CS324 Umoja Lease Administration Process. Umoja Lease Administration Process Version PDF Free Download

CS324 Umoja Lease Administration Process Umoja Lease Administration Process Version 16 Last Copyright Modified: United 15-January-14 Nations 1

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: Lease Administration Reporting Course Summary Course Assessment Course Survey 2

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

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 e-mail 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 E-mail Participate Ask Questions Breaks 4

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: 6 hours 5

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 6

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

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

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

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

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

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

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. 14

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. 15

Lease-In Types Financial (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. 16

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. 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. 17

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. 18

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. 19

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 20

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. 21

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 22

Learning Checkpoint 1 Which of the following are BPs associated with Real Estate Lease Administration? Select the correct option. A. UN Tenant B. UN Landlord C. Lease Processor D. Lease Approver E. All of the above Option E is the correct answer. All Business Partner roles identified above, individual or organization, have a business interest related to real estate property with UN. 24

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. 25

Module 2 Objectives After completing this module, you will be able to: Describe the key elements of Lease Administration 27

Key Elements of Real Estate Lease The key elements of a lease include the following: Term Renewal/ Notice Refers to the length of the contract. Renewal rules, rent escalations Term and termination options are required for setting up a UN lease. 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) 28

Term, Renewal & Notice Term Renewal/ Notice 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. A number of renewal rules are delivered as standard by Umoja and will remain unchanged During the creation of contracts, end-users select the renewal rule that applies to their contract and can also create user-specific rules at the same time A termination notice is used to terminate a contract on a specific date. They may only be given on contracts that have been set up with an early termination clause. When the notice is given, the reason to exercise the notice needs to be provided. This justification is then used for notice reporting. 29

Conditions & Adjustments T Term Renewal/ Notice 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. 30

Posting Parameters Term Renewal/ Notice 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 31

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/Renewal and Notice 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 33

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 34

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: Lease Administration Reporting Course Summary Course Assessment Course Survey 35

Module 3 Objectives After completing this module, you will be able to: Describe the steps in the Lease-in process 36

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. This module will focus on the Lease-in process only. Requisitioner/ Approver Buyer/Bid Administrator Buyer/Approver Facilities Planner/ Facilities Manager Requisitioner/ Approver Create & Approve Shopping Cart with Request for Space Evaluate Bids for Spaces & Select Supplier Create & Approve Procurement Create & Approve RE Portfolio Objects Create & Approve a Shopping Cart to create a Purchase Order Lease Processor Lease Processor Lease Approver Lease Processor Requisitioner/ Approver Verify Business Partners (BP) Create Lease-in Approve Lease-in Update Lease-in for Statistical Purposes Create & Approve Entry Service Sheet Steps performed in Umoja SRM Steps performed in Umoja ECC 37

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. 38

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. 39

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 7 6 40

Verify Master Data: Process Steps Check Business Partner Create a Lease Approve a Lease Update a Lease 1 Click Enter in the Business Partner Number window 2 Select the appropriate UN customer 3 Click the Continue icon 3 2 71 41

Verify Master Data: Process Steps Check Business Partner Create a Lease Approve a Lease Update a Lease 1 Select the appropriate BP Role from the Display in BP Role drop-down list 3 2 Review the tabs and confirm the required information 3 Click Exit when complete 9 1 42

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. 43

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: Enter the T-code RE80 in the Command 1 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 44

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 3 4 45

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 5 6 7 Note: The Company Code used in Umoja is always 1000. 46

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 contract 9 8 47

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: Sales-Based Rent Agreement tab is only click for entering the sales and reporting rules for Sales-based Lease-out contracts 48

Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 10 To assign Business Partners, select the Partners tab Click the Assign New Partner icon 11 11 10 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 dayto-day point of contact for any issues related to the leased premise 49

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 50

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 12 13 51

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. 15 14 52

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 first contract Term in months: will be automatically calculated on the basis of the contract start and end date 17 17 16 53

Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 18 If required, click the Notice item 19 Select either Standard Procedures or Individual Notice Procedures from Notice Type 18 19 54

Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 20 Click the Notice Procedure matchbox 21 Select a procedure name 22 Click the Enter icon 20 22 21 55

Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 23 If required, click the Add Term icon 24 Select Renewal for the drop-down list 25 The Renewal screen is display. Select Renewal Type 23 24 25 56

Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 26 Click the Renewal Rule matchcode icon 27 Select a Renewal Rule from the drop-down list 28 Click the Enter icon 28 26 27 57

Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 29 Select the Objects tab 30 Click the Assign icon 31 Select Building or Property or Rental Object (only Rental Space) (depending on the leased space) 31 29 Note: A Lease cannot be activated until it is referenced to a leased Real Estate Object. 31 58

Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease You can search the Object utilizing various criteria (object name, address, utilization and so on). One possibility is searching by Authorization Group: 32 In the Search pop-up window, click the Building in the business entity tab 33 Click the Authorization Group multiple selection button 32 k 33 59

Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 34 In the Restricted Value Range window Click the Start Search icon 35 Select the Authorization Group from the list and click Copy 35 34 60

Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 36 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) 37 Click the Continue icon 37 36 61

Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 38 Repeat the steps to search for any additional Objects to be assigned 38 62

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 38 Select the Differing Measurements tab 38 Click on Add Measurement icon 38 38 63

Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 39 Click the Conditions tab 40 Click the Insert Condition(s) icon 41 Select the required condition type to add to the contract 42 Click the Copy icon on the selected condition, which was added to the contract 41 39 42 64

Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease The conditions on Lease-in contracts are always statistical 43 Confirm that the Condition Purpose is Statistical and the Statist. box is checked 44 Enter the required details in the Valid From, To and Unit Price fields Repeat these steps for any additional conditions to be assigned. 43 44 65

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. 66

Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease Return to the General Data tab 45 46 Click the Change User Status icon at the bottom of the screen 47 Select the 02 REQS Approval Requested option 45 Note: This triggers the workflow when the contract is saved 47 46 67

Create Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 47 Click the Save icon or select Real Estate > Save from the menu 47 47 68

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 69

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 3 3 5 70

Update Lease-in Check Business Partner Create a Lease Approve a Lease Update a Lease 5 To make changes to the contract, click the Display <-> Change icon 5 6 Follow the steps listed above to access the various tabs that contain the information, which require updates 71

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 72

Activity 1 Transaction Name: Lease-in Transaction Code: RE80 Link to the uperform simulation: http://unsapuperform.umoja.un.org/gm/folder- 1.11.3821?mode=EU&originalContext=1.11.3790 73

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. 75

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 76

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: Lease Administration Reporting Course Summary Course Assessment Course Survey 77

Module 4 Objectives After completing this module, you will be able to: Describe the steps in the External and Internal Lease-out process 78

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/ Release Usage Objects Check Business Partner Lease Processor Lease Approver Lease Processor Financial Accounting Senior User Financial Accounting Senior User Create Leaseout Approve Leaseout Update execute Periodic Posting Simulation, Periodic Posting: Simulation, Execution and Reversal Invoice: Create & Reversal Steps performed in Umoja ECC 79

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/ Release Usage Objects Check Business Partner Lease Processor Lease Approver Lease Processor Financial Accounting Senior User Financial Accounting Senior User Create Leaseout Approve Leaseout Update execute Periodic Posting Simulation, Periodic Posting: Simulation, Execution and Reversal Invoice: Create & Reversal 80

Create Internal Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 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 3 Select Real Estate 4 Click the Create icon 3 4 81

Create Internal Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 5 In the Create Real Estate pop-up window, select the Type as Lease-out Internal 5 82

Create Internal Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse As detailed in the previous module, populate the following fields in the tabs outlined below: General Data tab: Enter the Name, Conclusion, Currency and Authorization group 6 83

Create Internal Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse Partners tab: Assign the UN Lease Processor and UN Approver. For Lease-out contracts, you will also assign the UN 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 84

Create Internal Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse Term tab: Enter the Start Date, Cash Flow From, and 1 st End Date If required, click the Notice item and enter either the Select either Standard Procedures or Individual Notice Procedures from Notice Type 85

Create Internal Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse Select the Objects tab and click the Assign icon Select Building or Property or Rental Object (only Rental Space) (depending on the leased space) 7 8 8 86

Create Internal Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 9 In case of selection of Rental Object Select the Rental Space 10 10 9 10 87

Create Internal Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 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 11 Enter the search criteria to find the right contract and once identified click enter 12 11 88

Create Internal Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse For an Internal Lease-out, you need to click the Posting Parameters tab and then select the Postings details before selecting the conditions: 13 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 14 Note: In a lease contract, Posting Parameters provides the link between the cost center assignments and the funding information, and confirms there is a valid tie. If there is not, an error will occur 14 89

Create Internal Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 15 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) 15 90

Create Internal Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse Select the Organizational Assignment Term Category check box 16 17 Click the Organizational Assignment tab Populate the Business Area, Fund, Fund Center, Commitment Item and Functional Area to record the coding block of the Tenant. Details on these areas can be found on the next slide 18 17 16 Note: In an Internal Lease-out between two Umoja entities, the Tenant organization create a Commitment Item to consume budgets and inform the Landlord organization of the commitment item details 18 91

Create Internal Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 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 Commitment Item: The number of the funds commitment item created by the Tenant in order to consume budget. When the periodic posting are run, this enables recording of expense against the Tenant s commitment item Functional Area: It is a Master Data element that is maintained within the FM module (Refer to the FM training material for more information) 92

Create Internal Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse Select the Conditions tab 19 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 20 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. 20 19 93

Create Internal Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse For Internal Lease-outs between to 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. 21 Depending on the condition selected, the revenue will post to either the income section of the GL account or the spendable income GL account. 21 Select conditions with IS2 next to the Condition Type Name to post financials to the income section 22 Select conditions with SP next to the Condition Type Name to post to the spendable income GL account 23 Click the Continue icon 23 Repeat this step to add all additional conditions 23 94

Create Internal Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 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. 95

Create Internal Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse Once complete, return to the General Data tab and change the User Status to REQS Approval Requested 24 Click the Enter icon 25 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. 24 25 96

Create External Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 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 3 Select Real Estate 4 Click the Create icon 3 4 97

Create External Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse In the Create Real Estate pop-up window, select the Type as Lease-out External 5 5 98

Create External Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse As detailed in the previous module, populate the following fields in the tabs outlined below: General Data tab: Enter the Name, Conclusion, Currency and Authorization group 6 99

Create External Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 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 100

Create External Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse Term tab: Enter the Start Date, Cash Flow From, and 1 st End Date If required, click the Notice item and enter either the Select either Standard Procedures or Individual Notice Procedures from Notice Type 101

Create External Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse Select the Objects tab and click the Assign icon and select Rental Object 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, the search window shows the following relevant options: Rental Unit or Rental Space 7 8 9 10 9 10 102

Create External Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 11 Click the Posting Parameters tab and then select the Postings details before selecting the conditions: 11 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 12 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 13 12 13 103

Create External Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 14 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) 14 104

Create External Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse Select the Conditions tab 15 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 16 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 16 15 105

Create External Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse Select the conditions to add from the pop-up window 17 Click the Continue icon 18 Repeat this step to add all additional conditions 18 106

Create External Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse Once complete, return to the General Data tab and change the User Status to REQS Approval Requested 19 Click the Enter icon 20 19 20 107

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. 108

Update Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse The steps which are different are listed below: When updating a lease-out contract, review the Account Sheet and Invoices from the Overview tab. This allows you to review the financial activity on the contract 1 1 109

Update Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse The Account Sheet provides an overview of the financials of the contract, including payments made and any open items 2 2 110

Update Lease-out Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse The Invoices selection allows you to view any invoices created. These invoices can be reissued to the tenant, if necessary 3 3 View the status of the Workflow on the contract by clicking the Services for Object icon, and selecting Workflow > Workflow Overview 4 4 111

Periodic Posting, Simulation, Execution & Reversal Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse In Umoja, the Lease Processor and the Financial Accounting Senior User can simulates periodic postings to review the posting for any errors. 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 112

Periodic Posting, Simulation, Execution & Reversal Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 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 2 113

Periodic Posting, Simulation, Execution & Reversal Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 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 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 3 114

Periodic Posting, Simulation, Execution & Reversal Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 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 4 115

Periodic Posting, Simulation, Execution & Reversal Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 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 116

Periodic Posting, Simulation, Execution & Reversal Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 5 Confirm the Posting Run mode is set to Simulation 6 Click the Execute icon 6 117

Periodic Posting, Simulation, Execution & Reversal Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 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: 118

Periodic Posting, Simulation, Execution & Reversal Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse After simulating and reviewing the posting, the Financial Accounting Senior User to execute periodic postings, change the Posting Run Mode to Update Run Click the Execute icon or select to Program -> Execute 8 9 9 Note: In the event of an error, the Financial Accounting Senior User can reverse the periodic posting. 119

Periodic Posting, Simulation, Execution & Reversal Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse The first screen to appear will display a summarized listing of the run results. Select the Documents icon which will show a popup from which you can navigate and display the financial documents created 10 10 For example: 120

Create an Invoice Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 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 121

Create an Invoice Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse In the Selection section, enter details in the following fields: 2 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 2 122

Create an Invoice Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 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. 123

Create an Invoice Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse In the Invoice Creation section, enter details in the following fields: 4 4 Execution Mode: Always select Simulation to review the invoice before executing Title: The title of the run Summarize: Always select Per 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. 124

Create an Invoice Create Lease-out Update Lease-out Periodic Posting, Simulation, Invoice simulation Click the Execute icon or go to Program > Execute 5 5 Select an invoice and click the Preview button 6 6 125

Create an Invoice Create Lease-out Update Lease-out Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 7 Review the invoice to ensure that it is correct 7 126

Activity 1 Transaction Name: Create and Update a Internal Lease- Out Transaction Code: RE80 Link to the uperform simulation: http://unsapuperform.umoja.un.org/gm/folder- 1.11.3825?mode=EU&originalContext=1.11.3790 127

Activity 1 Transaction Name: External Lease-out Transaction Code: RE80 Link to the uperform simulation: http://unsapuperform.umoja.un.org/gm/folder- 1.11.3817?mode=EU&originalContext=1.11.3790 128

Activity 2 Transaction Name: Periodic Posting s Transaction Code: RERAPP Link to the uperform simulation: http://unsapuperform.umoja.un.org/gm/folder- 1.11.3841?mode=EU&originalContext=1.11.3790 129

Activity 3 Transaction Name: Periodic Posting Execution Transaction Code: RERAPP Link to the uperform simulation: http://unsapuperform.umoja.un.org/gm/folder- 1.11.3845?mode=EU&originalContext=1.11.3790 130

Activity 4 Transaction Name: Periodic Posting Reversal Transaction Code: RERAPPRV Link to the uperform simulation: http://unsapuperform.umoja.un.org/gm/folder- 1.11.3849?mode=EU&originalContext=1.11.3790 131

Activity 5 Transaction Name: Create Invoice Transaction Code: RERAIV Link to the uperform simulation: http://unsapuperform.umoja.un.org/gm/folder- 1.11.3833?mode=EU&originalContext=1.11.3790 132

Activity 6 Transaction Name: Reverse Invoice Transaction Code: RERAIVRV Link to the uperform simulation: http://unsapuperform.umoja.un.org/gm/folder- 1.11.3837?mode=EU&originalContext=1.11.3790 133

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. 135

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 136

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. 137

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 138

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: Approvals Module 7: Lease Administration Reporting Course Summary Course Assessment Course Survey 139

Module 5 Objectives After completing this module, you will be able to: Describe the steps in the Sales-based Lease-out process 140

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 Planner Facilities Planner Lease Processor Create Architectural and Usage Objects Create Pooled Space Extract Rental Space Approve Architectural Objects Approve AO and Approve/Releas e Usage Objects Check Business Partner Lease Processor Lease Approver Financial Accounting Senior User Financial Accounting Senior User Financial Accounting Senior User Create /Update Sales based Lease-out Approve Leaseout Execute Salebased Settlement Periodic Posting: Simulation, Execution and Reversal Invoice: Create & Reversal Steps performed in Umoja ECC 141

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 Planner Facilities Planner Lease Processor Create Architectural and Usage Objects Create Pooled Space Extract Rental Space Approve Architectural Objects Approve AO and Approve/Releas e Usage Objects Check Business Partner Lease Processor Lease Approver Financial Accounting Senior User Financial Accounting Senior User Financial Accounting Senior User Create /Update Sales based Lease-out Approve Leaseout Execute Salebased Settlement Periodic Posting: Simulation, Execution and Reversal Invoice: Create & Reversal 142

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 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 3 Select Real Estate 4 Click the Create icon 3 4 143

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 The steps which are different are listed below: Select the Type as Lease-out Sales Based on the Create Real Estate pop-up window 5 5 144

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 In the General Data tab, enter the required details in the following fields: 6 6 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 145

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 As detailed in the previous module, populate the following fields in the tabs outlined below: 7 In the Partners tab, enter required details in the following fields: UN Master Tenant UN Lease Processor UN Approver UN Contact Person, if applicable 8 In the Term tab enter required details in the following fields: Start Date Cash Flow From 1 st End Date 9 In the Objects tab enter required details in the Rental Objects field 7 8 9 146

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 In the Posting Parameters tab: 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 10 147

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 On the Conditions tab, select the Sales- Based Rent condition. This is required to capture the calculated rent based on the sales reported by the tenant and reporting rules defined in the Sales-Based Rent Agreement tab of the contract 11 11 Repeat this step for any additional conditions, if required. 148

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 Sales and Reporting rules are important for Sales-based Lease-outs. Click the Sales-Based Rent Agreement tab to add and assign these rules 12 12 149

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 Click the Fast Entry icon and populate the following fields: 13 Sales Rule Name: The name of the Sales rule Valid From: The date of the first day that sales-based rent can be collected Type of Sales Rule: This value will default Sales Type: The type of sales on which salesbased rent will be collected 13 150

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 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 salesbased 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 151

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 If the Sales Grading Type is Sales Grading Agreement, then populate the following fields: 14 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 14 152

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 There is an optional step in which the Lease Processor may attach relevant documents to the related Lease. The steps to attach documents are standardized in Umoja, as all attachments are centrally managed via the Umoja Document Management tool 17 17 Note: Selected features of the steps to upload relevant Lease Administration documents may be modified during Umoja Foundation Deployment. Those changes will be communicated to you via Job Aids and How-to-Guides (as considered appropriate). 154

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: Enter RE80 in the Command field to display the contract 1 Click the Display <-> Change icon 2 Click the Overview tab 3 Select Account Sheet or Invoices to review any financial activity on the contract 4 2 4 3 156

Sales-based Settlement Create Sales-based Lease-out Update Salesbased Lease-out Sales-based Settlement Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 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: 1 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 1 2 4 157

Sales-based Settlement Create Sales-based Lease-out Update Salesbased Lease-out Sales-based Settlement Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 2 Populate the following fields: Company Code: 1000 is the Company Code used in Umoja from and to: This allows you to run the sales-based settlement for multiple contracts by entering a range of contract numbers 2 158

Sales-based Settlement Create Sales-based Lease-out Update Salesbased Lease-out Sales-based Settlement Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 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 159

Sales-based Settlement Create Sales-based Lease-out Update Salesbased Lease-out Sales-based Settlement Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 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. 160

Periodic Posting: Summary The steps for Periodic Posting, Simulation for a Sales-based Lease-out are the same as the steps in the External and Internal Lease-out Periodic Posting Simulation process. 162

Periodic Posting, Simulation, Execution & Reversal Create Sales-based Lease-out Update Salesbased Lease-out Sales-based Settlement Periodic Posting, Simulation, Invoice Simulation All the steps would remain the same for Periodic Posting, Simulation. Some of the steps are mentioned in the subsequent slides. 163

Periodic Posting, Simulation, Execution & Reversal Create Sales-based Lease-out Update Salesbased Lease-out Sales-based Settlement Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse 1 For executing the simulation, click the Execute icon or go to Program > Execute 164

Periodic Posting, Simulation, Execution & Reversal Create Sales-based Lease-out Update Salesbased Lease-out Sales based Settlement Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse The first screen to appear will display a summarized listing of the run results. 2 Select the Documents icon which will show a popup from which you can navigate and display the financial documents simulated For example: 165

Create Invoice: Summary The steps for Invoice Simulation for a Sales-based Lease-out are the same as the steps in the External and Internal Lease-out Invoice Simulation process. 166

Invoice: Create & Reverse Create Sales-based Lease-out Update Salesbased Lease-out Sales based Settlement Periodic Posting, Simulation, Execution & Reversal Invoice: Create & Reverse All the steps would remain the same for Invoice simulation one of the steps is shown below. 167

Activity 3 Transaction Name: Create Sales-based Lease-out Transaction Code: RE80 Link to the uperform simulation: http://unsapuperform.umoja.un.org/gm/folder- 1.11.4542?mode=EU 168

Activity 2 Transaction Name: Sales-based Settlement Transaction Code: RESRSE Link to the uperform simulation: http://unsapuperform.umoja.un.org/gm/folder- 1.11.4550?mode=EU 169

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 170

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. 171

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

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: Lease Administration Reporting Course Summary Course Assessment Course Survey 173

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

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 Processor Create Lease Approve Lease Additional Steps Based on Type of Lease Steps performed in Umoja ECC 175

Approve a Create Lease Approve Lease Additional Steps Based on Type of Lease When the lease is saved by the Lease Processor, an email 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 email. An email is sent to the Approver s SAP inbox containing the links for the following activities: Approve Reject Display the contract 176

Approve a Create Lease Approve Lease Additional Steps Based on Type of 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

Approve a Create Lease Approve Lease Additional Steps Based on Type of Lease 2 Click the Display icon for the inbox message to review the required contract 2 After reviewing the contract, click the Back icon to return to the inbox 3 178

Approve a Create Lease Approve Lease Additional Steps Based on Type of Lease 4 Select the Workflow icon next to the contract that needs to be approved or rejected 4 179

Approve a Create Lease Approve Lease Additional Steps Based on Type of Lease 5 Click the Display button to open the contract 5 180

Approve a Create Lease Approve Lease Additional Steps Based on Type of Lease 6 Navigate through the required tabs and review the contract details 6 181

Approve a Create Lease Approve Lease Additional Steps Based on Type of Lease 7 After the contract is reviewed, click either the Approve or Reject button, as appropriate 7 Note: If the Reject button is clicked, a reason must be entered in the text field. 182

Approve a Create Lease Approve Lease Additional Steps Based on Type of Lease 8 The Lease Processor needs to open the email to confirm receipt of the Approver's actions on the contract that was reviewed. It does take a few minutes for the workflow message to show up in the Lease Processor s email and SAP inbox. The status of the workflow can be seen on the contract by clicking the Services for Object icon and selecting Workflow > Workflow overview 183

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. 185

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 186

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: Approvals Module 7: Lease Administration Reporting Course Summary Course Assessment Course Survey 187

Module 7 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 188

Access Umoja ECC Lease Administration Reports Run Transaction Code re80 Navigate RE Navigator Folder Structure Select and Generate Appropriate Report 1 2 3 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: Enter RE80 in the Command field Click the Enter icon Click the Information Systems tab in the left hand menu of the RE Navigator Select the appropriate (ie Overview) 4 4 0 3 2 1 189

Access Umoja ECC Lease Administration Reports 5 Click the Display Filter icon Check the filter to apply to your query 6 Run Transaction Code re80 Run transaction code RE80 Navigate RE Navigator Folder Structure Select and Generate Appropriate Report 5 6 4 5 190

Access Umoja ECC Lease Administration Reports Run Transaction Code re80 Navigate RE Navigator Folder Structure Select and Generate Appropriate Report 1 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 4 1 2 2 3 Open the folder Select Authorization Group from the drop down menu 3 4 Click Copy selected button 191

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 7 5 6 6 192

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 8 9 10 193

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 11 12 194

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 195

Access Umoja ECC Lease Administration Reports Run Transaction Code re80 Navigate RE Navigator Folder Structure Select and Generate Appropriate Report Other samples of Standard Portfolio reports is available under the Controlling folder 1 Run transaction code RE80 1 196

Access Umoja ECC Lease Administration Reports Run Transaction Code re80 Navigate RE Navigator Folder Structure 4 Complete the necessary fields and then press Execute Select and Generate Appropriate Report Run transaction code 4RE80 4 5 197

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. 4 5 6 198

Module 7 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 199

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: Lease Administration Reporting Course Summary Course Assessment Course Survey 200

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 201

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: Approvals Module 7: Lease Administration Reporting Course Summary Course Assessment Course Survey 202

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 203

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: Approvals Module 7: Lease Administration Reporting Course Summary Course Assessment Course Survey 204

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 205

Congratulations! You have successfully completed the Lease Administration Process course. 206

CS324 Umoja Lease Administration Process. Umoja Lease Administration Process Version 16 1