Financing Records

This section describes how to configure the basic data for the following financing types:

  • Leasing (Financing type '0 -Leasing' )

    When a quotation is released, the financing option will display a record under Fulfillment tab in EQM mashup. The record will be connected to a Leasing agreement. To get the leasing agreement created correctly, you must ensure that the equipment exists in 'Open Service Supplement' (SOS001).

  • Rental Purchase Options (RPO) (Finacing type '1 - RPO')

    A rental rate is calculated based on sales price, rental charges, interest rate and the estimated residual value at the end of the rental period. When a quotation is released, 'Rental Agreement. Create' (STS085) opens up. Pressing next in STS085 creates both a rental agreement and an internal customer order.

  • Rental (Finacing type '2 - Rental')

    The rental rate is fetched via standard rental price calculation. When a quotation is released, 'Rental Agreement. Create' (STS085) opens up. Pressing next in STS085 creates both a rental agreement and an internal customer order.

  • If the equipment is already a rental equipment no internal customer order will be created. A rental equipment is defined by the field equipment group which needs to have equipment group category '01 - Rental' in MMS240.

Note:  Only one financing record can be linked to a quotation.

Configuring the basic data for financing records in EQM

  1. Enter the financing code and optionally the product number and select New. Financing records without a product number can be used generically.
  2. Enter Description. Entering the Name is optional; if left blank it will be copied from the Description field.
  3. Set the status of the record to

    • 20 to allow the sales executives to use this record when creating the quotation.

    • 10 if the record is still being prepared.

    • 90 to indicate if the record has expired or is no longer required.

    The responsible field indicates who is responsible for maintaining this record. This field is for information purposes only.

  4. Enter a valid date range to identify when the financing will be used. These dates will be checked against the quotation from and to dates when the financing record is linked to a quotation.
  5. For financing type '0 - Leasing', you can assign an ID number to the financing record that can be used as a reference for external leasing or financing company.
  6. For financing type '0 - Leasing', enter the funder to identify which company will be responsible for the financing.

    The funder must be a valid customer record in 'Customer. Open' (CRS610).

  7. For financing type '1 - RPO' and '2 - Rental', enter the internal customer who is the owner of the equipment during the rental period.

    The internal customer must be a valid customer record in 'Customer. Open' (CRS610).

  8. For creating a Leasing or a Rental Agreement, you must enter an agreement order type; these are defined either in 'LTR Agreement Order Type. Open' (LTS020) or 'STR Agreement Order Type. Open' (STS020).
  9. For financing type is '0 - Leasing', enter the kit number. Kits are defined in 'LTR Agreement Kit. Open' (LTS450).
  10. Specify the number of periods which is the number of months the leasing or rental agreement will last.
  11. You can optionally define the residual value of the equipment as a percentage. This is the expected percentage at the end of the financing period, that is after the number of periods defined above.
  12. The interest type is defined in 'LTR Interest Rate Type. Open' (LTS402) and identifies the interest percentage. This is used as default to be able to create leasing or rental agreement. The field is not visible for financing type '2 - Rental'.
  13. You can modify the interest rate here, if needed. Interest rate is retrieved from the interest type and is used to be able to create leasing or rental agreement. Item group, product group, industrial application, environment, customer and customer group can be entered against the record and are used as search criteria when looking for financing by, for example, the type of equipment.
  14. Select the field 'Default record' if the financing record automatically should be added to the quotation upon creation.
  15. Click Next to save the record.