1. Lease Servicing User Guide
  2. Collateral Management
  3. Collateral Tab

10.1 Collateral Tab

Using the Collateral screen, you can record a new collateral, view the valuation of collateral, and re-evaluate the existing collateral.

The collateral details can also be defined in the collateral screen of Application Entry screen.

Note:

If you are working on Usage or Rental based type of leased collaterals, then additional options are available in the Collateral Management screen to define the asset usage details and additional sub tabs such as Usage Summary and Usage/Rental Charge Matrix sub tabs are available. For detailed information on the same, refer to Customer Service screen’s Collateral tab section.

Collateral tab displays the usage / rental history of an asset which is linked to all accounts including the currently mapped account. This can be identified in Asset Relation tab, and usage of the asset can be viewed in Usage Summary tab.

The system assigns collateral statuses and the following are the statuses:
  • Undefined- When the collateral is created for the first time.
  • New- When an undefined collateral/ asset gets validated, its status is changed to New. This collateral can only be used for Substitution in Servicing.
  • Inactive- When an asset/collateral from Released, Sold or Inventory status is attached to application, it becomes Inactive.
  • Active- When the application gets funded, inactive collateral gets associated with the account in Servicing and gets activated. The status of the collateral then becomes Active.
  • Released- The Lease collateral can move to Released when the collateral is no more attached to any account.
  • Substituted- When collateral with the status active is replaced with different collateral, the active status is changed to SUBSTITUTED.

Calculate Parameters

The Calculate Parameters button is available in the Collateral Details header. Clicking on it calculates the Target parameters for the selected Collateral and populates the computed values in the custom user defined fields.

However, for system to populate data in custom fields, the following setup is required:
  • The custom user defined fields have to be enabled in Setup > Administration > User > Access > Field Access Definition tab.
  • User access to these custom fields are to be granted in Security User Access Definition Details sub tab.
  • If required, these fields can be customized in the Label Configuration tab in Setup > Administration > System > Label Configuration screen.
  • Further, the custom fields are to be configured to compute specific business calculations at Account level in Setup > Administration > System > User Defined Parameters screen.

For more information, refer to specific section in Setup guides.

To enter the Collateral Details
  1. On the application master screen, click Servicing > Servicing > Collateral Management > Collateral Details.

    Figure 10-1 Collateral Details


    Description of Figure 10-1 follows
    Description of "Figure 10-1 Collateral Details"

  2. In this section, you can perform any of the Basic Operations mentioned in Navigation chapter.
    A brief description of the fields is given below:

    Table 10-1 Collateral Details

    Field Do this
    Type and Description section
    Collateral Type Select the collateral type.
    Primary Select the check box if this property is the primary collateral.
    Asset ID View the asset identification number.
    Asset # View the asset number which is automatically generated.
    Asset Class Select the asset Class.
    Asset Type Select the asset type.
    Sub Type Select the asset sub type.
    Registration # Enter the vehicle registration number.
    Status View the vehicle status.
    Select Make and Model Select the Make and Model number of asset from the drop down list. You can use the search option to select the details.
    Year Specify the year of the vehicle.
    Estimated Life Specify the estimated life of the asset.
    Make Specify the make of the vehicle.
    Model Specify the model of the vehicle.
    Identification # Specify the vehicle identification number.
    Body Specify the body of the vehicle.
    Description Specify the description of the asset.
    Condition Select the condition of the asset from drop-down list.
    Lien Details
    Lien Status Select the type of Lien action.
    Lien Event Dt Select the lien event date from the calendar.
    Second Lien Holder Specify the name of second lien holder.
    Comments Specify additional details if any.
    Lien Release Entity
    Select the lien release entity from the drop-down list. The list displays the following values:
    • Customer
    • Producer
    • Others
    • Business

    Note: If Others is selected as the Lien Release Entity, ensure that the Entity Name and Address details are updated correctly since the same is not auto-validated with the data maintained in the system.

    Entity Name

    If you have selected the lien release entity as Customer or Producer, system automatically filters entity name list with corresponding customer accounts or producers. Similarly, if the lien release entity is selected as Business system displays the Business name if the asset is linked to Business account. Select the required entity name from the drop-down list.

    If you have selected the lien release entity as Others specify the entity name.

    Address section
    Country Select the country.
    County Select the county.
    Address # Specify the address number.
    Address Line 1 Specify the first address line.
    Address Line 2 Specify the second address line.
    Zip Select the zip code.
    Zip Extn Specify the zip extension.
    City Specify the city.
    State Select the state.

    Usage / Rental Details (Cycle)

    The below Usage / Rental sections are displayed only if the current Collateral is either of type VEHICLE or HOUSEHOLD GOODS AND OTHER COLLATERAL and the billing is based on Lease Usage or Rental type.

    For more information on how OFSLL handles Usage based leasing, refer to Appendix : Usage Based Leasing chapter and for Rental based leasing, refer to Rental Agreement section in Application Entry chapter.

    Usage / Rental Cycle Select the frequency of billing the asset from the drop-down list and click on Load Details button. If details are maintained for the selected billing frequency in Setup > Products > Asset Types > Usage/Rental Details screen, the same is auto populated and can be modified in this screen.
    Min Usage per cycle View/specify the minimum usage value of the allowed range.
    Max Usage per cycle View/specify the maximum usage value of the allowed range.
    Base Rental Amount View the calculated Base Rental Amount populated from Rental Agreement tab. This field is applicable for Rental/ Usage Rental agreement type.
    Security Deposit View the security deposit amount paid upfront for the term. This field is applicable for Rental/Usage Rental agreement type.
    Discount % View/specify the percentage of discount exempted from final billing.
    Discount Amount View the flat discount amount allowed upfront from the final billing. This field is applicable for Rental/Usage Rental agreement type.
    Usage Rollover/ Advance
    View/select the type of asset usage calculation as one of the following:
    • ROLLOVER (remaining usage balance is carried forward to next cycle)
    • NO-ROLLOVER (remaining usage balance is not carried forward)
    • ROLLOVER AND ADVANCE (remaining usage balance is carried forward to next cycle + total usage limit for current cycle can be utilized upfront)
    • ADVANCE (total usage limit for current cycle can be utilized upfront)

    Note: For Rental based lease agreement, only non rollover usage method is applicable.

    Reset Frequency View/specify the reset frequency of the billing cycle. This field is enabled only for ROLLOVER type of asset usage billing.
    Elastic Term Calc Method
    View the system predicted term remaining to reach the asset usage life which is calculated by one of the following methods as per current usage pattern.
    • ACTUAL - here the current details updated/received is treated as the final record for usage term calculation.
    • AVERAGE - here the average of usage details received in previous cycles are considered for usage term calculation.
    Excess Rent Collection Method
    If you have selected the Agreement Type as USAGE RENTAL, view the Charge Matrix selected as one of the following type to derive the Excess Rent Collection Method:
    • USING USAGE MATRIX
    • USING RENTAL MATRIX
    Usage / Rental Calculation
    Calc Method
    View/select the calculation method as one of the following from the drop-down list.
    • TIERED (billing is based on the defined Usage/Rental Charge Matrix). This is the default value for Rental/Usage Rental agreement type.
    • NON-TIERED (system automatically chooses the applicable slab based on the final usage value)
    Usage / Rental Receipt
    Usage / Rental Details
    View/select the Usage / Rental details as one of the following from the drop-down list.
    • INCREMENTAL (Details updated/received is considered as incremental record and is updated as new record in Servicing > Collateral > Usage History section without modifying existing record)
    • ACTUAL (Details updated/received is considered as latest record and is updated in Servicing > Collateral > Usage History section with Active/ current status as Y). This is the default value for Rental/Usage Rental agreement type.

    Usage Details (Life)

    The details maintained in this section is used to calculate EXCESS USAGE FEE in payoff quote and termination transactions.

    Start View/specify the start unit of asset usage.
    Base View/specify the base units.
    Extra View/specify the extra usage units.
    Total View/specify the total usage units.
    Vacation Ownership Details
    Billing Check this box to indicate if the asset is considered for billing.
    Due Amt Account Type
    Select one of the following account type from the drop-down list to indicate on which account this asset is to be considered for billing.
    • Current Account
    • Linked Account
    • Master Account

    Note: If Billing option is checked and the Due Amt Account Type is selected as Current/Linked/Master Account, then the billing batch job posts the transactions based on Asset Billing Rate setup in Current account / Linked Account of current Account / Master Account of current Account respectively.

    Trade Eligible

    This check box is selected by default and indicates that the asset is eligible for trade.

    If checked (Trade Eligible = Y) then Asset Status is marked as INACTIVE during Trade. If unchecked (Trade Eligible = N) Asset status is marked as ACTIVE.
    Consolidate Points at Master Check this box to indicate that point can be consolidated at master account level. For more information, refer to Actual Points and Billing Points Consolidation section.
    Points Consolidation Type Select the type of points consolidation option from drop-down list. This field is used to identify the assets at Associated accounts to consolidate the points.
    Exchange Indicator

    Check this box to indicate if this asset is created as exchange to an old asset.

    This is applicable only for Vehicle and Home collateral.
    Shipment Date

    Select the asset shipment date from the adjoining calendar.

    This is applicable only for Vehicle and Home collateral.
    Block Indicator

    Check this box to indicate if this asset is blocked to a particular account.

    In case of assets like mobile handsets, the IMEI Block/ Unblock functionality is used to block asset so that during cancellations, customer does not use the asset through any other service provider.

    This is applicable only for Vehicle and Home collateral.
    Custom Fields - This section displays the custom User Defined Fields if enabled in Setup and if configured, populates specific business computation values.
  3. Perform any of the Basic Actions mentioned in Navigation chapter.
  4. Click Submit.

Actual Points and Billing Points Consolidation

Consolidate Actual Points at Master

Actual Points consolidation at Master account level may or may not include the points at associated account(s) and is controlled based on the status of Consolidate Points at Master check box.
  • If Consolidate Points at Master option is checked, system consolidates the asset level points at Master Account of the associated account provided the following conditions are satisfied:
    • The same Points Consolidation Type is selected for associated account.
    • The status of asset is ACTIVE.
    • The status of account is available and enabled in ACC_STATUS_POINT_CONS_CD lookup type.
    • The asset expiry date is greater than GL date (asset is not expired).
  • If Consolidate Points at Master option is not selected at Master Account > Asset Level, then system considers only the asset level points at Master Account and does not consolidate the asset level points of its associated account(s). Only the standalone points of Master Account is considered. Even if the Consolidate Points at Master option is selected at later point at Master Account > Asset Level, the points consolidation of associated account(s) will not be triggered until an update happens on Associated Accounts > Asset which is eligible for Consolidation.
Points consolidation is done in following scenarios:
  • When new account is added under a Master Account by UI, Funding process, API, Account Onboarding, Multi Account onboarding, and/or Master Account Maintenance Transaction.
  • Account Status Change
  • During Current Account Level Asset Maintenance updates.
    • Collateral POST/PUT/GET Web Services
    • Collateral Create/Update File uploads
    • Collateral Maintenance from UI
    • Add New Asset Transaction
    • Substitution of asset Transaction
To Consolidate Points at Master, following validations and update options are provided:
  • Lookup code Account Statuses for Points Consolidation determines which Accounts with which status are to be considered for point's consolidation.
  • Batch job which updates the consolidated points at Master Account level only if the Expiration Date of Asset of Actual Asset at associated account is less than the GL date. This batch job is scheduled to run before the billing batch job to update the actual points that needs to be considered for Billing.
  • Points are maintained at actual asset level and any changes done at Master account level asset points does not flow down to the Actual Asset.
  • In case of an update at Master Account level Asset Point's and subsequently any change in actual asset at current account, system recalculates the points and overrides the points at master account.

Billing Points Consolidation

OFSLL uses Billing Points for Asset Billing calculations to derive the transaction amount using different asset billing rates. For more information, refer to Setup > Asset Billing Rate screen.

Billing points consolidation at Master Account level is decided based on status of Consolidate Points at Master option selected at Master Account level.
  • If Consolidate Points at Master = N, consolidation is not done and Billing points for Master account is derived based on Asset Usage Type (i.e. either FULL or HALF).
  • If Consolidate Points at Master = Y, Billing points consolidation is done at Master Account considering the Associated Account level billing Points (which are derived considering Asset Usage Type i.e. either FULL or HALF).

    Note:

    If the Consolidate Points at Master option is changed from N to Y at later point, then points consolidation of Master account is not done. However, consolidation is still done if there is a change in associated account(s).

The consolidated billing points are populated in Vacation Ownership sub tab available in Customer Service screen > Collateral tab > Home sub tab.

Following examples illustrates on how Actual and billing points are consolidated.

Scenario 1: Consolidate Points at Master = N

Here, consolidation is not done and billing points are considered based on Asset Usage Type. Also, even if Consolidate Points to Master = Y for associated account(s), the same is not considered.

Table 10-2 Scenario 1

Account Type Points on Funding Actual Points Asset Usage Type Billing Points
Master M1 50 50 Half (total Points/2) 25
Associated A1 100 100 Full 100
Associated A2 100 100 Full 100

Scenario 2: Consolidate Points at Master = Y

Here, billing points consolidation is done but Asset Usage Type of Master account is not considered.

Table 10-3 Scenario 2

Account Type Points on Funding Actual Points Asset Usage Type Billing Points
Master M1 50

200

(50 points of M1 is overwritten)

Full

(Not considered)

 100
Associated A1 100 100 Half (total Points/2) 50
Associated A2 100 100 Half (total Points/2) 50
Note that, billing points are consolidated only if the following conditions are satisfied:
  • Master Account level Consolidate Points at Master = Y and the same Points Consolidation Type is selected for both master and associated account(s).
  • The status of associated account(s) is available and enabled in ACC_STATUS_POINT_CONS_CD lookup type.
  • Status of assets under the selected accounts must Active (not expired) and Expiry Date of Asset is greater than GL date.

This section consists of the following topics:

Parent topic: Collateral Management