Approval Status of Lease in Oracle Property Manager

A lease can have either Draft or Final approval status. The approval status of the lease determines what actions you can take regarding two areas of the lease abstraction process: making changes to the lease and generating payments and billings.

• Changes to the Lease: If the lease is in draft status, you can modify, delete, or add to the existing lease information. If the lease is in final status, you cannot make changes to the lease unless you perform an edit or create a lease amendment.

• Payment and Billing Schedules: When you enter payment or billing terms in the Leases window and change the lease approval status from Draft to Final, you initiate the process that creates scheduled payments or scheduled billings. 

Lease Statuses

The lease status describes the position of the lease in the lease life cycle. Oracle Property Manager provides the following lease statuses:

• Active: Signifies that the lease is within the agreed lease term.
• Holdover: Signifies that the tenant retains possession of leased property after the lease expires. The landlord, by accepting rent, agrees to the tenant's continued occupancy. 
• Lease Ordered: Signifies that the landlord and tenant have committed to the general terms of a lease. However, they have not finalized the lease because of certain open issues. You can make or receive one time non-normalized payments, such as security deposits.
• Month-to-Month: Signifies that the tenant leases the property for one month at a time. You can create a new lease in this status. However, this status is used most commonly when a lease expires and the landlord and tenant have not finalized a new agreement to continue the tenancy.
• Signed: Signifies that the landlord and tenant have signed the lease. However, certain pending issues may prevent you from finalizing the lease. As in the case of the Lease Ordered status, you can make or receive one-time non-normalized rent payments. 
• Terminated: Signifies that the lease agreement has ended.

Using the Lease Ordered and Signed Lease Statuses

• Use the Lease Ordered (LOF) and Signed (SGN) lease statuses to schedule payments or billings and transfer transactions to Oracle Payables or Oracle Receivables before you finalize the lease. To finalize the lease, you must also change the Approval Status of the lease. 
• When you save a lease with a status of LOF or SGN, Oracle Property Manager creates schedules and items for all one-time non-normalized terms.
• Accounting guidelines state that you cannot normalize payment or billing terms until you finalize a lease. Accordingly, Oracle Property Manager does not normalize terms while a lease is in SGN or LOF lease status.

• Oracle Property Manager runs the Schedules and Items concurrent program each time you create one-time payment or billing terms. After you save your work, the limitations for modifying terms in a finalized lease apply to modifying these one-time lease terms. 
• In other respects, the lease functions as a draft lease. Therefore, you can freely edit other lease attributes, including the lease commencement date and the attributes of the other lease terms.
• If you change the lease commencement date, Oracle Property Manager does not automatically change the dates for any of the lease terms.