Understanding the Serialized Leasing Feature
The serialized leasing feature lets you easily manage your internal leases. Not only can you bill your lease customers separately from your regular billings, you can also monitor your lease contracts until the buy out is billed.
To use this feature, you set up default terms for your lease contracts in the Contract Types Lease tab. This tab lets you specify default leasing terms, billing frequency, and service amounts. You can also enter the total number of months for the lease and any buy-out options associated with the lease contract type. When you sell a lease contract, the system uses these settings to generate the default contract terms. However, you can override these defaults when you sell the contract. After you sell a lease contract in serialized order entry, the system creates a record showing the contract’s service terms, if any, in the Contract Detail Contract tab. The Contract Detail Lease tab contains the terms of the lease.
You also have the option of selling accessories when you sell the leasing contract. For example, customers who lease copiers may also decide to lease additional serialized items, including feeders and sorters — or lease non-serialized items, such as stands and cabinets. When they do, you place these accessories on the order, along with the machine. After you end the order, the system automatically creates a leasing record for the machine you leased in the Machine Accessories window and lists any accessories in the Contract Detail Lease tab.
You can also specify a buy out option for the lease. For example, if the customer decides to purchase the machine at the end of the lease or at any time during the lease, you can specify how much you want to charge for the machine as either a portion of the selling price, the fair market value of the item, or only $1.00.
In addition to selling regular lease contracts, you can also sell umbrella lease contracts: you cover several machines (or any other type of equipment) with a single leasing contract. Just like regular umbrella service contracts, a leasing contract’s terms apply to all the machines that it covers. For example, you can sell five different machines under one leasing contract. When you sell this type of contract, the system creates an umbrella system record for the contract you lease, while also creating a separate record for each machine you include on the contract. This lets you view information and profitability for the entire contract, or information for each individual machine.
If the machine is covered by a manufacturer’s or dealer’s warranty, you also have the option of setting up a warranty record for the machine(s) you’re leasing. By setting up a warranty record, you can begin tracking the machine from the time you lease it. If you specify to create a warranty record, the system automatically creates a record in the Contract Detail Contract tab and the Contract Detail History tab. If the item includes meters, the system automatically creates a meter record in the Contract Detail Meter tab. Unlike regular contracts, however, you can’t bill or renew machines covered by a warranty record. (For more information concerning warranties, see Understanding Serialized Warranties.)
To help you keep track of the different leasing types, you have the ability to create two contract type descriptions: you can have one contract type description for the service portion of the contract in the Type box in the Contract Types tab, and another for the lease portion of the contract type in the Description box in the Contract Types Lease tab. You can use the Description box in the Contract Types Lease tab to enter any information that helps you identify the lease contract type. When you sell a regular or umbrella lease contract in serialized order entry, the system displays both contract type descriptions.
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