Rental P&I Standard Early Termination Details

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 Actuarial method, regardless of the Interest Rebate indicator setting on the account type.

The rebate default percentage can be applied to terminations using this method.

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:


Unearned Interest Pcnt
The percentage displayed will default to the percent set up on the Account Type associated with this lease account

The displayed percentage can be overtyped
Interest Rebate
The amount of Interest Rebated will display here

It will be the unearned interest on this account multiplied by the Unearned Interest Percent

This value can be overtyped
Add Taxes
Check this tick box if Taxes are to be added to the future instalment values that will post to the current ledger on termination

This is the most usual option to take and should be 
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

FieldExplanation
Write Off ReasonOnce 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 OffIf 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 OffIf 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
Amount
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
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

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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