Car Benefit Items: Create a car benefit item with a novated lease link

Creating car benefit items with novated lease links and auto-updates

Create a car benefit item with a novated lease link

Qualifiers

  • Your system has been set-up to allow direct link Novated Lease contracts

  • An employee would like to package a Novated Lease

  • You have created a vehicle quote for this

Gather information

  1. Navigate to Quotes / Contract

  2. Select the required quote

  3. Print and save this vehicle quote

  4. Navigate to Employees / Current Packages

  5. Select the screen report 'Vehicle Quote Details'

  6. Click on Print

  7. Open and save this report

Create the item record

  1. Navigate to Employees / Item

  2. Click on New

  3. Use information from the quote and the report generated above to enter the required information into the item

  4. The item should be set with the following defaults:

    • Compress - un-checked

    • Inertia - un-checked

    • Status - 'Quoting' or 'Pending'

    • Disbursement Type - 'Claim'

    • Supplier - 'Employee Disbursement'

    • Reference - enter the Quote ID of the vehicle quote (no spaces, no other characters. E.g. '123456').

    • Payee - 'Employee'

    • Payment Method - 'Direct Credit'

  5. Add the employee's bank account details. Check the claim field.

  6. Claim - must be checked

  7. Click on Save

Next Steps

When the employee has signed off on the vehicle quote paperwork, activate the car benefit item.

Create a car item and link to a vehicle contract

Qualifiers

  • Your system has been set-up with direct link vehicle contracts

  • An employee would like to package a Novated Lease or an Associate Lease

  • You have created a vehicle quote for this

  • You have accepted the vehicle quote

Create the item record

  1. Navigate to Employees / Item

  2. Pay Cycle - must be the same as the quote's pay cycle.

  3. Click on New

  4. Package Item - select a package item for a car benefit (I.e. Novated Lease, Associate Lease)

  5. Car Details

    • Quote ID - may already be populated. If not it will populate automatically when the contract is added.

    • Contract ID - enter or lookup the Contract ID of the vehicle contract

  6. Compress - un-checked

  7. Inertia - un-checked

  8. Status - 'Quoting' or 'Pending'

  9. Disbursement Type - 'Claim'

  10. Supplier - 'Employee Disbursement'

  11. Click on Save

  12. Item Summary

    • Contract ID will populate automatically.

Next steps

Activate the vehicle contract.

Create a car item and link to a vehicle quote

Qualifiers

  • Your item car profiles have been configured

  • An employee would like to package a Novated Lease or an Associate Lease

  • You have created a vehicle quote for this

Gather information

  1. Navigate to Quotes / Contract

  2. Select the required quote

  3. Print and save this vehicle quote

Create the item record

  1. Navigate to Employees / Item

  2. Click on New

  3. Package Item - select a package item for a car benefit (I.e. Novated Lease, Associate Lease)

  4. Car Details

    • Quote ID - enter or lookup the Quote ID of the vehicle quote

    • Contract ID - if the quote has already been accepted, the contract will populate automatically.

  5. Click on Save

Direct Novated Lease Item

Below is a sample of how a benefit item would be set-up for a Direct Link Novated Lease.

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 merely reflects how the vehicle contract is running.

Note: If you try to edit a linked item in the Employees / Item tab, you will get an alert message.

Car Details

  • Quote ID - Add your vehicle Quote ID here. Links to the vehicle quote if there is no recorded Contract ID. Example: 105603

  • Contract ID - Add your vehicle Contract ID here. Links to the vehicle contract once recorded. Example: 102012

Deduction Details

  • Package Item - Novated Lease

  • Total Deduction - This field can be left to be populated by a scheduler job. See Direct link car benefit auto updates.

  • 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 - This field can be left to be populated by a scheduler job. See Direct link car benefit auto updates.

  • Status - This field will be updated automatically. See Direct link car benefit auto updates. Example: Active

Disbursement Details

  • Disbursement Type - The item is linked to the vehicle contract. Payments and reimbursements for the vehicle contract are created using the standard novated lease processes and are not driven by packaging activities. Example: Claim

  • Supplier - Set a default for this field. Example: Novated Lease Supplier

  • Reference - Enter the Reg Number or other reference you would like to see in reports. This field can be left to be populated by a scheduler job. See Direct link car benefit auto updates. Example: Reg Number

Payment Details

  • Payee - Attach the supporting documents to the item (E.g. Quote, Signed NL Agreement). Example: Supplier

Item Summary

  • Contract ID - Links to the vehicle contract. Example: 110101

Process

The process steps for this type of item is as follows:

  1. Pay Runs / Pay Run - post the pay run record

  2. Receipts / Allocate - receipt and post the pay run

A direct novated lease will carry a budget balance. All payments and reimbursements are created using the standard novated lease processes.

Set-Up

  • sppackageitemprofilecars: quote_flag and contract_flag both set to 'yes'

  • sppackageitems: gst_flag set to 'yes'

  • sppackageitem_defaults: substantiationflagdefault set to 'no'

Direct Link Novated Lease

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

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.

Note: 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 a Novated Lease

  • Create an item and populate the Quote ID

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

  • 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

Novated Lease contracts are included in Employer FBT 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 - Novated Lease

  • 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 - Leave this blank. The item supplier is not used when processing transactions for novated leases.

  • 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 - Leave this blank. The item payee is not used when processing transactions for novated leases.

  • Payment Method - Leave this blank. The item payment method is not used when processing transactions for novated leases.

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

Database References

sppackageitemprofilecars

Field

Value

Description

quote_flag

'yes'

The Quote ID field will be enabled.

contract_flag

'yes'

The Contract ID field will be enabled.

contractitemflag

'yes'

Yes as these items will have a direct link contract.

depreciationreportingflag

'no'

No as these items do not require an annual depreciation report.

sppackageitems

Field

Value

Description

packageitemcode

NL

Create a short code for the benefit.

package_name

Novated Lease

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).

benefit_type

'type-1'

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

captype

primary

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

gst_flag

'yes'

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.

addgstflag

'no'

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

taxinvoiceflag

yes

spprofiletablename

'sppackageitemprofile_cars'

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

employeecontributionflag

yes

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.

sppackageitem_defaults

Field

Value

Description

totaldeductiondefault

0.00

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.

compressflagdefault

'no'

Defaults into Employees / Item "Compress". Checked items are calculated for the remaining pay periods in the current FBT year.

inertiaflagdefault

'no'

Inertia functions are not suitable for an Associate Lease.

cycles_default

NULL

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.

disbursementtypedefault

NULL

Defaults into Employees / Item "Disbursement Type".

supplieriddefault

NULL

supplieridedit_flag

'no'

Set this as 'no'. No supplier should be added.

substantiationflagdefault

no

Set this as 'no'. Substantiation comes from the quote details and transaction attachments.

Direct link car benefit auto updates

Auto Updates

See also the scheduler job section Direct link car benefit auto updates.

Update Item to link Novated Contract

If your item has a stored Quote ID and the quote is accepted, this job will add the newly created contract to the item.

Updates:

  • Employees / Item "Contract ID" is populated from the Car Details "Contract ID"

Update Item from Novated Contract

Once your item has a direct link to a vehicle contract, the following fields will be updated by a scheduler job to reflect the vehicle contract details.

Check your Client wiki details for customisations to this job.

Updates:

  • Description - updates to show Contracts / Contract "Description"

  • Total Deduction - updates to show Contracts / Lease "Total Inc. GST" for the next pending billing multiplied by Contracts / Billing "Total Billings"

  • Cycles - updates to show Contracts / Billing "Total Billings"

  • Start Date - updates to show Contracts / Lease "Period Date" for the first billing

  • End Date - updates to show Contracts / Lease "Period Date" for the last billing

  • Deduction Per Pay - updates to show Contracts / Lease "Total Inc. GST" for the next pending billing

Status:

  • When Contracts / Contract "Contract Status" is 'Order', the item shows as 'Pending'

  • When Contracts / Contract "Contract Status" is 'Active', the item shows as 'Active'

  • When Contracts / Contract "Suspend Date" is populated and there are no remaining pending billing records, the item shows as 'Suspended'

Other updates:

  • Disbursement Type - is updated to 'Claim'

  • Reference - updates to show Contracts / Contract "Reg Number"