Lease End Asset Management
Purpose
To dispose of Assets associated with an operating lease at the conclusion of the lease
Access
- Lease | Access Lease Accounts |
Lease Account |
|
Process
Once a Lease Account has been Early Terminated or has come to a natural conclusion the asset(s) associated with the account must be dealt with.
Returning Assets to Stock
An asset can only be returned to stock if all instalments have posted. This will happen if the lease has come to the end of its natural life, or if it has been early terminated.
The asset status is At Client
This will change the asset status to Returned and update the Return Date with today’s date. The date can be changed if required. Status Notes can be entered if required.
Once an asset has a status of Returned to Stock, it can be either sold or linked to another Lease Account.
Selling Assets
This is done through the 
function.
This process will create the necessary General Ledger Journals for the sale of the asset and work out loss on sale or depreciation recovered. It will create a receivable invoice to the purchasing debtor which can be printed from the receivable system.
The asset must have been return to stock before a sale can be made. If this has not happened the following message will display:
Otherwise the following dialog will display:
Field | Explanation |
Sale Date | Enter a sale date within the current lease system month If a date is entered outside this range the following message will display: |
Receivable Account | [F2] to highlight and |
Reference | This will default to the lease account code It can be changed it required |
Sale Price (including tax) | Enter the sale value of the asset inclusive of GST |
Tax Code | [F2] to highlight and |
After sale the Asset Status will have changed to sold:
After sale the sale details will be completed on the asset details:
The Sale invoice number is the number automatically created from the Receivables System
Based on the GST exclusive sale price, initial cost and depreciation charged, the system will enter the correct values for:
- Loss on Sale
- Profit on Sale
- Depreciation Recovered
Go to Receivable | Print Invoices
Check the tick box Invoices not printed and 
.
The invoice is a Crystal Report that can be personalised to each specific client’s layout.
Contact Argos if you wish a specific layout to be developed.
Linking Assets to a New Lease
Rather than selling an asset, it may be linked to another Lease Account. In this process the same asset is being re-leased, and a track is kept of its previous maintenance and depreciation.
The asset must first have been returned to stock.
The linking process will take place on the new lease account, or an existing lease account this asset is to be associated with.
Once the new Lease Account has been created, access the 
browse and 
The following dialog will display:
The Lease Asset Browse will display a list of all assets that have a status of ‘Returned to Stock’
Enter the Collateral Code of the asset to be linked and 
If the asset is the correct one - 
otherwise 
and 
a new asset
The following message will display:
This is because the Finance details of the new lease have not yet been completed
The Linking Asset cost excluding tax is the initial cost less depreciation from the linked asset
The Finance details could have been completed prior to linking the asset. This test would still have been performed to check that the asset financed price less GST was the same as the asset value from the previous lease. This is only a warning message. It is possible to lease the linked asset for other than its disposal value from the previous lease.
Certain information is carried through from the asset being linked.
| Field | Explanation |
| Description | This is the asset description from the |
| Tax Depn Method | This has been brought through from the linked asset |
| Tax Depn Rate/Life | This has been brought through from the linked asset |
| Purchase Date | This has been brought through from the linked asset |
Prior Asset Number | The internal number of the asset linked from |
Status Notes | This details the internal number of the linked asset, internal number of the Lease Account associated with the linked asset, and the date the linkage took place. |
Prior Depn | Depreciation on the asset prior to it being linked |
Prior Act Maint | Actual Maintenance on the asset prior to it being linked |
Prior Mtce Prov | Expired maintenance provision on the asset prior to it being linked |
Initial Cost | This has been brought through from the linked asset |
Once an asset has been linked the 
record must be accessed to check the details – in particular the Type. If this is blank it must be completed. Also, if any identifying details have changed, this should be updated. An example may be use of a personalised plate by the new lessee.
Certain details will have been updated on the asset linked from
These are described below:
| Field | Explanation |
| Asset Status | This has been changed to On Leased |
| Status Notes | This details the internal number of the new asset, internal number of the lease account associated with the new asset, and the date the linkage took place |
| Sold / Re-Leased Details | The date the linkage took place |
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