8.12.13 Passthrough Fees Sub Tab

This topic provides information on the Passthrough Fees section, which records and manages fees that are transferred from the payer to a third party, reflecting direct cost recovery rather than revenue generation.

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 user 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. On the Origination, click Origination. Under Origination, click Funding.
  2. Under Funding, click Funding tab. Under Funding tab, click Contract. Under Contract, click Passthrough Fees.

    The Passthrough Fees screen displays.


    Description of origination_contract_passthroughfees.png follows
    Description of the illustration origination_contract_passthroughfees.png

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

    Table 8-21 Passthrough Fees

    Field Description
    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 Preface.
Passthrough Vendors - to setup passthrough vendors, do the following:
  1. In the Passthrough Vendors section, perform any of the Basic Operations mentioned in Preface.
    A brief description of the fields is given below:

    Table 8-22 Passthrough Vendors

    Field Description
    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: User can define passthrough fee for multiple different vendors.

  2. Perform any of the Basic Actions mentioned in Preface.

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.

Parent topic: Contract Tab