Lease Contract Terminations

Lease Contract Terminations

Info
Please see attached documentation for instructions on how to perform basic Lease Asset Disposals / Equipment Disposals.


Instructions provided for the following basic tasks.  Each example is walking through the termination of a Lease Contract, therefore disposing of all Active pieces of equipment left on the contract.  This is not discussing asset disposals for Loan Collateral.  This is only discussing Lease Equipment disposals in regards to Terminating the Lease Contract.
  1. Lease Payoff Quotes
  2. Lease Contract Termination - Sale 
  3. Lease Contract Termination - Abandon
  4. Lease Contract Termination - Rollover
  5. Lease Contract Termination - Inventory


How do I know what kind of Termination to use?  It all depends upon what is happening to the equipment records on the contract.
  1. Perform a Sale Termination if:
    1. The equipment going to be immediately sold to the customer of the Contract.
    2. The equipment is going to be immediately sold to a 3rd Party.
  2. Perform an Abandon Termination if:
    1. The equipment is lost, destroyed, or unrecoverable.  No payment will be coming in for the equipment.  You will see a loss in the GL entries.
  3. Perform a Rollover Termination if: 
    1. The equipment going to be moved directly onto a new and currently un-booked contract.
  4. Perform an Inventory Termination if:
    1. The equipment going to be repossessed by the Finance Company due the customer not continuing to make payments as agreed.
    2. The equipment going to be returned to the Finance Company.
    3. The equipment going to be returned and eventually sold by the Finance Company to an unrelated party.
    4. Is the equipment moving from one active/booked contract to another active/booked contract.  After the equipment is in Inventory, you may then perform a contract modification on the second contract and search for the equipment record via the magnifying glass icon on the Equipment Screen.  This would mimic a Rollover, but since the new contract is already booked, you are unable to perform the Rollover.