Are Payoff Penalty Codes different for Leases vs Loans?

Are Payoff Penalty Codes different for Leases vs Loans?

Penalty Fee functionality is actually there regardless of the contract being a lease or loan.  The Contract Main > Billing screen has a field called “Penalty Code” that must be populated prior to performing the payoff calculation before the Penalty Code will be calculated and displayed onto the Payoff Calculator screen, regardless of the Contract being a Lease or Loan.

 

The Payoff Calculator handles Leases and Loans differently.  When the Payoff Calculator is calculating the Loan, you will see it included in the Payoff Amounts section (left part of the screen).  But when calculating for a Lease, you will see it included in the Other Amounts section (right part of the screen).

To actually bill the Customer for the Payoff Penalty Transaction Code, you must manually add the Penalty Transaction Code to a Miscellaneous Invoice:
  1. Loans will need an invoice specifically for the Payoff Penalty Transaction Code, as there is no "real" invoice created during a Loan Payoff or Partial Loan Payoff.
  2. Leases will allow you to add the Payoff Penalty Transaction Code to the Equipment Sale Invoice that gets created during the Assest Disposal as Sale process.

When building the Payoff Penalty Code in Admin > Codes & Types, there isn’t a flag that indicates the payoff penalty code is for a Lease or Loan.  It’s just indicated in the way the Penalty Basis is set up and how it applies to the Contract.  Here are a few examples of how a Payoff Penalty Code might be configured:




This is what a Payoff Calculator Looks like for a Lease vs a Loan.  The Penalty Amount is calculated because the Contract has the Penalty Code set on the Contract Main > Billing Tab prior to calculating the Payoff.  You will also notice the entire screen looks different, and that is because the Payoff Calculator follows a different calculation method when calculating a Lease than it does when calculating a Loan.
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LEASE

LOAN