Total Damage Settlement

The source for the financial settlement from Total Loss is the Insurance Event (Insurance Claim) with the type of insured event Total Loss. Data from the Insurance Indemnity Settlement tab (Insurance Indemnity Settlement) is transferred from the insured event according to the financial settlement field settings to the financial settlement card.

Insurance Claim Data from the Insurance Indemnity Settlement tab (Insurance Indemnity Settlement) is transferred to the Financial Settlement Card and "Reduction Amount" and "Amount to be Reinvoiced Excl. VAT" are recalculated to FIV.

Costs associated with the Total Loss / Theft insured event can be reinvoiced to the client:

• From Maintenance Permission via Mass Invoicing

  • Direct re-invoicing to the client without tax – the amount does not relate directly to the PU (it just came on the same purchase invoice to the PU). It has not been claimed by the insurer and does not have a paired insurance indemnity or its reduction (it is not included in the amount of the PP reduction)

• From Financial Settlement

  • Recalculated Reduction Amount

  • Participation

If the client had a service on the contract that was related to the amount of the PP reduction, it is necessary to mark the amount to be reinvoiced with "reinvoicing method" = Billing on the allowance line with this service due to the "service utilization" overview. In order not to be applied twice in the contract balance, the amount to be reinvoiced is deducted from the reduction amount for FIV. However, before deducting, we must reduce the amount to be reinvoiced by Direct Reinvoicing to the Client, which is not included in the reduction amount, but is included in the calculated field "Amount to be reinvoiced without VAT". Therefore, the reduction amount is recalculated from PU to FIV.

If the client does not have the "contract service", but the provision of a replacement vehicle is part of the insurance package, in the case of an excessive number of drawn days, the allowance line is not created and the excessive use is in the "reduction amount".

The Financial Settlement contains several tabs (except for the General and Contract Termination tabs) – they are described below.

To create a Financial Settlement:

• The user creates a Financial Settlement using the Create/Create Financial Settlement button (selects the settlement type for Total Damage)

• The system will open a tab for this type of settlement

• After creating a Financial Settlement, the system automatically updates (recalculates) the fields on the Settlement card based on the insured event

• The user can then make adjustments, e.g. update the data on Insurance Claims (Insurance Claim), create new claim allowance rows, or edit reinvoicing on the Sales tab (Sales) on the Maintenance Permission Line (Maintenance Permission Line) to the insured event.

• If the user has created a new Maintenance Permission (Maintenance Permission) or updated Maintenance Permission Lines (Maintenance Permission Line) to the claim, they must first update the F5 claim.

• After updating and reviewing the Insurance Claim, the user returns the financial settlement and performs the updates (Process/Update).

• They can also change the editable fields on the Financial Settlement tab and start the Update again. Changes on the Financial Settlement tab do not have a retroactive effect on the Insurance Event

• The user can then approve the settlement (Process/Approve) or create an invoice/credit note (Process/Release).

Total Damage Tab

Total Damage Tab (Total Damage) opens for a financial settlement type that has a Type for Contract with Services=Total Damage.

It is true that all fields must be selected for the given financial settlement type in the Financial Settlement Field Setup, otherwise they will not be filled in on the tab.

The bookmark contains the following fields – most of the fields are non-editable:

• Insurance Claim No. (Insurance Claim No.)

  • When the FIV was established, the system automatically filled in according to the insured event of the Total Loss type on the leasing contract. If there is no total loss insured event on the contract, the tab will be empty.

• Insurance Claim Type (Insurance Claim Type)

  • System added from an insured event

• Book Value Residual Value (Accountant Book Value Adjusted)

  • The system added from the insured event from the Financed Object Book Value field (Fin.Object Book Value)

• Indemnification (Insurance Claim Payment)

  • The system has added the amount of indemnity related to the insured event. On an insurance claim, it is like a calculated field

• Wreck Price – Insurance Claim (Wreck Price – Insurance Claim)

  • The system added from the insurance claim from the Wreck Price field (Wreck Price)

• Real Participation (Real Participation)

  • The system added from the insurance claim from the Real Participation field (Real Participation)

• Correction (Correction Amount)

  • System added from the insurance claim from the Correction field (Correction Amount)

• Reduction Amount (Reduction Amount)

  • The system calculates the amount of reduction to FIV by subtracting the difference in the amount to be reinvoiced excl. VAT minus Direct Reinvoicing to the Client Excl. Tax from the Reduction Amount from PU, see the figure below.

  • The field is editable. If the user changes the fields manually, the system will not recalculate them during the update, even if the input data changes!

• Invoice Line Amount (Invoice Line Amout)

  • The system will complete according to the insured event – the calculated value of the Purchase Price Excl. VAT from the lines of the maintenance permission for the given insured event

• Direct re-invoiced to the client tax-free (Direct Reinvoice Amount Excl.VAT)

  • The system completes from the field of the same name on the insurance claim

• Reinvoicing for Bill (Reinvoice Amount to be Settled)

  • The system calculates the field as the difference between "Amount to Reinvoice Excl. VAT" and "Direct Reinvoice to Client Excl. Tax" from the claims fields.

  • The field is editable. If the user changes the fields manually, the system will not recalculate them during the update, even if the input data changes!

• Comment for Customer (Comment fo Customer)

  • Editable text field

• Claims Balance (Claims Balance)

  • The system calculates Balance = Book Value Residual Value – Insurance Indemnity – Wreck Price – Actual Participation – Correction – Reduction Amount + Invoice Line Amount – Direct Re-invoicing to Client Excl. Tax – Reinvoicing for Billing, see the picture below.

  • Since Reduction Amount and Reinvoice for Bill are editable fields that enter the balance calculation, after changing them, it is necessary to perform a Financial Settlement Update to recalculate the Balance. These changes do not affect the claim. The balance before changing the editable fields is equal to the total sum of the claims.

• Reduction Amount

  • enters into the final invoice to the client from FIV

  • This is the same field that is on the card 2x, due to the sum of the total To be reinvoiced

• Real Participation

  • enters into the final invoice to the client from FIV

  • This is the same field that is on the card 2x, due to the sum of the total To be reinvoiced

• Total to be reinvoiced

  • The system adds up the Reduction Amount + Actual Participation

  • This value will be invoiced to the customer from the Financial Settlement

In addition to the invoice that is created by posting the FIV, a mass invoice can also be created from the lines of the maintenance permission on the basis of "Direct refactuation to the client without tax". A condition for the correct calculation of re-invoicing to a client from Financial Settlement is the correct entry of maintenance permission lines on the Sales tab of the Reinvoicing Method field: see Insurance Claim, Insurance Claim Payment (Insurance Claim Card, Insurance Claim Settlement tab) and Maintenance Permissions(Maintenance Permission Line Field Description).

Total Damage Tab – Theft – Posting

Posting of FIV settlements of the Settlement Type Total Damage type is performed by the standard functionality of not mapping individual fields in the Set-up Financial Settlement Fields and invoicing items to them.

Invoicing Entry Setup

Setting up a decision field (or the system will create a document type, invoice or credit note)

On the FIV card

Real Participation (Actual deductible), Reduction Amount (Reduction Amount), To be settled (To be reinvoiced in total) – the value of the fields is read from the Total Damage tab

The Release button has been modified:

• For the FIV Total Damage type, the following control was added:

  • If the value in the Claims Balance CZ: Claims Balance field is <> 0, the system will terminate the function and display an error message.

If the value = 0 in the Claims Balance field, the result of the settlement will always be an invoice.