Mileage Assessment

Table of Contents

Purpose Setup Process

Purpose

The Mileage Assessment function allows leasing companies to periodically assess mileage, optimizing future customer costs. For example, if a customer exceeds the contract's mileage limit, they might pay an excess mileage fee at the contract's end. However, increasing the mileage limit by mid-contract and paying a higher installment may be more beneficial. Periodic assessments can help determine this.

Setup

Navigate to Financial Product page.

Field Schedule To Asset Relation must be set to One Asset Per Schedule.

Configure Periodic Mileage Assessment part:

  • Mileage Assessment Applies – specifies if mileage assessment applies for selected financial product.
  • Mileage Assessment Starts (date formula after Starting Date) – specifies the date formula for when the mileage assessment should begin to be applied.
  • Mileage Assessment Period – defines the date formula for mileage assessment regularity.
  • Mileage Assessment Ends (date formula before Ending Date) – specifies the date formula for when the mileage assessment will cease to be applied.
  • Under Mileage Threshold (%) – specifies under mileage threshold for applying mileage assessment.
  • Excess Mileage Threshold (%) – specifies under mileage threshold for applying mileage assessment.
  • Cost Impact Threshold (LCY) – specifies cost impact threshold for applying mileage assessment.
  • Odometer Tolerance (days) – specifies odometer ledger date tolerance for applying mileage assessment.

Process

To conduct mileage assessments, it is essential to have active contracts with mileage-dependent services and maintain an odometer ledger within the system.

Go to the Mileage Assessment Worksheet and select the Suggest action.

This process will review all mileage-dependent contracts and suggest mileage assessments based on the current odometer reading. Users can also compare the cost impact of mileage fees versus increasing the mileage limit mid-contract.

Mileage Assessment Worksheet contains the following fields:

  • Assessment Date – specifies the date of the mileage assessment.
  • Status - specifies the Status to be taken for the mileage assessment:
    • To be analyzed
    • Keep Existing
    • Variation Proposed
    • Variation Declined
    • Variation Approved
    • Variation Processed
  • Contract No. – specifies the contract number of the mileage assessment line.
  • Customer No. - specifies the customer number of the mileage assessment line.
  • Customer Name - specifies the customer’s name of the mileage assessment line.
  • Asset Description - specifies the asset description of the mileage assessment line.
  • License Plate No. - specifies the license plate number of the mileage assessment line.
  • Odometer Date - specifies the date of the last odometer reading
  • Odometer Reading - specifies the value of last odometer reading.
  • Mileage Option – specifies current mileage option.
  • New Mileage Option – specifies the proposed new mileage option.
  • Total Cost Impact – specifies total cost impact.

Mileage Assessment Worksheet fact box helps to compare the amounts Current vs New

  • Installment – specifies installment amount.
  • Sum of Installments over term – specifies sum of future installments.
  • Projected Excess Mileage (km) – specifies the projected excess mileage.
  • Price per Excess – specifies the price for excess mileage.
  • Excess Mileage Charge at the end of term (Projected) - specifies the excess mileage charge at the end of term.
  • Contract Variation Fee – specifies the contract variation fee.
  • Total Cost over lease term – specifies the total cost amount over lease term.
  • Total Cost - specifies the total cost amount.

Click Show Details to edit the mileage assessment line. This opens the Mileage Assessment Card for modifications before processing, including updating the odometer ledger or adding a contract variation fee.

To process variation, click action Process Variation. This action will create a new version of schedule, invoice contract variation fee and produce other G/L posting if applicable.

Processed mileage assessment line will be moved to Mileage Assessment Archive: