8.12.13 Passthrough Fees Sub Tab

The Passthrough Fees sub tab is available only for Lease Amortized type of contracts and displays what fee instrument are in use, based on the contract. 'Passthrough' in financial term refers to a portion of a payment made to a vendor for specific service. This amount is basically collected by lessor from a lessee and is passed to vendor. For example, maintenance fee paid to a vendor for servicing/maintaining photocopier in corporate office based on a service agreement. Here, the corporate office (lessee) pays to the supplier (lessor) and is transferred to vendor. This section allows you to define Passthrough Fee definition which is used in evergreen lease contracts and consists of the following sub tabs:

• Passthrough Fees
• Passthrough Vendors
• Passthrough Disbursement Information

Passthrough Fees - To setup Passthrough Fees, do the following:

1. Open the Funding screen and load the application you want to work with.
2. Click the Contract > Passthrough Fees sub tab.
   
   

   
   Description of the illustration origination_contract_passthroughfees.png

   
   
3. In the Passthrough Fees section, perform any of the Basic Operations mentioned in Navigation chapter.
   A brief description of the fields is given below:

   Table 8-24 Passthrough Fees

   Field	Do this
   Balance Type	Select the required account balance that is enabled for vendor pass through from the drop-down list. The list displays all the 'FPMF (Fee Periodic Maintenance Fee)' balances attached to the contract fee type.
   Disbursement Type	Select the type of passthrough disbursement type as either Billing date or Full Fee Receipt from the drop-down list. Note: System supports only Full Pass through and not Partial. .
   Passthrough %	Specify the passthrough percentage to be processed.
   Retaining Bal Type	Select the lessor retention balance type from the drop-down list. The list displays all the balances attached to the contract for selection.

4. Perform any of the Basic Actions mentioned in Navigation chapter.

Passthrough Vendors - to setup passthrough vendors, do the following:

1. Click the Contract > Passthrough Fees > Passthrough Vendors sub tab.
2. In the Passthrough Vendors section, perform any of the Basic Operations mentioned in Navigation chapter.
   A brief description of the fields is given below:

   Table 8-25 Passthrough Vendors

   Field	Do this
   Vendor	Select the required vendor from the drop-down list. The list displays all the active vendors maintained in the setup and also validates for the application company i.e. the application company and vendor company has to be the same.
   Disbursement %	Specify the disbursement percentage. This is the percentage of total amount to be disbursed for the selected vendor. This field allows to enter value up to 2 decimals and ensure that it does not exceed 100. Note: You can define passthrough fee for multiple different vendors.

3. Perform any of the Basic Actions mentioned in Navigation chapter.

Passthrough Disbursement Information - On Saving the Passthrough Vendor record, system populates all the information in this section. However, this section provides only VIEW option and if any changes are required, the same has to be done in vendor tab and later click EDIT and SAVE in this section to fetch the latest information.