Activation Group Terms & Conditions

Lease Administrators and Accountants must determine which terms (defined in the lease component) are likely to be exercised for each activation group. Additional information must also be completed in each term.

At contract inception, this page can be modified when the Contract Phase is "Setup" and the Activation Group Status is "Define".

Note: If there are multiple terms with a guaranteed residual value (GRV) and/or expected GRV amount, only the values for the last term selected will be considered. For example, if there is a GRV defined in both the base rent and the extension and both are likely to be exercised, the GRV for the extension will be used. If only the base rent is selected, then the GRV for the base rent will be used.

To maintain the terms and conditions:

  1. Open the activation group, and click Terms & Conditions in the left-panel.
  2. The available terms are listed in the table. Click the Likely to Exercise checkbox for the terms that will be used.

    Note: All Base Rent, IDC, and Prepaid terms are automatically selected, and cannot be cleared. Free rent and cash incentive terms are also selected by default, but can be unselected if required.

  3. Click for each term that is likely to be exercised, and complete the following information:
    • In the field Expected GRV Payment/Unit, enter the expected GRV payment if it is known. If payments are in advance, this payment will occur on the first day after the last accrual period. If payments are in arrears, this payment will occur at the same time as the last payment.

      Note: This field is only used under the accounting standards ASC 842, IFRS 16, and GASB 87.

    • Modify the Lessor Notification Date if required.
    • Modify the First Payment Date or Last Payment Date if required.

      Note: If any payment dates of a term are manually changed before activation, then these dates will not shift automatically if the Activation Date is shifted during activation.

    • Once the notification has actually been sent, you can return to the term and select Notification Sent to Lessor to indicate that it has been done.

See also:  

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