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

This chapter covers the following topics:

Overview

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.

Asset Returns

In the Asset Returns area, you can maintain the information for your off-lease assets, such as:

Oracle Lease and Finance Management automatically creates an asset return request by way of these three sources:

Under the following situation, you must manually create an asset return request:

The main topics in this section are:

Maintain Asset Return Request

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

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:

Prerequisites

None

Steps

Perform the following steps using the Asset Return Request page:

  1. Click Create.

    The Create Asset Return Request page opens.

  2. 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.

  3. 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.

  4. Select a status for the asset return of either Returned or Scheduled.

  5. In the following date fields, click the Calendar icon and choose the dates for:

  6. 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.

  7. 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.

Search for an Asset Return Request

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:

Prerequisites

Either you have manually created or the system has automatically created the Asset Return request. See Create a Manual Asset Return Request.

Steps

Perform the following steps:

  1. In the Search area of the Asset Return Request page, specify one or more search criteria to locate the asset:

  2. 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.

  3. Under the Asset Number column, click the asset's number to view more information about the asset.

Update Asset Return Status

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.

Prerequisites

Either you have manually created or the system has automatically created the Asset Return request. See Create a Manual Asset Return Request.

Steps

Perform the following steps:

  1. Query for the applicable asset number.

  2. Click the Asset Number hypertext link. The Asset Return Request details page opens.

  3. Click Update.

  4. 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.

  5. Enter a new location to indicate change of location for the asset.

  6. Click Apply to save your changes.

Specify Inventory Details

Perform the following steps to record inventory details:

  1. In the applicable Asset Return Request details page, click the Assets subtab.

  2. Click Update. The Update Asset Information page opens.

  3. Select the applicable inventory status.

  4. Enter the inventory item number and a description.

  5. Specify or change the price of the returned asset.

  6. Select the Like Kind Exchange check box if you are subjecting this returned to a like-kind exchange tax option.

  7. Click Apply.

Specify Shipping Instructions

You can provide the lessee instructions for:

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.

Prerequisites

You have created the asset return and placed the asset into context. See Search for a Returned Asset Request.

Steps

Perform the following steps:

  1. 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.

  2. Click the Shipping Instructions subtab in the applicable Asset Return Request details page.

  3. 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.

  4. Select the Transportation Option Accepted to accept the lessor's transportation option for return of asset.

  5. In the Instructions field, enter any specific details for asset return instructions.

  6. In the Contact Details area, complete:

  7. In the Shipping Address area, complete:

  8. Click Apply.

Specify Asset Return Fees

Use this procedure to record costs associated with the returning of assets and the disposal process. You can use this information for subsequent analysis.

Prerequisites

You have created the asset return and placed the asset into context. See Search for a Returned Asset Request.

Steps

Perform the following steps:

  1. 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.

  2. Click the Notes subtab in the applicable Asset Return Request details page.

  3. Click Create to create the following fee types in the Create Fees page:

  4. In the Comments field, enter any text that you need about the fee.

  5. In the Amount field, enter the fee amount.

    Note: The fee amount is in the ledger currency.

  6. To remove any fees, select the check box on the row of the fee that you want to remove.

  7. Click Apply.