Novated & Associate Leases

Setting up novated leases and associate lease quotes

Associate Leases

Set-up the item

Deduction Details

  • Total Deduction - enter the total amount that will be paid back to the associate.

  • Compress - un-checked

  • Inertia - un-checked

  • Cycles - enter the number of pay periods the employee wants to spread the payroll deductions over

Disbursement Details

  • Disbursement Type - 'Recurring'

  • Supplier - 'Associate Leases'

  • Reference - 'Registration Number'

  • Payee - 'Employee'

  • Bank Account - add and link the associate's bank account details to the item

  • Attach the supporting documents to the item (e.g. Associate Lease contract)

  • Status - 'Active'

Process steps

  • Pay Runs / Pay Run - post the pay run record

  • Receipts / Allocate - receipt and post the pay run

  • Scheduler / Job - sp / approvals / autoBuildClaims runs automatically

  • The stored Item / Reference populates into the "Reference" field of the created claim (i.e. Registration Number)

  • Contracts / Claim - the job creates a posted claim for the receipted amount

  • BECS / Disbursements (ABA) - create a BECS batch and download the ABA file

  • Employee disbursements are shown as one record per claim.

  • The associate will receive one banking payment per pay run.

  • The ABA reference shows the stored Contracts / Claim "Reference" (i.e. Registration Number)

  • Banking Software - import the ABA file and confirm it for payment

When the pay runs and claims for this item are complete, no further deductions or disbursements will be made. It can now be suspended.

Associate Lease Managed

Set-up the item

Deduction Details

  • Total Deduction - enter the total amount that will be paid back to the associate.

  • Compress - un-checked

  • Inertia - un-checked

  • Cycles - enter the number of pay periods the employee wants to spread the payroll deductions over

Disbursement Details

  • Disbursement Type - 'Recurring'

  • Supplier - 'Associate Leases'

  • Reference - 'Registration Number'

  • Payee - 'Employee'

  • Bank Account - add and link the associate's bank account details to the item

  • Attach the supporting documents to the item (e.g. Associate Lease contract)

  • Status - 'Active'

Process steps

  • Pay Runs / Pay Run - post the pay run record

  • Receipts / Allocate - receipt and post the pay run

  • Scheduler / Job - sp / approvals / autoBuildClaims runs automatically

  • The stored Item / Reference populates into the "Reference" field of the created claim (i.e. Registration Number)

  • Contracts / Claim - the job creates a posted claim for the receipted amount

  • BECS / Disbursements (ABA) - create a BECS batch and download the ABA file

  • Employee disbursements are shown as one record per claim.

  • The associate will receive one banking payment per pay run.

  • The ABA reference shows the stored Contracts / Claim "Reference" (i.e. Registration Number)

  • Banking Software - import the ABA file and confirm it for payment

When the pay runs and claims for this item are complete, no further deductions or disbursements will be made. It can now be suspended.

Direct Link Associate Lease Managed

Below is a sample of how an item should be set-up for a Direct Link Associate Lease Managed.

Use this set-up if you want to link your vehicle contract directly to the item. Changes to the contract's budget will be reflected in the Pay Run details of the item. Once linked, all contract changes are done in the contract. The item record will reflect the information from the vehicle contract. If you try to edit a linked item in the Employees / Item tab, you will get an alert message.

Process

Quote

  • Create a vehicle quote for an ALM

  • Create an item and populate the Quote ID

  • Scheduler job SP - Update Item from Vehicle Quote will update the item details

Accept

  • Accept the vehicle quote.

  • Scheduler job SP - Update Item Car Profile from Vehicle Contract will add the contract link to the Car Details section.

  • Scheduler job SP - Update Item from Novated Contract will update this value based on the contract's data.

Pay Runs

The normal pay run processes still apply to direct lease car items.

Manage

  • The vehicle contract runs like any other novated lease.

  • The vehicle contract will carry a budget balance throughout its life.

  • All payments and reimbursements are created using the standard novated lease processes.

  • Scheduler job SP - Update Item from Novated Contract will continue to update the item based on changes to the contract's data.

Report

  • ALM contracts are included in Employer FBT Reports

  • ALM contracts are included in Employee Depreciation Reports

Finalise

  • The standard novated lease finalise process applies here.

  • The surplus or deficit can be rolled into the next pay run.

Car Details

  • Quote ID - Add your vehicle Quote ID here. Example: 105603

  • Contract ID - If a contract has been created, add the Contract ID here. The scheduler job SP - Update Item Car Profile from Vehicle Contract will add the contract link when it runs. Example: 102012

Deduction Details

Package Item: Associate Lease Managed

  • Total Deduction - This field can be left to be populated by a scheduler job. The scheduler job SP - Update Item from Vehicle Quote will update this value for active quotes. The scheduler job SP - Update Item from Novated Contract will update this value for active contracts.

  • Compress - Leave un-checked. This should be the default setting for this field.

  • Inertia - Leave un-checked. This should be the default setting for this field.

  • Cycles - The scheduler job SP - Update Item from Novated Contract will update this value based on the contract's data.

  • Status - The scheduler job SP - Update Item from Novated Contract will update this value based on the contract's data.

    • If contract "Contract Start" is blank and "Suspend Date" is blank then 'Accepted'

    • If contract "Contract Start" is populated and "Suspend Date" is blank and "Reg No" is not 'ORDER' then 'Active'

    • If contract "Suspend Date" is populated and no pending billings exist then 'Suspended'

    • Example: Active

Disbursement Details

  • Disbursement Type - A disbursement type is not required. Disbursements originate from the vehicle contract.

  • Supplier - Set a default supplier for this field. The field should be set to read-only. The supplier name is descriptive only and is not used for transaction processing. Example: Your Company Name

  • Reference - The scheduler job SP - Update Item from Novated Contract will update this value based on the contract's data. Example: Reg Number

  • Substantiation Required - This can be set to yes if you want to create an event to store agreement documents. It is not required.

Payment Details

  • Payee: Supplier

Item Summary

Contract ID - The scheduler job SP - Update Item to link Novated Contract will link the vehicle contract to the item when it runs. Example: 110101

Configuration Tables

sppackageitemprofilecars

Field

Value

quote_flag

'yes' - The Quote ID field will be enabled.

contract_flag

'yes' - The Contract ID field will be enabled.

contractitemflag

'yes' - These items will have a direct link contract.

depreciationreportingflag

'yes' - These items require an annual depreciation report.

sppackageitems

Field

Value

packageitemcode

Create a short code for the benefit. Example: ALM

package_name

Displays as Employees / Item "Package Item" and is shown in the selection list. This field also defaults into the Employees / Item "Description" field (which can be edited by the user). Example: Associate Lease Managed

benefit_type

Set as type-1 as GST is added to the Lease. Value: 'type-1'

captype

Select the required captype. This is used in FBT calculations and reports. If the benefit is exempt, leave this field as NULL. Value: 'primary'

gst_flag

Set to 'yes' if the benefit will contain GST and the Employer will hold GST Invoices. When an item is made 'Active', the contract budgets will contain GST. Value: 'yes'

addgstflag

Set to 'no'. This feature is not currently in use. Value: 'no'

taxinvoiceflag

Value: 'yes'

spprofiletablename

Set as 'sppackageitemprofilecars' if the benefit is for a Novated Lease or an Associate Lease. Leave as NULL in all other cases. Value: 'sppackageitemprofile_cars'

employeecontributionflag

Employees / Item "Employee Contribution" is enabled if this is set as 'yes'. Do this if an Employee Contribution or Post Tax amount can be set for the benefit. E.g. Novated Leases or Associate Leases. Value: 'yes'

sppackageitem_defaults

Field

Value

totaldeductiondefault

Defaults into Employees / Item "Total Deduction". Leave as 0 in most cases. Set a value if a known annual amount can be applied. E.g. Packaging Fees. Value: 0.00

compressflagdefault

Defaults into Employees / Item "Compress". Checked items are calculated for the remaining pay periods in the current FBT year. Value: 'no'

inertiaflagdefault

Inertia functions are not suitable for an Associate Lease. Value: 'no'

cycles_default

Defaults into Employees / Item "Cycles". Use this to set a default for specific items. E.g. an Annual Fee that is charged once a year. This is mostly left as 0. Value: NULL

disbursementtypedefault

Defaults into Employees / Item "Disbursement Type". Value: NULL

supplieriddefault

Defaults into Employees / Item "Supplier". Most benefits will be set with a specific supplier. Value: populate

supplieridedit_flag

Set this as 'no' if Employees / Item "Supplier" should not be editable. Value: 'no'

substantiationflagdefault

Set this either way. Set as 'yes' if you want to create a Contract Substantiation Event when an item is made 'Active'. Value: enum('yes','no')

Create an Associate Lease quote

Qualifiers

An employee would like an Associate Lease.

Process

Navigate to Fleet / Administration / Quotes

Click on New

You will be navigated to the Quotes / Contract tab

  • Type Code - enter 'AL'

  • Term (Months) - enter the term in months

  • Contract KMs - Enter the expected KMs the vehicle will do over the term. This affects the calculated costs for budgets like Fuel, Maintenance and Tyres.

  • Delivery State - Enter the vehicles State here.

  • Client Code - enter the Employer's Code

  • Comprehensive Insurance - leave this checked if the lease includes Comprehensive Insurance

  • Policy Owner - choose 'Driver Policy'

  • Insurer - choose the Insurer if known, but it's not used in Salary Packaging processes

  • Driver ID - enter or lookup the Employee's ID or

  • Surname - enter the Employee's Surname

  • Firstname - enter the Employee's First name - the system will find and suggest this Employee's record if it exists.

  • FBT Type - choose between 'Statutory' or 'Operating'

  • Bus. Use % - if the FBT Type is 'Operating', enter the Business % here

  • Use ECM - leave this checked

  • Help Debt - ignore this field, your Package Statement refers to the Employees / Contact Help Debt field for this detail

Navigate to the Quotes / Vehicle tab

Select vehicle details

  • Model Year - if the model year is missing, select the closest match

  • New / Used - change this to 'Used' if the vehicle is used. This affects the calculated costs for budgets like Fuel, Maintenance and Tyres.

  • Odometer - all used vehicles will need an odometer reading entered here. This affects the calculated costs for budgets like Fuel, Maintenance and Tyres.

  • Master Quote Lock - check this, all other locks will check. Your changes will not be re-calculated by the system.

  • List Price - enter the list price

  • FBT Value - if the FBT Type is 'Statutory', enter the FBT Value here.

  • FBT Value Lock - If the FBT Type is 'Operating', un-check the lock and leave this field to calculate automatically.

Navigate to the Quotes / Finance tab

  • Months Deferred - update to '0'

  • Luxury Car Charge - review this amount and remove it if it is not applicable. The value can be displayed on the quote to inform the Associate, but is not used in the packaging process.

  • Residual Inc GST - update to '0' unless there is a residual to use in the calculation.

Navigate to the Quotes / Lease tab

  • Review the budgets and modify the values if required.

  • Click on Accept

Activate a contract

Enter Vehicle Details

Navigate to Contracts / Vehicle

  • Supplier Ref - enter the Dealer's invoice number

  • Build Date

  • VIN

  • Engine No

  • Click on Save

Enable Billing

Navigate to Contracts / Events

  • Create a 'Registration Change' event

Navigate to Contracts / Billing

  • Contract Start

  • Contract End

  • Start Periodic - confirm the calculated start date or update

  • Click on Save

Create the Finance Payment Schedule

Navigate to Contracts / Payments

  • Supplier Ref - enter the Financier's reference number

  • Check and adjust payment amounts, term and dates if required

  • Click on Save

Enter Other Payment Schedules

Create schedules for other payments required on the contract

Activate the vehicle contract

Qualifiers

  • This is a direct link vehicle contract

  • The vehicle purchase has been settled

  • The vehicle has been delivered

Double the first billing for Associate or Novated Leases

Qualifiers

  • You have added a new Associate or Novated Lease that needs a catch-up deduction made in the first billing

  • The Item is active and the Billing records have been created

Process

Navigate to Packaging / Employees

  • Employee ID - enter or lookup the required employee record

Navigate to Current Packages tab

  • Package Item - click on the hyperlink of the first record to navigate to the item record

Contract ID - click on the contract hyperlink to navigate to the contract record

Navigate to Lease tab

  • Note the Amount and GST recorded for the Pre-Tax and Employee Contribution budgets

  • Click on New

  • Enter those amounts into the new record.

  • Click on Save

  • Go to the last period

  • Click on Edit

  • Update the amounts on this record to be 0.

  • Click on Save