This is used to calculate deferred revenue using acquisition fees, RVI, & Gap values. It was specifically written for one ALMSys customer, but you may find that it could work in different situations.

The whole idea of deferred revenue is to put off profits on a new lease and string them out over the life of the lease. This screen calculates deferred revenue in 3 steps. (Note: If you make any changes to the values on this screen, you must click the

Step 1: Calculating the RVI Premium

RVI default information is stored on the Lease Company maintenance screen, RVI / Deferred Revenue page. If you use the

The RVI Calculation is:

Example: Lease end value is $11,225.00, insured residual percentage is 75%, premium percentage is 0.6942%, and surplus percentage is 3%. The calulation would be:

11225 * 0.75 * 0.006942 * (1.03) = 60.2. So, $60.20 is the RVI premium.

Step 2: Deferred Revenue Amount

The deferred revenue total amount calculation is:

Example: Acquition fee is $490.00, gap fee is $95.00, RVI premium is $60.20. The calculation would be:

490 - 95 - 60.2 = 334.8. So, $334.80 is the total deferred revenue amount.

Step 3: Monthly Revenue

The monthly revenue calculation is:

Example: Deferred revenue amount is $334.80, term is 36 months. The calculation would be:

334.8 / 36 = 9.3. So, $9.30 is the monthly deferred revenue amount. In order to make the total number of payments exactly equal to the total deferred revenue amount, ALMSys calculates the (monthly amt * (term - 1)), subtracts that from the total deferred revenue, and places it into the

Amortization Schedule

Based on the

DealDefRev