Lessor Invoices as Payments

In this model, clients sent accounted accounts payable invoices to LeaseAccelerator as if they were actual payments. LeaseAccelerator matches the accounts payable invoices with due payments for reconciliation of the accounts payable clearing account as follows:

• LeaseAccelerator receives the invoice feed from accounts payable as deemed payment. From the LeaseAccelerator perspective, this feed is the standard payment feed.

• Once “payment” is matched with accounts payable clearing account in LeaseAccelerator then LeaseAccelerator generates a non-posting entry: Dr AP Clearing, Cr Cash.

  • The above entry/matching can be leveraged for LeaseAccelerator accounts payable reconciliation to determine what’s “paid” and what’s not.

  • It also depletes the accounts payable clearing account balance in the BI accounting reports.

  • However, it is not reflected in the ledger export report, and is not posted to the general ledger.

• The standard entry crediting the accounts payable clearing account is posted to the general ledger, where it will be offset against the debit to the accounts payable clearing account received from the accounts payable subledger.

• The accounts payable feed, and “payment” matching occur in transaction currency. LeaseAccelerator does not perform any foreign exchange (FX) remeasurement or translation as part of this process.

• The non-posting entry has no impact on the disclosure reports, which use assume paid approach.

• If BI accounting reports are used as part of the accounts payable reconciliation, they should always be run in transaction currency. The results in functional currency or reporting currency are not reliable for this purpose.

LeaseAccelerator sends an exception report with unmatched payments. The client’s business team receives the exceptions and must have the ability to fix the exceptions and load the corrected data into LeaseAccelerator for matching.

Download a PDF version of the Enterprise Integration User Guide.

Integration Process

P100: Start

This process can be run as frequently as the client decides.

P200: Receive invoices

Lessors send their invoices regularly based on the leasing contractual terms and conditions. Invoices may include additions or deductions reflecting specific situations or conditions pertaining to the invoiced period.

P400: Prepare & send invoice file

Based on a scheduled configuration, the client’s integration engine generates a file with invoice data as per the agreed format.

P500: Receive invoice file

LeaseAccelerator’s ingest task fires on a configured periodicity (as often as every ten minutes; as infrequently as weekly) and checks the configured integration point for new files.

Recognizing that a new, unprocessed file has arrived, LeaseAccelerator validates and imports the file.

LeaseAccelerator sends an email notification to the configured recipients that the file has been successfully received and processed.

LeaseAccelerator removes the detected file from the SFTP location.

Invoice data can also be uploaded into LeaseAccelerator via the Actual Disbursement Bulk Import function in the LeaseAccelerator application.

P600: Validated?

LeaseAccelerator validates the format and content for major errors. If the file is corrupt, the whole file is rejected. LeaseAccelerator expects to find key identifiers such as PO number and due date. LeaseAccelerator records entries missing key identifiers. Any record that does not have all key identifiers is rejected.

If the file being validated was uploaded through the Bulk Import functionality in the LeaseAccelerator application, the LeaseAccelerator application displays the records and the status of each one. The user may elect to proceed and upload valid records or abort.

If LeaseAccelerator automatically uploaded the file being validated, LeaseAccelerator sends an email to the designated user indicating the upload status for each record.

If the file or some records are rejected, go to step P400. Otherwise proceed to step P700.

P700: Allocate invoices to due payments

LeaseAccelerator automatically allocates the invoices to the unpaid due payments (calculated by LeaseAccelerator) according to the keys supplied within the actual disbursement file. Refer to the “LeaseAccelerator application of Actual Payments to Due Payments” section for a detailed explanation.

If LeaseAccelerator fails to allocate any records of actual payments to proper due payments (such as the keys or amounts do not match), it generates an exception report that contains those records. The report, which is in Microsoft Excel format, is emailed to the designated user. LeaseAccelerator does not import any records in the exception report into its database.

The user must correct the errors and reload the corrected records through the Bulk Import functionality in the LeaseAccelerator application as per step P1200.

Proceed to step P800.

P800: Verify allocation is correct

The LeaseAccelerator user generates accounts payable reconciliation reports and a LeaseAccelerator accounts payable clearing account report for use in investigating the records in the exception report. The user determines the reason LeaseAccelerator failed to allocate each of the records to due payments.

P900: LeaseAccelerator needs adjustment?

If – for any invoice entry – LeaseAccelerator due payments need to be adjusted due to inaccurate data fed into it, proceed to step P1100. Otherwise proceed to step P1000.

P1000: Invoice data needs adjustment?

If LeaseAccelerator failed to allocate an invoice to a due payment because of invalid keys or wrong invoice amount, proceed to step P1200. Otherwise, reconciliation is complete, and the process stops.

P1100: Adjust due payments in LeaseAccelerator

If the actual payments do not match the LeaseAccelerator calculated due payments, the LeaseAccelerator user must investigate any discrepancies and use the features in the LeaseAccelerator application to match the payments.

This step must be repeated until full reconciliation is achieved.

P1200: Manually import through bulk import

The client prepares the corrected exception report and manually uploads it into LeaseAccelerator through the Actual Disbursements Bulk Import function in the LeaseAccelerator application.

P10000: Stop

The integration ends, and the client updates the corresponding log.

Additional use Cases

Integration Data

Due payment from LeaseAccelerator to ERP AP: AP-C1

LeaseAccelerator will export the following information when the due payment report is transferred or as a response payload when the API is invoked.

DUE PAYMENTS EXPORT PARAMETERS:

Regardless of the integration method selected (RESTful APIs or file-based FTP) or as a scheduled report, LeaseAccelerator allows users to specify several parameters to generate Due Payments:

Monthly due payments

Weekly Payables Export:

Actual payments from ERP to LeaseAccelerator: AP-C2

When integrating LeaseAccelerator with accounts payable, there are two scenarios that determine the data that LeaseAccelerator expects in the AP-C2 connection:

• Allocating actual disbursement to corresponding due payment

• Allocating invoices as due payments

Actual disbursements allocation

For the Lessor Invoice Matched to Due Payments model, Due Payments Only model, and Lessor Invoice Only model, the actual payments in accounts payable are compared to the due payments as part of the AP-C2 connection line in the diagrammed process for each model.

Upon actual payment of lessor’s invoice, LeaseAccelerator expects to receive a file of these actual payments carrying key identifiers so that it can allocate the actual payments to the due payments on the most granular level. The accounts payable actual disbursements allocation should contain the following data:

Invoices as actual payments allocation AP-C2

For the Lessor Invoices as Payments model, the invoices are allocated to due payments as part of the AP-C2 connection line in the diagrammed process for this model.

LeaseAccelerator expects to receive a file of accounted invoices from accounts payable with required columns (key identifiers) and other informative columns. LeaseAccelerator matches the accounts payable invoices to LeaseAccelerator due payment using the key identifiers.

LeaseAccelerator Application of Actual Payments to Due Payments

Based on the configuration, selected standards, information, lease terms and conditions, and allocations stored in LeaseAccelerator, LeaseAccelerator generates entries to accounts payable in the ERP for assumed payments. These payments can be generated on an asset, schedule, or portfolio level.

These due payments affect the accounts payable clearing account. When sent from LeaseAccelerator to accounts payable in the ERP, the entries include a unique payment ID.

Upon actual payment of a lessors’ invoices, LeaseAccelerator expects to receive a file of these actual payments carrying key identifiers so that it can allocate the actual payments to the due payments on the most granular level.

If LeaseAccelerator key identifier (LedgerEntryLineID) is included, LeaseAccelerator will allocate the actual payment to the corresponding due payment.

Note: LedgerEntryLineID can be used multiple times and the amount can be Positive or Negative (for correction, reverse payments, or credit notes).

There are two ways to allocated actual payments to due payments in LeaseAccelerator:

1. Using PAYMENTREFERENCE_ID

When LeaseAccelerator exports the Due Payments, each record will have PaymentReferenceID (some versions called LedgerEntryLineID). This is the key identifier LeaseAccelerator needs when the client sends back the actual disbursements so that LeaseAccelerator can match these actual payments to their corresponding due payment.

In this case, the PaymentReferenceID will ignore all other parameters sent (Currency, PO number, etc.) and force LeaseAccelerator to accept the actual payment into the due payment even if the amount in not matching. (You can do partial payment, full payment or overpayment).

The user can also send negative amounts (in the case of correcting errors or refunds).

2. Using other keys to allocate payment (auto-matching)

If the key identifier (PaymentReferenceID) is null, LeaseAccelerator will examine the following keys:

1. Currency

2. Payment Due Date (month and year only)

3. Purchase Order Number

4. Lessor_Reference_Id

   LeaseAccelerator will first search on POs (within the due payment period and assuming the currency matches), and then:

   • If one due payment is fetched, then LeaseAccelerator will apply the actual disbursements to it

   • If there are no records returned, then LeaseAccelerator will assume it is a non-lease payment and ignore it

   • If multiple records are returned, LeaseAccelerator will use the secondary key which is “Lessor reference Id” that should result in one due payment (otherwise the matching will fail).

LeaseAccelerator will automatically apply the actual payments to the due payments only when there is an EXACT match of all the keys and the amount.

In addition to the above four mandatory columns, clients may also send 10 “PassThrough” text fields, which are used while sending the exception report.

Any mismatching records are rejected and added to the exception report along with other informative columns.

LeaseAccelerator exception report:

When uploading actual payments (or invoices), LeaseAccelerator will match the payments based on the above rules and generate the “Exception Report” so users can identify the matched and unmatched entries.

Users can fix errors and reload the same file again and so on.