Rollover Financing 

Use

You can use this function to execute a rollover when the lessee wants to exchange the leased objects and switch to a new lease with a new financing product before the end of the existing lease. The fee for the early termination of the lease is financed in the new contract. For this purpose, you have to create the new financing product under the contract class Loan. You have to create the new product and the corresponding financing product manually in the follow-up quotation. You can make the change at any time during the current lease. Once you execute this change, you cannot execute any other change processes for this leased object.

You execute the change process at item level, which means that the changes apply to individual contract items. The process can be executed only for the full quantity of the leased objects. You can execute this change process manually only by choosing Actions; you cannot execute this change process as an option.

This change process is defined in Customizing under the technical name ROLF.

Prerequisites

●      You have not activated automatic contract inception in Customizing for Customer Relationship Management, by choosing Financial Services → Leasing → Change Processes → Basic Settings for Change Processes → Make Settings for Change Processes (you have not set the Automatic Acceptance indicator).

●      You have an active lease with the status Released.

●      You have created a financing product with the contract class Loan in the master data of the product (Financing Details tab page).

Example

A lessee wants to prematurely end the existing lease for 10 Mark II widgets and sign a new lease for 20 Mark III widgets. The early termination fee for the 10 Mark II widgets is financed in the new contract.