Purpose

1.  – used when a bailment dealer request a termination amount for an asset sold or due to be sold
   
2.  – used when an asset has been sold to determine the outstanding amount to be paid
   
3.  – used to process a credit where the asset no longer forms part of the bailment dealer stock
   
4.  – used to reverse a termination of a bailment account, all transactions are reversed and the account returned to its pre termination condition
   

Access

1. View | Bailment Dealer | Bailment Dealer Details | Accounts tab | Accounts Search Tab |  | Termination Tab
   
2. View | Bailment Accounts |  | Termination Tab

Dialog Details

If the account has been terminated, then only the reverse termination functionality is available.

Termination Enquiry

The following dialog displays:

Details Specific Fields

Field	Explanation
Termination Date	This will default to todays date It can be changed but must meet the following criteria: Must be later than the open date of the Bailment Account If the date entered is earlier than the latest transaction date a warning message will be displayed as this may cause interest to be clawed back
Communication Type	[F2] to  a Communication Type that has been specifically set up to provide Bailment termination quotes These may be retained on file for reference and/or sent to the bailment dealer as confirmation of the payment amount required for payment

On  the following dialog will display:

Check on the  if the communication is to be created by not printed

 to complete the enquiry

Terminate Account

 

The following dialog will display:

Details Specific Fields

Field	Explanation
Termination	This will default to today's date but can be changed to any date, but must meet the following criteria Must be later than the open date of the Bailment Account Must be earlier than or equal to today If the date entered is earlier than the latest transaction date a warning message will be displayed similar to : Terminating an account before the latest transaction date may cause interest to be clawed back
Client	Allows the asset sale invoice to be raised to a third party If left blank, the Dealer associated with the account will be used Otherwise, [F2] and  the clients who's name and address details should be applied to the invoice instead
Termination Reason	[F2] to  the appropriate Termination Reason Note: In two instances, these will be prefilled from the Termination Reason on the Bailment Account Type - where the account is under curtailment (Curtailment Termination Reason) and where a client is selected (Third Party Termination Reason)
Direct Debit Date	Enter the date that a direct debit should be made for the terminated assst Leave blank if the dealer is not on direct debit

On  the following dialog will display:

 

1. A Transaction posts to the Future Ledger for the negative value of the Future Ledger Balance using the Asset Termination Future Trans Type specified on the Bailment Account Type
   
2. A Transaction will post to the Current Ledger for the same value as above (but opposite sign) using the Asset Termination Current Trans Type specified on the Bailment Account Type
   
3. A Transaction will post to the Current Ledger for the GST value of the Current Ledger Transaction using the Asset Termination Current Tax Trans Type specified on the Bailment Account Type.  GST will be calculated by reference to the GST Code associated with the Company held on the Bailment Account.
   
4. A Termination Reason will be set on the Account using the Early Termination Reason specified
   
5. Termination Date is set as the value date of the process
   
6. Interest will not post on termination.  It will remain as an accrued amount on the Account and post as part of the normal month end interest posting process.  
   

 

Terminating an Account within the ESR Period

On Termination of a Bailment Account that is within the Early Settlement (ES) Rebate period there will be an accrued ES Rebate amount

On  the following additional transactions will be created:

1. A Transaction will post the accrued ES Rebate amount, to the Current Ledger of the Bailment Account, using the ES Rebate transaction type specified on the Bailment Account Type.  The transaction will post as a negative value and have a reference of the Transaction Type Code, and a description of the transaction type description.         
   
2. A Transaction will post the ES Rebate GST amount, to the Current Ledger of the Bailment Account, using the ESR GST transaction type specified on the Bailment Account Type.
   
3. The ES Rebate GST amount is the value of the accrued ES Rebate on that account multiplied by the GST Rate.  The GST Rate can be determined by reference to the Company associated with this Bailment Dealer.  The transaction will post as a negative value and have a reference of the Transaction Type Code, and a description of the Transaction Type Description.
   
4. A Transaction will post the accrued ES Rebate to the Future Ledger of the Distributor Account, using the Dist ESR Charge transaction type specified on the Bailment Account Type.  The Transaction will post as a positive value and have a reference of the Transaction Type Code, and a description of the Transaction Type Description.
   
5. If the Distributor is a Non Related Party, a transaction will post the accrued ES Rebate GST amount to the future ledger of the Distributor Account, using the Dist ESR GST transaction type specified on the Bailment Account Type.
   The ES Rebate GST amount is the value of the accrued ES Rebate on that account multiplied by the GST Rate.  The GST Rate can be determined by reference to the Company associated with the Bailment Dealer.  The transaction will post as a positive value and have a reference of the Transaction Type Code, and a description of the Transaction Type Description.

Credit Return

 

 to create the Credit Return transactions on the Bailment and Distributor Accounts

1. A credit transaction will be posted to the Bailment Account for the Bailment Asset Gross Purchase Price, with a value date of the Return Date entered and using the Asset Return transaction type assigned to the Bailment Account type
   
2. If the Distributor is a non-related party, a debit transaction will be posted to the Bailment Account for the GST amount, with a value date of the Return Date entered
   
3. A transaction will be posted to the Distributor Account for the Bailment Asset Gross Purchase Price, with a value date of the Return Date entered and using the Distributor Asset Return transaction type assigned to the Bailment Account type
   

Reverse Termination

This will create reversing transactions for each of the termination transactions returning the account to the state it was before it was terminated

Each Termination transaction and its corresponding reversal transaction will be automatically grouped by the reversal process

The  button is disabled if the Bailment Dealer is closed