Automatic Update

The FRV process enables the calculation and editing of the final residual value of a vehicle at any time during an agreement's lifecycle

New FRV values are required to be calculated automatically by the system using CAP data as a basis.

The remaining Depreciation would then be spread over the rest of the contract, using the following calculation:

Remaining Monthly Depn = Current NBV (Net Book Value) - New FRV / Remaining periods.

A new Final Residual Value (FRV) is may be recalculated at the following stages of an agreement:

1. At Quotation stage
2. At Contract Start
3. AT AN (ANNUAL) FRV REVIEW
4. When a contract is informally extended

There are two very important factors to be taken into consideration when the FRV is being calculated.

1. Safety factor application

   The system offers the facility to apply a safety factor % reduction to CAP valuations at all points where the CAP valuation is called. These points are as follows:

• At initial quote stage
• At contract start
• At FRV review
• At informal extension.
• At transfer to VSB

2. Manual Adjustment

   The system offers the facility to apply and record manual adjustments made to the quoted FRV. The manual adjustment is created at either quotation or contract upload and then remains with the vehicle throughout its life and taken into account whenever the FRV is recalculated.

• The adjustment cannot be changed at any revaluation stage.

When the Automatic Update option is taken the system updates those contracts that meet the following selection criteria:

1. The Contract Status is Live
2. The Review calculation type is set to AUTO
3. The FRV under review field set to YES
4. The Review date entered matches the Effective date
5. Book FRV not equal to zero
6. The Book FRV is not equal to the existing FRV

If the Contract status is not LIVE an export file is automatically produced. The Export file generated to the local PC drive should contain the following:

1. CRM Registration Number
2. Fleet Registration Number
3. Vehicle master Record - Fleet Model Description
4. Vehicle Master Record - Vehicle Description
5. CRM Vehicle Record status
6. Daily Rental Details - Currently At Location
7. Daily Rental Details - Currently Owned Location
8. Daily rental Details - DR Group
9. Fleet Agreement status
10. Fleet current agreement number
11. Fleet current agreement end date (before Extension)
12. Vehicle master record - registration date
13. Vehicle Master Record Current Odometer
14. Vehicle Master Record - Date Odometer Entered
15. Fleet Agreement Lease Type
16. Market User vehicle field - Date to Dealer
17. CRM User Vehicle Field - Date In stock
18. CRM User Vehicle Field - Date Sold
19. Vehicle Master Record - status Code
20. Vehicle Master Record Magic number
21. Vehicle Master Record Variant Details
22. Vehicle disposal Record - Date sold
23. Fleet Agreement - annual Contract distance
24. FRV Obtained from CAP lookup (Exceptions - shown as Zero if a value not obtained)
25. Review Type: Either AUTO or MAN

The file name format is as follows: UPDUUUUDDMMYYYY.csv (where UPD denotes Update, UUUUU denotes the userid and DDMMYYYY is the date).

The system then performs six processes:

1. Updates the Current FRV with the Proposed FRV.

2. Cuts-off the current deprecation profi line to the period up to the Review date. The system locates the profi line that has a from period less than or equal to the Effective period and a to period that is greater than or equal to the Effective period. The Total should then be recalculated to be equal to the cumulative depreciation per above. This may result in a depreciation adjustment.

3. Creates a new depreciation profi line for the remaining depreciation from the Review Date. A new profi line is written out, which has a from equal to to+1 from above and a to, which is equal to the contract Period. The total depreciation value for this new line is calculated as the New FRV minus the NBV at the point of cut-off. The system determines the NL expense codes from existing profi lines.

4. The agreement audit file records the automatic FRV update.

5. The Effective Review Date is recorded at agreement level.

6. The following FM agreement fields are initialised after the update is complete:

   • BOOKFRV - Proposed FRV
   • FRVSOURC - Source
   • CAPMONTH - Black/Red Book month
   • CAPYEAR - Black/Red Book year
   • FRVREV - FRV Under Review Y/N ?
   • REVTYPE - Automatic or Manual

   The following FM agreement field is not initialised after the update is complete:

   • REVDATE - Review Date

What do you want to do?

• View the Automatic Update form
• View the full FRV process

See also:

• Create Review Batch process
• Export Batch Details process
• Import FRVs process

To access the Automatic Update process:

1. From the Master Menu, select the Contract Administration option and Company required.

   The Contract Administration Menu is displayed.

2. Select the Administration Options option.

   The Administration Options Menu is displayed.

3. Select the FRV Options option.

   The FRV Review menu is displayed.

4. Select the Automatic Update option

Automatic Update form

This form is divided into four parts that are as follows:

Title Bar

In addition to displaying the form name the Title Bar displays other useful identification criteria and buttons.

Menubar and Toolbar

• File

• Help

Menu	Icon	Description
File > Exit		Exits the Automatic Update form without processing. The ALT F4 shortcut is an alternative way of exiting the form.
File > Process		Updates those contracts that meet the above selection criteria. If the Contract status is not LIVE an export file is automatically generated to the local PC drive. Updates the Current FRV with the Proposed FRV. Cuts-off the current deprecation profi line to the period up to the Review date. Creates a new depreciation profi line for the remaining depreciation from the Review Date. The agreement audit file records the automatic FRV update. The Effective Review Date is recorded at agreement level. Initialises the relevant fields.
Help >		Provides online access to context sensitive help for the current application using the default browser.

Automatic Update Dialogue Box

Review Date: A Start of Month date to signify when the FRV change is effective from.