Terms - Equipment Contract Module

The Terms page is where you will add and manage any terms associated with your equipment contract, including both original and renewal terms.

Keep the following information in mind:

If you enter key date data on a term or covenant, a key date record will be automatically created on the Key Dates page.
The End Date, Notice End Date, and Tickler Date generate email alerts and notifications in the system.

You can link an expense schedule to a term via the Edit Expense Schedule window.

To navigate to the Terms page:

Navigate to Equipment Contract > Abstract Info > Terms.

Use the links in the Navigation Pane on the leftmost side of the page.
Follow a procedure below.

Add Terms in Bulk

You can add terms in bulk using the Contract Terms Wizard. This saves you time in scenarios where amendments require adding multiple term options at the same time.

This method should be used when you have multiple renewal options that are the same length. If your term options have different lengths, follow the Add an Individual Term procedures below.

Your user class must have Delete-access to the Page Access > Sub-pages > Contract Terms Wizard (Global) security setting to use this feature.

To use the Contract Terms Wizard:

Click Add Item.
This displays in the Actions menu on the right side of the page.
A dialog box opens, asking if you want to use the Contract Terms Wizard.
Select Yes.

The Contract Terms Wizard opens.
Enter the number of term options you want to create in the Number of Options field.
Select the option type from the Option Type field.
Enter the term length in years in the Term Length (years) field.
Enter the notice period using the Notice Period fields.
Select the unit of measurement you are using for your rentable area from the Area Unit field.
Click Generate Contract Terms.

The window closes. Your new contract terms appear in the Contract Terms List.

Add an Individual Term

To add an individual term:

Click Add Item.

This displays in the Actions menu on the right side of the page.

A dialog box opens, asking if you want to use the Contract Terms Wizard.
Click No.

The dialog box closes.
Enter the term number of the term you are creating in the Term Number field.

Enter the term number in 2-digit format—for example, the first term would be entered as 01.
Select the term type—for example, original or renewal—from the Type field.

Create a new group or category.
Select the term status from the Status field.

According to ASC 842 regulations, you must include all likely options in your accounting. If a term option is likely, select Likely from the field.
Select the Include in Accruals? check box to flag this term as needing to be included in your accrued expense savings.
Select the key date group of the key date you want to associate with your term from the Group field.

Create a new group or category.

Groups are the first level of organization. These are the parents of types, and grandparents of categories. Use groups, types, and categories to simplify reporting.
Select the type of key date from the Type field.

If you want to create a new type, follow the Add a Type procedures. Types are the second level of organization in Lucernex. Types are the children of groups, and parents of Categories. Groups, types, and categories are used to simplify reporting.
Enter a description of the key date in the Description field.
Enter the begin date in the Coverage Period Begin Date field.

Select Calendar to open the date picker.
Enter the end date in the Coverage Period End Date field.

Select Calendar to open the date picker.

The Action fields and the Notice check boxes will be used when you decide to take action on an option, and when notice has been sent or received.
Enter the number of days, weeks, months, or years in advance that you can take action on the key date in the Earliest Notice Period fields.

The Earliest Notice Period fields are used to calculate the value of the Earliest Notice Date field, using this formula:

Earliest Notice Date = Coverage Period Begin Date - Earliest Notice Period - 1.
Enter the number of days, weeks, months, or years you have to submit notice after the notice period begins in the Last Notice Period fields.

A notice is a warning that the key date is imminent. The system will automatically calculate the value in the Last Notice Date using this formula:

Last Notice Date = Coverage Period Begin Date - Last Notice Period - 1

Add notice periods to the renewal term, NOT the original term.
Enter the earliest date you can give notice in the Earliest Notice Date field.

Select Calendar to open the date picker.
Enter the length of the tickler period using the Tickler Period fields.

A Tickler is a friendly reminder that the key date is coming due.

The system will automatically calculate the value in the Tickler Last Notice Date using this formula:

Tickler Last Notice Date = Notice End Date - Tickler Period

However, the Tickler Last Notice Date will not automatically update after being initially calculated unless you click Save.
Enter any comments in the Comments field.
Select the covenant that this term is associated with from the Covenant field.

You can view information about a covenant by selecting a covenant from the field and then clicking the View .
Enter the section of the covenant that this term is associated with in the Section field.
If this term is associated with an amendment, select the amendment from the Amendment field.

You can view information about an amendment by selecting an amendment from the field and then clicking the View .
Click Save Changes.

This displays in the Actions menu on the right side of the page.

The page refreshes. The term appears in the Equipment Contract Terms List at the top of the Terms page.

Select the term whose key date you want to take action on from the Equipment Contract Terms List.

The details of the term populate on the page.
Select the Notice Sent check box if notice has been sent for this action.
Select the Notice Received check box if the notice has been received for this action.
Select the action you took from the Action field.
Enter the date you took action in the Action Date field.

Select Calendar to open the date picker.
Select the Action Complete check box if the action has been completed.

The system will continue to send email alerts and system notifications about the End Date, Notice End Date, and Tickler Date until the Action Complete check box is selected.
Enter any comments in the Comments field.
Click Save Changes.

This displays in the Actions menu on the right side of the page.

The page refreshes. Your changes are saved.

Exercise a Term

Lucernex can automatically extend your contract dates when you exercise a term.

To exercise a term:

Select the term you want to exercise from the Contract Terms List.

The details of the term populate on the page.
Select Exercised from the Status field.
Click Save Changes.

This displays in the Actions menu on the right side of the page.

A window opens, with a message asking if you'd like to extend your contract.
If you want to extend your contract:
1. Select the date you want to extend your payments to in the Date to Extend the Payment field.
  
  The system will update the Contract Payment End Date. The system also updates the End Dates of the following record types:
  - Expense Schedules
  - Expense Allocations
  - Vendor Allocations
  - Percentage Rent
  - Percentage Rent Breakpoints
  - Sales Exclusions
  - Sales Exclusion Caps
  - Percentage Rent Offsets
  - Accrual Schedules
  The system will also recalculate payment amounts for the following record types:
  - Expense Schedules
  - Accrual Schedules
  - Scheduled Offsets
2. Select the Extend Contract Expiration Date, Possession Date, and Obligation Date check box if you also want to extend those dates.
3. Click Extend Contract.
  
  The contract is extended.

Terms - Equipment Contract Module

Add Terms in Bulk

Add an Individual Term

Edit a Term

Delete a Term

Take Action on a Term's Key Date

Exercise a Term