Create Leasing Agreement

This document explains how you create a leasing agreement. In this process, you create the agreement and add the leasing terms in the agreement lines.

Outcome

A leasing agreement is created, consisting of:

Uses

The leasing equipment is delivered to the customer and the agreement goes into effect.

How the System Is Affected

The following M3 tables are affected:

Before you start

An order type configured for leasing agreements must exist in 'Leasing Agreement Order Type. Open' (LTS020).

Follow These Steps

  1. Create leasing agreement

    Enter customer information and general agreement details in 'Leasing Agreement. Open' (LTS100).

  2. Enter leasing agreement lines

    In 'Leasing Agreement. Open Lines' (LTS101), you:

    • Specify the warehouse where the equipment is located. This is the warehouse where the equipment will be checked out and eventually checked in.
    • Enter the line type for the agreement.
    • Enter the equipment item and serial numbers.
    • Connect the leasing agreement to a work order to perform an inspection when the equipment is eventually returned.
    • Connect the leasing agreement to the maintenance agreement.
    • Enter the invoice interval.

    When you are finished entering information in (LTS101), select option 11='Pre Calculation' to proceed to 'Leasing Agreement. Calculate prices' (LTS105).

  3. Calculate lease price

    From (LTS105), enter the Kit number and press F14 to update the calculation. Select option 11='Leasing' to proceed to 'Leasing Agreement. Enter Leasing Conditions' (LTS107).

  4. Enter lease conditions (information from Funding)

    Enter the customer price, residual value, and interest type in (LTS107). Select option 11='Curves' to proceed to 'Leasing Agreement. Display Curve' (LTS108)

  5. Generate leasing curve

    Enter any additional costs in (LTS108), then generate the leasing curve to display the combined cost for each month. This is the customer price for the leasing object.