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A leasing company buys an item for immediate sale. It is therefore a purchase relationship between the leasing company and the customer (it is not pure financing as in the case of a loan).
Then the selling price of the item is determined (explanation below), which is invoiced to the customer after the contract is activated. The sales price invoice has a deferred due date.
The selling price is determined as the sum of the principal (financed value) and interest payments for the given duration of the contract, then VAT is added to this price according to the applicable legislation.
The customer then repays the receivable to the leasing company in agreed instalments.
From the nature or calculation of the selling price, several conclusions will emerge that have a major impact on the administration of the contract:
Interest is calculated and included in the sales price in advance, i.e. I do not recommend changing the duration of the contract, the periodicity of repayment, etc., because it is not possible to apply these changes to an already posted sales invoice.
Cancellation of a sales invoice is legally possible only when withdrawing from a purchase contract, or if the item has defects or does not meet the expected and agreed parameters. These processes are very difficult to solve and leasing companies usually solve them through special agreements. For this reason, OC does not allow you to cancel a sales invoice.
In the case of an instalment sale, the leasing company is not the owner, not the operator, of the asset. Conclusions:
The contract is usually secured by a backup right to the object or a special contract on the transfer of ownership.
From an insurance point of view, individual insurance with a pledge in favour of the leasing company is recommended.
Insurance in instalments is also possible, but the so-called mediated insurance (instalments without VAT) is recommended. The reason for this is that the payment schedule in the case of instalment sale is not recognized as an invoice (tax document) – it is an invoice for the sale of an object with immediate VAT deduction on the part of the buyer. If the insurance is free of VAT (exempt), the leasing company can include it in the payment schedule, there is no need to send installment invoices. If there was insurance with VAT (i.e. collective insurance), the leasing company should issue and send invoices with VAT for insurance premiums for each payment period.
If When creating a payment calendar is created before activating the contract is activated, or if a some field is created during the contract activation of a contract (posting a sales invoice) of the financing type Instalment Saleinstallment sale, the system will use uses the activation wizard (see PD description Contract Changes for description) to copy writes the data to the Payment Instalment Sales tab.
Field: (all fields are non-editable)
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