Lessor Invoice-Only Model

This model is usually used for any of the following cases:

In a transitional period of implementing LeaseAccelerator when not all data entered in LeaseAccelerator are verified.
For equipment where payments are dependent on actual usage or other variable factors. In such a case, clients enter the base lease data in LeaseAccelerator and process the payments based on lessors’ invoices.

The client decides to proceed and pay lessors’ invoices. However, actual payments should be sent back to LeaseAccelerator.

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This integration model has the following consequences:

Duplicate accounting effort and possibility of discrepancy: LeaseAccelerator has all the lease accounting related information, EoT terms, accounting standards, company ledgers and segments, cost center, asset users and owners, etc. LeaseAccelerator generates the correct amounts allocated to the proper segments according to the correct accounting classification rules. Lessor invoices do not carry this information. The accounts payable accountant must determine the needed accounting entries.
No pre-payment control: Since due payments are not exported from LeaseAccelerator to accounts payable in the ERP, accounts payable accountants have no automated means to match or verify lessors’ invoices. Any discrepancy between paid invoices and LeaseAccelerator calculated due payments will appear when actual payments are sent back to LeaseAccelerator. In this case, the LeaseAccelerator clearing account will show “after the fact” residual balances.
LeaseAccelerator clearing account reconciliation limits: Since due payments are not exported from LeaseAccelerator to accounts payable in the ERP, the payment key identifier that LeaseAccelerator generates for each entry is not to be delivered to accounts payable in the ERP. When accounts payable sends back the actual payments to LeaseAccelerator, they should include other keys to enable LeaseAccelerator to correctly match and allocate these actual payments to the due payments. This limits client flexibility in tracking intentional changes in payments, for example, being able to intentionally skip a payment and leave that specific payment period marked as unpaid until a dispute is resolved.
Lease payment identification risk: The key identifier sent from LeaseAccelerator to accounts payable for each due payment entry helps the accounts payable user to filter and send information for only lease payments to LeaseAccelerator. When sending back the actual payments to LeaseAccelerator, the transfer will then only include lease-related payments. When the key identifier is not used, as in this scenario, the accounts payable users must be very cautious to manually select only the lease-related payments.

Process Step ID	Process Step Description	Phase
P100	Start	Receive and pay lessor invoice
P200	Receive Invoice	Receive and pay lessor invoice
P300	Process Payment	Receive and pay lessor invoice
P400	Prepare Actual Payment File	Send Actual Payment to LeaseAccelerator
P500	Receive Actual Payments File	Send Actual Payment to LeaseAccelerator
P600	Validated?	Send Actual Payment to LeaseAccelerator
P700	Allocate Payments to Due Payments	Reconcile Payment with Due Payments
P800	Actual Payments vs. Due Payments	Reconcile Payment with Due Payments
P900	Reconciliation Needed?	Reconcile Payment with Due Payments
P1000	Adjust Due Payments in LeaseAccelerator	Reconcile Payment with Due Payments
P10000	Stop	Reconcile Payment with Due Payments

P100: Start

This process must be triggered regularly to apply actual payments to due payments and control the LeaseAccelerator clearing account.

P200: Receive invoice

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.

P300: Process payment

Accounts payable officers review lessors’ invoices and process the payment accordingly. Users are encouraged to match the invoices against LeaseAccelerator due payments to proactively prevent erroneous payments to lessors and to correct wrong information sent to LeaseAccelerator.

P400: Prepare Actual Payment File

On a regular basis, the account payable integration officer extracts the actual payments. In this case, users must be cautious to include lease-related payments only.

P500: Receive actual payments file

Method	Process	Next Step
RESTful API	ERP integration adapter initiates an API call to LeaseAccelerator with the generated payload (actual disbursement). LeaseAccelerator validates and imports the payload. LeaseAccelerator acknowledges the request with an OK response.	P600
File- based	The integration officer places the actual disbursement file in the agreed upon folder. 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.	P600

Method

Process

Next Step

RESTful API

ERP integration adapter initiates an API call to LeaseAccelerator with the generated payload (actual disbursement).

LeaseAccelerator validates and imports the payload. LeaseAccelerator acknowledges the request with an OK response.

P600

File- based

The integration officer places the actual disbursement file in the agreed upon folder.

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.

P600

P600: Validated?

LeaseAccelerator validates the file for format and content. In the event of any error, LeaseAccelerator reverts any updates processed for the file and sends an email notification to the configured recipients advising of the failure.

P700: Allocate payments to due payments

LeaseAccelerator applies the actual payments 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 below for a detailed explanation.

P900: Reconciliation needed?

A LeaseAccelerator user generates the accounts payable reconciliation report and detects any discrepancies between LeaseAccelerator calculated due payments and actual payments imported from the ERP. The accounts payable clearing account balance should only reflect unpaid due payments and pre-paid actual payments. If reconciliation is needed, proceed to step P1000. If no reconciliation is needed, the process ends.

P1000: Adjust due payments in LeaseAccelerator

If the actual payments do not match the LeaseAccelerator calculated due payments, the user must investigate the discrepancy and use the proper features in LeaseAccelerator to match the payments. This step should be repeated until full reconciliation is achieved.

Additional use cases

Case trigger

Duplicate schedule numbers for different lessors.

Scenario

Since the client did not export the due payments from LeaseAccelerator to accounts payable in the ERP, accounts payable does not have the payment ID. In sending the actual payments to LeaseAccelerator, the client relies on other keys such as schedule number, purchase order number, or lessor (payee) code. If the schedule numbers or purchase order numbers are duplicated for different lessors, LeaseAccelerator may allocate the actual payments to wrong lessors.

Steps and Expected Outcome:

The client must make sure that the combination of schedule number and purchase order number cannot be duplicated for different lessors.

Case trigger

Actual payments exceed due payments.

Scenario

Actual payments sent from the ERP exceed the total due payments calculated by LeaseAccelerator.

Steps and Expected Outcome:

LeaseAccelerator allocates the actual payments to due payments based on the following sequence (when applicable):

LeaseAccelerator allocates the excess amounts as per the due date specified.
LeaseAccelerator allocates excess payments to any unpaid due payments in previous periods.
LeaseAccelerator allocates excess payments to future due payments.

This sequence properly accounts for late payments and prepayments.

Case trigger

Actual Payments Due date missing or does not match any payment due date.

Scenario

Actual Payments sent from the ERP do not have a valid payment due date.

Steps and Expected Outcome:

LeaseAccelerator allocates the actual payments to due payments to any unpaid due payments in previous periods.

LeaseAccelerator allocates excess payments to future due payments. This sequence properly accounts for late payments and prepayments.

Case trigger	Credit note received from lessor.
Scenario	The client relies only on lessors’ invoice for payment. After payment has been processed and actual payment sent back to LeaseAccelerator, the client discovered that the invoice was incorrect and disputed it with the lessor.
Steps and Expected Outcome: When an invoice is proved to be incorrect, the lessor sends a credit note to cancel the effect of the disputed invoice then sends a new invoice with the correct amount. After Month-End Close, record a Payment Adjustment in LeaseAccelerator to capture the corrected invoice amount. A reversing entry will be created to reverse the previous posting to the accounts payable clearing account, and a corrected entry will be added to capture the revised invoice amount. The client then needs to use the payables export report to generate the data required to populate an Import Disbursements file which can be manually completed to capture the refund (if issued by the lessor) or credit note and adjust the accounts payable clearing account balance accordingly.
Warning: LeaseAccelerator strongly recommends that lessor invoices are matched against due payment report in LeaseAccelerator before approving payments.

Lessor Invoice-Only Model

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