6.3.2 Lease Usage Rental Calculation
Whenever customer sends asset + usage details to OFSLL, the details are categorized to applicable rate slabs. Depending on the Charge Matrix, the rental + usage fee (if applicable) is calculated and charged on to the account. The same is communicated to the customer through account statement.
Following is an illustration on how system calculates non-tiered Rental bill.
Table 6-1 Rental matrix
| Cycle | Base Rental | Discount % per Cycle | Discount Amount per Cycle | |
|---|---|---|---|---|
| Cycle From | Charge per cycle | |||
| Weekly | 1 | 50 | 1 | 10 |
| Weekly | 5 | 10 | 2 | 12 |
| Monthly | 1 | 200 | 4 | 15 |
| Monthly | 5 | 150 | 5 | 18 |
If only Cycle From is defined and Cycle To is not specified, then range is considered up to an infinite value or till the next defined cycle. Here the range for weekly cycle is between 1-5.
For Rental Amount, system will calculate the both Discount Amount and Discount % and deduct the minimum of these two values from the rental amount per cycle.
Table 6-2 Calculation
| Account Cycle | Account Term | Calculation | |
|---|---|---|---|
| Rental Amount per Cycle | After Discount | ||
| Monthly | 3 | 200 | 200 minus (Minimum of (4% of 200 = 8) or 15) = 192 |
| Monthly | 5 | 150 | 150 minus (Minimum of (5% of 150 = 10) or 18) = 194 |
| Weekly | 2 | 50 | 50 minus (Minimum of (1% of 50 = 0.5) or 10) = 49.5 |
- After calculating the lease rental fee, if there are any rental adjustments or charge which needs to be posted to the account balances (Contract setup > Balances sub tab), you can post the lease monetary transactions as detailed in Lease Rental/Damage Fee Adjustments section in Servicing User Guide.
- You can simulate Lease Rental / Usage Rental calculation using Scenario Analysis screen before posting it into the system. There is also a Rental Calculator provided to derive the usage/rental amount.
- The calculated chargeable rental and usage fee are displayed in Customer Service > Collateral > Usage Summary screen and is posted on the account only after executing the batch job TXNUSG_BJ_100_01 (USAGE CHARGE PROCESSING) in SET-TPE job set.
- After billing is processed, if there is an amount still owed on lease account, you can post payoff quote during the life of a Rental/Usage Rental Lease based on specific conditions. For more information, refer to Payoff Quotes monetary transaction section in Servicing User Guide.
Parent topic: Rental Agreement