Before entering any lease agreements, you must have created the relevant Entity, Counterparty, Portfolio, Cost Center, Bank Accounts and Lease Types to proceed with creating Lease Agreements.
New lease agreements can be imported via excel, created manually, or by copying an existing one and changing the needed information.
Excel import for guarantees
Click the first ‘Import tab’ in the guarantee register page. Following this step, from the ‘Download sample’, you can get the import excel template that you can use for the import.
If you have an agreement without an end date and you want to import the agreement using excel, please note that xcel import requires an end date. You need to put a date there, and following the import go into that agreement and click "No end date"-tab active.
You can bring 50 lease agreements at once. Check that the date formats are correct:yyyy-mm-dd. The Account column means the bank account, so put there the bank account name that should be applied. All guarantees will be imported with the Status of "Issued", in the order of the numbers that come into the reporting. You can change it if this is something that you don't want.
Once you have filled in all your guarantees and saved the file into your computer, you need to check the file for readability; then click import.
Guarantees will come with Fixed fee rate active from import. If you want to also manage the agreement fee payments in the system and you have an agreement where the fee can change during agreement period you just need to de-activate the Fixed fee tab and and an additional Fee table opens up into the agreement where you can manage fee rates during agreement period.
CREATING AGREEMENTS MANUALLY
Click on (1) Guarantees > Register.
Click (2) 'Add new'.
1) Choose a Guarantee type from the drop down list. (Guarantee type created in Guarantees > Guarantee type)
2) Choose an Applicant from the drop down list. (Applicant created in Settings > Companies (Must be Internal (i.e. not External) and Counterparty)
3) Choose a Guarantor from the drop down list. (Guarantor created in Settings > Companies - must have Counterparty ticked when creating)
4) Enter a Beneficiary name.
5) Choose a Portfolio from the drop down list. (Portfolio created in ‘Settings > Portfolios’)
6) Choose a Cost Center from the drop down list. (Cost center created in Settings > Cost centers)
7) Enter the Project Name, if needed.
8) Choose the Status drop down menu. Status "Issued" is the only status that brings the numbers into the reporting. Forecasted, Submitted and Approved are used in the guarantee workflow if you want to manage your agreement workflow.
9) Enter the Reference Internal, if needed.
10) Enter the Reference External, if needed.
11) Enter the guarantee Amount.
Choose the Currency (CCY) from the drop down menu.
Choose the account that is receiving the transaction from the → ACCOUNT dropdown menu.
12) Choose the End date from the calendar.
WP amount, WP type and WP start date are not currently used in the reporting, so you can leave those unticked.
13) Choose Act/360, Act/365, 30/360, 30/365 or Act/Act from the drop down menu, if you will create a payment flow for the agreement. The system will calculate the fee using the interest rate set for this agreement and with this "Day count convention".
14) Fixed fee. If you want to also manage the fee payments in the system and there can be only one fixed rate for the fees then activate this. If you dont activate this then after save a fee table opens up into the agreement where you can manage fee rates during agreement period.
If there is no "End date" in the agreement, choose "No end date" as active.
Loan guarantee (attach Loan) and Open claim are currently not supported.
In the Terms of Conditions section, you can add free text.
GUARANTEE FLOWS
If you want to keep track of the fee payments out of this agreement, you can use guarantee flows for this. Fee is calculated either from fixed fee box or from fee table view.
Start by choosing "Payment schedule".Further explanations in the lines below:
Calculation start date - this is where you define the first start date for the fee period. The system will enable the Start date automatically.
End date of first interest calculation period - this is where you define on which day the first fee period ends.
Fee payments - In this dropdown you can choose the fee payment method after the first fee period (start - end date).
Fee payment day - This is the actual payment day of the fee.
Fee payment month - this is where you need to specify the fee payment day on and select it to be the Same month as the end of date of the fee period or Next month (+1M) or Two month later (+2M).
Please also remember to check after the creation of the last fee period. If the period is not completely specified, the system will not calculate a fee for it automatically. Then, you need to go into the final payment and add the fee calculation days into the last fee period.
Calculation end date - This is the date when the system ends fee payments.
Clear all, modify payments and creation of single payment
If you are not happy with the result then you can clear all and redo the flow to get it correct.
Following the creation, you can modify the payments from "edit" (pen icon) and then change, for example, the payment amount. You can also create single interest payments or capital payments by clicking "New payment".
AUDIT TRAIL
In the audit trail you can view on a very detailed level all the changes made into the agreement.
ATTACHMENTS
This is where you can save documents in excel, pdf, jpg, jpeg and png upto 5mb. Characters a-z A-Z 1-9 or - _ are only allowed in attachment file names.
LIABILITY
Under the liability sheet you can give the guarantee different types of liability characters. There are 10 types of characters to choose from. These are not linked to any reporting, but you can just specify these items under the liability sheet.
Usually, Archived and Excluded from Accounting and Reporting will both be unselected. Tick both boxes if you would like to move a lease to archive before maturity, and you don't want it to appear in your reports or accounting.
After you have given these basic information you can save this agreement, and click "Add new".