This chapter covers the following topics:
The Asset Return to Disposal process covers record keeping of returned assets, handling amortization and writedowns, evaluating the condition of an asset, determining what you want to do with the asset, and deploying your end-of-term strategies.
In the Asset Returns area, you can maintain the information for your off-lease assets, such as:
Maintaining the asset status to help you track where your asset is in the asset return process. When you specify some asset statuses, you may trigger some processes to take place that update the asset for other stages in the asset return process.
Maintaining the asset return type, which identifies the source of a return request.
Specifying the asset location to track where your asset is.
Specifying the shipping instructions to agree upon transportation arrangements.
Specifying the asset return fees to record costs associated with the returning of assets and the disposal process.
Specifying that the asset is subject to like-kind exchange.
Note: All quotes, costs, fees and prices associated with off-lease asset processing are in the ledger currency.
Oracle Lease and Finance Management automatically creates an asset return request by way of these three sources:
Acceptance of a termination quote without purchase.
Repossession of the asset. This sets the Asset Status to Scheduled and the Asset Return Type to Repossession Request. For asset repossessions, this process must happen before other repossession-related activities, such as the Repossession Request or Unsuccessful Repossession.
Ending of contract term without exercising the purchase option. This sets the Asset Status to Scheduled and the Asset Return Type to Contract Expiration upon termination of a contract.
Under the following situation, you must manually create an asset return request:
The lessor initiates a request to return the leased asset. This sets the Asset Status to Returned and the Asset Return Type to Intent to Return.
The main topics in this section are:
Maintain Asset Return Request
Specify Asset Location
Specify Shipping Instructions
Specify Asset Return Fees
As a returned off-lease asset undergoes various stages of examination and evaluation, you should maintain the asset return information. Oracle Lease and Finance Management automatically generates an asset return request under certain conditions, but in other conditions, you have to manually create an asset return request. See Asset Returns.
The topics in this section include:
Create a Manual Asset Return Request
Search for a Returned Asset Request
Update Asset Return Status
When your customer makes a request to return an asset before the contract's specified end-of-term, you must manually create an asset return request. You do not manually create an asset return request for assets that have reached their end-of-term because Oracle Lease and Finance Management automatically generates those asset return requests upon contract expiration.
When you create an asset return request, you specify:
A return type for the asset. Return types include: Contract Expiration, Repossession Request, Executed Termination Quote, and Intent to Return.
The status of the returned asset. Statuses include: Returned, Scrapped, Repossessed, and Available for Sale.
Relevant dates, such as Date Return Due, Date Returned, and Date Notified.
The Remarketer involved with remarketing the returned asset. Assignment of a returned asset goes to a remarketer, who:
Is part of the group assigned to managing remarketing for the asset based on the asset's item category.
Is responsible for the asset until disposal.
Optional notes or comments.
Like-Kind Exchange information to link to the Period Open to Period Close process; select this option before you make an asset available for sale and if you are transferring the tax properties to new, leased asset.
None
Perform the following steps using the Asset Return Request page:
Click Create.
The Create Asset Return Request page opens.
Select the operating unit.
Note: The list of values includes operating units assigned to the MO: Security profile.
Note: 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.
The selected operating unit restricts the valid list of values in applicable fields.
Select the asset number for which you want to create the return request.
The associated contract number, currency, description, and contract end date appear with the chosen asset number on the Create Asset Return Request page.
Select a status for the asset return of either Returned or Scheduled.
In the following date fields, click the Calendar icon and choose the dates for:
Date Return Due: The date by which you expect to receive the asset. (Required)
Date Notified: The date by which you notified the lessee to return the asset.
Date Returned: The date you received the asset.
Date Title Returned: The date that you formally received title for the asset.
Select the remarketer for the applicable asset.
Only the remarketers who are associated with the asset's item category appear in the list of values.
Click Save and Continue to add applicable details. Otherwise, click Apply to create an asset return request and add details later.
To locate a returned asset request and put it into context for updating, see Search for a Returned Asset Request
To maintain or update information about a returned asset during the return and remarketing process, see Update Asset Return Status.
Use this procedure to locate the asset return request of the off-lease returned asset. You can search for both automatically generated asset return requests and manually created asset return requests. You need to search for and select a returned asset to:
Put the returned asset into context so that you can update the asset's status, dates, location, and condition, for example.
View information about the asset, such as contract number, contract status, asset status, start date, end date, asset type, original cost, serial number, in service date, manufacturer's name, model number, and depreciation information. Depreciation information may include life in months, new or used, salvage value, depreciation category, and depreciation start date.
Either you have manually created or the system has automatically created the Asset Return request. See Create a Manual Asset Return Request.
Perform the following steps:
In the Search area of the Asset Return Request page, specify one or more search criteria to locate the asset:
Asset Number: Enter partial or full search criteria.
Asset Description: Enter partial or full search criteria.
Contract Number: Enter partial or full search criteria.
Return Status: Select one of the asset return statuses, such as Available for Sale, returned, or Scrapped.
Remarketer: Enter search criteria, click Go, and choose a specific remarketer.
Customer Name: Enter partial or full search criteria.
Note: You can perform a more advanced search by clicking the Advanced Search button. In addition to the search criteria in the basic or "simple" search, the Advanced Search lets you specify Date Notified, and Date Returned criteria.
Click Go to perform the search.
Under the Results area, matching asset returns appear. The Results area shows you the asset number, asset description, date return due, return status, remarketer, return, and condition information.
Under the Asset Number column, click the asset's number to view more information about the asset.
Use this procedure to locate and update a returned asset's status. Information that you can update include specifying that the asset is available for sale, returned, repurchased, or scrapped, for example.
If you change an Asset Status to Cancelled, it is not possible to update the Asset Status to any other option.
Important: If you want to change an asset's price or description for the item in inventory, then do that before you set the Status field to Available for Sale. When you indicate that an asset is Available for Sale in the Status field, the Inventory program assigns an inventory item number to the asset, and you can no longer change either the price or the description in Oracle Lease and Finance Management. You must complete any changes in the relevant module, such as Oracle Inventory for the description and Oracle Pricing for the change in price.
Either you have manually created or the system has automatically created the Asset Return request. See Create a Manual Asset Return Request.
Perform the following steps:
Query for the applicable asset number.
Click the Asset Number hypertext link. The Asset Return Request details page opens.
Click Update.
Enter the repossession details.
Important: Do not complete the fields in the Repossession area if those fields are blank. If the Repossession area fields are blank, then ignore them. The Repossession fields contain data only if the Collections module has processed the returned asset. The rules for Collections automatically determine the Date Required and Date Hold Until fields. You can change the Repossession area fields only if Collections had already populated these fields.
Enter a new location to indicate change of location for the asset.
Click Apply to save your changes.
Perform the following steps to record inventory details:
In the applicable Asset Return Request details page, click the Assets subtab.
Click Update. The Update Asset Information page opens.
Select the applicable inventory status.
Enter the inventory item number and a description.
Specify or change the price of the returned asset.
Select the Like Kind Exchange check box if you are subjecting this returned to a like-kind exchange tax option.
Click Apply.
You can provide the lessee instructions for:
Returning the off-lease asset.
When a third party is purchasing an off-lease asset. The shipping instructions inform the lessee to return the asset to the third party.
To send shipping instructions to the lessee through an email or other document, you must set up the Oracle XML Publisher and XML Delivery Manager modules. See Set up XML Publisher in the Oracle Lease and Finance Management Implementation Guide.
You have created the asset return and placed the asset into context. See Search for a Returned Asset Request.
Perform the following steps:
In the Asset Return and Asset Number fields, verify that the correct asset is in context by clicking the hypertext links.
If you need to locate the asset to put it into context, see Search for a Returned Asset Request.
Click the Shipping Instructions subtab in the applicable Asset Return Request details page.
Click Update in the applicable Asset Return Request details page. The Update Asset Return page opens.
A contract formula automatically calculates the Asset Value For Insurance field. The Date Instructions Sent field is the date you sent the shipping instructions. The system automatically updates this value.
Select the Transportation Option Accepted to accept the lessor's transportation option for return of asset.
In the Instructions field, enter any specific details for asset return instructions.
In the Contact Details area, complete:
Party Name: Enter partial or full search criteria; click Go; click the party name.
Contact Name: Enter partial or full search criteria; click Go; click the contact name.
Contact Method: Enter partial or full search criteria; click Go; click the contact method.
In the Shipping Address area, complete:
Ship To Party: Enter partial or full search criteria; click Go; click the ship to party's name.
Click Apply.
Use this procedure to record costs associated with the returning of assets and the disposal process. You can use this information for subsequent analysis.
You have created the asset return and placed the asset into context. See Search for a Returned Asset Request.
Perform the following steps:
In the Asset Return and Asset Number fields, verify that the correct asset is in context by clicking the hypertext links.
If you need to locate the asset to put it into context, see Search for a Returned Asset Request.
Click the Notes subtab in the applicable Asset Return Request details page.
Click Create to create the following fee types in the Create Fees page:
Auction Fee
Marketing Fee
Miscellaneous Fee
Repossession Fee
Scrapping Fee
Shipping Fee
In the Comments field, enter any text that you need about the fee.
In the Amount field, enter the fee amount.
Note: The fee amount is in the ledger currency.
To remove any fees, select the check box on the row of the fee that you want to remove.
Click Apply.