6.3.2 Lease Usage Rental Calculation

This topic provides information on the calculation of lease usage rentals based on asset usage parameters, billing rules, and applicable lease terms.

Whenever customer sends asset + usage details to OFSLL, the details are categorized to applicable rate slabs. Depending on the Charge Matrix, the rental + usage fee (if applicable) is calculated and charged on to the account. The same is communicated to the customer through account statement.

Following is an illustration on how system calculates non-tiered Rental bill.

The Rental matrix is as defined below:

Table 6-1 Rental matrix

Cycle	Base Rental Cycle From	Base Rental Charge per cycle	Discount % per Cycle	Discount Amount per Cycle
Weekly	1	50	1	10
Weekly	5	10	2	12
Monthly	1	200	4	15
Monthly	5	150	5	18

If only Cycle From is defined and Cycle To is not specified, then range is considered up to an infinite value or till the next defined cycle. Here the range for weekly cycle is between 1-5.

For Rental Amount, system will calculate the both Discount Amount and Discount % and deduct the minimum of these two values from the rental amount per cycle.

The calculation is as follows:

Table 6-2 Calculation

Account Cycle	Account Term	Calculation Rental Amount per Cycle	Calculation After Discount
Monthly	3	200	200 minus (Minimum of (4% of 200 = 8) or 15) = 192
Monthly	5	150	150 minus (Minimum of (5% of 150 = 10) or 18) = 194
Weekly	2	50	50 minus (Minimum of (1% of 50 = 0.5) or 10) = 49.5

Note the following:

• After calculating the lease rental fee, if there are any rental adjustments or charge which needs to be posted to the account balances (Contract setup, click Balances sub tab), user can post the lease monetary transactions as detailed in Lease Rental/Damage Fee Adjustments section in Servicing User Guide.
• User can simulate Lease Rental / Usage Rental calculation using Scenario Analysis screen before posting it into the system. There is also a Rental Calculator provided to derive the usage/rental amount.
• The calculated chargeable rental and usage fee are displayed in Customer Service, click Collateral. Under Collateral, click Usage Summary screen and is posted on the account only after executing the batch job TXNUSG_BJ_100_01 (USAGE CHARGE PROCESSING) in SET-TPE job set.
• After billing is processed, if there is an amount still owed on lease account, user can post payoff quote during the life of a Rental/Usage Rental Lease based on specific conditions. For more information, refer to Payoff Quotes monetary transaction section in Servicing User Guide.