Create Funding Record

This document explains how you create a funding record for the financing administration of a rental object. Funding for a purchased or manufactured rental object is arranged at delivery to a customer.

Outcome

You have created a funding arrangement, which states how the rental object is financed.

The funding record allows you to:

A funding record is created with:

The funding record is used to keep track of the financial cost for each specific rental object.

The following files are updated when a funding record is created:

Before you start

An activated leasing agreement line must exist in 'Leasing Agreement. Open line' (LTS101).

Follow These Steps

Create new record (B panel)

The funding record is created when the rental object has been delivered to the customer. The funding record functions as a header. It consists of the rental object's individual item number and description.

  1. Start 'Leasing Funding. Open' (LTS200)

  2. In the 'Individual item number' field, select a rental object and create a new record.

  3. Press Enter to proceed to the funding details.

Enter funding details (LTS201)

In funding details you enter the price of the rental object, funder's interest rate, the length of the funding agreement and the residual value the rental object will have at the end of the period. The monthly cost is calculated. Any additional equipment that comes with the rental object can be included in the funding details.

  1. Press F13 to proceed to the P panel where you specify:

    • The date format to be used
    • The panel sequence.

      The valid panels are:

      E = Detailed funding panel

      F = Detail panel for interest rate

      G = Detailed panel for user-defined fields

      Panel sequence should be set to EFG.

  2. In the 'Text' field, fill in a text that describes the funding record.

  3. Use option 11 to add the funding record in (LTS200).

  4. Enter funding details.

  5. Examine and change the information in the 'Month per period', 'Invoicing method' and 'Currency' fields.

  6. Enter the length and the start date of the funding agreement in the 'Number of periods' and 'Valid from' fields.

  7. Enter the financed amount in the 'Funding price' field.

    This is the same as the sales price.

  8. Enter the estimated value of the rental object after the funding agreement is finished, as either:

    • An amount in the 'Residual value' field, or
    • A percentage of original sales price in the 'Residual percentage' field.
  9. In the 'Interest type' field, indicate whether the interest rate is to be flexible or fixed.

  10. Press Enter to update the funding calculation.

  11. Examine and change, if necessary, the percentage and amount in the 'Interest rate' and 'Rental amount' fields.

    The values in these two fields interact, and a change in one of the fields affects the other.

    The interest rate is an internal interest rate, and is proposed from the interest type.

    The rental amount is calculated from the sales price, the residual value, the interest rate and the number of periods.

  12. In the 'Funder number' field, select the financer of the rental object.

  13. Fill in the invoice number and the agreement number for the funder, in the 'Invoice number' and 'Funder agreement number' fields.

  14. Press Enter to save the rental rate calculation and proceed to the F panel.

Enter minimum and threshold values for interest (F panel)

  1. In the 'Minimum variable interest rate' field, fill in the minimum percentage that the customer has to pay, regardless of the current flexible interest rate.

  2. In the 'Threshold value' field, fill in the minimum percentage change of the interest rate before the rental rate is to be recalculated.

  3. Press Enter to save the settings of the variable interest.

Enter information in the user-defined fields (G panel)

  1. Fill in additional information for the funding record in the 10 alphanumeric fields and the 10 numeric fields.

    The lead texts of the fields are entered in 'Settings - Leasing Agreements' (LTS699).

  2. Press Enter to save the settings and return to the E panel.

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