Amend Leasing Agreement

This document explains how you make amendments to an active leasing agreement.

Amendments are usually made to an agreement when the customer requirements change.

Outcome

You have changed an active agreement with respect to:

The amendments are used to adjust the agreement to meet new customer demands. These changes are valid for the remaining term of the agreement, or until the agreement is changed again.

When the leasing agreement is amended the following files may be updated:

Before you start

A leasing agreement must have been created and started in 'Leasing Agreement. Open' (LTS100).

Follow these steps

The five different activities in 'Amend Leasing Agreement' can be performed in any order.

  1. Change service information

  2. Change interest rate

  3. Amend leasing information

  4. Change customer site

  5. Change index.

Activity Description

  1. Change Service Information

    You can change the service information regarding:

    • Information about the customer
    • Scope, content and price of the service agreement
    • Validity period
    • Invoice dates.

    Changes are done in 'Leasing Agreement. Open' (LTS100)

  2. Change Interest Rate

    You can change the M3 interest rate to synchronize the system's internal interest rate with the actual market rate. The interest rate can either be variable or fixed. Changes in the variable interest rate will affect all valid agreements, while changes in fixed interest rates will only affect new agreements.

    You change the interest rate in 'Interest Rate. Open' (LTS402)

  3. Amend Leasing Information

    You can make changes to the leasing information when the agreement's:

    • Residual value is to be changed
    • Validity time is to be changed
    • Fixed interest rate is to be changed

    You can also make changes in any case where the leasing price is recalculated and a new leasing/funding version is created.

    You change the leasing information in 'Leasing Agreement. Enter Leasing Conditions' (LTS107), reached from (LTS100).

  4. Change Customer Site

    You can change customer site of a rental object in 'Leasing Agreement. Change Customer Site' (LTS300).

    For an individual, a new customer site is entered and this will automatically update both the service agreement and the leasing agreement.

  5. Change Index

    You can enter a new index value, effective from a specific date, when the official index value used has been changed. This may be due to, for example, price changes, increases in wages, etc. When the agreement price is changed by an index percentage, the total price of the agreement is changed.

    You change the price index in 'Price Index. Open' (LTS400).

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