Introduction Cycle Invoices Reports

Cycle Invoices [U0302]

Generates invoices for a lease or a selection of leases.

End of Period: Refer to the End of Period section in this document for information on the corresponding EOP process.

Introduction

The Cycle Invoices update interactively selects and invoices a lease or a selection of leases. This interactive update allows the user to produce an invoice for an individual lease. For example, when a newly booked lease is back dated and payments are already due, the user who booked the lease may want to create an invoice immediately. Another example is producing a copy of an invoice lost in the mail. There is the option to invoice for a selection of leases or for all leases in the entire LeasePak system.

With the Off-Lease Billing module, LeasePak generates an invoice for a paid-off or a terminated lease/asset if an Assessment [U0105] exists for it. The generated invoice will be due in a period of 30 days from the date of issuance.

You can also configure Cycle Invoices to run as a part of the End of Period (EOP) process. As a part of EOP, LeasePak will automatically generate the selected Cycle Invoices reports for the selected portfolios. Use the Portfolio [U0212] - Predefined Cycles Customizations update to specify invoice cycles; and the Portfolio [U0212] - End of Period Customizations update to select the reports to generate.

LeasePak always uses the tax rate applicable to the lease due date, not the tax rate applicable to the date on which the accrual occurred.

The invoicing process performs the following functions:

• Applies Credit Memos
  The process applies any credit memos to outstanding lease payment amounts, use tax, vendor payment participation, and any recurring charges.
  
  It will also process any credit memos from 'N***' suspended earnings leases, matured 'N***' suspended earnings leases, and 'NMAT' matured leasse if the switches "Allow Prepayment to 'N***' Suspended Earnings Lease" and "Allow Prepayment to Matured Lease" in the Miscellaneous Customizations option of the Portfolio [U0212] update are set to 'Y' for the portfolio that the leases resides in..

  LeasePak process credit memo on daily basis to any existing invoice amount regardless of the invoice due date depending on the U0212 Portfolio → Miscellaneous Customizations option "Invoice Deferral Days" are set and if the "Apply Credit Memo Frequency" field is set to 'D'. If the Apply Credit Memo Frequency is set to 'M' LeasePak will continue to apply credit memo once a month during EOP. LeasePak will stop processing credit memo if the field is set to 'O'.

  Credit memo, if applied to a lease extended using the RES method on cash basis, will result in additional G/L transactions to occur which actually recognize the income and/or residual deferred during accruals. Refer to the Accrual Methods section in the LeasePak Calculations document for more information on this accrual method.

• Applies Interest Credits
  Applies interest credits to outstanding interest amounts on "B" method Interest Bearing Loans only.

  Cash Control users: Interest Credit is not available for use with Cash Control.

  If there are any recurring charges accounted for on accrual basis (A) then users will need to setup recurring charge type from U0212 Portfolio → Assessment Customizations option "Acctg (A/C)". For accrual basis recurring charges users must own " Accrual Basis Recurring Charges" module. For payments made to a recurring charge that has been identified with accrual basis accounting in U0212 Assessment Customization than LeasePak maintain the GLs as assessment income/payable-RCR charges XX to debit and credits the assessed fees.

• Marks accounts receivable record as billed
  "Billed" in connection with an accounts receivable record means the receivable has appeared at least once on an invoice.

• Formats invoice
  Formats the invoices in either individual lease format or group billing format. Formatting of group billing invoices is only in group billing format.

The following reports are produced by the Cycle Invoices update [U0302]:

• Individual Invoice Billing Register
  This report details information for the individual leases billed.

• Group Invoice Billing Register
  This report details information for the customer/groups billed.

• Invoice Exception Report
  This report contains information on errors encountered during the invoicing process.

Invoicing of pre-booked leases (leases booked with a commencement date in future) takes place one month before their commencement date. LeasePak creates an accounts receivable record for such leases at the time of booking, but no processing occurs until the invoicing process.

Group Billing

Group billing works using the Customer and Group mechanism. The user needs to define the customers and groups in LeasePak using the Customer [U0205] and Group [U0209] updates respectively.

Group billing allows the consolidation of billing of related leases on a single invoice. The printing of this bill is on a regular 8 ½ by 11 inch paper, instead of the formatted mailer of the individual invoices, thus providing room for printing of additional information on the invoice.

There may be up to 999 groups for each customer. The customer address functions as the billing address. Therefore, if one customer requires several different consolidated bills, a customer number should be established for each billing address and groups added for each customer followed by attachment of leases to appropriate groups.

Invoice Processing Process

The invoicing process consists of two main stages.

In the first stage of the invoicing process, selection of leases to process takes place. The process then extracts the information to print on the invoices for these and writes it to a scratch file. The second stage of the process uses this scratch file to produce the formatted output.

The name and location where the process creates the scratch file depends upon whether the process executed as a result of and End of Period or using Cycle Invoices [U0302].  Using the Cycle Invoices [U0302] update for invoicing creates the scratch file with the name LPU0302A.scr in the default directory of the user generating the invoices.With an End of Period process (such as End of Day), the invoicing process creates the scratch file in the EOP directory under the signed-in user’s default directory. The file is saved as EOP:Pxx__LPU0302A.scr; where EOP: is the logical name for the End of Period directory, and xx is the portfolio number (Example: EOP:P1__LPU0302A.scr). Thus, there will be an invoice scratch file for each portfolio involved in the End of Day process.

The second stage uses the file(s) created during the first stage to produce formatted invoices.

This 2-staged approach allows greater customization of invoices:

• User's may replace the default LeasePak invoice formatting program with their own to create custom invoices.
• The invoice scratch file generated by LeasePak follows a standardized format and it may be used as input to a list processor for constructing specialized invoice formats.

Interest Bearing Loan 'B' method users: LeasePak IBL 'B' Method allows the user to clear the negative amount when invoice includes a negative principal amount. Also, in case of applied interest credit the principal amount due is negative, than the applied interest credit amount cannot be greater than the sum of the principal amount due and the interest amount due.

Cycle invoices creates a scratch file for printing invoices. When user creates an assessment invoice as an "I" type invoice and then an advanced invoice is created for the same due date on that lease, the advanced invoice is a "H" type invoice. Cycle invoices then takes both the "I" type invoice and "H" type invoice and merges them together using the invoice number from the "I" type invoice in the scratch file.

Invoice Items

To have SCR type Notebook notes appear on the scratch file, you must first add the code SCR to the code category NOTE.TYPE in Custom Code [U0722], and then use the code SCR for the Note Type when adding the note to Notebook.

The output file(s) created by the first stage of the invoicing process contain a number of informational items for each invoice that may be used to customize the invoice.

The invoice items and their corresponding scratch file tags and LeasePak database fields are defined in a table form in a PDF file format (opens a new window).

Invoice items:

• Invoice date
• Start day of the payment due day range
• End day of the payment due day range
• Page size of the line printer used
• Key selection (ALL, or a selection of leases, or a specific lease)
• Invoice type (individual or group format)



• Lease or customer/group number



• Lessor name
• Lessor address 1
• Lessor city
• Lessor state
• Lessor ZIP code
• Lessor phone



• Remittance name
• Remittance address 1
• Remittance address 2
• Remittance city
• Remittance state
• Remittance ZIP code
• Remittance phone



• Lessee name
• Lessee address 1
• Lessee address 2
• Lessee city
• Lessee state
• Lessee ZIP code
• Contact
• Contact title
• Signer name
• Signer title
• Letter version
• Invoice format code
• Invoice format description



• Lease number
• Commencement date
• Maturity date
• System booking date
• Last payment due date
• Last payment date
• Lease description
• Term
• Fixed price purchase



• Vendor number
• Vendor name
• Vendor address 1
• Vendor address 2
• Vendor city
• Vendor state
• Vendor ZIP code
• Vendor phone



• Comments line 1
• Comments line 2
• Salutation code
• Approval officer (if applicable)
• Entity code (if applicable)
• Lease application number (if applicable)



• Message 1
• Message 2
• Message 3
• Message 4
• Message 5



• Customer note (note type SCR)
• Lease note (note type SCR)
• Asset note (note type SCR)



• Last paid amount



• Asset number
• Asset description
• Asset identification
• Asset purchase order
• Asset in-service date
• Asset address
• Asset city
• Asset state
• Asset ZIP code


• 
  
• Floating rate number of days (if applicable)
• Floating rate percentage (if applicable)
• Payment description (interest bearing loans only)
• Payment effective date (interest bearing loans only)
• Payment principal paid (interest bearing loans only)
• Payment interest paid (interest bearing loans only)
• Balance after payment (interest bearing loans only)
• Reversal description (interest bearing loans only)
• Reversal effective date (interest bearing loans only)
• Reversal principal paid (interest bearing loans only)
• Reversal interest paid (interest bearing loans only)
• Balance after reversal (interest bearing loans only)
• Interest description (interest bearing loans only)
• Interest credit (interest bearing loans only)
• IBL interest adjustment amount (interest bearing loans only)
• Original interest billed (interest bearing loans only)



• Principal outstanding (interest bearing loans only)
• Interest Rate (interest bearing loans only)
• Interest amount (interest bearing loans only)
• Days used to calculate interest (interest bearing loans only)



• Number of invoices (if multiple invoices)
• Payment due date
• Invoice type indicator (invoice or credit memo)
• Payment amount
  Asset Payment Amount (Asset Focus leases only)
• Interest amount
• Interest adjustment amount



• Assessment billed indicator
• Assessment description
• Assessment type
• Assessment amount
  
• Asset Sales Tax (Asset Focus leases only)
• Asset Recurring Charges (Asset Focus leases only)



• City Tax (if assessment 'STAX')
• County Tax (if assessment 'STAX')
• State Tax (if assessment 'STAX')
  



• Invoice number (to be printed on invoice)
• Invoice payment due date
• Latest payment made date
• Remittance amount
• End of Record marker

Contact a client services representative at NetSol for more information on developing a custom formatting program.

Cycle Invoices

Using the selection dialog, you can specify the lease or leases to generate invoices for by providing any of the given criteria on the dialog.

All

(Optional)

Type "X" to invoice all leases, or leave blank to invoice a specific portfolio, company, region, office, and/or lease. If selected, LeasePak creates both individual and group invoices.

All Cust

(Optional)

Type " X" to invoice all leases belonging to customers, or leave blank to invoice a particular portfolio, company, region, office, lease, and/or customer/group. If selected, LeasePak invoices only leases that belong to a customer or to a group.

Port

(Optional)

Enter the number of the portfolio to invoice, or click to select from the list. Leave blank to invoice across portfolios.

Comp

(Optional)

Type the number of the company to invoice, or click to select from the list. Leave blank to invoice across companies.

Regn

(Optional)

Enter the number of the region to invoice, or click to select from the list. Leave blank to invoice across regions.

Offce

(Optional)

Enter the number of the office to invoice, or click to select from the list. Leave blank to invoice across offices.

Lease

(Optional)

Enter the number of the lease to invoice. Leave blank to invoice across leases.

Cust

(Conditional)

Enter the number of the customer to invoice. Customer number is mandatory with Group and is optional with Portfolio, Company, Region, Office, or Lease selections.

Group

(Optional)

Enter the group number to invoice, or click to select from the list. Group is optional with Portfolio, Company, Region and Office selections.

Click OK to proceed.

Next, the Selection dialog shows some additional fields for providing the payment days range and the invoice date. The invoicing process will generate invoices for the leases with payment dates that fall on or in between the given days range.

Start Day

(Mandatory)

This field initially defaults to the value 1. Change, if desired, the beginning value for the range of payment due days.

End Day

(Mandatory)

This field initially defaults to the value 31. Change, if desired, the ending value for the range of payment due days.

Invoice Date

(Mandatory)

Enter the date, in MM/DD/YY or DD/MM/YY format, depending on the Date Format Preference field in Security [U0706], to print on the invoices. This date is informational only. It represents the date on which the invoices are run and normally should be the current date. It might be other than the current date if invoices need to be re-created or if the actual invoicing run is late.

Reports

NOTE: If there are more than 25 assessment items against a lease on different invoices, then the first 24 assessments will be displayed individually, and the remaining will be sum up as MISCELLANEOUS ASSESSMENTS.

Cycle Invoices - Individual Invoice Billing Register

Lease

(Display)

Shows the lease number.

Lessee Name

(Display)

Shows the lessee's full name.

Invoice

(Display)

Shows the invoice number.

Total Amount Due

(Display)

Shows the total amount due. This will also include any previous pending payments.

Payment Amount

(Display)

Shows the total billed amount not billed previously on any invoice. This includes bundled recurring charges. This does not affect the payment application, accounting or amounts stored in the data.

Past Due Amount

(Display)

Shows the previously billed total amount for this lease.

Current Assessments

(Display)

Shows the amount of current assessments to the lease.

Description

(Display)

Shows the description for the charge or assessment.

Cycle Invoices - Group Invoice Billing Register

The Group Invoice Billing Register report [U0302E] reports at the group level and provides the following invoice information for each group invoiced:

Group

(Display)

Shows the Group identifier.

Group Name

(Display)

Shows the Group name.

Invoice

(Display)

Shows the invoice number.

Lease

(Display)

Shows the lease number of the invoiced lease.

Total Amount Due

(Display)

Shows the total amount due. This will also include any previous pending payments.

Total Payment Amount

(Display)

Shows the total billed amount not billed previously on any invoice. This includes bundled recurring charges. This does not affect the payment application, accounting or amounts stored in the data.

Past Due Amount

(Display)

Shows the previously billed total amount for this lease.

Current Assessments

(Display)

Shows the amount of current assessments to the lease.

Description

(Display)

Shows the description for the charge or assessment.

Cycle Invoices - Invoice Exceptions

The Cycle Invoices Exception report [U0302A] reports at the group and individual lease level and provides messages for each group and/or individual lease that failed to invoice:

Cust/Group

(Display)

Shows the identifier of the customer or group not invoiced.

Port/ Comp/ Regn/ Offce/ Lease

(Display)

Shows the portfolio, company, region, office and lease numbers for the un-invoiced lease.

Exception Message

(Display)

Possible error messages and their meanings are:

Accrual System Record does not Exist
This message indicates that no record exists for this lease or group on the Accrual system (RAS) file. It indicates a data error. Notify your client services representative at NetSol.

Address Record does not Exist
This message indicates that no record exists for this lease or group on the Lessee (RAL) file. It indicates a data error. Notify your client services representative at NetSol.

Applied Credit Memo cannot be Updated
A credit memo which was applied could not be updated. This message indicates a data error. Notify your client services representative at NetSol.

Applied Tax cannot be Updated
The sales tax amount on the invoice does not match the sales tax amount on the tax payable file. This message indicates a data error. Notify your client services representative at NetSol.

Demographic Record does not Exist
This message indicates that no record exists for this lease or group on the Demographic (RDM) file. It indicates a data error. Notify your client services representative at NetSol.

Warning: RAR/RTP Tax Bill/Assess Amts do not Agree
(Accrual based accounting only): This message indicates that the tax amount billed on the A/R file (RAR) does not agree with total amount of tax assessed on the Tax Payable file (RTP). This might indicate that an asset payoff was performed for this lease, and the additional tax from the payoff has updated the tax assessed/paid on the Tax Payable file (and the A/R file would not be updated). Or this message might indicate that there is corruption in the RTP or RAR file, and the itemized tax due in the Invoice scratch file (LPU0302A.SCR) may not be accurate. Further research is necessary to determine if this situation is valid or indicates a form of data corruption. Note - if the itemized tax due (i.e. State, County, and City) is not detailed on the formatted invoice, then this warning message may be ignored.

Tax Payable (RTP) Records do not Agree with A/R Record (STAX)
This message indicates that the city, county, and state tax assessment amounts on the Tax Payable (RTP) records do not equal the amount of the total use tax assessment on the A/R (RAR) record.

Error on RTP Record Getting Use Tax Data
This message indicates that no use tax record exists in the RTP file for this invoice.

Invoice Record is Locked
This message indicates that a record for the group or lease on the Invoice (RAR) file is locked. Try executing the Cycle Invoice update [U0302] for this lease or group again. This message should not appear if executing through End of Period.

No Exception Found
This message indicates that no errors were detected. The Cycle Invoices update [U0302] executed properly for all selected leases.

No Assets Belong to this Lease
This lease does not have any assets associated with it. This message indicates a data error. Notify your client services representative at NetSol.

Number of Charges per Lease Limit Exceeded
The invoicing limit maximum is 120 charges (payments and assessments) per lease. This message indicates that the maximum for this lease is exceeded. It is necessary to make payments for this lease to reduce the number of outstanding charges.

Number of Invoices per Lease Limit Exceeded
The invoicing limit maximum is 120 invoices and credit memos per lease. This message indicates that the maximum for this lease is exceeded. It is necessary to make payments for this lease to reduce the number of outstanding invoices.

Number of Leases per Group Limit Exceeded
The invoicing limit maximum is 300 leases per group. This message indicates that the maximum for this lease is exceeded. Add another group with the same characteristics as the existing group using the Group update [U0209], and then add the leases to the new group.

Number of Assets per Lease Limit Exceeded
The invoicing limit maximum is 100 assets per lease. This message indicates that the maximum for this lease is exceeded. Book another lease with the same characteristics as the existing lease using the New Lease update [U0101], and then add the assets to the new lease.

Remittance Address Record does not Exist
This message indicates that no record exists for this lease or group on the Remittance Address (RNA) file. Add the remittance address record through the Auxiliary Address update [U0704].

Remittance Address Limit Exceeded
The invoicing process has a limit of 99 remittance addresses. This message indicates that more than 99 remittance addresses exist. Reduce the number of remittance addresses used through the Remittance Address option of the Auxiliary Address update [U0704].

Tax Payable Record is Locked
This message indicates that a record for the group or lease on the Tax payable (RTP) file is locked. Try executing the Cycle Invoice update [U0302] for this lease or group again. This message should not appear if executing through End of Period.

Tax Released Record is Locked
This message indicates that a record for the group or lease on the Tax released (RTR) file is locked. Try executing the Cycle Invoice update [U0302] for this lease or group again. This message should not appear if executing through End of Period.

Transaction is in Progress
This message appears during interactive processing. It indicates that the End of Period process [U04] is already submitted for the portfolio. During the End of Period process [U04] the updates for the portfolio are locked. This message should not appear if executing through End of Period.

Unknown Transaction Type xxxx
An invoice for this lease contains an invalid assessment type, where xxxx represents the assessment type. This message indicates a data error. Notify your client services representative at NetSol.

Vendor Record does not Exist
This message indicates that no record exists for this lease or group on the Vendor (RLR) file. Add the vendor record through the Vendor update [U0201].

 

End of Period

EOP Only	No
Frequency	Predefined cycle
Sequential Updates	Yes
Skip Notes	See comments below

For more information about End of Period, refer to U04 End of Period Overview.

 

This module is the same update that may be executed interactively through the Cycle Invoices update [U0302]. The creation of an invoice is a 2-stage process. The first stage creates a 'scratch' file table of all the information that may be printed on an invoice. The second stage actually creates the formatted invoice. This allows the user to generate special invoice formats by substituting a unique program for the generic second-stage invoicing program. Contact your NetSol representative for more information on custom invoice programs.

In addition to the formatted individual and group invoices, this update also produces an exceptions report and individual and group billing registers.

Skip Notes: If this module is skipped, then the Cycle Invoices (Formatting) update [U0457] should also be skipped. The group of leases scheduled to be invoiced for the current End of Period is automatically invoiced during the next End of Period Cycle Invoices.

To use the interactive Cycle Invoices update, the user must manually determine which leases to invoice. The End of Period Cycle Invoices update automatically determines the appropriate leases to invoice, using 3 items:

• The invoicing deferral days at the portfolio level, specified through the INVOICING DEFERRAL DAYS parameter found on the second screen of the Miscellaneous Customizations option of the Portfolio update [U0212],
  
  
• The invoicing cycle, specified through the Predefined Cycles Customization option of the Portfolio update [U0212], and
  
  
• An internal calendar maintained by LeasePak which stores information about the last End of Period invoicing process.

In automatically determining the appropriate leases to invoice for a particular End of Period, LeasePak calculates a starting day and an ending day. All leases with due days on or between these starting and ending days are invoiced. The starting day for a particular End of Period Cycle Invoices is calculated as:

ENDING DAY OF THE LAST END OF PERIOD CYCLE INVOICES + ONE DAY

If the starting day calculation is greater than 31, it is set to 1. The ending day for a particular End of Period Cycle Invoices is calculated as:

CURRENT INVOICING CYCLE - INVOICING DEFERRAL DAYS (portfolio level)

If the ending day calculation is zero, the number 31 is added to it. If the ending day calculation is negative, the number of days in the previous month is added to it. For example, if the current invoicing cycle is March 9, and there is a 10 day invoicing deferral period, the ending day calculation is as follows:

9 - 10 + 28 = 27 (assuming 28 days in February)

To illustrate the automatic invoice cycle determination, assume the following information:

• The invoicing deferral days at the portfolio level is 10 days,
  
  
• The invoicing cycle is 1 and 15 (i.e., invoices are generated twice a month on the first and the fifteenth),
  
  
• The ending day of the last End of Period Cycle Invoices is 22,
  
  
• The current date is the 20th of the month.
  
  
• The starting day of the End of Period Cycle Invoices is the ending day of the last End of Period Cycle Invoices plus one:

  STARTING DAY = 22 + 1 = 23

• The ending day of the End of Period Cycle Invoices is the current invoicing cycle less the invoicing deferral days at the portfolio level:

  ENDING DAY = 15 - 10 = 5

Therefore, leases with payment due days between the 23rd of the previous month and the 5th of the current month are invoiced.
Continuing this same example, assume the End of Period Cycle Invoices as shown in example 1 completes and it is now fifteen days later. The starting information is now:

• The invoicing deferral days at the portfolio level is 10 days (same as before),
  
  
• The accrual cycle is 1 and 15 (same as before),
  
  
• The ending day of the last End of Period Cycle Invoices is 5,
  
  
• The current date is the 5th of the month.
  
  
• The starting day of the End of Period Cycle Invoices is the ending day of the last End of Period Cycle Invoices plus one:

  STARTING DAY = 5 + 1 = 6

• The ending day of the End of Period Cycle Invoices is the current invoicing cycle less the invoicing deferral days at the portfolio level, adjusted by 31 if the resulting value is zero or negative.

  ENDING DAY = 1 - 10 = -9 + 31 = 22

Therefore, leases with payment due days between the 6th and the 22nd of the current month are invoiced.

 

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