Security Deposits – Oracle Property Manager

Security deposit is basically a one time fixed amount of money paid to a property manager or landlord that ensures the tenant pays rent and follow the lease as per the agreement between lessor and lesse. Once the lease is expired or terminated security deposit will be refunded as per agreement.

In Oracle Property Manager while defining a payment or billing term there is no specific functionality for security deposit and this has to be achieved via one time payment or billing term.The start and end dates will be the same, with the Target Date the date on which this pays out.
Post IFRS Compliance with security deposit accounting will be at Payables as well as at Oracle Property Manager.

For entering security deposits below steps needs to be performed

1.  Create a lease, which is going to host the security deposit payment for the duration of the lease.

2.  Enter the cash outflow on the first day as positive amount and the cash inflow on the last day as negative amount.

3. After finalizing the above lease, the BOOKING transaction for the lease gets generated with total amount.

4. Approved and Exported the two payments – Cash Outflow Positive Payment and Cash Inflow Negative Payment in Property Manager.

5. Subsequently after approving and exporting from property Manager, the invoices will be imported in Payables, Validated and account the invocie.

6. ‘Transfer Normalized Lines to GL’ program has to be run to recognize accruals.

Full Accounting for the entire security deposit lifecycle

a. Booking

b. Full Accrual (All Accruals)

c. Invoice Accounting

Beginning (Cash Outflow)

End (Cash Outflow)