How to Perform a Repricing Run

Table of Contents

Example scenario Variable Lease Payments tab Payment Schedule after repricing run example: Lease Liability Projection after repricing run example:

The Repricing Run function is used to update periodic lease payments when the value of the underlying index changes.

Before running this action, you need to set up Index Rates.

You can find the action through the Role Center, navigating to Monthly Process → Repricing Run. Enter the Repricing Date and click OK.

 

Example scenario

The Payment Amount of the lease is based on CPI index and is repriced every year on January 1st.

  1. Enter new lease in the system as per example.

Variable Lease Payments tab

The Variable Lease Payments tab in the Lease Card is hidden by default. To enable it, head to Lease Setup and enable Variable Leases in the System Feature Configuration tab.

 
  1. Sign and Activate the lease.
  2. Run Post to G/L for period (ex., 2020-01-01…2020-12-31).
  3. Enter a new CPI rate a date (ex., 2021-01-01).
  4. Run the Repricing function with a repricing date entered (ex., 2021-01-01).
  5. Find the repriced payment amounts in the Lease Payment Schedule and Lease Liability recalculations based on the new payment amounts in Lease Liability Projection.

Payment Schedule after repricing run example:

Lease Liability Projection after repricing run example: