Vendor program

A Vendor Program is an agreement between a vendor or a dealer and an equipment leasing organization (lessor), detailing the terms and conditions of the commission to be paid out.

Each Vendor Program is defined by a validity period marked in terms of a Start Date and an End Date.  After defining a program, the lessors can associate the following with that program:

• Fee definitions to calculate the commission to be paid out.

• Rate cards to generate pricing to be applied to the applications sourced by vendors. This gives a lessor the flexibility of customizing various pricing options for each vendor program.

• Vendor accounts for which this program is created. This association helps a lessor to use one program definition for many vendors. 

• Equipment masters, that is, some types of equipment can be associated with a program and vendor accounts. This helps a lessor to know the various equipment or assets handled by the vendor.

Workflow 

The following image illustrates the workflow to configure a Vendor Program, and associate it with applications:

Define Vendor Program Setup

Prerequisites

The following are the prerequisites to define a Vendor Program setup:

• The following sections and the fields are added to the Page Layout:

  • On the New Program Page:

    • Start Date field

    • End Date field

    • Fee Set field

    • Payment Method field

  • Program Equipment Master Association

  • Program and Program Association

    • Vendor field

  • Program Vendor Rate Card Associations

    • Account field

    • Program field

• The Fee Set is defined.

• The Vendor Account is defined.

• The Equipment Master is created.

• The Vendor Points is defined.

• The Rate Card Setup is defined.

Steps

Perform the following steps to define a vendor program setup:

1. Log in to your Salesforce account.

2. Select the App Launcher.

3. Search for Q2 Origination, and then select it.

4. Go to Origination Configuration > Program.

   

5. Select New Program, perform the following, and then select Save:

   Field Name	Action and Information
   Program Name	Specify the name of the program being configured for.  For example, a vendor program for an asset deal can be named a New Asset.
   Owner	The field displays the name of the owner specified.
   Fee Set	This field captures the set of fees that are charged by the vendor on applications associated with this program.
   Payment Method	Specify the payment method to be used for the payouts to the vendors associated with this program. The payment method selected here is defaulted to the lease contracts and is non-editable. The supported options are: None In Advance In Arrears
   Start Date End Date	Specify the start and the end dates to indicate the validity period of this program.  Start Date from when the program is available for selection during application creation. End Date after which the program is not available for selection.

6. Select the Related tab.

7. Go to the Program or Program Point Associations  section, and then select New.

   The New Program Or Product Points Association window is displayed.

8. Perform the following, and then select Save:

   Field Name	Action and Information
   Name	Specify the name of the program or program point associations.
   CL Product	Specify the CL product for the vendor program to be associated with.
   Points	Specify the points set up for the vendor program.
   Account	Specify the account of the vendor or manufacturer or broker.

9. Go to the Program Equipment Master Association  section, and then select New.

   The New Program Equipment Master Association window is displayed.

10. Perform the following, and then select Save:

    Field Name	Action and Information
    Program	Specify the vendor program name.
    Equipment Master	Specify the equipment master ID. An equipment master is an equipment template. When new equipment is created, the equipment master has default values for the collateral and the application collateral equipment.

11. Go to the Vendor and Program Associations section, and then select New.

    The New Vendor and Program Associations window is displayed.

12. Perform the following actions and then select Save:

    Field Name	Action and Information
    Vendor and Program Association Name	Specify a relevant name for the association of a vendor program with a vendor account.
    Program	Specify the vendor program name.
    Vendor	Specify the vendor account.

13. Go to the Program Vendor Rate Card Associations  section, and then select New.

    The New Program Vendor Rate Card Associations window is displayed.

14. Perform the following, and then select Save:

    Field Name	Action and Information
    Program Vendor Rate Card Name	Specify a relevant name for the program vendor rate card. This field stores the association between the Rate Card and the Vendor Program, that is, which rate card is applicable to a Vendor Program.
    Program	Specify a vendor program name.
    Account	This field specifies accounts of type: Vendor, Manufacturer, and Broker.
    Rate Card Setup	This is the Rate Card Setup for the vendor program. A Rate Card is a chart that contains the various lending options available from a lender. For example, the various fixed deposit charts that are offered by banks. You must set up the Rate Card for a CL product, and the application for that CL product automatically uses the yield value specified in the Rate Card for  deal price.

Example:

A Vendor Program is created with the following terms and conditions, as illustrated in the following image:

Scenario 1

While creating a lease application, if you can select a vendor, all the vendor programs associated with it get selected automatically. The lessors can configure and provide differentiated offerings for each vendor program by varying the pricing, fees, and equipment types. Let us assume that the Vendor Program called Dealer Program is associated with the lease application APP-0000000074. As defined in the Dealer Fee set 1, a commission fee of $2,000 is paid to the vendor account. The details are illustrated in the following image:

Scenario 2

While creating a lease application, if you can select a vendor, all the vendor programs associated with it get selected automatically. The lessors can configure and provide differentiated offerings for each vendor program by varying the pricing, fees, and equipment types. Let us assume that the vendor program is associated with the lease application APP-0000000074, with the following details:

The lease application is associated with the vendor named Rohini. The application is added with the two equipment masters, namely ACD-00000153 and ACD-00000154, and a new equipment ACD-00000155 is added with the selling price = of $ 2,600 along with the Dealer Fees = $100. The lease application is associated with the Dealer Rate Card, which has the term =12, with a rate factor = 0.5%.

The system calculates the Total Dealer Charges = $2,600, considering the rate card and the vendor points details. The following images illustrate the details:

Vendor Program and Vendor Points Association

Vendor Program and Rate Card Association

Equipment are added to the Lease Application

Total Dealer Charges