I. INTRODUCTION:

The Leasing module is comprised of a suite of programs that facilitate the recording and tracking of long-term vehicle leases. These leases normally span multiple years. Contracts are closed on a monthly basis, the information is cloned, and new contracts are opened. The revenue for leasing contracts is recognized at the time of opening the contract, which is unique to leasing. (Revenue for daily rentals and multiple invoiced rentals in CARS+ is posted after contracts have closed.)

General Notes:


II. DEFINITIONS:

Physical Master Contract - The actual lease paper signed by the customer. A Physical master contract may have multiple Master Contract records in CARS+.

Master Contract - This is the contract record in CARS+ that contains all of the conditions that are common to the individual leasing contracts (known as "son" contracts because of their relationship to the “Master” contract.) Data includes:

Son Contracts - These are the actual rental lease contracts. A Master Contract may have multiple son contracts.


III. REQUIRED SET-UP STEPS

A. VEHICLES

All leasing vehicles must be distinguished from the day-to-day rental fleet by using Fleet Type Codes. To create them use the Edit Fleet Type Codes program listed on the Fleet Control Files menu. In the field "Lease Use" enter “Y” as shown in the example below. For all other Fleet Type Codes that are not leasing fleet, this field should be set to “N”.


OPTION: __ EDIT FLEET TYPE CODES

1 Fleet Type L
2 Description LEASE VEHICLES ONLY
3 Lease Use? Y

In-fleeting new lease vehicles: When in-fleeting new vehicles, enter the leasing Fleet Type Code on the vehicle record of each lease vehicle in the Vehicle Inventory Control file. An illustration of a partial page 1 screen is shown below. Note Field # 25.

OPTION: __ VEHICLE INVENTORY CONTROL
(Page 1 of 3)
1 Vehicle # 22 VIN
2 License Entity 23 Engine Blk #
3 License 24 Security Code 25 Fleet Type L
4 Year Model/Prod 00/00 26 Notes
5 Model 27 Damage

To change the Fleet Type: Once a vehicle record has been saved, only those users who are allowed access to the field may change it. Access is granted in the User Access File record.


B. RENTAL RATES

Create a record in the rate file for lease rentals using the Edit Rental Rules/Rates program on the Rate Control Files Menu.

This rate will be used to apply the rental rules to the “son” contracts. The rates entered on the second page of the record will be overridden by the monthly rate in the Master Contract record.

NOTE: The rate structure must have a monthly tier. An example of a partial screen is shown below:

OPTION: __ EDIT RENTAL RULES/RATES
1 Rate set L 29 Comm Y/N 30 No Invoice 65 Currency
2 Product LEASE 31 Comm Cat 32 Min days 33 Chg to 66 LOCSRC
3 Date 06-01-04 34 Max days 35 Chg to EXMP
4 Time 000036 Intercity chg to 67 Dys/Mo
5 Comment LEASE RATE ONLY 68 Hide?
6 Rate type 37 Earliest pickup MON 38 Time 0000
(unused) Miles Meth 39 Latest pickup MON 40 Time 0000
Dy: 7 8 100 9 41 Earliest return MON 42 Time 0000
Wk: 10 11 700 12 43 Latest return MON 44 Time 0000
Mn: 13 14 1000 15 45 Problem return chg to
XW: 16 17 18 46 End method
19 Free miles/hour 47 Early-late(ELBO 48 Package rate
20 Grace minutes 49 Start Day MTWTFSS 56 Block FT

C. LOCATIONS

Various fields in the Location Record must be set.

Page 3; Field 25. CLONE LEASE RA'S AT MONTH END? (determines when the lease rentals (son contracts) should be rolled over)

Y = Yes. All lease RAs should be closed and cloned at month end.

N (or blank) = No. All leases should be closed and cloned on the anniversary of their open date.

Page 3, Field 26. TRANSACTION TYPES ALLOWED

Indicate which types of transactions are allowed at the location, enter:

L = Lease rentals only

B = Both daily and lease rentals


Page 3, Field 37. NF PRINT LIBRARY #

Refer to the chapter for other fields that are available for lease logic settings.


D. CUSTOMERS

A bill-to customer must be referenced when setting set up a Master Contract. The bill-to customer record must have a Federal Tax ID number entered on page 3, Field 1. This is required.


E. TAX DOCUMENT LOGIC

The only way to print invoices for leases is through the Batch Print Tax Document program which is part of the Tax Document logic. Refer to the chapter of this manual titled Appendix - Tax Documents for a discussion of the logic and the list of steps necessary to set it up.


IV. OPERATIONS GUIDE TO LEASE CONTRACTS

Master Contract Entry begins the process of creating lease contracts. The Master Contract contains all the conditions that are common to all son contracts such as:

Open Lease Contracts is used to open son contracts. The son contracts are the actual revenue producing leases. Because a Master Contract has a final close date, son contracts cannot be opened after or extend beyond the Master Contract's ending date. (Of course, the Master contract can be edited and thus all related son contracts will be affected.) Vehicles used must be designated as lease type vehicles (Fleet Type = L) in the Vehicle Inventory Control record.

Delivered Lease Vehicles is used to enter a delivery of a vehicle to the customer once the son contracts have been created. This changes the contract's status from "hold" to "open". The driver's information is entered.

The son contracts are rolled over (cloned) for monthly invoicing using the following programs:

Lease Odometer Entry is used to record the monthly odometer reading and fuel tank readings if needed.

Lease Rental Cloning is the program that actually closes the son contracts each month, clones the information, and opens new son contracts.

Move RA Among Lease Contract is used to move a son contract from one Master Contract to another.

Vehicle Exchanges on Lease RAs:

If the Master Contract is defined so that exchanges are allowed, there are two types of vehicle exchanges that can occur on leasing contracts (son):

Temporary: the original vehicle needs minor repair and will be returned to the renter when completed. Once the repair work is done, the renter needs to be contacted to do an exchange back into the original car. To accommodate this, the exchange search will allow a user to select a rental agreement in RAOPEN.

Permanent: the original vehicle has been permanently replaced.

Exchanges will appear on the exchange section of Operation DBR, on the lease cloning report and the lease vehicle report



V. LEASING REPORTS

The Lease Cloning Report produces a report of all the son contracts opened and closed during the dates requested. In addition to the dates, other selections on the report include Master Contract, Customer, and servicing location.

The Lease Sweeping Report produces a report of rental agreement details for all son contracts of a Master Contract. Only those contracts that have not had an invoice printed appear on this report.

The Lease Vehicle Report shows vehicle information for vehicles on all son contracts for a Master Contract.

The Vehicle Movement Report is vehicle oriented and lists opens, closes, exchanges and non-rev tickets for vehicles during the requested dates.

The Physical Lease Report lists all Master Contracts that share the same physical lease number.

The Lease Revenue by Employee Report sorts transactions first by employee, next by Master Contract number, and then by RA number.


VI. OTHER CARS+ REPORTS

Many fleet and revenue reports within CARS+ have the ability to separate the daily rental fleet from the leasing fleet. Among these reports are:

License Expiration Report
Vehicles Purchased Report
Vehicle Presale Report
Fleet Mix Report
Fleet Mileage Report
Vehicle Status Report
Vehicles Due In Report
Revenue Analysis Report
Current Utilization Report
Daily Performance Report
Average Utilization Report
2-Month Performance Report
12-Month Performance Report


VII. INVOICING AND POSTING LEASE RA'S

A. Invoicing: Because the leasing logic relies on the Tax Document logic to print monthly invoices, invoices must be printed prior to posting via the Accounting DBR. Use the Batch Print Tax Document program to print lease invoices.

An illustration of the program screen is shown below. Note that Field 10 is used to choose whether you are processing Lease RAs or daily rental RAs.

OPTION: __ BATCH PRINT TAX DOCUMENT

1 Start Date 07-09-04
2 End Date 07-09-04
3 Location TUS
4 Customer # ALL (one customer#, or ALL)
5 Cost Center ALL (one cost center, ALL or NONE)
6 Travel Agents 3 (1 = only travel agents,2=no travel agents,3=both
7 Agrupo 3 (1 = only agrupo, 2=non-agrupo, 3=both)
8 RA# ALL
9 Employee ALL
10 Rental Type 2 (1=daily rentals,2=leases)
11 Extra Charges 3 (1=lease time only,2=Lease extra charges,3=both)
12 Print Date 07-09-04 Printer: /dev/tty
13 Address 1 (1=Primary address, 2=Bill-to address)
14 Lease# ALL
15 Invoice for (1 open charges, 2 close charges, 3 both)
16 Opening Location: TUS
17 Starting Close Date: EARLIEST
18 Ending Close Date: LATEST
19 Text:
Starting NF Number: 00000207

1SAVE 2 3ERASE 4 5BACKUP 6 7HELP 8

Several other fields in the above program are specifically designed for lease RAs. Please refer to the chapter of this manual titled Batch Print Tax Documents for more information.


B. Posting: The Accounting DBR allows you to post lease RAs separately from daily rental RAs. Note Field 19 shown in bold below.

OPTION: __ ACCOUNTING DBR AND POSTING

1 Start Date 07-09-04 17 Airport Commission B
2 Start Time 0000 (C=comm, N=non-comm, B=Both)
3 End Date 07-09-04 18 Print Dist. Summary Y
4 End Time 2359 19 Lease RA's Only B
5 Location ALL (L=Lease, N=Non-Lease, B=Both)
6 RA Type(s) ALL
7 Detail/Summary D 20 Truncate Decimals N
8 Option Detail N
9 RA Post Value N (Y=posted, N=Unposted, B=both)
10 Do Posting N
11 Drawer ALL
12 RAs B (O=owned, F=foreign, B=both)
13 Vehicles B (O=owned, F=foreign, B=both)
14 Prt Grp Summary N
15 Print/Display P Printer: /dev/tty
16 Res Types ALL

When posting revenue for a son contract, revenue will be credited to the opening location of the RA -- not the controlling location of the Master Contract.

Please refer to the chapter of this manual titled Accounting DBR for more information.

Voiding Lease RAs:

For Hertz Brazil operations, the following restrictions are placed on Voiding a RA for users whose default location has a posting company number other than 00 (zero zero) or blank:

a. Voiding a lease RAs is blocked unless the RA has been cloned at least 12 times.
b. Voiding RAs for Fleet Management vehicles is blocked unless the RA has been cloned at least 12 times.

If either of the above are attempted, the following message will display.

RA HAS NOT BEEN INVOICED FOR AT LEAST 12 MONTHS, VOIDING NOT ALLOWED


CLOSING BLOCKED FOR NON CORPORATE USERS

For Hertz Brazil operations, the following restrictions are placed on users whose default location has a posting company other than 00 (zero zero) or blank. They are blocked from manually closing the following:

Lease RAs that have not been cloned at least 12 times.
RAs for Fleet Management vehicles that have not been cloned at least 12 times.

In either situation is attempted, the following message will display:

RA HAS NOT BEEN INVOICED FOR AT LEAST 2 MONTHS, CLOSING NOT ALLOWED.