Create Review Batch Details

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.

The Create Batch Details option is a function that is part of the Annual FRV Review process. Annual FRV review is something of a misnomer as this process should be carried out at least on an annual basis but may be performed quarterly or monthly. An FRV Review Batch is generated using this menu option.

For a vehicle to be included in the batch and have a value, it must meet the following criteria:

1. It must be Live
2. It must have a valid Lease type i.e. the Include in FRV Review? checkbox must be ticked for all required Lease Types.

For a vehicle to have a value calculated and set to Automatic, the folowing criteria must be met:

1. It must have a valid VARIANT code
2. It must have have a Registration Date
3. It must have a Contract mileage not equal to zero

The valuation source is based on:

1. Black/Red Book if End date minus today is less than 12 months
2. Monitor if end date minus today is greater than 12 months
3. Blank if Manual

The system calculates a Proposed FRV for each eligible vehicle (see above) and updates the Vehicle motor record with the following:

1. The Proposed FRV.
2. The Valuation source. Either CAP New Monitor or CAP Black Book or CAP Red Book
3. The CAP valuation Month and Year.
4. Review Type. If a Proposed FRV can be calculated automatically then the system populates this field with Automatic, else Manual.
5. Sets FRV under review to Yes

The Export Batch Details option is then used to generate a file to the local PC drive for vehicles affected by the Create Batch Details process.

What do you want to do?

• View the Create Review Batch form
• View the full FRV process

See also:

• Export Batch Details process
• Automatic Update process
• Import FRVs process

To access the Create Review Batch Details:

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 Create Review Batch option

Create Review Batch 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 Create Review Batch Details form without processing. The ALT F4 shortcut is an alternative way of exiting the form.
File > Process		The system calculates a Proposed FRV for each eligible vehicle and updates the Vehicle motor record with the following: the Proposed FRV. ; the Valuation source (Either CAP New Monitor or CAP Black Book or CAP Red Book); the CAP valuation Month and Year; the Review Type (if a Proposed FRV can be calculated automatically then the system populates this field with Automatic, else Manual); sets FRV under review to Yes. The system displays a form providing a summary of output results (records read, records with calculated FRV, records with zero FRV).
File > Reset		Taking this option resets the batch i.e. if the batch has been processes then this options resets the flag against the each record in the batch.
Help >		Provides online access to context sensitive help for the current application using the default browser.

Create Review Batch Details Dialogue Box

Review Date: A Start of Month date to signify when the FRV change is effective from. This date is recorded against the vehicle record.