Property Manager

Leases Data Model Document

Author: Vaishali Karanth and Samayeeta Bandyopadhyay

Creation Date: 12-Dec-2016
Last Updated:
Document Ref:
Version: 1A

Organization: Oracle India Private Limited.

Document Control

Change Record
8
9

Date Author Versio Change Reference

n

12-Dec- Vaishali Karanth 1A Initial document

2016 and Samayeeta
Bandyopadhyay

Reviewers

Name Position

Jai Thakkar Manager, Product Support

Audience

Name Position

Product Support Team Internal.

Development Team
Table of Contents
Document Control..................................................................................................................................... 2

1. Module overview ............................................................................................................................... 6

2. Main Lease .......................................................................................................................................... 6

3. Prerequisite Setup .............................................................................................................................. 7

4. Lease Creation .................................................................................................................................... 7

4.1 Lease Header .............................................................................................................................. 8

4.2 Lease Details ............................................................................................................................... 9

4.3 Contacts ..................................................................................................................................... 11

4.4. Location ..................................................................................................................................... 11

4.4 Insurance ................................................................................................................................... 14

4.5 Rights and Obligations ............................................................................................................ 14

4.6 Options ........................................................................................................................................ 16

4.6 Payment / Billing tab ............................................................................................................... 17

4.7 Notes .......................................................................................................................................... 19

5. Flow Diagram of Table Mapping................................................................................................... 20

6. Proration Rule ................................................................................................................................... 20

7 . Term Templates .................................................................................................................................. 21

8. Grouping rules ................................................................................................................................. 23

8.1 Invoice Grouping Rule ............................................................................................................ 24

8.2 Billing Item Grouping Rules ................................................................................................... 25

9. Payment / Expense Leases .............................................................................................................. 27

9.1 Enter the Payment Terms........................................................................................................ 28

9.2 Finalizing the Lease. ................................................................................................................ 31

 9.3 Authorize the Schedules ......................................................................................................... 34

9.4 Exporting to Payables .............................................................................................................. 36

9.5 Importing invoices ................................................................................................................... 38

10. Revenue Leases ............................................................................................................................ 40

10.1 Enter the Billing Terms ............................................................................................................ 40

10.2 Finalizing the Lease. ................................................................................................................ 42

10.3 Authorize the Schedules ......................................................................................................... 44

10.4 Exporting to Receivables ......................................................................................................... 46

10.5 Importing invoices in to Receivables .................................................................................... 48

11. Lease Edit / Amend...................................................................................................................... 49

11.1 Lease Amend ............................................................................................................................ 49

11.2 Lease Edit .................................................................................................................................. 52

12. Early termination and Extension ............................................................................................... 55

12.1 Early termination ..................................................................................................................... 55

12.1.1 Termination Date after the last approved Schedule ................................................... 56

12.1.2 Termination Date before the Last Approved Schedule .............................................. 59

12.2. Lease extension ..................................................................................................................... 61

13. Foreign Currency Leases ............................................................................................................. 63

13.1 User Defined Exchange Rate .............................................................................................. 63

13.2 Automatic Derivation of exchange rate from GL. ........................................................... 65

14. Prepayment Invoice ..................................................................................................................... 68

14.1 Accounting Entries for Prepayment invoice. ....................................................................... 70

15. Normalization Functionality ...................................................................................................... 72

15.1 Transferring Normalized lines to GL .................................................................................... 72

 15.2 Calculation of normalized amount in different Scenarios ................................................. 77

15.2.1. Term Start and End date same as Lease start and Termination Date ........................... 77

15.2.2. Term Start and End Date Different from Lease Start and Termination Date .............. 78

15.2.3 Term Start Date is in the Middle of the Month ................................................................. 79

15.2.4 Payment Term with One Time Frequency ....................................................................... 80

15.2.5 Adding a New Payment Term on an Existing Lease with unapproved Schedules ... 80

15.2.6 Adding a New Payment Term on an Existing Lease with Approved Schedules ....... 81

15.2.7 Early Termination for a Normalized Lease without Approved Schedules ................. 83

15.2.8 Early Termination for a Normalized Lease with Approved Schedules ....................... 84

15.2.9 Amendment of a normalized Lease with Amend Commencement Date Different

than Lease Commencement Date .................................................................................................. 85

16. Technical Review ......................................................................................................................... 88

1. Module overview
Oracle Property Manager is part of the Oracle Real Estate Management solution. It is designed
as a property database for organizations with large property management portfolios. It
provides you with tools to manage real estate tasks, such as property administration, space
allocation, and most importantly, lease management. Landlords as well as tenants can use
Oracle Property Manager to manage lease clause information and critical real estate dates and
milestones for property leases and space administration. This dual perspective enables Oracle
Property Manager to address the needs of corporate real estate management, commercial
property management, retail or franchise operations, and investment real estate companies to
manage their real estate portfolios efficiently

2. Main Lease

Property Manager helps to maintain all aspects of managing properties like maintaining lease
related information, recording the lease agreements, calculating of lease rent, any additional
rent, common area maintenance and other charges to be paid by the Lessee.

Property Manager distributes these functions to different modules like Main Lease, Rent
increase, Variable Rent, Rent recoveries and operating expense. These modules record
information needed to calculate these amounts which are finally charged to the lessee via the
Main lease. The Main Lease form is the primary location that houses all the information for
lease management. This is the HUB of Property manager where all the information is gathered.

Rent Increase Rent Recoveries Variable rent Operating Expense

Main Lease
3. Prerequisite Setup
Before creating the lease in Property Manager Module the below setups has to be in place

Operating Unit Define Responsibility

Ledger
(OU)

Define System Setup Multi Org

Options for OU Define User
Profile options

Define Suppliers Complete setups Define Employees in

in AP in Receivables *** HRMS

*** Before creating a revenue lease, in Receivables, we need to define Transaction Sources,
Payment Terms, Transaction Types, Transaction Classes, Tax Codes, Customers, AR Payment
Term Types, Transaction Types of Invoice, Invoice and Accounting Rules.

4. Lease Creation
To create a lease navigate to > Oracle Property Manager > Lease and Documents > Main
Lease > Enter

Here is the broad overview of the different tabs in the Main lease form

In the above Dark blue tabs are the mandatory tabs and needs to be filled in while
creating a lease.
4.1 Lease Header

Operating Unit :- Select the operating unit to which the lease belongs.

Name :- Enter a unique name for the lease

Number :- If the Automatic Lease Number Generation system option is set Yes in
system options, the number will be auto generated once the lease is saved. Otherwise
needs to be manually entered.

Type :- Select Lease types, such as Net and Gross, indicate whether the tenant is
responsible for the payment of any fees, such as taxes and maintenance fees, in addition
to rent. The type field is a user-defined lookup.

Class :- Indicates your role in the lease you are abstracting and also decides whether you
will use the Payments feature or the Billings feature. The class LOV has 3 values i.e

 Expense – Select expense lease class if you are the tenant. The Expense
lease class enables the Payments feature
 Revenue – Select revenue lease class if you are the landlord. The
Revenue lease class enables the Billings feature
 Sublease – Select sublease class if you are subleasing the property to a
subtenant. The sublease class enables the Billings feature.

Master Lease :- You enter a master lease when you have chosen Sublease as the Lease
Class of your current lease.

Abstracted by :- Name of the person who creates the lease

Approval Status :- A lease can either be in Draft or Final approval status. If the lease is
in draft status, you can modify, delete, or add to the existing lease information. If the
lease is in final status, you cannot make changes to the lease unless you perform an edit
or create a lease
amendment. The default value of the Approval Status field is Draft. Once all the
information is entered for the lease change the lease status from Draft to Final.
 If the lease approval workflow setup is in place, then once the lease status is changed to
‘Final’ system automatically changes the same to ‘submitted’. Until the approval
notification is approved by the approver, the status will remain as ‘Submitted’.

Lease Status :-Lease status determines the relationship between the lessor and lessee.
The selections available for lease status include the following:
• Month-to-Month – Lessee retains possession of leased property even after
the lease has expired and after that tenant leases the property for one month
at a time.
• Holdover – Lessee retains possession of leased property after the lease has
expired and the landlord, by continuing to accept rent, agrees to the tenant's
continued occupancy.
• Terminated – A lease status of Terminated occurs after the lease end date.
• Active – A lease status of Active applies to leases that are within their lease
term range.

Primary Location :- Primary location against which the lease is being created

Schedule year Start date – Can be used allow non-monthly billing to determine the start
date of the periods in question so that the prorate calculates correctly. For e.g if you start
a quarterly billing on the 15th of Jan and if Schedule year start date is not populated, the
quarter would start on that day and run through the 14th of Apr. With this field you can
set the start date. So if you set it to 01-Jan, the first quarter would be 01-Jan - 31-Mar and
the first billing would be
prorated based on the number of days in the first quarter.

4.2 Lease Details

The details tab provides key information in relation to the lease.

The details form has many sub sections i.e

 Key Lease Dates :- this section has three key dates related to lease. They are
 - Execution :-The lease date as stated in the lease. If no lease date is stated,
the date the lease was signed may also be the execution date.
- Commencement: - The date that the lease begins.
- Termination :-The date on which lease ends / terminated

 Lease Term :- Shows details of lease term details in terms of number of years,
months and Days. This section automatically gets updated based on the lease
commencement and termination date.

 Account Defaults :- Account defaults section can be optionally used to

populate the accounts at lease level instead of populating the same on the
billings / payment tab or defaulting the same from term template.

The fields in account default section changes, depending on the lease class.

Lease Class

Revenue Expense

Revenue, Receivable Expense, Liability and

and Accrued Asset Accrued Liability

Invoice Grouping Name:- Enter the name of the invoice grouping rule you want to use
for grouping the payment or billing items. This is an optional field.

Proration Rule:- This determines how a payment or billing prorates if the term is not a
full period. The proration field has below options
 365 days / Year – The annual rent amount is divided by 365 days and based on
number of days in the fraction period the rent amount will be calculated

 360 days / Year- The annual rent amount is divided by 360 days and based on
number of days in the fraction period the rent amount will be calculated

 Days / Month- Monthly rent amount is divided by number of days in the month
to arrive the daily rent amount and daily amount is multiplied to number of days
in the fraction period to arrive the monthly rent amount.
 Functional Currency: -This field gets un-editable and shows the functional currency
attached to the ledger you have selected in system options.

4.3 Contacts

Details entered under contacts tab are optional details and are mostly entered for tracking
purpose. The contacts tab can be used to capture the addresses and phone numbers of the
contacts for lease. The values you enter in the Contacts region fields come from information you
enter when you set up contacts and it can be just linked to the lease in the contact tab. Under
contact details, details like role, name of the service provider etc are can be captured.

4.4. Location
The location tab is where you assign your pre-defined property / building against which lease is
being created. Details like estimated and actual occupancy dates, usage, purpose of the leased
location etc can be tracked under location tab and it also defines the space assignment for the
location assigned.

Type:- The type of location covered by the lease, such as Building, Floor, or Office.
Code: -The location code assigned to the location

Primary: -If a lease covers more than one location, you can use this check box to indicate
which location is the primary location for this lease. There can be more than one primary
location for
a lease.

Usage:- The anticipated use of the leased space, for example retail space or office space.

Assigned Percent Area: - The percentage of a location covered by the lease. For example, if you
are renting five floors of a 10-floor building, you can enter 50% as the Assigned Percent Area.

Estimated Occupancy Date: -The approximate date from which location to be occupied.

Actual Occupancy Date: The first date when the location is occupied.

Expiration Date: - The date the occupancy ends. The Location Expiration Date would typically
be the same as the Lease Expiration Date, and by default is set to equal the
Lease Expiration Date.

Recovery Type:- This field is enabled for billing leases and is a user defined lookup attribute
that describes the usability of a particular space.

Recovery Space Standard:- This field is enabled for billing leases and shows the Classification
of a location used in the recovery process.

Financial Obligation End Date:- This field is enabled for billing leases and is the date that the
obligation to provide the service ends.

Customer Name: -This field is enabled for revenue leases and can be used to capture the
customer against whom the lease is created.

Bill to Site:- This field is enabled for revenue leases and customer bill to site details can be
entered here.

Location Rentable Area:- This field is display only and shows the rentable area location as
defined in the Location window as of the occupancy actual start date.

Location Usable Area:- Shows the usable area of the leased location as of the occupancy actual
start date.
Location Assignable Area:- The assignable area of the leased location defined in the Location
window as of the occupancy actual start date.

Lease Rentable Area:- The rentable area of the leased location per the agreement between the
lessee and lessor.

Lease Usable Area:- The usable area of the leased location per the agreement between the lessee
and lessor. The value of the lease usable area can be entered directly or will be calculated by the
system if both the lease rentable area and the lease load factor are entered.

Lease Assignable Area:- The assignable area of the leased location per the agreement between
the lessee and lessor.

Rentable Area Variance:- This field calculates the variance between the lease rentable area and
the location rentable area as a percentage.

Usable Area Variance:- This field calculates the variance between the lease usable area and the
location usable area as a percentage.

Assignable Area Variance:- This field calculates the variance between the lease assignable area
and the location assignable area as a percentage.

Location Load Factor:- The value in this field is automatically calculated as of occupancy start
date using the following formula:

Location Load Factor = Location Rentable Area /Location Usable Area – 1

Lease Load Factor:- The lease load factor per the agreement between the lessee and lessor.

Load Factor Variance:- This field calculates the variance between the lease load factor and the
location load factor as a percentage.

Region: - Gets defaulted from location setup and shows the region in which the property is
located

Office Park: Gets defaulted from location setup.

Building/Land
Floor/Parcel Gets defaulted from Location setup
Office/Section
4.4 Insurance
The details in insurance tab are optional and can be used to capture information about any
insurance policies that cover the leased location

Type:- Show the insurance type like fire insurance, liability etc

Insurer Name:- The name of the insurance company

Policy Number:- The insurance policy number.

Active check box:- Indicates if a particular insurance policy is active

Start Dates :- Insurance coverage start date.

Expiration Date:- Insurance coverage end date

Coverage Amount Required: The cost of the insurance coverage required by law for this
type of risk.

Coverage Amount: Purchased: The cost of the insurance coverage actually purchased under
this policy.

4.5 Rights and Obligations

The rights and obligations tab is optional as well. Rights are Entitlements granted by the
landlord to the tenant.

Obligations: Outline which party is responsible for performing or paying for specific
services, costs, or duties. For example: Maintenance or lawn care
Rights Region

Num:- Line number for the right.

Type:-Type of right that you are listing. For example, right to sublease or environment
rights. The values in rights type is a look up value and users can define the same .

Grant Code:- Indicates the specific rights put upon the tenant.

Reference:- The paragraph in the lease that references the terms of this right.

Comments:- Enter comments about the right for your own reference

Obligations region

Num:- Row number of the obligation which is a system assigned value after the records are
saved.

Type:- Category of the responsibility. The appropriate person in your organization

maintains the list of valid values in the Lookups window. For example, your company
might define the Maintenance type for gardening and painting and the Expense type for
heating and electricity.

Service Provider Name:- If a service provider, such as a gardener or security firm will
provide services for this obligation, select the name of the provider.

Common Area:- Indicates who is responsible for the common area in a rented space.

Start Date:- The date that the obligation to provide the service begins.

End Date:- The date that the obligation to provide the service ends.
 Reference:- Enter the paragraph or section in the original lease that describes the obligation
so you can easily reference it.

Responsibility Type:- The specific obligation. Indicates the person or job type responsible
for a particular task, for example, landlord, tenant, or contractor.

Maintenance Responsibility:- If the obligation is for maintenance, enter the party

responsible for supervising or coordinating work with the service provider.

Active:- This is a display-only field and shows if the service provider is still active. Service
provider active status is maintained by the appropriate person in your organization in the
Service Providers window.

Responsibility %:- If a cost is associated with this obligation, the percentage that the
responsible party is obligated to pay. If there is more than one responsible party, create a
record for each party for this obligation and assign the appropriate percentage to each
record.

4.6 Options
The options tab is optional. Options are exactly that, options that the tenant or landlord can
exercise during the life of the lease. For example:

-Purchase the property or

-Extend the lease or

-Add additional space

Information’s like option type, start date of the option, end date of the option, option size,
cost, currency etc are captured under options tab.
4.6 Payment / Billing tab
If the lease is being created in the books of tenant, then you can create payment items and
schedules for the various payments you have to make in connection with your property. It
could be a rent, maintenance charges or any other expense incurred related to the property.

On the other hand, if the lease is being created in the books of landlord, you can create billing
items and schedules to keep track of the rents and other payments that are made to you.

The lease class in the header section of the lease decides whether lease will have Payments tab
or Billing tab.

Term template:- is an optional field and can be used to default values like purpose, transaction
type, distribution accounts etc for the payment term. Once the term template is attached to the
payment term, all the values defined at term template level will get defaulted to the payment
term. The values defaulted from term template can be overridden by the user before they save
the payment term.

Location :- Location against which lease is being created.

Purpose :- Enter the purpose of the payment term like base rent, cleaning, maintenance etc

Type:- Indicates the type of payment type like deposit, base rent, cleaning etc

Frequency :- Determines how often invoices are generated / payments to be made for
particular payment term. It is a system defined look up and has the below values

• Annually = 1 time a year

• Monthly = 12 times a year
• One Time = 1 time
• Quarterly = 4 times a year
• Semi Annually = 2 times a year
Normalize :- As per Accounting standard FASB-13,total rent amount needs to be spread equally
across the lease term. This can be met by checking the normalize check box. This check box
decides whether a payment term needs to be normalized or not. If the check box is checked the
payment term amount will be normalized and visa versa.

Schedule Day :- The day on which the transaction / schedules will be created. Any value
between 1 to 28 can be entered for the schedule day. Based on the schedule day, system derives
the transaction date for revenue leases and Invoice date for Payment leases. For e.g if the
schedule day is entered as 10 and if you are approving the schedule for Oct-16 period, then the
transaction date for that particular invoice will be 10th oct 2016.

Start Date: Start date of the payment term

End Date: End date of the payment term

Supplier and Supplier site :- Enter the supplier against which the lease / payment term is
created. This field will be enabled only for ‘expense’ class field will be show the supplier details
defined in Payables.

Customer Name/ Bill to Site / Ship to site :- Enter the customer against whom the lease is
created. This field is enabled only for Revenue leases and will list the customers defined in
Receivables.

Payment Term :- Decides when the payment needs to be made like immediately, after 45 days
etc.

Transaction Type :- This field is applicable for revenue leases and shows the transaction type
needs to be used for the invoice created. The LOV shows the transaction types defined in
Receivable’s.

Estimated Amount :- Enter the estimated amount of the payment if you do not know the actual
amount.

Actual Amount :- Actual amount that needs to be billed / invoiced for each individual
payment. It is also possible to calculate the rent automatically based on the area of the location.
You can do that by entering the field 'Annual/Area' in the billings/payments tab. This field
becomes enterable if the 'Area Type' value is entered and the location code is entered in the
billings/payments tab.

Target date:- is applicable for only Prepayments and decides the date on which prepayment
will be applied.
Annual Amount : Is an optional field and gets enabled only when the location details are
entered.

Currency:- Enter the lease currency. By default the functional currency of the ledger will be
defaulted. If the lease needs to be created in other currency, we need to manually select the
currency name before the payment term is saved.

Recoverable: Needs to be checked if the payment term is subject to recoveries.

Invoice Grouping Rule : Select the grouping rule you want to use for clubbing the payment or
billing items that belong to the lease terms.

4.7 Notes
The notes tab is optional and can be used to gather information’s which are not covered in
other tables

Under notes tab, details like note type, date etc will be captured. Notes type is a user
defined look up value.
5. Flow Diagram of Table Mapping

PN_LEASES_ALL
PN_PAYMENT_TERMS_ALL
PN_CONTACT_ASSIGNMENTS_ALL

PN_NOTE_HEADERS
PN_LEASE_DETAILS_ALL

PN_TENANCIES_ALL PN_INSURANCE_REQU PN_OPTIONS_ALL

IREMENTS_ALL

PN_LANDLORD_SERVICE_HISTORY
AND
PN_RIGHTS_ALL

6. Proration Rule
Based on the proration rule, system divides the lease amount when the lease starts / end
date is in the middle of the period.

For e.g a payment term has a monthly rent of 10,000 and payment term start date is 15th
Sep. Then the Sep rent amount will be

Proration rule Formula Rent Amount

365 days / Year Yearly rent / 365 * number of 10000*12/365*15=4931.50

days

360 days / Year Yearly rent / 360 * number of 10000*12/360*15=5000.00

days

Days / Month Monthly rent/days per month * 10000/30*15=5000

Number of days
The proration rule details will be stored in PN_LEASES_ALL table as follows

365 days / Year

360 days / Year

Days / Month

7 . Term Templates
Payment and billing term templates contain default term details that users can associate
with multiple leases, variable rent agreements, and rent increase agreements. Term
templates help users avoid having to enter identical information for multiple payment
and billing terms.

If a term template is associated to a payment term, then all the term details specified in the
templates are automatically assigned to the payment term. These defaulted values can be
modified at the payment or billing term level from the Payments and Billings tab before
finalizing the payment term.

While creating a lease, a term template can be associated at Term Template field in the
Details tabbed region of the Lease window or it can be associated at payment term level in
Payment / Billing tab. A single lease can have multiple term templates associated to it at each
payment term level.

Payment Term Template Billing Term Template

For both payment and billing term template, the GL Accounts related to the lease can be entered
at account distribution tab of the term template.
 Note :- GL Accounts entered in the details tab of lease takes precedence over GL
Accounts entered in the Accounts Distribution tabbed region.

Data flow

Once the payment / billing term template is defined / saved in application, these details of the
term template will be stored in PN_TERM_TEMPLATES_ALL.

The Account flow from the Term template to Leases will be

PN_TERM_TEMPLATES_ALL PN_PAYMENT _TERMS_ALL PN_DISTRIBUTIONS_ALL

While creating a lease

Term Template is
attached to the Payment
term

Accounts defined for the payment term is

Accounts defined at term

template is defaulted
 In PN_PAYMENT_TERMS_ALL table the TERM_TEMPLATE_ID is populated against
the payment term for which the term template is attached

TERM_TEMPLATE_ID
is populated

The distribution account detail for each PAYMENT_TERM_ID and

TERM_TEMPLATE_ID will be stored in PN_DISTRIBUTIONS_ALL. The below query
can be used to extract the details from PN_DISTRIBUTIONS_ALL table.

select * from PN_DISTRIBUTIONS_ALL

where payment_term_id in (

select payment_term_id

from pn_payment_terms_all

where lease_id = '&lease_id);

In PN_DISTRIBUTIONS_ALL table, the distribution accounts are inserted for Expense, Liability
and Accrued Liability Accounts as this was a Expense lease.

If the lease was a revenue lease, then system will insert accounts for Revenue, Receivable and
Accrued Asset accounts.

8. Grouping rules
Grouping rules allow you to group multiple payments / AR invoices on a single invoice instead
of having multiple invoices. Based on certain mandatory / optional attributes, the grouping
rules can be defined.

Grouping rule can be defined for both Expense leases as well as Revenue leases.
 8.1 Invoice Grouping Rule
Using invoice grouping functionality, multiple payment items can be grouped together
and create one invoice. This will help to eliminate the redundancy of creating a
transaction for each payment and will also help to decrease the number of payment
transactions exported to Payables.

Invoice grouping rule can be defined based on the combination of mandatory and
optional grouping attributes. The mandatory grouping attributes are always included in
payable grouping rules and we can create a new grouping rule by adding few optional
attributes along with the mandatory attributes.

Mandatory Attributes Optional Attributes

 Supplier  Invoice Number

 Supplier Site  Lease Number
 Payment Terms  Payment Purpose
 GL Date  Payment Type
 Invoice Date
 Currency Code
 Exchange Rate
 Exchange Date
 Exchange Type
 Legal Entity

Invoice grouping rule will work only for payment items which
 Use the same liability account
 All Mandatory Attributes are matching

To define grouping rules, the navigation from Property manager Responsibility is Setup >
Payables Transactions > Invoice Grouping Rules.

Optional Attributes
Assigning Grouping rules

You can assign invoice grouping rules at several levels to accomplish different grouping
requirements. They are

System Options (PN)

Lease Details
Overrides the rule specified
in System Options

Payment Term
Overrides the rule specified
in System Options and Lease

Payment Item
Overrides the rule specified
at other levels

8.2 Billing Item Grouping Rules

Grouping receivable invoices allow you to group multiple billing items on one invoice. Even in
receivables grouping rule, there are set of mandatory and optional grouping attributes. For the
invoices to be grouped, a billing item must match all the mandatory and optional attributes
included in the grouping rule.

Mandatory Attributes Optional Attributes

 Customer Name  Purpose

 Customer Site  Type
 Transaction Date  Lease Number
 Transaction Type
 Payment Terms
 GL Date
 Currency code
 Conversion Rate
 Payment Method
 Legal Entity

Receivables grouping rule will work only for billing items which
 Use the same receivable account
 All Mandatory Attributes are matching
 To define grouping rule with optional attributes, From Property manager
responsibility, navigate to Setup > Receivables transaction > Invoice Grouping rules.

 Purpose
 Type
 Lease number

Assigning Grouping rules

For billing items, property manager by default uses the PN_GROUPING_RULE as the
grouping rule name. This grouping rule has all the mandatory attributes and the lease
number which is a optional attribute. However if PN_GROUPING_RULE is set as
grouping rule, system will not do any grouping.

If the grouping rule needs to enabled for billing transactions, another grouping rule
needs to be defined and assigned to Property Manager Batch Source.

To enable grouping rule to the property manager batch source, navigate to Setup >
Receivables transaction > Batch Sources. Query the ‘Property Manager Batch Source’
You can assign Billing grouping rules at several levels to accomplish different grouping
requirements. They are

System Options(AR)

Batch Source option at

Transaction Source (Overrides
the rule specified in System
Options)

Bill to Site option at Customer Profile

Class
Overrides the rule specified in System
Options and Batch source level

Bill to Customer option at Customer Profile

Class
Overrides the rule specified in System Options
and Batch source and at bill to site

9. Payment / Expense Leases

While setting up the Payment lease there are multiple steps that need to be followed. After
you complete a step, then only you can continue on to the next step, or you can stop the
process at that point, and return to the next step at a later time. The steps involved are
 Enter the Authorize Import the
Finalize the Export to
Payment the Invoice in
Lease Payables
Terms Schedule Payables

9.1 Enter the Payment Terms

Navigate to Leases and Documents > Main Lease > Enter Leases and Documents > New

Lease Class ‘Expense’

Approval status “Draft’

Lease Commencement
and Termination dates

Navigate to Location tab and enter the location details against which lease is
created

Enter Location Type,

location code and
Occupancy details

Navigate to Payment tab enter the Payment term Details

Term template, Purpose
and the frequency of the
Payment term.

Schedule day, Start and

end date of the payment
term

The start and end date of the payment term gets defaulted with the lease
commencement and termination date. It can be manually overrided before the
lease is finalized.

Supplier Name and Site

against which the
Payment term is created
 Enter the Payment term
Amount and the
currency details

Once the above lease is saved, below tables will be populated.

Status D = Draft
Lease Class
Direct = Expense

Transaction_ Type ‘ABSTRACT’

is for lease creation

A row is inserted for the

Transaction_id of
‘ABSTRACT’ transaction

A row is inserted in these

two tables for
‘ABSTRACT’ transaction

Shows Location
details attached
to the lease

Shows the term

details
 9.2 Finalizing the Lease.
The next step would be to finalize the lease. To finalize a lease which is in ‘Draft’ status,
navigate to Leases and Documents > Main Lease > Enter Leases and Documents. Query
the lease in ‘Draft’ status.

Change the Approval status from ‘Draft’ to ‘Final’

Approval Status
changed to
‘FINAL’

Below message will pop up,

once the lease status is
changed to ‘Final’

To finalize the lease, click on ‘Save Now’ button. Once it is saved, the below
concurrent will be triggered automatically
 Schedule and Items
program is triggered
Automatically

Once the schedule and items program is completed successfully, the lease status
is changed to final and lease is freezed for an update in lease work bench.

After the lease finalization, the below tables will get updated / populated.

Status changed from D

to F (Draft to Final)
 Lines are inserted in PN_PAYMENT_SCHEDULES_ALL table for each period
starting from commencement date to Lease termination date
Commencement Date Termination Date

Lines are also inserted in PN_PAYMENT_ITEMS_ALL for the each Payment

term ID based on the payment term frequency and payment term start and
end date specified at payment term.

Connects to Payment term id in Connects to Payment Schedule id in

PN_PAYMENT_TERMS_ALL
PN_PAYMENT_SCHEDULES ALL _
 9.3 Authorize the Schedules
Once the lease is finalized, system will generate the schedules for all the payment terms in
the lease and these schedules will be available in Lease and Documents > Payments >
Authorize

In the authorize Payments tab, each period (starting from lease commencement date to lease
termination date) will have a line. If in case if there are multiple payment terms in a single
lease, then the amounts of each payment term will be clubbed for each period. The payment
term details for each period can be viewed by clicking on details button in Authorize
Payments form
 For e.g a lease has

Payment term 1 - 01-Jan-2016 to 31-March-2014 – Amount 3000

Payment term 2 – 01-Feb-2016 to 31-March-2014- Amount 2000

When this lease is finalized, the terms will generated as follows Jan-16 period will have
invoice amount as 3000 only
as the second term does not
have any amount in Jan-16
Payment Term ID Period Amount

Payment term 1 Jan-16 3000

Feb-16 and Mar-16 period will have 5000 (3000 +
2000) as invoice amount each. In

PN_PAYMENT_ITEMS_ALL
Payment term 1 Feb-16 3000 PN_PAYMENT_ITEMS_ALL table
PAYMENT_SCHEDULE_ID is the
will store details of each
payment term id exactly like connecting factor between these two
this Payment term 1 Mar-16 3000 lines and both the lines will have same
PAYMENT_SCHEDULE_ID

Payment term 2 Feb-16 2000

Payment term 2 Mar-16 2000

Initially when the schedules are created, all the lines will be in DRAFT status. Each month
when the rent amount is due, users have to Approve the schedules for the respective period.

Change the status from Draft

to Approved and save the
transaction
Once the lines are approved, system will automatically populate the details of user who
approved the line and the period name in which the line will be exported. Period name
will defaulted based on the schedule date period. If the line needs to be transferred to a
different period, then users can manually override the period name before exporting the
lines.

Once the schedule lines are approved and Saved in

Below three Columns are
Period name got
updated with approval
updated to Jan-16
details
updated with
approval details

Below three Columns are

updated and the line is ready
In for exporting to AP

9.4 Exporting to Payables

Once the schedule lines are approved, the next steps would be to export the lines to AP.
The navigation for the same is Leases and Documents > Payments > Export to Payables.
In export form, all the lines which are approved will be visible
 Approved Lines

Click on Export button to

trigger the Export program

Once the export button is clicked, the below concurrent program is triggered
automatically

The log file of the Export program will show the details of the invoices that are
exported to Payables

Below two invoices are inserted

in Ap_interface
 Once the Lines are exported, the invoice details can be viewed in Payment
Schedule details form

Invoice PN-5218 is generated

TRANSFER_DATE and TRANSFERRED_BY_USER_

At table level values are populate

Above details related to Invoice transferred

are populated

9.5 Importing invoices

Once the lines are exported from Property Manager, the export program inserts the
lines in Ap_interface table. To import these lines into payables system, we need to run
the ‘Payables Open Interface Import’ program.
Once the program is completed, the import program output file shows that below
invoices are imported into payables and can be viewed in Invoice work bench.
 10.Revenue Leases
While creating a Revenue lease, below steps needs to be followed

Enter the Authorize Import the

Finalize the Export to
Billing the Invoice in
Lease Receivables
Terms Schedule Receivable

10.1 Enter the Billing Terms

Navigate to Leases and Documents > Main Lease > Enter Leases and Documents > New

Lease Class ‘Revenue’

Approval status “Draft’

Lease Commencement
and Termination dates

Navigate to Location tab and enter the location details against which lease is
created

Enter Location Type,

location code and
Occupancy details
 Navigate to Billing tab enter the Billing term Details

Term template, Purpose

and the frequency of the
Payment term.

Schedule day, Start and

end date of the payment
term

The start and end date of the payment term gets defaulted with the lease
commencement and termination date. It can be manually overrided before the
lease is finalized.

Customer Name, Bill to

Site, Payment term and
Transaction type details
Enter the Billing
amount and the
Currency Details

Once the above lease is saved, below tables will be populated.

Lease Class Status D = Draft
Third_party=Revenue

All other tables like

PN_LEASE_TRANSACTIONS_ALL,
PN_LEASE_CHANGES_ALL,
Will be updated with similar details as
PN_LEASE_DETAILS_ALL, they are updated in case of Payment /
Expense leases. The details of the same is
PN_LEASE_CHANGES_ALL, documented / Explained in earlier chapter

PN_TENANCIES_ALL,
PN_PAYMENT_TERMS_ALL

10.2 Finalizing the Lease.

The next step would be to finalize the lease. To finalize a lease which is in ‘Draft’ status,
navigate to Leases and Documents > Main Lease > Enter Leases and Documents. Query the
lease in ‘Draft’ status.
 Change the Approval status from ‘Draft’ to ‘Final’

Approval Status
changed to
‘FINAL’

Below message will pop up,

once the lease status is
changed to ‘Final’

To finalize the lease, click on ‘Save Now’ button. Once it is saved, the below
concurrent will be triggered automatically
 Schedule and Items
program is triggered
Automatically

After the lease finalization, the below tables are updated as it is done in Expense
leases

 PN_LEASES_ALL - STATUS is updated to F (Final)

 PN_PAYMENT_SCHEDULES_ALL – Lines are inserted for each period

from lease commencement date to lease termination date.

 PN_PAYMENT_ITEMS_ALL – Schedule lines are generated for each

Payment term in the lease

10.3 Authorize the Schedules

Once the lease is finalized, system will generate the schedules for all the payment terms in
the lease and these schedules will be available in Lease and Documents > Billings >
Authorize
Initially when the schedules are created, all the lines will be in DRAFT status. Each month
when the rent amount is due, users have to Approve the schedules for the respective period.

Change the status from Draft

to Approved and save the
transaction

Once the schedule lines are approved and Saved in

Below three Columns are
Period name got
updated with approval
updated to Jan-16
details
updated with
approval details

EXPORT_TO_AR_FLAG

In is set to Y
10.4 Exporting to Receivables
Once the schedule lines are approved, the next steps would be to export the lines to AR.
The navigation for the same is Leases and Documents > Billings > Export to Receivables.
In export form, all the lines which are approved will be visible

Approved Lines

Click on Export button to

trigger the Export program

Once the export button is clicked, the below concurrent program is triggered
automatically

The log file of the Export program will show the details of the lines that are exported to
Receivables
At table level

Above details related to Invoice transferred

are populated

AR_REF_CODE is the connecting link between Property Manager and

receivables. It connects the PN_PAYMENT_ITEMS_ALL with
RA_CUSTOMER_TRX_LINES_ALL and it is concatenation between lease_num
and AR_REF_CODE. For e.g in PN_PAYMENT_ITEMS_ALL table the
AR_REF_CODE is populated as 32657 and the lease number for the lease is
22648. So RA_CUSTOMER_TRX_LINES_ALL table will have the
interface_line_attribute1 value populated as “22648 – 32657”
10.5 Importing invoices in to Receivables
Once the lines are exported from Property Manager, the export program inserts the
lines in AR interface tables. To import these lines into Receivables, we need to run the
‘Autoinvoice Import Program’ program.

Once the program is completed, the import program output file shows that below
invoices are imported into payables and can be viewed in transaction work bench.
 11.Lease Edit / Amend
When the lease is in ‘DRAFT’ status, any information pertaining to the lease can be updated /
corrected. However once the lease is finalized, to update / correct the lease details one has to
choose Edit / Amend option.

Normally ‘edit’ option is used to correct the errors that are made in lease creation or to enter
some additional information related to the lease where as ‘Amend’ option is used when the
lease agreement has been amended. That is why few information related to Leases can be
updated only via Amend option and few information can be updated only via Edit option. The
details of fields which can be updated via Amend / Edit is listed in property Manager user
guide (Amend Lease and Edit Lease windows Page No. 4.97)

11.1 Lease Amend

Lease amend feature is used when there is an amend / change in lease agreement which is
agreed by tenant and landlord. An amendment usually describes agreements between the
landlord and tenant that are not in the original lease. These agreements may cover changes to
the original lease terms, or they may cover new lease terms that do not appear in the lease itself.
As mentioned earlier, few changes to the lease can be made only by amending the lease and
each amend will have unique name and number which can be mapped to the amendment being
made.

To amend a lease, navigate to Oracle Property Manager > Lease and Documents > Main Lease >
Query the lease and click on amend button
 Click on Amend button to
Amend the lease

The amend button will open the below form

Name :- Name the amend transaction which can be mapped to the transaction being
performed

Number:- Amendment number which will be automatically generated

Execution Date:- Execution date of the amendment

Commencement Date:- The date that the lease amendment begins.

Termination Date:- The date that the lease amendment ends.

Abstracted By: -The name of the person who creates the amendment to the lease.
 Assigned To:- The name of the person to whom responsibility for the amendment is
assigned.

Transaction Flow - Perform the below steps to amendment an existing lease

Note : In the below example we will be adding a new term to an existing Lease.

Enter the Amendment Name ,

Execution Date ,
Commencement and
Termination Date

Enter the term details

New Payment term

Created

Now Save the transaction. System will automatically trigger the Schedule and
Items program
 The amendment transaction details are updated in below tables.

Shows the transaction

Type ‘AMEND’

Shows the details of ‘AMEND’ Transaction.

LEASE_TRANSACTION_ID
is the connecting link between these two tables

The LEASE_CHANGE_ID populated for the new

PAYMENT_TERM is same as the LEASE_CHANGE_ID
generated for the AMEND transaction in
PN_LEASE_TRANSACTIONS_ALL

Since the amendment was to include a

new payment term, in
PN_PAYMENT_TERMS_ALL a new
line is inserted with the term details.

Schedules are generated for the new

payment term

11.2 Lease Edit

As documented earlier, Lease edits functionality is used to make changes or additions because
of an error or omission that was made when the lease information was originally entered. When
you edit a lease, the new information becomes part of the lease information. Unlike lease
amendments, edits are not identified by a name or number. Using edit functionality, only few
information related to the lease can be changed.

To edit a lease, navigate to Oracle Property Manager > Lease and Documents > Main Lease >
Query the lease and click on edit button
 Click on Edit button to Edit
the lease

The edit button opens the below form

The edit form will be the replica of the lease form which will be used during lease creation and
when the edit form is opened, only few fields are enabled for update.

Note: For testing purpose we will edit the ‘usage’ details of the location in location form. The
below screen shot shows the current location and usage of the location.
 Current location and
usage details attached
to the lease

Now change the usage details of the location to a different value.

Now the usage is

changed to ‘Office
Space’

Edit details will be stored in below details

Shows the
TRANSACTION_TYPE as
’EDIT’

A line is also inserted in PN_LEASE_CHANGES_ALL table for the EDIT transaction.

 As this was a edit transaction, the original details (Usage in this example) table level is
updated directly. So in PN_TENANCIES_ALL table we can see that
TENANCY_USAGE_LOOKUP_CODE updated as ‘OFFICE’ now where as
PN_TENANCIES_HISTORY table will have the earlier details.

Shows the current value set for ‘Usage’

Shows the usage type used before EDIT

12.Early termination and Extension

12.1 Early termination

Early termination is a situation where the lease agreement is terminated before the earlier
agreed termination date. In Property manager, what is the latest termination date that can be
entered during early termination is determined by profile

The termination date

can be prior to the last
approved schedule

Yes

PN: Allow Early Termination Before Last

Approved Schedule

No
The termination date
can NOT be prior to the
last approved schedule

Before early termination of lease, all the approved schedule needs to be exported to AR / AP or
the approval status needs be cancelled. If lease has a schedule which is approved and not yet
exported, then termination will end in error.

The early termination needs to be done via Amend feature.

 12.1.1 Termination Date after the last approved Schedule
To early terminate, navigate to Oracle Property Manager > Lease and Documents > Main Lease
> Query the lease and click on Amend button. When the amend form opens, the lease
termination date will get defaulted to the current termination date

Current termination
date

Enter all the details related to lease amendment

New termination date

Now save the transaction. System automatically triggers the schedule and items
program
 The output of the schedule and items program shows the revised schedule details based
on the new termination date.

All the schedules after 01-Oct-2016 to 31st Dec 2017 got deleted automatically. Now when we re-
query the lease, the termination date in lease Details form as well as Payment term form will be
showing the new termination date

At table level, the effect of pre-termination can be seen in

Shows the New

termination date

Shows the earlier

termination date
 Payment term end date is
updated to new termination date

Schedules are Generated as

per the new termination date

Payment terms are generated

only until the new
termination date
12.1.2 Termination Date before the Last Approved Schedule
For the lease which will be preterminated has the approved schedules until Nov-16 period
which can be seen by navigating to Leases and Documents > Payments > Authorize

The profile PN: Allow Early Termination Before Last Approved Schedule is set to yes

Now, Navigate to Lease and Documents > Main Lease > Query the lease and click on Amend
button. When the amend form opens, the lease termination date will get defaulted to the current
termination date

Current termination
date
 Enter all the amendment details

New Termination
date

When the amendment is saved, schedule and items program is triggered automatically and the
output of the concurrent shows

Sep-16 period shows -30000 =30000 for Sep-

16 period +(-60000 generated for reversing
the Oct-16 and Nov-16 Period)

In Authorize Payment form, we can see two schedules for Sep-16 period
 30000 which was approved prior to Pretermination.
-60000 which is generated post pretermination to
reverse the amount approved for Oct-16 and Nov-
16

The same details can be visible in

12.2. Lease extension

In case of lease extension, the lease contract is extended after the earlier agreed termination
date. Even the lease extension needs to be done via Amend feature only.

When the lease extension is done, system will automatically generate the schedules for the
extended period.

For e.g earlier lease agreement was for the period 01-Jan-2016 to 30-Jun-2016 and in Payment
authorize form, the schedules are generated only until 30-Jun-2016
Now via amend, the lease contract was extended up to 31st Dec 2016. Post the amend
transaction we can see that in schedules are generated until 31st Dec 2016
 13.Foreign Currency Leases
In property manager a billing / payment term can be entered in any other currency than the
functional currency of the ledger. In the lease work bench, by default the functional currency
value will be visible. If you want to add any other value to the Currency LOV in payment /
Billing tab, the same needs be added by navigating to Property Manager > Setup >International
>Enable Reporting Currencies

When a payment term is created with foreign currency, billing / payment amounts are
converted into functional currency based on

 Conversion rate type specified in the Currency Conversion Type system option.

 Conversion Type specified in Reporting Currencies window for the functional currency.
This will be used only if the Conversion rate type is not specified in system option

 Entering the conversion rate manually in Payment terms window. This can be entered
only if the Conversion rate type is set to ‘user’ in System Option

13.1 User Defined Exchange Rate

Navigate to System options and set the Currency Conversion type as ‘User’
Currency Conversion Type
is set to ‘User’

Now navigate to lease work bench and create a lease. In Payment tab select the foreign currency
and enter the exchange rate (since we have set the Currency Conversion type to ‘User’ in system
options, the rate field is enabled. Otherwise this field will be grayed out and system
automatically derives the exchange rate)

Change the Currency to a

foreign Currency

In case of user entered exchange rate, the rate defined in payments tab will used to derive the
functional amount throughout the lease period.

After the lease is finalized, in Payment schedule form we can see

 Actual – Functional Currency amount
Accounted – Foreign Currency Amount
Rate – Shows the exchange rate used

Shows the details of Currency,

The currency details, exchange rate used etc will be stored in Exchange rate etc

13.2 Automatic Derivation of exchange rate from GL.

Set the Currency Conversion type to Corporate or any other type which has exchange rate defined in GL
Currency Conversion Type
is set to ‘Corporate’

Now navigate to lease work bench and create a lease. In Payment tab select the foreign
currency. In this case exchange rate field is grayed out as exchange rate will be automatically
derived.

Change the Currency to a

foreign Currency

After the lease is finalized, in Payment schedule form we can see

 Actual – Functional Currency amount
Accounted – Foreign Currency Amount
Rate – Shows the exchange rate used. In
this case exchange rate is derived based
on the exchange rate defined in GL

Note :- When these payment schedules are approved and exported to AP / AR, the amounts will
be exported in reporting currency only and invoices will be created in reporting currency i.e
FRF currency in our example.

For converting the foreign currency to functional currency, system uses the transaction and
system date to determine the rate.

<= System date

a. Transaction Date Transaction date rate
>System date
b. Transaction date System Date rate

a. If the transaction date of the schedule item is equal or prior to system date then
accounted amount is calculated using the currency conversion rate of transaction date.
For e.g if the transaction date of the schedule is 15th of Oct 2016 and system date is 25th of
Oct, then the schedule will be converted using the exchange rate defined for 15th of Oct
2016.
b. If the transaction date of the schedule item is after the system date, Property Manager
calculates the accounted amount using the currency conversion rate in effect on the
system date. For e.g if the transaction date of the schedule is 28th of Oct 2016 and system
date is 25th of Oct, then the schedule will be converted using the exchange rate defined
for 25th of Oct 2016.

 For future dated schedules, conversion happens when the schedules are approved.
 14.Prepayment Invoice
Property manager provides the functionality to book advance rent / prepayment amount both
for Expense as well as revenue leases. To create a prepayment invoice, navigate to lease work
bench > Payment / Billing tab

Select the Type as

‘Prepayment’ and Frequency
as ‘One time’

Enter the start date

and end date as same
date

Enter the supplier details against whom the prepayment is created

 Enter the Prepayment
amount and the Target date

 Target date is the rent payment date against which prepayment is being made.

Once the prepayment is finalized and saved, schedule and items program is automatically gets
triggered. Post that in authorize Payment tab we can see that
 Two schedules are generated
1. For the accounting prepayment
2.Second one on target date to
reverse the prepayment

 Even though Payment type in property manager is selected as ‘Prepayment’ when the
lines are interfaced to payables, the invoice type will be ‘Standard’ only.

14.1 Accounting Entries for Prepayment invoice.

While creating a prepayment type of payment term, you need to enter the General
Ledger accounts: expense, liability and accrued liability for expense leases and revenue,
receivable, and accrued asset for billing leases.

Accounting At the time of prepayment is

Account Debit Credit

Prepaid Expense Prepayment Amount

Cash Prepayment Amount

On Target date

Account Debit Credit

Rent Prepayment Amount

Prepaid Expense Prepayment Amount

Data flow at table level
Payment Term Type is populated as Shows the target date on which
‘PRE’ prepayment need to be reversed

Two Payment schedules are generated

1. As of prepayment date
2. one as of Target date
 15.Normalization Functionality
As per FASB-13 standards for leases, Public Limited companies need to normalize or
calculate the average rent payments/billings over the term of the lease. Rent normalization
spreads the cost of rent payments and adjustments over the term of the lease and provides a
schedule of detailed monthly figures for financial reporting.

For normalizing a payment term, while creating the lease the ‘Normalize’ check box needs
to be checked in Billing / Payment tab

Normalize check box need to be

checked for the payment term to get
normalized

To arrive on the normalization Amount the below formula will be used

= Total Rent amount / # Periods from Lease start date to lease end date

15.1 Transferring Normalized lines to GL

When normalized lines are transferred to GL, the above accounts will be bit and they need
to be defined at lease / term template level

Expense Lease

 Expense
 Liability
 Accrued Liability
 Revenue Lease

 Revenue
 Receivable
 Accrued Asset

When a normalized lease / payment term is finalized, schedule and items program
calculates amount for both cash as well as normalized cash. If the lease is not
normalized, the normalization Cash column will show zero values

In the above report, the column

Total cash:- Shows total amount that will be exported to AP

Normalization Cash:- Shows the Actual amount that need to be normalized for each
period

Account Expense:- Shows the average / normalized amount.

Adjustment column:- Shows the difference between normalized amount and the total
cash amount

Accrued Liability:- Shows the balance of rent amount that is lying in Accrued Liability
account for each period. At the end of lease, the Accrued Liability has to be zero.

When a normalized lease is created, system will generate a separate line for Cash and
Normalized amounts and the same can be seen in

Shows that Cash and

normalized Lines are
generated for each period
In case of normalized leases, the cash lines are sent to AP / AR and normalized lines are set to
General ledger.

For steps to be followed for transferring the Normalized lines to GL is

Run Transfer Run Create Transfer

Approve Export to
Normalized Accounting Journal
the terms AP / AR Lines to GL Program Entries
Program

Transfer Normalized Lines to GL Program :

This program can be run to transfer normalized lines to GL for both expense and Revenue
leases. The program can be run at lease level, supplier level , customer level or based on
schedule dates.

Once Transfer Normalized Lines to GL Program is completed successfully, in

PN_PAYMENT_ITEMS_ALL table the XLA_EVENT_ID will be populated.

Event_id is populated for

normalized lines.

In XLA_EVENTS table the EVENT_ID will be in U (unprocessed) status and

EVENT_DATE will of the lease transaction date.
The next step would be to run the create accounting program to transfer these lines
to GL

Since create accounting program was run with ‘Transfer to General ledger’
parameter set to ‘Yes’ the journals got imported to GL automatically and program
‘Update Subledger Accounting Balances’ also got fired.

The create accounting output file shows the details of the accounting entry generated
for the normalization
Now we can see the journal in unposted status in Enter Journal form

In case of normalized Expense leases

When the Payables invoice which is transferred from property manager is accounted
in payables

Account Debit Credit

Accrued Liability Rent amount

Liability Rent amount

When the Create accounting program is run for transferring normalized entries

Account Debit Credit

Expense Normalized
Amount

Accrued Liability Normalized

Amount

In case of normalized Revenue leases

When the Receivable invoice which is transferred from property manager is

accounted in receivables
 Account Debit Credit

Accounts Receivable Rent amount

Accrued Asset Rent amount

When the Create accounting program is run for transferring normalized entries

Account Debit Credit

Accrued Asset Normalized

Amount

Revenue Normalized
Amount

15.2 Calculation of normalized amount in different Scenarios

Calculation of normalization amount differs based on many factors. Below are the few
scenarios

15.2.1. Term Start and End date same as Lease start and Termination Date
The lease has below details

Details Start Date End Date Amount Frequency

Lease 01-Jan-2016 31-Jan-2016 - -

Payment Term 01-Jan-2016 31-Jan-2016 30000 Annual

The schedules will be generated as follows

 Total Cash amount which will be
exported to AP. Since the
Payment frequency is annual,
Normalized amount which will be
only one cash term is generated.
transferred to GL Every month

Normalized amount = Total rent amount / number of periods in lease period

= 30000/12 (1st jan 2016 to 31st Dec 2016) = 2500

15.2.2. Term Start and End Date Different from Lease Start and Termination Date
Lease details

Details Start Date End Date Amount Frequency

Lease 01-Jan-2016 31-Jan-2016 - -

Payment Term 01-Jan-2016 30-Jun-2016 30000 Monthly

Normalized amount which will be

transferred to GL Every month for the
lease period i.e 1st Jan to 31 Dec 2016

Total Cash amount which will be

exported to AP for the payment
term period i.e 01 Jan to 30th Jun
2016

Normalized amount is calculated as = Total cash amount for the term / Number of
periods in Lease period
 = 30000*6 / 12

=15000

15.2.3 Term Start Date is in the Middle of the Month

Details Start Date End Date Amount Frequency

Lease 01-Jan-2016 31-Jan-2016 - -

Payment Term 15-Jan-2016 14-Jun-2016 30000 Monthly

Note : Proration rule used in the above example is 365.

Cash Amount calculation Normalized Amount calculation

Jan-16 Normalized Amount

= Annual rent amount / 365 days * 17 days = Total Rent amount / No. of periods

= 30000*12/365 * 17 = 150575.3 / 12

= 16767.12 = 12547.95

Jun-16

= 30000*12/365 * 14

= 13808.22
15.2.4 Payment Term with One Time Frequency
Details Start Date End Date Amount Frequency

Lease 01-Jan-2016 31-Jan-2016 - -

Payment Term 01-Feb-2016 01-Feb-2016 30000 One time

Normalized amounts are

accounted from Jan-16
period itself as the Lease
start date is 1st Jan 2016

Cash Amount is accounted in Feb-16 as

the payment term date was 1st Feb 2016

15.2.5 Adding a New Payment Term on an Existing Lease with unapproved Schedules
The lease as below details as of now

Details Start Date End Date Amount Frequency

Lease 01-Jan-2016 31-Jan-2016 - -

Payment Term 01-Jan-2016 30-Jun-2016 30000 Monthly

So schedules are generated for the above lease as follows

 Now on the same lease, add one more payment term via Amend. The term details are

Details Commencement Start Date End Date Amount Frequency

date

Payment 01-JAN-2016 01-Feb-2016 30-Jun-2016 10000 Monthly

Term

Schedules post the amend transaction are as follows

In the above case, the normalized amount is calculated as follows

Total cash amount

Term 1 = 30000 * 6 = 180000

Term 2 = 10000 * 5= 50000

So total cash amount = 180000 + 50000 = 230000

Number of period from 1st Jan 2016 to 31-Dec-2016 = 12.

So normalized amount = 230000/ 12

= 19166.67

15.2.6 Adding a New Payment Term on an Existing Lease with Approved Schedules
The lease as below details as of now
 Details Start Date End Date Amount Frequency

Lease 01-Jan-2016 31-Jan-2016 - -

Payment Term 01-Jan-2016 30-Jun-2016 30000 Monthly

So schedules are generated for the above lease as follows

Now approve and export the schedules for Jan-16, Feb-16 and Mar-16 period

Post that add a new payment term via Amend for the approved period. The new term
details are

Details Commencement Start Date End Date Amount Frequency

date

Payment 01-JAN-2016 01-Jan-2016 30-Jun-2016 10000 Monthly

Term

Schedules Post the amend will be as follows

Normalized amounts for

approved period also got
recalculated and changed
from 15000 to 20000
based on new payment
term
 Since for Jan-16, Feb-16 and Mar-16 period schedules were already approved, system
will generate a new schedules for these periods and can be visible in Draft status in
Authorize form

New schedules
generated after adding a
new payment term which
are in draft status.

15.2.7 Early Termination for a Normalized Lease without Approved Schedules

The lease as below details as of now

Details Start Date End Date Amount Frequency

Lease 01-Jan-2016 31-Jan-2017 - -

Payment Term 01-Jan-2016 31-Dec-2016 10000 Monthly

So schedules are generated for the above lease as follows

 Now Early terminate the lease and enter the termination date as 31st Dec 2016.
Now system automatically triggers the schedules and items program the revised
schedules will be as follows

Normalized amount got

recalculated based on
the revised termination
date

15.2.8 Early Termination for a Normalized Lease with Approved Schedules

The lease as below details as of now

Details Start Date End Date Amount Frequency

Lease 01-Jan-2016 31-Jan-2017 - -

Payment Term 01-Jan-2016 31-Dec-2016 10000 Monthly

So schedules are generated for the above lease as follows

Now approve / Export the schedules for Jan-16, Feb-16 and Mar-16 periods and post that
pre-terminate the lease with termination date as 31st Dec 2016. Now the normalized
amount is recalculated based on the revised termination date.
 Since Jan-16, Feb-16 and Mar-16 period schedules are already approved, system inserted
the new draft schedules to adjust the normalized amount based on revised termination
date

New schedules
generated for adjusting
the normalized amounts
for approved periods.

15.2.9 Amendment of a normalized Lease with Amend Commencement Date

Different than Lease Commencement Date
Create a lease with below details

Details Start Date End Date Amount Frequency

Lease 01-Jan-2016 31-Jan-2017 - -

Payment Term 01-Jan-2016 31-Dec-2016 10000 Monthly

Schedules are generated as follows

 As of now, the total cash
amount is divided
through the lease period.

Now, via Amend we will add a new payment term to the lease.

Commencement date is
entered as Payment term
start date

In payments tab, create a payment term with start date as 01-Jan-2017 and end date as 31-Dec-
2017
Schedules Items program output shows that schedules are generated as follows

The cash amount of second term is divided

only for the payment term period instead of
lease period as the commencement date
entered during amend is for the payment
term start date
16. Technical Review

1. List of Packages

S.No PLS File Package Description

1 PNTXPMTS.pls PN_EXP_TO_AP Exports data to Accounts

Payables

2 PNTXBILS.pls PN_EXP_TO_AR Exports data to Accounts

Receivables

3. PNTLEASB.pls PN_LEASES_PKG Leases Main package

4. PNTEXPIB.pls PN_EXP_PAYMENT_ITEMS_PKG Export Payment Items

package

5. PNTLCHGB.pls PN_LEASE_CHANGES_PKG Lease Changes Package

6. PNTLSDTB.pls PN_LEASE_DETAILS_PKG Lease Details Package

7. PNSCHITB.pls PN_SCHEDULES_ITEMS Schedule and Items package

8. PNGRPBYB.pls PN_PAY_GROUP_BYS_PKG Lease options package

9. PNTTRMTB.pls PN_TERM_TEMPLATES_PKG Term Template Package

10. PNXLAEVB.pls PN_XLA_EVENT_PKG Generates event details for

normalized lines
2. Code Review as per Actions

Creation of a Lease

Package : PN_LEASES_PKG

Procedures:

PN_LEASES_PKG.Insert_Row

Inserts the data to PN_LEASES_ALL table

Associated Procedures:

PN_LEASE_CHANGES_PKG.Insert_Row

Inserts data in PN_LEASE_DETAILS_ALL table

Inserts data in PN_LEASE_TRANSACTIONS_ALL table

PN_LEASE_DETAILS_PKG.Insert_Row

Inserts data in PN_LEASE_CHANGES_ALL table

PN_SCHEDULES_ITEMS.Insert_Payment_Term

Inserts data in PN_PAYMENT_TERMS table

Updating of a Lease

Package : PN_LEASES_PKG

Procedure:

PN_LEASES_PKG.Update_Row

Updates data in PN_LEASES_ALL table

Calls Procedures:

PN_LEASE_DETAILS_PKG.Update_Row

Updates data in the PN_LEASE_DETAILS_ALL table

Inserts history data in PN_LEASE_DETAILS_HISTORY table

PN_LEASE_CHANGES_PKG.Update_Row

Updates data in the PN_LEASE_CHANGES_ALL table

Finalizing the Lease

The Schedules and Items concurrent program is run which triggers the following package:

Package : PN_SCHEDULES_ITEMS_PKG

Procedure : SCHEDULES_ITEMS

This is the main procedure called by the Concurrent Program which in turn calls all the other
procedures.

Associated Procedures:

CREATE_SCHEDULE

This procedure checks whether a schedule exists for a given lease id and given schedule date. If
no schedule exists, create the schedule and return back the schedule Id.

Inserts data into PN_PAYMENT_SCHEDULES_ALL table

INSERT_PAYMENT_TERM

Procedure to create records in pn_payment_terms table

Calls pnt_payment_terms_pkg.Insert_Row

EXTEND_PAYMENT_TERM

This procedure will be called to extend the end date on a not normalized payment term. This
procedure is called from ROLLOVER_LEASE

Updates pn_payment_items_all table

CREATE_PAYMENT_TERM

This procedure will be called to create a payment term

Inserts row in PN_PAYMENT_TERMS_ALL table

DELETE_TERM

Deletes a term

Deletes from pn_payment_items_all and pn_payment_terms_all table

CREATE_CASH_ITEMS

This procedure creates the cash items by inserting given amount, schedule Id and date, term Id
etc. in the table PN_PAYMENT_ITEMS.

Inserts data into PN_PAYMENT_ITEMS_ALL table

UPDATE_CASH_ITEM

It updates last Cash Item by updating table PN_PAYMENT_ITEMS_ALL with new adjustment
amount

CREATE_NORMALIZE_ITEMS

This procedure sums up the Cash amount of a given term, calculates the monthly normalize
amount, prorated the first and/or last month's amount if needed and finally creates Normalize
items by inserting row in table PN_PAYMENT_ITEMS.

Inserts data into PN_PAYMENT_ITEMS_ALL table

PROCESS_TERM

This procedure creates Schedules and Cash Items for a given Term. It collects information for all
schedules, get cash amount and creates the cash item, if term is normalized, then create
Normalize Item as well.

UPDATE_CASH_ITEM

This procedure is used in contracting last schedule of a given term/lease. It updates last Cash
Item by updating table PN_PAYMENT_ITEMS with the new prorated amount calculated by
procedure GET_AMOUNT

Updates pn_payment_items_all table.

ADD_MAIN

This procedure is used to add a payment term in a given lease when lease is is added through
EDIT or AMEND. GET_SCH_INFO gives information of the term, PROCESS_TERM creates
schedules if required and the Cash / Normalized items.

CONTRACTION_BY_ITM_END_DT

This procedure is used to contract a given lease. Extra schedules and Cash Items of all terms are
deleted and the cash for last item is recalculated. For Normalized term, items are re-
Normalized.The contraction is done based on item end dates of the terms
EXPANSION

This procedure is used to expand a given lease, all terms of the given lease are expanded.
GET_SCH_INFO gives information of the term, PROCESS_TERM creates schedules if required and
the Cash / Normalized items.

ABSTRACT

This procedure is used to add a payment term in a given lease when lease is abstracted for the
1st time. GET_SCH_INFO gives information of the term, PROCESS_TERM creates schedules if
required and the Cash / Normalized items.

ADD_IND_VAR

This procedure is used to add a payment term in a given lease when lease is added through
INDEX RENT increase. GET_SCH_INFO gives information of the term, PROCESS_TERM creates
schedules if required and the Cash / Normalized items.

CONTRACT_PAY_TERM

This procedure is used to contract a given term. Extra schedules and Cash Items of all terms are
deleted and the cash for last item is recalculated. For Normalized term, items are re-Normalized.
Populating Distribution Account details

Package : PN_EXP_PAYMENT_ITEMS_PKG

Used to populate the distribution Accounts details in PN_DISTRIBUTION_ACCOUNT table from

term template

Updates PN_PAYMENT_ITEMS_ALL and PN_PAYMENT_SCHEDULES_ALL table

Lease Options Package

Package : PN_PAY_GROUP_BYS_PKG

Inserts and Updates into pn_pay_group_bys table

Terms Template Package

Package : PN_TERM_TEMPLATES_PKG

Inserts, Updates and Deletes data from pn_term_templates_all table as per requirement

Generate Event details for Normalized Lines

Package : PN_XLA_EVENT_PKG

Procedure : create_xla_event

Given a schedule_id, creates SLA events for all normalized items under that schedule

Calls xla_events_pub_pkg.create_event
Exporting data to Accounts Payables

Package : PN_EXPORT_TO_AP

For loading PN's Invoice Info into AP's Interface Tables (Concurrent Process is run)

Procedures:

EXP_TO_AP

Main procedure called by the concurrent program

Groups Invoices and transfers to AP

Calls the following procedures as per the data

GET_LIABILITY_ACC

Gets the Liability account for a payment item given thePayment Term ID. If a Term has no
Liabilty account defined in its distributions, the Liability account is defaulted from the Vendor
Site; in case a Liability account is not defined for a Vendor Site, it is defaulted from the Vendor.

POPULATE_GROUP_BY_FLAGS

Populates group by flags to be used later by get_order_by_grpby to create the order by clause
and by group_and_export_to_AP for flagging groups.

EXPORT_ITEMS_NOGRP

Creates entries in AP Interface for Invoice and Invoice Lines. This procedure is the default
functionality when Grouping Rule is not defined at any level.

CACHE_EXP_ITEMS

Uses the query string created in Q_Payitems to query and cache the valid payment items. At a
given time, the cache is designed to contain items with the same grouping rule. The items are
also ordered in groups, but the groups will need to be identified at begin/end and flagged
accordingly.

GROUP_AND_EXPORT_ITEMS

Once a group has been identified, Insert into AP Invoice interface one record for the Invoice with
the Expense account. For each Invoice, insert into the AP Invoice Lines interface table as many
records as the Distributions for Liability and Accrued Liability per item.
Finally, inserts the data into the ap_invoices_interface and ap_invoice_lines_interface tables

Updates transferred flag in UPDATE pn_payment_items_all and respective information in

pn_payment_schedules_all table

Exporting data to Accounts Receivables

Package : PN_EXP_TO_AR

For loading PN's Invoice Info into AR’s Interface Tables (Concurrent Process is run)

Procedures:

EXP_TO_AR_GRP

Calls this procedure if a Grouping Rule is specified such that Items can be grouped into one
invoice

Updates pn_payment_terms_all table

Inserts data into following tables:

RA_INTERFACE_LINES_ALL

RA_INTERFACE_SALESCREDITS_ALL

RA_INTERFACE_DISTRIBUTIONS_ALL

Updates transferred flag in UPDATE pn_payment_items_all and respective information in

pn_payment_schedules_all table

EXP_TO_AR_NO_GRP

Calls this procedure if no Grouping Rule is specified.

Follows same process as Procedure : EXP_TO_AR_GRP

E-R Diagram for Data Flow into Property Manager tables