct lease, change the lessor accrual method to be a precomputed type using the Rebook update [U0116].
  
  
• LEASE HAS VENDOR PARTICIPATION
  Lease contains vendor participation and cannot be adjusted. Verify that this is the correct lease to be processed. If this is the correct lease, rebook it without vendor participation using the Rebook update [U0116].
  
  
• LEASE HAS INVESTOR PARTICIPATION
  Lease contains investor participation and cannot be adjusted. Verify that this is the correct lease to be processed. If this is the correct leas, rebook it without investor participation using the Rebook update [U0116].
  
  
• LEASE IS AT THE MAXIMUM PAYMENT SCHEDULE
  The lease is currently using all 360 payment schedule positions. No additional payment schedule entry may be made. Notify your customer support representative at NetSol.
  
  
• LEASE IS OUTSIDE PAYMENT SCHEDULE
  The number of payments accrued does not match the lease’s payment schedule. This message indicates a data error. Notify your customer support representative at NetSol.
  
  
• LEASE MUST BE ACTIVE
  Lease is not active (i.e., is paid off or charged off). Verify that this is the correct lease to be processed. If this is the correct lease to be processed, reverse the payoff using the Payoff Reversal option of the Payoff update [U0103] to return the lease to its status prior to the payoff.
  
  
• LEASE: XXXX IS LOCKED
  Where ‘xxxx’ is the lease number. The Lease record on the Lease (DRLS) file is locked. Try executing the Payment Reschedule update [U0104] again.
  
  
• NO EXCEPTIONS FOUND
  No errors were detected. All updating completed successfully.
  
  
• PORTFOLIO: XXXX DOES NOT EXIST
  Where ‘xxxx’ is the portfolio number. The portfolio record on the Portfolio (DRAP) file does not exist. This message indicates a data error. Notify your customer support representative at NetSol.
  
  
• PORTFOLIO: XXXX IS LOCKED
  Where ‘xxxx’ is the portfolio number. The portfolio record on the Portfolio (DRAP) file is locked. Try executing the Payment Reschedule update [U0104] again.
  
  
• PORTFOLIO: XXXX NEXT READ 1 FAILED
  Where ‘xxxx’ is the last portfolio number read. This message indicates a data error. Notify your customer support representative at NetSol.
  
  
• PORTFOLIO: XXXX NEXT READ 2 FAILED
  Where ‘xxxx’ is the last portfolio number read. This message indicates a data error. Notify your customer support representative at NetSol.
  
  
• YIELD COULD NOT BE CALCULATED
  A yield could not be calculated with the adjusted financial information. This message indicates a data error. Notify your customer support representative at NetSol.

 

LeasePak  Documentation Suite

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