ORACLE E-BUSINESS SUITE RELEASE CONTENT DOCUMENT

Release 12.1 Asset Lifecycle Management (ALM)

Prepared by EBS Product Management & Strategy

Last Updated: Version:

June 23, 2008 Pre-Release 4.0

Copyright 2008 Oracle Corporation All Rights Reserved

Table of Contents

1. 2.
2.1. 2.2.

Disclaimer Introduction
Purpose of Document Reference Documents

1 2
2 2

3.
3.1.

New and Changed Features in Asset Lifecycle Management

Oracle Asset Tracking
3.1.1. Overview 3.1.2. Features 3.1.2.1. Multiple Asset Book Support 3.1.2.2. Graphical Display of Network Relationships

3
3
3 3 3 3

3.2.

Oracle Enterprise Asset Management

3.2.1. Overview 3.2.2. Features 3.2.2.1. Asset Move Workbench 3.2.2.2. Miscellaneous Usability Enhancements 3.2.2.3. Express Work 3.2.2.4. Make Item Cross Reference Search Capability 3.2.2.5. Specify Source Supply Subinventory for eAM Work Orders 3.2.2.6. Microsoft Project Integration with Work Order Scheduling 3.2.2.7. Graphical Display of Network Relationships 3.2.3. Terminology

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4 4 4 5 6 6 6 6 7 7

3.3.

Oracle Property Manager

3.3.1. Overview 3.3.2. Leasing Features 3.3.2.1. New Lease Statuses 3.3.2.2. Lease Extension Enhancements 3.3.2.3. Tenancy Extension and Contraction 3.3.2.4. Assignment Occupancy Percent Determined by Attribute on Tenancy 3.3.2.5. Multiple Schedules for Same Schedule Day 3.3.3. Variable Rent Features 3.3.3.1. Breakpoint Flexibility 3.3.3.2. Updating Breakpoints 3.3.3.3. Natural Breakpoint Enhancements 3.3.3.4. Early Termination of Agreement or Lease 3.3.3.5. Extension of Variable Rent Agreements 3.3.3.6. New Calculation Methods 3.3.3.7. New Partial Year Calculation Methods 3.3.3.8. Month-to-Month Roll Forward of Variable Rent Agreements 3.3.3.9. Enhancement to Cumulative Calculation Method 3.3.3.10. Allowances and Abatements 3.3.3.11. Carry Forward of Excess Abatement as Negative Rent 3.3.3.12. Constraints

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3.3.3.13. Updating Volumes 3.3.3.14. Additional Frequency Attribute 3.3.3.15. Streamlining of Adjustments 3.3.3.16. Form Enhancements 3.3.3.17. Display of Calculation Results 3.3.3.18. Variable Rent Templates 3.3.3.19. Term Template Enhancements 3.3.3.20. Processing by Property 3.3.3.21. Improved Variable Rent Report 3.3.4. Index Rent Features 3.3.4.1. Early Termination of Rent Increase Agreements 3.3.4.2. Extension of Rent Increase Agreements 3.3.4.3. Month-to-Month Roll Forward 3.3.4.4. Index Multiplier 3.3.4.5. Proration 3.3.4.6. Term Length 3.3.4.7. Include/Exclude Option 3.3.4.8. Recurring Backbill Terms 3.3.4.9. Rent Increase Report 3.3.5. Operating Expenses Features 3.3.5.1. Create Operating Expense Agreement 3.3.5.2. Enter and Maintain Estimated Payment Terms 3.3.5.3. Reconciliation 3.3.5.4. Operating Expense Agreement Dashboard

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1.

Disclaimer
This Release Content Document (RCD) describes product features that are proposed for the specified release of the Oracle E-Business Suite. This document describes new or changed functionality only. Existing functionality from prior releases is not described. It is intended solely to help you assess the business benefits of upgrading to the specified release of the Oracle E-Business Suite. This document in any form, software or printed matter, contains proprietary information that is the exclusive property of Oracle. Your access to and use of this confidential material is subject to the terms and conditions of your Oracle Software License and Service Agreement, which has been executed and with which you agree to comply. This document and information contained herein may not be disclosed, copied, reproduced or distributed to anyone outside Oracle without prior written consent of Oracle. This document is not part of your license agreement nor can it be incorporated into any contractual agreement with Oracle or its subsidiaries or affiliates. This document is for informational purposes only and is intended solely to assist you in planning for the implementation and upgrade of the product features described. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described in this document remains at the sole discretion of Oracle. Due to the nature of the product architecture, it may not be possible to safely include all features described in this document without risking significant destabilization of the code.

E-Business Suite Release 12.1 Release Content Document

Purpose of Document

2.

Introduction
2.1. Purpose of Document
This Release Content Document (RCD) communicates information about new or changed functionality introduced in the Oracle E-Business Suite Release 12.1. Existing functionality in R12.0, R12.0.x Release Update Packs (RUPs), or prior releases is not described in this document. For a complete overview of all new functionality included in R12 and subsequent Release Update Packs, this document should be read in conjunction with the base product RCDs published with Release 12.0.0 and subsequent Release Update Packs (RUPs). These RCDs can be found on MetaLink: Release Content Documents for EBusiness Suite R12, MetaLink Note 404152.1.

2.2.

Reference Documents
Name Release Content Documents for E-Business Suite R12 Location MetaLink Note 404152.1 Completion Date January 8, 2007

E-Business Suite Release 12.1 Release Content Document

Purpose of Document

3.

New and Changed Features in Asset Lifecycle Management

3.1. Oracle Asset Tracking
3.1.1. Overview
Oracle Asset Tracking is an asset lifecycle management application that provides tracking, visibility and control of dispersed assets for capital-intensive companies. Oracle Asset Tracking maximizes asset utilization and return on investment by automatically synchronizing the operational and physical events of assets with the financial updates in Oracle Assets. As part of the Oracle E-Business Suite, Oracle Asset Tracking offers tight integration with other products to provide a comprehensive, reliable and efficient asset lifecycle tracking application. This enterprise-wide integration helps achieve a single source of truth for enterprise assets while reducing the total cost of ownership.

3.1.2.

Features
3.1.2.1. Multiple Asset Book Support This release supports multiple Fixed Asset (FA) Book Types in Oracle Asset Tracking. Users are now able to create assets in appropriate FA Books depending upon the Operating Unit or organization context. The list of FA books that may be available for an operating unit will be automatically filtered. This will eliminate the need for intelligent set up and users will no longer encounter issues like non-compatible chart of accounts. Support for Multiple Asset Books is essential for global rollouts. 3.1.2.2. Graphical Display of Network Relationships This feature enhances the usability of Asset Configuration relationships by providing graphical representation of instance relationships, contacts, accounts, etc which are frequently used by Oracle Asset Tracking users. Oracle Asset Tracking supports various types of relationships by way of configuration built across instances. Prior to this release, the configurations were displayed in the form of table, which is filtered based on relationship types. This supports configuration with an alternate view option, which gives a graphical representation of instance configuration. The user interface is also interactive in that you can update the relationships such as add a child. Organizations have complex data stored in databases or web sites, related to organization structure, processes, and other complex relationships. It is important to support visualization and navigation of this complex data, including organizational hierarchies, partner and sales relationships, workflow modeling, and even web site access in order to improve the user experience.

E-Business Suite Release 12.1 Release Content Document

Oracle Asset Tracking

3.2.

Oracle Enterprise Asset Management

3.2.1. Overview
Oracle Enterprise Asset Management (eAM) supports sophisticated, condition-based maintenance strategies for property, plants, and public infrastructure. Oracle eAMs single-instance design ensures best practices and quality compliance globally, eliminates excess and obsolete spare parts inventories, promotes environmental, health and safety policies, smooths coordination of production and maintenance schedules, and improves both the responsiveness and accuracy of contracted maintenance.

3.2.2.

Features
3.2.2.1. Asset Move Workbench Release 12 supports the ability to move Assets. This new feature provides a userfriendly way of leveraging this Asset Move feature. The workbench allows users to transfer an Asset and its child assets from one maintenance organization to another as a single unit: the parent child asset relationships are preserved. The following entities move along with the Asset as of Release 12.0: Activities (assuming the Activity Definition is assigned to the destination organization. If not, you will need to use the Activity workbench to assign an activity to the new organization.) PM Schedules Meters Failure History and Setup

The following entities do not move: Work Orders Routing Cost History Collection Plans

The Asset Hierarchy may have to be manually adjusted after the move and can be done so from the Asset Hierarchy page or the new Graphical Network Page. Prior to this release, the support for this process was cumbersome especially when an Asset had a complex asset hierarchy; it didnt respect the Asset Hierarchy so the user had to perform a separate transaction for the associated child (or children), otherwise the child asset(s) was orphaned in the source organization. This feature will be limited to support Inter-Org Asset Move and Sub-Inventory Asset Move with or without the child assets.

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Oracle Enterprise Asset Management

Many customers need to move Assets from one Organization (often a different location) to another Organization for different reasons including to replace a failed asset or to borrow an asset for a particular job or project. This is most common in industries such as fleet operations, asset rental environments or where organizations share assets. This feature will enhance the transactability of Assets by minimizing the dependency on the Inventory user interface to carry out Asset transfer transactions. 3.2.2.2. Miscellaneous Usability Enhancements The following includes a number of enhancements to improve overall usability of the system: 3.2.2.2.1. Change Dept on WO Operation

This feature provides the ability to change the Department on a Work Order Operation prior to Work Order execution. This enhancement will provide more flexibility for assigning resources when scheduling Work Orders. 3.2.2.2.2. Inclusion of Child Asset Work Orders in Asset Search

The inclusion of child Asset Work Orders on Work Order Inquiry by Asset Simple Search screen. This feature will provide for more flexibility in searching for Work Orders. 3.2.2.2.3. Enhance the PM schedule definition to add two additional attributes

Two fields have been added to the PM schedule definition: 'Last Reviewed Date' and 'Reviewer'. These attributes will help support and execute Reliability Centered Maintenance (RCM) programs. 3.2.2.2.4. Add Creation By and Created Date to Work Order Advanced Search

Two fields have been added to the Work Order Advanced Search screen. This feature provides for more flexibility in searching for Work Orders. 3.2.2.2.5. Generate Next PM Only

This feature includes a new field (check box) on the PM Schedule Definition screen: Next Work Order Only. By checking this box, the PM Scheduler will create the next Work Order only if the previous Work Order has been completed. Some less critical assets may not require creation of more then one Work Order until the last Work Order is completed. 3.2.2.2.6. Copy Asset Number to Requisition Approver Notes

This enhancement supports copying the Asset Number from the Work Order to Purchase Requisition Note to Approver. This provides additional clarity for the Purchase Requisition approver beyond the Work Order Number and Operation Number, which are currently available.

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3.2.2.3. Express Work This enhancement provides eAM users a quick way to report work that has been completed without any planning - often referred to as after-the-fact reporting. Users are able to (1) report and complete an emergency work without a prior Work Order and also (2) report labor, charge time, issue stocked items and complete the work all from a single page. While the aim of a Maintenance Department is to minimize reactive and emergency work, in the real world, maintenance crews are often called upon to perform emergency work that is due immediately. In such cases, no plan or definition of the work exists. The crew completes the work first and only later do they report the work. Some of the most transaction intensive process flows within the Maintenance world are performing material and labor transactions against a work order and completing the work order. Prior to this release, users had to navigate to different pages to charge time or material and to complete a work order. 3.2.2.4. Make Item Cross Reference Search Capability This feature provides users with the ability to search for Inventory Items by Manufacturer Part Number or item cross- reference from the Work Order Materials region and from the One Step Material Issue screen under the Stores tab. Manufacturer Part Numbers can be added to an Inventory Item via Item Master form. Inventory Items are added to an eAM Work Order for planning or issued directly to an eAM Work Order. Prior to this release, users could search for items by Item Number or Item Description. However, users often do not remember the Item Number/Item Description or will pick up items from the shelf. Often these parts do not have an Item Number marked on them and users struggle to find and add the right part required for the Work Order. The Manufacturer Part Number or cross-reference is often etched on the part. This enhancement will make it easier for the planners and the maintenance workers to add and use the right parts for an eAM Work Order 3.2.2.5. Specify Source Supply Subinventory for eAM Work Orders This release allows users to specify a Source Subinventory and Source Locator at the Bill of Materials level or the Work Order Material Requirement level. If Auto Request is set, material allocation will be initiated when the work order is released, and the Source subinventory and Source Locator will be automatically designated by Inventory sourcing rules. If Auto Request is not set, you can specify a Source subinventory and Source Locator for your material when you perform a Material Request or a One-Step Material Issue. For some customers, with multiple subinventories, these locations can be far apart, or even underground. The ability to specify a Source subinventory and Source Locator for Auto-Requested material is a significant need to ensure material is allocated from a subinventory and locator close to the work location and the pick ticket is printed in the correct location. 3.2.2.6. Microsoft Project Integration with Work Order Scheduling This enhancement integrates Microsoft Projects with Work Order Scheduling. The user can search a set of work orders based on various criteria, export it in the commonly
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accepted format XML, and import into MS Projects either by creating a new Microsoft Project or by adding the selected work orders into an existing Microsoft. On exporting the Work Order into Microsoft Project, the Maintenance Scheduler can schedule the work orders and on satisfactory completion of scheduling, convert the Microsoft Projects into an XML file, which can be imported back to eAM. In maintenance environments, Microsoft Project is one of the most commonly used scheduling tools, which provides flexibility to schedule complex project tasks with ease. The prime advantage of the 3rd party scheduling tool is it comes out with reasonable amount of out-of-box features like reports, printable format, etc that will help the Maintenance Scheduler perform their work efficiently. 3.2.2.7. Graphical Display of Network Relationships A Graphical Hierarchy is now available through Oracle eAM from the Asset screen. This feature enhances the usability of Oracle Asset Trackings Asset Configuration relationships by providing graphical representation of instance relationships, contacts, accounts, etc.. Oracle Asset Tracking supports various types of relationships by way of configuration built across instances. Prior to this release, the configurations were displayed in Oracle Asset Tracking in table form, which is filtered based on relationship types. This supports configuration with an alternate view option, which gives a graphical representation of instance configuration. Organizations have complex data stored in databases or web sites, related to organization structure, processes, and other complex relationships. It is important to support visualization and navigation of this complex data, including organizational hierarchies, partner and sales relationships, workflow modeling, and even web site access in order to improve the user experience. Often in maintenance there is a need to establish an alternate hierarchy of the organizations Assets to see potential upstream and downstream implications of an Asset failure.

3.2.3.

Terminology
Term
Asset Move

Definition
Asset Move is one form of sub-inventory transfer of an item. It is a process of moving or transferring between subinventory locations or moving between organizations without violating the rules setup at the organization level. Asset Move can be performed with or without its asset hierarchy. Sub-Inventory Transfer is one type of transfer of an asset. It is a process of moving or transferring between sub-inventory locations without violating the rules setup at the organization level. Asset Move can be performed with or without its asset hierarchy. (e.g.: from Stores to Spares)

Sub-Inventory Transfer

Emergency or Express Work

Within a maintenance organization, work is usually defined before it is released to the technicians for execution. The term emergency work order in this document refers to a maintenance job that is never defined in the system and was in response to some kind of an emergency situation. Work is often directly executed in such scenarios and later just reported into the system.

E-Business Suite Release 12.1 Release Content Document

Oracle Enterprise Asset Management

3.3.

Oracle Property Manager

3.3.1. Overview
Oracle Property Manager is the cornerstone of the real estate management solution provided by Oracle. Whether you are a corporate, commercial, or retail operation, Oracle Property Manager provides a comprehensive solution for managing your real estate portfolio efficiently. Oracle Property Manager streamlines space management and lease administration, and maximizes the value of your real estate by: Reducing costs and identifying new revenue opportunities Minimizing contractual and financial risk Providing data transparency

3.3.2.

Leasing Features
3.3.2.1. New Lease Statuses Two new statuses have been introduced for leases. The new statuses are Lease Ordered and Signed. These statuses are available when the lease approval status is Draft. When a lease has a status of Lease Ordered or Signed, schedules and items are created for any one-time payments. This allows users to create invoices or make payments from the lease, for terms with frequency of one-time only, before the lease is finalized. Users can use this new functionality for deposits or other payments that may be required before a lease is finalized. 3.3.2.2. Lease Extension Enhancements When the status is changed to Month-to-Month or Holdover and an extension date entered, the following things will now be done automatically: Recurring payment terms that end on the lease termination date will be extended to the new extension date. Users can choose to have variable rent and rent increase agreements extended. This is described further in the sections on Variable Rent and Rent Increase enhancements. Extensions of terms and agreements can be rolled forward month by month using a new concurrent process. The system extends existing normalized payment terms differently depending on the lease status. If the user changes the status from Active to Month-to-Month or Holdover, the system extends a normalized payment term ending on the old lease termination or extension date by adding a new non-normalized term rather than by changing the end date of the existing term. If the lease is later placed back in Active status, the term will be extended by addition of a new normalized term beginning on the amendment commencement date.

3.3.2.3. Tenancy Extension and Contraction When the user extends or contracts a lease, tenancy records (records on the locations tab of the lease) will be extended or contracted as well, as appropriate.

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Oracle Property Manager

3.3.2.4. Assignment Occupancy Percent Determined by Attribute on Tenancy A new field on the lease locations (tenancy) tab, Assigned % Area: determines the % Area value on the Customer Assignment, that is, it will determine what percentage of the location area is occupied by that customer. The default will be 100% 3.3.2.5. Multiple Schedules for Same Schedule Day Oracle Property Manager can create a new draft schedule, if needed, for a date with an existing approved schedule. This means you can create a new term with the desired schedule day in all cases

3.3.3.

Variable Rent Features

3.3.3.1. Breakpoint Flexibility Complete flexibility in setting up line items and breakpoint definitions has been introduced. With this feature, users can: Set up complex agreements with changes to breakpoints, rates, breakpoint types, line items, etc., occurring on any date, any number of times over the span of the lease. Enter line item and breakpoint details with any start and end date, not restricted to sales year start and end dates.

3.3.3.2. Updating Breakpoints Users can now change breakpoint definitions at any time, regardless of whether variable rent has been calculated and approved. To respond to amendments or to correct data, users can change most parts of a variable rent agreement. If the changes affect rent that has been approved, the application will create adjusting terms. 3.3.3.3. Natural Breakpoint Enhancements When the terms that form the basis for a natural breakpoint change, whether because of a rent increase or because a user added or ended a term, the system now automatically recalculates the natural breakpoints. The user can recalculate the variable rent; and if the changes affect rent that has been approved, the application will create adjusting terms. Users now select terms to form the basis for natural breakpoints using a new attribute on the term, allowing complete control over which terms are to be included. Users can now have rent increases, selectively, included in the natural breakpoint basis as the increases are assessed. 3.3.3.4. Early Termination of Agreement or Lease The user can now end variable rent agreements as of any date, either directly or by terminating a lease. The system will perform any recalculations necessary if variable rent has already been paid for affected periods and will create adjusting and/or reversing terms.

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3.3.3.5. Extension of Variable Rent Agreements The user can now extend the length of variable rent agreements, or have the system extend the agreement automatically when a lease is extended. The user also chooses whether to have the system automatically extend the latest breakpoint definitions when the agreement is extended or to manually enter the breakpoint definition detail for the extension period. 3.3.3.6. New Calculation Methods Two new calculation methods have been introduced for Variable Rent. Year-to-Date. The system determines overage by comparing the cumulative breakpoint with the cumulative sales (or other volume). True Up. The system calculates variable rent periodically through the year with a non-cumulative method and then does a True Up calculation at the end of the year (or other appropriate period).

3.3.3.7. New Partial Year Calculation Methods Several new methods (in addition to the existing Standard Proration) have been introduced to calculate variable rent in partial years at the beginning or end of an agreement. First Year. A partial first year variable rent is calculated based on the first 12 months of sales, effectively using some sales from the second year as proxy for the missing months in the first year. The resulting rent is prorated based on the actual length of the first partial year. Last Year. This is the equivalent of the First Year method, applied to partial last years. First Year / Last Year. If this Partial Year Method is selected, both the First Year and Last Year methods will be applied. Combined Year with Breakpoint Proration. The first partial year is combined with the second year. For cumulative and year-to-date methods, breakpoints and volumes continue to accumulate for more than 12 months. The breakpoints are effectively annualized because the period of breakpoint accumulation matches the period of volume accumulation. Combined Year without Breakpoint Proration. The first partial year is combined with the second year. A blended annual breakpoint is calculated for the combined period, converted to a 12-month value. This is used as the basis for breakpoints for all methods. Since the combined year is longer than 12 months, and the sales are accumulated for that longer period, the breakpoint accumulation is not matched to the volume accumulation and the breakpoint is not, in effect, annualized. No Proration. The breakpoints are used as entered, without proration. There is no interaction or combination between values in the first partial year and the second year.

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3.3.3.8. Month-to-Month Roll Forward of Variable Rent Agreements If a lease is in Month-to-Month status, the user can choose to automatically extend the variable rent agreement with each monthly roll-forward of the Month-to-Month extension. 3.3.3.9. Enhancement to Cumulative Calculation Method When the overage rate for calculation of variable rent changes mid-year, accumulation of volume recommences. Breakpoints are prorated to the length of the cumulative cycle determined by sales year end dates or rate changes. 3.3.3.10. Allowances and Abatements There are a number of enhancements related to allowances and abatements. Users can: Create multiple allowances with effective dates. Specify whether allowances or abatements are to be applied first. Select terms for recurring abatement at the time that agreements are created. Roll forward recurring abatement selections automatically and have the system apply abatements automatically as part of the variable rent calculation process. Enter amounts for fixed abatement. This is a new type of abatement. A fixed abatement is an amount entered by the user to be applied as abatement for each invoice period, much like the system applies the amount of recurring abatement terms each invoice period.

3.3.3.11. Carry Forward of Excess Abatement as Negative Rent Users can now control through an agreement parameter whether excess abatement amounts are treated as negative rent. 3.3.3.12. Constraints Users can now set start and end dates for constraints for the life of the agreement rather than setting them up for each year. 3.3.3.13. Updating Volumes Users can now update previously entered volume amounts through the Variable Rent Gateway, where previously the only way to do an adjustment was by entering an additional volume record (with a positive or negative adjusting amount). 3.3.3.14. Additional Frequency Attribute The attribute called Reporting Frequency in previous functionality determined two different frequencies, which sometimes should have had different values. This attribute has been split into two attributes: Calculation Frequency. The frequency with which variable rent is calculated. This was the primary purpose of the former Reporting Frequency.
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Reporting Frequency. The frequency with which the tenant is required to report volumes. This frequency does not affect calculations but does affect the logic by which the Variable Rent Gateway creates default volume entry rows.

3.3.3.15. Streamlining of Adjustments Users can now recalculate variable rent at any time, to accommodate for changed volume, breakpoints or other factors. The system will create adjusting terms if necessary. There is no longer a separate adjustment process. 3.3.3.16. Form Enhancements There have been many enhancements to layouts and navigation, decreasing the number of screens and improving usability. A number of multi-row views have been converted to folder blocks to allow for user configuration. Drilldowns have been added between the invoice review screen and the line item review screen. Multi-row views have been combined on a single screen with a master-detail relationship to reduce the number of screens and present information in a more intuitive layout.

3.3.3.17. Display of Calculation Results Users can review in detail, on-screen, the calculation that resulted in the variable rent amount, regardless of which method is used for the agreement. 3.3.3.18. Variable Rent Templates Users may select a variable rent template to populate many of the attributes of a variable rent agreement. This reduces data entry effort and error. 3.3.3.19. Term Template Enhancements Users can now create, edit and save term templates from within the variable rent agreement. Now, users can maintain a relatively small number of generic term templates to use as the starting point for term detail defaults for variable rent agreements. The user will select a generic term template then, if necessary, make a copy with changes specific to the agreement. 3.3.3.20. Processing by Property Property has been added as a parameter to the concurrent process for calculation of variable rent so that users can now select agreements by property for batch calculation. 3.3.3.21. Improved Variable Rent Report An improved report has been introduced for reporting calculated variable rent.

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3.3.4.

Index Rent Features

3.3.4.1. Early Termination of Rent Increase Agreements The user can now end rent increase agreements as of any date, either directly or by terminating a lease. The system will create adjusting and/or reversing items as necessary. 3.3.4.2. Extension of Rent Increase Agreements The user can now extend the length of rent increase agreements, or have the system extend the agreement automatically when a lease is extended. 3.3.4.3. Month-to-Month Roll Forward If a lease is in Month-to-Month status, the user can choose to automatically extend the rent increase agreement with each monthly roll-forward of the Month-to-Month extension. 3.3.4.4. Index Multiplier Users can now specify a multiplier to be applied for rent increases based on an index value. The amount specified is multiplied times the calculated change in the index amount and the rent is changed by the resulting value rather than by the actual index change percentage. 3.3.4.5. Proration The system will now prorate constraints on rent increase for partial years. 3.3.4.6. Term Length One compounding rent increase calculation method has been changed so that rent increase terms are created only for the length of the assessment period rather than to the end of the lease. This is appropriate for this method so that users now do not need to manually change the term lengths. 3.3.4.7. Include/Exclude Option A system option has been introduced that controls how terms are selected to form the basis for rent increases. With previous functionality, all terms of the selected type were selected by default for inclusion and users would deselect terms as appropriate. An organization now can choose whether terms are included or excluded by default. Users will still have complete control at the individual agreement level. 3.3.4.8. Recurring Backbill Terms An option has been introduced that controls whether backbill terms are created as onetime terms or as recurring terms. If they are created as recurring terms, the transaction date for all resulting schedules is set to the same date, which is the date that the term was approved.

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3.3.4.9. Rent Increase Report An improved report has been introduced for reporting calculated rent increases.

3.3.5.

Operating Expenses Features

This major new feature allows tenants to record in detail the lease clauses governing payment of operating expense reimbursements or recoveries (also known as common area maintenance expenses, etc.) to landlords. It also supports creating and changing estimated payment terms and periodic reconciliations. 3.3.5.1. Create Operating Expense Agreement Users can create an operating expense agreement for any lease clause governing the payment of rent based on landlord operating costs or common area maintenance costs. The agreement captures the key aspects of these agreements in a structured way that enables consistent recording of agreements across the portfolio and also supports the consistent and accurate reconciliation and desktop audit of landlord reconciliation statements. Aspects of agreements that can be recorded in a structured way include: All common ways of determining the pro rata basis for expense recovery, such as occupied area with floor Multiple pro rata bases within a single agreement Administration fees and anchor contributions Rules governing recovery of different expense groups or pools, within a single agreement, such as whether a type of expense is subject to fees or cap All common methods for calculating caps and minimums Different reconciliation frequencies Whether rent is subject to tax Stop amounts How reconciliation credits can be applied Standard expense group naming, for cross-portfolio comparisons Critical date rules, such as audit period and statement and payment due dates Extensive notes, by category

3.3.5.2. Enter and Maintain Estimated Payment Terms If the agreement requires the tenant to make estimated payments based on landlord budgets, the user can create the payment term through the Operating Expense Agreement. Estimated payment amounts are often adjusted by landlords annually or at other intervals. The user can enter new amounts through the Agreement and the system

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will create the appropriate term, including a catch-up term if needed. A history of the changing amount is thus captured and displayed, with percent change. 3.3.5.3. Reconciliation Reconciliation is created for each agreement for each reconciliation period. The user can record information from the landlord reconciliation statement and use the reconciliation screens as a workbench for doing a desktop audit of the reconciliation statement. Features include: Key entry, from the landlord reconciliation statement, of information not available to the user from other sources, such as actual landlord expenses. o Optional entry of the same items, in an Expected column, if the user has information that conflicts with the values presented by the landlord.

Presentation by the system of information that is known based on the Operating Expense Agreement, previous payments, and prior reconciliations, such as calculated cap amount, agreement fee percentage and amount already paid as estimated payments. o Optional entry of the same items in the Statement column, if the amounts on the landlord statement are not the same as expected.

Detailed presentation of the operating expense obligation calculation, in side-byside layout, showing the values from the landlord statement next to the values expected by the user. The calculation includes caps, fees, contributions, occupancy adjustments and stops, pro rata share calculation, and prior payment amounts. Presentation of the percent change over the prior period for each expense group, the total landlord expense, and the tenant share of expenses. Printable version of the detailed reconciliation analysis with side-by-side comparison. Simple creation of reconciliation payment term based on the bottom line of the reconciliation analysis, or simply the payment due amount on the landlord reconciliation statement. Flexible expense year dates, or reconciliation period dates, so that reconciliations can be done at irregular intervals if needed. Reconciliation notes and direct access to notes related to the agreement and to prior reconciliations. Maintenance of critical dates specific to each reconciliation, such as audit period end date. Tracking of reconciliation and audit status, and users responsible for each. Preservation of prior versions of a single reconciliation.

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3.3.5.4. Operating Expense Agreement Dashboard A dashboard presents agreements, reconciliations, and related payment terms that are likely to need attention, based on user-configurable selection criteria. The dashboard also has advanced query capability for searching for agreements, reconciliations and/or payment terms. Users can select existing objects for view or update, or can initiate creation of new agreements, reconciliations or payment terms from the dashboard.

E-Business Suite Release 12.1 Release Content Document

Oracle Property Manager

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