Copyright © 2002 by Bryan P. Eckle 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 Over 6 years of experience working with Oracle Financial Apps Currently Implementing Property Manager Currently Implementing Property Manager

Copyright © 2002 by Bryan P. Eckle Introduction David Roberts FullNorth Technology Group Business Development for Oracle Applications for Retail and Energy industries Business Development for Oracle Applications for Retail and Energy industries Over 6 years of experience working with Oracle Financial Applications Over 6 years of experience working with Oracle Financial Applications

Copyright © 2002 by Bryan P. Eckle Introduction Why? There is a gap in the documentation and training available for the Oracle Property Manager product. There is a gap in the documentation and training available for the Oracle Property Manager product.

Copyright © 2002 by Bryan P. Eckle Objective To increase your knowledge of Oracle Property Manager in the following areas To increase your knowledge of Oracle Property Manager in the following areas Space Space Lease Management Lease Management Implementation Implementation

Copyright © 2002 by Bryan P. Eckle Agenda Overview of functionality Overview of functionality Space Management (Locations) Space Management (Locations) Lease Management Lease Management Main Leases Main Leases Variable Rent Variable Rent Payment/Billing Interface Payment/Billing Interface Implementation Implementation Lab Exercise Lab Exercise

Copyright © 2002 by Bryan P. Eckle What is Oracle Property Manager (PN)? A component of the Oracle real estate solution A component of the Oracle real estate solution Provides both the owner and the leaseholder the ability to 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 Originally developed as an Oracle ‘in-house’ application

Copyright © 2002 by Bryan P. Eckle 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

Copyright © 2002 by Bryan P. Eckle 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

Copyright © 2002 by Bryan P. Eckle Locations Used to define property that is owned or leased. 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. 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. Space measurements are defined at the office or section level. Lease Payments are tied to a location. Lease Payments are tied to a location. Can be imported from CAD applications. Can be imported from CAD applications.

Copyright © 2002 by Bryan P. Eckle Define Floors (Optional) Set up Floors as needed. Set up Floors as needed. Enter Floor Name Enter Floor Name Enter Floor Alias Enter Floor Alias Use ‘_’ or ‘-’ as leading character for separation. Use ‘_’ or ‘-’ as leading character for separation. Space Type, Function Type and Standard Type are all optional fields. Space Type, Function Type and Standard Type are all optional fields.

Copyright © 2002 by Bryan P. Eckle Offices Lowest level of space definition Lowest level of space definition In the retail industry, office can be used for department. i.e. Men’s Dept, Shoe Dept In the retail industry, office can be used for department. i.e. Men’s Dept, Shoe Dept Level at which space measurements are entered. Level at which space measurements are entered.

Copyright © 2002 by Bryan P. Eckle Import/Export to CAD PN has an open interface table that can be used to import/export locations from a CAD or CAFM system. PN has an open interface table that can be used to import/export locations from a CAD or CAFM system.

Copyright © 2002 by Bryan P. Eckle Space Assignments Employees can be assigned at the building, floor or office level. Employees can be assigned at the building, floor or office level. Employees can be assigned an area or a percentage of an area. Employees can be assigned an area or a percentage of an area. The information is used in the Space Allocation and Utilization reports. The information is used in the Space Allocation and Utilization reports.

Copyright © 2002 by Bryan P. Eckle Leases In PN, lease entry provides the ability to capture the vital elements of a physical lease document. 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. Based upon this vital elements, payment or billing schedules are generated and users are notified of important lease actions.

Copyright © 2002 by Bryan P. Eckle Leases continued Lease changes can be made through lease amendments and edits. Lease changes can be made through lease amendments and edits. Lease Amendments are for changes in lease terms. Lease Amendments are for changes in lease terms. Lease Edits can be used to correct information. Lease Edits can be used to correct information. An audit record of all changes is kept and can be viewed in Lease History. An audit record of all changes is kept and can be viewed in Lease History.

Copyright © 2002 by Bryan P. Eckle Milestones Provide a means to track important time based events within a lease. Provide a means to track important time based events within a lease. Milestones can be set up on Milestones can be set up on Details Tab – Lease Commencement and Termination notifications Details Tab – Lease Commencement and Termination notifications Options Tab – Option notifications such as Renewal, Purchase, Termination Options Tab – Option notifications such as Renewal, Purchase, Termination Insurance Tab – Insurance Expiration notifications Insurance Tab – Insurance Expiration notifications Payments Tab – Payment Schedule start and end dates Payments Tab – Payment Schedule start and end dates Milestone Templates allow for quicker data entry Milestone Templates allow for quicker data entry

Copyright © 2002 by Bryan P. Eckle 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’

Copyright © 2002 by Bryan P. Eckle Variable Rent Variable Rent is most commonly used in the retail sector. Variable Rent is most commonly used in the retail sector. VR ties rent payments to a percentage of the tenant’s sales. VR ties rent payments to a percentage of the tenant’s sales. A VR agreement is tied to a main lease. 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. The VR component of Property Manager is fairly new. It was only available as of version 11.5.7 patchset G.

Copyright © 2002 by Bryan P. Eckle 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

Line Items (after calculation)

Copyright © 2002 by Bryan P. Eckle Deductions You can add deduction lines that reduce the sales basis for the calculation. 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. 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. In the example the amounts for Returns and Credit Card Charges would be entered as Deductions.

Constraints Limits the rent (ceiling) that can be paid on a VR agreement. 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. 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.

Variable Rent Recalculation

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

Implementation Considerations To what level will we define locations? To what level will we define locations? Location naming conventions Location naming conventions Will we use BOMA definitions to measure space? (Rentable Area, Usable Area, Assignable Area) Will we use BOMA definitions to measure space? (Rentable Area, Usable Area, Assignable Area) Multi-Country and Currencies Multi-Country and Currencies Do we need to capture data for which Oracle PN does not provide a field? Do we need to capture data for which Oracle PN does not provide a field?

Copyright © 2002 by Bryan P. Eckle Implementation Considerations - Continued Do we have locations that are owned, leased or a combination of both? 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? Do we need to import our locations from CAD or CAFM software or will they be entered manually? Lease numbering and naming conventions Lease numbering and naming conventions Do our leases have a variable component? Do our leases have a variable component?

Copyright © 2002 by Bryan P. Eckle Implementation Considerations - Continued Do we want to capture other lease related payments/billings such as CAM, Insurance in PN? Do we want to capture other lease related payments/billings such as CAM, Insurance in PN? Lease approval process? Lease approval process? Definition of which milestones will be required. Definition of which milestones will be required. Reporting requirements Reporting requirements

Copyright © 2002 by Bryan P. Eckle Implementation Set Up Steps GL: Define Chart of Accounts GL: Define Chart of Accounts GL: Define Period Types and Accounting Calendar GL: Define Period Types and Accounting Calendar GL: Define and enable applicable currencies GL: Define and enable applicable currencies GL: Define Set of Books GL: Define Set of Books SYS: Assign the GL Set of Books Profile Option to every combination of responsibility and organization SYS: Assign the GL Set of Books Profile Option to every combination of responsibility and organization

Copyright © 2002 by Bryan P. Eckle Implementation Set Up Steps - Continued GL: Define Rate Types and Enter Daily Rates GL: Define Rate Types and Enter Daily Rates HR: Enter Employees HR: Enter Employees AP: Define Suppliers AP: Define Suppliers AR: Define Customers AR: Define Customers AR: Define Receivable Transaction Sources AR: Define Receivable Transaction Sources

Copyright © 2002 by Bryan P. Eckle Implementation Set Up Steps - Continued AR: Define Receivables Payment Terms AR: Define Receivables Payment Terms AR: Define Receivables Transaction Types AR: Define Receivables Transaction Types PN: Set Profile Options PN: Set Profile Options PN: Update Country Information and Assign flexible address formats PN: Update Country Information and Assign flexible address formats PN: Define Descriptive Flexfields PN: Define Descriptive Flexfields

Copyright © 2002 by Bryan P. Eckle Implementation Set Up Steps - Continued PN: Define Lookups PN: Define Lookups PN: Define Service Providers PN: Define Service Providers PN: Define Regions and Office Parks PN: Define Regions and Office Parks PN: Define Locations PN: Define Locations PN: Define Milestone Templates PN: Define Milestone Templates PN: Define Milestone Sets PN: Define Milestone Sets You are now ready to begin entering leases!

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 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. Bryan will utilize Oracle Property Manager to automate his lease payments to the landlord via Oracle Payables.

Copyright © 2002 by Bryan P. Eckle 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… 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 1% on sales between $1M and $1.5 2% on sales over $1.5M 2% on sales over $1.5M

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

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