Recurring costs from contracts

Recurring costs from contracts are one of the largest cost blocks in the fleet. For this reason, we have invested a lot of work in ensuring that these costs flow neatly into the total cost accounting.

The following contracts can be created in Avrios.

The costs from these contracts are automatically transferred to your cost accounting:

You create a contract as follows:

What do I have to do so that the contract costs appear in the cost accounting?

Nothing, Avrios automatically calculates - based on the contract duration - how long the contract costs should be included in the cost calculation.

What happens if I terminate or extend my contracts early?

This depends on the level of detail of the change. If only the contract term actually changes, then go to the vehicle file of the vehicle concerned under Contracts and click on the three small dots and then on "Edit current contract":

When should I select "Edit current contract"?

When the contract information applies to the entire contract term.

Example:

You have returned a vehicle earlier than the end of the contract, on 01.06.2020, and cancelled your insurance.

The contract originally ran until 31.12.2020.

Your insurance company accepts the cancellation on 01.07.2020.

This means that costs will accrue for you up to this point, but not beyond. Originally, you would have had to pay the insurance until 31.12.20.

To map it this way, simply go to "Adjust current contract" under the affected insurance contract and change the contract end date to 01.07.20.

The system will only calculate the costs up to this key date (01.07.).

How do I make contract adjustments?

In general, it is important to define what contract adjustments are. Contract adjustments in Avrios are all those changes that are not made for the entire contract period. This can also be useful if you want to track the history of a contract and the changes. Whenever you select "Add Contract version", a new version of the contract will be created in Avrios. In this version you have to determine from when this version should be valid.

Let's look at this again with the help of an example:

You have a leasing contract that runs from 31.12.2017 and should run until 15.03.2020 - with a leasing rate of 400€. You decide to keep the vehicle for three more months. However, your leasing now charges you 450€ for these three months on the same contract. At this moment, the contract remains the same with all the general conditions, but it is still a new version with a higher rate. You will pay this rate from 15.03.2020. Before that, Avrios will continue to charge you 400€. This way we make sure that the total cost calculation works out.

Correct calculation (with adjusted contract)

Leasing rate: 31.12.2018 - 15.03.2021: 400€ x 39.5 months = 15'800€

Leasing rate: 15.03.2021 - 15.06.2021: 450€ x 3 months = 1'350€

Total 17'150€

Incorrect calculation (without contract adjustment)

Leasing instalment: 31.12.2018 - 15.06.2021: 400€ x 42.5 months = 17'000€

Do I have to upload PDF contract invoices in Avrios to get the costs into the system?

No, on the contrary. For faster digitisation for all customers, Avrios actively rejects PDF contract invoices if they are recognised as such. If an invoice does slip through, the system always prioritises the actual amount from the deposited contract. This applies to all contract invoices with the exception of end-of-lease invoices or leasing invoices that include a non-contractual service (such as) the delivery of a vehicle. These amounts are not covered by the amount in the lease and are therefore added to the contract costs for cost accounting purposes.

How are credit notes on contract invoices handled?

If, for example, you receive a credit note from your insurance company because you did not use the contract to the end, the correct way to handle this is to adjust the contract period for this contract. This is guaranteed to ensure that your total cost bill is correct. Be careful not to upload the associated credit note into Avrios. This would result in the shortened contract term and the credit note being added together, resulting in an unrealistically low and incorrect figure.

I need to adjust several contracts at once.

How do I do this?

Mass changes always mean a more complex intervention in the database. To guarantee that your data is in order and that everything is displayed correctly, such activities are only carried out by administrators on the Avrios side. Contact your contact person via chat, mail or phone or write a mail to support@avrios.com.