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Technical Evaluation

Technical Evaluation

Owned by Lango: Language and translation manager
Last updated: Oct 26, 2024Version comment
18 min read

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 to be included 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 technical evaluation, and if we want to generate an order for a given technical evaluation, it is necessary to create this technical evaluation in the additional equipment of the item. It is then possible to generate a purchase order on it (description Nákupní objednávky předmětu).  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 Detailed Status, the Change Contract Wizard with Change Object Type will start:

  • Then, on the change copy or variant, open the Financed Object card, then Object Component/Price and Equipment.

  • Then click on 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 a 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 finished, the list closes and returns to the Item Prices form:

  • On the Financing 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 performs the transfer of the change copy/variant.

After transferring the change copy, it is possible to create an order (for a detailed description see Nákupní objednávky předmětu). An order can also be created for a vendor identical to the object vendor. This is only possible for additional equipment that is marked as Technical Evaluation = YES and the contract status is Active.

On an Active Contract without a Change Copy in the Item Overview, the user starts the Create Order function. After creating an order, the system displays a message:

image-20240620-082939.png

The system has created an additional equipment order (it can be opened, for example, from a financed object). For a description of the labour with the order, see Nákupní objednávky předmětu. 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

Technical evaluation is possible with a special guide - object no. 4046869. The user starts the execution of the change by clicking on the Change Contract (Wizard) process described in Změny smlouvy - změnové kopie / varianty , then selects Change Type for Technical Evaluation with Object number wizard=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 (assembly 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 be launched after the Change copy/variant wizard is completed. 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 (operational 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-object 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 a flag "Technical Evaluation Approval Required=N", then:

      • Non-editable

      • Note: for financial leasing, credit, instalment sale

  • Endorsed

    • After selecting the Approval number from the service permission, the OC will automatically retrieve the Approver ID value (30) from the maintenance permission 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 performs (does not execute) the check of the Approval No. field

    • If the product type has the flag "Technical Evaluation Approval Required=A", then:

      • The OC checks to see 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 OC button, the check does not fill in the field and continues to the next check.

    • If more than one additional equipment is ready, the system will display an informative message when you move to the second step: "More additional equipment is ready."

  • Finish - Inactive

  • Close – when pressed, the OC will ask "Are you sure you want to close without saving?"

    • If the user confirms Yes, OC closes the message, closes the wizard and leaves the contract open on the change copy/variant (depending on where the wizard was launched from)

    • If the user confirms No, 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 if they want to specify a vendor

    • Non-editable if:

      • Is there 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 non-editable

    • For Financing with Services=A:

      • If the 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 non-editable

    • For Financing with Services=A:

      • Non-editable if there is additional equipment of 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 an Additional Equipment Code is filled in, the Description will be drawn automatically from the 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 of the item on which it is Technical Evaluation = Yes and at the same time Technical Evaluation Processed = No:

        • the sum of the values of the 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

    • The system fills in the currency code of the contract if the contract is in a foreign currency

    • The field is non-editable

  • Exchange Rate

    • The system automatically fills the Exchange Rate of the contract.

    • If there is additional equipment for an item on which it is Technical Evaluation = Yes and at the same time Technical Evaluation Processed = No:

      • If there is one matching line, the course will pick up from there

      • If there are multiple matching lines, the exchange rate of the contract remains

      • 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 will complement the exchange rate of the contract

      • editable, when changed manually, the system calculates the value Amount of Technical Valuation (excl. VAT).

      • course. The system will then also record 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 object on which the Technical Evaluation = Yes and at the same time the Technical Evaluation is processed = No:

      • Will the system automatically calculate:

        • 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 Technical Valuation without VAT (LCY) or a change in the Exchange Rate:

      • When changing, 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 user to A if he/she wants to include the price of technical improvement in insurance including VAT

  • Add into Depreciation

    • Default N

    • Changes the user to A if he wants to include the change in the acquisition cost in the asset's depreciation

  • Total Residual Value Calculated

    • OC displays 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 non-editable

    • 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 remain. Value To Assets

    • For Financing with services=N, the field is non-editable

    • For Financing with Services =A

    • Default N

    • Changes 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

    • When clicked, the contract payment calendar opens.

Buttons in step 2/3:

  • Back – Inactive

  • Next – when pressed, 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 Code of the course 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 item catalogue card group 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 item catalogue card group 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

          image-20240620-083803.png

        • 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, proceed to step 3/3.

  • Finish - Inactive

  • Close – when pressed, the OC will ask "Are you sure you want to close without saving?":

    • If the user confirms Yes, OC closes the message, closes the wizard and leaves the contract open on the change copy/variant (depending on where the wizard was launched from)

    • If the user confirms No, OC closes the message and leaves the wizard open for the given step.

In Step 3 all the 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 as of 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 input of the fields of the same name from the wizard.

    • If the user did not have created unprocessed additional equipment before starting the wizard, he creates a new line of additional equipment in the Object Additional Equipment table (the Price and Equipment button opens the Financing Object Prices form, there is a button Additional Equipment on it), and adds the values

      • Additional Equipment Code, Description, Vendor No., Vendor Name – to be completed from wizard

      • List Price Excl. VAT (LCY) and Price Excl. VAT (LCY) is 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 to 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 fields of the same name from the wizard.

      • Leave the other fields (Discount %, Discount Excl. VAT (LCY), Discount Excl. VAT, Discount Incl. VAT (LCY), Discount Incl. VAT) blank

    • if Include in Financing = A in the Additional Equipments tab of the item:

      • 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 residual values from Object to Contract:

        • The Calculation Residual Value field (33) on the contract is filled with the value from 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 Additional Equipments tab of the item :

      • 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):

    • line to Additional Equipment will not be added.

    • Proceeds to the calculation input.

  • Independently of the flag Financing with services=Y/N, it creates a new calculation input according to the setting of the Calculation Input Code technical evaluation 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 pulls:

      • Calculation Input Variant

      • Calculation Input Type

      • APR

    • In the Base Amount field (30), add the value Technical Valuation Price without VAT

    • Adds some additional data to the calculation input depending on the Include in Financing flag:

      • If flag Include to Financing=A was enabled in the wizard:

        • To the acquisition (40) adds A

        • To the calculation (70) adds A

        • Local (75) will be completed by A

        • IFRS (80) will be supplemented by A

        • Date of entering the calculation (90) will be filled in by date z (Change effective as of date)

        • Inclusion Date (45) will be replaced by Date Z (Change Effective as of Date)

    • If the flag Include to 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 add 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 to the date from 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 feature:

    • If the Include to Insurance =N flag was in the wizard:

      • Insurance (55) will add N

    • If the Include to Insurance =A flag was in the wizard:

      • Insurance (55) will be supplemented by A

    • If the Include in Insurance Excl. VAT=A wizard filled in the Insurance Amount Incl. VAT (60) field, the value N will be filled in

    • If Include in Insurance Excl. VAT=N wizard in the Insurance Amount Incl. VAT (60) field, it 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 payment calendar of the contract for the last posted and non-credited payment, it adds the value of the technical improvement to the Purchase Price Change field and includes it 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 review

      • Yes          

        • Displays a message to the user

        • After confirming OK, 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 disabled on the insurance contract (i.e. flag Do Not Check Security=NO), it will check whether the new sum insured complies with the security:

      • If the sum insured is increased and the security of the object is linked 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, after increasing the security, it is not suitable, the warning "Insufficient security devices on the object" will follow.

        • If the security is satisfactory, it proceeds

      • If Security Check = NO in Insurance Settings or if Do Not Check Ensure = YES is disabled in the insurance contract settings, OC will not check the sum insured against the 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 if the insured value is increased on the 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 the day before the effective date of the technical evaluation.

        • If an unsatisfactory rate is included in the package, it will be followed by the 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. After completing the wizard, the user must enter a new insurance policy on the change copy/variant. If the answer is NO, the OC terminates the technical evaluation process, closes the wizard and leaves the contract unchanged on the change copy/variant.

        • If the unsatisfactory rate has an additional insurance policy linked to it, it will be followed by a warning "You need to terminate the tied insurance policies as well – do you want to continue? If the answer is YES, it will terminate the insurance policies with an unsatisfactory rate as well as the linked additional insurance policies. After completing the wizard, the user must enter a new insurance policy on the change copy/variant. If the answer is NO, the OC terminates the technical evaluation process, closes the wizard and leaves the contract unchanged on the change copy/variant.

      • When you press NO, 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 the 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).

    • In the case of 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 improvement.)

  • If the flag was in wizard Include in Insurance=N

    • The original insurance contract is not terminated, a new one is not established

    • Recalculates the contract

    • if the technical improvement has been included in the financing, its value will be included in the Purchase Price excl. VAT (Purchase Price excl. VAT) in the contract.

    • Leave the contract on the change copy/variant, after checking it is necessary to transfer it to the original.