Accruals / Earnings
Contract Explorer - Accounting Tab Values
The following information is referencing the values displayed on the Contract Explorer - Main screen - Accounting tab for a lease or loan. It also displays which dataview the value can be found in. Capital Leases View Column Contract Receivable ...
Understanding Operating Lease Income Calculation Methods
This article is only discussing Operating Lease Income. It is not discussing income/accrual functionality for Contract Items like IDC's, Subsidies, Financed Fees, etc. on Operating Leases. Please refer to the attachments for more information. In ...
IDC Calculations - LP vs ASPIRE
See the attached document for complete details. The attached document Here is a quick rundown of the differences between IDC calculations as they were handled in LP versus ASPIRE. The ASPIRE v5 IDC items are configured to use the Effective Interest ...
Compounding Vs Simple Interest
See attached document for details. The attached document goes through the difference between simple and compound interest
Month End Procedures ASPIRE
See attachment for guidance on processing month end
Amortization Schedule Out of Balance
The situation: The contracts amortization schedule is out of balance to the contracts economics. The users receive a “Current values do not amortize” error. The solution: Preform a non-economic contract modification to correct amortization balance. ...
Processing Earnings in ASPIRE Video
See linked video for complete details. The linked video shows the different methods of processing earnings. Click here for the 17 minute video.
Financed Lease with Contract Item Earnings and Loan with Benchmark Pricing Example Video
See linked video for complete details. The linked 7 minute video provides an example of the earnings to expect on a lease with a contract item, and a loan with benchmark pricing. Click here for the video.
Earnings Calculation Video
See linked video for complete details. The linked video reviews the earnings calculations on a financed lease and a loan. Click here for the 6 minute video.
Suspending Residual Earnings on Sold Contract in ASPIRE
Suspending Residual Earnings on Sold Contract in ASPIRE When a lease is sold to a funding source with the residual retained, FASB ASC 860 states that the lessor cannot recognize earnings on the residual until maturity ...
Legal Balance of a Contract
Calculate a contract’s “Legal Balance” as the sum of all GL Debit and GL Credits under the following GL Interface Account Types: · AccountsReceivable · AccruedInterestReceivable · AccumulatedDepreciationEquipment · AccumulatedExpenseCIType · ...
Adjustment Item Earnings Method
See attached document for in-depth details. Adjustment Item Earnings Method tells the system how to calculate earnings on Contract Items (such as IDC and the Loan item for loans). It defaults to "Customer" but there are 3 choices, all explained ...
Example of Deferred Residual Income from Accreted Residual
Processing a Charge Off and Non-Accruals
Charging off a Lease or a Loan in ASPIRE is a straightforward process although there are a couple different methods and options to do so. There are two ways to process a Loan charge-off. The first way uses a contract modification and the other way ...
Non-Accrual Configuration
Non-Accrual Setup When a contract is placed on non-accrual it is due to the customer being past due (typically done at 90 days delinquent for most finance companies). This stops the contract from earning in the system and can also stop any amortized ...