Search for the deal using the Top Search Bar and Deal #.

From the Left NavBar, hover over Record Event. Since we are dealing with end-of-term options, hover over Record contract modification and then Change reasonably certain option. This will take you to the Modify Deal workspace.

On the Terms tile of the Modify Deal workspace, check the # of Payments field. Regardless of the modifications you are making, the number of payments may need to be adjusted based on your intended date of modification. The remaining term is calculated based on the current date (or system date). It is important to verify this is correct based on your intended date of modification. If the payment anniversary date has passed in the current month, then the remaining term starts with the next payment.

Since all original EOT options are removed from the modified deal, all options must be added with an accurate effective month, according to the term of the new modified deal. To do this, click the Mid-Term/EOT button and add the correct options. Remember, enter all options available per the contract, not just the Reasonably Certain option.

In the pop-up, click the plus sign to add options.

Select End of Term from the Type drop-down.

Select Renewal from the next drop-down.

Populate the at month field. Typically, this is the month after the initial term. Example, a 36-month lease would have a renewal at Month 37.

Indicate any notice period (in days). The at least field is required, even if populated with 0.

Provide the terms for the renewal, including the renewal term and payment amount.

If this renewal option is Reasonably Certain, check the box for ‘These terms constitute a Clear Economic Incentive and are Reasonably Certain to be exercised.’

In the Comments box, provide any relevant comments, including direct language from the lease agreement.

Click Add.

If you have additional options, enter them by repeating steps 4-12.

Click Submit.

Go to the Summary tile and verify all information is accurate.

Verify the Reasonably Certain EOT Option is correct in the After Modification column. This drop-down will now reflect the newly added Reasonably Certain options only. If there are multiple RC options, the system will default to select the option with the latest effective month.

Enter your Reasonably Certain Holding Period in the After Modification column. Please note, this should respect the remaining term for the modified deal.

Enter the appropriate Date of Modification. This should be the first day of a payment period and will be the new Lease Start Date of the modified deal. It cannot be the lease start date of the original lease, nor can it be a date in the future.

Enter any relevant comments.

Click Record Modification.

Click Okay on the warning box telling you a new deal will be created and the original deal will remain active until you classify and book the new, modified deal. 

You will be taken to the Accounting Classification workspace.

In the Reclassify Effective drop-down, select the Modification Date and click Refresh Classification.

Verify all information is correct. You may expand the Analysis by Category and Deal Characteristics sections for more information.

Click Save Account Classification.

On the Next Steps tile, click the Book button to book the modified deal.

Verify the correct Ledger Date. The drop-down will include applicable dates based on the Date of Modification and open periods. Please note the Date of Modification cannot be changed once the modification has been saved.

The appropriate ledgers are pre-populated from the original deal and must be used to book the modified deal to maintain the linkage. Please note, the modified deal must be booked to the same ledgers the original deal was booked. When a lease is booked to a different ledger, this must be entered as a brand-new lease, not a modification. 

Verify the correct option is selected for Expected Disposition. If you were unable to select the correct RC Option in the Modify Deal workspace, you may do so now.

Verify the correct Expected Holding Period is entered, change as necessary.

Verify the correct IBR is populating. If you would like the system to use the default IBR according to remaining term, country, and Lessee, click Use Default IBR.

Click the Book button.

Go to original deal and take note of all relevant participant details (BU, Entity, Lessee, Geo, ShipTo, Vendor, Funder, Treasury Approver, and Reporting Area) If client has any deal-level custom participants, those should be noted as well.

Take note of any End of Term options the original deal has, as the assumption is that the added asset(s) will have the same options.

Using the Original Lease End Date of the original deal, calculate the remaining term (number of payments) based on the date the new asset(s) are being added. This should be the first day of a payment period and will become the Lease Start Date of the coterminous deal. Verify that you’ve calculated correctly by ensuring the new lease will end on the same date as the original lease.

Navigate to the Enter Schedule workspace from the Left NavBar.

Enter the new asset(s) as a new lease, using the participant information from the original lease.

On the Details tile, enter the coterminous lease schedule number. We recommend using part of the original lease in the schedule number so you can use the wildcard when generating some reports. Example: Acme 123 and Acme123B would both show up on reports if using the wildcard and inputting Acme 123* in any Schedule Number parameter field.

Enter the new asset(s) information, including the unit price.

On the Terms tile, enter the payment frequency and number of payments based on your calculations from Step 3. Please note: The frequency and repayment mode for the coterminous lease should be the same as the original lease.

Enter all the End of Term Options that are available, adjusting the at month appropriately to align with the duration of the new coterminous lease.

Enter any expenses related to the new asset(s).

Click Save.

In the Deal History workspace on the Next Steps tile, click Book.

In the Book Deal workspace, enter the Commencement Date for the new asset(s) and select the appropriate Ledger Date.

The new deal should be booked to the same Ledger(s) as the original lease.

Verify the correct Expected Disposition and Holding Period.

Click Book.

Once booking is complete, scroll to bottom of Deal Summary/Summary tile and click Generate Accounting Classification.

In the Accounting Classification Analysis workspace, select the Commencement Date from the Refresh Classification drop-down and click Refresh Classification.

Verify everything looks appropriate in the Analysis by Category and Deal Characteristics sections and then click Save Classification.

Go to Deal Summary and verify on the Summary tile that the Original Lease End Date of the new deal is the same as the Original Lease End Date of the original deal.

Go to the Related Deals tile.

Select has a coterminous relationship with from the This deal drop-down.

Change the Effective Date to reflect the Lease Start Date of the coterminous deal.

Click Find Eligible Deals.

In the pop-up, populate the Schedule Number with only the wildcard (*).

Verify the Effective Date is accurate.

Click Retrieve Eligible Deals.

Find the original deal in the list and click Use next to that schedule number.

Back on the Related Deals tab, you should see the original schedule number next to the drop-down with has coterminous relationship with.

Click Create Deal Relationship.

Search for the deal using the Top Search Bar and Deal #.

From the Left NavBar, hover over Record Event. Hover over Record contract modification and then Add asset(s). This will take you to the Modify Deal workspace.

On the Terms tile of the Modify Deal workspace, check the # of Payments field. Regardless of the modifications you are making, the number of payments may need to be adjusted based on your intended date of modification. The remaining term is calculated based on the current date (or system date). It is important to verify this is correct based on your intended date of modification. If the payment anniversary date has passed in the current month, then the remaining term starts with the next payment.

Since all original EOT options are removed from the modified deal, all options must be added with an accurate effective month, according to the term of the new modified deal. To do this, click the Mid-Term/EOT button and add the correct options. Remember, enter all options available per the contract, not just the Reasonably Certain option.

Go to the Add Assets tile.

Indicate the Available Date.

Click the plus sign to add information about the additional asset.

Select the appropriate Product Category from the drop-down.

Populate all relevant asset detail fields including Description.

Choose the appropriate Cost Center from the drop-down.

Choose the appropriate GL Code from the drop-down.

Quantity is a locked field and will always be 1. If you are adding more than one asset, you will need to add additional lines for each asset.

Enter the correct Unit Price and tab out of the field.

When all relevant and required fields are populated, click Add.

Go to the Summary tile and verify all information is accurate.

Verify the Reasonably Certain EOT Option is correct in the After Modification column. This drop-down will now reflect the newly added Reasonably Certain options only. If there are multiple RC options, the system will default to select the option with the latest effective month.

Enter your Reasonably Certain Holding Period in the After Modification column. Please note, this should respect the remaining term for the modified deal.

Enter the appropriate Date of Modification. This should be the first day of a payment period and will be the new Lease Start Date of the modified deal. It cannot be the lease start date of the original lease, nor can it be a date in the future.

Select No from the drop-down indicating the payment has been adjusted to be commensurate with the value of the new asset(s).

Enter any relevant comments.

Click Record Modification.

Click Okay on the warning box telling you a new deal will be created and the original deal will remain active until you classify and book the new, modified deal. 

You will be taken to the Accounting Classification workspace.

In the Reclassify Effective drop-down, select the Modification Date and click Refresh Classification.

Verify all information is correct. You may expand the Analysis by Category and Deal Characteristics sections for more information.

Click Save Account Classification.

Go to Deal History from the Left NavBar.

On the Next Steps tile, click the Book button to book the modified deal.

Verify the correct Ledger Date. The drop-down will include applicable dates based on the Date of Modification and open periods. Please note the Date of Modification cannot be changed once the modification has been saved.

The appropriate ledgers are pre-populated from the original deal and must be used to book the modified deal to maintain the linkage. Please note, the modified deal must be booked to the same ledgers the original deal was booked. When a lease is booked to a different ledger, this must be entered as a brand-new lease, not a modification. 

Verify the correct option is selected for Expected Disposition. If you were unable to select the correct RC Option in the Modify Deal workspace, you may do so now.

Verify the correct Expected Holding Period is entered, change as necessary.

Verify the correct IBR is populating. If you would like the system to use the default IBR according to remaining term, country, and Lessee, click Use Default IBR.

Click the Book button.

Search for the deal using the Top Search Bar and Deal #.

From the Left NavBar, hover over Record Event. Hover over Exercise lease termination and then Record contractual return. This will take you to the Record Asset Event workspace.

Select the asset that you want to terminate (return). Please note: if you have multiple assets being terminated, you may select them at the same time if the Return date of those returns is the same.

The system will calculate the surviving payment based on the remaining assets, but this field is editable, so you may change it as necessary.

The Return Option from the Asset Event drop-down will be pre-selected.

Change Ledger Date to appropriate fiscal month/year.

Change Return Date to appropriate date. It should be the day that the asset is returned, and the best practice is to put the last day of a payment period.

Enter any relevant comments related to the return.