Rental NPV Early Termination Details
Purpose
This will be used for all leases that recognise their
income under the No Deferral Method (Rental Income), and that are to use the
NPV calculation to work out the value of future instalments.
Access
- Access Lease |
|
Dialog Details
Early Termination Input Selection
Field | Explanation |
Termination Reason | [F2] to highlight and 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: |
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 |
Maint Payable | This is a display field only The amount shown is the value of the Maintenance including taxes from the Any lease cost item that is set up with a Maintenance Type will be included in this amount |
Less Provision | If the Lease system is set up to calculate the provision for maintenance, that amount will display here (see screenshot above) It can be overtyped If the lease system is not calculating the provision, the provision amount can be entered |
Communication Type | [F2] to highlight and |
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 |
Asset Sale Input Section
Note that this section is completed for information purposes only. The Asset Sale Value can be printed on the termination communication, as can the Payout Amount. Transactions do not post to the account for the Asset Sale Value
Field | Explanation |
Initial Cost | This is a display field only The amount shown is the value of the Initial Cost from the |
Less Depreciation | This is a display field only If the Lease system is set to calculate the provision for Depreciation, that amount will display here (see screenshot above) |
Asset Sale Value | This will be calculated as the Initial Cost less Depreciation per the It can be overtyped Prior to overtyping, ensure the Lock Sale Price tick box is checked If an amount is entered, that must be inclusive of GST |
Lock Sale Price | This tick box must be checked if the Asset Sale Value is to be overtyped The entered value will then be retained as other dialog inputs are entered |
Add Taxes to Sales Price | The initial cost and depreciation amounts are exclusive of GST For these to have GST added, this tick box must be checked Note that if the Asset Sale Value has been overtyped, the Lock Sale Price must be checked This will disable the Add Taxes to Sale Price tick box, so the amount entered must be inclusive of GST |
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 |
NPV Discount | This is the discount on the unposted instalments based on the Discount Rate entered at the Early Termination Section |
NPV Amount | This is the discounted value of the future instalments It is the Future Balances less NPV Discount |
Arrears | This is the balance of the current ledger on the lease account |
Maint Refunded | This is the difference between the Maint Payable and Provision entered at the Early Termination Section, uplifted by the rate of GST from the GST record selected into the Company associated with the lease account being terminated |
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 |
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