Portfolio Management

Once a deal has been booked, LeaseAccelerator automatically creates a Deal Summary for the lease.

Deal Summary captures the following:

• Lease Contract Details

• Asset Details

• Mid-term and End-of-Term Options and Obligations

Use the Deal Summary to manage adjustments to the lease after it has been booked.

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Deal Summary

The Deal Summary workspace includes the following tiles:

• Participants

• Details

• Terms

• Expenses

• Notifications

• Related Deals

• Summary

Participants Tile

The Participants tile pre-populates with the Participants entered for upstream documents during the leasing process; for example, Schedule Participants or LvB Participants.

Key Features Include:

Adding Participants for certain role types such as Asset User or Vendor. To add a Participant, click the plus sign to the right of the field.

Reveal linked Participants by click the filter icon to the right of the field. This will show you which Participants are linked to others and where one is dependent on another.

Applying filters and showing available Participants by clicking the target icon and then selecting which filters to apply.

Details Tile

The Details tile summarizes the asset information entered during schedule entry.

It is from this tile that you can Reclassify a deal once booked. By clicking the Reclassify button you are directed to the Accounting Classification Analysis workspace.

From here you may override the automatic classification by selecting the standard you would like to override and choosing from the drop-down menu and inputting an override explanation. An Override Explanation is required to save any change in accounting classification. Do not forget to input the reclassify effective date, and do not click the Refresh Classification button.

You may also change details in the Analysis by Category section if the particulars of the schedule are different than the system generated results based on the configured Corporate Policy settings. This could result in reclassification of the lease.

Lastly, you may change Deal Characteristics from the default settings as may be appropriate for the individual schedule. These changes may also result in reclassification of the lease. 

Once you have completed any edits/changes to the analysis, click the Save Accounting Classification button and the lease will be reclassified as of the Effective Date indicated. If this date is in a closed period, you will receive a pop-up notifying you when adjustments will be posted. Click Ok, and then you’ll see notice that the Accounting Classification has been saved.

In Deal Summary, on the Summary tile, you will see any Reclassify Events listed. You will also see a kebab to the right of the event, which allows you to delete the accounting classification as necessary. If you delete all classifications, you will see Not Yet Classified in the Accounting Classification field in Deal Summary, no events in the Reclassify Events section, and a To Do and button for Generate Accounting Classification will reappear.

Terms Tile

On the Terms tile, all required fields are pre-populated with the terms entered during schedule entry.

Terms Take From:

The Terms Taken From field specifies what document was used to enter the terms relevant to the deal being summarized. The following sections are available:

• Lessor-provided Schedule

• Vendor-provided Term Sheet

• Funder Rate Card

• Other

Funder Rate Cards are ordinarily used with lease lines and pre-populate the terms. (Contact LeaseAccelerator Equipment Lease Sourcing if you are a Sourcing customer and want to have a Funder Rate Card configured for your lease line.)

Expenses Tile

On the Expenses tile, any related expenses that were populated during schedule entry will appear. You may add expenses through this workspace in the same manner. Please see the User Guide to Entering a Lease (Expense Tile) for more information on entering Related Expenses.

There are four types of expenses that automatically produce journal entries when entered on either the Expenses tile in the Schedule workspace or added after a deal has been booked on the Expenses tile in the Deal Summary workspace. Those expenses include:

• ARO-End of Life Cost

• Initial Direct Cost (IDC)

• Lease Incentive

• Security Deposit

Any other expense type entered as a Scheduled Related Expense, will not automatically produce journal entries. To see those entries, the expense must be invoiced or paid. Recording such an expense may be done either using a standalone import for Invoice Related Expenses or Paid Related Expenses, or through the user interface and the Capture Invoiced/Paid Expenses workspace.

Notifications Tile

Use the Notifications tile to specify the internal alerts you want to receive as part of managing active lease transactions. You can set up notifications to remind you to take action on mid-term/end-of-term options. You can also use scheduled notifications to initiate internal workflow processes, such as planning for decommissioning and refresh of equipment, in order to return leased equipment in a timely manner.  Notifications entered here will add to any global notifications created during configuration for this particular schedule.

Notifications can be related to any of several events:

• The start of the lease (for example, for reminders to perform post-booking administrative or clerical actions)

• The end of the lease

• The exercise window for a mid-term or end-of-term option

When configuring notifications for end-of-term related processes, you should base the timing of the notification on the notification deadlines as required by the Lessor in the Lease Schedule and your internal operational needs.

• You can configure notifications as either;

  • One-time emails (using the Once options)

  • Recurring emails that are sent daily, weekly, or monthly for a pre-defined period of time

Selected notification email recipients correspond with the participants listed on the Participants tile.

As the participants in a deal (as captured in the Deal Summary and Asset Management workspaces) change over time, any notifications sent are automatically sent to the new participants.

The Notifications tile also gives you the ability to have a To-Do automatically enqueued when the notification is first sent.

To specify that you want to enqueue a To-Do:

• Check the Enqueue box

• Choose from the drop-down the action you want a specified user to take

The participant for whom you want the To-Do enqueued is specified by the role selected from the drop-down that has been assigned from the Participants tile in the lease process.

Note: While notifications can be sent to multiple participants in the deal, you must select a single participant type as being responsible for the To-Do to be enqueued.

When enqueuing a To-Do associated with a notification, you can also specify the deadline by which the To-Do should be acted upon. Depending on your configuration, LeaseAccelerator can automatically send out escalation notices when an action deadline has been missed.

• Timing: Date Notification sent

• Deadline: Date by which you must take action

Example: With Timing set to 120 days before end-of-term, enqueuing a To-Do to Record end-of-term intentions for assets approaching end-of-term and Action required within 30 days, you will get a notification 120 days before the end of term and have 30 days to declare whether you intend to purchase, return or renew the assets for the deal. If you do not declare your intentions within 30 days, an escalation email will be sent.

Follow the steps below to set up an end-of-term notification:

Related Deals Tile

Use the Related Deals tile to create or view deal relationships between two or more deals in LeaseAccelerator. Deal Relationships may be created for one of the following reasons:

• Has a coterminous relationship

• Has a non-coterminous relationship

• Is a rollover

• Is an upgrade

• Is a buyout

• Will be a new schedule for MLA

• Is takedown for lease line

• Has a modification relationship

Some of these relationships will be automatically created when a Modification is done to an existing lease. Please see the Deal Modifications section of this guide for more details.

Summary Tile

The Summary tile shows, in summary form, the details, terms and any notifications entered for a deal. It includes a table displaying the payment schedule as well.

Making Changes in Deal Summary

Changes made from Deal Summary can trigger adjustments to ensure consistency for elements of the deal. As a result, certain changes require an Effective Date to be identified. These include any changes to Participants on the Participants tile. The Make Changes Effective field by default is blank. If changes are made on the Participants tile and a date is not entered in this field, you will be prompted upon saving that you must enter a date.

Changes to data on any other tile may result in an automatic rebooking of the deal and an automatically enqueued To-Do to regenerate the Accounting Classification Analysis. To follow best practice methods for error corrections and true changes or modifications to leases, please see the various user guides available: User Guide to Error Corrections, User Guide to Deal Changes, and User Guide to Deal Modifications.