Early Termination and Write Off Simultaneously

Purpose

A write off can be performed at the same time as the Early Termination by completing the Write Off section of the Early Termination dialog.

The write off functionality is exactly the same for all termination methods.

The process is described here for the Rental Standard Early Termination Method only.

On accessing the Early Termination dialog, the details will be similar to:

Assume both default interest and the account balance are to be written off

Complete the Default Interest Write Off field first with the amount of Default Interest Accrued:

[Tab] out of this field

The Termination Amount has decreased by the default interest write off

Enter the Termination Amount in the Write Off field - [Tab]

The Termination Amount will be zero

[F2] to highlight and the appropriate Communication Type if required

Check Mark Comm. As Printed if the communication is to be created but not printed

to post the transactions

to Early Terminate the Lease, or

to make any changes

The

action list will look like:

Each Early Termination Transaction will have a Reference of EARLY

Each write off transaction will have a Reference of WRITEOFF

The credit instalment value is less than the debit instalment value as GST has been added

There was default interest on the arrears balance that has been charged at the same time

Separate entries are posted for the write off of default interest (a credit of the default interest charged) and the account balance write off

It is possible to “Write UP” a termination amount by entering a negative Write Off value. This will have the effect of increasing the Termination Amount. Default Interest can also be entered as a negative value.
It is not necessary to write off the full account balance. A partial write off can be undertaken by entering an amount that is less that the Termination Amount.
When the early termination communication is created, it can include write off values – there are specific communication replacement fields for these amounts. Refer to the Communication Embed Fields document for further information.
If the Add Taxes check box has been ticked, then when the write off transaction generated is posted to the General Ledger, the GST content of the write off transaction will post to the GL Code for GST.

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