Essentials of Oracle Property Manager

Essentials of Oracle
Property Manager
OAUG Training
Bryan Eckle
Copyright 2002 by Bryan P. Eckle
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.
2.
3.
4.
define space
abstract lease information
generate payment or billings based upon lease
information (integration with Oracle AP/AR)
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.
2.
3.
4.
5.
6.
Define Locations (buildings, land)

Assign Space
Enter leases
Make scheduled lease payments/billings
Receive Notifications of key lease dates
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. Mens 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.
2.
3.
4.
5.
Finalize the Lease

Authorize Payments
Export Payments to Payables
From AP, Import Invoices into Payables
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 tenants 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

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

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

What is Oracle Property Manager

A component of the Oracle real estate solution

Originally developed as an Oracle in-house

Define Locations (buildings, land)

SPACE MANAGEMENT LOCATIONS

Copyright 2002 by Bryan P. Eckle

to define property that is owned or

Copyright 2002 by Bryan P. Eckle

Define Building(s) Form

Copyright 2002 by Bryan P. Eckle

Define Floors (Optional)

_ or - as leading character for separation.

Function Type and Standard

Copyright 2002 by Bryan P. Eckle

Define Floors Form

Copyright 2002 by Bryan P. Eckle

level of space definition

Copyright 2002 by Bryan P. Eckle

Define Offices Form

Copyright 2002 by Bryan P. Eckle

has an open interface table that can

Copyright 2002 by Bryan P. Eckle

Location Test Question

Copyright 2002 by Bryan P. Eckle

SPACE MANAGEMENT ASSIGN SPACE

Copyright 2002 by Bryan P. Eckle

can be assigned at the

Copyright 2002 by Bryan P. Eckle

Copyright 2002 by Bryan P. Eckle

LEASE MANAGEMENT LEASES

Copyright 2002 by Bryan P. Eckle

PN, lease entry provides the ability to

Copyright 2002 by Bryan P. Eckle

changes can be made through

Enter Leases Form

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

Finalize the Lease

Copyright 2002 by Bryan P. Eckle

a means to track important time based

Tab Lease Commencement and Termination

allow for quicker data entry

Copyright 2002 by Bryan P. Eckle

Copyright 2002 by Bryan P. Eckle

Copyright 2002 by Bryan P. Eckle

LEASE MANAGEMENT AP INTERFACE FOR LEASE

Copyright 2002 by Bryan P. Eckle

Finalize the Lease

Copyright 2002 by Bryan P. Eckle

Copyright 2002 by Bryan P. Eckle

Export to Payables Concurrent

Copyright 2002 by Bryan P. Eckle

Copyright 2002 by Bryan P. Eckle

Copyright 2002 by Bryan P. Eckle