Oracle Lease Management Overview

Lease Life Cycle :

a) Credit Checking of the Lessee (Customer)
b) Author a Contract between Lessor and Lessee
c) Bill the Lessee during a Contract Term
d) Receive Payments from Lessee during the term of the contract
e) Lessee interacts with Lessor during the term of contract.
i. May inquire regarding his payments or next invoice
ii. May request for some additional Product information
iii. May dispute an invoice.
iv. On the basis of Lessee’s interaction, Lessor’s agent may initiate certain tasks internally or send some notifications

f) At the end of Contract term, as per T&C of the contract
i. Lessee may return the Asset to Lessor
ii. Lessee may purchase the Asset
iii. Lessee may renew a contract
g) Lessor sends quote to the lessor if there is a purchase option as per T&C
i. May be an early termination Quote
ii. End of Term Quote
h) Asset is returned to the Lessor
i. Asset may become part of inventory which can be re-leased later
ii. Asset may be remarketed

OLM integrates the power of Oracle’s ERP, CRM and Contract Applications for complete leasing solution.

Key Business Flows:
OLM has designed the following Key Business Flows to address all the scenarios of a typical Lease Life Cycle

1. Credit Application to Booking
2. Invoice to Receipt
3. Asset return to Disposal
4. Quote to termination
5. Inquiry to Resolution
6. Period Open/Close - This is purely Accounting setup

Oracle APPS responsibilities for OLM:

All the Key Business Flows except Inquiry to Resolution are performed by
Logging into OLM HTML Version. Lease Super User module is used

OLM has number of concurrent programs for processing data within OLM and transfer of data to other modules like AP, AR, GL etc. All these concurrent Programs are accessed by using Lease Administrator responsibility which is in Oracle Forms Version.

Lease Center Agent Responsibility in Oracle Forms Version is used for the inquiry to Resolution Business Flow.

1. Credit Application to Booking:

Modules involved: AP, FA, GL, Inventory, Contracts Core and Installed Base
A Third party Lease Price modeling software, SUPER TRUMP performs stream generation and Lease Pricing

· Credit Approval
· Authoring a Contract
· Vendor Payment
· Asset Tracking

For some clients, Credit Application of the Lessee( Customer) is processed in a separate system.
Approved contract is entered in OLM. Contract information is available different subsystems. Most of the times, Contract has to be imported by drawing information from those subsystems.
In a few cases, we may be entering a Contract from scratch

2. Invoice to Receipt:
Modules involved: AR, Collections, GL, Contracts for Service

Billing functionality identifies items to be passed onto lessee.
Billable items are as follows

· Cost of the equipment – multiple assets
· Fees incurred like Customer Service Fee, Documentation Fee
· Expenses like Insurance premium, Installation charges
· Taxes like Sales Tax, VAT

Billing amounts may be generated automatically or manually
Lessee may have assets at multiple locations under same lease contract
Various Billing requirements like Usage Based Billing
Payments from Lessee – Receipts to Lessor
Transfer of funds – Lessee or Lessor may initiate
Mode of Payments: Direct Debits, Checks, Wire Transfers or Credit Cards
Notifications to Customers
Collections – missing Payments, delinquent, litigations etc


3. Quote to Termination:

Modules involved: AR, FA, CRM Foundation, Workflow and GL

Alternatives when a Lease Contract expires

· Manage a repurchase
· Restructure a Contract
· Terminate a Contract

OLM processes restructured contracts through Contract authoring and Booking
Request for a renewal or termination quote
Complete termination of Contract
Update Asset records

When termination quote for sale is accepted, assets are retired in Fixed Assets

4. Asset return to Disposal:
Modules involved: iStore, Marketing Online, Advanced Pricing, CRM Foundation

· Asset returns
· Remarketing

Asset evaluation process
Shipping instructions for returned Assets.
Returns may be accounted as scrap, or inventory to be remarketed
Remarketing manages disposition of Assets when a Lease expires.
Sale of Asset to a 3rd Party or internal remarketing efforts


5. Inquiry to Resolution:
Modules involved: CRM Foundation, Telesales, E Business Center

Customer Service representative tracks a customer inquiry through its resolution.
Communicate to appropriate authorities regarding tasks to be performed for resolving a customer query
Define processes to manage specific requests such as:
· Insurance quotes
· Claims
· Contract transfers
· Equipment exchanges
· Asset modifications
· Lease Renewals

Components of CRM Foundation used in OLM

· Resources
· Sales Representatives
· Remarketers
· Assignment Groups
· Interaction History
· Fulfillment

Summary of the modules used in OLM:

Functional
Financials : GL, AP, AR and FA
Contracts: Contracts core, Contracts Service
CRM: CRM Foundation, Installed Base, Telesales, iStores, Marketing Online
Distribution: Inventory, Advanced Pricing
(Telesales – Customer Service and Collections Functionality)

Technical
Workflow – Processes Approvals and Notifications
XML gateway – Integrates with Lease Price Modeling Software
Advanced Inbound and Outbound – Customer Service, Call Center functionality, Universal Workques, Fulfillment Server