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Oracle Property Manager Implementation Guide
Release 12.1
Part Number E13611-04
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Legacy Data Conversion

This appendix outlines the steps required to convert legacy lease data into the Oracle Property Manager schema.

This appendix covers the following topics:

Overview

A lease abstracted in Oracle Property Manager is intended to accurately reflect the executed lease agreement and any associated ancillary documents. The lease should detail key lease dates, tenancy assignments, rights, restrictions, obligations, options, insurance requirements, and financial obligations.

While converting lease data, consider the following questions:

Conversion Effort

The number of leases you have to convert is a good measure for determining whether you should take a programmatic or manual approach.

It may require an hour or more to manually abstract a lease with amendments. In some cases, you can use the DataLoad script to expedite the lease abstraction process.

Oracle Property Manager does not provide an open interface or import validation programs to support a programmatic conversion of lease data. However, it does provide packages to support record insertion and updates. Consequently, you can develop your own interface tables, loader scripts, and validation procedures. To determine the feasibility of this task, you must balance the effort required against the size of the conversion, the complexity of the lease agreements, and the reusability of the code.

Converting Historical Data

You are likely to face the issue of deciding how much historical data to convert when migrating to a new financial system. Regardless of your historical data conversion policy, Oracle Property Manager presents unique challenges when converting data, which you should consider carefully to achieve the right balance between accurate data and conversion efficiency. For example

Lease rights or options, on the other hand, might not be required for such essential operations. However, you might decide to convert such contractual data and lease events so that Oracle Property Manager presents accurate lease information to the user.

Conversion Sequence

Whichever conversion method you select, it is advisable to group leases belonging to the same operating unit while converting data for leases. In addition, you must convert legacy lease data for each lease in the following sequence:

  1. Load lease details.

  2. Load lease tenancy information.

  3. Load contacts, options, rights, notes, and insurance information.

  4. Load terms.

  5. Load milestone information.

  6. Finalize the lease.

  7. Load amendments.

  8. Approve schedules.

  9. Clean up schedules and items.

  10. Transfer normalized distributions to Oracle General Ledger.

  11. Reconcile the conversion activity.

The following diagram illustrates the sequence of steps you must follow while converting legacy lease data.

the picture is described in the document text

Note: For a list of tables that are affected when you load lease components, see Target Tables.

Load Lease Details

Lease details identify the lease, statuses, key dates, and default information. For more information on Lease Details, see Details Tabbed Region, Oracle Property Manager User Guide.

Fields in the Lease Window and the Details Tabbed Region

You should keep the following points in mind while converting lease details.

See Also

Target Tables

Load Lease Tenancy Information

The tenancy information you supply differs based on the lease class. While some information is common, data elements related to customer and common area maintenance (CAM) are valid only with revenue leases and subleases. For more information on lease tenancy, see Locations Tabbed Region, Oracle Property Manager User Guide.

General Information

You should keep the following points in mind while converting tenancy information for a lease.

Important: If you are converting lease data programmatically, ensure that associated locations and leases belong to the same operating unit.

Fields in the Location Tabbed Region

Keep the following points in mind while converting information for the fields related to tenancy information.

Related Topics

Managing Property, Oracle Property Manager User Guide

Load Lease Contacts

Lease contacts are optional data elements that you can use to associate the lease with entities that provide the services (such as cleaning, maintenance, or security) mentioned on the lease. You must create a contact for the appropriate operating unit before associating it with a lease.

You can enter additional data in descriptive flexfields to capture other unique organizational attributes.

For more information, see Contacts and Contacts Tabbed Region, Oracle Property Manager User Guide.

Load Lease Insurance Details, Rights, Obligations, and Options

This section outlines the information you can provide on the lease for insurance, rights, obligations, and options information.

Insurance Details

You can enter information for multiple insurance policies on the lease. Insurance details are optional data elements. However, if you decide to enter an insurance policy, you must provide the following details:

You should keep the following points in mind while converting insurance information.

You can enter additional data in descriptive flexfields to capture other unique organizational attributes.

For more information, see Insurance Tabbed Region, Oracle Property Manager User Guide.

Lease Rights and Obligations

You can enter multiple rights and obligations on a lease. Both rights and obligations are optional data elements. However, if you mention a right, you must provide the following information:

You must define types in the PN_RIGHTS_TYPE lookup and grant codes in the PN_RIGHT_STATUS_TYPE lookup before entering rights-related information. For more information, see Lookups.

Additionally, you must ensure that rights are sequentially numbered within each lease.

Similarly, if you mention an obligation on a lease, you must provide the following information:

Important: The start and end dates are not validated against either the lease dates or location effective dates. However, the end date must be later than the commencement date.

Additionally, you must ensure that obligations are sequentially numbered within each lease.

You can enter additional data in descriptive flexfields to capture other unique organizational attributes.

For more information on lease-related rights and obligations, see Rights and Obligations Tabbed Region, Oracle Property Manager User Guide.

Lease Options

Lease options list the legal rights of the parties associated with the lease and the timeframe in which they are available. Lease options are optional data elements. However, if you mention an option on a lease, you must provide the following information:

You must define types and statuses in the PN_LEASE_OPTION_TYPE and PN_OPTION_STATUS_TYPE lookups respectively, before entering lease option-related information. For more information, see Lookups.

Additionally, you must ensure that:

You can enter additional data in descriptive flexfields to capture other unique organizational attributes.

For more information on lease-related options, see Options Tabbed Region, Oracle Property Manager User Guide.

Load Lease Notes

Use lease notes to include detailed comments related to the lease. Lease notes are optional data elements. However, if you mention a note on a lease, you must limit the note description to 2000 characters and provide the following information:

You can enter additional data in descriptive flexfields to capture other unique organizational attributes.

For more information on lease notes, see Notes Tabbed Region, Oracle Property Manager User Guide.

Load Lease Terms

Lease terms identify the location, frequency, amount, landlord or tenant, purpose, type, and effective dates of payments or billings related to the lease. They also include information on how Oracle Property Manager should handle invoices and the accounting associated with the term.

For detailed information on payment and billing terms, see Payment and Billing Terms, Oracle Property Manager User Guide, Payments Tabbed Region, Oracle Property Manager User Guide, and Billings Tabbed Region, Oracle Property Manager User Guide.

General Information

You should keep the following points in mind while converting billing or payment term information for a lease.

Converting Prepaid Terms

Oracle Property Manager allows you to prepay an individual item of a billing or payment term. You can prepay a term by creating an additional term with characteristics similar to the parent term. However, the prepayment term has a Purpose Type of Prepayment, a frequency of One Time and the same start and end date.

When you enter a prepayment term, Oracle Property Manager associates a future period (identified by a target date) with the term and creates an offsetting item in the future period. The effect of this offsetting term is to negate the financial consequences of adding the additional term at the start of the lease.

For more information on prepaid terms, see Prepaying Rent Payments or Billings.

Term conversion approach

You have three options while converting terms.

  1. Convert current terms: Load current terms with start dates equal to or greater than the month in which the conversion occurs.

  2. Convert all term history: Load all terms with accurate start and end dates.

  3. Convert only current terms with original start dates: This option allows the greatest flexibility between efficiency and providing the necessary history.

Converting Current Terms Using the Conversion Date

Loading each term with the start date set to the conversion date is the most convenient way of converting lease term data. However, by adopting this approach, you risk having incomplete information for billing and payment item history. Incomplete information might lead to problems while determining base rents for Index Rent and Variable Rent. Normalization may also be affected if any normalized terms do not span the entire or the amended life of the lease.

Converting All Term History

By loading all terms from their start date, you can ensure that you have the most flexible and complete data. However, this method can be complex and arduous.

Converting only Current Terms with Original Start Dates

You can load terms that are required for normalization or base rent calculations with the original start dates, and other terms as of the conversion date.

This approach removes the need for loading all terms. However, it does have some drawbacks, including:

Proration

Proration differences between Oracle Property Manager and your legacy system may lead to discrepancies between items and invoices. If this is a material matter, you should consider loading these partial period items as individual terms.

Converting Prepaid Terms

Oracle Property Manager allows you to prepay an individual item of a billing or payment term. You can prepay a term by creating an additional term with characteristics similar to the parent term. However, the prepayment term has a Purpose Type of Prepayment, a frequency of One Time and the same start and end date.

When you enter a prepayment term, Oracle Property Manager associates a future period (identified by a target date) with the term and creates an offsetting item in the future period. The effect of this offsetting term is to negate the financial consequences of adding the additional term at the start of the lease.

For more information on prepaid terms, see Prepaying Rent Payments or Billings, Oracle Property Manager User Guide.

Fields on the Payment or Billing Tabbed Regions and the Term Details Window

This section outlines the payment and billing terms that are associated with expense and revenue leases respectively.

Note: You cannot combine payment and billing terms on a single lease.

For detailed information on the Term Details window, see Entering Payment and Billing Terms, Oracle Property Manager User Guide, Payment Term Details Window Reference, Oracle Property Manager User Guide, and Billing Term Details Window Reference, Oracle Property Manager User Guide.

Shared Term components

This section outlines some of the important components of both the payment and billing terms. For more details on lease terms, see Managing Leases, Oracle Property Manager User Guide.

Payment Terms

Payment terms are created for expense leases. You should keep the following points in mind while converting payment term information:

Billing Terms

You define billing terms for revenue leases and subleases. You should keep the following points in mind while converting billing term information:

Related Topics

Setting up Default Accounts

Payments and Billing Overview, Oracle Property Manager User Guide

Load Lease Milestones

You can associate lease milestones with lease details, insurance details, lease options, and lease terms. You must commit a lease event or save it to the database before you can link it to a milestone. If you are loading legacy lease data programmatically, you will have to refer each milestone to a legacy lease event.

You can create milestones using milestone templates that you have defined. If you are using a milestone template, you can modify the default information populated in the milestone to reflect any specific requirements.

You can enter additional data in descriptive flexfields to capture other unique organizational attributes.

Related Topics

Milestones, Oracle Property Manager User Guide

Milestone Templates

Finalize Leases

When you finalize a lease, the following processes take place:

  1. Schedules and items are created. Items are created from terms and then aggregated into schedules.

  2. The lease is placed under change control, and all subsequent changes must be made through either amendments or edits.

Therefore, before a lease is finalized, you should ensure that the abstracted or converted information is accurate. You must do this for each lease, so depending on the number of leases, terms, and computing resources, the lease finalization process may take several hours to complete.

If the Schedules and Items concurrent program fails, you can resubmit the program manually with the following parameters:

For more information, see Schedules and Items, Oracle Property Manager User Guide.

Load Amendments and Edits

When you edit or amend a lease, Oracle Property Manager creates a history record highlighting the data elements that you have changed. A lease edit is a correction of existing information while a lease amendment originates when you execute an ancillary document to alter the lease.

You edit a lease when you want to correct data entry errors. You amend a lease when you want to change the termination date of the lease or the lease status, relocate an assigned space, change an option or right, or insert an additional billing or payment term. You can convert legacy data for lease edits by

Converting lease amendments is a more complex task because you must:

  1. Load lease amendments sequentially based on the effective date.

  2. Commit the amendments to the database.

  3. Submit the Schedules and Items concurrent program. See Schedules and Items, Oracle Property Manager User Guide.

You must also ensure that the conversion routine references a previously loaded lease event, when the amendment or edit relates to a change of a record, instead of the insertion of a new record.

The following history tables are updated as part of the conversion of lease edits and amendments:

Editing and Amending Lease Elements

This section outlines the implications of lease edits and amendments on the various lease elements. For a detailed description, see Making Changes and Additions to a Lease, Oracle Property Manager User Guide.

Lease Details

Once you finalize a lease, you cannot edit or amend the following:

You can update the Lease Status while amending leases but not while editing leases. Additionally, you must specify a lease extension end date if you change the Lease Status to Holdover or Month-to-Month.

You must also provide the following information when amending a lease:

Lease Terms

There are certain restrictions on changing the dates on an approved term. For example, you cannot change the Start Date. Also, once schedules and items have been generated, you cannot change a lease term from a normalized to a non-normalized term.

Modifying a Lease with Normalized Terms

When you modify a lease, Oracle Property Manager renormalizes existing normalized terms.

Amending a Lease

When you extend or contract a lease, Oracle Property Manager renormalizes the normalized terms based on the lease termination date. If you contract a lease that has approved schedules for dates after the new termination date, Oracle Property Manager creates an adjustment to reverse the amounts already approved for schedule periods falling after the new termination date.

If you extend a lease with normalized terms, you can select not to renormalize all the existing normalized terms. If you choose not to, you must provide a cutoff date. Oracle Property Manager renormalizes only those terms whose normalization end date is after the cutoff date. For details, see Modifying Leases, Oracle Property Manager User Guide.

Editing a Lease

If you add a new normalized term using Edit, Oracle Property Manager normalizes that term from the original commencement date of the lease.

Note: While editing leases, you cannot extend the duration of the lease or alter the lease status to Holdover or Month-to-Month.

For more information, see Editing or Amending a Normalized Payment or Billing, Oracle Property Manager User Guide.

Approve Schedules

Once you load terms, you must approve the schedules before you can export the information. You can approve schedules using the Approve or Cancel Approval of Schedules concurrent program. For more information, see Approve or Cancel Approval of Schedules, Oracle Property Manager User Guide.

You should approve schedules up to the date of the cutoff from the legacy system to Oracle Property Manager.

Reconcile Lease Information

If you convert all historical terms, you may face reconciliation problems with the Account Receivable or Accounts Payable subledgers. It is likely that the approved term is already reflected in the appropriate subledger. So, exporting terms will result in invoice duplication. Additionally, if terms are normalized, the accrual and relief of the accrual has probably occurred and does not require replication.

If all terms in the legacy system (before the cutoff date) have been transferred to the appropriate subledger, you need not reconcile the receivable and revenue accounts (for a revenue lease or sublease) or the liability and expense accounts (for an expense lease.) This is because the new items transferred after the cutoff date are independent of those previously transferred.

An exception is when billing terms are transferred and the non-normalized terms have revenue rules where

In this case, you may need to create two separate lease terms: one for the period before the cutoff date and one subsequent to the cutoff date.

If normalized terms exist on the lease, you must reconcile the accrued asset or liability with the balance or normalized terms remaining on the lease in Oracle Property Manager. In addition, the reconciliation of the conversion process requires that both schedules and items, and prior normalized terms be cleansed.

Cleanse Schedules and Items

You must designate as exported items that have been exported to a subledger. Items can be marked as exported in two ways. You can

Regardless of the approach, you must ensure that all legacy terms related to the lease have been transferred from the legacy system before the cutoff date. Failure to ensure the transfer of all legacy terms may result in missing invoices.

Transfer Normalized Distributions to the General Ledger

After you cleanse Schedules and Items data, you must perform a similar process for the normalized items that are transferred to the General Ledger.

You can accomplish this through the Transfer Normalized Lines to GL and Create Accounting concurrent programs.

The Transfer Normalized Lines to GL concurrent program transfers normalized lines to Oracle Subledger Accounting. When you submit this request, ensure that the schedule start and end dates cover all schedules up to the cutoff date.

When the Transfer Normalized Lines to GL concurrent program terminates successfully, run the Create Accounting program (provided by Oracle Subledger Accounting) to transfer data to Oracle General Ledger. Depending on how you plan to reconcile the accrued liability or asset accounts, you may choose to either import the journal lines or delete them from the interface table.

Related Topics

Expense and Revenue Recognition Process, Oracle Property Manager User Guide

Transfer Normalized Lines to GL, Oracle Property Manager User Guide

Create Accounting Program, Oracle Subledger Accounting Implementation Guide

Reconcile Term Data with the General Ledger

For normalized terms, two separate events affect the general ledger.

  1. An invoice that allows the billing or payment of an amount to a customer or supplier is generated. The accounting from this event is detailed below:

    Billing Term

    Account Debit Credit
    Receivable Account X  
    Accrued Asset Account   X

    Payment Term

    Account Debit Credit
    Accrued Liability Account X  
    Liability Account   X
  2. The revenue or expense is recognized on a monthly basis. This process is triggered by the Transfer Normalized Terms to GL concurrent program. The accounting from this event is detailed below:

    Billing Term

    Account Debit Credit
    Accrued Asset Account X  
    Revenue Account   X

    Payment Term

    Account Debit Credit
    Expense Account X  
    Accrued Liability Account   X

After you determine the variance between the outstanding normalized terms and the general ledger balance, you must adjust the general ledger balance by a general journal entry to the accrual account and either the revenue or expense account, or a provision account. If the variance is of a material amount, you should investigate the variance.

Technical Considerations

This section outlines the technical considerations related to converting legacy lease data.

Prerequisite Setup Steps in Other Products

Before converting legacy lease data, you should complete the setup steps listed below.

For more information on common application setup steps and setup steps in other Oracle products, see Prerequisites and Optional Integration.

Prerequisite Setup Steps in Oracle Property Manager

The following is a list of setup steps that you must complete in Oracle Property Manager before you can convert lease information

Target Tables

Oracle Property Manager uses the following tables while loading lease components.