Convert a Rental Line to a Leasing Line in (STS201)

This document describes how to convert a rental line to a leasing line in 'Rental Agreement. Open Lines' (STS201).

This is useful when the customer's first request is to rent an equipment, but then decides to lease it instead. You can convert it before delivery, but you can also do it after the equipment has been delivered and invoiced as a rental line.

Pricing in a leasing scenario differs from a regular rental scenario or from a regular sale of rental equipment. In this scenario, the pricing is based on a leasing curve.

Outcome

The rental line is converted to a leasing line with curves calculated using the conditions defined during line entry in 'Rental Line. Convert to Leasing' (STS106). If leasing charges are set up for auto-creation through attribute functionality, the leasing line also has these leasing charges connected as additional charges in 'Rental Agreement. Connect Additional Charge' (STS103).

Before you start

A rental line must exist in (STS201).

For leasing charges to be connected automatically using attribute functionality on the leasing line, the contract item for the leasing charge must exist in 'Contract Item. Open' (SAS450) and this charge ID must be the same as an attribute value connected to the attribute model for this item number in 'Item. Open' (MMS001). The charge ID must also be activated to create a leasing charge through the 'Auto-create charge' setting in (SAS450).

Follow these steps

  1. Open (STS201) for the rental agreement and select the rental line to be converted.
  2. Use related option 46='Calculate Leasing' to open (STS106) for the selected line.
  3. If leasing method 0-'Standard' is used, specify the correct number of periods, interest type, interest rate (defaulted from interest type), residual percentage and sales price in (STS106). Confirm with Enter.

    If leasing method 1-'IRR' is used, specify the correct number of periods (defaulted from the rental order type), IRR, residual percentage, and cost price in (STS106). Confirm with Enter.

    If leasing method 0-'Standard' or 2-'Standard, prev period' is used, the field for leasing method is displayed in (STS106) and you can change it. The curve is recalculated according to the new leasing method.

  4. Click 'Display' to view the calculated curves.

    You can also edit curves in (STS106). Press Enter to trigger the calculation of new curves.

    When completed, close (STS106) to return to (STS201).

  5. To view, add or update a leasing charge, use related option 15='Addnl charges' in (STS201) to open (STS103).
    Note: If the item number is set up for attribute handling and corresponding contract items exist for the connected attribute values, leasing charges have been automatically created in (STS103).

    If a leasing charge that has been added using attribute functionality should be deleted this must be done through the attribute. Use related option 52='Attribute Values' in (STS201) to open 'Attribute Value. Connect to' (ATS101) and remove the attribute value. This automatically removes the connected leasing charge.

  6. To view, add, or update a cash flow component, use related option 55='Cash Flow Component. Open' to open 'Cash Flow Component. Open' (STS136). To view the curve for each cash flow component, use related option 11='Cash Flow Curve. Open' in (STS136) to open 'Cash Flow Curve. Open' (STS138).
    Note: Cash flow components can only be used in combination with leasing method 1-'IRR'.
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