Activation Group Definition

Users must define activation groups by entering information during contract inception, when the Contract Status is "Define".

To define the activation group:

1. Open the activation group. The activation group opens on the Definition tab by default.
2. The following information is in the General Information section:
   • The ID is automatically generated.
   • If required, the Activation Group Name can be modified and a Description can be entered.
   • The ROU Start Date and ROU End Date fields are set based on the dates entered in the lease component, but can be modified if needed. Note that for subleases, these dates cannot be outside the range of the dates of the Referenced Activation Group.
   • The End of Term Intention is the decision or action that the lessee intends to take as a lease contract approaches its original expiration (ROU End) date. It can be manually or automatically set to one of the following values:
     • To Be Determined: Default value for this field, indicating that no decision has been recorded.
     • Natural Lease End: Select this option if the lease will end at the expected date, without any Purchase Option, Termination Option, Transfer of Ownership, or Casualty.
     • Return / Vacate: This value is automatically set if a Termination Option is likely to be exercised, or if a casualty event has been performed. Note that if there is a Termination Option and Transfer of Ownership is selected, the End of Term Intention is set to "Return / Vacate".
     • Purchase: This value is automatically set if a Purchase Option is likely to be exercised, or the Transfer of Ownership field is selected.
     • Not Applicable: This value may be set by the Default Field Values configuration, or if the activation group was created before the introduction of this field.

     Note: Users will receive notifications (based on configuration in Financial Organization Structure) prior to the Contractual End of Term Date if the End of Term Intention has not been set.

   • The Contractual End of Term Date specifies by when the lessee must declare their End of Term Intention (set in the activation group), as per the contractual agreement. If it was not set in the lease component, it is automatically set to the ROU End Date.
   • The Approver Comment field displays comments entered in the Leave Comment pop-up when the activation group is approved.
3. In lessee contracts, review the following information in the Asset Information section, and edit them as required:
   • FMV/Unit (Reassessed)
   • The field Salvage Value/Unit (Reassessed) is the estimated residual amount of the asset at the end of its useful life. It is used in the asset depreciation calculation if Transfer of Ownership is selected or if a Purchase Option term is likely to be exercised. This value can also be modified during an activation group event with the Modification Reason "Terms & Conditions Reassessment".
   • Transfer of Ownership
   • Specialized Asset