Structuring Leases

This chapter provides an overview of PeopleSoft Real Estate Management structure and discusses how to:

• Define lease abstract sections to print.

• Define amendment types.

• Define lease types.

• Define region codes.

• Define user-defined fields.

• Define transaction routing codes.

• Define operating expense categories.

• Define sales categories.

• Define miscellaneous rent types.

• Define security deposit types.

• Define manual fee types.

• Define economic index values.

• Define clause types.

• Define lease options.

• Define critical date templates.

• Define role types.

• Define lease administration roles.

Understanding PeopleSoft Real Estate Management Structure

Before you can enter or process a lease for billing or payment, you must set up the tables that form the foundation of the PeopleSoft Real Estate Management system.

All tables and setup information specific to PeopleSoft Real Estate Management are discussed in this chapter.

See Defining Financials and Supply Chain Management Common Definitions.

Common Elements Used in This Chapter

Defining Lease Abstract Sections to Print

To define the lease abstract sections to print, use the lease abstract sections component (RE_ABST_SECT).

This section provides an overview of lease abstract sections and discusses how to define the lease abstract sections to print.

Understanding Lease Abstract Sections to Print

PeopleSoft Real Estate Management enables you to use a lease abstract worksheet to assist in quick entry of the terms and conditions of the lease. You can also print the lease abstract when you have completed lease entry to provide you with a summary.

The lease sections on the Lease Abstract page are specific pages from the Maintain Lease pages. You can specify all sections or only the sections that you choose to use.

Page Used to Define Lease Abstract Sections to Print

Defining Lease Abstract Sections to Print

Access the Lease Abstract page (Set Up Financials/Supply Chain, Product Related, Real Estate Management, General Definitions, Lease Abstract).

Print	Select the check box to enable printing of a section. You cannot view or print sections if you do not select the check box.
Lease Section	Displays the sections within a lease that you can view or print on the lease abstract worksheet.
Description	Describes the content to be printed within the lease section.

Defining Amendment Types

To define amendment types, use the Amendment Type and Reasons component (RE_AMND_TYPE).

This section provides an overview of amendment types and discusses how to define amendment types.

Understanding Amendment Types

PeopleSoft Real Estate Management requires that any changes you make to active lease terms and conditions be processed through an amendment. When you create an amendment, the system creates a copy of the current lease details and preserves this as a historical record. The system then creates a new amendment, whereby you can define the changes.

Amendment types work with amendment reasons to provide the lease viewers with a quick explanation as to why an amendment is being made. A parent-child relationship exists between the amendment type and amendment reason. For example, you might have an amendment type of Financial Terms Increase and a reason of Increased Parking Fees. You must define the amendment reasons that are specific to the amendment type to view the amendment reason for that type. Before you can create amendments to a lease, you must define amendment types and amendment reasons.

Note. The amendment type is informational only—no processing occurs.

Page Used to Define Amendment Types

Defining Amendment Types

Access the Amendment Types page (Set Up Financials/Supply Chain, Product Related, Real Estate Management, General Definitions, Amendment Types).

Amendment Type Name

Enter an amendment type name to categorize the amendment activity.

Amendment Reasons

Defining Lease Types

To define lease types, use the Lease Types component (RE_LEASE_TYPE).

This section provides an overview of lease types and discusses how to define lease types.

Understanding Lease Types

Lease types enable you to categorize leases for processing and reporting purposes. You may have many lease types, such as operating leases, warehouse leases, and subleases. You can also use lease types for statistical reporting. You can select a sublease type for a lease and run a report to track all subleases associated with a lease.

When you create a lease type, you associate it with a lease category. The lease category determines the processing of that lease type. For example, if you have a lease type of Reporting, the system recognizes that the lease associated with this lease type is for analytical reporting. No further processing occurs.

Page Used to Define Lease Types

Defining Lease Types

Access the Lease Types page (Set Up Financials/Supply Chain, Product Related, Real Estate Management, General Definitions, Lease Type).

Lease Category

Select the lease category for the lease type. The category determines how to sort or report the various lease types. Values are: Reporting: No processing occurs. Sub Lease: When you create a sublease, you must enter the associated parent lease number. The system validates the Parent Lease field to ensure that a parent lease is associated with the sublease.

Defining Region Codes

To define regions, use the Region Codes component (REGION_CD).

This section provides an overview of region codes.

Understanding Region Codes

Regions can be physical entities or geographical areas. When a region represents a physical entity, the region code has the same characteristics as a business, that is, address and language. In PeopleSoft Real Estate Management, you must associate a region with a lease to enable cost reporting by the various regions with which your organization does business. For example, you may require a report for all leased properties in the Midwest region and in the Northeast region. By assigning a region to your lease, you can capture the data as required.

When creating or updating an existing region, be sure to select the category of Reporting as the default category. After you define the region, you can select the region for your lease and begin capturing the data for your reports.

See Establishing Regions and Region Codes.

Defining User-Defined Fields

To define user-defined fields, use the User Defined Fields components (RE_USER_DEF_FLDS).

This section provides an overview of user-defined fields and discusses how to define user-defined fields.

Understanding User-Defined Fields

Because not all businesses have the same reporting needs, PeopleSoft Real Estate Management enables you to define additional fields (up to 10) to meet your reporting requirements. When you establish a user-defined field, the field is populated on your Clauses page in the PeopleSoft Real Estate Management system, enabling you to enter the information that you want to track.

Note. User-defined fields are used for information or reporting purposes only.

Page Used to Define User-Defined Fields

Defining User-Defined Fields

Access the User Defined Fields page (Set Up Financials/Supply Chain, Product Related, Real Estate Management, General Definitions, User Defined Fields).

Field Name	Identify the label name that should appear on the Clauses page.
Description	Enter the description for your user-defined field. The description defines how the field is used.

Defining Transaction Routing Codes

To define transaction routing codes, use the Transaction Routing Code components (RE_TXN_ROUTE).

This section provides an overview of transaction routing codes and discusses how to define transaction routing codes.

Understanding Transaction Routing Codes

Use transaction routing codes to define the routing of transactions to PeopleSoft Billing, Payables, and General Ledger. The transaction routing codes also provide the default ChartFields and taxation rules to be used by each financial application. You can associate a transaction routing code with one or more transaction types or transaction groups, providing default handling for any transaction item that belongs to a group that does not have an explicit routing code assigned.

Page Used to Define Transaction Routing Codes

Defining Transaction Routing Codes

Access the Transaction Routing Codes page (Set Up Financials/Supply Chain, Product Related, Real Estate Management, Financial Terms, Transaction Routing Codes).

Details

Withholding Code

Note. Set up vendor information accordingly on the Procurement Control - Withholding page for proper withholding defaults.

See Setting Up PeopleSoft Payables Withholding.

Sales & Use Tax Default

See Understanding PeopleSoft-Only Sales and Use Tax Processing.

Defining Operating Expense Categories

To define operating expense categories, use the Operating Expense Categories component (RE_EXP_CLASS).

This section provides an overview of operating expense categories and lists the pages used to define operating expense categories.

Understanding Operating Expense Categories

When landlords lease properties to tenants, terms for recoverable expenses that are incurred on general operations and maintenance of the building are written into the lease. Operating expenses is also commonly referred to as common area maintenance (CAM). You can identify the different recoverable expenses incurred by assigning them to an operating expense category. Operating expense categories enable you to associate a transaction routing code to ensure that financial processing occurs to handle the expense.

Page Used to Define Operating Expense Categories

Defining Sales Categories

To define sales categories, use the Sales Categories component (RE_SALE_CAT).

This section provides an overview of sales categories and lists the pages used to define sales categories.

Understanding Sales Categories

Use sales categories to identify merchandise classifications for percentage rent calculations. Tenants can negotiate a lower monthly base rent in exchange for a percentage of their sales, broken down by categories. For example, a tenant may lease a building for retail sale for a set base rent, selling items such as clothing, shoes, and accessories. These items are set up as sales categories, enabling the tenant to provide the landlord a monthly report of sales by category and amount of sales. The amount or percentage of the sales paid to the landlord is determined during lease negotiations.

After you define the sales categories and percentage sales terms are negotiated, you can enter the percent rent terms specifying the breakpoints for each category. Use breakpoints to determine the percentage or amount to bill. Landlords can calculate or recalculate the billable amount by using the percent rent sales feature.

See Understanding Percent Rent Terms.

Page Used to Define Sales Categories

Defining Miscellaneous Rent Types

To define miscellaneous rent types, use the Miscellaneous Rent Types component (RE_MISC_FEES).

This section provides an overview of miscellaneous rent types and lists the pages used to define miscellaneous rent types.

Understanding Miscellaneous Rent Types

Define miscellaneous rent types for miscellaneous recurring payments, such as monthly parking fees and storage fees on your lease. You can define miscellaneous rent types with a date range, schedule, amount, billing frequency, and any potential escalations.

In addition, to separate a miscellaneous rent type as a distinct bill line on an invoice, you can associate miscellaneous rent types with a transaction routing code that is specifically defined with a unique bill code.

Page Used to Define Miscellaneous Rent Types

Defining Security Deposit Types

To define security deposit types, use the Security Deposit Types component (RE_SECURITIES).

This section provides an overview of security deposit types and discusses how to define security deposit types.

Understanding Security Deposit Types

Using the security deposit type enables the system to track whether the security deposit is a bank guarantee, cash, or prepaid. Security deposit types enable you to track the deposits received and also the interest that is generated by security deposits.

Security deposit types facilitate the processing of security deposits received or paid. By selecting the appropriate category for each security deposit type, the PeopleSoft Real Estate Management system determines how the security deposit is handled. There are three security deposit categories: Charge, Guarantee and Prepaid. You can create and assign a deposit type to categories.

Page Used to Define Security Deposit Types

Defining Security Deposit Types

Access the Security Deposit Types page (Set Up Financials/Supply Chain, Product Related, Lease Administration, Financial Terms, Security Deposit Types).

Defining Manual Fee Types

To define manual fee types, use the Manual Fee Types components (RE_SUNDRY_CHG).

This section provides an overview of manual fee types and lists the pages used to define manual fee types.

Understanding Manual Fee Types

You create manual fee types to classify ad hoc payments for things such as repair of a broken window, rekeying a lock for an office, or items not related to the monthly operating expense fees. When creating manual fee types, you can link these manual fee types to specific transaction routing codes for processing in PeopleSoft Billing or PeopleSoft Payables.

Use manual fee types to create ad hoc payments for transactions that are one-time only payments.

Page Used to Define Manual Fee Types

Defining Economic Index Values

To define economic index values, use the Economic Index Values component (RE_INDEX).

This section provides an overview of economic index values and discusses how to define economic index values.

Understanding Economic Index Values

You set up the economic index values so that the lease rent amounts or miscellaneous fees increase from time to time or from year to year. Some leases are set up so that the rent amounts increase regularly, based on an index such as the Consumer Price Index (CPI), Porters' Wage, or a user-defined index.

Note. You cannot set up the economic index without first setting up the market rate index and market rates. Perform maintenance of the index values based on the frequency defined by your organization.

See Defining Market Rates.

Page Used to Define Economic Index Values

Defining Economic Index Values

Access the Economic Index Values page (Set Up Financials/Supply Chain, Product Related, Real Estate Management, Financial Terms, Economic Index).

View Index Definition

Click to view the Market Rate Index. This page provides the highest level of organization for market rates in the PeopleSoft system. These indices define general categories of market rates, such as exchange rates, interest rates, and commodity exchange rates.

Index Values

Defining Clause Types

To define clause types, use the Clause Types component (RE_CLAUSE_STYPE).

This section provides an overview of clause types and discusses how to define clause types.

Understanding Clause Types

You can capture and classify pertinent lease information, such as right to assign the lease, first right of refusal, parking privileges, number of parking spaces, and so on. Clause types enable you to categorize and store this information in a logical format, which can be shared with other leases. After you establish the parking privileges clause type, you can further define the clause subtype with the corresponding detail of number of parking spaces.

Page Used to Define Clause Types

Defining Clause Types

Access the Clause Types page (Set Up Financials/Supply Chain, Product Related, Real Estate Management, Clauses and Options, Clause Type).

Clause Subtypes

Enter corresponding names and descriptions that further define the clause types. You can add multiple clause subtypes for the clause type.

Defining Real Estate Options

To define a real estate option definition and mail template, use the Option Definition (RE_LEASE_OPTION) and Mail Template (RE_OPTION_MAIL) components.

This section provides an overview of real estate options discusses how to:

• Define real estate options.

• Define real estate option mail templates.

• Copy mail templates.

• Insert mail fields.

• Review real estate option mail samples.

Understanding Real Estate Options

Lease and SAR (site acquisition request) options are used to identify clauses. Real estate options can be the same as a clause with a critical date as a reminder to take action for that option. You can define whether you receive a reminder when an action is required. Options are usually associated with critical dates (dates by which the option is exercised). Lease renewals, terminations, and early terminations are options that may require an action that is defined in the lease.

When you define your real estate options, you can also create a mail template with standard messaging to notify a user when an action is to take place. The mail template enables you to enter your own message, copy from an existing option message, or combine your message with field inserts.

Click the Copy From Option button to select a message from an existing option. For example, you can have multiple termination options; however, the message that you have associated with each option can be the same. Copying from an existing option eliminates data entry redundancy.

Note. Critical dates cause the system to send email notifications to specified users, as well as generate entries in a user's tasklist. However, do not confuse a tasklist with the worklist in PeopleSoft Workflow. Critical dates do not use standard PeopleSoft Workflow. When entries are created in My Tasklist, they are there for informational purposes only. They do not initiate any further downstream processing, nor does any rerouting or validation indicate that specific tasks are completed. Users can choose to mark entries in their tasklists as complete; however, this is for their own information. The system does not use the data in the same way that PeopleSoft Workflow might. Email notifications are generated through the Critical Dates Template - Template Option Details page setup.

See Understanding Critical Date Templates.

Pages Used to Define Lease Options

Defining Lease and SAR Options

Access the Lease Options page (Set Up Financials/Supply Chain, Product Related, Real Estate Management, Options).

Mail Template	Click to access the Lease and SAR Option Mail Template page.
Option Name	Enter the option name that describes the option.

Defining Lease and SAR Option Mail Templates

Access the Lease and SAR Option Mail Template page (click the Mail Template link on the Lease and SAR Options page).

Lease and SAR Option	Click to return to the Lease and SAR Options page.
Mail Template	Enter the mail message that you want to associate with the option. Using the template keeps email formats consistent and also reduces data entry redundancy.
Copy from Option	Click to view a list of predefined values to copy into the mail message. To obtain a list of lease and SAR options template values, enter partial values and click the Search button.
Insert Mail Fields	Click to view a list of predefined values to insert into the mail template.
View Sample	Click to view a sample of the predefined mail message.

Copying Mail Template

Access the Copy Mail Template page (click the Copy from Option button on the Lease and SAR Option Mail Template page).

Option Name (begins with)	Enter a partial name or the name of the option that you want to search for and click the Search button.
Lease Option Name	Displays a list of available lease options to copy into a new message. Select the lease option to insert message text.
View Sample	Click to view the message text associated with that option.

Inserting Mail Fields

Access the Insert Mail Fields page (click the Insert Mail Fields button on the Lease and SAR Option Mail Template page).

Name

Select the name fields to be inserted into the mail template. When you create a lease, you select the lease options to associate with that lease. The fields that you select insert specific field data into the message template. For example, if you select Lease Number as the marker in the message, the lease number from the lease that you associate with the lease option replaces the marker in the message field.

Defining Critical Date Templates

To define lease critical date templates, use the critical date template component (RE_CRDT_TMPLT).

This section provides an overview of critical date templates and discusses how to:

• Define critical date templates.

• Define option notifications.

Understanding Critical Date Templates

A lease may have a variety of events that occur throughout the lease life cycle. Some of these events may require intervention by various interested parties associated with the lease. These events are usually, but not always, associated with an option clause contained in the lease.

You can use lease events to track key milestones (such as security deposits and lease termination), lease options (such as renewals and right of first offer), or other activities (such as lease activation approval). Because each interested party needs to have early warning when these dates become due, the critical date template enables you to set up alerts to remind you to take the appropriate actions.

When you need to be alerted of dates for an event that requires an action or decision, you can do so by associating the critical dates template with that lease. You must define the critical date template and schedule the template to alert you once, on a specific date, or using a timetable. You can also select the lease options and the recipients that are to receive the alerts.

For example, if you want to be notified when a lease is up for renewal before it expires, you can set the critical date notification to notify you six months in advance, again every month for the final three months, once a week in the final month, and then every other day in the last two weeks.

This table describes how to set up the critical dates notification from the example above:

Pages Used to Define Critical Date Templates

Defining Critical Date Templates

Access the Define Critical Date Template page (Set Up Financials/Supply Chain, Product Related, Real Estate Management, Critical Date Templates).

Template Name	Enter the name that best defines this critical date template.
Option Name	Select the option for which you want to define notifications.
Define Notifications	Click to access the Define Option Notifications page.

Defining Option Notifications

Access the Define Option Notifications page (click the Define Notifications button on the Define Critical Date Template page).

Schedule Details

Send initial notification

Recurring

You can send recurring notifications based on the following criteria:

Defining Role Types

To define role types, use the role types component (RE_PARTY_TYPE).

This section provides an overview of role types and discusses how to define role types.

Understanding Role Types

Role types enable you to define the many contacts stored within your PeopleSoft Real Estate Management system. They are also used to identify critical date recipients. You can set up a role as a role type. Role types can be a lease administrator, portfolio manager, landlord, tenant, billing clerk, payables clerk, bank contact, and so on.

After you set up the role type, you associate the role category to determine approval processing. When auto-approval is enabled, roles that are assigned the role type of Internal Administrator and Internal Manager can activate leases. If auto-approval is disabled, only the role that is assigned to the Internal Manager role type can activate leases.

Note. You must define at least one role type for your PeopleSoft Real Estate Management system.

Note. Role types are not used as a security feature in PeopleSoft applications.

Page Used to Define Role Types

Defining Role Types

Access the Role Types page (Set Up Financials/Supply Chain, Product Related, Real Estate Management, User Roles, Role Types).

Defining Lease Administration Roles

To define lease administration roles, use the Lease Administration Roles component (RE_LA_ROLES).

This section provides an overview of lease administration roles and discusses how to define lease administration roles.

Understanding Lease Administration Roles

Lease administration roles enable you to associate individuals in your organization with a particular role type within the PeopleSoft Real Estate Management system. You can associate multiple individuals in your organization with one role type. For example, several individuals may be able to create and maintain a lease. By assigning a role type of Lease Administrator to each of them, each individual can perform the tasks associated with a lease administrator.

Note. You must set up role types before you set up lease administration roles.

Page Used to Define Lease Administration Roles

Defining Lease Administration Roles

Access the Lease Administration Roles page (Set Up Financials/Supply Chain, Product Related, Real Estate Management, Users Roles, Lease Administration Role).

Note. If you inactivate a lease administration role, the user will no longer be able to be added to the Create Lease page. If this user is already added on a lease, it will remain unchanged, but they will not be able to add this user to another lease.