Contract Booking

Contract Booking offers a comprehensive suite to facilitate a seamless and structured approach to manage contracts. From defining repayment plans to handling subsidy/subvention details, amortization and accounting postings to addressing dealer/broker commissions and depreciation. Contract booking includes:

• Repayment Plan to craft detailed payment schedules, ensuring clarity and transparency.

• Subsidy/Subvention for effective management of financial assistance within contracts.

• Amortization/Accounting Postings to establish precise accounting records and track amortization schedules.

• Dealer/Broker Commission to address compensation seamlessly through defining and managing commission structures.

• Depreciation ensures accurate representation of asset values over time .

Repayment Plan

The Repayment Plan is a central hub for managing the financial intricacies of contracts. Users can meticulously craft and tailor repayment schedules to align with specific financial preferences and contractual needs. This intuitive screen provides a comprehensive overview of payment structures, ensuring clarity and transparency throughout the contract term.

Contract Booking Repayment Plan

1. Start Date the date from when the rental calculation is required to be calculated. By default, current date is displayed.

2. Payment Mode refers to how the payments on a loan or credit agreement are structured. Two common payment modes are "advance" and "arrears."

   • Advance Payment Mode: In advance payment mode, the borrower makes the payment at the beginning of the specified period. For example, if you have a monthly payment schedule and the payment mode is set to advance, you would make the payment at the start of each month. This means that the payment covers the upcoming period of time.

   • Arrears Payment Mode: In arrears payment mode, the borrower makes the payment at the end of the specified period. Using the same example of a monthly payment schedule, if the payment mode is set to arrears, you would make the payment at the end of each month, after the period has elapsed.

3. Payment Frequency refers to how often you make payments on a loan or credit agreement. The frequency can vary depending on the terms of the agreement and the preferences of the lender and borrower. Payment frequency options include weekly, fortnightly, monthly, quarterly, semi-annually and annually.

   • Weekly: Payments are made on a weekly basis, with 52 payments in a year.

   • Fortnightly: Payments are made every two weeks, resulting in 26 payments in a year.

   • Monthly: Payments are made once a month, with 12 payments in a year.

   • Quarterly: Payments are made every three months, resulting in four payments in a year.

   • Semi-annually: Payments are made twice a year, with two payments in a year.

   • Annually: Payments are made once a year, resulting in a single payment in a year.

4. The Contract Duration in Months refers to the length of time for which a loan or credit agreement is valid. It represents the agreed-upon period during which payments will be made until the loan is fully paid off or the credit agreement is fulfilled. The contract duration can vary depending on the type of loan, the lender's terms, and the borrower's preferences. For example, a common contract duration for a personal loan or a car loan could be 12 months, 24 months, 36 months, or longer.

5. Interest Rate is a percentage that represents the cost of borrowing funds from a lender. It is applied to the principal amount of a loan or credit agreement. The interest rate is one of the key factors that determine the total cost of borrowing and influences the amount of interest you will pay over the loan term.

6. Lending Amount refers to the total amount of money being borrowed or financed by the lender or financial institution to fund a purchase or transaction in favour of a borrower. Simply it represents the amount of money that is being provided by the lender to the borrower.

7. Extension Days (Optional) refers to the allowance for extending the due date of a payment beyond the originally scheduled date.

8. Would you like to add tax? facilitates to choose whether tax will be included or not at the time of repayment plan generation. If tax is added then it is required to define a Tax Rate % for tax calculation, select option from Is Tax Inclusive drop down list (options Yes and No) and select option from Rental Component for which tax will be calculated. Options available for Rental Component include Rental, Interest and Principal.

Contract Booking Repayment Plan Tax

9. Users have the convenient option to control Income Posting preferences before generating rental and repayment plan calculations. By simply clicking the radio button for "Yes" or "No," users can signify whether they want income posting considerations to be factored into the calculations or not.

Contract Booking Repayment Plan Income Posting

10. Rental Input section is used to define any irregular rental payments other than regular rental payments. Click on the required radio button under Irregular Payments section of window. If user clicks on No the regular rental payments are calculated and if user clicks on Yes then user is required to input details of irregular payments. Term From and Term To are used to input starting term number and ending term number for irregular payment. Amount refers to the amount of rental payment. Irregular payment Type can be:

    • Structured means payments of different amounts in different intervals over a specified period i.e. term from and term to defined for respective irregular rental payments.

    • Interest Only where the borrower pays only the interest portion of rental for a specified period, without reducing the principal balance.

    • Auto refers that respective rental repayment is auto manically generated by system for respective term from and term to defined for irregular rental payment.

    • Zero where the borrower pays zero amount of rental for a specified period.

Repayment Plan Rental Input

11. Click on the Calculate button to view Repayment Plan details displayed under Rental Number, Opening Principal, Due Date, Rental Amount, Tax on Rental Amount, Rental Amount Exclusive of Tax, Rental Principal, Tax on Rental Principal, Rental Principal Exclusive of Tax, Rental Interest, Tax on Rental Interest, Rental Interest Exclusive of Tax, Periodic Interest, Tax on Periodic Interest, Periodic Interest Exclusive of Tax and Closing Principal columns.

Contract Booking Generated Repayment Plan

12. Income Posting details displayed under Sr.#, Rental #, Posting Date, No of Days, From Date, To Date and Amount columns.

Contract Booking Repayment Plan Generated Income Posting

Subsidy/Subvention

Subsidy/Subvention is a powerful tool designed to calculate and manage subsidies or subventions associated with contracts. By navigating through this screen, users can efficiently configure and assess financial support, offering a comprehensive solution for incorporating subsidies into their contractual agreements. Subsidy/Subvention screen provides a user-friendly interface to streamline and optimize your contract financials within the Flex platform. Subsidy amount is calculated on the bases of Subsidy Type. Subsidy Type refers to the type of subsidy/subvention used to calculate amount of subsidy. There are several types of subsidies that can affect the overall cost and terms of the contract. Users can choose between "Target Base Rate Subsidy," "% from Dealer and % from Manufacturer," depending on the source and structure of the subsidy.

Contract Booking Subsidy/Subvention

Target Base Rate Subsidy

Target Base Rate Subsidy involves a reduction in the interest rate charged on the lease or finance agreement to reach a specific target base rate. For example, if the standard interest rate for a lease is 5%, but the target base rate is 3%, a target base rate subsidy could lower the interest rate to 3% to align with the target.

Contract Booking Subsidy/Subvention Target Base Rate

1. Select option Target Base Rate Subsidy from Subsidy Type drop down list.

2. Payment Mode refers to how the payments on a loan or credit agreement are structured. Two common payment modes are "advance" and "arrears."

   • Advance Payment Mode: In advance payment mode, the borrower makes the payment at the beginning of the specified period. For example, if you have a monthly payment schedule and the payment mode is set to advance, you would make the payment at the start of each month. This means that the payment covers the upcoming period of time.

   • Arrears Payment Mode: In arrears payment mode, the borrower makes the payment at the end of the specified period. Using the same example of a monthly payment schedule, if the payment mode is set to arrears, you would make the payment at the end of each month, after the period has elapsed.

3. Payment Frequency refers to how often you make payments on a loan or credit agreement. The frequency can vary depending on the terms of the agreement and the preferences of the lender and borrower. Payment frequency options include weekly, fortnightly, monthly, quarterly, semi-annually and annually.

   • Weekly: Payments are made on a weekly basis, with 52 payments in a year.

   • Fortnightly: Payments are made every two weeks, resulting in 26 payments in a year.

   • Monthly: Payments are made once a month, with 12 payments in a year.

   • Quarterly: Payments are made every three months, resulting in four payments in a year.

   • Semi-annually: Payments are made twice a year, with two payments in a year.

   • Annually: Payments are made once a year, resulting in a single payment in a year.

4. Lending Amount refers to the total amount of money being borrowed or financed by the lender or financial institution to fund a purchase or transaction in favour of a borrower. Simply it represents the amount of money that is being provided by the lender to the borrower.

5. Residual Value refers to the estimated value of an asset at the end of its useful life or lease term. It is commonly used in leasing or financing agreements, particularly for assets such as vehicles, equipment, or real estate.

6. Financier Rate refers to the interest rate set by the lending institution providing the lease or finance agreement. This rate serves as the starting point for determining the subsidy, with the goal of adjusting it to meet the specified target base rate. For example, if the standard interest rate for a lease is 5%, but the target base rate is 3%, a target base rate subsidy could lower the interest rate to 3% to align with the target.

7. Term From, Term To and Amount are used to Add Rental Slabs before subsidy calculation. User can add more than one rental slabs if required.

8. Click on the Calculate button to view Subsidy Amount.

% from Dealer and % from Manufacturer

% from Dealer and % from Manufacturer refers to a subsidy provided by the dealer/manufacturer involved in the transaction.This subsidy is typically a percentage of the total cost of the lease or finance agreement and is offered by the dealer/manufacturer to incentivize the customer. For instance, if the dealer/manufacturer offers a 2% subsidy, this means that the dealer/manufacturer will reduce the overall cost of the lease or finance agreement by 2%.

Contract Booking Subsidy/Subvention % from Dealer and % from Manufacturer

1. Select option % from Dealer and % from Manufacturer from Subsidy Type drop down list.

2. Payment Mode refers to how the payments on a loan or credit agreement are structured. Two common payment modes are "advance" and "arrears."

   • Advance Payment Mode: In advance payment mode, the borrower makes the payment at the beginning of the specified period. For example, if you have a monthly payment schedule and the payment mode is set to advance, you would make the payment at the start of each month. This means that the payment covers the upcoming period of time.

   • Arrears Payment Mode: In arrears payment mode, the borrower makes the payment at the end of the specified period. Using the same example of a monthly payment schedule, if the payment mode is set to arrears, you would make the payment at the end of each month, after the period has elapsed.

3. Payment Frequency refers to how often you make payments on a loan or credit agreement. The frequency can vary depending on the terms of the agreement and the preferences of the lender and borrower. Payment frequency options include weekly, fortnightly, monthly, quarterly, semi-annually and annually.

   • Weekly: Payments are made on a weekly basis, with 52 payments in a year.

   • Fortnightly: Payments are made every two weeks, resulting in 26 payments in a year.

   • Monthly: Payments are made once a month, with 12 payments in a year.

   • Quarterly: Payments are made every three months, resulting in four payments in a year.

   • Semi-annually: Payments are made twice a year, with two payments in a year.

   • Annually: Payments are made once a year, resulting in a single payment in a year.

4. Lending Amount refers to the total amount of money being borrowed or financed by the lender or financial institution to fund a purchase or transaction in favour of a borrower. Simply it represents the amount of money that is being provided by the lender to the borrower.

5. Residual Value refers to the estimated value of an asset at the end of its useful life or lease term. It is commonly used in leasing or financing agreements, particularly for assets such as vehicles, equipment, or real estate.

6. Customer Rate, Manufacturer Subsidy Rate and Dealer Subsidy Rate refer to respective rates used to calculate subsidy amount. these rate are typically refer to a percentage of the total cost of the lease or finance agreement and is offered by the dealer/manufacturer to incentivize the customer. For instance, if the dealer/manufacturer offers a 2% subsidy, this means that the dealer/manufacturer will reduce the overall cost of the lease or finance agreement by 2%.

7. Term From, Term To and Amount are used to Add Rental Slabs before subsidy calculation. User can add more than one rental slabs if required.

8. Click on the Calculate button to view Subsidy Amount.

Amortization/Accounting Postings

Amortization is the process of spreading out a loan or an asset's cost over a set period by making periodic payments, typically consisting of both principal and interest. Amortization/Accounting Postings screen enables users to manage and calculate amortization details on the basis of amortization method used for calculation. Amortization Methods used for amortization details include "Straight Line," "Straight Line with Actual Number of Days," "Straight Line Pro Rata" and "Annuity - Actual Number of Days" method. In the context of loans such as mortgages or car loans each payment covers both interest charges and a portion of the principal balance.

Contract Booking Amortization/Accounting Postings

Straight Line

Straight Line amortization is a simple and commonly used method for allocating the cost of an asset or loan evenly over its useful life. In this method, the same amount of amortization expense is recorded for each period, resulting in a linear decrease in the asset's value over time.

Contract Booking Amortization/Accounting Postings Straight Line

1. Select option Straight Line from Amortization Method drop down list.

2. The Amount to Amortize refers to the amount of an asset's cost or loan that is allocated as an expense during a specific accounting period.

3. The Contract Duration in Months refers to the length of time for which a loan or credit agreement is valid. It represents the agreed-upon period during which payments will be made until the loan is fully paid off or the credit agreement is fulfilled. The contract duration can vary depending on the type of loan, the lender's terms, and the borrower's preferences. For example, a common contract duration for a personal loan or a car loan could be 12 months, 24 months, 36 months, or longer.

4. Start Date the date from when the amortization calculation is required to be calculated. By default, current date is displayed.

5. Click on the Calculate button to view Amortization Calculations displayed under Rental No, Start Date, Posting Date and Amount columns.

Straight Line with Actual Number of Days

The Straight Line with Actual Number of Days method for amortization calculations is used to calculate amortization expenses based on the actual number of days in each accounting period. This method provides a more precise allocation of expenses for assets that are used or depreciated on a daily basis.

Contract Booking Amortization/Accounting Postings Straight Line with Actual Number of Days

1. Select option Straight Line with Actual Number of Days from Amortization Method drop down list.

2. The Amount to Amortize refers to the amount of an asset's cost or loan that is allocated as an expense during a specific accounting period.

3. Start Date the date from when the amortization calculation is required to be calculated. By default, current date is displayed.

4. End Date the date till which the amortization calculation is required to be calculated.

5. Click on the Calculate button to view Amortization Calculations displayed under Rental No, Start Date, Posting Date, Amount and No. of Days for which respective amount is calculated columns.

Straight Line Pro Rata

The Straight Line Pro Rata method for amortization calculations is used to calculate amortization expenses based on the actual number of days in addition to any component added for calculation in each accounting period. For example, VAT can be added at the time of amortization calculations. This method provides a precise allocation of expenses/tax for assets that are used or depreciated on a daily basis.

Contract Booking Amortization/Accounting Postings Straight Line Pro Rata

1. Select option Straight Line Straight Line Pro Rata from Amortization Method drop down list.

2. The Amount to Amortize refers to the amount of an asset's cost or loan that is allocated as an expense during a specific accounting period.

3. The Contract Duration in Months refers to the length of time for which a loan or credit agreement is valid. It represents the agreed-upon period during which payments will be made until the loan is fully paid off or the credit agreement is fulfilled. The contract duration can vary depending on the type of loan, the lender's terms, and the borrower's preferences. For example, a common contract duration for a personal loan or a car loan could be 12 months, 24 months, 36 months, or longer.

4. Start Date the date from when the amortization calculation is required to be calculated. By default, current date is displayed.

5. End Date Date the date till which the amortization calculation is required to be calculated.

6. Component Name refers to the name of component added for amortization calculations.

7. Tax Rate refers to the tax rate required to calculate amount of tax for respective amount appearing under Amount column.

8. Click on the Calculate button to view Amortization Calculations displayed under Sr No, From Date, To Date, Posting Date, Amount, No. of Days for which respective amount is , Vat Amount and Balance Amount columns.

Annuity - Actual No of Days

The Annuity - Actual Number of Days amortization calculation method is used to distribute the cost of an asset/loan over its useful life based on an annuity formula, taking into account the actual number of days in each period. This method provides a more accurate representation of the asset's value over time by considering both the time value of money and the specific usage of the asset.

Contract Booking Amortization/Accounting Postings Annuity - Actual No of Days

1. Select option Annuity - Actual No of Days from Amortization Method drop down list.

2. Start Date the date from when the amortization calculation is required to be calculated. By default, current date is displayed.

3. Payment Mode refers to how the payments on a loan or credit agreement are structured. Two common payment modes are "advance" and "arrears."

   • Advance Payment Mode: In advance payment mode, the borrower makes the payment at the beginning of the specified period. For example, if you have a monthly payment schedule and the payment mode is set to advance, you would make the payment at the start of each month. This means that the payment covers the upcoming period of time.

   • Arrears Payment Mode: In arrears payment mode, the borrower makes the payment at the end of the specified period. Using the same example of a monthly payment schedule, if the payment mode is set to arrears, you would make the payment at the end of each month, after the period has elapsed.

4. Payment Frequency refers to how often you make payments on a loan or credit agreement. The frequency can vary depending on the terms of the agreement and the preferences of the lender and borrower. Payment frequency options include weekly, fortnightly, monthly, quarterly, semi-annually and annually.

   • Weekly: Payments are made on a weekly basis, with 52 payments in a year.

   • Fortnightly: Payments are made every two weeks, resulting in 26 payments in a year.

   • Monthly: Payments are made once a month, with 12 payments in a year.

   • Quarterly: Payments are made every three months, resulting in four payments in a year.

   • Semi-annually: Payments are made twice a year, with two payments in a year.

   • Annually: Payments are made once a year, resulting in a single payment in a year.

5. The Contract Duration in Months refers to the length of time for which a loan or credit agreement is valid. It represents the agreed-upon period during which payments will be made until the loan is fully paid off or the credit agreement is fulfilled. The contract duration can vary depending on the type of loan, the lender's terms, and the borrower's preferences. For example, a common contract duration for a personal loan or a car loan could be 12 months, 24 months, 36 months, or longer.

6. Interest Rate is a percentage that represents the cost of borrowing funds from a lender. It is applied to the principal amount of a loan or credit agreement. The interest rate is one of the key factors that determine the total cost of borrowing and influences the amount of interest you will pay over the loan term.

7. Lending Amount refers to the total amount of money being borrowed or financed by the lender or financial institution to fund a purchase or transaction in favour of a borrower. Simply it represents the amount of money that is being provided by the lender to the borrower.

8. Residual Value refers to the estimated value of an asset at the end of its useful life or lease term. It is commonly used in leasing or financing agreements, particularly for assets such as vehicles, equipment, or real estate.

9. Would you like to add tax? facilitates to choose whether tax will be included or not at the time of amortization calculations. If tax is added then it is required to define a Tax Rate % for tax calculation, select option from Is Tax Inclusive drop down list (options Yes and No) and select option from Rental Component for which tax will be calculated. Options available for Rental Component include Rental, Interest and Principal.

10. Rental Input section is used to define any irregular rental payments other than regular rental payments. Click on the required radio button under Irregular Payments section of window. If user clicks on No the regular rental payments are calculated and if user clicks on Yes then user is required to input details of irregular payments. Start Term and End Term are used to input starting term number and ending term number for irregular payment. Amount refers to the amount of rental payment. Irregular payment Type can be:

    • Structured means payments of different amounts in different intervals over a specified period i.e. term from and term to defined for respective irregular rental payments.

    • Interest Only where the borrower pays only the interest portion of rental for a specified period, without reducing the principal balance.

    • Auto refers that respective rental repayment is auto manically generated by system for respective term from and term to defined for irregular rental payment.

    • Zero where the borrower pays zero amount of rental for a specified period.

11. Income/Expense section is used to input any income or expense components that should be considered before the amortization calculations. User can input Component Name, it's Amount, whether respective components Is Income or Not and falls under Subsidy or Not.

12. Click on the Calculate button to view Amortization Calculations displayed under tabs for each income/expense component with columns i.e. Sr No, Rental Number, From date, To Date, Posting Date, Amount and Number of day for which respective amount is calculated columns.

Dealer/Broker Commission

Dealer/Broker Commission serves as a tool for calculating and managing dealer or broker commissions associated with contracts. Through this screen, users can efficiently configure and assess commission structures, ensuring accurate compensation for dealers or brokers involved in the transaction.

Contract Booking Dealer/Broker Commission

1. Payment Mode refers to how the payments on a loan or credit agreement are structured. Two common payment modes are "advance" and "arrears."

   • Advance Payment Mode: In advance payment mode, the borrower makes the payment at the beginning of the specified period. For example, if you have a monthly payment schedule and the payment mode is set to advance, you would make the payment at the start of each month. This means that the payment covers the upcoming period of time.

   • Arrears Payment Mode: In arrears payment mode, the borrower makes the payment at the end of the specified period. Using the same example of a monthly payment schedule, if the payment mode is set to arrears, you would make the payment at the end of each month, after the period has elapsed.

2. Payment Frequency refers to how often you make payments on a loan or credit agreement. The frequency can vary depending on the terms of the agreement and the preferences of the lender and borrower. Payment frequency options include weekly, fortnightly, monthly, quarterly, semi-annually and annually.

   • Weekly: Payments are made on a weekly basis, with 52 payments in a year.

   • Fortnightly: Payments are made every two weeks, resulting in 26 payments in a year.

   • Monthly: Payments are made once a month, with 12 payments in a year.

   • Quarterly: Payments are made every three months, resulting in four payments in a year.

   • Semi-annually: Payments are made twice a year, with two payments in a year.

   • Annually: Payments are made once a year, resulting in a single payment in a year.

3. Start Date the date from when the amortization calculation is required to be calculated. By default, current date is displayed.

4. Lending Amount refers to the total amount of money being borrowed or financed by the lender or financial institution to fund a purchase or transaction in favour of a borrower. Simply it represents the amount of money that is being provided by the lender to the borrower.

5. Discount Rate is a percentage that represents the cost of borrowing funds from a lender. It is applied to the principal amount of a loan or credit agreement. The interest rate is one of the key factors that determine the total cost of borrowing and influences the amount of interest you will pay over the loan term.

6. Minimum Commission refers to the minimum amount of commission that must be allocated as compensation for dealers or brokers involved in the contract.

7. Percentage of Basic Commission refers to the percentage rate applied to calculate the total commission amount.

8. Residual Value refers to the estimated value of an asset at the end of its useful life or lease term. It is commonly used in leasing or financing agreements, particularly for assets such as vehicles, equipment, or real estate.

9. Start Term, End Term and Amount are used to Add Rental Slabs before commission calculation. User can add more than one rental slabs if required.

10. Click on the Calculate button to view Commission amount.

Depreciation

Depreciation screen is utilized for calculating depreciation expenses associated with assets over their useful lives. This enables users to accurately allocate depreciation costs, facilitating comprehensive financial planning and reporting.