Contract Activation

The contract is activated after the object has been handed over to the customer (or, in exceptional cases, even without handover).

By contract activation, we mean putting the contract into the standard contract life mode, where it is possible, for example, to invoice installments from the payment schedule, etc. Normally, this step is carried out after the customer has taken over the financed object and the handover protocol has been signed.

Contract Activation

Contract activation is done by using the Change Contract wizard by selecting Changes - Change Contract (wizard), then select a change in the "Change Type Code" field with the Wizard Object Number equal to 4046860.

After completing the initial wizard, the "Contract Activation Wizard" opens. After running the Contract Activation wizard, the OC performs several checks (partly depending on some settings) that prevent the activation of an incomplete contract. The following data is checked:

Contract Status Check:

• If the Contract Status is<Active

  • i.e. this is the first activation of the contract

  • proceeds to check the sequence of detailed states (see below)

• If Contract Status=Active

  • i.e. it is a correction of the handover date

  • checks whether a down payment or payment (which has not been credited) is posted in the contract payment calendar:

    • If there is a posted (and not credited) down payment or payment, it displays the message "Contract has Status=Effective and has a posted payment, it is not possible to continue." The user confirms OK, OC closes the message and terminates the process.

    • If there is no such payment, OC displays a message and does not allow to continue: "Contract is active, please use Handover Date Change wizard."

• If the Contract Status is>Active

  • The OC displays the message "Contract has Status>Effective, it is not possible to continue." The user confirms OK, OC closes the message and terminates the process.

Checking the sequence of detailed statuses

If, according to the definition of the sequence of detailed states, the transition is not possible, the OC will notify you in the form of a message and stop the activation process.

Checking the existence of a Customer No. in the contract

If it is not specified, the OC will notify you in the form of a message and stop the activation process.

Check Signature Dates

The OC will check the Customer's Signature Date and the Company's Signature Date – if they are not entered, the OC will notify you in the form of a message and stop the activation process.

Purchase Price Check

The OC will perform a check (existence of a calculation input for the purchase price of the item) – if the purchase price is not entered (for OL: it can be entered from the object card), the OC will notify you in the form of a message and stop the activation process.

The check is performed only for contracts with Financing Not Mandatory = N on the financing product type.

Checking the Licence Plate No.

If Check Licence Plate No=Y on the Financing Product Type, OC will check if the Licence Plate No. field is filled in on the object (39)

• If empty, it displays an error message and stops the process

  
  

• if completed, it will check if the same values of Licence Plate No. are found on another object that has Contract Status (19004)=Active:

  • If not, it proceeds to the next check

  • If so, it displays an error message and stops the process.

    
    

Checking the Vendor No. on the Object Card

If this field is not filled in (i.e. the subject vendor is not entered), the OC will notify you with a message and stop the activation process.

Check the existence of an insurance contract for third-party insurance.

If the parameter Liability Insurance=A is set on the object card (on the object card it is taken from the catalogue card), the OC on the financing product in the Insurance subtable will find the value Check for the existence of mandatory insurance contracts (None, Mandatory or Confirmation) and the wizard will check the existence of such an insurance contract according to it. If there is also no insurance in the financing contract, the OC will notify you in the form of a message depending on the settings on the product:

If it is not: does not perform the check

If Required: displays a message and the process stops: "No insurance contract exists for contract XXX and UGS insurance product."

If Confirmation: If Yes continues, if NO it stops the activation process: "No insurance contract exists for contract XXX and the UGS insurance product. Do you want to continue?"

If the Ins. Prod. Base Type for Check is set up on the product/financing template, the system performs the check according to the settings:

If Required: displays a message and the process stops: "There is no insurance contract for the type of Third-party insurance product."

If Confirmation: If Yes continues, if NO stops the activation process: "There is no insurance contract for the type of insurance product Third-party insurance. Do you want to continue?"

WARNING: During the inspection, the system does not differentiate between the type of insurance of the given insurance contract, i.e. whether it is a collective contract (insurance in instalments) or individual insurance

Property Insurance Contract Existence Check

The wizard will check the existence of a property insurance contract (accident or all-risk) depending on the parameter setting on the financing product Check the existence of insurance contracts (None, Required, Confirmation).

If it is not: The OC will not perform the check

If Mandatory: if such an insurance contract does not exist, the OC will display a message and stop the process: "No insurance contract exists for contract XXX and the KASKO insurance product."

If Confirmation: If such an insurance contract does not exist, the OC will display a message. Then, in the case of Yes, it continues, in the case of No, it stops the activation process: "There is no insurance contract for the XXX contract and the KASKO insurance product. Do you want to continue?"

If the Ins. Prod. Base Type for Check is set up on the product/financing template, the system performs the check according to the settings:

If Required: displays a message and the process stops: "There is no insurance contract for the type of insurance product Property."

If Confirmation: If Yes continues, if NO the activation process stops: "There is no insurance contract for the type of insurance product Property. Do you want to continue?"

WARNING: During the inspection, the system does not differentiate between the type of insurance of the given insurance contract, i.e. whether it is a collective contract (insurance in instalments) or individual insurance

Checking the existence of additional insurance

The wizard will check the existence of additional insurance contracts (e.g. baggage, windshield, etc.) depending on the parameter setting on the financing product Check the existence of insurance contracts (None, Required, Confirmation).

If it is not: The OC will not perform the check

If Required: if such an insurance contract does not exist, the OC will display a message and stop the process: "No insurance contract exists for contract XXX and the BAGGAGE insurance product."

If Confirmation: If such an insurance contract does not exist, the OC will display a message. Then, in the case of Yes, it continues, in the case of No, it stops the activation process: "No insurance contract exists for contract XXX and the BAGGAGE insurance product. Do you want to continue?"

If the Ins. Prod. Base Type for Check is set up on the product/financing template, the system performs the check according to the settings:

If Required: displays a message and the process stops: "There is no insurance contract for the Supplementary insurance product type."

If Confirmation: If Yes, it continues, if NO, it stops the activation process. "There is no insurance contract for the Supplementary product type. Do you want to continue?"

WARNING: During the inspection, the system does not differentiate between the type of insurance of the given insurance contract, i.e. whether it is a collective contract (insurance in instalments) or individual insurance

Check verified and reported insurance policies

When the contract is activated, a check is performed

• Whether there are insurance contracts for the contract that are set up in the framework agreement Insurance Verification Required or Insurance Reporting Online They're verified and reported. If:

  • Yes

    • Checks that contracts are verified and reported. If:

      • No

        • The system displays an error message "There are undeclared or unverified insurance contracts on the contract. Contract XXX. Cannot be activated!" and stops the contract activation

      • Yes

        • Proceeds to the next review

Checking Accounting Groups

The contract will be checked by the following accounting groups:

• Gen. Bus. Posting Group

• Gen. Prod. Posting Group

• Customer Posting Group

• VAT Bus. Posting Group

• VAT Posting Group Principal - only for contract with Financing Product Type Financing Optional=N

• VAT Interest Posting Group - only for contract with financing product type Financing Not Mandatory = N

On the contract services, it checks for the existence:

• Gen. Bus. Posting Group

• Gen. Prod. Posting Group

• VAT Bus. Posting Group

• VAT Prod. Posting Group

On insurance contracts that enter into installments (Include in installments=A), it checks for the existence:

• Gen. Bus. Posting Group

• Gen. Prod. Posting Group

• VAT Bus. Posting Group

• VAT Prod. Posting Group

As an example, here's the message:

Down Payment Check

If Down Payment<>0 is specified in the contract:

• Flag Completed Calculation=N (i.e. there is no contract payment calendar), the system will not check the down payment,

• Flag Completed Calculation=Y (i.e. there is a payment calendar), the system will check the down payment if the following applies:

  • Down Payment in the contract header = sum of down payments in the payment calendar lines and Down Payment Line in the Amount Excl.VAT field (the check must be performed due to the possibility of splitting the down payment directly in the contract payment calendar)

    • If it is valid, it continues

    • If it does not apply, it displays a message and does not continue.

      

Inspection of security systems on the object

The system checks the security device if in Insurance Settings, Check Security = A

• The system checks the security settings on the insurance company's product against the security settings on the financed object

• If there is no required security on the item, the system will display a message during activation: "There are not enough security devices on the object."

Green Card Number Check

If the Mandatory Green Card No,=Y flag is enabled on the Insurance Product, the system checks the field on the Insurance Contract Card Green Card No.

• If the number is not filled in, the system will display a message

  

• If the green card number is set to Imported Board and the original green card number remains when copying the contract and insurance contracts, the system will display a message during activation

  

If none of the above checks find missing data:

• Inserts a line into the Contract Change History according to the current functionality on the Finish button in the wizard for creating a change copy

• OC opens step 1 of the wizard to activate the contract

In step 1, the user enters:

• Object Handover Date

  • Empty by default, it is not possible to continue with contract activation without filling it in

After filling it in, the user presses the Next button. Subsequently, the dates will be checked:

• Object handover date is filled in

If it is not, the system displays an error message: "Handover date must not be filled in." and the user cannot continue.

• Object Handover Date =< as current sysdate date (in other words, it is not possible to activate the contract in the future)

If it is bigger, OC will display a message and leave step 1 of the wizard open: "Handover date must not be higher than current date!"

If the date is suitable, the OC proceeds to the next check.

• Object Handover Date >= as Contract Signing Date (Fin. Company):

If the Contract Signing Date is higher, the OC displays the message: "Handover Date cannot be lower than Contract Signing Date." and leaves step No. 1 of the wizard open:

If the date is suitable, the OC continues.

• First Registration Date Check for MOI Tax (Road Tax)

If Service Kind=Road Tax exists in Contract Services, the OC will check:

• Object Handover Date in wizard>=1st Registration Date (250) in API Financed Object (4026560) on contract object

  • If

    • Pays

      • Goes on

    • Does not apply

      • Displays a message with the following message:

        • The Handover Date of the object must be higher than the Date of First Registration.

• Informative check whether Handover Date is>=1.1.in the given year (activation until last year)

If:

• Pays

  • He goes on without a message

• Does not apply

  • The system displays a message (query): "The handover date should be in the current year. Do you want to continue?"

    • If they confirm

      • Yes

        • Goes on

      • No

        • Leaves step 1 of the wizard open.

If all checks were passed, opens the Step 2 of the wizard. In step 2, the user only needs to confirm whether they want to complete the activation:

In this step, the OC displays the basic data of the contract without the possibility of editing them by the user.

• Meaning of the buttons in the wizard window:

  • Change list – after starting the OC, it displays the data that were entered by the user (system) in the contract change wizard (from the Contract Change History line, which was created after step 3 of the contract change wizard):

  • Undo – the ability to go back one step.

  • Next – move to the next step of the wizard. In the last step, this button is passive.

  • Finish – Finish the wizard.

After confirming the Finish button, the Contract Activation wizard performs the following steps:

• Adds Handover Date to the contract

• If REFI Code is not Mandatory=N on the Financing Product Type and there is a flag Update REFI in Activation=Y on the REFI code of the contract, then it will check and update the REFI rates as of the Handover Date (i.e. not on the Reference Date as when the contract was created and the REFI Code was changed). To the REFI Code of the contract, it searches for the valid rates as of the Handover Date and if they are different from what they were, it takes over the currently valid Base Rate % Cost Interest % (or Special Liqui Cost %). Then, in the further course, the installments will be calculated using these new current rates. This check is on the OnValidate Handover Date.

• If the Object Handover Date is different as Expected Handover Date, it will adjust the Calculation Start Date and the Expected Completion Date on the contract card in relation to the Object Handover Date.

• If the Handover Date of the object is different than the Expected Handover Date and the contract includes a Road Tax service, an update of this service will be performed in relation to the new Handover Date.

•  If the Handover Date of the object is different from the Expected Handover Date, the date of commencement of validity of the insurance contracts (Date From on the Insurance Contract Card) will be checked depending on the Insurance Start parameter in the insurance set:

  • If Insurance Start = Financing Start – OC straightens the duration of the policies with the duration of the contract

  • If Insurance Start = Before Financing Start – Leaves the policy unchanged,

• If the Handover Date of the object is different from the Expected Handover Date, the system on insurance contracts where the flag Do not update insurance value = No will update the insurance value from the calculation input to the purchase price

• If there is a date on the insurance contract in the Valid From field < Handover Date on the reported insurance contracts (i.e. the field Insurance Company Check-in Date) in the client's calendar, the system calculates the premium payment for the period from the date of reporting to the date of handover in 0.00 (The daily rate is applied according to the "daily rate calculation" set on the insurance company's product)

Example 1: The fuse is reported 04.06.2024, Handover date is 18.06.2024, Insurance calendar for the client:

The "pro rata" is a total of 27 days.

The period 4. - 17.6.2024 is the amount 0 for 14 days.

The period 18.-30.6.2024 is the amount of 182 in 13 days. From the "Handover Date" to the end of the month x daily rate, that is 13 days x 14 = 182.

Example 2: The fuse is reported 04.06.2024, Handover date is 18.07.2024, Insurance calendar for the client:

"Pro Rata" 4. - 30.6.2024 is a total of 27 days for 0

The period 1. - 17.7.2024 is the amount 0 for 17 days + The period 18. - 31.7.2024 is the amount 196 for 14 days. From the "Handover Date" to the end of the month x daily rate, that is 14 days x 14 = 196

• Checks the existence of a payment schedule:

  • If it does not exist (Complete Calculation=N), it calls the calculation function and creates a contract payment calendar. At the same time, it sets the contract flags:

    • Payments updated=A

    • Services updated=A

    • Insurance updated=A

  • If it exists (Complete Calculation=Y), the function calls to recalculate the payment calendar according to the updated dates (described above)

• Switches the detailed contract status to the status according to the OneCore Setup setting.

• Toggles the contract status according to the detailed contract status settings after activation (usually Active)

• Toggles the status of insurance contracts from Preparing to Active (if they exist in the contract)

• If there are additional insurance contracts that are linked to the main insurance, it fills in the value of the Addition to insurance contract (base insurance number) field according to the Addition to product type setting. If a field is filled in, it does not update/overwrite the field value.

• Terminates the pre-insurance policy if it is not set on the insurance contract Insurance Reporting Online = Yes, Valid To = Handover Date -1

• If the contract contains third-party insurance contracts in instalments and Green Card Assigning Method=Contract Activation is set in the framework contract, the system will add the green card number to the insurance contract (according to the settings of the insurance company's product Other Conditions/Green Card Number Masks->Numbering Source)

• Creates a pledge card in status Not delivered if an insurance contract exists, where Product Type = Property, Insurance Type = Individual, Insurance Subtype = Related to Financing.

• If Financed Object = Used/Individual import, the insurance company product is set to Mandatory inspection = Yes, set to Framework agreement type = Period for inspection.

• Toggles the status of services from Preparing to Active (if they exist in the agreement)

• If there are guarantees in the contract in the status<Active, the wizard switches the status to Active and adds the handover date to Valid from.

• If the contract says Financing with Services=Y:

  • creates the first line in the Odometer Status History:

    • Mileage=adds Initial Mileage from object

    • Mileage Date=adds Handover Date

    • Planned Mileage=adds Initial Mileage from object

  • adds the value from Calculation start date to a row in the Contractual Distance table to Date From.

• Posts the first increased payment, if it exists on the contract and has not been posted before (the description of down payment posting is described in detail in the user documentation Fakturace prodej)

• For Instalment Sale: Creates and posts an Instalment Sales Invoice and fills in the Document No. (IS), Posting Date (IS), Due Date (IS), VAT Date (IS), Posted (IS)=A, and Customer Posting Group of the SP Sales Price on the contract (Payroll Sales Tab). A description of posting an invoice for installment sales is described in detail in the user documentation for invoicing).

• For financial leasing with delivery of goods:

  • Creates and posts a sales invoice for the VAT contract

  • fills in the field Document No. - Tax Invoice upon Delivery of Goods (Posted Invoice Number) on the contract header and ticks the Posted Tax Invoice upon Delivery of Goods check box,

  • on the source calculation inputs (Calc. Input Variant = VAT - Delivery of Goods) fills in the fields Calculation Input Posted = Yes, Document No. = Posted Invoice No.

  • If an initial fee calculation input has been created, creates and posts an entry fee sales invoice. The invoice is "excl. VAT" because VAT has already been included in the sales invoice on the VAT contract

When the activation process is complete, the OC will display the message "Contract No. XXX has been activated". The user confirms OK, OC leaves the card of the contract open.

Contract activation takes place on a contract outside the change copy, because it is not possible to post documents in the change copy mode.