Managing End of Term

Properly managing end-of-term (EOT) is key to realizing the economic benefits of leasing.

The following play a critical role in avoiding unexpected expenses at end of term:

Understanding your options
Making informed decisions
Executing on those decisions in a timely and effective manner

LeaseAccelerator supports full EOT workflow management, starting from Notification. A typical EOT workflow includes:

Requests for asset owners or users to declare their intentions for assets approaching end of term
Tracking of requests for buyout quotes/renewal quotes/RMA numbers
Capture of appropriate authorization (for example, buyout PO)
Recording the EOT event

Contact your Implementation Manager for assistance in defining your EOT workflow and arranging to have it configured in LeaseAccelerator.

Download a PDF version of the guide.

EOT Key Steps

The table below describes the three key steps in the EOT Process:

Stage	Name	Description
1	Making a Decision	Decide whether to return, purchase, or renew the assets. In some cases, you may opt to return some assets and purchase or renew others.
2	Execution	Obtain the necessary internal approvals to act upon your decision. When returning equipment, this can also include making arrangements for replacement equipment, decommissioning the equipment to be returned, and coordinating the refresh with the return in a just-in-time manner to minimize overlap and avoidable expenses.
3	Recordation	Once you have successfully followed through on your end-of-term decision, record the EOT event in LeaseAccelerator to ensure that all reporting is properly updated to reflect the EOT event.

Making a Decision

The EOT decision process starts with a To-Do to Record EOT (record end-of-term intentions for assets approaching end-of-term). This action is typically enqueued with an EOT notification. Configure it from the Notifications tile in the Deal Summary workspace; it can also be manually enqueued or may result from a manually initiated Asset Management request. A third option is to configure Global Notifications during implementation. Please ask your Implementation Manager for more details on this process.

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Recording End-of-Term Intentions (Declaration Manifest)

Once this action is enqueued, the asset owner clicks the To-Do and is taken to the appropriate workspace to create a Declaration Manifest. The Declaration Manifest lists all assets that are still eligible for the EOT decision process (that is, those assets that have not already been terminated).

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Follow the steps below to perform a Declaration Manifest and declare your end-of-term intentions:

Step	Action
1	Select the assets for which you want to declare EOT intentions. If you are applying a single decision to all listed assets, check the Assets box to quickly select all listed assets. If different decisions apply to different assets, you must select only assets that will share the same EOT intension. Note: You may use the ‘Group Assets By’ filter to aid in logical organization of assets.
2	From the End-of-Term Intentions for Selected Assets drop-down, select the EOT action desired.
3	Confirm your intentions by checking the box that appears.
4	Click Save.
5	Once you declare your intentions, LeaseAccelerator creates a tagged Declaration Manifest within the Documents tile in Deal History.

Recording Asset Events

To exercise an EOT option, there are three ways to accomplish this:

Workflow: Following steps in EOT Workflow allows you to click buttons to capture associated documents/approvals and record the asset events.
Within Deal Summary: Outside of the EOT Workflow, an EOT event.
Bulk Import: Utilize templates and our bulk import function.

Exercising Option Following the EOT Workflow

After you have declared your EOT Intentions by creating a Declaration Manifest, a new To-Do button will appear in Deal History, depending on which option you selected as your intention.

Return Workflow

If you selected Return as your EOT Intention, the EOT workflow includes the following actions:

Request RMA
Notify Funder
Exercise Option

Buyout Workflow

If you selected Buyout as your EOT Intention, the EOT workflow includes the following actions:

Request quote
Capture Buyout Quote
Request Buyout PO
Capture Buyout PO
Notify Funder
Exercise Option

Renewal Workflow

If you selected Renewal as your EOT Intention, the EOT workflow includes the following actions:

Request Renewal Quote
Capture Renewal Quote
Request Amendment
Capture Amendment
Notify Funder
Exercise Option

Important: You may advance through any of these workflows by right-clicking the To-Do button and selecting Record Event.

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The final step in any of these workflows is to record the asset event.

Follow these steps to exercise an option and record the asset event:

Step	Action: Exercising an Option
1	Click the Exercise Option button
2	Select the assets that you want to renew, return or buyout.
3	Select the appropriate option from the Asset Event drop-down.
4	Select appropriate fiscal period for Ledger Date.
5	Change Return Date, Buyout Date, or First Day of Renewal to appropriate date.
6	Populate any relevant fields related to the option.
7	Click Save.
8	A message will appear at the top of the Record Asset Event workspace indicating successful recordation of the option. You may navigate to Deal Summary and look on the Summary tile to view your event and its effect on the lease.

Exercising Option Within Deal Summary

Users may exercise options outside of the normal EOT workflow when in the context of deal within the user interface. This method does not utilize To-Dos but provides the ability to navigate directly to the Record Asset Event workspace using the Record Event cascading menu.

Step	Action: Exercising an Option
1	Search for the schedule using the Top Search Bar and Deal #.
2	Hover over Record Event in the Left NavBar.
3	Hover over Exercise lease termination or Exercise lease extension/renewal.
4	Next, hover over the relevant option to Record a contractual buyout, return, or renewal.
5	Finally, select the option you want to record. You will be taken to the Record Asset Event workspace.
6	Select the assets that you want to renew, return or buyout.
7	Verify any remaining payments are accurate and change as necessary.
8	Select correct fiscal period in Ledger Date drop-down.
9	Change Return Date, Buyout Date, or First Day of Renewal to appropriate date.
10	Populate any relevant fields related to the option.
11	Click Save.
12	A message will appear at the top of the Record Asset Event workspace indicating successful recordation of the option. You may navigate to Deal Summary and look on the Summary tile to view your event and its effect on the lease.

Approve/Reject Optional Workflow

For clients that wish to add an approval step to the EOT workflow, LeaseAccelerator offers an option to turn on this feature for all asset events being recorded via the UI. After the recordation of an asset event the system will stage the event for approval. For more information, please see the Product Advisory on Approve/Reject Workflow for Recorded Asset Events Via the UI.

Exercising Options using the Bulk Import Function

LeaseAccelerator also offers users the ability to record asset events for multiple assets and schedules at once using the bulk import function within the user interface. The Bulk Import Record Asset Event uses either the EOT Recordation report, which is generated from the End of Term tile within the Reporting workspace, or a standalone template – Bulk Import Record Asset Event Template or RAE.

Note: It is best practice to leave the Ledger Date fields blank. LeaseAccelerator will record on the first day of the first open period.

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You may download the Bulk Import Record Asset Event Template from Ask Alex or the Success Center. Once you have a populated template, follow the steps below:

Step	Action: Bulk Importing an RAE or EOT Recordation Template
1	Select Bulk Import from the Left NavBar.
2	Select the Record Asset Event tile.
3	Click Choose File.
4	Select the appropriate populated template.
5	Click Validate.
6	Review the validation results and address any red errors and acknowledge any yellow warnings. Note: Errors will prevent import while warnings will not.
7	Make any updates needed to your import file to resolve errors. Once saved, click Choose File, and again click Validate.
8	Click Import.
9	The import status will display with a green dot indicating the import was successful and your asset events have been recorded.

Editing an Asset Event

There may be times when you’ve recorded an asset event with an error, like an incorrect renewal payment amount or renewal term. In these situations, editing the asset event is an easy way to correct the error.

Step	Action: Edit EOT Event and save
1	Search for deal using the Top Search Bar and Deal #.
2	In Deal Summary, go to the Summary tile.
3	Find the EOT Asset event and click the kebab (three dots) to the right and select Edit.
4	Once in the Record Asset Event workspace, edit the data that was entered incorrectly.
5	Click Save.
6	From Left NavBar go back to Deal Summary and verify that details changed by looking at the Summary tile. In the Payment Schedule, Renewals are indicated in blue font on the first day of the Renewal period, Terminations are indicated in red. Note: This will not affect journal entries in closed periods, even if the renewal started or was posted in a closed period. Any adjustments to accounting in closed periods will be netted into a “catch-up” adjusting entry posting in the first open period.

Rolling Back an Asset Event

When editing an asset event isn’t appropriate, users have the ability to rollback the event and put the deal in a state just before the asset event was originally recorded. This may be appropriate if an event was recorded completely in error.

Step	Action: Rollback EOT Event
1	Search for deal using the Top Search Bar and Deal #.
2	In Deal Summary, go to the Summary tile.
3	Find the EOT Asset event and click the kebab (three dots) to the right and select Rollback.
4	Once you’ve selected the rollback option, LeaseAccelerator will rollback any entries in the open period and return the deal to its pre-event status. Note: This will not affect journal entries in closed periods, even if the EOT Event was posted in a closed period. Any adjustments to accounting in closed periods will be netted into a “catch-up” adjusting entry posting in the first open period.