The Apply Rental Updates From Log form is accessed via Fleet System Management / Apply Rental Updates From Log . Running this option actions any (P)ending Log transactions so that the relevant Agreements are updated to a ( C )onfirmed status.
Apply Rental Updates From Log form is used in conjunction with the following three processes in order to control Retail Price Index rental adjustments:
Accessed via Fleet System Management / Miscellaneous Options / Retail Price Indices and is used to create, edit and delete retail price indices which are used as part of thecalculation to create a revised rental (for qualifying agreements) that reflects a percentage of the increase in the Retail Price Index.
The Retail Price Index may be sourced from the Financial Times which reports on any movements two months in arrears, (for example, the February 2001 retail price adjustment is printed in April 2001 issues). This information is manually transferred and held within the Retail Price Index Maintenance file.
This program runs down the Agreement file and selects those agreements flaggedas "RPI upliftable" which are due for updating within the next 60 days. The selected agreements are displayed and maintained within the Maintain Rental Uplift Log file (accessed via Fleet System Management / Miscellaneous Options / Rental Update Log File ).
This form presents any Agreements that match the selection criteria from the Create RPI Rental Update Log process, displaying the Revision Date, the Old and New Rental and a text field for a brief summary. The Status flag of C or P denotes whether the RPI update is ( C )onfirmed or is still ( P )ending. RPI updates may also be amended within this form.
The Apply Rental Updates From Log confirms the RPI adjustments and creates additional lines in the Profi (Agreement Profile) Tab accessed via the Contract Review form.
On the first anniversary of the contract the Period Rental elements are increased by the RPI percentage and additional lines are written for the remainder of the contract period, (Income Budgets are also updated).
On the second anniversary the file is updated to reflect both RPI movements and the agreement is adjusted for the remainder of the contract period.
Security Checks
To ensure the RPI increase is not applied by mistake a series of controls are implemented.
RPI 'n' Months Ahead
The rental log run in February 2001 should only flag those contracts with an anniversary in the April 2001 invoicing period.
From Company 0 within System Management / System Maintenance / System Parameters there is a RPI 'n' Months Ahead field within the RPI Tab. This is a period indicator which defaults to a value of 2 . (i.e. run the RPI process in February for April rental renewals).
RPI Indicator Must Be Set-up
An error trap is included which ensures that Sales Ledger Monthly Invoicing is not possible unless the relevant RPI Indicator exists in the year/month index. If this indicator is missing then the following form message is displayed (within Contract Administration / Invoicing procedures / Monthly ) on entry RPI Indicator not set. This prevents monthly rental invoicing until the RPI index table is updated and the RPI uplift applied.