Cash Flow Components

Cash flow components are used in the calculation of the leasing curve when 'Leasing method' is set to 1-'IRR' on the agreement order type. A cash flow component is for example insurance, administration, or damages.

You can manually add or update a cash flow component in 'Cash Flow Component. Open' (STS136) using related option 55='Cash Flow Component. Open' in 'Rental Agreement. Open Lines' (STS201). To view or update the curve for each cash flow component, use related option 11='Cash Flow Curve. Open' in (STS136) or click 'Open' on (STS136/E) to open 'Cash Flow Curve. Open' (STS138).

Cash flow components can also be automatically connected in (STS136) if the leasing agreement is created through EQM. This is done by setting up cash flow component records in 'Quotation. Add Miscellaneous Costs' (QUS118), which are then added to the quotation line in 'Quotation. Open Lines' (QUS101). The cash flow components are added either manually to the quotation line, by using related option 18='Add Miscellaneous' in (QUS101), or automatically by activating 'Default record' on (QUS118/E). If 'Default record' is activated, the cash flow component is automatically added to the quotation line if a financing record type '4' is added.
Note: 

If you add or remove a cash flow component from a leasing line, or if you upadte the cash flow amount for a cash flow component, this automatically recalculates all periods of the leasing curve and results in an updated Rent amount.

Before you start

  • Leasing method must be set to 1-'IRR' on the agreement order type in 'Rental Agreement Order Type. Open' (STS020).
  • To retrieve the cash flow component amount for each cash flow component record, you must set them up on a cash flow component price list in 'Cash Flow Price List. Open' (STS137).
  • To manually create, update, or delete a cash flow component, a leasing line must exist in (STS201).
  • If the cash flow component should be connected automatically to the leasing line in (STS201), the leasing agreement must be created through EQM.

Follow these steps

Follow these steps to automatically create a cash flow component through EQM:
  1. Create cash flow component records in (QUS118) by setting the 'Leasing method' field on (QUS118/E) to '1-IRR'.

    If the cash flow component should be automatically added to the quotation line in (QUS101) when a financing record type '4' is added, select the 'Default record' parameter on (QUS118/E). The financing record itself can also be automatically added to the quotation line in (QUS101) by selecting the 'Default record' parameter on 'Quotation. Add Financing' (QUS116/E).

    If the cash flow component is a one-time charge (common for administrative charges), you should select the 'One-time use' parameter on (QUS118/E). When you select 'One-time use', the cash flow component is only included in period 0 of the leasing curve.

  2. Create a quotation line with a financing record type '4' in (QUS101). If 'Default record' has been selected on (QUS118/E), the cash flow components are added automatically to the quotation line. Otherwise, they must be added manually using related option 18='Add Miscellaneous' in (QUS101).

    When this has been done, you can view or change cash flow components connected to the quotation line in 'Quotation. Open Miscellaneous Costs' (QUS108), using option 2='Change' on the cash flow component in (QUS101). Updates can also be made in (STS138), which is reached by clicking 'Open' on (QUS108/E).

  3. When the EQM quotation is released, a temporary rental agreement with a leasing line is created in (STS201). The cash flow components from the quotation line are automatically transferred to the leasing line, and you can viewe or change them in (STS136) by using related option 55='Cash Flow Component. Open' in (STS201). You can also delete or add more cash flow components in (STS136), but only before the first period of the leasing curve has been invoiced.
  4. To view the curve for each cash flow component, use related option 11='Cash Flow Curve. Open' in (STS136) or click 'Open' on (STS136/E). This opens (STS138). You can also update the periods of a cash flow component in (STS138).

Follow these steps to manually create, update, or remove a cash flow component:

  1. Open (STS201) for the rental agreement and select the leasing line where the cash flow component should be added or adjusted.
  2. Use related option 55='Cash Flow Component. Open' to open (STS136) for the selected line.
  3. To add a cash flow component, enter a line suffix in (STS136) and use option 1='Create' to create the cash flow component.

    Specify fields such as 'Cash flow cmpt' and 'Cash flow amt' and confirm on (STS136/E). This triggers a curve to be created in (STS138).

    If the cash flow component is a one-time charge (common for administrative charges), you must select the 'One-time use' parameter on (STS136/E). When you select 'One-time use', the cash flow component is only included in period 0 of the leasing curve.
    Note: You can add cash flow components only if invoicing has not yet started.
  4. To view the cash flow component curve, use related option 11='Cash Flow Curve. Open' in (STS136) or click 'Open' on (STS136/E). This opens (STS138).
  5. If an existing cash flow component should be updated, use option 2='Change' in (STS136). When you make changes to the cash flow amount for a cash flow component, the cash flow component curve in (STS138), the leasing curve in (STS108), and the Rent amount are recalculated.
    You can also update the periods of an existing cash flow component in (STS138). To do this, enter an amount in the Cash flow amt column for one or multiple periods and confirm on (STS138/B).
    Note: You can update cash flow components with the 'One-time use' parameter selected on (STS136/E) only if invoicing has not yet started.
  6. To remove a cash flow component, use option 4='Delete' in (STS136).
    Note: You can remove a cash flow component only if invoicing has not yet started.
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