By technical evaluation we mean the additional installation of other accessories of the financed object. These additional accessories can be financed by the customer (typically for financial leasing or credit) or by a leasing company (typically operating or financial leasing).
Technical improvement can be financed by the customer or by the leasing company:
If the technical improvement is financed by the customer, the leasing company only grants consent to the execution or asks for inclusion in the insurance (accident insurance). We will not describe this case further.
If the technical improvement is financed by a leasing company, this technical improvement enters into the financing (annuity) and accident insurance at the moment of execution, i.e. the payment is changed. The process is described below.
With this method, the depreciation of the object may also change, depending on the value, the processes of the leasing company, and all this with regard to the accounting regulations of the given country.
Technical improvement with financing can be carried out in two ways:
without generating a purchase order for an equipment item. In this case, the user directly launches the wizard for technical evaluation, the technical evaluation item will then be added to the additional equipment of the item directly by the wizard.
with generating a purchase order and then running the wizard for technical evaluation
With the help of this Technical Evaluation Wizard, it is possible to carry out a technical evaluation of the subject matter of a financing contract, with or without financing.
Ordering equipment for the technical evaluation
This chapter applies only to contracts with Financing with services=YES (i.e. for operational leasing with services) when the object or additional equipment of the object is ordered by the leasing company. In the case of a technical evaluation and if we want to generate an order for a given technical evaluation, it is necessary to insert this technical evaluation into the additional equipment of the item. It is then possible to generate a purchase order on it (description Object Purchase Orders). And upon receipt of the invoice, make the actual change (technical evaluation) to the contract.
A brief description of adding additional equipment:
If Change via Change Copy is set in the Detailed Status, the Change Contract Wizard with Change Type – Object Change will start:
Then, on the change copy or variant, open the Financed Object card, then Object Component/Price and Equipment.
Then use the Additional Equipment button to open the Additional Equipment overview of the item. Creates a new row in the report by entering the necessary data one by one.
On the new line, the system has set the non-editable flags Technical Evaluation = Yes and Include in Financing = No, because Technical Evaluation is performed if the contract status is Active.
When the loadout is complete, the list closes and returns to the Item Prices form:
On the Financed Object Prices page, press the Finish. The prices on the Additional Equipment tab and the Recap tab will not change, as the device is not yet included in the financing.
The system closes the form (tab).
Then the user transfers the change copy/variant.
After transferring the change copy, it is possible to create an order (for a detailed description see Object Purchase Orders). An order can also be created for a vendor identical to the vendor of the item. This is only possible for additional equipments that are marked as Technical Evaluation = YES and the contract status is Active.
On an Active Contract without a Change Copy in the Object Overview, the user starts the Create Order function. After creating an order, the system displays the following message:
The system has created an additional equipment order (it can be opened, for example, from a financed object). For a description of working with the order, see Object Purchase Orders. After creating the order, the system wrote the order number on the additional equipment line.
If the user is allowed to edit the object without a change copy in User Setup - Allow Object Editing without Change Copy=Y, the additional equipment can be created without a change copy/variant.
Doing technical evaluation
The technical evaluation can be carried out by a special guide - object no. 4046869. The user initiates the execution of the change by clicking on the Change Contract (Wizard) process described in Contract Changes - Change Copies/Variants, then selects the Change Type for Technical Evaluation with Wizard Object Number=4046869.
If the additional equipment was ordered by a leasing company, the actual technical evaluation will be carried out after the delivery of the additional equipment (installation on the financed object) or after receiving an invoice from the supplier.
If this type of change has been selected, the Change Contract Purchase Price Wizard will start after completing the Change Copy/Variant Wizard. The steps are as follows:
Before opening the first step of the special wizard, the system checks the contract to see if it is in the automatic extension mode (contract Extension=Y flag). If it is, it displays a message and does not run the wizard – no recalculation of the payment schedule is allowed in this contract mode: "Contract Extension is Y, change is not possible."
If the contract is not in automatic extension mode (i.e. Contract extension=N), it continues and opens the first step of the wizard.
The automatic renewal mode is only used for contracts with services (operating leasing and fleet management), not for other contracts.
Step 1/3:
At the bottom of the window with step one, in addition to the effective date and approval number, the prepared additional equipment is also filled in.
Financed Object No.
If it is a single-object contract, then the system will tighten the number of the financed object and the field is non-editable
If it is a multi-subject contract, then the user selects the subject manually, the field is editable
Change Effective as of Date
The system will add the date from the payment calendar. This is the date in the "Date From" field from the first unposted line
After clicking on the date, the system will open the payment calendar
Approval No.
If the product type has the flag "Mandatory Technical Evaluation Approval=A" (typically for operational leasing and fleet management), then:
Editable
Selects the user from the service permissions, Lookup to the list of service permissions, filtered to the contract number.
Mandatory, when moving to the next step, the system checks that the field is filled in
Note: it is used in operating leasing
If the product type has the flag "Technical Evaluation Mandatory Approval=N", then:
Non-editable
Note: for financial leasing, credit, instalment sale
Endorsed
After selecting the Approval number from the service permission, the OC automatically downloads the Approver ID value (30) from the Maintenance Permission Header (4026710) table
Object Additional Equipment
The system will automatically fill in the equipment code of the item if there is exactly one additional equipment based on the item for technical evaluation.
Buttons in step 1/3:
Back - Inactive
Next – when pressed, the OC will (will not) check the Approval No. field
If the product type has the flag "Technical Evaluation Approval Required=A", then:
The OC checks if the Approval No. field is filled in:
If not, it will display the message "Approval number not filled in"
After pressing OK, it closes the message and leaves step 1/3 of the wizard open.
If so, it continues to the next wizard step.
If the product type has the flag "Technical Evaluation Approval Required=N", then:
After pressing the Next button, the OC does not check the field and continues to the next check.
If more than one trim is available as an additional equipment, the system will display an informative message when moving to the second step: "More additional equipment is ready."
Finish - Inactive
Close – When pressed, the OC will ask "Are you sure you want to quit without saving?"
If the user confirms Yes, the OC closes the message, closes the wizard and leaves the contract open on the change copy/variant (depending on where the wizard was started from)
If the user confirms No, the OC closes the message and leaves the wizard open for the given step.
Step 2/3:
The editability of the fields in this step differs depending on whether the contract has Financing with services=A (OL and SVP) or N (FL, UV, SP).
Note (step 2/3 contains a lot of fields for entering parameters and you need to use the slider from the right to enter the parameters at the bottom of the step).
For Financing with services=N, there is a difference in the editability of fields.
In step 2, the user adds:
Vendor No.
Empty by default
For Financing with services=N, the field is non-editable (there is no point in selecting it, because it is not saved in this case)
For Financing with services=A:
Lookup to Suppliers. Selects a user to specify a vendor
Non-editable if:
There is an additional equipment for an item that has a Technical Evaluation = Yes and at the same time Technical Evaluation Processed = No
Editable if:
There is no additional equipment for the item on which it is Technical Evaluation = Yes and at the same time Technical Evaluation Processed = No
Vendor Name
For Financing with services=N, the field is empty and uneditable
For Financing with services=A:
If Vendor No. has been selected, the Vendor Name will be completed automatically and the field will become uneditable
If the vendor number has not been selected, the user can enter the vendor name, the field is editable.
Additional Equipment Code
For Financing with services=N, the field is empty and uneditable
For Financing with services=A:
Non-editable if there is additional equipment for the item on which it is Technical Evaluation = Yes and at the same time Technical Evaluation Processed = No
Editable if there is no additional equipment for the item on which it is Technical Evaluation = Yes and at the same time Technical Evaluation Processed = No
Lookup to the Additional Equipment table.
If the additional equipment is not ready and is in the dial, the user can select it
Technical Valuation Description
If the Additional Equipment Code is filled in, the Description will be drawn automatically from the given additional equipment. The description is always editable.
If the user has not selected the Additional Equipment Code, the description can be entered manually.
Amount of Technical Valuation (excl. VAT(LCY))
For Financing with services=N, the field is empty and the user enters the value manually
For Financing with services=A:
if there is additional equipment for the item on which the Technical Evaluation = Yes and at the same time Technical Evaluation Processed = No:
The sum of the values of additional equipments that meet the conditions described above
field is non-editable
if there is no additional equipment for the item on which it is Technical Evaluation = Yes and at the same time Technical Evaluation Processed = No:
If Additional Equipment Code has been selected, the value is completed automatically (if it is entered on the Additional Equipment) and the field is editable
If the Equipment Code has not been tightened, then the field is editable
In case of manual change, the Amount of Technical Valuation (excl. VAT)
The value of technical improvement must not be left blank
Currency Code
The system fills in the currency code of the contract if the contract is in a foreign currency
Field is non-editable
Exchange Rate
The system automatically fills the Exchange Rate of the Contract.
If there is additional equipment for the item on which the Technical Evaluation = Yes and at the same time Technical Evaluation Processed = No:
If there is one matching row, the course will take over from here
If there are multiple matching lines, it keeps the exchange rate of the contract
Non-editable field
if there is no additional equipment for the item on which it is Technical Evaluation = Yes and at the same time Technical Evaluation Processed = No:
By default, it complements the exchange rate of the contract
editable, when changed manually, the system calculates the value Amount of Technical Valuation (excl. VAT).
course. The system then records the course on the new additional equipment.
Amount of Technical Valuation (excl. VAT))
if there is additional equipment of the item on which the Technical Evaluation = Yes and at the same time the Technical Evaluation is processed = No:
sum of the values of the Additional Equipment List Price Excl.VAT (21) from API Object Add. Equipment (4026674) that meet the conditions described above, in the contract currency
field is non-editable
if there is no additional equipment of the item on which the Technical Evaluation = Yes and at the same time the Technical Evaluation is processed = No:
The system automatically calculates:
Amount of Technical Valuation (excl. VAT)=Amount of Technical Valuation (excl. VAT)(LCY)/Exchange Rate
The same is calculated in the event of a change in the Technical Evaluation Excl. VAT (LCY) or a change in the Exchange Rate:
The Amount of Technical Valuation (excl. VAT)(LCY)
Editable
Include in Financing (Y/N)
Default A
Changes user to N if technical improvement is not to be included in financing
Add into Insurance
Default A.
Changes user to N if technical improvement is not to be included in insurance
Add into Insurance Excl. VAT
By default, N.
Changes the user to A if he wants to include the price of technical improvement in insurance including VAT
Add into Depreciation
Default N
Changes user to A if he wants to include the change in acquisition cost in the asset's depreciation
Total Residual Value Calculated
The OC will display the value of the current residual value from the financing contract
Non-editable, informative information
Technical Improvement Residual Value Excl. VAT (Technical Evaluation Residual Value Exc.VAT)
Non-editable
In the wizard, the system extracts the value before technical evaluation from the field of the same name from the subject
Residual Value Change (Residual Value Change)
Empty by default
For Financing with services=N, the field is empty and uneditable
For Financing with services=A:
Enter the value if the user wants to increase or decrease the residual value in the calculation by the residual value of the technical improvement
Residual Value excl. VAT (Calculation Residual Value)
Non-editable field
For Financing with services=N, field is blank
For Financing with services=A:
Calculates the OC automatically as the sum of Total Calc. Residual Value + Technical Evaluation Residual Value Excl. VAT + Residual Value Change
This value will also be included in the payment calculation
Include stay. Value To Assets
For Financing with services=N, the field is non-editable
For Financing with Services =A
Default N
Change user to A if he wants the change of residual value to be included in the asset
Change Effective as of Date
Fills in the NAV automatically, it is the date of the next unposted payment
Non-editable by the user
After clicking on it, the contract payment calendar will open.
Buttons in step 2/3:
Back - Inactive
Next – when pressed, the OC will check:
CZ localization only (Luxury Tax):
The system evaluates whether it is an appreciation that has an impact on the unclaimed part of VAT. The criteria for the unclaimed part of VAT are as follows:
Handover Date in Contract => "VAT Limitation Valid From" (set in OneCore Settings) and
Financing Type= Operative Leasing and
Catalogue Group Course Code has "Maximum price for VAT"<>0
The value of the "Calculate limitation for VAT" field in the Financed Object Metod Usage table (if the value is YES, then it meets the criterion for the unclaimed part of VAT)
Purchase Price Excl.VAT+Amount of Technical Valuation (Excl.VAT)=< Maximum price for VAT from the group of the object catalogue card and at the same time there is no calculation input for the unclaimed part of VAT in the original contract
Then it continues.
Purchase Price Excl.VAT+Amount of Technical Valuation (Excl.VAT)=< Maximum price for VAT from the group of the object catalogue card and at the same time there is a calculation input for the unclaimed part of VAT in the original contract
Then it displays a message
And they won't let it go on
Purchase Price Excl.VAT+Amount of Technical Valuation (Excl.VAT)> Maximum price for VAT from item catalogue group
Then it displays a message
And won't let it go any further
Checks if the technical valuation price is entered:
If it is not, it will warn you with the message: "Please enter the price of the technical valuation."
If it is, it proceeds to step 3/3.
Finish - Inactive
Close – when pressed, the OC will ask "Do you really want to quit without saving?":
If the user confirms Yes, the OC closes the message, closes the wizard and leaves the contract open on the change copy/variant (depending on where the wizard was started from)
If the user confirms No, the OC closes the message and leaves the wizard open for the given step.
In Step 3 all information is summarized, the user only confirms Finish.
When the wizard completes, the system executes:
Checks if the Adjusted Residual Value excl. VAT is less than (Principal balance at the effective date + Technical Improvement Price excl. VAT).
If it doesn't fit, it gives a message and stops the process. After confirming the message, it leaves step 3/3 open
If it passes, it continues to the next check.
If Financing with services=A (OPL and GMP):
Updates the line of previously created additional equipment
Flag Include in Financing, Technical Evaluation Processed=A
Date of entering the calculation = Effective of the change.
Other fields "residual value of technical evaluation without VAT", "change of residual value" Y/N and according to the fields of the same name from the wizard.
If the user did not have an unprocessed additional equipment created before starting the wizard, he creates a new row of additional equipment in the Object Additional Equipment table (the Price and Equipment button opens the Financed Object Prices form, with the Additional Equipment button on it), and adds the values
Additional Equipment Code, Description, Vendor No., Vendor Name – fill in from wizard
List Price Excl. VAT (LCY) and Price Excl. VAT (LCY) are added from the Technical Valuation Price Excl. VAT (LCY) field from step 2/3
List Price Excl. VAT and Price Excl. VAT will be added from the field Technical Valuation Price Excl. VAT from step 2/3
Include in financing will be set according to the same name field from the wizard
Sets Technical Evaluation=A
Technical Evaluation Processed=A
Other fields "residual value of technical evaluation without VAT", "change of residual value A/N and according to the input of the fields of the same name from the wizard.
The other fields (Discount %, Discount Excl. VAT (LCY), Discount Excl. VAT, Discount Incl. VAT (LCY), Discount Incl. VAT) are left blank
if Include in financing = A in the Item Additional Equipments tab:
adds fields Additional Equipment List Price Excl. VAT (LCY), Additional Equipment List Price Excl. VAT, Additional Equipment Price Excl. VAT (LCY) and Additional Equipment Price Excl. VAT from Object Additional Equipment
Updates the residual values from the subject to the contract:
The Calculation Residual Value field (33) on the contract is filled with the value from the Calculation Residual Value (10230) from the subject and
The Calculation Residual Value % (4026700) field on the contract is populated with the value from Calculation Residual Value % (10235) from the subject
Continues on to calculation input
if Include in Financing=N in the Item Additional Equipments tab :
Additional Equipment List Price Excl. VAT (LCY), Additional Equipment List Price Excl. VAT, Additional Equipment Price Excl. VAT (LCY) and Additional Equipment Price Excl. VAT do not add to an item from the additional equipment.
If Financing with services=N (FL, UV, SP):
does not add the line to Additional Equipment.
Proceeds to the calculation input.
Independently of the flag Financing with services=Y/N, a new calculation input is created according to the setting of the Technical Evaluation Calculation Input Code on the Financing Product or the values from the wizard for the given subject of the contract:
From the code of the calculation input type, it gets:
Calculation Input Variant
Calculation Input Type
APR
In the Base Amount (30) field, fill in the value Technical Valuation Price excl. VAT
Adds some additional data to the calculation input depending on the Include in Financing flag:
If the Include in Financing=A flag was enabled in the wizard:
To the acquisition (40) adds A
A is added to the calculation (70)
Local (75) will be supplemented by A
IFRS (80) will be supplemented by A
Date of entering the calculation (90) will be filled in by date from (Change effective as of date)
Inclusion Date (45) will be supplemented by Date Z (Change Effective as of Date)
If the flag Include in financing=N was in the wizard
To the acquisition (40) adds N
N will be added to the calculation (70)
Local (75) adds N
IFRS (80) will be supplemented by N
Date of entering the calculation (90) will be filled in by the date from Change Effective as of Date
Inclusion Date (45) will be added by the Date of Change Effective as of Date
They will include it in the calculation of financial indicators (79040) and add N
Fills in the "To depreciation" field according to the settings in the wizard
Adds some additional data to the calculation input depending on the Include in Insurance flag:
If the flag Include in insurance=N was in the wizard:
Insurance (55) will add N
If the Include in Insurance flag = A was in the wizard:
Insurance (55) will add A
If it was included in the wizard Include in insurance without VAT=A in the field Insurance amount incl. VAT (60) it will fill in the value N
If the Include in Insurance Excl. VAT wizard ==N in the Insurance Amount Incl. VAT field (60) will fill in the value A
Recalculates (updates) the calculation input to recalculate other data (e.g. VAT Amount, Insurance Amount, Calculation Amount, etc.).
If the calculation input is Include in Financing=A:
In the financial calculator and the payment calendar of the contract for the last posted and non-credited payment, the value of the technical improvement is added to the Acquisition Price Change field and this is included in the principal.
If Include in Insurance=A:
The system checks the value of the Do not update insurance value field on an insurance contract with product type = Property. If its value is
No
Proceeds to the next check
Yes
Displays a message to the user
After OK confirmation, the system continues without making any changes to the insurance contracts (termination of the insurance contract and creation of a new one). After completing the wizard, the user terminates the original "property" insurance contract manually and creates a new one with the required insurance value
If the check is Security Check = YES in the insurance settings and the check is not turned off on the insurance contract (i.e. flag Do Not Check Security=NO), the check will be performed to see if the new sum insured complies with the security:
If the sum insured is increasing and the security of the object is tied to the sum insured for the insurance company's product for the given insurance contract, it must check the new sum insured (original sum insured + amount from the new calculation input) and the basis for security.
If it does not comply after increasing the security, the warning "There are not enough security devices on the object" will follow.
If the security is satisfactory, it continues
If Security Check = NO is set in Insurance Settings or if Do Not Check Security Check = YES is disabled in the insurance contract settings, OC will not check the sum insured against security.
It checks whether the insurance contract with the new insured value complies with the restrictions of the insurance variant (Note: we do not check the valid rate as of the current working date, because the rate should not change when increasing the insured value on an existing insurance contract):
If so, it continues the process.
If it does not meet any restrictive condition, it will display the message "The insurance contract does not comply with the restrictions. Do you want to terminate non-compliant insurance policies?". If you press Yes, it will terminate the non-compliant insurance policies one day before the effective date of the technical evaluation.
If an unsatisfactory rate is included in the package, it will be followed by a warning "You also need to terminate the insurance policies in the package – do you want to continue?". If the answer is YES, it will terminate the insurance policies with an unsatisfactory rate as well as the tied insurance policies. The user must then enter a new insurance policy after completing the wizard on the change copy/variant. If the answer is NO, the OC will terminate the technical evaluation process, close the wizard and leave the contract unchanged on the change copy/variant.
If the unsatisfactory rate has an additional insurance policy linked to it, a warning will follow: "Tied insurance policies also need to be terminated – do you want to continue? If the answer is YES, it will terminate the insurance policies with an unsatisfactory rate as well as the related additional insurance policies. The user must then enter a new insurance policy after completing the wizard on the change copy/variant. If the answer is NO, the OC will terminate the technical evaluation process, close the wizard and leave the contract unchanged on the change copy/variant.
When NO is pressed, the fuse does not exit, it terminates the wizard process
If Include in Insurance=N:
It does not perform the check – there is no need because the sum insured does not change.
Performs/does not copy a property insurance contract:
If the flag was in wizard Include in Insurance=Yes
The original insurance policy, where the calculation is a percentage of the sum insured (e.g. property insurance has a base code in the Insurance Contract table and the 460 Insurance Value field), is terminated one day before the effective date of the technical evaluation and a new identical insurance policy with an increased sum insured from the effective date of the technical evaluation is created (by copying).
With individual property insurance, the system also terminates the original policy and establishes a new one with an increased value. (Note: the user should secure a new pledge from the customer for the increased sum insured – additional insurance of technical evaluation.)
If the flag was in wizard Include in insurance=N
They do not terminate the original insurance contract or create a new one
Recalculates the contract
if the technical improvement has been included in the financing, its value will be included in the Purchase Price excl. VAT after it has been performed. VAT) in the contract.
Leave the contract on the change copy/variant, after checking it is necessary to transfer it to the original.