Lease Billing

** This utility is under development and is not yet available. **

Before proceeding with the lease billing, Lease Billing Edit must be run.
The edit program produces a Lease Billing Edit report, which must be manually checked to:

Confirm that all leases, customers and amounts are correct.
Errors can be corrected in Leases.

To check the billing history of a lease, use Lease Billing Inquiry.
This inquiry displays all invoice numbers created from the lease.
To view the Billing Period and Amounts on the invoices, use Invoice Search utility and drill down in the window to the Details and then expand the record.
Alternatively, reprint the invoices using Print Invoices.

Look for leases that had equipment returned or sold, since these leases should have been terminated.
To terminate a lease, use Terminate A Lease .

When the edit report has be checked, proceed with Lease Billing as follows:

INVOICE DATE

The Bill To Date from the last Lease Billing Edit run will default to the screen. Accept this date, or over-type with the desired Invoice Date.

NOTE: When billing one month in advance, over-type the default date with the previous month.

Date Range Control:: If date range checking is activated for the operator the invoice date will be checked to make sure the date is valid against the date ranges set as acceptable in Date Range Control for module code RSIH - INVOICES.
This feature is useful to prevent date entry errors or posting to closed accounting periods.

BILL TO DATE

The current Bill To Date from the last Lease Billing Edit run will display.

PRINT INVOICES

Type Y (YES) to print the lease invoices now.
As the lease is billed, it will print the invoice then bill the next lease.

Type N (NO) to print the invoice later.
This is useful if the printer is not accessible or is busy with the wrong forms.
The invoices can be printed later using Print Invoices.

Force Invoice Printing in Daily Close: Unprinted invoices can be printed in the Daily Close 1.
The force printing is set in Divisional Invoice Parameters with the prompt Print Invoices In Daily Close. This ensures that at least one copy of the invoice is made.

BILLING CODE

The Billing Code selected on the last Lease Billing Edit run will display.

Lease Billing Details:
The lease billing list displays in the same order as printed on the report generated from the Lease Billing Edit run.
If a certain lease has a billing problem or it should have been terminated, the lease can be deleted from this billing list, and the remaining leases can be billed.
Leases with billing issues can then be corrected and billed later.
If a lease on the Lease Billing Edit report is terminated using Terminate A Lease, it is still included in the Lease Billing List for that same run as the billing list matches the edit report.
Delete that lease from the billing list too, else the lease will be billed anyway and an invoice for zero amount will be created.
Normally a terminated lease would be skipped on both the edit report and the billing list.

SEQ: The sequence number automatically tracks the number of leases to be billed in this Lease Billing run.
Delete a Lease from the List:
Click on the sequence number of the desired sequence number to be deleted to highlight it.
Then press <F7> or the DELETE button (the top left corner will say Delete Lines Selected = 1) and press <F3> ACCEPT Key.
The billing list will re-display removing the deleted lease.
LEASE #: The lease # to be billed will display.
SHIP TO NAME: The customer name where the equipment is currently being used will display.
DETAILS: Window in the Details field to view the products on this lease.
BILLING AMOUNT: The total invoice amount, including taxes will display.
Finished?: If all of the leases are correct, click ACCEPT.

START CYCLE BILLING

Type N (NO) to save the edit and exit. The billing list can be run later if required.

Type Y (YES) to begin the billing of the leases on the list above.
If the Print Invoices option was selected, the invoices will print out as they are billed.
Examine each invoice to ensure that the billing periods and amounts are correct.

All invoices created with the Lease Billing program are posted with the next Daily Close run when Daily Close 1, Daily Close 2, and Daily Close 3 are completed.

CORRECTING LEASE BILLING ERRORS

Standard Errors on Unposted Invoices:
If a lease was not corrected before the Lease Billing was run, correct the invoice now, (providing the invoice is still current and has not been posted with the Daily Close programs) as follows:
1. Fix the lease so that future billing will be correct, using Leases using Change mode.
2. Adjust the unposted invoice in Miscellaneous Invoices in Change mode as follows:
  
  Customer Name & Address
  Lease Amount
  Taxes (review in Expanded product details)
  Note: The lease billing period (From/To dates) cannot be corrected in the invoice.
  Refer to the instructions further on for details.
3. After fixing the invoice, be sure to reprint the lease invoice from within Miscellaneous Invoices or from Print Invoices .
Wrong Billing Periods on Unposted Invoices:
If the Billing Period (From/To Date) on the unposted invoice is incorrect, choose 1 of 2 options below:

Option 1:
1. If the rest of the unposted invoice is ok except for the billing dates, manually write on the invoice the correct billing dates. This may be unprofessional, but is a shortcut.
2. Reset the lease for the next billing by correcting the Last Billed date on the lease to reflect the correct date in Last Billed Date For Leases.
  Example: If the last billing of the lease was from January 20 to February 20 then the correct Last Billed date is February 20.
  The billing period for next month will begin at February 20 and be billed to March 20.
Option 2:
1. Delete the unposted invoice using Delete A Single Invoice in preparation for rebilling the lease for the correct time period to create a replacement invoice.
2. Reset the lease Last Billed date back to enable rebilling of the lease in Last Billed Date For Leases.
3. Run Lease Billing Edit and then Lease Billing for ONLY the problem lease number.
  When prompted for From/To Lease #, type in the problem lease #. (Do not re-bill all leases over again.)
Errors on Posted Invoices:
If the invoice has already been posted through Daily Close 1, Daily Close 2, and Daily Close 3, then the invoice must be issued with the error.
Follow the steps below:
1. A credit invoice can be issued for the posted invoice as outlined in Miscellaneous Invoices subsection "Issuing Credit Invoices".
2. Correct the lease for future billing in Leases.
3. Reset the lease Last Billed date for the next billing in Last Billed Date For Leases.

EXCHANGES OF LEASED EQUIPMENT:
If a customer returns equipment and exchanges it for another product, follow the steps below:

Terminate the lease billing for the equipment being returned using Terminate A Lease.
Either start a new lease for the new equipment using Leases if the lease billing period for the new equipment does not coincide with the existing equipment on the lease, or add the new equipment to the existing lease. This can be done if the new equipment has the same billing period as the existing equipment.
All equipment on a lease will be billed to the same Bill To Date, e.g. from February 12 to March 12.
To add to an existing Lease in Change mode access the Leased Product Details, then change to Add mode to enter the new equipment.
Note: At the Date Out prompt, be sure to type in the correct day when the billing of the new equipment should begin. The original date of the lease will display but can be over-typed.

SELLING LEASED EQUIPMENT
When a customer decides to keep the equipment, sell the equipment to the customer as follows:

Use Terminate A Lease to mark the equipment as returned on that lease.
Even though the equipment is NOT returned (it was sold), the equipment must be marked as returned in order to terminate the billing of the equipment on the lease.
Sell the equipment by issuing an invoice in Sales Order Invoices.
When entering the product onto the invoice, be sure to override "R" with "S" at the R/S prompt in order to indicate the equipment is sold.

It could be helpful to enter the Lease # in the invoice comments to provide a cross-reference.

GIVING AWAY OLD EQUIPMENT:
Sometimes, the customer keeps the equipment on a lease for such a long time, that the equipment is given to the customer. It is said, that the lease "paid" for the equipment.
Even if the equipment is given to the customer, the disposal or sale must still be tracked by creating an invoice for zero selling price in order for the equipment to be removed from inventory.
This enables the proper inventory control and accounting to occur.

As an alternative to a zero selling price, "apply the lease to the sale".
This can be achieved by entering a selling price equal to a lease rebate (i.e. sell it for $500 and give a -$500 rebate), then the net invoice amount will still be zero.
The customer will not be charged an additional amount, however, the accounts will show a $500 sale with a $500 reduction in lease revenue. Refer to Issuing Rebates for steps to do this.

This alternative may be preferable for accounting purposes, rather than showing a zero selling price (loss) on the sale of rental/lease equipment. Also, this may be very important if staff commissions are based on sales only.

ISSUING REBATES
Some firms allow the customer a rebate for the lease/rental when they sell the equipment, i.e. they allow the customer a reduction in the selling price, based on part or all of the rental.
To do this use Miscellaneous Invoices instead of Sales Order Invoices, since the Miscellaneous Invoice allows both rentals and sales on the same invoice.

Example: Customer buys equipment after leasing it for several months.

         Selling Price                  $500
         Less rebate for leasing      - $100
                                       -----
         Net price to customer          $400

When entering the invoice, type in the product rental and sale transactions as follows:

SEQ         PRODUCT#  DESCRIPTION         R/S  QTY           EACH   EXTENDED
---         --------  -----------         ---  ---           ----   --------
001         100-0993  TABLE - SALE         S   1.00         500.00    500.00
002         100-0993  TABLE - LEASE REBATE R  -1.00         100.00   -100.00

This will reduce rental/lease revenue by $100, and record a full sales revenue of $500.
This approach may be very important, if staff commissions are based on sales only.

Topic Keyword: RSLD14