Bailment Account Type Setup
Purpose
To differentiate different types of Bailment Accounts
Examples maybe:
- Related Party
- Non Related Party
Access
- Account | Edit/View Account Types |
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Dialog Details
Asset Processing
Field | Explanation |
| Asset Purchase Trans Type | When a bailed asset is purchased this Transaction Type will be used to post the gross purchase price of the asset to the future lodger of the Bailment Account It must be a Bailment System Transaction Type |
| Asset Tax Trans Type | When a bailed asset is purchased from a non-related party this Transaction Type will be used to post a tax/GST credit to the future ledger of the Bailment Account |
Dist Asset Purchase Trans Type | When a bailed asset is purchased this Transaction Type will be used to post the gross purchase price to the current ledger of the Distributor Account This must be a Distributor System Transaction Type |
Asset Credit Return Trans Type | When a bailed asset is returned to the Distributor this Transaction Type will be used to post a credit to the future ledger of the Bailment Account for the gross credit note value |
Dist Asset Credit Return Trans Type | When a bailed asset is returned to the Distributor this Transaction Type will be used to post a debit to the current ledger of the Distributor Account for the gross value of the credit note This must be a Distributor System Transaction Type The result of the asset credit return process will be to:-
The effect of the two postings to the bailment account will be to reduce its balance to zero |
Asset Credit Return Term Reason | This is the Termination Reason the will be applied to the Bailment Account by the Asset Credit Return process |
Asset Price Adjustment Trans Type | When a price adjustment is created for a bailed asset this Transaction Type will be used to post the adjustment amount to the current ledger of the Bailment Account |
Dist Asset Price Adjustment Trans Type | When a price adjustment is created for a bailed asset this Transaction Type will be used to post the adjustment amount to the current ledger of the Distributor account This must be a Distributor System Transaction Type The result of the price adjustment process will be to:-
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Account Payable GL Code | This GL Code is used when, during bailment account creation, the payout of the asset invoice is to a third party supplier rather than a distributor The GL Code specified should be the same one as is used when creating a bailment account directly with a distributor only |
Dealer Transfer Termination Reason | A specific termination reason is used when an asset is transferred between dealers The termination type specified here will be the default reason used during the transfer process |
Termination
Termination is the process that takes place once a bailment asset has been sold.
The process will transfer the amount due from the Bailment Account future ledger to the current ledger, freeze the accrual of floor plan interest and begin the accrual of default interest.
Terminations may arise from:
- Sale of an asset by Dealer and their payment to the finance company
- Asset Sold out of Trust (SOT)
- Natural Maturity
| Field | Explanation |
| Asset Termination Future Trans Type | This Transaction Type posts a credit to the future ledger of a Bailment Account for the asset value net of price adjustments |
| Asset Termination Current Trans Type | This Transaction Type posts the asset value to the current ledger It will always be the same value as the future ledger posting |
Asset Termination Current Tax Trans Type | This Transaction Type is used to add the GST transaction amount to the current ledger |
Web Asset Sale Termination Reason | [F2] to select the Termination reason that should be used when a Dealer uses the sell asset process on Bailment Web |
External Termination Reason | This termination reason will be used if a termination is taken place from the External Audit System |
Maturity Termination Reason | This termination reason will be used if a termination process is run anywhere in the system, and no termination reason has been specified |
Third Party Termination Reason | This termination reason will be used if, when the manual termination process is undertaken, a third party client is selected for the invoice to be raised to. |
ES Rebate Trans Type | This transaction is used to post the Early Settlement Rebate credit at the time of the early termination |
ES Rebate Tax Trans Type | This transaction is used to post the GST associated with the Early Settlement Rebate credit at the time of the early termination |
Dist ESR Charge Trans Type | This Transaction Type is used to post the Early Settlement Rebate Charge to the Distributor Account to recover this expense The transaction will have the opposite sign to the Early Settlement Rebate transaction posted to the Bailment Account |
Dist EST Charge Tax Trans Type | This Transaction Type is used to post the GST associated with the Early Settlement Rebate Charge to the Distributor Account to recover the charge |
Livestock Fee Future Transfer Trans Type | |
Livestock Fee Current Transfer Trans Type | |
Livestock Grazier Current Trans Type | |
Livestock Capitalised Interest Trans Type |
Cash Allocation
This process is run from the Bailment Dealer
That process allows the allocation of cash posted to the Bailment Dealer Suspense Account to individual Bailment Accounts
| Field | Explanation |
| Account Transaction Allocation Trans Type | This Transaction Type is used to post the amount of allocated cash onto the Bailment Account |
| Suspense Allocation Trans Type | This Transaction Type is used to post the amount of allocated cash from the Bailment Suspense Account |
Curtailment
Curtailment payments are posted to the future ledger of the Bailment Account reducing the dealer floor plan interest liability
When the Bailment Asset is sold the curtailment payments are transferred to the current ledger so they can be offset against the asset sale invoice
| Field | Explanation |
| Curtailment Cash Transfers from Future | This Transaction Type is used to post Curtailment payments out of the future ledger to the current ledger |
Curtailment Cash Transfers to Current | This Transaction Type is used to post Curtailment payments to the current ledger from the future ledger |
Direct Debit Trans Type | This Transaction Type is used to post Curtailment payments made by Direct Debit |
Curtailment GST Transaction Type | This Transaction Type is used to post Curtailment GST to the future ledger where the Curtailment Model is set to GST The effect is to allow the reduction of the principal balance net of GST |
GST Transfer Trans Type | This Transaction Type is used to transfer the GST from the future ledger to the current ledger when the asset is terminated and the Curtailment Model is set to GST Note: GL code will be the same as the Asset Processing | Asset Tax Transaction Type. |
Curtailment Term Reason | This will be the default reason used to terminate a curtailed account |
| Repayment Spread Percent | The default percentage to apply for the repayment schedule on a curtailed account Must be a number between 2 and 50 |
Bailment Fee Posting
| Field | Explanation |
| Flr Plan Fee Trans Type | This Transaction Type will be used to post the Floor Plan Fee payable by the Bailment Dealer to the future ledger of Bailment Account |
Post Asset Fee Trans Type | This Transaction Type will be used to post fees accrued against the Sold Asset Arrears balance to the Bailment Dealer Fee Account |
Flr Plan Fee Tax Trans Type | This Transaction Type should be entered only if GST on the Floor Plan Fee is to be charged Transaction Type will be used for Dealer Fees, Post Asset Sale Fees and Post Due in Full Fees |
Default Bailment Fee Tax Trans Type | This Transaction Type will be used to post GST on Default Fees calculated on the Arrears balance of a Bailment Account |
| Dist Flr Plan Fee Trans Type | This Transaction Type will be used to post the Floor Plan Fee payable by the Distributor to the future ledger of a Bailment Account |
Dist Flr Plan Fee Xfer Trans Type | This Transaction Type will be used to post the transfer transaction for the Distributor Floor Plan Fee out of the future ledger of the Bailment Account |
Dist Acct Fee Xfer Trans Type | This Transaction Type will be used to post the Fee payable by the Distributor to the Distributor Account This must be a Distributor System Transaction Type |
Dist Acct Fee Xfer Tax Trans Type | This Transaction Type will be used to post any GST charged on the Floor plan fee to the Distributor Account This must be a Distributor System Transaction Type Leave Blank if no Transaction Type was entered in “Flr Plan Fee Tax TransType” field |
Ad Hoc Fees Trans Type | This Transaction Type will be used to post any Ad Hoc Fees manually entered The transaction will post to the current ledger of the Fees Account on the applicable Bailment Dealer |
Ad Hoc Fees Tax Trans Type | This Transaction Type will be used to post the GST on any Ad Hoc Fees manually entered The transaction will post to the current ledger of the Fees Account on the applicable Bailment Dealer |
Distributor Extra Fee Trans Type | This Transaction Type will be used to post any Distributor Extra Fees calculated The transaction will post to the current ledger of the Fees Account on the applicable Distributor |
| Distributor Extra Fees Tax Trans Type | This Transaction Type will be used to post GST on any Distributor Extra Fees calculated The transaction will post to the current ledger of the Fees Account on the applicable Distributor |
The result of fee processing will be as follows:
- During the period where the Distributor is to pay the Bailment fees:
- The Bailment Fee will be charged to the Bailment Dealer Account future ledger using the Bailment Transaction Type DFPBF – Distributor Floor Plan Bailment Fee Charged. The Fee will then be transferred out of the Bailment Dealer Account future ledger using the Bailment Transaction Type DFPBFXER – Distributor Floor Plan Bailment Fee Transfer.
- The Bailment Fee will then be transferred to the Distributor Account future ledger using the Distributor Transaction Type DFPBFP – Distributor Floor Plan Bailment Fee Payable
- If the Floor Plan Fee Tax Transaction Type field is completed AND the Distributor is a non- related party; then GST on the fee charged will be calculated and charged to the Distributor’s future ledger, using the Bailment Transaction Type DFPGBFP – Distributor Floor Plan GST on Bailment Fee Payable
- During the period where the Bailment Dealer is to pay the Bailment Fee:
- The Fee will be charged to the Bailment Dealer Account future ledger using the Bailment Transaction Type FPBF – Floor Plan Bailment Fee Charged
- The Fee will then be transferred out of the Bailment Dealer Account future ledger using the Account Transaction Type ACCINTTRF – Account Interest Transfer
- The Fee will then be transferred to the Bailment Dealer Account current ledger using the Account Transaction Type ACCINTTRF – Account Interest Transfer
- If the Floor Plan Fee Tax Trans type field is completed, then GST on the Fee charged (FPBF) will be calculated and charged to the Bailment Dealer Account current ledger using the Account Transaction Type GST – GST on Bailment Fee.
Retail Contra
This process is run from the Processes | Bailment menu
That process allows the allocation of payout amounts due from a Retail Dealer to a Bailment Account where there is a match on asset identification details
| Field | Explanation |
| Bailment Dealer Contra Trans Type | This Transaction Type is used to post the amount of allocated dealer retail contra payout onto the Bailment Account |
Retail Dealer Contra Trans Type | This Transaction Type is used to post the amount of allocated dealer retail contra payout from the Retail Dealer Account |
Retail Contra Term Reason | [F2] to highlight and |
On completion of the Retail Contra process the following will have taken place:
- Each Bailment Account will have been terminated. The value date of the termination is the date the Retail Contra process is run. The termination reason will be the one set up on the Retail Contra section of the account type
- Transactions are posted to credit the future ledger balance and debit the current ledger for the same value (future ledger will have a zero balance)
- A tax transaction is posted to the current ledger representing GST on the future ledger balance
- Curtailment transactions posted against the Bailment Account are transferred to the current ledger
- A credit transaction is posted against the current ledger of the Bailment Account for the value of the Retail Contra Allocation. The value date of this transaction is the termination date. The transaction posted uses the Bailment Dealer Contra Transaction Type
- The Asset Sale Invoice is generated during the termination process. It may have an outstanding balance which is the difference between the Termination Amount and the Amount Allocated. This is shown as a separate line on the Asset Sale Invoice. If the Bailment Account was under Curtailment, the curtailment payment total is shown separately on the Asset Sale Invoice. If the amount allocated covered the entire termination amount then the outstanding balance of the invoice will be zero
- A transaction is posted against the current ledger of the Retail Dealer Account for the value of the Retail Contra Allocation. The reference of the transaction will be the Bailment Account Code that represents the allocation. The transaction amount is the opposite value of the transaction posted to the Bailment Account representing the amount allocated. The transaction amount will always be a debit (i.e positive value)
- The Transaction Type used to post the transaction is the Retail Dealer Contra Transaction Type specified on the Account Type
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