Main Menu - Payment - Payoff
Used to terminate leases and to quote payoffs. DO NOT USE THIS FOR LOANS.
Layout / How To
The payoff screen is a two-tabbed notebook. The Choices tab is where you will terminate the lease, and the Payoff Quote tab represents a spreadsheet on which you may create payoff quotes for turn-ins and purchases.
Payoff Choices Grid
This page starts with the payoff choices grid. All of the payoff choices available to this lease will be displayed. Payoff choices are derived by what has been billed and what is outstanding to be paid. The first payoff choice is ALWAYS the last fully paid invoice.
Based on the current payment history and amortization schedule, ALMSys will position the grid to what it thinks should be the payoff. Payoff quotes are good until another transaction is posted against the payment history. (Remember, there is no daily interest for leases.)
Items that appear in red in the grid cannot be selected for payoff purposes. These items represent possible future billings or past billings with subsequent billings that have late fees.
Below the choices grid is a message area. ALMSys may issue any of the following messages:
This lease has a zero balance. Once a lease has been paid off in full, it may not be paid off again.
This lease has a credit bureau delinquency override date of mm/dd/yyyy. While this does not affect the payoff, it will affect the information provided to the credit bureau. Upon payoff, you may wish to review the credit bureau screen. You may need to alter the credit bureau delinquency override date (or remove it).
This lease is paid ahead by $x.xx. This amount has been factored into the payoff choices presented. However, if you need to refund any or all of this amount, then please post a negative adjustment for the amount of the refund and then return to this screen. For leases that are paid ahead, you may need to issue a refund to the lessee before terminating the lease.
This lease has LEV and the last payment has been billed. This means that the payoff must be made for the term (last) line in the amortization schedule. If you need to payoff the deal for a previous due date, AND you are balancing by using the Payment Distribution Report, then you will need to: 1. Purge the last billing. 2. Debit the Lease Car Interest account by $x.xx 3. Credit the Lease Car Asset account by $x.xx. LEV is only present on standard lease calculations. This calculation defers interest to the next payment. When the lease reaches the end, the last payment's interest is added to the asset balance in order to reach the lease end value. If you are balancing your lease portfolio by the Payment Distribution Report and not balancing by receivables, then you need to heed this message.
Depending on when the payoff occurred, you may want to backlog billing(s). Doing so will allow you to collect more income. ALMSys has recognized that it is past the last due date and an additional billing (or additional billings) could be done.
Determine the Type of Payoff
The next section down represents the payoff choices for this lease. Payoff choices are:
1. Completed Lease. This is a lease that has gone to normal lease end termination.
2. Early Payoff. This is used when a vehicle is being turned in before normal lease end termination.
3. Repossession. This is used when a vehicle is repossessed, typically due to lack of payment or failure to provide adequate insurance.
Upon termination, the security deposit is either kept (in the event of repossession) or returned to the lessee (possibly via the lessor). This distribution is indicated in the Security Deposit area.
Determine the Payoff Amounts and Post Date
The next section down is where you determine the payoff amounts and posting date for the payoff. These amounts are filled in for you by selecting your payoff choice from the grid. However, you may override these amounts as needed.
Repossessions do not follow any of the rules. Payoffs for repossessions are usually in two parts: 1) For the initial auction or sale of the vehicle, and 2) The resulting write-off of the remainder of the unpaid asset. ALMSys allows multiple payoffs to occur. In fact, you may post as many payoffs as necessary to get to a zero asset balance. For the initial sale of the vehicle, fill in the amount of the sale in the Principal Amount field and set the Post Date to the date on which the repossession occurred.
For subsequent payoffs for a repossession, you may post interest-only payments. A check box will appear for this situation and you must check it in order to post an interest-only payoff.
Depreciation and Leveraged Financing
For a lease, there may be up to three items that need termination: the lease, the depreciation, and the leveraged financing. All three items may be terminated from this screen. To terminate depreciation, enter the last day of the month for which you wish to depreciate. To terminate leveraged financing, enter the date on which the financing was (or is to be) paid off.
Optional Other Termination Actions
The next section allows you to select the lessee's termination decision for future reference. Also, you may use ALMSys to track lot inventory.
Once a lease has been paid off as a repossession, a section in red will appear which will allow you to print a Repossession Summary Report. Use this report in court in order to recover as much of your expenses as possible.
The last section on this screen is where you would click to post your payoff choice. If you are repossessing, you will be asked if you desire a Repossession Summary report. If you select yes, then the report will display after the payoff has been posted
This page represents a spreadsheet for quoting payoffs. This spreadsheet consists of the following tabs:
DATA. DO NOT ALTER anything on this tab. ALMSys fills in this sheet with lease information and selected payoff data. Fields on this sheet are to be referenced on the subsequent tabs. For example, you would refer to the lease account number as ='DATA'!B4. You may include the solid column and row "$" indicator in your cell references, such as ='DATA'!$B4 or ='DATA'!$B$4
Turn In. Information regarding lease turn-ins should be calculated here.
Purchase. Information regarding lease purchases should be calculated here.
The spreadsheet template for payoffs is kept in the ALMSysSQL\Documents folder and is named, "PayoffWorksheet.xls". This is a Microsoft Excel spreadsheet. When you get into the Payoff screen, a copy of this spreadsheet is placed into your ALMSys user folder. This is done so that multiple people may do payoffs at the same time without running into problems with two people trying to edit the same spreadsheet at the same time.
If you want to alter the template layout, you may do so from here or you may use Excel to edit the template directly. If you chose to edit the template using Excel, you will need to reload the Payoff screen in order to refresh the template layout for this payoff. If you chose to edit the template fro here, use the button that is located above the grid to overwrite the template with the new design.
The spreadsheet on the payoff screen is NOT as smart as Excel, does not function exactly as Excel, and does not have all of the editing features that Excel has. However, is does have enough features to get the job done. (Multiple cell selection is not supported.)
Editing is done directly in the cell itself. To edit a cell, click on it to select it and then click on it again to edit it. When done editing, press Enter, then either move to another cell or click the button. Whenever it does not appear that the information on the sheet is correct, click the recalculate button to see if that fixes it. The value of the selected cell will always appear above the grid. (Sorry, but you cannot edit that field.)
Most of the buttons above the grid are self-explanatory. Hover your mouse over the button to get a pop-up of what the button does. (Note that, for now, the border style is disabled. This is because the grid does not support advanced border styles. I am hoping that future versions of this grid will allow for more border styles.)
Some editing functions are available on the right-click pop-up menu.
Numeric formatting is a bit different. Click on all of the numeric formats desired for the selected cell and then click Apply. The format will stay as selected so that you may go to other cells and apply it there as well.