Asset Variation

Asset Variation

1. Purpose

Using asset variation procedure user can Pay-out selected assets, remove selected assets from contract at outstanding value, add newly financed assets at asset price and change asset details.

2. Setup

Setup Invoice type for Asset Variation/Pay-Out on Financial Product setup.

Figure 1 Financial Product

3. Asset Variation

In order to start asset variation navigate to contract card and click action Asset Variation and Asset Variation card will open.

Figure 2 Contract Card

Figure 3 Asset Variation Card

Asset Variation part is divided into two sections. Section Asset Variation (left) represents currently existing assets on contract. Section Asset History (right) represents asset history records. At the beginning of asset variation both sections have identical values because Asset History is copied from assets on contract. Asset History section is not editable. Both sections have following fields:

Variation Type – defines variation type. Available options are Change Details, Pay-out, Remove, Add.
Description – asset description.
Price – asset purchase price.
Price (Excl. VAT) – asset purchase price excluding VAT.
Residual Value – asset residual value.
Residual Value (Excl. VAT) – asset residual value excluding VAT.
VIN - vehicle identification number.
Serial No. – asset serial number
Asset No. – fixed asset record number.
Override Asset Outstanding (Current and New) – if enabled fields Current Outstanding Principal and New Outstanding Principal are editable.
Current Outstanding Principal - current outstanding principal of particular asset
New Outstanding Principal – new outstanding principal of particular asset.
New Residual Value – new residual value of particular asset.
Variation Admin Fee – asset variation administration fee to be charged to customer.
Override Pay-out Figure – if enabled field Pay-out Figure is editable.
Pay-out Figure – pay-out figure amount to be charged to customer in case of asset pay-out.
Pay-out Revenue – revenue on asset pay-out.

Variation Totals part represents total values of asset variation and has following fields:

Effective Date of Variation – date of asset variation.
Effective Date on – defines how effective date of variation was calculated. Available options are Next Installment date, Next Installment date, Schedule Starting date and Current Workdate.
Total Admin Fee – total amount of administration fee to be charged to customer.
Total PayOut Amount – total amount of asset pay-out to be charged to customer.
Total PayOut Revenue – total amount of asset pay-out revenue.
Total Change In Asset Price – total change in asset price.
Total Change In Service Price (financed) – total change in service (financed).
Total Change In Insurance Price (financed) – total change in insurance (financed).
Total Change In Outstanding – total change in outstanding principal.
Total Change In Gross Receivable – total change in gross receivable.
Total Change In Unearned Interest – total change in unearned interest.
Total Change In Residual – total change in residual value.

Rescheduling Section represents and allows to compare current vs new values on schedules. Section has following fields:
Next Installment Date – next installment date.
Next Installment – next installment amount.
Interest Rate - interest rate.
Outstanding Principal – outstanding principal amount.
Unearned Interest - unearned interest amount.
Gross Receivable – gross receivable amount.
Residual % - residual value percentage.
Residual Value - residual value amount.

4. Remove Asset

To remove asset from contract select asset and click action Remove Asset.

Variation Type was set to Remove and price and residual value amounts of the asset was set to zero. Click action Recalculate to refresh total amounts of variation.


Click action Confirm Variation to finish asset variation.

Asset Variation confirmation creates new valid schedule version with type Asset Variation and may produce G/L transactions in the system.

5. Pay-Out

To pay-out asset select asset and click action Pay-out Asset.
Note: pay-out is not allowed for Lease Inventory and Retals financial products.

Variation Type is set to Pay-out and price and residual value amounts of the asset is set to zero and initial Pay-Out Figure amount is equal to Current Outstanding Principal value. To override Pay-Out Figure amount enable flag Override Pay-out Figure. In order to charge customer administration fee input value into Variation Admin Fee field.
Click action Recalculate to refresh Variation Totals section.

Click action Confirm Variation to finish asset variation.

Asset Variation confirmation creates new valid schedule version with type Asset Variation and produce G/L transactions in the system.

6. Change Asset Details

To change asset details, select asset and click action Edit Asset Details.

Asset Card will open. Input new VIN and click Close button.

Variation Type is set to Change Details on asset record.

Click action Confirm Variation to finish asset variation.

7. Add new asset

To add new asset click action Add New Asset.

Asset Card will open. Input new asset details and click Close button.

Note: Lease Inventory and Retals financial products fixed asset record must be create before starting asset variation and than created fixed asset number must be selected in a field Asset No.
Click action Recalculate to refresh Variation Totals section.

Click action Confirm Variation to finish asset variation.

Asset Variation confirmation creates new valid schedule version with type Asset Variation and produce G/L transactions in the system.