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
• Conversion Sequence
• Technical Considerations

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:

• Should you convert leases programmatically or enter them manually?

• How much history should you convert?

• How should you treat historical records?

• In what sequence should you convert data?

• What prerequisite steps must you complete before converting data?

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 billing or payment information or location information is essential for operations such as calculating billing or payment amounts or tracking customer space assignments.

• The changes you make to the effective dates and physical attributes of locations affect related leases. For instance, as a landlord, you may change or improve the location mentioned on a lease, but retain the same location name. If you change the area of a location, the calculated annual amount and area value will be affected. Therefore, it is important to match the correct location code with each term to ensure accurate calculation.

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.

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.

• Lease Number: Depending on how you have set up system options for the operating unit, the lease number may be generated automatically. For more information, see Defining Oracle Property Manager System Options.

  Important: Lease numbers must be unique.

• Lease Class: Load leases according to their class. Because subleases require a master lease, you should load leases in the following order:

  • Expense leases

  • Revenue leases

  • Subleases

• Lease Status: Always assign an Approval Status of Draft while loading leases. In so doing, you will be able to review converted data and make any required corrections before placing the lease under change control.

• Primary Location: If you supply a default primary location, the information is displayed in the Locations (Lease Tenancy) tab by default.

• Key Lease Dates: You must keep the following points in mind while entering the key lease dates:

  • The lease termination date must be later than the commencement date.

  • The execution date is not constrained.

  • The Lease term is calculated from the commencement and termination dates. When you modify the term of the lease, the termination date will change automatically.

• Account Defaults: Account defaults are dynamic depending on the lease class. The accounting distribution information you mention here is used in the billing or payment terms if you do not provide account distribution information in the lease term or term template. For more information, see Setting Up Default Accounts.

• User Responsible: The user responsible for maintaining the abstracted lease. This individual must be defined as a user within the Oracle E-Business Suite.

• Functional Currency: The functional currency you have selected for your ledger. It cannot be updated. If terms are stated in a currency other than the functional currency, the currency code must be defined in the billing and payment information.

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

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.

• Each lease must refer to at least one location. This location must be continuously active during the lease term (between the commencement and termination dates of the lease). You must create properties and locations before creating tenancy information.

• Whether or not you can assign a location to multiple leases depends on how you have set up the Allow Multiple Tenancy system option.

  • If you set the Allow Multiple Tenancy system option to No, you can assign a location to only one lease at a time. That is, a location cannot have overlapping effective dates on multiple leases.

  • If you set the system option Multiple Tenancy Lease to Yes, you can use the same location on multiple leases. This option is useful in cases where a common location, such as a storage room, is assigned to multiple tenants. For more information, see System Options in Oracle Property Manager.

• You can assign the same location to a main lease and its related sub lease. However, the effective dates in the sub lease must lie within the effective dates of the master lease. In addition, the location must either be the same location or a child location.

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.

• Type

  • You cannot assign property, office parks, or suites to a lease.

  • If you have assigned a location such as a building or a floor to a tenant, you cannot assign sub-locations such as offices to another tenant.

• Location Code

  • Location codes are a unique concatenation of the aliases for each level of the property hierarchy.

  • Oracle Property Manager generates a set of permitted location codes when you define a property and its locations. You cannot create location codes dynamically through lease entry or conversion. For more information, see Defining Properties, Oracle Property Manager User Guide.

• Primary

  • A lease can have one primary location only for a given period.

• Usage

  • Usage refers to the planned or stated use of the location (by the tenant) and is a mandatory field. Usage types must be predefined as values for the PN_TENANCY_USAGE_TYPE lookup. For more information, see Lookups.

• Assigned Percent Area

  • Assigned Percent Area is a required field that refers to the percentage of the location covered. How you define the Multiple Tenancy Lease system option affects how you specify assigned percent area.

    • If you set the Multiple Tenancy Lease system option to No and the Assigned Percent Area of a location to less than 100 percent, you cannot assign the remainder of the location area to another lease.

    • If you set the system option to Yes, the sum of the assigned percent area each tenant occupies cannot exceed 100 percent, though loads of greater than 100 percent are allowed.

• Occupancy and Expiration Dates

  • Occupancy (Estimated and Actual) and Expiration Dates provide a timeframe for the tenancy. The following attributes apply to these dates:

    • All dates must lie within the active dates for the location. If a lease refers to a location that has been altered but retains the same location code, the tenancy records must reflect multiple records detailing the effective dates for each occupancy.

    • Estimated Occupancy Date and Expiration Date are mandatory fields. The estimated occupancy date may be before the commencement date of the lease and the expiration date may be after the lease termination date.

    • The actual occupancy date may be before the estimated occupancy date.

• Customer-related fields

  • If you are converting a revenue lease or a sublease, you must provide tenant recovery information for the primary location. You can also provide tenant recovery information for additional locations. The information required for tenant recoveries includes:

    • Customer Name and Bill to Site location

    • Financial Obligation End Date

    • Recovery Type

    • Recovery Space Standard

• Area-related fields

  • Use area measurement attributes to measure cost-per-area in lease terms and allow comparison between areas as measured and as stated in the lease document. Area measurement attributes include:

    • Lease Assignable Area

    • Lease Load Factor

    • Lease Rentable Area

    • Lease Usable Area

    You must provide numeric values for these attributes in order to allow Oracle Property Manager to calculate variances between the dimensions of the location and the assertions in the lease.

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

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:

• Type

• Policy Number

• Start Date

• Expiration Date

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

• You must define the policy types in the PN_INSURANCE_TYPE lookup before entering insurance information. For more information, see Lookups.

• Oracle Property Manager does not validate the insurer’s name against contacts, customers, or suppliers.

• The policy number need not be unique.

• The expiration date of the policy must be later than the start date.

• There are no restrictions on required coverage and purchased coverage.

• Amounts are based on the functional currency.

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:

• Type

• Grant Code

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:

• Type: You must define types in the PN_OBLIGATION_RESP_TYPE lookup before entering obligation-related information. For more information, see Lookups.

• Start Date

• End Date

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:

• Type

• Status

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:

• Options are sequentially numbered within each lease

• The PN_UNITS_OF_MEASURE lookup has been defined and has the following values: square feet (SFT), square yards (SYD), and square meters (SMT). These are the only values you can select with lease options. For more information, see Lookups.

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:

• Type: You must create types in the PN_NOTE_TYPE lookup before you can attach notes to leases. For more information, see Lookups.

• Date

• User: The user mentioned here is the user who has abstracted, edited, or amended the lease.

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:

• Lease data history is inconsistent. Oracle Property Manager contains some lease term history, but users might need to refer to the legacy system for other information.

• Missing history may make retroactive adjustments difficult.

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.

• Natural Breakpoint Basis

  Check box denoting whether or not the main lease term forms part of the natural breakpoint basis that Oracle Property Manager uses to calculate the natural breakpoints for variable rent.

• Term Templates

  You can simplify the process of creating lease terms by using term templates. Information from the term template is populated in the term by default. So, you must create term templates before using them in the lease conversion process.

  For more information on creating and using billing and payment term templates, see Term Templates.

• Location

  Optionally, supply a location to associate a lease term with a particular space.

• Purpose and Type Codes

  Purpose and type codes are required information. Purpose indicates what a term is for, and Type indicates where it originates.

  You can define purpose codes to indicate the nature of the payment through the PN_PAYMENT_PURPOSE_TYPE lookup. For more information, see Lookups.

  You can use Type to assign a function to a term. You must classify the term type correctly because it determines the functionality and behavior of the term. For example, type is used, in combination with other information while

  • Assigning default term templates when users have not associated a term template with a term.

  • Creating grouping rules.

  • Grouping recovery term detail lines (when the Consolidated Recovery Terms system option is set to No.)

  There is no restriction on the combination of purpose and type codes, though there are logical combinations.

• Start and End Dates

  You must define start and end dates for each term. A term cannot have an open-ended (or null) end date. The start and end dates of non-normalized terms may lie outside the boundaries of the lease commencement and termination dates.

  Note: If you are entering lease terms manually through the Term Details window, a warning message will appear if the start or end date is outside the boundaries of the key lease date.

  Terms may exist outside of the key lease dates for several reasons, including:

  • Deposits required prior to occupancy

  • Prepayments

  • Percentage rent payments after expiration of the lease

• Frequency

  Frequency controls the interval at which invoices are generated. Set the term frequency to one of the following:

  • One-Time

  • Monthly

  • Quarterly

  • Semi-Annual

  • Annual

  When you select One Time, the start and end dates must be the same.

• Schedule Day and Schedule Date

  Specify a Schedule Day to determine the day of the month on which schedules are created. This day is called the Schedule Date.

  Note: You must select a Schedule Day between 1 and 28 because these days are available in all months.

  By default, Oracle Receivables uses the schedule date to set the transaction date and Oracle Payables uses it to set the invoice date. The transaction payment term and invoice date determine the aging dates of the transaction.

  Once you finalize a lease, Oracle Property Manager runs the Schedules and Items concurrent program to create an item for each frequency interval for each term. For more information on the Schedules and Items concurrent program, see Schedules and Items, Oracle Property Manager User Guide.

  For example, a term that is effective for one year and has a monthly frequency will produce twelve items. You can group items for approval based on their schedule date. Multiple terms can share the same schedule day and hence the same schedule date.

  Consider the following example:

  • You execute a lease on November 1, 2003 with a commencement date of March 1, 2004 and a termination date of February 28, 2005.

  • A term of $4,000 per month for rent begins on March 1, 2004 and ends on February 28, 2005. The Schedule Day is 1.

  • A term of $300 per month for common area maintenance (CAM) starts on March 1, 2004 and ends on February 28, 2005. The Schedule Day is 1.

  • A semi-annual term of $500 for taxes begins on August 1, 2004 and ends on February 28, 2005. The Schedule Day is 1.

  The following table illustrates the schedules and items created.

  Schedule Day	Schedule Date	Rent	CAM	Taxes	Schedule Amount
  1	1-Mar-04	4,000.00	300	0	4,300.00
  1	1-Apr-04	4,000.00	300	0	4,300.00
  1	1-May-04	4,000.00	300	0	4,300.00
  1	1-Jun-04	4,000.00	300	0	4,300.00
  1	1-Jul-04	4,000.00	300	0	4,300.00
  1	1-Aug-04	4,000.00	300	500	4,800.00
  1	1-Sep-04	4,000.00	300	0	4,300.00
  1	1-Oct-04	4,000.00	300	0	4,300.00
  1	1-Nov-04	4,000.00	300	0	4,300.00
  1	1-Dec-04	4,000.00	300	0	4,300.00
  1	1-Jan-05	4,000.00	300	0	4,300.00
  1	1-Feb-05	4,000.00	300	500	4,800.00
  		48,000.00	3,600.00	1,000.00	52,600.00

  Once you approve a schedule date, you cannot add additional terms to that date. To add a term retroactively, you must supply a different schedule day.

  For example, you may have approved a schedule for May 1, 2005 and want to add a new term to the lease. If you want to schedule this term on Day 1, the earliest start date is June 1, 2005. To make the payment for May, add a one-time payment term for May with a schedule day of 2. Oracle Property Manager will now set the schedule date to May 2, 2005.

• Normalization

  You must normalize or straight line lease terms to comply with the requirements of Statement of Financial Accounting Standards No. 13, “Accounting for Leases.” Besides the United States, international professional accounting bodies such as the International Accounting Standards Committee and the Institute of Chartered Accountants of Australia, have similar provisions for normalization within their standards.

  Oracle Property Manager normalizes terms that

  • Are marked for normalization

  • Have actual amounts, and not estimates

  • Are within the lease commencement and termination dates

  Oracle Property Manager does not normalize terms for leases with a lease status of Holdover or Month-to-Month during the holdover or carrying period.

  For more information on normalization, see Normalizing Payments or Billings, Oracle Property Manager User Guide.

• Amounts

  You must specify an amount for the frequency interval you have defined. That is, if the lease specifies an annual payment of $48,000 and the frequency is Monthly, the amount is $4,000 ($48,000/12).

  If the payment term contains a period that is less than a full interval, the amount is prorated based on the proration rule defined on the lease. The Schedule and Items concurrent program handles proration. You need not intervene in the proration process. For more information, see Schedules and Items Concurrent Program, Oracle Property Manager User Guide.

  You can enter an actual amount, estimated amount, or both. When you specify an actual amount, Oracle Property Manager

  • Calculates an annual amount based on the actual amount and the frequency. Oracle Property Manager extrapolates an annual amount even when the lease duration is less than a year.

  • Calculates an Annual/Area rate derived from the annual amount divided by the location area. The area used in this calculation depends upon the value in the Area Type field. Oracle Property Manager sets the value of Area Type based on how you have set the Default Location Area for Leases system option. For more information on the Default Location Area for Leases system option, see System Options in Oracle Property Manager.

• Currency and Exchange Rates

  You can specify a term amount in a currency other than the functional currency. In order to use another currency, you must enable it and define a conversion rate type in the Currency Conversion Type system option. For information on the Currency Conversion Type system option, see System Options in Oracle Property Manager.

  When you approve a term, Oracle Property Manager calculates the accounted amount based on the conversion rate and the conversion date. For more information, see Currencies and Currency Conversion for Billing and Payment Amounts, 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:

• Agreement Name: Name of the operating expense agreement. When users create estimated payment terms in the lease, they can associate an operating expense agreement with the payment term using this field.

• Supplier: Supplier (landlord) name and site are required information. So, you must define suppliers before converting payment term information. For more information on setting up suppliers, see Suppliers.

• Tax-related fields: Provide a tax input classification if you want the appropriate tax amount on the invoice. Before specifying a tax input classification for a term, you should have specified them in Oracle E-Business Tax. For more information, see Tax Codes and Rates.

  Tax is calculated based on whether it is included in, or added to the term amount. For more information, see Pay Tabbed Region, Oracle Property Manager User Guide.

• Distribution Set and project-related fields: For non-normalized terms, you can optionally specify either a distribution set or project-related information. When you supply project-related information, you do not need to provide account distribution information because project rules determine the accounting distributions. For more information on account defaulting, see Setting Up Account Defaults.

  If you want to specify a distribution set, you should first create it in Oracle Payables. For more information, see Distribution Sets.

• Accounts Distribution: Optionally provide accounting distribution information for the Accounts Payable Liability, Rent Expense, and Liability Accrual (required if the term is normalized.) If you do not provide accounting information on the term or the term template, Oracle Property Manager uses the accounting information defined for the Supplier Site.

Billing Terms

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

• Customer: Customer (tenant) name and site are required information. Therefore, you must define customers before converting billing term information. For more information on setting up customers, see Customers.

• Transaction Type: You must define a transaction type in Oracle Receivables before you can assign it to a billing term. For more information, see Transaction Types.

  Important: Oracle Property Manager only supports transaction types with a creation sign of Any to allow the creation of positive and negative transactions. If the Accounting Option system option is set to None or Normalized and the term is not normalized, AutoAccounting can determine accounting distribution information during the AutoInvoice process.

  For more information on the Accounting Information system option, see System Options in Oracle Property Manager.

• Purchase Order: Optionally, enter a Purchase Order (PO) Number to associate a billing term with a Purchase Order. PO Number is a reference field with no validation.

• Accounting and Invoice Rules: You can provide Accounting and Invoice Rules for non-normalized terms only.

  Important: The Oracle Receivables Revenue Recognition program is not a substitute for the normalization requirements of FASB13.

• Salesperson: Optionally, enter a salesperson. AutoInvoice uses salesperson information to access default accounting segments depending on the setting of the Accounting Option system option. Note that this field is required if the Require Salesperson check box is selected on the System Options window in Oracle Receivables.

• Payment Term and Method: Optionally, provide a Payment Term and Payment Method. If this information is not provided on the term, Oracle Property Manager accesses this information from the Customer Bill-to Site by default.

• Tax Output Classification: Where required, provide a tax output classification to indicate whether the term includes a tax amount in the total amount using the Tax Inclusive check box. AutoInvoice calculates the tax amount and creates a tax line on the invoice based on the information you provide.

• Accounts Distribution: Provide accounting distribution information for the following accounts:

  • Accounts Receivable

  • Revenue

  • Accrued Asset (required if the term is normalized)

  You can load multiple revenue and asset accrual lines. However, the AutoInvoice concurrent program and process allows only one receivable account per invoice.

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:

• Lease Number

• Context: ABS - Abstract

• Called From: Main

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

• Including the changes as part of the original conversion. This may be the simplest and most effective approach, because Oracle Property Manager may not identify changes in the legacy system not recorded as amendments.

• Loading the changes after the finalization of the lease to record the original abstraction, and then any changes to the lease.

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:

• PN_LEASE_CHANGES_ALL

• PN_LEASE_DETAILS_HISTORY

• PN_CONTACT_ASSIGN_HISTORY

• PN_TENANCIES_HISTORY

• PN_INSURE_REQUIRE_HISTORY

• PN_LANDLORD_SERVICE_HISTORY

• PN_OPTIONS_HISTORY

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:

• Class

• Proration Rule

• Commencement Date

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:

• Execution Date: The date when that the lease amendment was agreed upon and signed by both parties to the lease

• Commencement Date: The date from which the lease amendment changes take effect

• Termination Date: The termination date of the amendment, usually the same as the lease termination date

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

• The initial revenue period is before the cutoff date.

• Revenue recognition is on going.

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

• Use a SQL*Plus script to update the PN_PAYMENT_ITEMS_ALL table

• Transfer terms to the appropriate subledger and then delete the invoices in the interface.

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.

• Oracle Financials: Ensure that you have completed the general Oracle Financials-related setup steps such as setting up taxes, calendars, currencies, and ledgers.

• Oracle Receivables: If you are converting data for revenue and subleases, make sure that you completed the appropriate setup steps, including creating customers, payment terms, and invoice grouping rules.

• Oracle Payables: If you are converting data for expense leases, ensure that you have completed the appropriate setup steps, including creating payment terms, suppliers, and distribution sets.

• Oracle Projects: If you wish to link project information to expense leases, ensure that you have set up the appropriate project organizations, expenditure types, projects, and tasks.

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

• Descriptive flexfields and value sets: See Descriptive Flexfieds and Value Sets.

• Contacts: See Contacts.

• Grouping rules: See Invoice Grouping Rules.

• Term templates: See Payment and Billing Term Templates.

• Milestone templates: For more information, see Milestone Templates.

• Locations: See Setting Up Property, Oracle Property Manager User Guide.

• Oracle Property Manager System Options: The following system options have an impact on how you convert lease data.

  • Accounting Option

  • Allow Tenancy Overlap Within Lease

  • Currency Conversion Type

  • Automatic Space Distribution

  • Automatic Lease Number

  • Multiple Tenancy Lease

  • Location Code Separator

  • Default Location Area for Leases

  • Invoice Grouping Name

  • Legacy Cutoff Date

  For more information, see System Options in Oracle Property Manager.

• Oracle Property Manager Lookups: You must define the following lease-related lookups before converting lease data.

  • Lease Type (PN_LEASE_TYPE)

  • Lease Status (PN_LEASESTATUS_TYPE)

  • Payment Purpose Type (PN_PAYMENT_PURPOSE_TYPE)

  • Payment Term Type (PN_PAYMENT_TERM_TYPE)

  • Role (PN_LEASE_ROLE_TYPE)

  • Job Title (PN_JOB_TITLE)

  • Landlord Services (PN_LANDLORD_SERVICE_TYPE)·

  • Insurance Type (PN_INSURANCE_TYPE)

  • Lease Option Types (PN_LEASE_OPTION_TYPE)

  • Lease Option Status (PN_OPTION_STATUS_TYPE)

  • Milestone Sets (PN_MILESTONES_SET)

  • Milestone Type (PN_MILESTONES_TYPE)

  • Note Type (PN_NOTE_TYPE)

  • Financial Responsible Party (PN_OBLIGATION_FIN_RESP_PARTY)

  • Obligation Responsibility (PN_OBLIGATION_RESP_TYPE)

  • Recovery Space Standard Type (PN_RECOVERY_SPACE_STD_TYPE)

  • Recovery Type (PN_RECOVERY_TYPE)

  • Rights Type (PN_RIGHTS_TYPE)

  • Rights Status (PN_RIGHT_STATUS_TYPE)

  • Tenancy Usage Type (PN_TENANCY_USAGE_TYPE)

  For more information, see Lookups.

Target Tables

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

• Leases and Lease Details: Oracle Property Manager inserts records into the following tables when you abstract or amend a lease:

  • PN_LEASES_ALL

  • PN_LEASE_DETAILS_ALL

  • PN_LEASE_TRANSACTIONS_ALL

  • PN_LEASE_CHANGES_ALL

  • PN_LEASE_DETAILS_HISTORY

• Contacts: Oracle Property Manager inserts records into the following tables when you abstract or amend a lease:

  • PN_CONTACT_ASSIGNMENTS_ALL

  • PN_CONTACT_ASSIGN_HISTORY

• Tenancies (Locations): Oracle Property Manager inserts records into the following tables when you abstract or amend a lease.

  • PN_LEASE_TENANCIES_ALL

  • PN_LEASE_TENANCIES_HISTORY

• Insurance Details: Oracle Property Manager inserts records into the following tables when you abstract or amend a lease.

  • PN_INSURANCE_REQUIREMENTS_ALL

  • PN_INSURE_REQURE_HISTORY

• Lease Obligations: Oracle Property Manager inserts rows into the following tables when you abstract or amend a lease:

  • PN_LANDLORD_SERVICES_ALL

  • PN_LANDLORD_SERVICE_HISTORY

• Lease Rights: Oracle Property Manager inserts records into the following tables when you abstract or amend a lease:

  • PN_RIGHTS_ALL

  • PN_RIGHTS_HISTORY

• Lease Options: Oracle Property Manager inserts records into the following tables when you abstract or amend a lease:

  • PN_OPTIONS_ALL

  • PN_OPTIONS_HISTORY

• Terms (Payments and Billings): Oracle Property Manager inserts records into the following tables when you abstract or amend a lease:

  • PN_PAYMENT_TERMS_ALL

  • PN_DISTRIBUTIONS_ALL

  Oracle Property Manager inserts records into the following tables when you run the Schedules and Items concurrent program:

  • PN_PAYMENT_ITEMS_ALL

  • PN_ PAYMENT_SCHEDULES_ALL

• Notes: Oracle Property Manager inserts records into the following tables when you abstract or amend a lease:

  • PN_NOTE_HEADERS

  • PN_ NOTE_DETAILS

• Milestones: Oracle Property Manager inserts records into the following table when you abstract or amend a lease:

  • PN_LEASE_MILESTONES_ALL