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Oracle Lease and Finance Management User's Guide
Release 12.1
Part Number E13583-05
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Termination Quotes

This chapter covers the following topics:

Overview

Termination quotes allow contracts, or assets on a contract, to terminate early or at the expiration of the contract. When a contract is terminated with the purchase of the asset, the asset becomes off-lease and is available to the asset-return-to-disposal processes for remarketing or disposal.

The section includes the following topics:

Reasons for Termination Quotes

Reasons for termination quotes include the following:

Levels of Termination

Oracle Lease and Finance Management supports the following levels of termination:

The termination of an asset line, or of some of the units of an asset line, is called a partial termination, or asset-level termination. Asset-level termination rebooks the original contract, without the terminated assets, with updated yields and insurance, and new contract-level and asset-level streams.

Contract terms and conditions define asset termination, including whether partial termination is allowed. The quotation process identifies the financial impact of the contract termination.

Forms of Termination Quotes

Lease and Finance Management allows the following two forms of termination quotes:

Standard Termination Quote

Lease and Finance Management generates a standard termination quote based on the terms and conditions set up in a contract.

Manual Termination Quote

Lease and Finance Management generates a manual termination quote when you bypass the terms and conditions of a contract and select the quote elements as you create the quote.

Note: Even if the contract's Termination Quote Process terms and conditions include the condition that partial termination is not allowed, you can create a partial termination quote using a manual termination quote.

In both standard and manual termination quotes, you can quote to terminate either the whole contract, or complete asset lines, or some of the units of individual asset lines.

You can also terminate assets without an explicit quote, by first entering a list of assets to terminate into an interface table, and then running a concurrent program.

Note: All amounts specified in a termination quote are in the contract currency.

Types of Termination Quotes

Lease and Finance Management supports the following types of termination quotes:

If you are creating a manual termination quote, the valid quote types are:

Methods of Termination Quote Acceptance

The methods of quote acceptance are:

Supported Contract Stages for Termination Quotes

The current termination quote process supports quote generation at the following stages of the contract's life:

Note: The parameter End of Term Tolerance Days in the contract's Termination Quote Process terms and conditions controls what is considered an early termination as opposed to an end of term termination. End of Term Tolerance Days specifies the number of days prior to the contract end date during which a termination quote is for an end of term termination; any termination quote before this is an early termination quote.

At all of these stages, you can generate quotes to include or exclude the purchase of the asset.

Supported Combinations of Quote Line Types

The following table shows valid combinations of quote line types and contract situations for termination quotes.

Supported Quote Line Types
Line Type Applicability Based on Terms and Conditions Ability to Specify Formula on Contract Updatable After Creation of Quote Define Stream for Billing and Accounting
Purchase Option Amount Yes Yes Yes Yes
Contract Obligation Yes Yes No Yes
Unbilled Receivables Yes Yes No Yes
Principal Balance Yes Yes No Yes
Discount Rate Yes Yes Yes Yes
Termination Penalty Yes Yes Yes Yes
Security Deposit Yes Yes No No
Return Fee Yes Yes Yes Yes
Rollover Incentive Yes Yes Yes Yes
Quote Fee Yes Yes Yes Yes
Estimated Property Tax Yes Yes Yes Yes
Outstanding Balance Yes No No No
Service & Maintenance Yes No No No
Contractual Fees Yes No No Yes
Tax/VAT Always applicable Yes (at site level) No No
Estimated Billing Adjustment Always applicable No No No
Miscellaneous Yes Yes Yes Yes

Supported Contract Statuses for Termination Quotes

Certain processes--such as termination quote, restructure quote, request termination, and contract expiration batches--are based the contract status. The following table shows supported combinations of the termination quote process and contract statuses.

Supported Contract Statuses for Termination Quotes
Contract Status Process: Termination Quote
Booked Yes
Evergreen Yes
Under Revision No
Abandoned No
Complete No
Incomplete No
New No
Passed No
Bankruptcy Hold Yes
Litigation Hold Yes
Termination Hold Yes
Approved No
Pending Approval No
Amended No
Reversed No
Terminated No

Auto Termination

When an Asset Manager accepts a termination quote for a fixed rate contract, the Lease and Finance Management termination process will verify that billing and accrual have been processed for the contract until the quote Effective From date.

If billing has not been processed, Lease and Finance Management will automatically run a billing program to complete the termination. If accrual has not been processed, Lease and Finance Management will automatically run an accrual program for fixed rate contracts to complete the termination.

Termination Quotes for Repossession

Repossession Overview

For delinquent loans, lenders need to be able to repossess assets on the contract. Lease and Finance Management enables the repossession of loan assets through the existing Termination Quote infrastructure. Lease and Finance Management allows users to terminate loan contacts and repossess assets on the contract. Repossessed assets are created in Oracle Fixed Assets using user-defined values.

The accounting process for repossessed assets is supported by Oracle Subledger Accounting. Termination quotes for repossession functionality is not enabled for the account derivation method of Accounting Template Set (ATS).

Asset Managers or Operation Managers can perform the following steps to repossess loan assets.

  1. Create a termination quote for repossession

  2. Process repossessed assets

  3. Post-processing of repossessed assets (remarket, scrap, re-lease)

Repossession Setup

Before termination quotes for repossession can be processed, you must complete the setup tasks for repossession. To set up termination quotes for repossession, see Termination Quotes for Repossession Setup, Oracle Lease and Finance Management Implementation Guide.

Repossession Process

When a loan is delinquent, you begin the repossession process by creating a repossession request in Lease and Finance Management. The following table outlines the repossession request process.

Repossession Request Process
Field Description
Create Termination Quote for Repossession Create a termination quote for repossession of the type Termination - Manual Without Purchase
Update Termination Quote for Repossession Optionally, you can update the asset details and repossession quote amounts.
Submit Termination Quote for Repossession for Approval The Approver reviews the repossession request and approves the termination quote for repossession. On approval of the repossession request, asset return requests are created in Scheduled status.
View and Update Asset Return Request You can view and update the asset return request created for a repossession quote.
Accept Termination Quote for Repossession Accept the termination quote for repossession to process the contract termination. The repossessed asset is created and accounted for in Oracle Fixed Assets.
Asset Repossession Report At any point in the process, you can generate an Asset Repossession Report for loans by running the Generate Pending Asset Repossession Report for Loans concurrent program. Reports are run for an operating unit or for a contract in the operating unit.

Create Termination Quote for Repossession

  1. To create a termination quote for repossession, navigate to Customers > Contracts and query the loan contract for which you want to create a repossession quote.

  2. Select Terminate and click Go.

  3. Select Termination Quote for Repossession from the Create dropdown menu and click Go. This will create a manual termination quote of the type Termination - Manual Without Purchase.

  4. You can select the Repossession Quote reason or you can define a new quote reason.

Update Termination Quote for Repossession

  1. To update asset details and repossession quote amounts, navigate to Asset Management > Termination Quotes > Update Termination Quote.

  2. Optionally, you can modify the Effective To date on a termination quote for repossession to NULL.

Submit Termination Quote for Repossession for Approval

  1. To submit a termination quote for repossession to the Approver, navigate to Asset Management > Termination Quotes and search for the repossession quote to be submitted.

  2. Click Submit.

Approval Conditions

The following conditions apply to this process:

View and Update Asset Return Request

  1. To view or update an asset return request navigate to Asset Management > Return Requests.

  2. Query the contract number or asset number of the Repossession Quote in the Asset Return Request page. The Asset Return Request for the assets on the repossessed contract is displayed with a return status of Scheduled.

  3. To update an Asset Return Request, select Update Asset Return Details from the Asset Return dropdown menu and click Go.

The following table describes Asset Return Request fields:

Asset Return Request Fields
Field Description Mandatory or Optional
Return Status Status of the Asset Return Mandatory
Date Notified Date notification was sent Optional
Date Title Returned Date the title was updated Optional
Date Returned Date the asset was returned Mandatory
Remarketer Name of the remarketing agent Optional
Date Return Value The due date of the asset return Optional
Return Value The fair market value of the asset on the date it was returned Mandatory
Comments Recorded notes or comments Optional

Accept Repossession Quote

Prerequisites

Before a repossession quote can be accepted, the following conditions must apply:

Steps

  1. To accept a repossession quote, navigate to Asset Management > Termination Quotes > Update Termination Quote and query the contract for which you want to a accept repossession quote.

  2. Select the Accepted checkbox and click Update.

The repossession quote will be accepted and the process will trigger the Termination workflow. The contract will be terminated and the assets will automatically be created in Oracle Fixed Assets with the values derived from the loan repossession setups.

Valuate a Repossessed Asset

To valuate the repossessed asset, the Loan Administrator must determine its Fair Market Value (FMV). When the FMV is determined, the Loan Administrator can manually writedown the value in Oracle Fixed Assets to FMV if the fixed asset value is less than the FMV.

For more information on the process, see Oracle Assets User Guide.

When these steps are completed, the repossessed asset is ready to be remarketed, scrapped, or re-leased onto another contract.

Asset Repossession Report

To create an Asset Repossession Report, run the Generate Pending Asset Repossession Report for Loans concurrent program. This report will display all Approved repossession quotes and associated asset returns. The report can be run for all contracts in an operating unit, or for a single contract in an operating unit.

Create Termination Quote

Creating a termination quote involves identifying the contract and asset for which you are creating the quote.

Use this procedure to create a termination quote. In this procedure, you select a contract to place it in context of the quote. You can specify an Effective Date of the quote. The Effective Date can be a prior date or a future date. If the Effective Date is not specified, the system date will default. You can also choose whether to terminate some or all of the units of each asset line of the contract.

The business rules of the contract determine the type of the termination quote.

For example:

For standard termination quotes, the amount is calculated based on the terms and conditions set up when the contract is booked.

You can create a manual termination at any time after contract booking. When you create a manual termination quote, you initially follow similar procedures as for creating a standard termination quote. The initial quote amount generated when you create a manual termination quote is simply the value of the outstanding receivables. You normally then edit the manual termination quote by adding your own quote type lines and additional amounts.

The Estimated Billing Adjustment quote line cannot be modified.

Termination Quote Roles

Five roles are available for termination quotes:

Prerequisites

Your contract must have the following:

Steps

Perform the following steps using the Termination Quotes page:

  1. Select the applicable option in the Create field and click Go.

    The Create Termination Quote page opens.

  2. Select the operating unit.

    Note: The list of values includes operating units assigned to the MO: Security profile.

    Note: The selected operating unit restricts the valid list of values in applicable fields.

    The application displays the selected operating unit as the default in the subsequent pages irrespective of the value that you set for the MO: Default Operating Unit profile option.

  3. Select the contract number for which you want to create the termination quote.

  4. Enter the Effective Date for the quote.

  5. In the Quote Type field, choose a quote type.

  6. In the Quote Reason field, choose the reason for the quote.

    This is a required field.

  7. In the Comments field, enter any optional comments that you may want to include.

Assets

  1. In the Assets area, select one or more assets to which you want to apply the termination quote.

  2. For each selected asset, enter the number of units to terminate.

    The number of units to terminate can be less than the number of units on the asset line of the contract.

    If you select all the assets, and do not alter the default number of units to terminate, then this results in a full termination quote; if you do not select all assets, or reduce the number of units to terminate, then this results in a partial termination quote.

Parties

  1. During the authoring of the contract, party details may be specified among the Termination Quote Process terms and conditions. If specified, they serve as default values for termination quotes.

    You may override the default values by selecting and entering values in the fields in the Parties section of the Create Termination Quote page, to satisfy the following conditions:

  2. Click Apply.

    Your quote number and quote amount appear in the Termination Quotes or Manual Termination Quotes page.

    If you are creating a standard termination quote, this completes the process.

    If you are creating a manual termination quote, at this point you have created a basic outline of the manual termination quote, to which you generally add your own quote type lines and additional amounts. For more information, see Add or Remove Manual Termination Quote Lines.

Search for Termination Quote

Search for Termination Quote

This section shows how to locate termination quotes, determine which type of termination you are using and whether or not the contract permits early termination, verify that you can offer a termination quote according contract status, and view the amounts to accept the termination quote.

Use the following procedure to:

For both standard and manual termination quotes, you can perform a simple or advanced search to locate a termination quote.

A simple search lets you find a termination quote by quote number, quote type, quote status, contract number, or customer name, or a combination of all of these parameters.

An advanced search lets you locate a termination quote by effective dates, accepted, payment received, recipient, or contract.

Prerequisites

Steps

Perform the following steps using the Termination Quotes page:

  1. For a simple search go to step 2; for an advanced search (not available from the Manual Termination Quotes page), go to step 5.

  2. To locate termination quotes with simple search, specify one or more of the following search criteria:

  3. Click Go.

    Matching termination quotes appear in the Results area.

  4. Continue at step 8.

  5. To locate termination quotes with an advanced search, click the Advanced Search button.

  6. Specify one or more search criteria in one of the areas: Search By Quote, Search By Recipient, Search By Contract, or Search By Asset.

  7. Click the respective Search By Quote, Search By Recipient, Search By Contract, or Search By Asset button.

    Matching termination quotes appear in the Results area.

  8. In the Results area:

Provide Quote

Providing a quote involves identifying and determining the quote details, reviewing and approving the quote, performing recalculations, and obtaining repurchasing approval.

Change Termination Quote Effective Dates

You can modify the effective dates of a termination quote by changing the termination quote Effective To date. Lease and Finance Management calculates the termination quote amount based on the current date. The contract terms and conditions include two parameters Quote Effective Days and Quote Effective Maximum Days.

When the termination quote is created:

You can modify the Effective To date up to the Effective From date + Quote Effective Maximum Days.

Changing the Effective To date has no impact on the calculated values.

Prerequisites

You have created a termination quote.

Steps

Perform the following steps using the Termination Quotes page:

  1. Specify search criteria to locate the termination quote:

  2. Click the Go button.

    Matches appear in the Results area.

  3. In the Results area, in the Quote Number column, click the hypertext link of the quote that you want to change.

    The Termination Quote page opens and shows the editable fields.

  4. In the Effective To field, click the Calendar icon and choose the date.

  5. Click Update.

Effective Date Termination

The effective date is the user-specified date used for termination quote calculation. Lease and Finance Management supports the following two methods of effective date termination:

Prior Dated Termination

The process of terminating a contract on a user-specified date which is before the quote creation date. For prior dated terminations, quote calculation and billing adjustments are processed from the prior effective date. Contract termination is processed on the current date with adjustments from the prior effective date.

For prior dated terminations, you must ensure that the contract start date is later than the following:

Future Dated Termination

The process of terminating a contract on a user-specified date which is after the quote creation date. For future dated terminations, quote calculation, contract termination, and anticipated billing calculation are processed on the future effective date.

Prior and future effective date terminations can be used with both Full and Partial terminations, Standard and Automated terminations, and termination types of With Purchase or Without Purchase.

Effective date terminations can be viewed in the Lease Center, Customer Self Service, and Vendor Self Service.

Note: : Future dated rollover quotes can be created and Accepted, but cannot be Approved.

Rollover Termination Quotes

A rollover is a process in which the lessee terminates all or part of an existing transaction, sometimes at a discount, and finances the amount of the termination on a new deal. When the termination amount is added to a new contract, the termination quote is not billed to the lessee, but the amount is instead rolled over to a new contract or existing contract and priced into the new transaction.

In Lease and Finance Management, rollover termination quotes can be created with or without purchase for securitized and non-securitized transactions. Rollover termination quote amounts are rolled over as a financed amount on a fee line with the fee type of Rollover on a contract or lease sales quote.

Lease and Finance Management validations determine whether a rollover termination quote can be rolled over on a contract or sales quote. For example, the customer account of the rollover termination quote and the new contract must be the same.

Rollover fee lines cannot be created for external, or third party, termination quotes.

A rollover termination quote can only be accepted by booking a contract with the quote referenced on a rollover fee line.

To create a Rollover Termination Quote, see Create Termination Quote.

Rollover fees can be added to a lease contract during authoring. For information on adding rollover fees to a contract, see Fee Lines.

View or Update Termination Quote Amount Details

You can view and optionally change the amounts of the line types that are the components of a termination quote. After you have created a standard or a manual termination quote, the termination quote amount is visible in the Termination Quotes or Manual Termination Quotes page.

Use this process to see a breakdown of the components of the termination quote, or to change the amounts on the component line types of a termination quote

Lease and Finance Management offers the following viewing options:

Prerequisites

You must have created a standard or a manual termination quote. For details, see Create Termination Quote.

Steps

Perform the following steps:

  1. Search for the termination quote whose amount details you want to see.

  2. In the Results area, click the Quote Number hyperlink to see the amount details.

  3. In the Amounts tab of the Termination Quote details page, you can optionally change the amount for one or more of the line types. Click the Line Type link by the rendered amounts. The Quote Line details page opens.

  4. Click the Update button and enter the amount for the line type.

  5. If you are viewing the details of a manual termination quote, you can add and remove line types in the Amounts page.

    Note: If you are viewing the details of a manual termination quote, you can add and remove line types in the Amounts page. For details, see Add or Remove Manual Termination Quote Lines.

  6. Click Apply.

  7. Click Submit for Approval when finished.

Recycling Termination Quotes

When you receive an accepted termination quote with a transaction status of Error, the error must be fixed. After fixing the error, set the contract termination status to Recycle.

To set the contract termination status to Recycle, complete the following steps:

  1. Navigate to Asset Management > Contracts

  2. Select the Contract Number.

  3. Select Terminate from the Action pull-down menu.

  4. In Terminate Transaction, click Go.

  5. For the selected Contract Number, click Recycle to recycle the termination transaction.

  6. Run the concurrent program Terminate Expired Contracts.

View Revised Contract Payment Schedules

When a lease contract's payment schedules are changed by a partial termination quote, Lease and Finance Management calculates and displays the revised payment schedules. You can then process the termination quote before submitting it.

Prerequisites

You have created a partial termination quote that changes payment schedules.

Steps

Perform the following steps:

  1. Click the Payment Schedule tab in the Termination Quote details page.

  2. Click the Current Total or Proposed Total hyperlinks to view total amounts for selected stream types listed by asset in the Payment Schedule Details page.

  3. Click the Total hyperlinks to view the stream type and asset amount details in the Payment Schedule Line Details page.

Add or Remove Manual Termination Quote Lines

You can build up your manual termination quote by adding or removing quote line types and amounts.

If you have completed the first stage of creating a manual termination quote, you have created the basic outline of the quote. The quote amount calculated will be the value of the outstanding receivables only. Generally you want to add your own quote lines and amounts to the basic termination quote.

The Estimated Billing Adjustment quote line amount cannot be modified or removed.

Prerequisites

You must have created the basic outline of a manual termination quote. .

Steps

Perform the following steps using the Termination Quotes page:

  1. Search for the manual termination quote to which you want to add quote lines.

  2. In the Results area, click the Quote Number hyperlink to which you want to add your quote lines.

    In the Amounts tab of the Termination Quote details page, you can add or remove quote lines.

  3. To add quote line types and amounts, continue at step 5.

  4. To remove quote lines, select the Remove check box for each line type that you wish to remove, then continue at step 11.

  5. In the Amounts page, click Create Quote Line.

    The Create Quote Line page appears.

  6. Select the Line Type for the quote line.

  7. Optionally select an asset for the quote line.

  8. Enter the amount for the quote line.

  9. Click Create.

  10. If you want to add more quote lines, repeat steps 5 through 9 for each quote line.

  11. Click Update.

Select Asset Serial Numbers on a Partial Termination Quote

You can specify the serial numbers of assets to terminate on a partial termination quote.

On a partial termination quote, if you are going to terminate one or more assets that are defined as serializable items in Oracle Inventory, then you must select the serial numbers of the units that you wish to terminate.

Prerequisites

Steps

Perform the following steps:

  1. Search for the termination quote.

  2. In the Results area, in the Quote Number column, click the quote number hyperlink.

    The Termination Quote Details page opens.

  3. Click the Assets tab.

  4. In the Assets page, click the icon in the Details column for the asset.

    The Asset Units page appears, with header information that includes quote details, asset number, asset quantity, and quote quantity.

  5. If the asset quantity is equal to the quote quantity, click Select All, else click the Select box beside the assets that you want to terminate.

    You must select the exact number of assets specified by the quote quantity.

  6. Click Update.

View or Update Termination Quote

You can view or update information about standard termination quotes. You can update two types of fields in a standard termination quote:

Common Standard Termination Quote Fields

Common standard termination quote fields are those fields that all standard termination quotes have in common, regardless of being based on the termination quote formula. Common standard termination quote fields that you can update include:

Quote Line Fields

You can update certain quote line fields in a standard termination quote depending on whether or not the termination quote formula that you used in the terms and conditions of your contract are correct and complete.

Standard termination quotes rely on the termination quote formula for calculation. You can use the default termination quote formula, or create your own termination quote formula during the implementation of Oracle Lease and Finance Management.

Correct Standard Termination Quote Line Fields

If the termination quote formula is correctly set up in the implementation of Oracle Lease and Finance Management, then Oracle Lease and Finance Management produces a standard termination quote with calculated values; you can update these fields:

Incomplete or Incorrect Standard Termination Quote Line Fields

If any of the required operands are missing from the termination quote formula or if you have not selected any termination quote formula in the contract terms and conditions, then Oracle Lease and Finance Management produces a standard termination quote that comprises only of certain fields, all of which have zero values and require manual updating. This documentation refers to this type of quote as a default standard termination quote. The available fields are:

The following steps provide general procedures for searching, viewing, and updating termination quotes.

Prerequisites

You have created a standard termination quote.

Steps

Perform the following steps:

  1. Search for the termination quote.

  2. In the Quote Number column, click the quote number hyperlink.

    The Termination Quote Details page opens.

  3. Optionally, edit the Effective To, Pre-Proceeds, Accepted, or Comments fields. For more information, see Common Standard Termination Quote Fields in the introduction to this topic.

  4. Optionally, edit the available quote line fields.

    Available quote line fields vary according to how you implemented the termination quote formula and applied it to the contract. For more information on which quote line fields you can modify, refer to the related topics, including:

  5. Click Update.

Send a Termination Quote to a Party

For parties specified on the termination quote, you can send the quote to a party from the Termination Quote Details page. To send a termination quote, you must search for it and place it into context.

Prerequisites

You have created a termination quote.

Steps

Perform the following steps:

  1. Search for the termination quote.

  2. In the Quote Number column, click the quote's number--a hypertext link.

    The Termination Quote Details page opens.

  3. In the Parties area under the Select column, select the party to whom you want to send a quote.

  4. Click the Send Quote button.

  5. To send the quote to another party--if available--repeat this subset of steps.

  6. Click the Update button.

Update Standard Termination Quote Amounts

Business rules determine the calculated termination quote amounts, but you can update some of the standard termination quote amounts.

The following table shows the supported termination quote line types that you can manually update after the creation of the standard termination quote.

Supported Quote Line Types That You Can Update
Line Type Updatable After Creation of Quote Available for Default Standard Termination Quotes Remarks
Purchase Option Amount Yes Yes None
Discount Rate Yes Yes None
Termination Penalty Yes No None
Return Fee Yes No None
Rollover Incentive Yes No None
Quote Fee Yes No None
Estimated Property Tax Yes No None
Miscellaneous Yes Yes Standard creation based on the way termination formula is defined.

View Assets

The Assets page shows you a view-only list of the asset number, description, and cost of all assets in the termination quote. The purpose of this feature is to let you review the details of assets that you are terminating or are purchasing through a termination quote.

Note: The Assets page includes a Details icon for each asset, that leads to the Asset Units page. The Asset Units page is used to select serial numbers of assets to terminate.

Prerequisites

You have created a termination quote.

You have retrieved the termination quote and placed it in context.

Steps

No steps are applicable

View Anticipated Billing

Use the Anticipated Billing tab on the Termination Quote details page to view the anticipated billing. Anticipated billing represents the amounts due to be billed between the quote creation date and the quote effective date.

View Messages

During the life cycle of the termination quote, Oracle Lease and Finance Management posts error, omission, and information messages. You can review these messages and take action to see that subsequent processing does not fail.

Three types of messages pertaining to terminations quotes are:

The Messages page shows:

Prerequisites

You have created a termination quote on a contract.

You have retrieved the termination quote and placed it in context.

Steps

Use the Messages tab on the Termination Quote details page to view messages. If there has been an error, then rectify the error at the source and regenerate the termination quote, if applicable.

Approve Termination Quotes

After you enter a standard termination quote, it is submitted for approval automatically and the approval process is controlled by general termination quote workflow. If the termination quote is rejected you need to revise it and create a manual termination quote.

After you create a manual termination quote, its first status is Drafted. To generate the approval process, you need to submit the manual termination quote for approval.

Prerequisites

You have created a termination quote.

Steps

Perform the following steps using the Termination Quotes page:

  1. Search for the termination quote.

  2. In the Results area, in the Quote Number column, click the quote number hyperlink of the quote that you want to approve.

  3. Click Submit for Approval.

Guidelines

You cannot change the content of the termination quote--such as the Effective To date or the assigned assets--after the status changes to Approved. Business rules determine whom to notify for approval.

Accept Termination Quotes

The following topics describe the two means of accepting termination quotes:

Accept the Termination Quote Automatically

Except for rollover terminations, automatic acceptance of a termination quote happens through the cash application routine of Oracle Lease and Finance Management. The automatic acceptance of termination quote occurs only if:

In the cash application routine, when the amount received matches the termination quote:

Accept the Termination Quote Manually

Use this procedure to manually approve a termination quote when:

Quote acceptance terminates the contract and changes its status to Accepted.

You can accept a termination quote two ways:

Manual acceptance of termination quote requires you to manually apply in Oracle Receivables the cash receipt to the invoice that the termination quote created and to any other outstanding invoices.

Prerequisites

Ensure that the termination quote's status is Approved.

You must run accruals for a contract till the termination quote acceptance date.

Note: While accepting the termination quote, Oracle Lease and Finance Management checks accruals for the contract based on the setup for the Check Accruals Till Previous Month system option. If you have selected this option, then the application checks accruals till Termination Quote Effective From Date's previous month's last day. Otherwise, the application checks accruals till Termination Quote Effective From Date.

Steps

Perform the following steps:

  1. Search for the termination quote.

  2. In the Results area in the Quote Number column, click the quote number hyperlink of the quote that you want to change.

    The Termination Quote details page opens.

  3. Click Update. The Update Termination quote page appears.

  4. Select the Accepted check box.

  5. Select the Pre-Proceeds check box to terminate the contract upon acceptance.

  6. Click Save.

Terminate Assets Using a Program

Assets are terminated by entering a list of assets to terminate into an interface table, and then running a concurrent program. An explicit quote is not required.

The main purpose of the program is to create termination quotes for the assets specified. Generally, the quotes will be for asset-level terminations, also known as partial terminations. If all the assets for a contract are specified to be terminated, then the quote will be for a contract termination.

You can specify whether you wish the quotes to be standard or manual termination quotes. For the standard termination quotes, you can also set a flag to automatically accept the quote, which helps to automate the termination of the asset or contract.

The table that you must populate is OKL_TERMNT_INTERFACE.

Enter the following columns in the table:

Another important column that automates the asset termination process is AUTO_ACCEPT_YN. If you set the value of this column to Y for standard, that is, non-manual asset termination quotes, then, if the quote is successfully created by the program, it is automatically submitted for approval. When the approval is granted, the quote is processed to completion; that is, the asset or contract is terminated.

After you have entered all the asset information into the OKL_TERMNT_INTERFACE table, run the concurrent program Process Termination Interface Transactions. See Concurrent Programs.

After the program has finished, view the output report to see a summary of the following:

An example of a row that is processed but generates an error is if the value of AUTO_ACCEPT_YN is set to Y. The quote may be created successfully, but the automatic acceptance may fail.

Obtain Third-Party Approval for Repurchasing Leased Asset

When you have a repurchase agreement, the third party--the source or supplier of the leased asset--has agreed to receive the asset according to agreed-upon terms in the repurchase agreement. The agreed-upon terms can be either an amount or a formula. The remarketer requests a quote for the vendor, and the third party approves the quote.

The repurchasing agreement specifies the price that the third party pays the lessor for repurchasing the asset. The price is either a fixed amount or a formula-based amount.

Note: All amounts specified in a repurchase quote are in the ledger currency.

Prerequisites

Responsibility

Lease Super User, Asset Manager and Remarketer

Navigation

Assets > Tracking > Vendor Quote > Repurchase Assett

Note: You need to have an asset in context in order to access this area.

Steps

No steps are applicable.

Tip: You can optionally edit the Effective To, Comments, Ship To address and phone information.