Lease Residual Maintenance

A.1.40 Lease Residual Maintenance

When a contract is in Evergreen Lease terms and if the 'Auto Post and Renew' option enabled in Contract setup screen Evergreen Details section , system allows to renew the contract automatically for specific terms without any intervention. During renewal, the asset value is reduced based on the percentage indicated in Residual Reduction %.

The Residual Reduction % can further be updated during the serving stage of an account by posting LEASE RESIDUAL MAINTENANCE (LS_RESIDUAL_MAINT) monetary transaction in Customer Service > Maintenance > Transaction Batch Information section.

Note:

This transaction can be posted to only reduce and not to increase the residual value of the asset.

Table A-72 To adjust the Residual Percent

Transaction	Parameters
RESIDUAL MAINTENANCE (LS_RESIDUAL_MAINT)	TXN DATE Select the transaction date from the adjoining calendar.
RESIDUAL PERCENT Specify a percentage value to indicate how much residual value has to be reduced while posting Evergreen transaction. You can specify numerical value up to 2 decimal with minimum as zero and maximum of 100.
COMMENT Additional information, if any.

Transaction

Parameters

RESIDUAL MAINTENANCE (LS_RESIDUAL_MAINT)

TXN DATE

Select the transaction date from the adjoining calendar.

RESIDUAL PERCENT

Specify a percentage value to indicate how much residual value has to be reduced while posting Evergreen transaction. You can specify numerical value up to 2 decimal with minimum as zero and maximum of 100.

COMMENT

Additional information, if any.

On successfully posting the transaction, the Residual value is reduced and there is no impact on repayment schedule or amortization schedule of the lease account.