Asset Casualties

If an asset casualty occurs, the activation group to which it belonged must be updated to write off ROU asset balances. Perform an activation group-level terminating event to enter an asset casualty, which automatically creates a Casualty term on Terms & Condition. Note that if the contract has been set up with a vendor split, then this information must also be specified in the Casualty term.

After merging the casualty event, the Activation Group Status changes to "Active (Pending Termination)". During this time, you can post the final casualty payment and any other outstanding documents, but are no longer able to enter any other lease event.

Note: Asset casualties cannot be entered for short term leases or low value leases because no assets were created.

To enter an asset casualty:

  1. Open the required activation group and create an event. Use the regular event procedure, but note the following:
    1. In the Create Event pop-up, enter the required fields as usual, as well as the following specific settings:
      • Do not select a Modification Reason.
      • Select the Termination Event checkbox.
      • In the Termination Reason drop-down, select "Casualty".
      • Enter a Penalty Amount.
  2. On the Terms & Conditions page, a new Casualty term has been automatically added.
    1. Click to make the following changes in the Payment Split section if applicable:
      • Update the vendor split percentages.
    2. Exercise the Casualty term.
  3. At any time, click Delta to review all the changes. You can use the Select Revision drop-down to view the details from previous revisions.
  4. Click Generate Schedules to view the change in the schedules.
  5. Click Send to Assessment, which will also automatically regenerate the schedules.
  6. Although there are no recognition journals for casualty events, you can click Journals to view the recognition journal entries for other revisions of the activation group.
  7. Click Approve and review the changes in the Event Modifications Summary pop-up. Click Approve Modifications to approve the changes.
    • Send the draft back for changes by clicking Rework.
  8. Click Confirm Classification.
  9. Click Activate to make this draft the new active version of the activation group, or click Rework to send the draft back for changes.

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