Asset Assessment

PURPOSE

Asset Assessment is the tool used to process a vehicle's return under a Full Service Lease or Usage Based Rental contract. When a customer returns a leased vehicle, one Asset Assessment record walks staff through everything that needs to be settled: any early-termination penalty, extra rental for late return, a credit for early return, excess-mileage charges, outstanding service and insurance costs, condition-related charges or refunds, and — if applicable — the sale of the returned vehicle. It calculates all of these automatically from the contract, lets staff review and adjust them, then posts a single combined bill (or credit) to the customer and updates the asset, the fixed asset record, and — if configured — closes the contract.

Each of the sections below only appears/applies if it's switched on for the contract's Financial Product. A given contract will typically only trigger some of these, not all.

SETUP

Before Asset Assessment can be used on a Financial Product, the following need to be configured on Financial Product Setup, under "Asset Assessment on Return":

• Create Fixed Assets must be on — Asset Assessment only works for contracts whose vehicles are tracked as Fixed Assets.
• Schedule To Asset Relation must be "One Asset" (one schedule per one vehicle).
• Turn on whichever of these apply to this product, to enable the matching section on the assessment:
  • Early Termination Fee Applies
  • Inertia Rental Applies
  • Rental Pro-Rata Credit Applies — also requires Pro-rata Allowed to be turned on for this product first.
  • Mileage Limit Applies
  • Service Settlement Applies
  • Insurance Settlement Applies
  • Asessment Conditions Apply
  • Asset Sale Applies
• Depreciate Asset until Return Date — if on, the vehicle's depreciation is brought up to date to the return date before billing.
• Close Contract on Asset Return — if on, the contract is automatically marked "Paid in Full" once the assessment posts.
• Create Sales Document — decides how everything gets billed: on = a proper Sales Invoice/Credit Memo document is created and posted; off = the charges post directly as General Journal lines with no document. This one setting controls the entire billing mechanism for the assessment.
• Last Mileage Date Tollerance (days) — how recent an odometer reading has to be to be auto-suggested as the return-time reading.
• Pro-Rata VAT Gr., Admin Fees VAT Group, Invoice Type For Asset Assmnt. — VAT and document-type defaults used when posting.

The contract itself must be in local currency (foreign-currency contracts aren't supported by Asset Assessment).

HOW TO USE

1. Create the assessment and get data

Create a new Asset Assessment for the contract/asset being returned. Run Get Data once — this pulls everything from the contract, schedule, financial product and asset: which sections apply, ETF and Inertia base figures, mileage baseline, asset book value, and the Services/Insurance/Conditions lines from the contract. Running Get Data again later will wipe and re-pull everything, so only do this once you're ready to start over.

Set the Assessment Date and the Date of Asset Return — most figures are calculated relative to the return date, so get this right first. Enter the Odometer Reading on Return; if a recent reading already exists in the system within the tolerance configured on the product, it will be suggested automatically.

Every time you change one of these key fields, the assessment recalculates automatically — you don't need to press a separate button for that.

2. Review each section that applies

Early Termination Fee — appears if the vehicle is being returned before the contract term is fully billed. Pick the ETF Code (this fills in the flat fee and discount rate from the ETF setup), adjust ETF as no of monthly rentals or the discount rate if needed. The fee combines a flat charge plus a discounted value of the remaining monthly rentals.

Inertia Rental — appears if the vehicle was actually used longer than what's been billed so far (late return). It charges the extra months at the last billed monthly rate; nothing to enter here, it's fully calculated.

Rental Pro-Rata Credit — appears for contracts billed in advance, when the vehicle is returned before the end of an already-billed period. It automatically credits the customer for the unused days. One field here is a real choice: Pro-Rata Credit Always Separate Cr. Memo — leave it off (the default) to have the credit combined into the same invoice as everything else; turn it on if this particular return needs the credit issued as its own separate credit memo instead.

Mileage / Excess Mileage — shows the mileage allowance for the term actually billed, the actual mileage driven, and the resulting excess (or under-usage). A charge only appears if the actual mileage exceeds the allowance.

Services and Insurance — each shows a line per contract service/insurance item, comparing what's actually been billed to the customer so far against the actual cost incurred. The difference (To be Billed) is what will be settled now; you can adjust it per line if needed.

Other Charges/Refunds (Conditions) — a checklist of condition items (damage, missing equipment, etc.) for this asset. For each required item, enter an amount to bill the customer (positive) or refund them (negative). A condition can also be set to reduce the vehicle's book value instead of just being ordinary income — useful when a charge represents damage being recovered against the asset's value rather than plain revenue.

Asset Sale — appears if this product allows selling the returned vehicle through the assessment. Choose who it's being sold to (Dealer, Customer, or a Third Party you enter manually), set the sale price, and tick Post Asset Sales when you're ready for that sale to actually post along with the rest of the assessment.

3. Check the Customer Billing Summary

At the top of the assessment, the Customer Billing Summary shows every component side by side — ETF, Inertia, Excess Mileage, Services, Insurance, Other Charges, and the Pro-Rata Credit — rolling up into:

• TOTAL to be billed and Applicable VAT
• Current Receivable Balance (whatever the customer already owes on the account)
• TOTAL to pay — the full amount the customer needs to settle, combining the new charges with anything already outstanding.

This updates live as you edit any section above, so you can review the full picture before posting anything.

4. Process the assessment

Once everything looks right, run Process. You'll see a confirmation of what's about to happen, then the system will, in order:

1. Log the return odometer reading.
2. Bring the vehicle's depreciation up to date (if configured).
3. Bill the customer for everything in the summary — as one Sales Invoice/Credit Memo (or, if the pro-rata credit is large enough to flip the combined total negative, one Sales Credit Memo instead), or as General Journal postings, depending on how the product is set up. If the pro-rata credit is marked "Always Separate," it posts as its own extra credit memo alongside the main invoice.
4. Mark the vehicle as returned, update the Fixed Asset's status, and close the contract if that's configured.
5. Post the asset sale, if one was set up and ticked.

The assessment's status then changes from New to Posted, and the record becomes locked — no further edits or recalculation are possible from that point through the normal actions.

Notes

• Everything above only recalculates while the assessment is New. Once posted, it's final.
• The document-vs-journal choice (Create Sales Document) and every "Applies" switch is set per Financial Product, so different vehicle/leasing products can behave differently through the same screen.
• Drill into Customer Invoice No. (or the Pro-Rata Credit Memo No. / Asset Sales Invoice No.) after posting to open the actual posted document.