Accounts: Termination - Estimator
Used to calculate all lease terminations and repossessions. Will produce a statement for the customer and track payments made after the lease terminates.
Layout / How to
There are many ways in which a lease may terminate. Based on how the lease terminates, you will find that these screens will help you.
Lease Buyout. Calculates the buyout from outstanding payments owed, termination fees, licensing fees, amortization principal payoff (select from four different calculations), and sales tax.
Lease Turn-In. Calculates the termination from outstanding payments owed, excess odometer fees, reconditioning fees, and other charges.
Lease Repossession. Tracks collection fees and other charges for the repossession.
Values will automatically recalculate for you as they are changed.
The first thing you should do is click the Set Tax Data from Defaults button. This will copy in the tax default rate and taxable field information which are established in @@@@@@@ maintenance. Anything that are set from these default values may be overridden.
The second thing you should do is print a Data Collection Form. This is a one page report that may be placed on a clipboard and used to inspect the vehicle.
The Information for this Deal box conveys some of the base values for this lease. Nothing may be changed in this box.
The Charges box is the sum of values from the various other screens. Each item listed may be marked to be included in the estimate. (The Amount Owed will automatically be filled for you if the lease is still active.)
The Termination Estimate box is the final tally of the estimate. This will be covered in more detail later.
The Taxes box is used to provide a tax rate breakdown. Use the Import Tax Rates from Deal button to prefill the tax descriptions and rates.
This is used to calculate the excess odometer charges for lease turn-ins.
Starting Odometer. This is the odometer at lease inception.
Ending Odometer. This is the "not to exceed" odometer, based on the lease term. For example, a 3 year lease which allows 15000 per year would have this set to 45000 PLUS the starting odometer.
Prorated Ending Odometer. Based on how many terms have been billed, this is the current not-to-exceed odometer. Excess odometer will be based on this value.
Odometer at Termination. Enter the current odometer reading here.
x 0.0000 per. Enter the rate per mile/km in this field.
The resulting calculated fee will roll up to the Excess Odometer on the Overall tab.
This is used to calculate how much it will cost to recondition the vehicle. It is used for turn-ins and repossessions.
The Reference No. fields are 15 characters each may be used to reference a work order number.
The Deductible amount will subtract from the Subtotal.
The resulting total will roll up to the Reconditioning on the Overall tab.
Other Charges Tab
This is used to calculate miscellaneous other charges. It is used for all types of lease terminations.
The All Unbilled Payments amount is the sum of all of the unbilled, full payments that were remaining in the lease term.
The resulting total will roll up to the Other Charges on the Overall tab.
Collections Fees Tab
This is used to track all collection and repossession fees for the lease.
Use the New button to add a fee. The data for the entry is edited in the box on the right. Use that box's save button to save your edits.
This is an amortization schedule for the lease. The information from this screen is used for buyouts and repossessions.
The yellow, highlighted line represents the current billed-through location in the lease. All termination calculations are based on this line.
Besides the normal amortization Ending Balance field, there are additional calculations which may be used in your lease termination:
3 Months Interest. This simply takes the current interest field, multiplies it by three, and adds it to the current Ending Balance field. If there are less than three terms left in the lease, then the multiplier will be calculated as Term minus Current Term.
Sum of Digits. This calculation is: (Base Payment * Term + Lease End Value - Cap. Cost) / (Term * (Term + 1) / 2) * (Term - Current Term + 1) + Current Beginning Balance - Base Payment.
Modified Sum of Digits. This calculation is: (Base Payment * Term + Lease End Value - Cap. Cost - Base Payment) / (Term * (Term + 1) / 2) * (Term - Current Term + 1) + Current Beginning Balance.
Ending Balance + Unearned Profit. The unearned profit comes from the cash flow grid. This will include all monthly profit lines AFTER the month which is determined to be the last fully paid invoice. If the sum of all remaining profit is negative, then it is not used.
These values will roll up to the Amortization Principal Payoff Choice on the Overall tab.
Addition Payments Tab
This is used to accumulate payments after the lease has been terminated. Entries are added in the same manner as on the Collection Fees tab.
The Add to Payment Batch check box may be used to send payments over the ALMSys payments export interface. @@@@@@
Termination Estimate Box
This is the final tally box for the Termination Estimator. The values in this box are:
Amortization Principal Payoff Choice. These values are derived from the Amortization Tab and are used for buyouts and possibly repossessions.
Principal. The amount selected from the Amortization Principal Payoff Choice.
Amount Sold For. This is used for repossessions and possibly insurance loss claims, and is used to subtract from the final total.
Charges. This is derived from the Charges box.
Tax. The calculated sales tax from all of the marked taxable fields. Ths amount that this tax is based on is listed to the right of this field.
Total. This is the total amount for this estimate.
Payments. This is derived from the Additional Payments Tab.
Balance Owed. The current outstanding amount owed on this estimate.
The Customer Statement button may be used to produce an invoice that covers this estimate and the current balance owed. In addition, you may set the Active for Termination Statements to Yes, which will produce a statement whenever you run the Termination Estimator Statements procedure. @@@@@@@
Abort Button Usage
The abort button does not work for every field and check box on this screen. It will work for the Odometer, Reconditioning, and Other Charges tabs, but not the Overall tab.