This document explains how funding is made through an agreement with a financial institute. The scenario where an agreement is made directly between the financial institute and the customer is not included.
The payment terms form the basis for the periodic invoicing.
Input to periodic invoicing is set using the following information:
These M3 tables are affected:
An external financial institute is set up as a customer in 'Customer. Open' (CRS610).
Create leasing agreement
For more details, see the documents listed in the See also section.
Establish funding with Financial institute
From Leasing agreement, start 'Leasing Funding. Open' (LTS200) and enter the equipment for which funding is to be set up. In 'Leasing Funding. Open Details' (LTS201) enter the funder number, interest rate, and leasing period.
From Customer order, start 'Customer Order. Open Leasing Proposal' (LTS501) specify the information about which Financial institute to use (Funder no). Enter information about interest rate and leasing period (number of months).
Set up payment terms for customer
From Leasing agreement, select Related Options – Curves (Option 11) and Action Both curves to view both the funder curve and the customer curve.
From customer order, start 'Leasing Agreement. Enter Conditions' (LTS107) set up the interest rate and leasing period for the customer.
Invoice Financial institute
From Leasing agreement, enter manually the invoices in 'Customer Invoice. Enter' (ARS100).
From Customer order, click Update Leasing and an invoice is automatically created towards the Financial institute for the equipment.
Receive periodic invoices from Financial institute
When invoices are received from the Financial institute, these are handled in 'Supplier Invoice. Record' (APS100) and are treated the same way as other invoices.