This chapter covers the following topics:
After creating a lease opportunity, you can create a standard lease sales quote. You create lease sales quotes by selecting specific inventory items, fees, services, and other quote adjustments to reflect the most accurate possible deal. Then you can obtain pricing approvals and indicate prospect acceptance on a lease sales quote.
You create lease sales quotes for pricing based on a configuration. The configuration must include inventory items and item amounts, along with other financed items such as financed fees, capitalized fees, or rollover fees.
Lease sales quotes can also be created by converting estimates in a lease opportunity. You can also duplicate a lease sales quote to create a new one.
The process for creating a lease sales quote is as follows:
Enter Lease Sales Quote Details
Enter Lease Sales Quote Configuration
Enter Pricing Options
Enter Lease Sales Quote Finance Adjustments
View Lease Sales Quote Results
You can define lease quote details not defaulted from a lease opportunity in the Create Lease Quote page. After lease sales quote details have been entered, you have the following three options.
Click Apply to save details and return to the Quotes tab of the Lease Opportunity Details page.
Click Save and Add Details to save details and go to the General tab of the Lease Quote Details page.
Click Cancel to delete your entered details and return to the Quotes tab of the Lease Opportunity Details page.
When saving lease sales quote details, ensure that the Expected Start Date is within the effective dates of the lease opportunity or you will receive an error message to correct this.
The following table describes lease sales quote details.
| Field | Description |
|---|---|
| Valid From | Defaults to current date. Must be on or after the date in the lease opportunity. |
| Valid To | This date is derived from the OKL: Number of Days a Sales Quote Remains Valid profile option. It can be updated. |
| Expected Start Date | Defaults to current date. Must be after the Delivery Date. |
| Expected Delivery Date | Defaults from the lease opportunity. Must be before or on the Valid From date of the lease opportunity, and before or on the Expected Start Date. |
| Expected Funding Date | Defaults from the lease opportunity. Must be before or on the Valid From date of the lease opportunity. |
| Pricing Method | Applies to pricing method for the lease sales quote. For information on pricing methods, see Pricing. |
| Product | List of values with non-reporting type financial products that are active on the expected start date entered. The list is also dependent on eligibility criteria defined on the products. If the vendor program selected on the lease opportunity has associated financial products, the list will reflect only those financial products associated to the program. |
| Term | Term of the contract in whole months. |
| End of Term Option | List of values of the end of term options belonging to the product selected, and active on the start date entered. The list of valid end of term options will also depend on the eligibility criteria values assigned. If the vendor program selected on the lease opportunity has associated end of term options, the list will reflect those associations. |
| Legal Entity | Identifies the first party on the contract. This field is mandatory, if you select Upfront Tax to calculate tax. |
| Tax Stream Type | List of values displaying stream types of the stream generation template associated to the product selected. The value will be used to create fees for any financed upfront taxes. |
| Asset Usage Details (Amount, Category, Industry, Location) | Default in from lease opportunity. Can be updated. |
| Property Tax | Default in from lease opportunity. Can be updated. Data entered is defaulted to each asset created and each asset can be updated. The values are used to determine the processing of property tax changes for the quote assets. |
Note: Oracle Lease and Finance Management derives the legal entity from the program agreement with the vendor for the sales quotes that you create using Vendor Self Service.
Configuration includes entering items to be financed as part of the deal. You can enter asset lines or fee lines for Financed, Capitalized, or Rollover fee types. You can also duplicate configuration lines, except for rollover fee types, to create new lines. To create a new configuration line, you select the line type and click Go.
The following details will be defaulted from the lease opportunity.
Upfront Tax Treatment - includes Bill, Finance, or Capitalize and is for assets only.
Installed Site
Supplier - from Oracle Purchasing suppliers.
You can enter Asset Details, Item, Name, and Cost. Other details default in but can be updated for each asset line in the configuration. Asset Add-Ons can also be included in the configuration, such as Item, Cost, Supplier, and Notes.
You can also enter other financed amounts into the configuration as Financed Fees by entering the fee details. After you enter your configuration asset lines, end of term values are looked up based on the end of term option you selected on the quote details page. If you are authorized for structured pricing privileges, you may update the end of term option values.
The Pricing tab contains the following three main functions.
Entering or selecting pricing options
Entering additional fees and services
Viewing and processing any upfront tax
Once a lease sales quote configuration is created, you can enter pricing details to price the configuration. Pricing details are entered in the Pricing tab. Pricing options include rate cards or standard rate templates. You must select an option or enter manual details based on the pricing method you selected on the Quote Details page. You can either select a standard pricing object or opt to do structured pricing if you are authorized in your user profile settings.
The pricing option selected on the quote applies as a default to all financed items. The list of available pricing options is based on the pricing method, the eligibility criteria for the pricing objects and the quote information available at the time the pricing option is selected.
You can override the pricing object selected at the configuration line level, but the object must be consistent with the quote values, the line values, and the pricing method selected on the quote. If you enter a rate set with levels, the levels will default the structure of the payments. You then enter the remaining pricing details before you can complete pricing. The details you enter will depend on the pricing method you selected.
Once pricing details have been entered, you click Validate to run the validation checklist or Validate and Price to run the validation checklist and immediately calculate pricing. After Lease and Finance Management validates all entered details, pricing results appear in the Results tab page. If validation errors exist, they are displayed in the Validations tab page. If the quote is updated and validated, the old validations are cleared out and the Validation tab is hidden from view. The validation checklist used is based on the QA checklist assigned to your organization unit in the Quoting System Options set up page.
For more information on pricing, see Pricing.
The following table describes pricing methods and options.
| Type | Pricing Option | Financing Cost Adjustment | Additional Inputs |
|---|---|---|---|
| Solve for Payment | Rate Template User Input Rate |
Down Payment Trade In Subsidy |
None |
| Solve for Yield | None | Down Payment Trade In Subsidy |
Number of payments for all levels Amount of payments for all levels |
| Solve for Missing Payment | Rate Template User Input Rate |
Down Payment Trade In Subsidy |
Number of payments for known levels Amount of payments for known levels |
| Target Rate | User Input Rate | Down Payment Trade In Subsidy |
Yield Type Yield Value |
| Rate Card | Rate Card Set | Down Payment Trade In Subsidy (asset cost or fixed type only) |
You enter a rate to match rate card sets |
| Solve for Financed Amount | Rate Template User Input Rate |
Down Payment Trade In Subsidy (rate or fixed type only) |
Number of payments for all levels Amount of payments for all levels |
| Solve for a Subsidy | Rate Template User Input Rate |
Down Payment Trade In |
Number of payments for all levels Amount of payments for all levels |
| Solve for Down Payment | Rate Template User Input Rate |
Trade In Subsidy |
Number of payments for all levels Amount of payments for all levels |
| Solve for Trade In Amount | Rate Template User Input Rate |
Down Payment Subsidy |
Number of payments for all levels Amount of payments for all levels |
You can also select pricing options at the asset level. The following table describes pricing options at the contract and asset levels.
| Pricing Method | Quote Level | Asset Level |
|---|---|---|
| Solve for Payment | You can select a rate template or enter a rate for the quote. Each configuration line should be solved for a payment based on the defined quote level interest rate. You may only enter a rate if you are authorized for structured pricing. | You can select a rate template or enter a rate for a configuration line. The rate defined for that line is used to determine the payment for the line. All other lines use the rate template or rate defined for the quote. |
| Solve for Yield | Enter one payment that applies to all assets. Once the quote level interest rate is calculated, the total payment is distributed to each line in the configuration based on the interest rate. | You can define a payment for an individual configuration line and a quote level payment that applies to the remaining configuration lines with no separate payments. All payments are used together to determine the quote level interest rate. The quote level interest rate is applied to the configuration lines with no separate payments defined to distribute the quote level payments down to each configuration line. |
| Target Rate | You can only target yield at the contract level. | No asset level yields are available. |
| Rate Card | You select a rate card for a contract and all rates are looked up on that rate card. If you are authorized for structured pricing, you can enter a quote level lease rate factor. | You can select a rate card for an individual configuration line and rates are looked up for that line from the card. If you are authorized for structured pricing, you can enter a lease rate factor. |
| Solve for Missing Payment | You select or enter rates and payments for the quote. At least one payment must be left blank. The missing payment is calculated. Based on the selected or entered rate, the payments are distributed to the individual configuration lines. | You can enter payments for individual configuration lines. You then enter or select a rate for the configuration line. You can only put in a rate if at least one payment is missing for an individual line. If you enter payments for a line, you must also enter the payments for the line. At least one line must have an empty row. Rates are blended across all assets Lines with no separate payments and rates are treated as one line. |
| Solve for Subsidy | You select or enter a rate and enter payments for the quote. The amount of the subsidy is determined. Based on the quote level rate, payments are distributed to the asset lines. Subsidies do not apply to configuration fees. |
You can select or enter a rate for individual assets, but the subsidy amount is solved for the quote. Rates are blended to determine the quote subsidy amount. You may also enter separate payments for an asset. Lines that do not have a separate payment must have the quote level payment distributed to them based on the quote level rate entered or selected. |
| Solve for Down Payment | You select or enter a rate and enter payments for the quote. The amount of the down payment is determined. Down payments do not apply to configuration fees |
You can select or enter a rate for individual assets, but the down payment amount is solved for the quote. Rates are blended to determine the quote down payment amount. You can also enter separate payments for a line. Lines that do not have a separate payment must have the quote level payment distributed to them based on the quote level rate entered or selected. |
| Solve for Trade In | You select or enter a rate and enter payments for the quote. The amount of the trade in is determined Trade Ins do not apply to configuration fees. |
You can select or enter a rate for individual assets, but the trade in amount is solved for the quote. Rates are blended to determine the quote trade in amount. You can also enter separate payments for a line. Lines that do not have a separate payment must have the quote level payment distributed to them based on the quote level rate entered or selected. |
| Solve for Financed Amount | You select or enter a rate and payments for the quote. You indicate for each asset created the percent of the total cost for that asset. Total percent for all assets must equal 100%. Financed amount can only include asset lines, not configuration fees |
You can select or enter a rate for individual assets and an asset cost for some, but not all assets. You must spread the amount over the assets with no specified cost by proportioning 100% over the assets. The total financed amount is solved for the entire quote. This amount represents the financed amount of the assets with no cost already specified. The amount is distributed to those assets based on the percent distribution specified. If you select individual assets and enter an amount for the asset, you cannot also enter a percentage for that asset. |
Once pricing details have been entered, and the quote has been priced, the results provided depend on the pricing method. Pricing results are displayed in the Results tab. Along with providing a set of yields, Lease and Finance Management will display specific results for each differing pricing method. The following table shows pricing results for the different pricing methods.
| Type | Result |
|---|---|
| Solve for Payment | Payment amount per period |
| Solve for Yield | No additional details other than yields |
| Solve for Missing Payment | Missing payment amount for designated payment step |
| Target Rate | Payment amount per period |
| Rate Card | Payment amount per period |
| Solve for Financed Amount | Financed amount gross of adjustments |
| Solve for Subsidy | Total subsidy amount |
You can add additional fees and services in the Pricing tab. These fees and services are not financed. The fees and services can also be updated or deleted. For more information about fees, see Fees.
You can view and process any applicable upfront tax. Click Calculate Tax to request a tax lookup. Results are grouped by asset. If you indicated that the tax should be financed, a new fee will be created for the tax amount and you must enter a payment for it. The stream type of the new fee will be derived from the stream type you identified in the lease opportunity details.
Lease sales quotes have three types of financing cost adjustments: Subsidy, Trade In, and Down Payment. Before making a financing cost adjustment, you must have created at least one asset on the quote. A given asset can be associated to an adjustment only once. You can create only one Trade In or Down Payment adjustment line per quote.
The Adjustments tab page shows financing cost adjustment summaries. You can create, update, or delete adjustments on a quote as long as the quote status is not Pricing Approved or Pricing Complete. When you create an adjustment on a priced quote, the pricing results are deleted and the quote reverts back to an Incomplete status. You must reprice the quote for the new financing total.
In order to add subsidies to a quote, you must first set up subsidies in the Marketing tab. To create a Subsidy adjustment for a quote, select Subsidy as the Adjustment Type and click Go. On the Create Subsidy Adjustment page, you select the subsidy you want to apply from the list of values, then choose the assets to which the subsidy applies. Only assets meeting the subsidy's criteria will be available.
If you update a subsidy, all rows in the subsidized assets will be deleted. You need to reselect assets to ensure the assets match the new subsidy criteria. The Subsidy Amount is displayed as soon as the subsidy is selected for fixed and cost based subsidies. For rate-based subsidies, the Subsidy Amount is only displayed after pricing since the amount is based on payments calculated.
You cannot apply the same subsidy to a given asset more than once.
To create a Trade In adjustment, select Trade In as the Adjustment Type and click Go. On the Trade In Adjustment page, enter trade in details and select the assets to which the trade in applies. The trade in date is the associated line start date.
The Basis selected determines how the amount is determined. Following are the possible values for Basis.
Percentage of Asset Cost - the amount entered is a percentage of the total asset cost. The value cannot exceed 100%.
Fixed - the amount entered is the exact value of the trade-in adjustment. The amount cannot exceed the value of the total asset cost of the associated assets.
Click Quick Apply to associate all assets to the trade-in adjustment and distribute the amount based on asset cost. You can only create one trade-in adjustment per asset.
Note: You cannot enter a trade in adjustment if the pricing method used is Solve for Trade In.
To create a Down Payment adjustment, select Down Payment as the Adjustment Type and click Go. On the Down Payment Adjustment page, enter down payment details and select assets to which the down payment applies. The Basis selected determines how the amount is determined. Following are the values for Basis.
Percentage of Asset Cost - the amount entered is a percentage of the total asset cost. The value cannot exceed 100%.
Fixed - the amount entered is the exact value of the adjustment. The amount cannot exceed the value of the total asset cost of the associated assets.
Click Quick Apply to associate all assets to the adjustment and distribute the amount based on asset cost. You can only create one down payment adjustment per asset.
The Amount field represents the per asset adjustment amount. The sum of this column must equal the overall down payment amount entered in the down payment details section.
Note: You cannot enter a down payment adjustment if the pricing method used is Solve for Down Payment.
Lease sales quote details can be updated if the quote is not accepted. If you update any items on the quote that effect the pricing, Lease and Finance Management provides you with a warning that your updates will result in the quote status reverting to Incomplete. Incomplete lease sales quotes must be approved before they can be accepted.
If the lease sales quote is used to submit a lease application for credit approval, the quote will be updated with the lease application number and status.
The Quote Number, Quote Template Number, and Expected Start Date fields cannot be updated.
After a lease sales quote has been priced and the status is Complete, you submit the quote for pricing approval before it can be accepted. A configurable approval workflow is launched and enabled for the Oracle Approval Manager.
Once a lease sales quote is submitted for Approval and the workflow is launched, the approver can approve the quote pricing. The status of the lease sales quote will be updated to Approved.
Approved lease sales quotes can still be updated. If they are updated, you will receive a warning that the quote status will revert to Incomplete. Incomplete quotes must be repriced before they can be approved.
Once a lease sales quote is in Approved status, you can accept the quote. This indicates that the customer or prospect has accepted the quote. When a lease sales quote is in Accepted status, it cannot be updated.
To update an accepted quote, you must first Unaccept it. Select the Unaccept icon for the quote to revert to a status of Approved, then proceed with your update.
After you create a pricing estimate on a lease opportunity, using estimated values and inventory categories, you can follow the conversion process to turn the estimate into a standard lease sales quote. The process enables you to distribute estimated amounts over more specific asset and fee quote lines, or specify details for adjustments such as subsidies. You can create multiple quotes from the same estimate. All details entered for an estimate are defaulted to the lease sales quote.
After conversion, the lease sales quote will be displayed in the General tab. You can update the lease sales quote, but it must be priced again and approved before it can be accepted.
To begin the conversion process, select the estimate to be converted in the Estimates tab of the Lease Opportunity Details page. The conversion process contains the following steps.
Enter Quote Details
Enter Configurations Details
Enter Adjustment Details
Enter Additional Fees and Services
All data from your estimate will default into the new lease sales quote. Defaulted data can be updated. Enter new quote details and proceed to configuration.
For configuration, you can create one or more asset lines from each estimate category. Select an Inventory Item and enter an amount. You cannot enter asset details during the conversion process.
If your estimate contains adjustments, you can specify adjustment details. Instructions for the three types of adjustments are as follows.
Subsidy- Select one or more subsidies and distribute the subsidy estimate amount over the selected subsidies. Associate the subsidies to any assets in the configuration. Once a subsidy is calculated, the both the calculated amount and the estimated amount will be displayed.
Down Payment- Associate assets to the down payment.
Trade In- Associate assets to the trade in.
If your estimate contains additional fees and services, you can specify the fee and service details. The following table describes this process by fee and service type.
| Type | Description |
|---|---|
| Expense | You can select stream types for the stream purpose Expense. You can select the fee types Expensed or Absorbed. The amount of the estimated fee defaults in and you can associate assets and a supplier to the fee. |
| Fees | You can select the fee types Miscellaneous or Income. The amount of the fee payment defaults in and can be associated to assets. You can select stream types with the stream purpose Fee Payment. |
| Insurance | You can convert the insurance estimate to the lease sales quote estimated insurance line. |
| Services | The payment defaults in as a service payment and you can select a stream type with the stream purpose of Service Payment. You can select service items associated with the service estimate. To associate any expense or supplier to the service, you must update the service details from the appropriate quote page after conversion. |
| Usage | You can select a stream type with the stream purpose Usage and convert the usage estimate to a usage line. Select the usage line to enter usage payment details. |