CS324 Umoja Lease Administration Process. Umoja Lease Administration Process Version 20 1

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1 CS324 Umoja Lease Administration Process Umoja Lease Administration Process Version 20 Copyright Last Modified: United 22-Sep-14 Nations 1

2 Agenda Course Introduction Module 1: Lease Administration Overview Module 2: Key Elements of Lease Administration Module 3: Lease-in Process Module 4: External and Internal Lease-out Process Module 5: Sales-Based Lease-out Process Module 6: : Lease s Approval Module 7: Payment Posting Simulation and Invoicing Module 8: Lease Administration Reporting Course Summary Course Assessment Course Survey 2

3 Introduction Please share with us: Your Name Your Section/Unit # Years with UN Interesting Fact About Yourself 3

4 Ground Rules Please consider the following guidelines during the training session: Turn your cell phone to silent mode. Please step out of the class to take any important phone call Please do not access your or the Internet outside of breaks Participate fully in the training session and respect each other s contribution Breaks are included at the discretion of the trainer X X No Phones Do Not Access Participate Ask Questions Breaks 4

5 Course Overview The purpose of the Umoja Lease Administration Process course is to provide UN with a system to lease and sub-let buildings or open spaces to external and internal agencies. Prerequisite Review You should have completed the following prerequisite courses: Umoja Overview Umoja Master Data & Coding Block Overview Umoja Real Estate Management Overview ECC Navigation Course Duration: 2 days 5

6 Course Objectives After completing this course, you will be able to: Define Lease Administration Describe the types of leases identified for UN Describe the types of Lease-in and Lease-out Complete the process steps required for Lease-ins, Internal and External Lease-outs and Sales-based Lease-outs Simulate receivable Postings and Invoices Use Umoja Standard Reporting for Leases Administration 6

7 Agenda Course Introduction Module 1: Lease Administration Overview Module 2: Key Elements of Lease Administration Module 3: Lease-in Process Module 4: External and Internal Lease-out Process Module 5: Sales-Based Lease-out Process Module 6: : Lease s Approval Module 7: Payment Posting Simulation and Invoicing Module 8: Lease Administration Reporting Course Summary Course Assessment Course Survey 7

8 Module 1 Objectives After completing this module, you will be able to: Define Lease Administration Describe the lease types identified for UN Explain the Lease Administration lifecycle Describe the integration of Real Estate with Funds Management 8

9 Key Terminology Key Term Lease-in External Lease-out Internal Lease-out Sales-based Lease-out Business Partner (BP) Description This lease type is used when the space is leased from an external party and is used by UN for its own use. This lease type represents the UN as the Tenant. These are leases where the space is leased to a UN agency external to Umoja or to any other commercial entity. For example, UNDP, UNICEF or JP Morgan Chase. These are leases where the space is leased to an entity internal to Umoja. The amounts owed are paid by the tenant via an internal debit to the tenants expense and credit to the landlord's revenue. These are leases with a commercial entity where all or a portion of the rent is based on the amount of revenue generate by the tenant. It may also include other tenant charges. This refers to a person or an organization that has a business interest related to real estate property with UN. A Business Partner can be an owner, tenant, property manager, lease administrator, staff member, consultant or other affiliate that uses UN premises to perform their activities. These Business Partners may have one or more of the following roles in Umoja Real Estate: Facilities Manager, Facilities Planner, Lease Processor, Approver, Landlord, Tenant or a Contact Person. 9

10 Key Terminology Key Term Building Land/Property Pooled Space Rental Space WBS Element Description It refers to any building structure occupied by UN (owned, leased or right-to-use). It refers to any parcel of property occupied by UN, be it owned, leased or occupied on a right-to-use basis. It refers to a flexible object that an be leased out either as whole or divided into rental spaces. Pooled space cannot be leased out in their own right. It refers to a flexible object that is a space extracted from a pooled space mainly for the purpose of leasing out. A Master Data element that represents a project with its structure. This is covered in the Project Management Process course. 10

11 Roles & Responsibilities The following Umoja Enterprise roles are involved in the Lease Administration process: Lease Processor Creates lease Checks and assigns Business Partner roles Inputs lease contract including financial information and simulates financial postings Monitors lease Lease Approver Reviews/approves/releases the lease contract created/maintained by the Lease Processor 11

12 Roles & Responsibilities The following Umoja Enterprise roles are involved in the Lease Administration process: Financial Accounting Senior User Simulates/executes periodic postings and sales-based settlements Creates invoices 12

13 Lease () Administration: Definition, Lease renewals, () lease termination Administration and is critical-date used for the tracking. management of leases and it involves creating, managing, renewing and terminating real estate leases for both owned property and rented premises. It is the process of creating and maintaining leases from initial setup through billing and lease management. 13

14 Umoja Solution for Real Estate End-to-End 14

15 Lease Types The main lease types identified for UN are: Lease Types Lease-in Where UN is occupying a space that is not owned by the UN. Lease-out Where the UN is leasing space (owned or not owned by the UN) to a third party, such as another UN agency, host government, commercial entity, NGO or other organization. 15

16 Lease-In Types Financial (lease) arrangements of the real estate object have to be indicated in the Usage View. Lease Arrangements, as per IPSAS: Finance Commercial: When the UN pays market rental rate and the leases meet one or more of the following finance criteria: ownership transferred to the UN by the end of the lease term; UN has the option to purchase the asset at lower than fair market value; lease term is for the major part of the life of the asset, i.e. greater than 35 years; the present value of the minimum lease payments, at the inception of the lease, amounts to substantially all of the fair value of the leased asset (PV 90% of the fair value). Finance Right-to-Use/In Kind: When the leases meet one of the finance criteria and use of the premises has been granted at no cost to the UN. Finance Right-to-Use Nominal: When the leases meet one of the finance criteria and use of the premises has been granted at nominal cost ( USD 1 per year) to the UN. Finance Subsidized: When the leases meet one of the finance criteria and the rent is subsidized. Sometimes the UN receives government funding to cover rental costs or in some other cases, non-profit organization (like FIPOI in Geneva) provides rent that are not profitable or below than market rate for the sake of a specific group. 16

17 Lease-In Types Operating (lease) arrangements of the real estate object have to be indicated in the Usage View. Lease Arrangements, as per IPSAS: Operating Commercial: When the leases do not meet any of the finance criteria and the UN pays market rental rates. Operating Right-to-Use/In-kind: When the leases do not meet any of the finance criteria and use of the premises has been granted at no cost to the UN. Operating Nominal: When the leases do not meet any of the finance criteria and use of the premises has been granted at nominal cost (USD 1 per year) to UN. Operating Subsidized: When the leases do not meet any of the finance criteria and the rent is subsidized. Sometimes the UN receives government funding to cover rental costs or in some other cases, non-profit organization (like FIPOI in Geneva) provides rent that are not profitable or below than market rate for the sake of a specific group. 17

18 Lease-out Types The various Lease-out types are: External: These are leases where the space is leased to an UN agency external to Umoja or to any other commercial entity. For example, UNDP, UNICEF, JP Morgan Chase. Internal: These are leases where the space is leased to an entity internal to Umoja. For example, a Peacekeeping Mission or Special Political Mission or two departments within the same entity (OCSS and DPI) Sales-based: These are leases with a commercial entity where all or a portion of the rent is based on the amount of revenue generated by the tenant. It may also include other tenant charges. 18

19 Umoja Business Partners Within Umoja, Business Partners are any individuals or organizations that have one or more relationships with UN. It is a generic, over-arching term used to describe: Staff Member UN Vendor UN Customer UN Landlord In the context of Real Estate, a Business Partner role identifies the relationship of the individual or organization who has a business interest related to real estate property with UN. 19

20 Business Partner Roles The following Business Partners will be required for the leasing of space: UN Master Tenant for Lease-out contracts UN Landlord for Lease-in contracts UN Contact Person for both Lease-in and Lease-out contracts (this is not a mandatory role) UN staff who manage and administer leases, will be associated with those leases as Umoja Business Partners. The following internal Business Partner will be required for the leasing of space: Lease Processor Lease Approver Individuals and organizations having one of the above roles will need to be created in Umoja. These Business Partners will be linked to the relevant real estate data record via business partner roles in RE-FX. 20

21 Lease Administration Lifecycle At the UN, real estate leases (Lease-ins) are negotiated by the Procurement Office for commercial lease-ins while right-to-use/in kind lease-ins are negotiated generally by the UN Head Quarter or by the Head of Mission Office. On the other hand customer contracts (Lease-outs) may be negotiated by Facilities Management, Engineering Unit or General Service. For External Lease-outs, Procurement and Management may also play a role. After the lease is agreed upon and signed by both parties, the lease is entered into the Umoja system with lease terms, conditions, renewal and notice terms. types are the key attributes used to classify different types of leases. Lease-in s Lease-out s Procurement Office Facilities Management 21

22 Real Estate & Funds Management Integration The processing of real estate lease contracts includes an integration of Real Estate with the Funds Management (FM). There are two types of contracts: Vendor s (Lease-in) For Lease-in contracts, a funds commitment is generated by creating a Purchase Order through Procurement. Customer s (Lease-out) For Lease-out external the posting parameters for revenue are maintained on the portfolio usage object. For Lease-out internal, a funds commitment is generated by the Tenant and assigned to the Leaseout internal contract. 22

23 Real Estate Accounting Real estate contract accounting is closely integrated with Umoja Financials and Umoja Controlling modules. Financial Business Partners for real estate processes Tenant and Landlord are linked to accounts in Accounts Receivable and Accounts Payable respectively. Each building owner from whom space is leased-in is created as a UN Landlord Business Partner in RE-FX. The Business Partner has a corresponding Vendor Master Record in Accounts Payable Each external third-party tenant (to whom space is leased-out) is created as a UN Tenant Business Partner with a customer account in RE-FX. The Business Partner has a corresponding Customer Master Record in Accounts Receivable Internal tenants (such as other UN Secretariat entities utilizing Umoja) are created as UN Tenant Business Partners without customer accounts. They will not have a customer record in Accounts Receivable 23

24 Learning Checkpoint 1 Which of the following are BPs associated with Real Estate Lease Administration? Select the correct option(s). A. UN Tenant B. UN Landlord C. Lease Processor D. Facility Manager 24

25 Learning Checkpoint 1 Which of the following are BPs associated with Real Estate Lease Administration? Select the correct option(s). A. UN Tenant B. UN Landlord C. Lease Processor D. Facility Manager The correct answer is A, B and C. These Business Partner roles above, individual or organization, have a business interest related to Real Estate Lease Administrator with UN while the Facility Manager is an Enterprise Role related to real Estate Portfolio Management. 25

26 Module 1 Summary The key points covered in this module are listed below: Lease administration is used for the management of leases and involves creating, managing, renewing and terminating real estate leases for both owned property and rented premises In Umoja, a lease is classified into two lease types - Lease-in and Lease-out At UN, real estate leases (Lease-ins) are negotiated by the Procurement division and customer contracts (Lease-outs) may be negotiated by Facilities Management, Engineering, General Service etc. 26

27 Agenda Course Introduction Module 1: Lease Administration Overview Module 2: Key Elements of Lease Administration Module 3: Lease-in Process Module 4: External and Internal Lease-out Process Module 5: Sales-Based Lease-out Process Module 6: Lease s Approval Module 7: Payment Posting Simulation and Invoicing Module 8: Lease Administration Reporting Course Summary Course Assessment Course Survey 27

28 Module 2 Objectives After completing this module, you will be able to: Describe the key elements of Lease Administration 28

29 Key Elements of Real Estate Lease The key elements of a lease include the following: Term & Renewal Term refers to the length of the contract while Renewal defines how the contract Term is renewed at the end of the contract Conditions & Adjustments Conditions contain the amounts due to the landlord or from the tenant. For Term example: base rent, utilities, rental of furniture. Posting Parameters Positing Parameters include information on payment terms, payment frequency and Term organizational assignment (profit center and business area) 29

30 Term, Renewal & Notice Term & Renewal Conditions & Adjustments Posting Parameters The contract Term stipulating the beginning and end of the rental period prevents the system from creating overlapping rental periods for a rental unit. Renewal rules are used to renew fixed-term contracts. During the creation of contracts, end-users select the renewal rule if it applies to their contract. Renewal rules can be Standard or Individual (user-specific) The Renewal Rules are optional and can be used to renew contract automatically. 30

31 Conditions & Adjustments T Term Renewal Conditions & Adjustments Posting Parameters Conditions are an Umoja terminology that refer to types of rent and are key in capturing the rent variations. Conditions provide UN with the capability to track updated information about revenue generated from rental of premises across geographical areas. Conditions include: Base Rent Rent Escalation Admin Charges Operating Expense Electric Water Gas Sewer Misc Charges Cleaning Pest Control Elevator use Provision/Rental of furniture Provision/rental of video conference Comp/phone and other IT equipment Sales-Based Rent During the life cycle of a lease, the conditions may need to be adjusted based on terms or clauses of leases. 31

32 Posting Parameters Term Renewal Conditions & Adjustments Posting Parameters Posting Parameters, which are used in Umoja only in association with Internal and External Lease out contracts, outline agreements on postings, frequency and organizational alignment in SAP. Postings are used for Lease-out external to capture the Landlord (UN entity) House Bank and Account information which is used by the Tenant to send electronic payments and for Lease-out internal, to specify the Tenant s Cost Center for posting of the Tenant s lease expense Frequency deals with the payment frequency and form for objects in the contracts. Organizational alignment defines the profit center and business area for the objects in the contracts and it is used for Lease-out internal to record the coding block of the Tenant 32

33 Learning Checkpoint 1 Which of the following key elements of a Lease contract are associated with Lease-out contracts only. Fill in the blank with the correct option. A. Term and Renewal B. Condition and Adjustment C. Posting Parameters 33

34 Learning Checkpoint 1 Which of the following key elements of a Lease contract are associated with Lease-out contracts only. Fill in the blank with the correct option. A. Term and Renewal B. Condition and Adjustment C. Posting Parameters Option C is the correct answer. Posting Parameters are used for Lease-out external to capture the Landlord House Bank and for Leaseout internal, to specify the Tenant s Cost Center for posting of the Tenant s lease expense. Earmarked funds for a lease-in contract are reserved by mean of the account assignment on the Purchases Order generated in SRM the contracts Frequency deals with the payment frequency and form for objects in the contracts 34

35 Module 2 Summary The key points covered in this module are listed below: The key elements of a lease include term, renewal/notice and conditions The real estate lease contract allows for configuration of various contract types and directly ties into Umoja financials via the condition type Renewal rules are critical UN lease components which are entered as per the terms or clauses of the signed lease Condition types, or charge amounts, are the most visible aspect when setting up the contract/lease accounting characteristics of a contract 35

36 Agenda Course Introduction Module 1: Lease Administration Overview Module 2: Key Elements of Lease Administration Module 3: Lease-in Process Module 4: External and Internal Lease-out Process Module 5: Sales-Based Lease-out Process Module 6: Lease s Approval Module 7: Payment Posting Simulation and Invoicing Module 8: Lease Administration Reporting Course Summary Course Assessment Course Survey 36

37 Module 3 Objectives After completing this module, you will be able to: Describe the steps in the Lease-in process 37

38 Lease-in: Process Steps The Lease-In process in Umoja consists of Procurement and Lease Administration activities, which include multiple process steps that extend across multiple enterprise roles. The Lease Administration process flow is displayed below. Requisitioner Approver Buyer/Bid Administrator Buyer/Approver Facilities Planner Facilities Manager Create Shopping Cart to Request Leasing Space Approve Shopping Cart Evaluate Bids for Spaces & Select Supplier Create & Approve Procurement Create RE Portfolio Objects Approve RE Portfolio Objects Requisitioner Requisitioner/ Approver Buyer/Approver Lease Processor Lease Processor Lease Processor Create Shopping Cart Calling off Create & Approve a Shopping Cart Create & Approve Purchase Order Verify Business Partners (BP) Request BP Information Update* Create Lease-in Lease Approver Lease Processor Lease Approver Requisitioner/ Approver Requisitioner/ Approver Account Senior User Approve Leasein Update for Statistical Purposes Approve 's Updates Create Entry Service Sheet Receive Entry Service Sheet Review Post Payment* Steps performed in Umoja SRM Steps performed in Umoja ECC *only if required 38

39 Lease-in: Process Steps This module will explained the steps required to create and manage a Lease-in contract. The steps to create a Shopping Carts and/or an Entry Service Sheet in connection with a Lease-in contract will the subjects of separate courses. Requisitioner Approver Buyer/Bid Administrator Buyer/Approver Facilities Planner Facilities Manager Create Shopping Cart to Request Leasing Space Approve Shopping Cart Evaluate Bids for Spaces & Select Supplier Create & Approve Procurement Create RE Portfolio Objects Approve RE Portfolio Objects Requisitioner Requisitioner/ Approver Buyer/Approver Lease Processor Lease Processor Lease Processor Create Shopping Cart Calling off Create & Approve a Shopping Cart Create & Approve Purchase Order Verify Business Partners (BP) Request BP Information Update* Create Lease-in Lease Approver Lease Processor Lease Approver Requisitioner/ Approver Requisitioner/ Approver Account Senior User Approve Leasein Update for Statistical Purposes Approve 's Updates Create Entry Service Sheet Receive Entry Service Sheet Review Post Payment* Steps performed in Umoja SRM Steps performed in Umoja ECC *If required 39

40 Check Business Partner Check Business Partner Create a Lease Approve a Lease Update a Lease The steps for searching a Business Partner in the Umoja system are: 1 Enter the T-code RE80 in the Command field 2 Click the Enter icon 2 1 You can also access this transaction using the SAP menu path: Accounting > Flexible Real Estate Management > Master Data > RE Navigator. 40

41 Check Business Partner Check Business Partner Create Architectural Create Objects Site, a Lease Building, Lad, Floor, Room Attach Approve Supporting a Lease Documents, if needed Update Approve a Lease Architectural Objects The RE-Navigator screen appears. 3 Select Partner from the drop-down 4 Click the Find icon to search for a Business Partner 3 4 Note: The drop-down menu provides a way to search for Business Partners while working in the RE Navigator screen. 41

42 Verify Master Data: Process Steps Check Business Partner Create a Lease Approve a Lease Update a Lease The steps to display a BP are as follows: 5 Click the Multiple Selection button next to the BP Role field 5 6 In the BP Role window, select the role you wish to verify Z00015 for UN Master Tenant Z00026 for UN Landlord w/ Vendor Account Z00050 for UN Lease Processor Z00051 for UN Approver 7 Click Enter

43 Verify Master Data: Process Steps Check Business Partner Create a Lease Approve a Lease Update a Lease 8 Click Enter in the Business Partner Number window Select the appropriate UN customer 9 Click the Continue icon

44 Verify Master Data: Process Steps Check Business Partner Create a Lease Approve a Lease Update a Lease 11 Select the appropriate BP Role from the Display in BP Role drop-down list Review the tabs and confirm the required information 13 Click Exit when complete

45 Check Business Partner Check Check Business Business Partner Partner Create Architectural Create Objects Site, a Building, Lease Land, Floor, Room Attach Approve Supporting a Lease Docuents, if needed Update Approve a Lease Architectural Objects Note: In Contact Approver s BP record check the Address tab and verify that the of Approver has been entered. If the field is blank the Approver will NOT receive the notification from the SAP inbox message to review and approve the contract 45

46 Check Business Partner Check Check Business Business Partner Partner Create Architectural Create Objects Site, a Building, Lease Land, Floor, Room Attach Approve Supporting a Lease Docuents, if needed Update Approve a Lease Architectural Objects A summary of the steps for checking a Business Partner is as follows: Search for a Business Partner using the T-code RE80 Select Partner from the drop-down in RE-Navigator screen and then click the Find icon to search for a Business Partner Select the BP Role Once search results display, verify that Business Partner you are checking exists in Umoja with the required Umoja BP Role (UN Master Tenant, UN Landlord w/ Vendor Account and Un Person) and Umoja Enterprise Role (UN Lease Processor and UN Approver) If the Business Partner is not available in BP search results, submit a request to the Finance team to create the Business Partner in Umoja (Master Data) Note: The procedure to request a new Business Partner to be added in Umoja will be communicated to you by the Business Partner Master Data Maintenance Team. It is advised to always check for a Business Partner before creating Architectural Objects. However, if the existence of a Business Partner has been previously validated, a check is not required. 46

47 Create Lease-in Check Business Partner Create a Lease Approve Attach Supporting a Lease Documents, if needed Update Approve a Lease Architectural Objects For Lease-In, after the procurement process is complete and the contract is approved, the Lease Processor is contacted by procurement to begin the following process. 2 1 The Lease Processor creates the lease-in contract and requests approval from the Approver. The steps to create a lease-in contract are as follows: 1 Enter the T-code RE80 in the Command field or click the SAP menu and select the Accounting > Flexible Real Estate Management > Master Data > RE Navigator menu item 2 Click the Enter icon 47

48 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease The RE Navigator screen appears. 3 Select Real Estate from the drop-down menu of the Navigation area 4 Click the Create icon

49 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 5 Select Type as Lease-In and 6 Type the required data in the Company Code field 7 Click the Continue icon Note: The Company Code used in Umoja is always

50 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 8 Click the General Data tab 9 Type in following fields: Name: The name and the number of the lease contract Conclusion: In Umoja SAP this is the end date of the current contract 9 8 Note: For contract (such as MOU s) that do not have an expiration date, you may enter 31/12/

51 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease Currency : The currency is set in order to have all subsequent conditions that are added default to that currency and provide a quick glance overview of what currency the lease is managed in. Changing this field does not affect the currency already assigned to an existing condition on the contract Authorization Group: The security parameter in RE-FX that identifies which group or location maintains an Architectural Object Note: Don't use the Relevant to Sales tab. This is only to create a Sales-based Lease-out contracts 51

52 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 10 To assign Business Partners, select the Partners tab 11 Click the Assign New Partner icon In Lease-ins, the relevant Business Partners that can be assigned are: UN Landlord w. Vendor Account: The landlord of the leased space UN Contact Person (if applicable): The individual designated by the landlord as the day-to-day point of contact for any issues related to the leased premise 52

53 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease UN Approver: The UN staff member responsible for reviewing and approving the lease contracts UN Lease Processor: The UN staff member responsible for creating and updating the lease contract 53

54 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 12 The Business Partner Search pop-up window is displayed. Type in the Name 1/LastName and Name 2/FirstName fields 13 Click the Continue icon

55 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 14 Select the Business Partner you wish to assign from the Results list 15 Click the Continue icon Repeat the steps to search for a required Business Partner for additional partners

56 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 16 Click the Term tab 17 Selecting the Term Item, populate the following fields: start date: The start date of the first contract entered into by the organization for the leased premises Cash Flow From: The first date on which the landlord will bill for rent and other related costs 1st End: The end date of the contract Term in months: will be automatically calculated on the basis of the contract start and end date

57 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 18 To create a Renewal rule Click the Create icon 19 Select Renewal in the drop down menu

58 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 20 In the Renewal tab click the Renewal Type field 21 Select a Renewal Type from the drop down list

59 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 22 Select the Renewal Rule field and click the matchcode icon 23 Select a Renewal Rule from the dropdown list 24 Click Enter icon 24 Note: To create and Individual Renewal rule consult the relevant Job-Aid

60 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease Select the Memo tab and enter additional information if required Note: The Renewal Rule will not generate any reminder for upcoming contract expiration however, a report will be scheduled and ed to the Lease Processors and Approvers indicating all leases that are due to be renewed. 60

61 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 26 Select the Objects tab 27 Click the Assign icon 28 Select Building or Property or Rental Object (only Pooled Space) Note: A Lease cannot be activated until it is referenced to a leased Real Estate Object

62 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease In the Restricted Value Range window, enter the Business Entity 29 Click the Start Search icon

63 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 31 Review the generated list to find the relevant Object type. Select the Object Type(s) to assign to the contract (by selecting the check box next on the object number) 32 Click the Continue icon

64 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease Repeat the steps to search for any additional Objects to be assigned 33 64

65 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease In case the measurement stored in the selected Usage Objects are different from the ones managed within the Lease, use the Differing Measurements tab 34 Select the Differing Measurements tab 35 Click on Add Measurement icon

66 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 36 Click the Conditions tab 37 Click the Insert Condition(s) icon 39 Select the required condition type to add to the contract 39 Click the Copy icon on the selected condition, which was added to the contract

67 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 40 Confirm that the Condition Purpose is Statistical and the Statist. box is checked 41 Enter the required details in the Valid From, To and Unit Price fields 42 Always select Fixed Amount in the Formula field dropdown menu 43 Any detail regarding the selected conditions can be specified in the Memo tab Repeat these steps for any additional conditions to be assigned

68 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease The Conditions on the Lease-in contract are for information purposes only, and when added, default to a condition purpose - Statistical. This setting should not be changed on Lease-in contracts. The actual conditions owed are recorded on the Purchase Order created in the procurement process as the earmarked funds for a lease-in contract are reserved by mean of the account assignment on the Purchases Order generated in SRM Consequently all invoices in connection with a lease-in contract will be received in Umoja by creating a Service Entry Sheet in ECC so to enable the payment of the same invoice Therefore all conditions created in the lease-in contracts in Umoja Real Estate may be updated with actual costs for information and statistical purposes only. 68

69 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 45 Return to the General Data tab Click the Change User Status icon at the bottom of the screen 46 Select the 02 REQS Approval Requested option Note: This triggers the workflow when the contract is saved 46 69

70 Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 50 Click the Save icon or select Real Estate > Save from the menu

71 Update Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease The Lease Processor updates the lease contract and requests approval from the Approver. 2 1 The steps to update a lease-in contract are as follows: 1 Type RE80 in the Command field or click the SAP menu and select Accounting > Flexible Real Estate Management > Master Data > RE Navigator menu icon 2 Click the Enter icon 71

72 Update Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 3 Select the Real Estate from the drop-down list in the Navigation area on the left-hand side of the screen and enter 4 Type the contract number 5 Click the Display icon

73 Update Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 6 To make changes to the contract, click the Display <-> Change icon 6 7 Follow the steps explained in the previous slides to access the various tabs that contain the information, which require updates 73

74 Update Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 8 To update the conditions on the basis of the invoices received from the Landlord, navigate to the Condition tab and enter the new conditions

75 Update Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 9 Click the Save icon 9 Note: This triggers the workflow and requires the Approver to approve the newly uploaded Conditions 75

76 Umoja Hands-on Verify the BP Create a Lease-in 76

77 Simulation Activities Throughout this training, users will have the opportunity to conduct activities in the form of simulations. Simulations are interactive recordings of the Umoja system used to help facilitate a hands-on learning experience. The simulation links are provided on the corresponding activity slides. Users can access simulations in three different modes: Show me: Users view a video of an entire transaction being conducted Let s do it together: Users will be prompted to input data at key points during the transaction (recommended) Try it: Users can complete an entire transaction on their own, with no additional instructions provided 77

78 Activity 1 Transaction Name: Lease-in Transaction Code: RE80 Link to the uperform simulation: ?mode=EU&originalContext=

79 Learning Checkpoint 1 Where are the scope and original basis for the Lease-in contract recorded? Select the correct option. A. On a Real Estate Lease-in contract B. On a Purchase Order C. On Real Estate Portfolio Management record 79

80 Learning Checkpoint 1 Where are the scope and original basis for the Lease-in contract recorded? Select the correct option. A. On a Real Estate Lease-in contract B. On a Purchase Order C. On Real Estate Portfolio Management record Option B is the correct answer. The actual conditions for a Lease-in contract are recorded on the Purchase Order created in the procurement process The Conditions on the Lease-in contract are for information purposes only, and when added, default to a condition purpose - Statistical. 80

81 Module 3 Summary The key points covered in this module are listed below: A Lease-in type is used when a UN entity leases a space and uses this space for its own use. This lease type represents UN as the Tenant In Umoja, the steps to create and update a lease contract are performed by the Lease Processor and then, the contract is sent to the Approver 81

82 Agenda Course Introduction Module 1: Lease Administration Overview Module 2: Key Elements of Lease Administration Module 3: Lease-in Process Module 4: External and Internal Lease-out Process Module 5: Sales-Based Lease-out Process Module 6: Lease Approvals Module 7: Payment Posting Simulation and Invoicing Module 8: Lease Administration Reporting Course Summary Course Assessment Course Survey 82

83 Module 4 Objectives After completing this module, you will be able to: Describe the steps in the External and Internal Lease-out process 83

84 External and Internal Lease-out: Process Steps The end-to-end steps required to create a Lease in Umoja SAP are displayed below. This module will focus on the External and Internal Lease-out process flow only. Facilities Planner Facilities Planner Facilities Manager Facilities Manager Lease Processor Create Architectural and Usage Objects Create Pooled Space Extract Rental Space Approve Architectural Objects Approve and Release Usage Objects Check Business Partner Lease Processor Lease Approver Facility Planner / Lease Processor Approver Lease Approver Lease Processor/ Approver Create Leaseout Approve and Activate Leaseout Execute Update Salebased s Conditions Settlement Simulation Approve Conditions Updates Periodic Posting: Simulation Financial Accounting Senior User Lease Processor/ Approver Financial Accounting Senior User Treasury User Periodic Posting: Simulation, Execution and Reversal Simulate Invoice Invoice: Create & Reversal Clear receivable Steps performed in Umoja ECC 84

85 Create : Summary The steps to create an External and Internal Lease-out contract are the same as the steps to create a Lease-in contract. Some of the field selections and entries change based on the lease type. These are listed in this module. Facilities Planner Facilities Planner Facilities Manager Facilities Manager Lease Processor Create Architectural and Usage Objects Create Pooled Space Extract Rental Space Approve Architectural Objects Approve and Release Usage Objects Check Business Partner Lease Processor Lease Approver Lease Processor Lease Approver Lease Processor / Approver Create Leaseout Approve and Activate Leaseout Update s Conditions Approve Conditions Updates Periodic Posting: Simulation Financial Accounting Senior User Lease Processor Financial Accounting Senior User Treasury User Periodic Posting: Simulation, Execution and Reversal Simulate Invoice Invoice: Create & Reversal Clear receivable 85

86 Various Cost Recovery/Billing Methods in Umoja Real Estate is used as Recovery/Billing method for lease related billing to external customers. Customers Line Item Rent, Utilities & Other Leaserelated Charges Occasional rental or use of UN spaces (including conferences) Ad-hoc facility, engineering and maintenance UN offices (both live in Umoja) Internal RE (Lease-Out) Internal Posting (Internal Rev.) Cost Recharge with inter-fund JV and immediate cash settlement through cash pool (Internal Rev. Spendable) UN offices (in transition to Umoja) RE (Lease-Out) External Billing (Internal Rev.) Inter-Office Voucher (IOV) Other UN related Organizations (Non- Secretariat) Military Contingents/ Permanent Missions External Suppliers / Vendors / Civilians Real Estate (Lease-Out) External Billing (External Revenue - Spendable or Non- Spendable) SD (Standard Order) Billing (External Revenue - Spendable) SD (Standard Order) Billing (External Revenue - Spendable or Non- Spendable) UN Staff Members Recovery from S/M s Salary AP Subledger Credit Memo (-ve Exp Account) Surcharges N/A N/A RE/SD Billing (External Revenue - Non-Spendable) N/A 86

87 Create Internal Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates For an Internal Lease-out, after the process is complete and the contract is approved, the Lease Processor is contacted to begin the following process. The Lease Processor creates the internal lease-out contract and requests approval from the Approver. The steps to create a lease-out contract are as follows: 1 Type RE80 in the Command field or click the SAP menu and select the Accounting > Flexible Real Estate Management > Master Data > RE Navigator menu item 2 Click the Type drop-down list and select Real Estate 3 Click the Create icon

88 Create Internal Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates 4 In the Create Real Estate pop-up window, select the Type as Lease-out Internal Click Enter icon 88

89 Create Internal Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates As detailed in the previous module, populate the following fields in the tabs outlined below: 5 5 Select the General Data tab and enter Name Conclusion, Currency Authorization group 89

90 Create Internal Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates 6 Partners tab: Assign the UN Lease Processor and UN Approver. 90

91 Create Internal Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates For Internal Lease-out contracts, you will also assign the UN Tenant w/o Cust. Acct (without Customer Account). This tenant will not have a customer account in Accounts Receivable to track the payments however, the funds transfers can be reviewed and monitored as object cash flow on the Overview tab. In addition, if applicable, assign UN Contact Person who is the individual designated by the tenant as the day-to-day point of contact for any issues related to the leased premise 91

92 Create Internal Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates Term tab: Enter the Start Date, Cash Flow From, and 1 st End Date 7 If required, enter Renewal Rule and the select either Standard Renewal or Individual Renewal from Renewal Type 92

93 Create Internal Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates 8 Select the Objects tab and click the Assign icon Select Building or Property or Rental Object (depending on the leased space) 93

94 Create Internal Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates If in the previous step you have selected a Rental Object click the dropdown menu icon next to the Rental Object Type ALWAYS select Rental Space from the drop dropdown menu 94

95 Create Internal Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates If the Lease-out is a sublet, you must also choose the Real Estate as the Object type. This will allow you to connect the lease contract for the sublet to the original lease-in contract Enter the search criteria to find the right contract and once identified click enter 95

96 Create Internal Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates 9 For an Internal Lease-out, you need to click the Posting Parameters tab and then select the Postings details before selecting the conditions: In the lower window Postings tab populate the Tenant s Cost Center field to specify the cost center or the WBS for the posting of the Tenant s lease expense Additionally, ensure the CrcyTrRule is set on the currency translation rule: ZUMOJA. This is a required field when managing a lease that is not in the company code currency 96

97 Create Internal Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates Select the Frequency tab and populate the relevant fields. The frequency allows you to assign various frequencies of payment from the tenant for each condition on the contract (example: monthly, quarterly, yearly) 97

98 Create Internal Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates Select the Organizational Assignment Term Category check box Click the Organizational Assignment tab Populate the Business Area, Fund, Fund Center and Functional Area to record the coding block of the Tenant Note: There is a system check to validate the combination of Posting Parameters (ie combination of Business Area and Fund, Functional Area and Fund Center, Cost Center and Fund Center). The system will give you an error if the parameters do not match 98

99 Create Internal Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates Business Area: It is a classification of UN entities operating in Umoja. Examples of business areas include Peacekeeping Missions, Special Political Missions and Offices Away from Headquarters Fund: It represents the foundation for tracking, controlling and reporting on available financial resources in Umoja Fund Center: It is an organizational unit within the FM module that controls a budget. It is time dependent and has the valid from and to dates. Every Funds Center corresponds to a Cost Center Functional Area: It is a Master Data element that is maintained within the FM module (Refer to the FM training material for more information) 99

100 Create Internal Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates Enter Posting Parameters AVC Check of Availability of Funds Draft an Earmarked Fund Approve Earmarked Funds via Workflow Earmarked Fund Ready to Utilise Lease Processor Umoja Umoja FM Approver Umoja Approve Update s Conditions Run Periodic Posting Budget is consumed Leaser Approver Lease Processor AR Senior User Umoja 100

101 Create Internal Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates 10 Select the Conditions tab Click the Insert Condition(s) icon. In the case of two or more assigned rental objects, when adding conditions, the system will prompt to choose the rental object to which are applying the condition(s) 101

102 Create Internal Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates For Internal Lease-outs between two entities in Umoja, the conditions of a contract are configured to process the contract s financial postings as an internal transfer between the Tenant s general ledger expense account to the Landlord s general ledger revenue account. Depending on the condition selected, the revenue will post to either the income section of the GL account or the spendable income GL account. Select conditions with IS2 next to the Condition Type Name to post financials to the income section Select conditions with SP next to the Condition Type Name to post to the spendable income GL account Click the Continue icon Repeat this step to add all additional conditions

103 Create Internal Lease-out Income Section 1 Income from Staff Assessment Income Section 2 General Income Income from rental of premises Reimbursement of services provided to Specialized Agencies & Others Bank Interest Sale of Used Equipment Refund of Previous Year Expenditures Contribution of Non-Member States Television and similar services Miscellaneous Income 103

104 Create Internal Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates The Lease Processor must determine with the accounts team whether or not the revenue from the tenant is IS2 or SP. (This is in accordance with IPSAS General Income section 2) If it will vary, additional conditions with date from and to may be specified on the contract in order to split it out or change from time to time. 104

105 Create Internal Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates Enter the required details in the Valid From, To and Unit Price fields Always select Fixed Amount in the Formula field dropdown menu. Any detail regarding the selected conditions can be specified in the Memo tab Repeat these steps for any additional conditions to be assigned 105

106 Create Internal Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates Note: The currency of each condition is defaulted to the Currency assigned on the General Data tab. The condition currency may be updated/changed freely as long as no financial postings have been run for a particular range of dates (period). If the currency needs to be changed for a range of dates (period) for which postings have been run, it requires a reversal of the posting(s) already made, update to the currency, and then a new posting. This transaction will be executed by the Senior Finance Accounting User. 106

107 Create Internal Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates 11 Once complete, return to the General Data tab and change the User Status to REQS Approval Requested Click the Enter icon Note: Once a lease contract is submitted for approval, it is locked from editing. If the Lease Processor wishes to make an change, or realized an error, they must request the Approve reject the contract outside the system, to allow any updates to be made. 107

108 Create Internal Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates 12 Click the Save icon or select Real Estate > Save from the menu 108

109 Umoja Hands-on Create an Internal Lease-out 109

110 Create External Lease-out Create Lease-out Approve and Release Lease-out Update Lease-out Approve s Updates For an External Lease-out, after the process is complete and the contract is approved, the Lease Processor is contacted to begin the following process. The Lease Processor creates the External lease-out contract and requests approval from the Approver. The steps to create an External lease-out contract are as follows: 1 Type RE80 in the Command field or click the SAP menu and select the Accounting > Flexible Real Estate Management > Master Data > RE Navigator menu item 2 Click the Type drop-down list and select Real Estate 3 Click the Create icon

111 Create External Lease-out Create Lease-out Approve and Release Lease-out Update Lease-out Approve s Updates 4 In the Create Real Estate pop-up window, select the Type as Lease-out External 111

112 Create External Lease-out Create Lease-out Approve and Release Lease-out Update Lease-out Approve s Updates As detailed in the previous module, populate the following fields in the tabs outlined below 5 Select the General Data tab and enter: Name Conclusion Currency Authorization group 112

113 Create External Lease-out Create Lease-out Approve and Release Lease-out Update Lease-out Approve s Updates Partners tab: Assign the UN Lease Processor and UN Approver. For Lease-out contracts, you will also assign the UN Master Tenant, the tenant responsible for the rented space. The tenant will have a customer account to track the payments due based on the rent conditions. In addition, if applicable, assign UN Contact Person who is the individual designated by the tenant as the day-to-day point of contact for any issues related to the leased premise 6 113

114 Create External Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates 7 Term tab: Enter the Start Date, Cash Flow From, and 1 st End Date If required, enter the Renewal Rule selecting either the Standard Renewal or Individual Renewal from Notice Type 114

115 Create External Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates 8 Select the Objects tab Click the Assign icon Select Building or Property or Rental Object (depending on the leased space) Note: A Lease cannot be activated until it is referenced to a leased Real Estate Object. 115

116 Create External Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates It is possible to search for the rental object utilizing different search criteria (Object name, address, use, functional location and so on) If you use the General Rental Objects tab, enter 1000 as the Company Code and search for a Rental Object type. In this process, ALWAYS select Rental Space from Rental Object Type search window. 116

117 Create External Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates If the Lease-out is a sublet, you must also choose the Real Estate as the Object type. This will allow you to connect the lease contract for the sublet to the original lease-in contract Enter the search criteria to find the right contract and once identified click enter 117

118 Create External Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates 9 Click the Posting Parameters tab and then select the Postings details before selecting the conditions: For an External Lease-out, populate the Landlord (UN entity) House Bank and Account fields in the Postings tab. These fields are used so that the Tenant may send electronic payments Additionally, populate the CrcyTrRule field. This field is used to assign the currency translation rule: ZUMOJA. This is a required field when managing a lease that is not in the company code currency 118

119 Create External Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates Select the Frequency tab and populate the relevant fields. The frequency allows you to assign various frequencies of payment from the tenant for each condition on the contract (example: monthly, quarterly, yearly) 119

120 Create External Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates 10 Select the Conditions tab Click the Insert Condition(s) icon. In the case of two or more assigned rental objects, the conditions tab, when adding conditions, will prompt to choose which rental object the condition is applicable for Note: The currency of each condition is defaulted to the Currency assigned on the General Data tab. The condition currency may be updated/changed freely as long as no financial postings have been run in for a particular range of dates (period). If the currency needs to be changed for a range of dates (period) for which postings have been run, it requires a reversal of the posting(s) already made, update to the currency, and then a new posting. This transaction will be executed by the Senior Finance Accounting User 120

121 Create External Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates Select the conditions to add from the pop-up window. Depending on the condition selected, the revenue will post to either the income section of the GL account or the spendable income GL account Select conditions with SP next to the Condition Type Name to post to the spendable income GL account Select conditions with IS2 next to the Condition Type Name to post financials generated under the Income Section 2 to the income section Select conditions with IS3 next to the Condition Type Name to post financials generated under the Income Section 3 to the income section (This is in accordance with IPSAS General Income section 2 and section 3) Click the Continue icon Repeat this step to add all additional conditions 121

122 Create External Lease-out Income Section 1 Income from Staff Assessment Income Section 2 General Income Income from rental of premises Reimbursement of services provided to Specialized Agencies & Others Bank Interest Sale of Used Equipment Refund of Previous Year Expenditures Contribution of Non-Member States Television and similar services Miscellaneous Income Income Section 3 Services to Public United Postal Administration Operations Services to Visitors Revenue Services of DESA Sales of Gift Items Newsstand Operations Garage Operations Catering Operations Other Commercial Operations 122

123 Create External Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates 11 Once complete, return to the General Data tab and change the User Status to REQS Approval Requested Click the Enter icon 123

124 Create External Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates 12 Click the Save icon or select Real Estate > Save from the menu 124

125 Update : Summary The steps to update an External and Internal Lease-out contract are the same as the steps to update a Lease-in contract. Some of the field selections and entries change based on the lease type. These are listed in this module. Facilities Planner Facilities Planner Facilities Manger Facilities Manger Lease Processor Create Architectural and Usage Objects Create Pooled Space Extract Rental Space Approve Architectural Objects Approve and Release Usage Objects Check Business Partner Lease Processor Lease Approver Lease Processor Lease Approver Lease Processor / Approver Create Leaseout Approve and Activate Leaseout Execute Update Salebased s Conditions Settlement Simulation Approve Conditions Updates Periodic Posting: Simulation Financial Accounting Senior User Lease Processor / Approver Financial Accounting Senior User Treasury User Periodic Posting: Simulation, Execution and Reversal Simulate Invoice Invoice: Create & Reversal Clear receivable 125

126 Update Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates The Lease Processor updates the lease contract and requests approval from the Approver. The steps to update a lease-in contract are as follows: 1 Type RE80 in the Command field or click the SAP menu and select Accounting > Flexible Real Estate Management > Master Data > RE Navigator menu icon 2 Click the Enter icon 126

127 Update Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates 3 Select the Real Estate from the drop-down list in the Navigation area on the left-hand side of the screen and enter 4 Type the contract number 5 Click the Display icon 127

128 Update Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates 6 To make changes to the contract, click the Display <-> Change icon 7 Follow the steps explained in the previous slides to access the various tabs that contain the information, which require updates 128

129 Update Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates 8 To update the conditions and invoice the Tenant according to contractual agreement, navigate to the Condition tab and enter the new conditions. 129

130 Update Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates 9 Click Save icon 130

131 Update Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates 1 To review the status of a contract, click the Services for Object icon, and selecting Workflow > Workflow Overview 131

132 Update Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates 2 Review the contract status from the Data on Linked Workflow window 132

133 Update Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates When updating a lease-out contract, it also a good practice to also review the Account Sheet and Invoices from the Overview tab. This allows you to review the financial activity on the contract 3 133

134 Update Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates 4 In the Selection of an Overview List drop down menu select Invoice 134

135 Update Lease-out Create Lease-out Approve and Activate Lease-out Update Lease-out Approve s Updates Review the Account Sheet that provides an overview of the financials of the contract, including payments made and any open items. Select an Invoice and click on it to view any invoices created 5 135

136 Umoja Hands-on Create an External Lease-out 136

137 Activity 1 Transaction Name: Create and Update a Internal Lease- Out Transaction Code: RE80 Link to the uperform simulation: ?mode=EU&originalContext=

138 Activity 2 Transaction Name: Create an External Lease-out contract Transaction Code: RE80 Link to the uperform simulation: ?mode=EU&originalContext=

139 Learning Checkpoint 1 Which one of the following terms describes a lease where the space is leased to a UN agency external to Umoja or to any other commercial entity? Select the correct option. A. Lease-in B. Internal Lease-out C. External Lease-out D. Sales-based Lease-out 139

140 Learning Checkpoint 1 Which one of the following terms describes a lease where the space is leased to a UN agency external to Umoja or to any other commercial entity? Select the correct option. A. Lease-in B. Internal Lease-out C. External Lease-out D. Sales-based Lease-out Option C is the correct answer. External Lease-out is a lease where the space is leased to a UN agency external to Umoja or to any other commercial entity. 140

141 Learning Checkpoint 2 When creating an External Lease-out, which of the following information the Lease Processor will enter at the Posting Parameters tab? Select the correct option. A. The Tenant s Bank details B. The Tenant s Fund, Functional Area and Fund Center. C. The Landlord s House Bank details D. The Landlord Fund, Functional Area and Fund Center 141

142 Learning Checkpoint 2 When creating an External Lease-out, which of the following information the Lease Processor will enter at the Posting Parameters tab? Select the correct option. A. The Tenant s Bank details B. The Tenant s Fund, Functional Area and Fund Center. C. The Landlord s House Bank details D. The Landlord Fund, Functional Area and Fund Center The Posting Parameters tab for the External Lease-out is populated with the Landlord (UN entity) House Bank and Account fields in the Postings tab. These fields are used so that the Tenant may send electronic payments 142

143 Module 4 Summary The key points covered in this module are listed below: An External Lease-out type is used where the space is leased to a UN agency external to Umoja or to any other commercial entity An Internal Lease-out type is used where the space is leased to an entity internal to Umoja Steps required to perform External and Internal Lease-out activities in Umoja 143

144 Agenda Course Introduction Module 1: Lease Administration Overview Module 2: Key Elements of Lease Administration Module 3: Lease-in Process Module 4: External and Internal Lease-out Process Module 5: Sales-Based Lease-out Process Module 6: Lease Approvals Module 7: Payment Posting Simulation and Invoicing Module 8: Lease Administration Reporting Course Summary Course Assessment Course Survey 144

145 Module 5 Objectives After completing this module, you will be able to: Describe the steps in the Sales-based Lease-out process 145

146 Sales-based Lease-out: Process Steps The end-to-end steps required to create a Lease in Umoja SAP are displayed below. This module will focus on the Sales-based Lease-out process flow only. Facilities Planner Facilities Planner Facilities Manager Facilities Manager Lease Processor Create Architectural and Usage Objects Create Pooled Space Extract Rental Space Approve Architectural Objects Approve and Release Usage Objects Check Business Partner Lease Processor Lease Approver Lease Processor Lease Approver Financial Accounting Senior User Create Sales based Lease-out Approve and Activate Leaseout Update Sales based Lease-out Approve Leaseout Simulate Salebased Settlement Lease Processor/ Approver Financial Accounting Senior User Lease Processor/ Approver Financial Accounting Senior User Financial Accounting Senior User Simulate Salebased Settlement Execute Salebased Settlement Simulate Periodic Posting Periodic Posting: Simulation, Execution and Reversal Invoice: Create & Reversal Steps performed in Umoja ECC 146

147 Create : Summary The steps to create a Sales-based Lease-out contract, with the addition of sales based data for determining the amount due from the tenant based on their sales, are the similar to the steps for creating an External Lease-out contract. Some of the field selections and entries change based on the lease type. These are listed in this module. Facilities Planner Facilities Planner Facilities Manager Facilities Manager Lease Processor Create Architectural and Usage Objects Create Pooled Space Extract Rental Space Approve Architectural Objects Approve and Release Usage Objects Check Business Partner Lease Processor Lease Approver Lease Processor Lease Approver Financial Accounting Senior User Create Sales based Lease-out Approve and Activate Leaseout Update Sales based Lease-out Approve Leaseout Simulate Salebased Settlement Lease Processor/ Approver Financial Accounting Senior User Lease Processor/ Approver Financial Accounting Senior User Financial Accounting Senior User Simulate Salebased Settlement Execute Salebased Settlement Simulate Periodic Posting Periodic Posting: Simulation, Execution and Reversal Invoice: Create & Reversal 147

148 Create Sales-based Lease-out Create Sales-based Lease-out Approve and Activate Salesbased Lease out Update Salesbased Sales-based Lease out Settlement Approve Updated Conditions Simulate Salesbased Settlement For a Sales-based Lease-out, after process is complete and the contract is approved, the Lease Processor is contacted by procurement to begin the following process. The Lease Processor creates the Sales-based Lease-out contract and requests approval from the Approver. The steps to create a Sales-based Lease-out contract are as follows: 1 Type RE80 in the Command field or click the SAP menu and select the Accounting > Flexible Real Estate Management > Master Data > RE Navigator menu item 2 Click the Type drop-down list and select Real Estate 3 Click the Create icon 148

149 Create Sales-based Lease-out Create Sales-based Lease-out Approve and Activate Salesbased Lease out Update Salesbased Sales-based Lease out Settlement Approve Updated Conditions Simulate Salesbased Settlement The steps which are different are listed below: 4 Select the Type as Lease-out Sales Based on the Create Real Estate pop-up window 149

150 Create Sales-based Lease-out Create Sales-based Lease-out Approve and Activate Salesbased Lease out Update Salesbased Sales-based Lease out Settlement Approve Updated Conditions Simulate Salesbased Settlement 5 In the General Data tab, enter the required details in the following fields: Name Conclusion Authorization Group For Lease-out Sales-Based contract, select the Relevant to Sales check box. This will enable the Sales-Based Rent Agreement tab for entering the sales and reporting rules for Sales-based Lease-out contracts 150

151 Create Sales-based Lease-out Create Sales-based Lease-out Approve and Activate Salesbased Lease out Update Salesbased Sales-based Lease out Settlement Approve Updated Conditions Simulate Salesbased Settlement As detailed in the previous module, populate the following fields in the tabs outlined below: 6 In the Partners tab, enter required details in the following fields: UN Master Tenant UN Lease Processor UN Approver UN Contact Person, if applicable 7 In the Term tab enter required details in the following fields: Start Date Cash Flow From 1 st End Date 8 In the Objects tab enter required details in the Rental Objects field 151

152 Create Sales-based Lease-out Create Sales-based Lease-out Approve and Activate Salesbased Lease out Update Salesbased Sales-based Lease out Settlement Approve Updated Conditions Simulate Salesbased Settlement In the Posting Parameters tab: 9 Select the Postings details and enter required details in the following fields: House Bank Account (this is the bank were the AR credit is posted) CrCyTrRule These fields are for Electronic Fund Transfer (EFT ) payment receipt from the tenant 152

153 Create Sales-based Lease-out Create Sales-based Lease-out Approve and Activate Salesbased Lease out Update Salesbased Sales-based Lease out Settlement Approve Updated Conditions Simulate Salesbased Settlement 10 On the Conditions tab, select the conditions to add from the pop-up window. Sales-Based Rent condition is ALWAYS select the from this condition list at the Condition tab however, the details pertaining Sales-Base Rent conditions are maintained in the Sales-Based Rent Agreement Tab Enter other charges and enter the directly in the Sales-Based Rent Agreement tab 153

154 Create Sales-based Lease-out Create Sales-based Lease-out Approve and Activate Salesbased Lease out Update Salesbased Sales-based Lease out Settlement Approve Updated Conditions Simulate Salesbased Settlement Select the conditions to add from the pop-up window. Depending on the condition selected, the revenue will post to either the income section of the GL account or the spendable income GL account Select conditions with SP next to the Condition Type Name to post to the spendable income GL account Select conditions with IS2 next to the Condition Type Name to post financials generated under the Income Section 2 to the income section Select conditions with IS3 next to the Condition Type Name to post financials generated under the Income Section 3 to the income section (This is in accordance with IPSAS General Income section 2 and section 3) Click the Continue icon Repeat this step to add all additional conditions 154

155 Create Sales-based Lease-out Create Sales-based Lease-out Approve and Activate Salesbased Lease out Update Salesbased Sales-based Lease out Settlement Approve Updated Conditions Simulate Salesbased Settlement Sales and Reporting rules are important for Sales-based Lease-outs. Click the Sales-Based Rent Agreement tab to assign these rules Click the Fast Entry icon and populate the

156 Create Sales-based Lease-out Create Sales-based Lease-out Approve and Activate Salesbased Lease out Update Salesbased Sales-based Lease out Settlement Approve Updated Conditions Simulate Salesbased Settlement In the Fast Entry for New Sales window populate the following fields: Sales Rule Name: name of the Sales rule Valid From: date of the first day that sales-based rent can be collected Type of Sales Rule: This value will default to Sales-Based Rent Sales Type: click the matchcode and select the type of sales on which sales-based rent will be collected 156

157 Create Sales-based Lease-out Create Sales-based Lease-out Approve and Activate Salesbased Lease out Update Salesbased Sales-based Lease out Settlement Approve Updated Conditions Simulate Salesbased Settlement Frequency Start: The date on which the sales-based rent can be collected marks the start of the frequency Frequency: It defines how often the sales-based rent will be collected Sales Grading Type: If the Sales Grading Type is No Sales Grading Agreement, then populate the % Rate field % rate: Defines the percentage of sales on which the sales-based rent will be collected Click the Enter icon 157

158 Create Sales-based Lease-out Create Sales-based Lease-out Approve and Activate Salesbased Lease out Update Salesbased Sales-based Lease out Settlement Approve Updated Conditions Simulate Salesbased Settlement 13 If the Sales Grading Type is Sales Grading Agreement, the grading fields will appear at the bottom of the screen. Click the Add Condition icon and populate the following fields: Sales from: the value (amount) from which the percentage of sales-based rent can be calculated Sales To: the value (amount) to which the percentage of sales-based rent can be calculated % rate: The percentage of sales on which sales-based rent can be calculated Min. rent: The minimum rent due regardless of the sales 158

159 Create Sales-based Lease-out Create Sales-based Lease-out Approve and Activate Salesbased Lease out Update Salesbased Sales-based Lease out Settlement Approve Updated Conditions Simulate Salesbased Settlement 14 Still in the Sales-Based Rent Agreement tab, select Sales Rules In the Conditions tab Create a New Condition Select the Condition Type in the pop up widow Click Copy 159

160 Create Sales-based Lease-out Create Sales-based Lease-out Approve and Activate Salesbased Lease out Update Salesbased Sales-based Lease out Settlement Approve Updated Conditions Simulate Salesbased Settlement 15 When Condition in Details screen appears, populate the following fields: Valid from To 1st Posting Currency Click Continue icon 160

161 Create Sales-based Lease-out Create Sales-based Lease-out Approve and Activate Salesbased Lease out Update Salesbased Sales-based Lease out Settlement Approve Updated Conditions Simulate Salesbased Settlement Select the Reporting Rule details field and review entries If an additional Reporting Rules is required, click the Add Rule icon and populate the following fields: Name Valid From/To Frequency Frequency Unit Frequency Start 161

162 Create Sales-based Lease-out Create Sales-based Lease-out Approve and Activate Salesbased Lease out Update Salesbased Sales-based Lease out Settlement Approve Updated Conditions Simulate Salesbased Settlement Note: Sales to be Reported entries are immediately available at the Sales Reporting tab 162

163 Create Sales-based Lease-out Create Sales-based Lease-out Approve and Activate Salesbased Lease out Update Salesbased Sales-based Lease out Settlement Approve Updated Conditions Simulate Salesbased Settlement 18 Once complete, return to the General Data tab and change the User Status to REQS Approval Requested 163

164 Create Sales-based Lease-out Create Sales-based Lease-out Update Salesbased Lease out Sales-based Settlement Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 19 Click the Save icon or select Real Estate > Save from the menu 164

165 Update Sales-based Lease-out Create Sales-based Lease-out Update Salesbased Lease out Sales-based Settlement Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse The steps to updates Sales-based lease-out contract are as follows: 1 Enter RE80 in the Command field to display the contract 2 Click the Display <-> Change icon 3 Click the Condition tab 4 Enter the new conditions to invoice the Tenant according to contractual agreement 165

166 Update Sales-based Lease-out Create Sales-based Lease-out Update Salesbased Lease out Sales-based Settlement Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 5 Click the Sales-Based Agreement Tab 6 Select Reporting Rules 7 Click the Sales Report tab 8 Select Sales from the Sales to be Reported drop down menu 9 Enter the sale reported by the Tenant (Net Sales) as well as the date the report was received (Reported on) Note: The reporting period is defaulted and derived from the Frequencies established in the Sale Rules 166

167 Update Sales-based Lease-out Create Sales-based Lease-out Update Salesbased Lease out Sales-based Settlement Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 10 Click the Save icon 167

168 Umoja Hands-on Create a Sales-based Lease-out 168

169 Activity 1 Transaction Name: Create Sales-based Lease-out Transaction Code: RE80 Link to the uperform simulation: ?mode=EU 169

170 Learning Checkpoint 1 Which of the following statement is true about the Sales-based Agreement tab: Select the correct option. A. It is appears when selecting the Type External-Lease out B. It is appears when selecting the Type Lease-out Sales-Based C. It appears when checking the Relevant to Sale checkbox in the General Data tab 170

171 Learning Checkpoint 1 Which of the following statement is true about the Sales-based Agreement tab: Select the correct option. A. It is appears when selecting the Type External-Lease out B. It is appears when selecting the Type Lease-out Sales-Based C. It appears when checking the Relevant to Sale checkbox in the General Data tab For Lease-out Sales-Based contract we select the Relevant to Sales check box. This will enable the Sales-Based Rent Agreement tab for entering the sales and reporting rules for Sales-based Lease-out contracts 171

172 Module 5 Summary The key points covered in this module are listed below: Sales-based Lease-outs are leases with a commercial entity where all or a portion of the rent is based on the amount of revenue generate by the tenant Sales-based Lease-outs may also include other tenant charges Steps required to perform Sales-based Lease-out activities in Umoja 172

173 Agenda Course Introduction Module 1: Lease Administration Overview Module 2: Key Elements of Lease Administration Module 3: Lease-in Process Module 4: External and Internal Lease-out Process Module 5: Sales-Based Lease-out Process Module 6: Lease Approvals Module 7: Payment Posting Simulation and Invoicing Module 8: Lease Administration Reporting Course Summary Course Assessment Course Survey 173

174 Module 6 Objectives After completing this module, you will be able to: Describe the steps in the Approval process 174

175 Approval: Process Steps After a contract is created, it goes through an approval process. This module focuses on the contract approval process for Lease-ins, Lease-outs and Sales-based Lease-outs. Lease Processor Lease Approver Lease Approver Create Lease Approve Lease Activate Lease Steps performed in Umoja ECC 175

176 Approve a Create Lease Approve Lease Activate Lease When the lease is saved by the Lease Processor, an and an SAP inbox message is sent to the Approver to review and approve the contract. The Approver may approve or reject the contract. The Lease Processor is notified of the results of the Approver's action by . An is sent to the Approver s SAP inbox containing the links for the following activities: Approve Reject Display the contract Note: the Approver will not receive an if the address has not been entered in the BP record. 176

177 Approve a Create Lease Approve Lease Activate Lease The steps to approve a lease contract are as follows: 1 On the SAP Easy Access screen click the SAP Business Workplace icon 1 Note: You can also use the T-code SBWP to access the SAP Business Workplace. 177

178 Approve a Create Lease Approve Lease Activate Lease 2 Click inbox in the 3 Select the lease to review 3 Click the Execute icon After reviewing the contract, click the Back icon to return to the inbox 178

179 Approve a Create Lease Approve Lease Activate Lease 4 Click the Display button too review the lease 179

180 Approve a Create Lease Approve Lease Activate Lease 6 Navigate through the relevant tabs and review the contract details 7 Click Display Change icon 180

181 Approve a Create Lease Approve Lease Activate Lease 8 In the General Data tab click the User Status icon 9 Set the User status as Approved 181

182 Approve a Create Lease Approve Lease Activate Lease 10 Click the Activate icon to make the lease contract available for financial posting Click the Save icon to capture the changes Click Back icon to return to the Business Workplace 182

183 Approve a Create Lease Approve Lease Activate Lease 13 Click the Back icon again to return to the Business Workplace 14 The Lease Processor will receive communication regarding the Approver s decision on each lease contract. It does take a few minutes for the workflow message to show up in the Lease Processor s and SAP inbox. 183

184 Approve a Create Lease Approve Lease Activate Lease 13 To rejected a lease contract, follow the steps below: Return to the Lease Approval screen from the Business Workplace Select the Reject button Justify the reason for rejecting the contract in the Justify Your Decision field 184

185 Approve a Create Lease Approve Lease Activate Lease 14 The status of the workflow can be seen on the contract by clicking the Services for Object icon and selecting Workflow > Workflow overview 185

186 Umoja Hands-on Approve the contracts you have created 186

187 Learning Checkpoint 1 Which of the following is used to review the status of the contract approval workflow? Select the correct option. A. SAP Business Workplace icon B. Display icon C. Workflow icon D. Services for Object icon 187

188 Learning Checkpoint 1 Which of the following is used to review the status of the contract approval workflow? Select the correct option. A. SAP Business Workplace icon B. Display icon C. Workflow icon D. Services for Object icon Option D is the correct answer. The Services for Object icon is used to review the status of the contract approval workflow. You can then select the Workflow > Workflow overview option. 188

189 Module 6 Summary The key points covered in this module are listed below: Steps required to perform the contract approval process for Lease-in, External and Internal Lease-out and Sales-based Lease-outs 189

190 Agenda Course Introduction Module 1: Lease Administration Overview Module 2: Key Elements of Lease Administration Module 3: Lease-in Process Module 4: External and Internal Lease-out Process Module 5: Sales-Based Lease-out Process Module 6: Lease Approvals Module 7: Payment Posting Simulation and Invoicing Module 8: Lease Administration Reporting Course Summary Course Assessment Course Survey 190

191 Module 7 Objectives After completing this module, you will be able to: Describe the steps in Lease-out Period Posting Simulation and Sales-based Lease-out Sales Settlement and Period Posting Simulation 191

192 Period : Process Steps The end-to-end steps required to create a Lease-out in Umoja SAP are displayed below. This module will focus on Period Posting, Sale Settlement and Simulation of an Invoice process flow only. Facilities Planner Facilities Planner Facilities Planner Facilities Planner Lease Processor Create Architectural and Usage Objects Create Pooled Space Extract Rental Space Approve Architectural Objects Approve/Releas e Usage Objects Check Business Partner Lease Processor Lease Approver Lease Processor Lease Approver Facility Planner / Approver Create Lease-out Approve and Activate Leaseout Update Leaseout Approve Update Simulate Salebased Settlement Financial Accounting Senior User Facility Planner/ Approver Financial Accounting Senior User Facility Planner / Approver Financial Accounting Senior User Execute Salebased Settlement Simulate Periodic Posting Periodic Posting: Simulation, Execution and Reversal Simulate Invoice Invoice: Create & Reversal Steps performed in Umoja ECC 192

193 Create : Summary The steps to execute Period Posting Simulation and simulate an Invoice are detailed in this module. Facilities Planner Facilities Planner Facilities Planner Facilities Planner Lease Processor Create Architectural and Usage Objects Create Pooled Space Extract Rental Space Approve Architectural Objects Approve/Releas e Usage Objects Check Business Partner Lease Processor Lease Approver Lease Processor Lease Approver Facility Planner / Approver Create Lease-out Approve and Activate Leaseout Update Leaseout Approve Update Simulate Salebased Settlement Financial Accounting Senior User Facility Planner/ Approver Financial Accounting Senior User Facility Planner / Approver Financial Accounting Senior User Execute Salebased Settlement Simulate Periodic Posting Periodic Posting: Simulation, Execution and Reversal Simulate Invoice Invoice: Create & Reversal 193

194 Periodic Posting - Simulation Create Lease-out Approve Leaseout Update Leaseout Periodic Posting, Simulation Run Periodic Posting In Umoja, the Lease Processor and the Financial Accounting Senior User can simulate periodic postings to review the posting for any errors. Only the Financial Accounting Senior User once executed the simulation, if no errors have been identified, will create a receivables on the tenant s customer account. These financial postings represent the revenue due from the tenant and include the associated coding block (fund, grant and so on) The steps to simulate a periodic postings are: 1. 1 Enter RERAPP in the Command field or click the SAP menu and select the Accounting > Flexible Real Estate Management > Accounting > periodic postings > periodic posting: s menu item 194

195 Periodic Posting - Simulation Create Lease-out Approve Leaseout Update Leaseout Periodic Posting, Simulation Run Periodic Posting 2 In the Selection section, enter details in the following fields: Company Code: The Company Code used in Umoja is 1000 from and to: This allows you to run the periodic posting for multiple contracts by entering a range of contract numbers 2 195

196 Periodic Posting - Simulation Create Lease-out Approve Leaseout Update Leaseout Periodic Posting, Simulation Run Periodic Posting 3 In the Period section, enter details in the following fields: Month for Posting Run: The month the tenant receivables are due Year for Posting Run: The year the tenant s receivables are due Due Date: The date less than or equal to the date through which conditions due on the contract will be collected. For example, if the conditions are due in June, this date will be less than or equal to 30 June 3 196

197 Periodic Posting - Simulation Create Lease-out Approve Leaseout Update Leaseout Periodic Posting, Simulation Run Periodic Posting 4 In the Posting section, enter details in the following fields: Document Header Text: This is the text displayed at the top of the posting report upon execution. This should be updated as appropriate for Lease-out internal certifications Posting Date: The reference date for when the financial documents will be recognized Document Date: The date the financial documents are created in the system

198 Periodic Posting - Simulation Create Lease-out Approve Leaseout Update Leaseout Periodic Posting, Simulation Run Periodic Posting Posting Period: The current open financial period for the financial records Posting Run Mode: During a periodic posting simulation, the Posting Run Mode is always Simulation Type of Posting Run: This is always an Integrated Posting. The integrated posting accrues the revenue due to the tenant, directly to the rental object 198

199 Periodic Posting - Simulation Create Lease-out Approve Leaseout Update Leaseout Periodic Posting, Simulation Run Periodic Posting Confirm the Posting Run mode is set to Simulation 5 6 Click the Execute icon

200 Periodic Posting - Simulation Create Lease-out Approve Leaseout Update Leaseout Periodic Posting, Simulation Run Periodic Posting After running the simulation, the first screen displays a summarized listing of the run results. Select the Documents button to view the simulated debits and credits with the complete financial coding block of each 7 7 For example: 200

201 Periodic Posting - Simulation Create Lease-out Approve Leaseout Update Leaseout Periodic Posting, Simulation Run Periodic Posting After simulating and reviewing the posting, the Financial Accounting Senior User can execute periodic postings by changing the Posting Run Mode to Update Run and clicking the Execute icon or select to Program -> Execute 8 8 Note: In the event of an error, the Financial Accounting Senior User can reverse the periodic posting. 201

202 Simulate an Invoice Approve Leaseout Update Leaseout Periodic Posting, Simulation Run Periodic Posting Simulate an Invoice The Lease Processor can also simulate invoices but only after the Financial Accounting Senior User has run the periodic posting The steps to simulate an invoice are: 1 Enter RERAIV in the Command field or click the SAP menu and select the Accounting > Flexible Real Estate Management > Accounting > Invoices > Create Invoices menu item 202

203 Simulate an Invoice Approve Leaseout Update Leaseout Periodic Posting, Simulation Run Periodic Posting Simulate an Invoice 2 In the Selection section, enter details in the following fields: Company Code: 1000 is the Company Code used in Umoja Number from and to fields: This allows you to create invoices for multiple contracts by entering a range of contract numbers 2 203

204 Simulate an Invoice Approve Leaseout Update Leaseout Periodic Posting, Simulation Run Periodic Posting Simulate an Invoice In the Selection of Invoice Terms section, enter details in the following fields: 3 Selection Type: Always select Only Items from FI documents Due Period From and To: The dates that correspond with the conditions 3 Note: These fields specify whether or not to pick up items on the invoice that are the result of the periodic posting run execution and/or cash flow forecast in the contract. 204

205 Simulate an Invoice Approve Leaseout Update Leaseout Periodic Posting, Simulation Run Periodic Posting Simulate an Invoice 4 In the Invoice Creation section, enter details in the following fields: Execution Mode: Always select Simulation to review the invoice before executing Title: The title of the run Summarize: Always select Per 4 205

206 Simulate an Invoice Approve Leaseout Update Leaseout Periodic Posting, Simulation Run Periodic Posting Simulate an Invoice Click the Execute icon or go to Program > Execute 5 5 Select an invoice and click the Preview button

207 Simulate an Invoice Approve Leaseout Update Leaseout Periodic Posting, Simulation Run Periodic Posting Simulate an Invoice 7 Review the invoice to ensure that it is correct 7 207

208 Create : Summary The steps to create a Execute a Settlement in connection with a Sales-based Lease-out contract are detailed in this module. Facilities Planner Facilities Planner Facilities Planner Facilities Planner Lease Processor Create Architectural and Usage Objects Create Pooled Space Extract Rental Space Approve Architectural Objects Approve/Releas e Usage Objects Check Business Partner Lease Processor Lease Approver Lease Processor Lease Approver Facility Planner / Approver Create Lease-out Approve and Activate Leaseout Update Leaseout Approve Update Simulate Salebased Settlement Financial Accounting Senior User Facility Planner/ Approver Financial Accounting Senior User Facility Planner / Approver Financial Accounting Senior User Execute Salebased Settlement Simulate Periodic Posting Periodic Posting: Simulation, Execution and Reversal Simulate Invoice Invoice: Create & Reversal 208

209 Sales-based Settlement Create Sales-based Lease-out Approve Salesbased Lease-out Update Salesbased Lease-out Sales-based Settlement Periodic Posting Simulation The Lease Processor simulate a sales-based settlement to calculate the sales-based rent due as per the tenant sales report The steps to simulate a sales-based settlement are: 209

210 Sales-based Settlement Create Sales-based Lease-out Approve Salesbased Lease-out Update Salesbased Lease-out Sales-based Settlement Periodic Posting Simulation Enter RESRSE in the Command field or click the SAP menu and select the Accounting > Flexible Real Estate Management > Sales-Based Settlement > RESRSE - Execute/Continue Settlement menu item

211 Sales-based Settlement Create Sales-based Lease-out Approve Salesbased Lease-out Update Salesbased Lease-out Sales-based Settlement Periodic Posting Simulation 2 Populate the following fields: Company Code: 1000 is the Company Code used in Umoja from and to: This allows you to run the salesbased settlement for multiple contracts by entering a range of contract numbers 2 211

212 Sales-based Settlement Create Sales-based Lease-out Approve Salesbased Lease-out Update Salesbased Lease-out Sales-based Settlement Periodic Posting Simulation Activity: Select whether to create a new settlement, continue with an existing settlement or reverse a settlement Settlement Method: Always Simulate as the Settlement Method Settlement Type: Always select Standard as the Settlement Type Settlement Schema: Always select Settlement Using Actual AP Settlement Step: Always select 02 Calculation of Sales-Based Rent Settle to: This date is less than or equal to the Sales-Based Rent due date 212

213 Sales-based Settlement Create Sales-based Lease-out Approve Salesbased Lease-out Update Salesbased Lease-out Sales-based Settlement Periodic Posting Simulation At the Selection of Sale Rule tab enter: Term Category: Sales Rule Settle to: This date is less than or equal to the Sales-Based Rent due date 213

214 Sales-based Settlement Create Sales-based Lease-out Approve Salesbased Lease-out Update Salesbased Lease-out Sales-based Settlement Periodic Posting Simulation At the Parameters tab enter: Document Header Text: Settlement Posting Parameters: This date is less than or equal to the Sales-Based Rent due date Due Date: This date is less than or equal to the Sales-Based Rent due date Posting Period: According to the posting date 214

215 Sales-based Settlement Create Sales-based Lease-out Approve Salesbased Lease-out Update Salesbased Lease-out Sales-based Settlement Periodic Posting Simulation 3 Click the Execute icon or select Program > Execute 3 Note: The Lease Processor can simulate a Sales-based settlement, but only the Financial Accounting Senior user is able to execute a Sales-based Settlement. 215

216 Sales-based Settlement Create Sales-based Lease-out Update Salesbased Lease-out Sales-based Settlement Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 4 After the execution, a summary of the results will display 5 Click on the item you wish to review, (for this example the Result of Base Settlement)

217 Sales-based Settlement Create Sales-based Lease-out Update Salesbased Lease-out Sales-based Settlement Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 6 Review the report and click the Back icon to return to the Sales-Based Settlement screen

218 Sales-based Settlement Create Sales-based Lease-out Update Salesbased Lease-out Sales-based Settlement Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse After simulating and reviewing the result, the Financial Accounting Senior User can execute Sale-Based Settlement by changing the Settlement Method from Simulate to Execute and clicking the Execute icon

219 Sales-based Settlement Create Sales-based Lease-out Update Salesbased Lease-out Sales-based Settlement Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse Once executed the settlement, returning back on the Sales-Based Settlement screen: 8 Change the Activity to Continue Existing Settlement 9 Change the Settlement Step to 06 Posting of Sales-Based Rent in Financial Accounting 10 Click Execute icon 219

220 Sales-based Settlement Create Sales-based Lease-out Update Salesbased Lease-out Sales-based Settlement Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse If the settlement was executed without errors, the posting will be reflected on the contract s Conditions

221 Sales-based Settlement Create Sales-based Lease-out Update Salesbased Lease-out Sales-based Settlement Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse Once completed the Sales-Based settlement, Lease Processor and the Financial Accounting Senior User can simulate periodic postings to review the posting for any errors. Only the Financial Accounting Senior User once executed the simulation, if no errors have been identified, will create a receivables on the tenant s customer account The steps to simulate a periodic postings are: To simulate the periodic posting, enter RERAPP in the Command field and follow the steps outlined at the beginning of this module The Lease Processor can also simulate invoices but only after the Financial Accounting Senior User has run the periodic posting To simulate an invoice enter RERAIV in the Command field and follow the steps outlined at the beginning of this module 221

222 Sales-based Settlement Create Sales-based Lease-out Update Salesbased Lease-out Sales-based Settlement Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse Issued invoices can be printed and mailed/ ed to the Tenant 222

223 Umoja Hands-on Simulate a Sales-based settlement and Periodic Posting 223

224 Activity 1 Transaction Name: Periodic Posting Execution with with update run Transaction Code: RERAPP Link to the uperform simulation: Periodic Posting Execution with update run 224

225 Activity 2 Transaction Name: Periodic Posting s Transaction Code: RERAPP Link to the uperform simulation: ?mode=EU&originalContext=

226 Activity 3 Transaction Name: Simulate Invoice Transaction Code: RERAIV Link to the uperform simulation: ?mode=EU&originalContext=

227 Activity 4 Transaction Name: Sales-based Settlement Transaction Code: RESRSE Link to the uperform simulation: ?mode=EU 227

228 Learning Checkpoint 1 Which of the following T-codes is to simulate a sales-based settlement? Select the correct option. A. RERAPP B. RE80 C. RERAIV D. RESRSE 228

229 Learning Checkpoint 1 Which of the following T-codes is to simulate a sales-based settlement? Select the correct option. A. RERAPP B. RE80 C. RERAIV D. RESRSE Option D is the correct answer. The T-code used to simulate a sales-based settlement is RESRSE. 229

230 Learning Checkpoint 2 Which of the following T-codes is used to simulate an invoice? Select the correct option. A. RE80 B. RERAIV C. RESRSE D. RERAPP 230

231 Learning Checkpoint 2 Which of the following T-codes is used to simulate an invoice? Select the correct option. A. RE80 B. RERAIV C. RESRSE D. RERAPP Option B is the correct answer. The T-code RERAIV is used to create an invoice and even reverse it, as required. 231

232 Module 6 Summary The key points covered in this module are listed below: Steps required to perform Periodic Posting Simulation for External and Internal Lease-out. In addition for Sales- based Lease-out we have covered the steps to perform a Period Settlement. 232

233 Agenda Course Introduction Module 1: Lease Administration Overview Module 2: Key Elements of Lease Administration Module 3: Lease-in Process Module 4: External and Internal Lease-out Process Module 5: Sales-Based Lease-out Process Module 6: Payment Posting Simulation and Invoicing Module 7: Lease Approvals Module 8: Lease Administration Reporting Course Summary Course Assessment Course Survey 233

234 Module 8 Objectives After completing this module, you will be able to: Navigate the Umoja ECC to access Lease Administration reports Describe the purpose of select Real Estate Reports specific to Lease Administration 234

235 Access Umoja ECC Lease Administration Reports Run Transaction Code re80 Navigate RE Navigator Folder Structure Select and Generate Appropriate Report All Umoja ECC Real Estate reports can be centrally accessed by navigating through the sub-folders within the RE navigator. Run transaction code RE80 The steps to access Umoja ECC Real Estate Reports are: 1 Enter RE80 in the Command field Click the Enter icon 2 3 Click the Information Systems tab in the left hand menu of the RE Navigator 4 Select the appropriate (ie Overview)

236 Access Umoja ECC Lease Administration Reports Run transaction code RE80 Navigate RE Navigator Folder Structure Select and Generate Appropriate Report 5 Click the Matchcode Select the lease type and click the Copy icon to apply to your query 6 Run Transaction Code re

237 Access Umoja ECC Lease Administration Reports Run Transaction Code re80 Navigate RE Navigator Folder Structure Select and Generate Appropriate Report The Dynamic Selections icon can be used to customize the view of information displayed in Umoja ECC reports. The steps to customize the view of the Umoja ECC Real Estate Reports are: Click the Dynamic Selections icon Open the folder 2 Select Authorization Group from the drop down menu Click Copy selected button 237

238 Access Umoja ECC Lease Administration Reports Run Transaction Code re80 Navigate RE Navigator Folder Structure Select and Generate Appropriate Report Click the Matchcode icon next to the Authorization Group field 5 6 Select an Authorization Goup and click the Copy icon 7 Click the Execute icon

239 Access Umoja ECC Lease Administration Reports Run Transaction Code re80 Navigate RE Navigator Folder Structure Select and Generate Appropriate Report 8 Each line is a dynamic link, click on it to navigate to the corresponding 9 Click on the Spreadsheet icon to export the report in Excel 10 Click on the Change Layout icon to customize the report layout

240 Customize View of ECC Real Estate Reports Run Transaction Code re80 11 In the Change Layout popup window select item(s) under the Column content list you need to remove from the report and click the Hide selected Fields icon 12 Select items under the Hidden Fields you need to show in the report and click the Show Sel. Field icon Navigate RE Navigator Folder Structure Select and Generate Appropriate Report

241 Access Umoja ECC Lease Administration Reports Run Transaction Code re80 Navigate RE Navigator Folder Structure Select and Generate Appropriate Report Note that in the s Folder, there are multiple types of reports that can be run across all leases. Run transaction code RE80 Note: There are additional BI Real Estate Reports. Detailed information and steps for accessing these reports are outlined in the BI training material 241

242 Access Umoja ECC Lease Administration Reports Run Transaction Code re80 Navigate RE Navigator Folder Structure Select and Generate Appropriate Report 1 Other samples of Lease Administration reports is available under the Controlling folder Run transaction code RE80 242

243 Access Umoja ECC Lease Administration Reports Run Transaction Code re80 Navigate RE Navigator Folder Structure 2 Complete the necessary fields and then press Execute Select and Generate Appropriate Report Run transaction code RE

244 Access Umoja ECC Lease Administration Reports Run Transaction Code re80 Navigate RE Navigator Folder Structure Select and Generate Appropriate Report The report shows you by usage object the financial postings to the GL accounts and the period in which the posting was made. By using the variants when running the report, the users will be able to analyze specific objects Run transaction in the portfolio for either expense postings (lease-in) or revenue postings (lease-out). You are able to code click RE80 through the Leases in this report for more details

245 Module 8 Summary The key points covered in this module are listed below: All s Reports are accessed through the subfolders within the RE Navigator The Cost/Revenue: Period Report allows users to analyze specific objects in the portfolio for either expense or revenue reporting 245

246 Umoja Hands-on Experience Umoja Standard Real Estate Reports 246

247 Agenda Course Introduction Module 1: Lease Administration Overview Module 2: Key Elements of Lease Administration Module 3: Lease-in Process Module 4: External and Internal Lease-out Process Module 5: Sales-Based Lease-out Process Module 6: Payment Posting Simulation and Invoicing Module 7: Lease Approvals Module 8: Lease Administration Reporting Course Summary Course Assessment Course Survey 247

248 Course Summary The key points covered in this module are listed below: Lease administration is used for the management of leases and it involves creating, managing, renewing and terminating real estate leases for both owned property and rented premises In Umoja, a lease is classified into two types - Lease-in and Lease-out At UN, real estate leases (Lease-in) are negotiated by the Procurement division and customer contracts (Lease-outs) are negotiated by other Units such as Facilities Management, Engineering or General Services. Umoja system creates an earmarked funds document in FM for the respective fiscal year when a Lease-in real estate contract is created ( for commercial lease-in this is created in SRM in the form of a PO) Steps required to perform Lease-in activities in Umoja Steps required to perform External and Internal Lease-out activities in Umoja Steps required to perform Sales-based Lease-out activities in Umoja Steps required to perform the Approval process in Umoja The Real Estate reports available in Umoja for Lease Administration 248

249 Agenda Course Introduction Module 1: Lease Administration Overview Module 2: Key Elements of Lease Administration Module 3: Lease-in Process Module 4: External and Internal Lease-out Process Module 5: Sales-Based Lease-out Process Module 6: Payment Posting Simulation and Invoicing Module 7: Lease Approvals Module 8: Lease Administration Reporting Course Summary Course Assessment Course Survey 249

250 Course Assessment Now that you have completed all the modules in this course, you can test your knowledge by completing the Course Assessment. To receive credit for completing this course, you must pass this assessment with a minimum score of 90%. To complete the assessment you must return to the Learning Management System: 1. Log into Inspira 2. Navigate to Main Menu > Self-Service > Learning > My Learning 3. Search for the name of the course under the My Learning Activities section 4. Click the Start link of the course assessment 5. Click the Submit button once you have completed the assessment 250

251 Agenda Course Introduction Module 1: Lease Administration Overview Module 2: Key Elements of Lease Administration Module 3: Lease-in Process Module 4: External and Internal Lease-out Process Module 5: Sales-Based Lease-out Process Module 6: Payment Posting Simulation and Invoicing Module 7: Lease Approvals Module 8: Lease Administration Reporting Course Summary Course Assessment Course Survey 251

252 Course Survey Your feedback is important to the continuous improvement of our training program. Please complete the evaluation for this course using the following steps: 1. Log into Inspira 2. Navigate to Main Menu > Self-Service > Learning > My Learning 3. Search for the name of the course under the My Learning Activities section 4. Click the Start link of the course survey 5. Click the Submit button once you have completed the course survey 252

253 Congratulations! You have successfully completed the Lease Administration Process course. 253