Purpose

Asset repurchase functionality enables the leasing company to designate which entity will repurchase the asset at the conclusion of the operating lease contract.

Setup

Navigate to the Source Code Setup page and set Asset Repurchase source code:

Navigate to Financial Product page.

Fin. Product Type must be equal to Operating Lease:

Residual Value Type must be set to Stays Unpaid:

Set Asset Sales VAT Prod. Gr. and Invoice Type for Asset Repurchase:

To create a new guarantee dedicated to asset repurchase, navigate to Guarantees. Enter the Code and Description, select Guarantee Type as Buy-back, and set the Page ID to 17021393.

Process

Create a new operating lease application and enter repurchase guarantee details:

• Asset Line No. – links guarantee with specific asset on contract.
• Guarantee Code – specifies guarantee code.
• Starting Date – specifies guarantee starting date.
• Ending Date - specifies guarantee ending date, typically equal to contract expiration date.
• Amount – specifies asset repurchase amount, if blank asset repurchase amount is equal to residual value.
• Third Party – specifies third party who will repurchase asset at the end of contract.

Activate application to a contract and run Invoicing Run for full contract term. 

Collect all payments from customer.

Run FA depreciation if required. 

After the contract is fully invoiced and paid navigate to Contract Card and process OL Asset Return:

After the asset was returned run Asset Repurchase Invoicing Run procedure:

Procedure Asset Repurchase Invoicing Run will create, and post asset repurchase invoice according repurchase guarantee details: