Evergreen Lease Maintenance

A.2.48 Evergreen Lease Maintenance

When a lease account is eligible to be renewed to ever green lease, system can automatically put the account to Evergreen mode on maturity date + grace days on running the schedule batch job TXNEGC_BJ_121_01 (POST MATURITY EVER GREEN TRANSACTION PROCESSING). However for this to happen, you need to define a set of parameters which helps system to decide on the account eligibility before posting the transaction.

The Evergreen Lease Maintenance transaction helps to maintain evergreen lease parameters at individual account level. You can either define new parameters or update the pre-defined contract level parameters on ACTIVE accounts by posting EVER GREEN MAINTENANCE non-monetary transaction in Customer Service > Maintenance >Transaction Batch Information section.

Note that, a lease account can be manually converted to Evergreen lease by posting Evergreen Lease Transaction monetary transaction and Evergreen Lease in OFSLL is supported only for INTEREST RATE type of lease calculation method.

Table A-149 To post Evergreen Maintenance

Transaction	Parameters
EVER GREEN MAINTENANCE	TXN DATE Select the transaction date from adjoining calendar.
EVERGREEN AUTO POST ON MATURITY IND Select either YES or NO from the drop-down list to allow system to auto post evergreen lease transaction on maturity date + evergreen grace days. Note: On selecting this check box, the Auto Include Residual Value option is disabled.
EVERGREEN NO OF UNPAID BILLS Specify a value. Auto renewal of contract to evergreen lease is allowed only when actual number of unpaid bills is greater than the specified value.
EVERGREEN UNPAID BILLS PERCENTAGE Specify the percentage (0 - 100) of total unpaid bills remaining for system to consider for auto renewal of contract to evergreen lease. System uses the greater of these two values i.e. Number of Unpaid Bills and Unpaid Bills %
EVERGREEN PAYMENT AMOUNT METHOD Select one of the following payment amount method from drop-down list which is to be accounted for billing on auto renewal of contract to evergreen lease. This is the rental amount for asset usage. % on Maturity Bill - Percentage of lease payment amount as on maturity Fixed Amount - Fixed lease amount
EVERGREEN VALUE Specify the value to derive the asset usage billing amount based on any of the above Payment Amount Method.
EVERGREEN GRACE DAYS Specify the total number of grace days allowed after maturity for system to consider for auto renewal of contract to evergreen lease
EVERGREEN EXTENSION TERM Specify the new extension term which is the agreed term between customer and financial institution. This term is mapped to extension term of EVER GREEN LEASE monetary transaction.

Transaction

Parameters

EVER GREEN MAINTENANCE

TXN DATE

Select the transaction date from adjoining calendar.

EVERGREEN AUTO POST ON MATURITY IND

Select either YES or NO from the drop-down list to allow system to auto post evergreen lease transaction on maturity date + evergreen grace days.

Note: On selecting this check box, the Auto Include Residual Value option is disabled.

EVERGREEN NO OF UNPAID BILLS

Specify a value. Auto renewal of contract to evergreen lease is allowed only when actual number of unpaid bills is greater than the specified value.

EVERGREEN UNPAID BILLS PERCENTAGE

Specify the percentage (0 - 100) of total unpaid bills remaining for system to consider for auto renewal of contract to evergreen lease.

System uses the greater of these two values i.e. Number of Unpaid Bills and Unpaid Bills %

EVERGREEN PAYMENT AMOUNT METHOD

Select one of the following payment amount method from drop-down list which is to be accounted for billing on auto renewal of contract to evergreen lease. This is the rental amount for asset usage.

% on Maturity Bill - Percentage of lease payment amount as on maturity
Fixed Amount - Fixed lease amount

EVERGREEN VALUE

Specify the value to derive the asset usage billing amount based on any of the above Payment Amount Method.

EVERGREEN GRACE DAYS

Specify the total number of grace days allowed after maturity for system to consider for auto renewal of contract to evergreen lease

EVERGREEN EXTENSION TERM

Specify the new extension term which is the agreed term between customer and financial institution.

This term is mapped to extension term of EVER GREEN LEASE monetary transaction.

This transaction is posted Only after contract date and before maturity date + grace days (i.e. the transaction date > Contract Date and Transaction Date <= Maturity Date + Ever Green Grace Days).

On successfully posting the transaction, a confirmation message is displayed in the Results section indicating the date on which the transaction is posted. The details are updated to Account Information screen and overrides the existing parameters (if any) propagated from Origination on funding the account.

When Evergreen lease transaction is posted on existing lease account and on renewal, the lease account is extended up to the term specified and is billed as per the agreed Payment Amount for extended term. Also the Rate and Residual % of the existing lease are updated to 0 and existing balances are closed by either posting an adjustment minus transaction to the account or collecting the payment from customer.

If there is any change required in payment amount after the contract is renewed to ever green mode, post LS_CHANGE_PMT_AMT (Lease Change Payment Amount) transaction to update the Payment Amount.

However, if required an Evergreen lease contract can be terminated anytime once evergreen billing has been started.

Parent topic: Nonmonetary Transactions