P&I NPV Early Termination Details

Purpose

This will be used for all leases that recognise their income under the Actuarial Method (Principal and Interest split), and that are to use the NPV calculation to work out the value of future instalments.

Access

1. Access Lease |  | 

Dialog Details

Early Termination Input Selection

Field	Explanation
Termination Reason	[F2] to highlight and  a reason for the Early Termination This field is mandatory and must have a reason selected even if it is "NU: No Reason"  In the Termination Reason Details there is a field called "Write Off Indicator" and this required a tick if the account is to show in the Write Off reports in the Accounts System
Termination Date	Enter the date the account is to be early terminated or the date the early termination quote is to be produced for The Termination Date cannot be earlier than the last transaction date If an earlier date is entered, the termination date will be changed to be the last transaction date and the following message will display:
Use NPV Calculation	The default calculation is the PV calculation Check on to change this to the NPV calculation
Discount Rate	Enter the value of the Discount Rate that is to be applied to the NPV calculation The NPV calculation will be applied to all unposted transactions
Residual Value (Incl GST)	The system will pre-fill this field with the value held against the Residual Value item from the  dialog That value will be uplifted by the GST rate held on the Company record associated with the account being terminated If there is no Residual Value on the  dialog, or the Residual Value is different, enter the amount of the Residual Value of the asset to be added to the termination amount The amount entered must be inclusive of GST
Lock RV	This tick box must be checked if the Residual Value field amount has been overtyped or entered If this is not checked an and alteration is made to the dialog, the amount will revert to the value that was in this field when the dialog was first accessed
Communication Type	[F2] to highlight and  a Communication Type to be created so the details of the early termination can be recorded, and printed for the client if necessary
Mark Comm as Printed	Check this on if the early termination quote communication, entered in the communication type field, does not need to be printed This will make the communication as printed so it will not come up in the list of communications to be printed at the end of the day

Write off Input Selection

Field	Explanation
Write Off Reason	Once the Early Termination has been completed the reason will display in this field
Write Off Date	Once the Early Termination process begins the termination date will display in this field
Write Off	If any part of the termination amount is to be written off, enter that value here This field cannot be accessed if the Write Off Transaction Type has not been selected into the lease account type associated with the lease account being terminated
Default Interest Write Off	If an amount is entered here, it will decrease the termination amount Two transactions will post on termination Once will be the charge of Default Interest and the second will be the write off The net different will be zero if the write off amount if the same as the default interest amount This field cannot be accessed if the Write Off Transaction Type has not been selected into the lease account type associated with the lease account being terminated

Calculation Selection - all fields are display only

Field	Explanation
Date Early Terminated	This will default to the Early Termination Date entered at the input selection
Future Balance	This is the future balance of the lease account It will change to include GST if the Add Taxes flag from the input selection has been checked
Discount	This is the discount on the unposted instalments based on the Discount Rate entered at the Early Termination section
Amount Net of Discount	This is the discounted value of the future instalments It is the Future Balance less Discount
Arrears	This is the balance of the current ledger on the lease account
Default Interest Accrued	This is the accrued Default Interest on the current balance to termination date It will change if the termination date if changed
Termination Amount	This is the amount the client will pay on termination of the lease account It is the amount plus Arrears plus Default Interest The Termination Amount will change if either a Write Off or Default Interest Write Off amount is entered as the Write Off Input Selection If either amount is entered as a positive, the Termination Amount will decrease If either amount is entered as a negative, the Termination Amount will increase
Residual Value	The amount displayed or entered in the Residual Value (Incl GST) field at the Early Termination Section
Payout Amount	Termination Amount plus Residual Value This is the amount the client is expected to pay to take ownership of the lease on termination

Details Specific Function Buttons

[Button]	Explanation
	Select this button to create a communication record that is to be dispatched or printed later
	Select this button to create a communication record that will be sent to the default printer immediately

• Related Articles

• P&I NPV (FI) Early Termination Details

  Purpose This will be used for all leases that recognise their income under the Actuarial Method (Principal and Interest split), and that are to use the NPV calculation to work out the value of all future instalments, except the final instalment. The ...

• Rental P&I Standard Early Termination Details

  Purpose This will be used for all leases that recognise their income under the No Deferral interest method but require an interest rebate to be passed onto the client that is not an NPV calculation. The interest rebate is calculated using the ...

• P&I Standard Early Termination Details

  Purpose This will be used for all leases that recognise their income under the Actuarial Method (Principal and Interest split), and that are not to use the NPV calculation. The rebate default percentage can be applied to terminations using this ...

• Lease Asset Details

  Purpose Allows the setup of a Lease Asset and the rules that will determine how the asset may be processed A Lease Account may have multiple Lease Assets Access •Lease Details dialog | | or Dialog Details Details Specific Fields Field Explanation ...

• Lease Asset Maturities

  Purpose Describes process available when a Lease matures naturally or early. Also describes automated transaction processing if a loan naturally matures. Natural Maturity Process Advising of maturing leases is a business process that should be ...