Qualify the client first
3PM applies to PRC-creditworthy clients with a relationship and fleet opportunity worth pursuing.
No matching sections.
Try a client need, growth play, journey stage, system, or decision.
Try a client need, growth play, journey stage, system, or decision.
Capture the fleet. Solve the client need.
3PM gives PRC more ways to win, retain, and expand creditworthy client relationships by combining leasing with hardware, software, installation, data, and ongoing fleet-management capability enabled by TelemetryX.
Working definition
Third-Party Management enables PRC to finance and manage a creditworthy client’s broader fleet—including equipment not originally financed by PRC—through a coordinated hardware, software, installation, data, and service offering.
Customer relationshipPRC owns the commercial experience and financing relationship.
enabled by
3PM capabilityTLX supplies the technology, fulfillment, and operating capability.
Start with the client need
The net-new, renewal, or retrofit need determines the value story and the route.
Present one PRC experience
Internal entities and systems should not fragment the client’s commercial experience.
Match execution to the promise
Pricing, contracts, records, fulfillment, billing, and support must represent what was sold.
Markets at a glance
One client experience. Different operating routes.
| Compare | United States | Mexico |
|---|---|---|
| Commercial relationship | PRC client-facing; TLX supplies the technology and service capability. | PRC Mexico client-facing; TLX supplies through a vendor/intercompany route. |
| Lease structure | Working net-new route: linked PRC and TLX schedules split internally. | Working net-new route: one PRC Mexico schedule; not the US split. |
| Customer billing | Working net-new route: combined PRC/TLX invoice. | One PRC Mexico customer invoice; intercompany billing is separate. |
| Other deal types | Retrofit has its own route; renewal and no-charge deployment retain open controls. | Retrofit schedule treatment is unresolved; renewal and no-charge applicability need confirmation. |
| Accounting lens | Assess lease and service components, classification, and timing. | Assess the customer arrangement separately from the TLX intercompany sale. |
These are working routes, not approved accounting conclusions. See End-to-end Process for each market’s model-specific details.
02 · End-to-end ProcessWho does what.
Who does what.
Across the boundary.
BPMN-style swimlanes: the PRC pool on top, the TelemetryX pool below, one lane per role. Every dashed arrow crosses the company boundary — those handoffs are where deals stall, so know who is waiting on you.
Working process: Supplied route overview, not approval of accounting or live automation. Acceptance evidence, recognition timing, invoice-sync behavior, and settlement rules still require owner validation.
Sequence, same companyPRC ↔ TLX handoffStep numbers match the E2E process docs
United States · commercial-model deep dives
Expand a model for its payment, operating route, and execution checks. The overview diagram is not a universal route for all four models.
1. New/New 3PM Lease
3PM included with new equipment and a new lease.
- Business value
- New business
- Customer payment
- 3PM included in the new lease payment.
- United States operating route
- Working route: PRC and TLX schedules split internally; one combo invoice.
- Execution & validation
- Confirm the signed package, linked PRC/TLX records, reconciled payment and LRF, booking readiness, and combined invoice setup. Validate TLX acceptance evidence rather than treating the diagram’s “no AC” label as a waiver.
2. Retrofit 3PM Lease
3PM added to existing equipment during the active lease.
- Business value
- Mid-term lease upgrade
- Customer payment
- An additional 3PM lease amount.
- United States operating route
- Working route: separate TLX-R lease tied to the active lease. Invoice setup needs confirmation.
- Execution & validation
- Confirm the active lease, equipment and ownership, retrofit documentation, remaining term, and linked TLX-R schedule. Resolve invoice setup before booking.
3. Renewal Retrofit + 3PM Subscription
3PM added at renewal as a subscription or managed service.
- Business value
- Subscription revenue
- Customer payment
- A subscription fee, separately billed or identified in renewal economics.
- United States operating route
- Under design: subscription/service route. Final schedule and combined-versus-separate billing remain open.
- Execution & validation
- Confirm the renewal event, service scope and term, contract language, and billing arrangement. A new system record does not establish sales-type accounting.
4. Remarketing Retrofit (No-Charge)
3PM added for the remaining term at no additional customer charge.
- Business value
- Future remarketing value
- Customer payment
- No additional amount; no direct TLX customer bill.
- United States operating route
- Special case: expected future remarketing proceeds. Accounting and deployment controls remain open.
- Execution & validation
- Document the remarketing objective, deployment authorization, remaining term, and no-additional-charge arrangement. Resolve cost and revenue treatment before making this repeatable.
Mexico · commercial-model deep dives
Expand a model for its payment, operating route, and execution checks. The overview diagram is not a universal route for all four models.
1. New/New 3PM Lease
3PM included with new equipment and a new lease.
- Business value
- New business
- Customer payment
- 3PM included in the new lease payment.
- Mexico operating route
- Working route: TLX vendor/intercompany model; one PRC Mexico schedule and invoice, not the US split.
- Execution & validation
- Keep the PRCEM customer arrangement separate from the TLX intercompany sale. Confirm vendor POs, delivery and acceptance evidence, OEC, customer billing, and intercompany settlement timing.
2. Retrofit 3PM Lease
3PM added to existing equipment during the active lease.
- Business value
- Mid-term lease upgrade
- Customer payment
- An additional 3PM lease amount.
- Mexico operating route
- Working route: TLX vendor/intercompany model. Existing-versus-separate schedule and OEC treatment remain unresolved.
- Execution & validation
- Confirm the existing lease, vendor/intercompany route, installation ownership, and whether a separate schedule is required. Schedule and OEC treatment remain unresolved.
3. Renewal Retrofit + 3PM Subscription
3PM added at renewal as a subscription or managed service.
- Business value
- Subscription revenue
- Customer payment
- A subscription fee, separately billed or identified in renewal economics.
- Mexico operating route
- Needs confirmation: renewal + 3PM is an emerging route. Subscription classification, schedule, and invoice design are not finalized.
- Execution & validation
- Confirm local applicability, the customer agreement, subscription classification, schedule design, and billing. Do not import the US twin-record route by default.
4. Remarketing Retrofit (No-Charge)
3PM added for the remaining term at no additional customer charge.
- Business value
- Future remarketing value
- Customer payment
- No additional amount; no direct TLX customer bill.
- Mexico operating route
- Needs confirmation: Mexico applicability and local accounting/settlement route are not established.
- Execution & validation
- Confirm Mexico applicability and the proposed local accounting and settlement route before committing deployment. The US remarketing approach is not an approved Mexico process.
Four commercial models. Four sources of value.
Select the commercial model by the business event and how TLX earns value. Geography, ownership, documents, schedules, and billing determine the operating route—not additional commercial models.
| Compare | 1. New/New 3PM Lease | 2. Retrofit 3PM Lease | 3. Renewal Retrofit + 3PM Subscription | 4. Remarketing Retrofit (No-Charge) |
|---|---|---|---|---|
| What it is | 3PM included with new equipment and a new lease. | 3PM added to existing equipment during the active lease. | 3PM added at renewal as a subscription or managed service. | 3PM added for the remaining term at no additional customer charge. |
| Business value | New business | Mid-term lease upgrade | Subscription revenue | Future remarketing value |
| Customer pays | 3PM included in the new lease payment. | An additional 3PM lease amount. | A subscription fee, separately billed or identified in renewal economics. | No additional amount; no direct TLX customer bill. |
| US market | Working route: PRC and TLX schedules split internally; one combo invoice. | Working route: separate TLX-R lease tied to the active lease. Invoice setup needs confirmation. | Under design: subscription/service route. Final schedule and combined-versus-separate billing remain open. | Special case: expected future remarketing proceeds. Accounting and deployment controls remain open. |
| Mexico market | Working route: TLX vendor/intercompany model; one PRC Mexico schedule and invoice, not the US split. | Working route: TLX vendor/intercompany model. Existing-versus-separate schedule and OEC treatment remain unresolved. | Needs confirmation: renewal + 3PM is an emerging route. Subscription classification, schedule, and invoice design are not finalized. | Needs confirmation: Mexico applicability and local accounting/settlement route are not established. |
Market status is not an approval: “Working route” means the route is described, not fully signed off. “Under design” and “Needs confirmation” are not launch-ready. US and Mexico require separate execution rules; the model name alone does not determine local accounting, tax, documents, or settlement.
Choose a commercial model · top to bottom
Confirm eligibility, then match the payment and business event to one row. This classifies the commercial model—not its accounting treatment.
- 01 · Eligibility
- 02 · Consideration
- 03 · Event / purpose
- 04 · Commercial model
1 · Is this an eligible 3PM component?
Production 3PM for a PRC-creditworthy client.
No: Outside current scopeNot sure: Review before proceeding
2 · If yes, match one payment + event combination
| Customer pays | Business event / purpose | Commercial model |
|---|---|---|
| Lease payment | New equipment with new origination | New/New 3PM LeaseNew business |
| Additional lease amount | Existing equipment during the active lease term | Retrofit 3PM LeaseMid-term lease upgrade |
| Subscription fee | 3PM added at renewal | Renewal Retrofit + 3PM SubscriptionSubscription revenue |
| No additional charge | Existing equipment, active term, and a remarketing objective | Remarketing Retrofit (No-Charge)Future remarketing value |
3 · No single clear match? Review the exception.
Mixed consideration, missing facts, and other combinations require review. Do not force them into one of the four models.
MECE boundary: classify one separately documented component at a time. Active term excludes the renewal event. Origination means the underlying new equipment lease, not a retrofit TLX schedule. Bundled paid consideration is not “no charge.” Mixed, missing, or nonstandard facts go to review; ineligible transactions go outside scope. US/Mexico execution differences remain in the matrix above.
Detailed commercial, accounting, and operating comparison
Commercial comparison
| Comparison | New/New 3PM Lease | Retrofit 3PM Lease | Renewal Retrofit + 3PM Subscription | Remarketing Retrofit (No-Charge) |
|---|---|---|---|---|
| Business Event | New equipment + new 3PM sale | Add TLX during existing lease term | Add TLX at renewal | Add TLX to existing lease with no customer charge |
| Trigger | New origination | Mid-term upgrade | Renewal event | Strategic remarketing opportunity |
| Existing Lease? | No | Yes | Yes, nearing renewal | Yes |
| New Equipment? | Yes | No | Usually no | No |
| ELS Signed? | Yes | Typically separate 3PM/TLX documentation | Renewal docs + TLX documents | No corresponding ELS at same time |
| New Lease Created? | Yes | Yes, lease-based transaction | No separate lease economics; subscription model | No |
| Customer Pays Additional Amount? | Yes | Yes | Yes, subscription fee (subscription fee) | No |
| Customer Monthly Payment Changes? | Yes | Yes | Yes | No |
| Billing to Customer | Yes | Yes | Yes | No direct billing for TLX |
| Revenue Model | Lease revenue | Lease revenue | Subscription / managed service revenue | Remarketing economics |
| Primary Economic Benefit to TLX | Lease returns + service revenue | Lease returns + service revenue | Recurring subscription income | Future remarketing proceeds |
| Customer Contract Type | Lease + Service Agreement | Retrofit lease arrangement | Subscription / Service Agreement | 3PM Rider |
| Typical Term | Full lease term | Remaining lease term | Renewal term | Remaining lease term only |
| Ownership Situation | PRC-originated lease | PRC-owned lease | Renewal of existing lease | Often syndicated or non-PRC-owned lease |
Accounting and operating comparison
Review boundaryThe comparison below reflects the workbook’s working design, not approved transaction-level accounting. Confirm lease classification, component allocation, commencement, billing, and cost treatment with Accounting. The US split-schedule and Trust descriptions must not automatically be applied to Mexico.
| Comparison | New/New 3PM Lease | Retrofit 3PM Lease | Renewal Retrofit + 3PM Subscription | Remarketing Retrofit (No-Charge) |
|---|---|---|---|---|
| Business event | New equipment, new lease, and 3PM included at origination. | TLX is added to equipment already in an active firm-term lease. | TLX is added when the equipment lease renews. | TLX is added during the remaining term without increasing the customer’s payment. |
| Primary economic model | Sales-type lease for hardware, with separate ASC 606 treatment for installation, hosting, and service components. | Separate 3PM/TLX sales-type lease, normally coterminous with the existing equipment lease. | Managed service or subscription arrangement, priced per unit per month. | Strategic deployment funded through expected remarketing or end-of-term proceeds rather than incremental customer billing. |
| Customer consideration | Included in the new lease payment. | Customer pays an additional lease amount for the TLX schedule. | Customer pays a monthly subscription, or the subscription amount is identified within the renewal economics. | No incremental customer payment. |
| Lease or service classification | Lease-based. | Lease-based. The documented example describes the retrofit as a stand-alone sales-type lease rather than managed service. | Service-based unless the contract is deliberately structured as a true renewal lease. Managed-service revenue cannot be pulled forward and is recognized over time. | The working document describes no new lease and no new billing, but also calls for AR and deferred revenue. This treatment is not yet fully reconciled. |
| Contract documents | ELS plus embedded TLX Service Agreement. | Stand-alone TLX agreement or retrofit schedule tied to the existing lease. | 3PM rider and Service Agreement identifying the monthly subscription. | 3PM rider, with no corresponding new ELS signed at the same time. |
| Schedule structure | PRC and TLX schedules are separated internally after final documents; the customer signs once. | New TLX-R schedule associated with the original equipment lease. | May be booked separately from the renewal, but the final schedule and invoicing structure remains under design. | No additional lease schedule under the described concept. |
| OEC treatment | PRC equipment carries OEC. TLX begins at $0 OEC in the client-facing transaction, then actual TLX OEC is populated on the internally separated TLX lease. | Actual TLX OEC is required for the stand-alone sales-type lease. | $0 OEC may appear in customer-facing or combo billing, because the commercial offer is a monthly service rather than a separately priced equipment lease. | No customer-facing OEC or new monthly lease amount. The sales order may contain an arm’s-length value for internal accounting. |
| Customer invoice | One combo invoice covering PRC and TLX schedules. | Normally a stand-alone TLX-R invoice unless configured as a combo invoice. | Combined with the renewal billing where supported; exact combo-versus-split design remains unresolved. | No TLX invoice is sent to the customer. |
| Customer AR | LeaseWave generates the customer invoice; the corresponding invoice is uploaded to NetSuite for internal accounting. | Invoice generated against the TLX retrofit schedule. | AR follows the monthly subscription or renewal billing arrangement. | The working document says TLX records AR while not issuing a bill. That is an accounting control issue and needs confirmation before this becomes the operating model. |
| Cash collection | Customer pays PRC Trust; payments follow a PRC-first waterfall and are then allocated to TLX. | Customer pays PRC; Trust routes the TLX portion to TLX. | Collected monthly through PRC and routed to TLX. | TLX is expected to receive a share of future remarketing or payoff proceeds through the back-end Trust allocation. |
| Revenue-recognition standard | ASC 842 for the leased hardware; ASC 606 for installation, hosting, licenses, and services. | ASC 842 for TLX hardware lease economics; ASC 606 for service components. | ASC 606 managed-service treatment unless documented as a true sales-type renewal lease. | Final standard and recognition trigger are unresolved. The current description refers to deferred revenue and later remarketing recovery, but does not provide a finalized recognition policy. |
| Revenue timing | Sales-type classification and commencement require Accounting approval. Installation is not automatically commencement. Finance income follows the lease term; service revenue follows the approved performance pattern. | Same sales-type lease framework as New/New, but based on the retrofit schedule’s term and economics. | Revenue is recognized straight-line over the service term, per unit per month. Related cost is recognized in the same period. | No operating revenue should be released solely because hardware was shipped if the customer owes nothing and the future remarketing amount remains contingent. The exact trigger for releasing deferred revenue requires Accounting approval. |
| Deferred revenue | Used for hosting, service, or license consideration received or billed before performance. | Used for the ASC 606 service and license portions, not for the lease receivable itself. | Service consideration billed or received before performance is deferred and recognized over the service period. Do not assume full-term deferral solely from the subscription label; confirm billing terms and enforceable consideration. | The working design says to establish deferred revenue even though there is no outgoing customer bill. This is an unresolved point because deferred revenue normally requires consideration received or a valid obligation to a paying counterparty. |
| Deferred cost | Service and license costs may be deferred and amortized in the same pattern as their related revenue. | Same treatment for separately identifiable service and license costs. | Workbook working design: monthly cost includes hardware depreciation, service, and license cost. Accounting must confirm capitalization eligibility, useful life, and expense timing; matching revenue alone does not justify deferral. | Hardware and implementation costs require a defined asset or expense treatment. The existing sources do not finalize whether they are inventory, equipment deployed under service, deferred contract cost, or a remarketing investment. |
| Inventory treatment | Hardware moves from finished goods into the lease-accounting process when installation is completed. | Same treatment for the retrofit lease. | TLX generally retains ownership of hardware; equipment is depreciated over its useful life while services are delivered, then returned through an RMA process when the arrangement ends. | TLX retains the hardware, but the capitalization, depreciation, and return treatment still needs to be formally mapped. |
| Key accounting risk | Correct allocation between ASC 842 lease consideration and ASC 606 service consideration. | Ensuring the retrofit is actually supported by a lease contract and not mislabeled as a service. | Avoiding up-front lease revenue when the contract substance is a flat managed-service subscription. | Recording AR or deferred revenue without customer billing or enforceable consideration could overstate both assets and liabilities. Revenue cannot be recognized merely because future remarketing value is expected. |
No-charge does not mean earned revenue.
Remarketing Retrofit (No-Charge) creates no new customer lease or TLX bill. Expected future proceeds alone do not establish customer AR, deferred revenue, or earned revenue. Accounting must approve the counterparty obligation, recognition trigger, asset or expense treatment, depreciation, and return process before this design is executed.
Execution decisions still open
- Renewal subscription: final schedule, combo-versus-separate billing, hardware ownership, depreciation, and RMA handling.
- Remarketing: enforceable consideration, future Trust allocation, AR/deferred-revenue basis, and hardware cost treatment.
- Lease models: classification, lease/service allocation, commencement evidence, and retrofit invoice configuration.
- Mexico: retain the separate vendor/intercompany route and resolve schedule, OEC, acceptance, tax, and settlement questions.
Open Deal Journeys · Swimlanes & route detail. Existing route diagrams remain working designs; they have not been reclassified or approved by this chapter update.
Earlier route questions — retained for review
Earlier route references: the flavor numbers below refer to the superseded eleven-route guide, not the four commercial models above. These unresolved questions are retained for traceability, not as an alternative model taxonomy.
Each item below is either a gap in the source matrix or a conflict with another current source (PRC_OPS_MAP workbook, 9/18/2026 update, and the 3PM Lease Split E2E Test Summary, April 29–30, 2026). Nothing here has been resolved by assumption.
Routing gates
| Ref | What the source says | Why it needs clarification |
|---|---|---|
| R1 | Gate 2 lists "standalone TLX financing or retail" as a US option for PRC clients. Gate 1 routes TLX-direct and non-PRC clients to Matrix B, where flavors 9 and 10 live. | Can a PRC client land in flavor 9 or 10? If yes, the gates overlap and the tree needs a rule for which gate wins. |
| R2 | Matrix A is titled "PRC Investment-Grade Clients"; Gate 1 says only "PRC client." | No path is defined for a PRC client that is not investment-grade. |
| R3 | Flavor 8 applies when the lease is "already syndicated or PRC does not own the lease/equipment." No geography is stated. | Confirm whether flavor 8 applies in Mexico. Also undefined: a syndicated lease where the client does want to pay, and a PRC-owned lease where 3PM is free. |
| R4 | Flavor 8 sits in Matrix A (PRC clients), but "PRC does not own the lease" overlaps the Creatio value "PRC-serviced non-PRC asset" and the equipment values "client-owned" and "third-party leased." | Which flavor do client-owned and third-party-leased equipment map to? None of the 11 flavors names them. |
| R5 | Pilots are listed under Matrix B. | Confirm pilots can occur for PRC clients too, which would move flavor 11 ahead of Gate 1. |
| R6 | An active service-only exception in the working operations map: "TLX = Service Only; MHE vendor buying hardware directly from TLX and installing themselves." | This does not match any of the 11 flavors. Needs a flavor or an explicit exception rule. |
Mexico
| Ref | What the source says | Why it needs clarification |
|---|---|---|
| M1 | Flavor 1: "over-time treatment for the client lease economics." | It is not clear which entity or which standard this refers to for the client lease itself. |
| M2 | Flavor 2: "generally continue with the existing PRC schedule." | Conflicts with the operations map, which calls the Mexico retrofit a stand-alone schedule with its own ELS, and with active TLX-R examples in the controlled opportunity records. |
| M3 | Flavor 2: TLX product lines at $0 OEC. | Conflicts with the ops map note that Mexico retrofits include their own ELS, OEC, and monthly payment on the proposal with everything disclosed. |
| M6 | Flavors 1 and 2 list acceptance certificates, and flavor 2 lists a "Telemetry AC when installation is complete and operational." | Conflicts with the ops map, which says "No AC for TLX units" for Mexico New/New and Retrofit. |
| M4 | Flavor 3 used an illustrative per-device monthly amount while "stating that the amount was already included in the renewal"; OEC "can be zero." | Unclear whether the client pays an incremental 3PM charge on a Mexico renewal. Confirm whether any referenced amount is approved pricing or only an example. |
| M5 | Flavor 3 has no revenue treatment or invoice guidance. | The US splits renewals into managed service (6) and sales-type lease (7). Confirm whether the same classification applies in Mexico. |
United States
| Ref | What the source says | Why it needs clarification |
|---|---|---|
| U1 | Flavor 4: Accounting "applies the configured revenue treatment." | The treatment itself is not stated. |
| U2 | Flavor 5 asks whether the arrangement is a sales-type TLX lease or a managed service. | This is the same split as flavors 6 and 7. Confirm whether flavor 5 is one flavor or two. |
| U3 | Flavor 5: standalone TLX invoice or combo invoice, "decision required by transaction." | No decision rule exists. Also listed as a priority gap (Booking, AR, Accounting). |
| U4 | Flavor 6: "per-device monthly subscription model." | Confirm whether the referenced amount is approved pricing or only an example. |
| U5 | Flavors 6 and 7 depend on a Creatio deal-treatment field that does not exist yet. | Until it is built, who makes and records the managed-service versus sales-type call? |
| U6 | E2E test decisions: property tax stays on the PRC lease only; AC handling for mixed TLX and non-TLX schedules; prorated rent before split. | None of these appear in the matrix for flavor 4. Confirm whether they belong in the playbook. |
Matrix B
| Ref | What the source says | Why it needs clarification |
|---|---|---|
| B1 | Flavor 9: determine whether PRC services billing or TLX contracts directly before creating documents. | Undecided, and it changes the documents and invoice. Also, flavor 9 is labeled US only; Mexico standalone leases are not addressed. |
| B2 | Flavor 11: conversion rules need formal documentation. | No lease, billing, or accounting rules exist for converting pilot hardware already installed. |
Governance and terminology
| Ref | What the source says | Why it needs clarification |
|---|---|---|
| G1 | Owners are named only for opportunity setup and open gaps. | A step-level RACI per flavor is needed. Metrics and review cadence are also not defined. |
| G2 | Matrix: PM or AE creates the opportunity; Pricing prices and awards. | The E2E test summary has OM/Sales creating and awarding the opportunity, and OM re-awarding after the split. Confirm the correct owners. |
| G3 | Ops map columns are "Renewal New/New" and "Renewal Retrofit." The matrix uses flavors 3, 6, and 7. | The mapping between the two naming sets is not stated. Earlier working drafts also carried a "Deferred Retrofit" flavor; the matrix has no such flavor, and "deferred" appears only as flavor 8's revenue treatment. Confirm whether Deferred Retrofit is retired or is flavor 8. |
Source: 3PM Commercial Models.xlsx, Sheet1 (commercial comparison) and Sheet2 (operating/accounting comparison). The four model names and value statements follow the owner’s supplied language. This replaces the eleven-flavor classifier as the main Commercial Model view. Illustrative prices, customer names, and embedded private source references are omitted. Workbook accounting proposals remain subject to functional approval.
One journey. Different routes through it.
Every deal moves from client need to ongoing value. The growth play changes the entry point and message; operating decisions change the contract, records, handoffs, booking, invoice, and settlement route.
Deal flavorThe same journey, with a different commercial trigger and operating emphasis
Net newDifferentiate and winDeveloped variants
New financing needCredit-qualified prospect
Bundle lease + 3PMHardware, software, install
Win awardOne value proposition
Client signsApproved package
Deploy capabilityFulfill and install
Book routeUS or Mexico structure
Operate & expandGrow fleet penetration
RenewalRetain and capture fleetWorking route
Renewal windowInstalled base + fleet
Design fleet captureRenewal economics
Renewal proposalRetention + expansion
Approve treatmentService or lease path
Refresh / addHardware and installation
Bill approved modelRecognition still governed
Positive relationship valueRenew and expand
RetrofitSolve data and trackingControlled exception
Operating problemVisibility or tracking gap
Scope retrofitAssets, devices, software
Solution awardProblem solved first
Check ownershipPRC or investor-owned
Install in fieldCoordinate live assets
Choose approved routeStandalone or linked
Operate & prove valueData, tracking, expansion
Net new · bundled leasing route
Lead with the combined PRC financing and 3PM value proposition, then select the correct country and booking structure.
- Qualify the client and fleet opportunity.
- Price hardware, software, installation, financing, and delivery assumptions.
- Present one coordinated client offer and contract package.
- After signing, route fulfillment and booking through the approved US or Mexico model.
Commercial promisePRC differentiates through a combined lease and 3PM offering.
Developed variantsUS coterminous PRC-serviced and Mexico intercompany.
Primary controlCountry and legal entity must be known before booking.
Renewal · retention and fleet-capture route
Use the renewal event to retain the client, expand fleet coverage, and improve the long-term economics of the relationship.
- Start with the current schedule, renewal date, ownership, and installed base.
- Design the fleet-capture offer and define the hardware refresh, software term, and installation scope.
- Obtain Accounting and Legal approval for the contract and treatment.
- Do not operationalize the route as repeatable until booking and billing rules are approved.
Commercial promiseRenew with PRC and manage more of the fleet in one solution.
StatusCommercial direction is clear; operating treatment remains in progress.
Primary controlApproved service-versus-lease classification before contracting and booking.
Retrofit · data and tracking solution route
Begin with the client’s operating problem and the assets already in service, not with a generic lease product.
- Document the visibility, tracking, utilization, or data problem.
- Identify affected assets, current schedules, ownership, and installation constraints.
- Build the hardware, software, and field-installation solution.
- Escalate investor-owned and unsupported accounting routes before award commitments are finalized.
Commercial promiseSolve an immediate fleet problem without waiting for wholesale replacement.
StatusMidterm and investor-owned paths remain controlled exceptions.
Primary controlConfirm ownership and approved transaction treatment before execution.
Need the operational detail?
Open detailed journey diagrams →Open the team-and-system swimlanes for Creatio, TLX, NetSuite, LeaseWave, Billing, and Treasury handoffs.
Concepts & terminology
Commercial labels do not determine accounting.
These terms provide a common vocabulary for route design. They are educational guardrails—not approved PRC or TLX accounting conclusions.
A contract contains a lease when it conveys control of the use of an identified asset for a period in exchange for consideration.
3PM question: does the client control a specified asset, or only receive a service outcome?Commercial shorthand for ongoing access to software, data, support, or fleet-management capability. The label alone does not establish the accounting.
3PM question: what distinct service is provided, over what period, and what event activates or ends it?A lease meeting ASC 842 classification criteria indicating transfer of control. It can produce selling profit or loss and a net investment at commencement, subject to the applicable requirements.
3PM question: has Finance approved the classification, commencement date, values, and collectibility assessment?A lease that does not qualify as sales-type or direct financing. The lessor retains the underlying asset and generally recognizes lease income over the lease term.
3PM question: who retains the asset and residual exposure, and what is the approved income pattern?The third lessor classification under US GAAP: not sales-type, but it meets the direct-financing criteria. Selling profit is not treated the same as in a sales-type lease.
3PM question: do not force every lease into only “sales-type” or “operating.”One contract can contain a lease plus hardware, installation, software, or service components. Components may require separation and allocation before recognition is determined.
3PM question: are the promises distinct, and are product, contract, tax, and system mappings aligned?Under ASC 606, revenue follows the promised good or service transferred to the customer. Distinct promises are identified, priced, allocated, and recognized when or as satisfied.
3PM question: are hardware, installation, activation, software, and ongoing service separate or one combined promise?Contract signing, shipment, delivery, installation, acceptance, lease commencement, software activation, and billing can be different events.
3PM question: which approved event transfers control or begins the service for this route?Freight, duties, tariffs, usage, estimates, and true-ups may affect transaction price, allocation, invoicing, and the risk of later reversal.
3PM question: is the amount fixed, estimated, constrained, financed, or billed only when actual?Revenue-recognition checkpoint
- What contract and legal entity?
- Lease, service, sale—or a combination?
- What are the distinct promises?
- When does control or service transfer?
- Which owner approved the treatment?
Authoritative framework: FASB Topic 842 · Leases and Topic 606 · Revenue from Contracts with Customers. Exact 3PM treatment remains subject to Finance, Accounting, Tax, and Legal approval.