Essentials of Oracle Property Manager

Essentials of Oracle
Property Manager
OAUG Training
Bryan Eckle
Copyright © 2002 by Bryan P. Eckle

Introduction
Who?
Bryan Eckle
Summit2Sea Consulting
 Over 6 years of experience working with
Oracle Financial Apps
 Currently Implementing Property Manager

Introduction
David Roberts
FullNorth Technology Group
 Business Development for Oracle
Applications for Retail and Energy
industries
 Over 6 years of experience working with
Oracle Financial Applications

Contact Information
Summit2Sea Consulting
Bryan Eckle, bryan.eckle@sum2sea.com
703.582.3665

Introduction
Why?
There is a gap in the documentation and
training available for the Oracle Property
Manager product.

Objective
To increase your knowledge of Oracle
Property Manager in the following areas
 Space
 Lease Management
 Implementation

Agenda
 Overview of functionality
 Space Management (Locations)
 Lease Management
 Main Leases
 Variable Rent
 Payment/Billing Interface
 Implementation
 Lab Exercise
What is Oracle Property Manager
(PN)?
 A component of the Oracle real estate solution
 Provides both the owner and the leaseholder
the ability to
1. define space
2. abstract lease information
3. generate payment or billings based upon lease
information (integration with Oracle AP/AR)
4. provide notification of important lease milestones
 Originally developed as an Oracle ‘in-house’
application
PN Functionality
11.5.7 Family Pack C
•Space Management
•Definition of Locations
•Assigning Space
•Lease Management
•Entering Lease Abstracts
•Amending/Editing Leases
•Milestones
•Payments/Billings
•Index Rent
•Variable Rent
PN Key Processes
1. Define Locations (buildings, land)
2. Assign Space
3. Enter leases
4. Make scheduled lease payments/billings
5. Receive Notifications of key lease dates
6. Space and Lease Management
Reporting

SPACE MANAGEMENT -
LOCATIONS

Locations
 Used to define property that is owned or
leased.
 Can choose level of detail to set up. i.e.
Buildings can be broken down into Floors
and Offices.
 Space measurements are defined at the
office or section level.
 Lease Payments are tied to a location.
 Can be imported from CAD applications.
Locations Diagram
Regions
Office Parks
Property
Building Land
Floor Parcel
Office Section

Define Building(s) Form

Define Floors (Optional)
 Set up Floors as needed.
 Enter Floor Name
 Enter Floor Alias
 Use ‘_’ or ‘-’ as leading character for separation.
 Space Type, Function Type and Standard
Type are all optional fields.

Define Floors Form

Offices
 Lowest level of space definition
 In the retail industry, office can be used for
department. i.e. Men’s Dept, Shoe Dept
 Level at which space measurements are
entered.

Define Offices Form

Import/Export to CAD
 PN has an open interface table that can be
used to import/export locations from a
CAD or CAFM system.

Location Test Question
What is the lowest level you can define in a
building?

SPACE MANAGEMENT -
ASSIGN SPACE

Space Assignments
 Employees can be assigned at the
building, floor or office level.
 Employees can be assigned an area or a
percentage of an area.
 The information is used in the Space
Allocation and Utilization reports.

Assignments Form

LEASE MANAGEMENT -
LEASES

Leases
 In PN, lease entry provides the ability to
capture the vital elements of a physical
lease document.
 Based upon this vital elements, payment
or billing schedules are generated and
users are notified of important lease
actions.

Leases continued
 Lease changes can be made through
lease amendments and edits.
 Lease Amendments are for changes in
lease terms.
 Lease Edits can be used to correct
information.
 An audit record of all changes is kept and
can be viewed in Lease History.
Enter Leases Form

Contacts Tab

Locations Tab

Insurance Tab

Rights Tab

Obligations Tab

Options Tab

Payments Tab

Notes Tab

Finalize the Lease

Milestones
 Provide a means to track important time based
events within a lease.
 Milestones can be set up on
 Details Tab – Lease Commencement and Termination
notifications
 Options Tab – Option notifications such as Renewal,
Purchase, Termination
 Insurance Tab – Insurance Expiration notifications
 Payments Tab – Payment Schedule start and end
dates
 Milestone Templates allow for quicker data entry
Milestone Set Up

Leases Question
Which field determines whether a lease will
be generate a billing vs. payment
schedule?

LEASE MANAGEMENT -
AP INTERFACE FOR LEASE
PAYMENTS

AP Interface Process
1. Finalize the Lease
2. Authorize Payments
3. Export Payments to Payables
4. From AP, Import Invoices into Payables
5. All Invoices which originate in Property
Manager will have an Invoice Number
that begins with ‘PN’

Authorize Payments

Export to Payables

Export to Payables Concurrent
Request

Import into AP

View Invoices in AP

LEASE MANAGEMENT -
VARIABLE RENT

Variable Rent
 Variable Rent is most commonly used in
the retail sector.
 VR ties rent payments to a percentage of
the tenant’s sales.
 A VR agreement is tied to a main lease.
 The VR component of Property Manager
is fairly new. It was only available as of
version 11.5.7 patchset G.
Variable Rent Example
Tenant must pay variable rent of 1% on
sales in excess of $1M and 2% on sales in
excess of $2M for the calendar year
payable 30 days after the end of the year.
Sales for 2002 = $2.1M
VR on $1M to $2M in sales = $10k (1M*.01)
VR on sales over $2M = $1k (100k*01)
VR Payment Due = $11k
Variable Rent Agreement

Variable Rent Dates

Generate Periods

Line Items

Volume History

Breakpoints

Line Items (after calculation)

Deductions
 You can add deduction lines that reduce
the sales basis for the calculation.
 For example, a lease may say that the
sales amount can be calculated by taking
Gross Sales less Returns and Credit Card
Charges.
 In the example the amounts for Returns
and Credit Card Charges would be
entered as Deductions.
Deductions

Constraints
 Limits the rent (ceiling) that can be paid on
a VR agreement.
 For example a lease may state the lessee
must pay 1% of Total Sales not to exceed
$10k. In this case, the constraint would be
entered as $10k.

Constraints

Variable Rent Recalculation

Create VR Terms

Approve VR Terms

Reporting

Standard Reports
 Annual / Monthly Accounting Pro-Forma
 Lease Abstract Summary
 Rent Schedule Summary Report
 Space Assignment Report
 Milestone Analysis Report
 Rxi Reports (configurable)

IMPLEMENTATION

Implementation Considerations
 To what level will we define locations?
 Location naming conventions
 Will we use BOMA definitions to measure
space? (Rentable Area, Usable Area,
Assignable Area)
 Multi-Country and Currencies
 Do we need to capture data for which
Oracle PN does not provide a field?
Implementation Considerations -
Continued
 Do we have locations that are owned,
leased or a combination of both?
 Do we need to import our locations from
CAD or CAFM software or will they be
entered manually?
 Lease numbering and naming conventions
 Do our leases have a variable
component?
Implementation Considerations -
Continued
 Do we want to capture other lease related
payments/billings such as CAM, Insurance
in PN?
 Lease approval process?
 Definition of which milestones will be
required.
 Reporting requirements

Implementation Set Up Steps
 GL: Define Chart of Accounts
 GL: Define Period Types and Accounting
Calendar
 GL: Define and enable applicable
currencies
 GL: Define Set of Books
 SYS: Assign the GL Set of Books Profile
Option to every combination of
responsibility and organization
Implementation Set Up Steps -
Continued
 GL: Define Rate Types and Enter Daily
Rates
 HR: Enter Employees
 AP: Define Suppliers
 AR: Define Customers
 AR: Define Receivable Transaction
Sources

Continued
 AR: Define Receivables Payment Terms
 AR: Define Receivables Transaction Types
 PN: Set Profile Options
 PN: Update Country Information and
Assign flexible address formats
 PN: Define Descriptive Flexfields

Continued
 PN: Define Lookups
 PN: Define Service Providers
 PN: Define Regions and Office Parks
 PN: Define Locations
 PN: Define Milestone Templates
 PN: Define Milestone Sets
You are now ready to begin entering leases!

Implementation Question
Name one of the four other Oracle
applications whose partial setup is
required for Property Manager?

LAB

Abstract
 Bryan is opening a new 6000 sq ft. ski and
snow board shop in Denver CO. The multi
level facility will house retail selling space
as well as rental and storage on the first
floor. The second floor will house sales
and back-office functions.
 Bryan will utilize Oracle Property Manager
to automate his lease payments to the
landlord via Oracle Payables.

Abstract continued
 The lease contains a Variable Rent clause
which that provides for an additional rent
payment due 60 days after the end of the
calendar year on the prior years gross
sales less credit card fees and bad debt
expense. The schedule is as follows…
 1% on sales between $1M and $1.5
 2% on sales over $1.5M

Buildings Setup

Buildings Setup - Features

Buildings Setup - Contacts

Floors Setup

Offices Setup – Main Floor

Offices Setup – Second Floor

Lease Setup

Lease Setup - cont

Lease - Details

Lease - Contacts

Lease - Locations

Lease - Insurance

Lease - Rights

Lease - Obligations

Lease - Options

Lease - Payments

Lease – Payments cont

Lease – Term Details

Lease - Notes

Lease - Status

Lease – Payment Schedule

Request

Report

Edit Lease

Authorize Payment

Payment Status - Approved

View Payment Schedule Details

Payment Export to Payables

Payment Export - Request

Payables Interface Request

Payable Import Report

View Invoice in Payables

View Invoice in Payables - cont

Variable Rent – Create VR
Agreement

VR – Dates Button
(Generate Periods)

VR – Periods Tab

VR - Breakpoints

VR – Volume History

VR - Deductions

VR - Calculate

VR – Review Calculation and
Create Terms

VR – Approve Terms

Questions?

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Essentials of Oracle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle

Copyright © 2002 by Bryan P. Eckle