ORACLE LEASE

data sheet MANAGEMENT 11i

From sales and contract origination through remarketing and asset disposition, Oracle Lease
Management provides end-to-end automation and a foundation for growth. Designed for asset based
finance companies, Oracle Lease Management is a comprehensive application that leverages the power
of the Oracle E-Business Suite to help you increase operation excellence and discipline, capture new
markets and optimize business relationships.

Position for Growth Through Operational Excellence

In an increasingly competitive industry, one key to long-term survival and growth is operational
excellence. Achieving operational excellence means having a complete view into your business to
support good decisions, implementing controls to comply with evolving regulations and, most
importantly, automating end-to-end business process to dramatically improve efficiencies and lower
costs.

Manage your lease or loan at both the contract and asset level

Gain Visibility with a Single Source of Truth

Many lessors lack a complete view of their business due to fragmented data across multiple
systems. Oracle offers immediate access to a single source of information for customer, investor,
vendor, asset, contract and invoice information. While other vendors force you to implement a

Page 1
separate data warehouse, Oracle delivers embedded business intelligence for unparalleled access
to critical business information.

Standardize & Control of Business Processes

Equipment lessors are frequently frustrated by inflexible systems that were not designed to work
together. Oracle E-Business suite’s Lease Management solution provides standard and
configurable processes that manage and control your entire lease portfolio. These processes help
companies reengineer and automate processes to maximize the end-result.

Accounting for lease transactions must conform to accounting principles and standards that vary
from region to region worldwide. Oracle Lease Management uses a powerful accounting engine
that generates the proper accounting for each financial product separately. To ensure accuracy,
you can view your accounting entries in Oracle Lease Management prior to transferring them to the
general ledger. To facilitate audits, Oracle General Ledger provides drill-down capability from
journal entries to the original transactions in the Oracle Lease Management subledger.

Dramatically Improve Efficiency

Administrative costs are among the highest expenses of an asset-based finance company.
Streamlining traditionally labor-intensive processes, such as contract authoring, reduces origination
time and lowers administrative costs. Improving these processes improves your bottom line and
frees up valuable resources to focus on corporate objectives.

Leasing enterprises streamline operations by defining financial products (e.g., operating, direct
finance and sales type leases and loans) with standard contract terms that generate desired
accounting results in order to simplify review and approval. Oracle Lease Management uses
productivity tools, such as templates, contract copying capabilities and data import to capture
contract information, account for transactions and track lease and assets details. By using master
agreements and financial products, you enter contract terms and product data only once, but use
them over and over again, streamlining the contract origination process.

Equipment lessors require the ability to import contracts created in other systems. When you
import contracts originated in other applications, you can apply Oracle Lease Management’s
quality-control validation to contracts with statuses ranging from newly entered to fully active.

Capture New Market Opportunities

Offer New Product and Services

Equipment lessors must be adaptable yet maintain strong internal controls to survive and grow in
this highly competitive marketplace. Oracle Lease Management provides flexibility to support your
business in an ever-changing market. Leverage the power of configurable financial products to arm
your sales force with the tools they need to grow your portfolio. Flexible tools let you quickly
configure the terms and conditions you want to offer to the market in the form of financial products
or services. You can configure the terms and conditions of an unlimited number of financial
products and associate the appropriate financial product to a contract to govern the execution of the
lease or loan.

Page 2
Expand into Emerging Global Markets

With the globalization of your enterprise, comes the need to manage transactions in multiple
currencies and then account for them according to the standards required by each country in which
you do business. Oracle Lease Management allows you to define transactional currencies and
exchange rates, select a transactional currency, and define the conversion basis when you create a
contract. You can perform downstream transactions, such as billing, funding, and terminations, in
the contract currency, while still accounting for the transactions in your functional currency. This
allows you to maintain contracts transacted in different currencies in one portfolio.

At month end, Oracle Lease Management enables you to adhere to diverse and complex
accounting regulations with robust and flexible accounting tools. Multi-GAAP functionality
calculates the applicable profit or loss and enables you to account and report it in both the local and
primary reporting set of books according to the standards specified for each.

Optimize Business Relationships

Equipment lessors provide services as well as financial solutions to maintain strong relationships
with their customers. Service requires close relationships with vendors as well. Not only does
Oracle Lease Management provide for lease and loan management, but also offers a full range of
finance related agreements, including vendor programs, operating agreements, and investor
agreements, enabling you to manage relationships with your partners.

Provide Self Service Access to your Customers and Vendors

Oracle Lease Management provides self-service account management to reduce the administrative
costs of serving your vendors and customers. With customer self-service, your customers can
perform many of the administrative functions that your call agents traditionally handled. With
vendor self-service, authorized vendors can view and request updates to information on lease
contracts, program agreements, and transactions without the need to contact your call center
agents. Vendors and customers can review their invoices, request termination quotes, update bill-
to sites, make payments, and more. All the processes are workflow driven, which gives you
ultimate control by automatically enforcing contract and business rules.

Manage Relationships with Customers

Customers expect quick and informative responses to their questions throughout the lease lifecycle.
Oracle Lease Management integrates with Oracle’s Interaction Center Intelligence to manage
inbound calls and route them efficiently to appropriate resources. This integration also provides
advanced outbound call management technology for making collections or other routine customer
service calls. To further streamline customer relationship management, Oracle Lease Management
integrates with Oracle Collections to enable you to centrally manage collection efforts across all
lines of business.

Manage Relationships with Vendors

Equipment lessors must maintain complex relationships with multiple parties including
manufacturers, vendors, and dealers as well as their customers. Vendor programs manage the
terms and conditions that govern the responsibilities of multiple parties participating in a lease or

Page 3
loan transaction. Vendor program terms and conditions play a significant role in driving the
creation, management, and execution of the lease or loan. Oracle Lease Management lets vendors
and manufacturers independently view and update certain information on vendor programs and the
associated lease contracts with vendor self-service.

Manage Relationships with Investors

Oracle Lease Management gives you powerful tools to manage complex investor agreements. You
can setup an agreement with an unlimited number of investors, each with a defined stake and
sharing percentages and link this agreement to a lease or loan contract. Then, you can create and
manage syndication and securitization agreements using the investor agreement functionality to
manage billing and receipt of the investment, cash disbursement to investors, and communication
of critical information. You can create a pool of future receivables using a wide variety of attributes
for customers, contracts, and assets and link this receivables pool to an investor agreement. Once
the investor agreement is created, Oracle Lease Management manages disbursements to the
investors and uses the investor agreement terms and conditions to manage the lease and loan
contract.

Oracle E-Business Suite—The Complete Solution

Oracle E-Business Suite enables leasing companies to efficiently finance lease and loan products,
manage customer and vendor relationships, bill and collect payments, disburse funds to vendors
and investors, track and account for assets and more—all from applications that are built on unified
information architecture. This information architecture provides a single definition of your
customers, vendors, suppliers, employees, and financial products—all aspects of your business.
Oracle E-Business Suite enables you to share unified information across your entire leasing
enterprise so you can make smarter decisions with better information.

Page 4
KEY FEATURES
Oracle Lease Management Solution
Sales & Origination
• Manage prospects and pipelines with
Oracle Sales Online
• Produce quotes with lease pricing
• Solve for periodic payments, yield,
target rate or balloon payment
• Include fees, services, and estimated
taxes on lease quotes
• Use SuperTRUMP™ via an XML
gateway for lease pricing and modeling
• Produce multiple payment plans for a
single quote
• Generate and/or import lease rate
factors and residual values
• Include subsidies and discounts in the
quote
Vendor Programs
• Define operating agreements with
partners
• Create program agreement templates
• Manage contracts across the full
contract lifecycle with vendor program
agreements
Contract Authoring & Import
• Use templates to reduce data entry and
to standardize terms and conditions
• Set up master lease agreements
• Capture detailed terms and conditions at
the contract and asset levels
• Capture contract lines by type (assets,
services, fees)
• Carry multiple like-kind assets on a
single contract line
• Track serial numbers
• Apply subsidies and discounts to leased
assets
• Manage pass-through billings for
services
• Structure rents at the asset level
• Use SuperTRUMP™ via an XML
gateway to price yields at booking
• Structure variable rate deals
• Import contracts
• Configure business rules for quality
assurance validation
• Manage the funding process with
multiple funding types
• Manage, transact and account for
subsidies
Lease Operations
• Account for off-lease inventory tax
depreciation
• Structure re-leasing contracts and
manage assets
• Process swaps, exchanges, customer
information, and asset information
• Split assets from a contract
• Process financial revisions and
restructures of existing contracts
• Create checklists to manage and control
credit line approvals & funding request
authorizations
Invoicing
• Produce periodic billing for multiple
billing schedules
• Bill at the contract or line level
• Bill to multiple billing addresses per
contract
• Consolidate line level invoices onto a
single invoice
• Calculate and bill interim interest for
variable and fixed-rate contracts
• Produce invoice formats for individual
customers
• Produce miscellaneous invoices before,
during, and after contract term
• Generate usage-based billing
• Combine lease and service billing
through Oracle Service Contracts
• Configure multiple usage based pricing
structures
• Bill for multiple usage counters on a
single asset
Risk Management
• Integrate collections for all lines of
business with Oracle Collections
Page 5
• Assign multiple contracts to a collections
case for handling cross defaults
• Score delinquencies and build
collections strategies
• Manage collection activities: litigation,
bankruptcy, repossession, repurchase
and third-party collections
• Report to credit bureaus
• Notify program vendors of collection
activities
• Obtain promise-to-pay and process
payments
• Manage third-party repurchase options
• Use Oracle Credit Management to
evaluate a prospect’s credit
• Perform credit decisioning with Oracle
Credit Management
• Establish and track credit lines
Customer Service
• Manage inbound calls by routing each to
an appropriate resource
• Use simple queries to view customer,
vendor, and investor information online
• Route party record with a call in order to
reduce wait time
• Record and process customer requests
• Respond to customer billing inquiries
• View prior contract versions
• Update non-financial terms and
conditions of the contract
• Update tax status information
Asset Management
• Provide early and full term termination
quotes for assets on a contract
• Use Oracle Workflow to control
business processes
• Track physical assets with Oracle Install
Base
• Track and manage financial assets with
Oracle Assets
• Enact terms and conditions set up
during origination
• Apply discounts and subsidies to assets
• Provide quotes for restructures, roll-
overs, extensions, and more
• Initiate, track, and manage asset returns
• Manage repurchase agreements with
vendors
• Assign internal or third-party
remarketers
• Track the condition of returning assets
• Invoice customers or third parties for
asset repairs
• Adjust asset residual or salvage values
• Manage off-lease amortization
• Manage repossessed assets
Remarketing
• Track assets from receipt to sale
• Remarket used inventory with Oracle
Order Management and Oracle iStore
• Manage remarketing sharing
agreements
• Calculate remarketing margin
• Dispose of assets
Insurance
• Track customer’s third-party insurance
coverage
• Provide insurance quotes
• Establish rate tables by country, factor,
and insurance partner
• Automatically place insurance for
uninsured contracts
• Cancel policies before and after policy
activation with automatic credits
• Control uninsurable assets by category,
country, industry, coverage, size, and
term
• Allow customers and vendors to request
insurance changes
Customer and Vendor Self-Service
• Enable customers to access information
and administer their contracts
• Enable vendors to access information
and administer their accounts
• Provide wizards to guide your
customers in completing transactions
• Allow customers and vendors to view
lease contract and asset details
• Enable customers to view and request
termination and renewal quotes
• Allow customers and vendors to view
invoice history and to make payments
• Allow customers and vendors to request
updates to asset locations
• Enable customers and vendors to
request insurance quotes and file claims
• Enable customers and vendors to
request changes to billing information
• Use workflow to enforce your business
practices
Page 6
Multi-GAAP Reporting
• Define book classification and tax
classification
• Associate a reporting product to local
product
• Calculate profit and loss adjustments for
reporting set of books

Investor Agreements
• Arrange and manage investor
agreements with multiple investors
• Create pools of contract receivables and
link them to the investor agreement
• Assign contracts to investment pools
based on desired criteria
• Modify investment pool contents
• Bill investors for their stake
• Create disbursements to vendors

Accounting
• Configure accounting by financial
product
• Create multiple accounting lines for a
single transaction
• Derive accounting amounts and
accounts dynamically
• Control accounting for capitalized,
expense, income and absorbed costs
• Create manual journal entries at the
contract level
• View accounting by contract or
Oracle Corporation
transaction World Headquarters
500 Oracle Parkway
• View year-to-date and life-to-date Redwood Shores, CA 94065
USA
account balances for a contract
• Calculate general loss provisions based Worldwide Inquiries:
650.506.7000
on aging buckets Fax: 650.506.7200
• Drill down from Oracle General Ledger http://www.oracle.com
to Oracle Lease Management sub- Oracle Corporation (Nasdaq: ORCL) is the world's leading supplier
of software for information management, and the world's second
ledger accounting entries largest
independent software company. With annual revenues of more than
$10.1
billion, the company offers its database, tools and application
products,
along with related consulting, education, and support services, in
more
than 145 countries around the world.

Features and screen shots shown may not correspond exactly to the
released product.

Oracle is a registered trademark of Oracle Corporation.

All other company and product names mentioned are used for
identification
purposes only and may be trademarks of their respective owners.

Copyright © 2002 Oracle Corporation

All Rights Reserved

Last Updated: September, 2004

Page 7