A.2.58 Passthrough Maintenance

'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.

During the servicing stage of a lease contract, you can maintain and update the vendor passthrough details associated with the contract. Passthrough is available only for Lease Amortized type of contracts. Following types of maintenance are supported:

• Passthrough Definition
• Passthrough Vendor Change

Passthrough Definition - You can add new passthrough fee during servicing stage of a lease contract by posting PASSTHROUGH DEFINITION (PASSTHROUGH_DEFINITION) non-monetary transaction in Customer Service > Maintenance > Transaction Batch Information section. Before posting the transaction ensure that Passthrough is enabled for the fee balance and Recurring fee is already defined on this account. If not, use the 'Periodic Maintenance Fee' transaction to define new recurring 'Periodic Maintenance Fee'.

Table A-162 PASSTHROUGH DEFINITION

Transaction	Parameters
PASSTHROUGH DEFINITION - PASSTHROUGH_DEFINITION	TXN DATE Select the transaction date as the current system date from the adjoining calendar.
	BALANCE TYPE Select the required account balance that is enabled for vendor passthrough from the drop-down list. The list displays all the 'FPMF (Fee Periodic Maintenance Fee)' balances attached to the contract fee type. Note: System displays an error if the 'balance type' selected is not enabled for passthrough or if the 'balance type' selected is already attached to account to calculate passthrough.
	PASS THRU 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 Passthrough and not Partial.
	PASSTHROUGH PERCENT Specify the passthrough percentage to be processed.
	RETAINING BALANCE TYPE Select the lessor retention balance type from the drop-down list. The list displays all the balances attached to the contract for selection.
	ORIGINAL VENDOR NUMBER Select the vendor who is to be associated to the lease contract.
	COMMENTS Additional information (if any).

On posting the transaction, system attaches new passthrough fee and sets the disbursement % to the selected vendor.

Passthrough Vendor Change - You can change the associated 'Vendor' to the lease contract during the servicing stage by posting PASSTHROUGH VENDOR CHANGE (PASSTHROUGH_VENDOR_CHANGE) non-monetary transaction in Customer Service > Maintenance > Transaction Batch Information section. However, note that only one vendor change is allowed in a passthrough fee definition at one time.

Table A-163 PASSTHROUGH DEFINITION

Transaction	Parameters
PASSTHROUGH VENDOR CHANGE - PASSTHROUGH_VENDOR_CHANGE	TXN DATE Select the transaction date as the current system date from the adjoining calendar.
	BALANCE TYPE Select the required account balance that is enabled for vendor passthrough from the drop-down list. The list displays all the 'FPMF (Fee Periodic Maintenance Fee)' balances attached to the contract fee type. Note: System displays an error if the 'balance type' selected is not enabled for passthrough or if the 'balance type' selected is already attached to account to calculate passthrough.
	ORIGINAL VENDOR NUMBER Select the initial/current vendor associated to the lease contract from the drop-down list. Note: System displays an error if the Original Vendor number or Retaining Vendor number does not existing or is not active.
	REPLACEMENT VENDOR Select the new vendor to be associated to the lease contract from the drop-down list.
	COMMENTS Additional information (if any).

On posting the transaction, system updates the new Vendor number to process the passthrough payments.