Managing End of Term Using Mailback
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
While LeaseAccelerator supports full EOT workflow management, the system also provides a way for users who do not log in to the user interface to still manage their end of term using our mailback functionality. This process includes:
Requests for asset owners or users to declare their intentions for assets approaching end of term
Recording the EOT event
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 an EOT notification. Users may configure these from the Notifications tile in the Deal Summary workspace for schedule-specific notifications or users may configure Global Notifications during implementation. Please ask your Implementation Manager for more details on this process.
By setting up Notifications, users can identify the criteria for each schedule and EOT Template to drive the automated email notifications.
Users can:
Attach documents that exist within LeaseAccelerator to a notification
Specify whether the attachment is sent to ONLY the first notification or ALL subsequent notifications
Specify which User Roles will receive the attachment on the notification
Specify whether any specific action is required by the user role identified
Declaring EOT Intentions via Mailback
The EOT Notification email should be configured to include an EOT Notification Report. This report is an excel-based listing of all the assets on a particular schedule. With this report, a user may indicate their end of term intentions.
Depending on the configuration of the EOT Notification, the responsible party will receive an email with the EOT Notification report attached in advance of the end of the term for a lease. Following the steps below, a user may mail in their EOT intentions.
Step |
Action |
|---|---|
1 |
Populate the EOT Notification Report with your desired EOT intentions.
|
2 |
Attach the saved EOT Notification report to an email addressed to eot-[your company token]@leaseaccelerator.com (Example: eot-acme@leaseaccelerator.com) |
3 |
Mail the email with EOT Notification report to the system. |
4 |
The system will automatically record your EOT intentions and send the user another email with the EOT Recordation Report, used to record the actual end-of-terms event(s) that have occurred. |
Recording Asset Events
Users may manage their end of term by using our mailback workflow or our bulk import feature.
Exercising Option using Mailback
After you have declared your EOT Intentions by creating a Declaration Manifest using the EOT Notification mailback function, a new email will be sent that includes the EOT Recordation Report. This report is similar to the EOT Notification Report except that it is here you indicate exactly what is happening at end of term, and thus exercising the EOT option and recording the asset event.
Note: It is best practice to leave the Ledger Date fields blank. LeaseAccelerator will record on the first day of the first open period.
Simple form for all assets on a schedule
Advanced form for individual assets
Follow these steps to exercise an option and record the asset event:
Step |
Action: Exercising an Option |
|---|---|
1 |
Populate the EOT Recordation Report with your desired EOT events. If you are applying a single event type to all listed assets, you may use the Simple Form of the report. If different event types apply to different assets, you must select use the Advanced Form of the report. |
2 |
Attach the saved EOT Recordation report to an email addressed to eot-[your company token]@leaseaccelerator.com (Example: eot-acme@leaseaccelerator.com) |
3 |
Mail the email with EOT Recordation report to the system. |
4 |
The system will automatically record your EOT event and send the user an email confirmation. |
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.
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 again and then 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.
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