Create and Manage Leasing Agreement Using EQM Without Funder

Outcome

An EQM quote is created and completed in status '80'. The EQM quote triggers these actions:

• If the equipment is placed in sales warehouse and must be delivered from the rental warehouse, a customer order (CO) is created to remove from stock on the sales warehouse and a positive transaction ID 90 with reference to CO is created to put in stock on the rental warehouse.
• A leasing agreement line is created with attributes, additional charges and curves according to the configuration done in the EQM quote.

The equipment is delivered to the customer using the leasing line.

Before you start

Verify these settings before you start:

• Set the system calendar in 'System Calendar. Open' (CRS900) to cover the leasing period as a minimum.
• Set up a financing record with financing type '3' in 'Quotation. Add Financing' (QUS116) to use as a financing option on the quote in EQM.
• To connect leasing charges automatically using attribute functionality on the leasing line, the contract item for the leasing charge must exist in 'Contract Item. Open' (SAS450). This charge ID must match an attribute value connected to the attribute model for this item number in 'Item. Open' (MMS001). Activate the charge ID to create a leasing charge through the 'Auto-create charge' setting in (SAS450).

  To create leasing charges in 'Quotation. Add Miscellaneous Costs' (QUS118), set the leasing method to 0-'Additional charge'. The leasing charges are then added to the quotation line manually by using related option 18='Add Miscellaneous' in 'Quotation. Open Lines' (QUS101), or automatically by activating 'Default record' on (QUS118/E). If 'Default record' is activated, the leasing charge is automatically added to the quotation line if a financing record type '3' or '4' is added.

• If financing record type '4' is used, set up cash flow component records in (QUS118). Cash flow components are created in (QUS118) by setting leasing method to 1-'IRR'. Cash flow component prices are handled through 'Cash Flow Price List. Open' (STS137), accessed via related option 17 in 'Rental Price List. Open' (STS017). The cash flow component amount can differ depending on the item, financing record, or maintenance agreement that is used for the leasing agreement. Therefore, you can create multiple records for the same cash flow component in (STS137), using different items, financing records, or maintenance agreements. The cash flow components are then added to the quotation line manually 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.
• To add the EQM quotation line to an existing rental agreement, activate 'Conn to rental' in (QUS020). (STS085) opens when 'Create order' is selected from the EQM header or EQM details, and you can specify an existing rental agreement.

Create leasing lines through EQM for sales warehouse

Follow these steps if the equipment is placed in, or is sourced to, the sales warehouse and is not to be funded by external funder:

1. Open EQM to create the quote according to the agreement with the customer.
2. In EQM, select the quote to be leased by your customer. Click 'Details' to display EQM Details.
3. Select the line to be leased. Use related option 16='Add Financing' and select a suitable financing option, not including funder in the setup in 'Quotation. Add Financing' (QUS116). It is important that the financing type is 3-'Leasing'. If needed, you can add new financing options using the plus icon.
4. From the EQM header or EQM details, click 'Create order' to trigger the creation of leasing lines and a CO for internal movement.

   The leasing line is created on a temporary rental agreement according to the settings in (QUS116).

   The CO for internal movement is created with zero sales price, if equipment needs to be moved. This depends on rental depot in 'Quotation Type. Open' (QUS020). If this is not the same as where equipment is placed (sales warehouse), a CO is created to move the equipment. The receipt at the rental warehouse is processed with transaction ID '90'.

   If equipment is configured on the quote, a work order (WO) is created that is connected to the CO to make the equipment ready according to the configuration.

   You can find the orders related to the quote using the Fulfillment tab in EQM.

5. If a work order exists, it is reported using standard procedures.

6. Report the customer order using standard procedures to move the equipment to the correct warehouse.

   If a serial number is set at quote creation but is no longer correct, you must edit the serial number when you report the CO. This action updates the connected leasing line.

7. If no fixed asset already exists, one is created automatically with status '5' when the CO for internal movement is reported. Run 'Internal Account Entry. Create' (CAS950) to activate the fixed asset.
8. Report delivery of the equipment to the customer through the rental agreement or leasing line, using standard procedures in 'Rental Logistics Toolbox. Open' (STS140) or Rental Counter.
9. During the lifetime of the leasing agreement, the customer is invoiced through the rental agreement using standard procedures in 'Rental Invoice Proposal. Create' (STS800) and 'Rental Invoice Proposal. Update' (STS810).

Create leasing through EQM for rental warehouse

Follow these steps if the equipment is placed in a rental warehouse and is not to be funded by an external funder:

1. Ensure that there are no active financial agreements in 'Financial Agreement. Open' (AGS100) or 'Financial Agreement. Open Lines' (AGS101) for this equipment.

   If there is an active financial agreement for this equipment and it is classified as a right-of-use asset, use the standard procedure to buy back equipment from a funder, since this equipment should now be owned by the rental company.

   See Managing Leasing Logistics.

2. Open EQM to create the quote according to the agreement with the customer.
3. In EQM, select the quote to be leased by the customer. Click 'Details' to display EQM Details.
4. Select the line to be leased. Use related option 16='Add Financing' and select a suitable financing option, not including funder in the set up in (QUS116). It is important that the financing type is 3-'Leasing'. If needed, you can add new financing options using the plus icon.
5. From the EQM header or EQM details, click 'Create order' to trigger the creation of leasing. The leasing line is created on a temporary rental agreement according to the settings in (QUS116).

   You can find the rental agreement related to the quote using the Fulfillment tab in EQM.

6. Report delivery to the customer through the rental agreement or leasing line using standard procedures in (STS140) or Rental Counter.
7. During the lifetime of the leasing agreement, the customer is invoiced through the rental agreement, using standard procedures in (STS800) and (STS810).