PURPOSE

You can now set up a subvention using three methods instead of just one: the original Interest Differential subvention, % Of Asset Price (subsidize a percentage of the asset's price), and Flat Amount (subsidize a fixed currency amount). A program can use more than one method at once, more than one rule of the same method (e.g. two % Of Asset Price rules with different payers and percentages), and each rule can have its own payer - either the deal's Originator (picked up automatically) or a Third Party you name explicitly. If a calculated amount on a specific quote isn't right, it can be manually overridden with a reason recorded.

SETUP

1. Open the Program Card for the program you want to configure, in the Subvention section. It has two parts:
   • Legacy (Interest Differential Only) - the original "Calculate Subvention" checkbox and payer. Keeps working exactly as before if you don't touch anything else.
   • Rules (All Methods) - add one line per rule here:
     • Subvention Method - Interest Differential, % Of Asset Price, or Flat Amount.
     • Value - for % Of Asset Price, the percentage of the asset's price (enter 2 for 2%); for Flat Amount, the fixed amount to subsidize. Not used for Interest Differential, which always uses the program's own Base Rate (Subvention) instead - the difference between the contract's standard Interest Rate and that lower base rate.
     • Subvented by - Originator (automatically uses the quote/application's own Originator) or Third Party (enter the payer explicitly in the Third-Party field that appears).
   • You can add more than one rule for the same method - for example, one % Of Asset Price rule paid by the Originator and another paid by a Third Party, each with its own percentage. All rules' amounts are totaled together on the quote.

2. Open Subvention Posting Setup and add a line per method telling the system how to post it - no posting on activation / receivable / GL clearing account - plus which account to use, scoped by Financial Product / Legal Form / Individual or Business customer, the same way Leasing Posting Setup works. Reach it either by searching for it by name, or from Leasing Posting Setup's own Subvention Posting Setup action. One Income Account field covers both cases: set an Amortization Profile and it's treated as a deferred balance sheet account amortized over time; leave Amortization Profile blank and it posts directly as profit & loss income.

HOW TO USE

1. On a Quote or Application's schedule, and later on the activated Contract, you'll only see the sections actually configured for that program: the Subvention section shows only if "Calculate Subvention" is on; the Subvention Lines section shows only if the program has Subvention Rules configured, with a Total Subvention (LCY) field. If a program uses neither, you see neither; if it uses both, you see both, with independent totals.

2. Click/drill down into Total Subvention (LCY) to see the breakdown - one line per rule, with its amount and who it's charged.

3. To override one line's calculated amount, check its Override Amount box, then enter why in Override Reason. The line's Amount (LCY) becomes editable - enter the value you want. An overridden line is left alone by every later recalculation instead of being replaced, so it won't get lost or reset. Uncheck Override Amount to immediately restore the amount the system would normally calculate.

4. Switching a schedule's program from one with Subvention Rules configured to one without clears the old Subvention Lines automatically; switching schedule versions (e.g. during an Asset Variation) carries Subvention Lines - including any override - across to the new version.

5.This isn't available yet on the Rental contract/quote screens - only on standard Quote/Application and Contract schedules for now.