** This utility is under development and is not yet available. **
The Leasing Process
Usually, leases are billed daily for monthly time periods, i.e. on March 21st, the billing clerk runs the Lease Billing from March 21st to April 21st; on March 22nd, the billing clerk runs the Lease Billing from March 22nd to April 22nd, etc. This allows leases for equipment delivered today to be billed today. Most leases are billed a month in advance to maximize cash flow, i.e. invoice issued March 21st, for the period March 21st to April 21st. (The invoice date is independent.)
As equipment is returned or sold to the customer, the lease is Terminated using Terminate A Lease. It is important to terminate old leases before doing the lease billing run, otherwise you may invoice a lease which should have been skipped.
There is no official lease termination date, i.e. if the equipment is not returned and the lease is not terminated, then the software automatically assumes that you have extended the lease beyond the original period. It will continue to use the last billing rate as the lease rate for billing extended leases.
If the customer decides to keep the equipment, you must terminate the lease first, then sell the equipment to the customer using Sales Order Invoices (or another invoicing program). If you are giving the equipment to the customer free (due to long term rental), you must still sell the equipment on an invoice for $0.00 price each, in order to remove that item from Inventory. This ensures that the proper accounting is completed.
When you are ready to bill the leases, you must run Lease Billing Edit. This produces an edit report, which you need to confirm has all of the correct leases, customers and amounts. If you find problems, you can fix the leases using LEASES.
When you have checked the Lease Billing Edit Report, you are ready to run Lease Billing. This program will bill the leases exactly as they appear on the edit report. You can de-select certain leases by deleting the lease from the lease billing list on screen in the Lease Billing. (The deleted leases can be billed separately later.) Generally, the invoices are printed immediately during the billing run.
If you have questions about the billing history of a lease, you can use Lease Billing Inquiry. This inquiry lists all invoices created from a specific lease.
To get a complete list of all leases and their present value, use O/S Lease Summary. This report prints in alphabetical order. It should be checked monthly against the outstanding lease files, to ensure that all leases have been setup correctly. It should also be checked, to ensure that leases with equipment returns and sales have been terminated.
When all equipment has been returned and the lease has been terminated, you may no longer require the lease. You may delete the lease using Delete A Single Lease. It is up to you to decide how long to keep the lease information.
MONTHLY BILLING ONLY:
This lease program is based on monthly billing only. It is not
designed to handle 28 day billing. Note: the invoice date is
independent of the billing dates.
LEASE EQUIPMENT TREATED LIKE RENTAL EQUIPMENT:
When equipment is entered on a lease, it is treated like a rental
of the product. In the product file, the quantity out on a lease is
added to the quantity out on a contract. There is not a separate
QTY OUT ON LEASE field in the product file.
Only items setup as rental products can be recorded on a lease. This enables two accounting requirements to be met:
Note: if the equipment is sold from a lease, the software treats the equipment the same as it would other rental equipment, i.e. a Disposal Transaction is written, and the rules for posting the sale of rental equipment are followed. Refer to Rental Inventory, "Selling Rental Equipment".
Equipment that is on lease can be depreciated. The software uses the same rules for depreciation as it would for other rental equipment. For more information on depreciation, see Depreciation Methods, and Depreciation Classes.
HOW LEASE RATES ARE SET:
The leasing programs use a percentage of the selling price to
establish the lease rate. This percentage can apply for the whole
lease, or you may use a graduated percentage based on the number of
months.
Example: Selling price is $500.00
From Month To Month Lease Rate Lease Amount
---------- -------- ---------- ------------
1 12 use 6% of the selling price $500 $30.00
13 24 use 5% of the selling price $500 $25.00
25 36 use 4% of the selling price $500 $20.00
If the equipment is not returned after 36 months, the last rate
(4%) will be used for lease billing. A lease which extends beyond
the last TO MONTH (i.e. beyond 36 months) period is considered to
be an extended lease, and will continue to be billed until the
lease is terminated.
LEASE FILING SYSTEM:
Once the customer has signed the lease and it has been setup, you
should file the lease for future reference. The filing system
should be in alphabetical order, according to the SHIP TO name,
which is where the equipment will be used. Once a lease has been
terminated, it should be filed in a second filing system for closed
leases. Again, the leases should be in alphabetical order.
Use this program to enter a lease. This program assumes that you are using a pre-printed lease form, which you have manually filled in and the customer has signed. It does not print a lease agreement. Entering the lease enables the monthly invoicing process, and keeps track of the location of the equipment.
Note: The security by division feature as determined by Divisional Restricted Views, does NOT apply to any of the Lease Billing programs.
The prompts are:
The ability to over-type the document number is controlled by
the Allow Custom Document# flag for the document type
defined in Last Used Transactions.
A warning is generated if the number has already been used.
To view an existing lease in Change mode, enter the lease number or press to <F4> select one from the window, searching by customer name.
All income, revenue, and expenses are tracked by the division,
and posting to the correct G/L accounts for that Division is
automatic.
Special Rates can also be setup to be assigned to the division in
the "Rental Rates & Pricing" parameters on the
Operations tab of Configure System
Settings in Special Rate
Codes.
G/L transactions to update inventory costs always post to the G/L Location from which the inventory was relieved.
For existing leases, this date can be the original date of the lease. (The start date of the lease billing is another field.)
The lease 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 RSLF LEASE ENTRY. We strongly recommend that you use this feature to prevent date entry errors or posting to closed accounting periods. To activate the date range checking, the operator must be set in Operators with Date Range Override = N (NO).
If your firm uses 28 day billing for contracts, but monthly billing for leases, the 28 day system for billing day codes setup in Review Calendar is ignored. It uses the DAY entered for the LEASE DATE as the cycle billing code.
<F4> ADDING NEW CUSTOMERS
All On Account customers should have their own customer number. To add a new customer to the Customer Information file, press WINDOW Key when prompted for CUSTOMER #. Then press ADD Key at the prompt for ALPHA CODE. The software temporarily exits the leasing program, and goes to the Customer Information file. Please see Customers File for instructions on adding new customers.
A flag in the Required Document Information can be set in the Company Contract Parameters forcing the operator to enter a valid site code on each lease.
A flag in the Required Document Information can be set in the Company Contract Parameters to force the operator to enter a valid Postal or Zip code to match the mask format as setup for the customer's currency in Currency Codes.
BILL TO:
The BILL TO prompts should be used to indicate who is paying for
this lease. When a Customer number is selected, the BILL TO fields
display the customer name and address as entered into the Customer
Information file. To move quickly to the SHIP TO fields, press the
<TAB> Key to skip these prompts.
If you over-type any of the customer's information, (i.e. change a mailing address), the changes will print on the lease invoice; however, the original customer information remains unaltered. Do NOT use CASH customers, since all leases will automatically be billed On Account.
SHIP TO:
If you have selected a Site number, the Site address will display.
Otherwise, the Ship To Address will display the same as the BILL TO
fields. You may over-write this address to reflect actual SHIP TO
information, which will print on the lease invoice. Try to leave
the SHIP TO NAME with the actual name of the customer where the
equipment is being used, since this prints on the Lease Billing
report and is used in the Lease Billing to identify the lease. To
skip the SHIP TO fields, press the TAB Key.
A flag in the Required Document Information can be set in the Company Contract Parameters to make the salesman as setup in Salesman Codes, a mandatory field on all documents.
Lease Comments:
After accepting the Lease Header (screen 1), the lease comments
will appear.
This is valid only in ADD Mode. To access the comments in any other
mode, move the cursor to the field COMMENTS and press the WINDOW
Key.
To skip the lease comments, press ACCEPT Key twice or press ESCAPE Key twice. You will automatically be taken to screen 2 - Lease Details.
Lease Details:
If you are adding to an existing lease and want the lease details to print in a specific order, you can insert a new detail line between existing sequence numbers. Move your cursor to the desired place to insert the new product (cursor must be in the SEQ column) and press Insert Key (next to HOME key).
Lease Terms:
If you are entering existing leases, make sure that THIS date is the date that the NEXT BILLING should use as its start date.
i.e.. Lease Date: (Original Start Date) 01/01/95 Last Date it was Manually billed 04/01/95 to 05/01/95 Date used for DATE OUT should be 05/01/95.
This makes the next billing start at 05/01/95 and bill to 06/01/95.
Example: Selling price is $500.00
From Month To Month Lease Rate Lease Amount
---------- -------- ---------- ------------
1 12 use 6% of the selling price $500 $30.00
13 24 use 5% of the selling price $500 $25.00
25 36 use 4% of the selling price $500 $20.00
Explanation of the example:The FROM MONTHS number should not overlap the previous TO MONTHS. Make sure you start at 1. See the examples below:
Example 1: Example 2:
---------- ----------
From Month To Month From Month To Month
1 1 1 6
2 3 7 12
4 4 13 99
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