PDC Management – Functional Specifications Document

Document Name PDC Management– Functional Specification

Document Version Version 1.0
Preparer Adnan Yousuf

Reviewer 1 Syed Ali Zaman

Reviewer 2 Shabbir Hussain

Approver Anwar Atari

Table of Contents
1 Introduction ...........................................................................................................3
1.1 PDC Management and Functionality........................................................................................................... 3
1.2 Document Purpose ...................................................................................................................................... 3
1.3 Abbreviations Used ..................................................................................................................................... 3
2 Business Requirements ...........................................................................................4
2.1 Business Drivers........................................................................................................................................... 4
2.2 Detail Business Requirement ...................................................................................................................... 4
3 Functional Design / Detailed Requirements ............................................................5
3.1 Functional Design Overview ........................................................................................................................ 5
3.2 Process Flow Diagram ................................................................................................................................. 5
4 Assumptions ...........................................................................................................9
4.1 Business Assumptions ................................................................................................................................. 9
4.2 Oracle Application set up Assumptions....................................................................................................... 9
5 Data Migration Strategy ......................................................................................10
6 Data Flow Diagram ..............................................................................................11
7 Open Issues ..........................................................................................................12
8 Closed Issues ........................................................................................................13

Page 2 of 13
1 Introduction
Collection of PDCs is a typical business practice, especially in UAE. In Oracle, there is no standard solution to
address this process. In the absence of a PDC Solution AGI is invoicing the Tenants for the complete Lease
tenure, create future dated receipts against the PDCs and apply these receipts against future dated invoices.
Invoicing for future period leads to complications especially in case Pre-Mature Termination of the Lease,
reversing future dated invoices/receipts and proper accounting can be very cumbersome process. For variety
of scenarios a consistent procedure cannot be followed in billing methods.

Having a PDC solution will enable user to manage PDC effectively with better control on different statuses.
Auto creation of AR Receipts and application on AR Invoices / Credit Memos will reduce the efforts required
for manual receipt creation and application. User will focus on reconciliation reports generated as a result of
schedule processes and do required corrections (if required) in Oracle AR.

1.1 PDC Management and Functionality

PDC solution will help streamline the receipt creation and application process. Following are the key
functionalities which will help business to run their day to day operations smoothly and effectively;
1. Tracking of PDCs for the identifications of reversals, bounced, replaced, remitted, and cleared PDCs.
2. Lease billing schedule linked with relevant PDCs or Manual AR Invoices with validation.
3. Auto creation of AR Receipts based on PDC maturity dates.
4. Auto application of AR Receipts on Invoices transferred from Property Manager as a routine process.
5. Transfer Manual AR Invoices to Oracle AR.
6. Auto application of AR Receipts on Manual Invoices transferred.

1.2 Document Purpose

Provides the detailed solution to enable the to-be processes defined in terms of addressing the pain points,
requirements of current State operations of Post Dated Cheques and Application on AR Invoices/Credit Memos
in AGP.

1.3 Abbreviations Used

The following abbreviations, Oracle terms and terminology have been used throughout this document

Abbreviation Explanation

PDC Post Dated Cheques

AR Account Receivables
CM Credit Memos

Page 3 of 13
2 Business Requirements

2.1 Business Drivers

Collection of PDCs is a typical business practice, especially in UAE. In Oracle, there is no standard solution to
address this process. In the absence of a PDC Solution AGP is invoicing the Tenants for the complete Lease
tenure, create future dated receipts against the PDCs and apply these receipts against future dated invoices.
Invoicing for future period leads to complications especially in case of Pre-Mature Termination of the Lease,
reversing future dated invoices/receipts and proper accounting is very cumbersome process. For variety of
scenarios a uniform procedure cannot be followed in billing methods. Having a PDC solution will help
streamline the billing process.

2.2 Detail Business Requirement

Following are the business requirements for PDC Management
1. Provision to enter all type of payments received from Tenants/Customers with maturity dates against
a Lease Contracts. It could be Cheques, Cash, Credit Card Payments, PDCs and Bank Transfers etc.
2. Cheques given by Tenants/Customers for Security Deposit or any other type of Deposit should be
entered in PDC Solution.
3. Link all the payments received with relevant lease billing lines to have control on received and due
payments. There should be validation mechanism in the system which will highlight the cases where
billing lines not linked properly with the associated payments.
4. Link payments received against Manual AR Invoices created for Lease contracts. Manual AR Invoices
could be for Penalties, Legal charges, Data Conversion invoices or any other charges
5. Auto creation of AR Receipts for the cases where PDC receipt is not yet created in Oracle AR. (Basis for
creating AR Receipts is a maturity date)
6. AR Receipt application on AR Invoices/Credit Memos created against the Lease Billing lines or Manual
AR Invoices.
7. Reporting requirements covers;
a. PDC acknowledgement report
b. PDC in hand report for reconciliation
c. Track Lease billing lines not linked with any type of Receipts/PDC

Page 4 of 13
3 Functional Design / Detailed Requirements

3.1 Functional Design Overview

The process flow describes the steps related to handling and tracking PDCs, Link it with Lease billing lines or
Manual AR Invoices/Credit Memos, Invoicing on due dates, Creation of AR Receipts on maturity dates and also
receipt application to the Invoices/Credit Memos.

3.2 Process Flow Diagram

PDC Management
This process covers PDCs Management from Entry till creation of AR Receipts and application on AR Invoices
Legend
Property Leasing

Oracle R12
Enter Lease Receive Cheques Custom PDC Solution
Contract in from Tenant and Manual
Start
Oracle Property Send it to
Manager Finance

PDC acknowledgement
report, handover to
Tenant

No

Enter/Update PDCs
Sort out all received
details and link it Run PDC Are PDCs linked
PDCs for the day
with relevant acknowledgement correctly with Lease Yes
and submit into
Property Lease repor Billings
remittance bank(s)
Property Finance

billings

Following key details will be entered

against each PDC Execute/Schedule
Process to validate links between Following programs will be
- Cheque Numbers PDC and Lease Billing lines. Processes on
scheduled;
- Received Date Generate Output files for the predefine frequency
- Auto Invoice Master Program
- Maturity Date validation results. (Daily or Monthly)
- Receipts creation for matured and
- Remittance Bank Change PDC status from DRAFT validated PDCs
- Receipt Method to VALIDATED for the validated - Receipt application on AR Invoices
- Amount (Incl VAT) records created against Lease Billing lines
- Property Billings Lines with applied
linked with PDCs
amount for the entered PDCs

End

Page 5 of 13
 Role
Process Process performing
Process Step To-Be Solution
Step ID Step Type the
process
PDC 1.1 Enter Lease Contract in Standard Leasing 1. Process Pre Requisite: NA
Oracle Property Manager
2. Process Input: Lease Details
3. Process Output: LA & Unit History
4. Process Frequency: As & when a
New Lease is created.
5. Accounting Entries: None
6. Scenario: Manage PDCs
PDC 1.2 Receive cheques from Manual Leasing 1. Process Pre Requisite: NA
Tenant/Customer
2. Process Input: Lease Details
3. Process Output: Received
Cheques
4. Process Frequency: As & when
required.
5. Accounting Entries: None
6. Scenario: Manage PDCs
PDC 1.3 Enter/Update PDC Details Custom Finance 1. Process Pre Requisite: NA
and link it with relevant
2. Process Input: Cheques against
Property Lease billings.
Following key details will be Property Lease Billings
entered against each PDC 3. Process Output: Stored Cheque
- Cheque Numbers
details
- Received Date
- Maturity Date 4. Process Frequency: As & when
- Remittance Bank required.
- Receipt Method 5. Accounting Entries: None
- Amount (Incl VAT)
6. Scenario: Manage PDCs
- Property Billings Lines with
applied amount for the
entered PDCs

Page 6 of 13
PDC 1.4 Print acknowledgement and Custom Finance 1. Process Pre Requisite: NA
hand over to tenant
2. Process Input: Cheques against
Property Lease Billings
3. Process Output: Applied Receipts
4. Operational Report ID: This will be
custom Report.
5. Process Frequency: As & when
required.
6. Accounting Entries: None
7. Scenario: Manage PDCs
PDC 1.5 PDCs linked correctly with Custom Finance 1. Process Pre Requisite: NA
Lease billings?
2. Process Input: Cheques against
Process to validate links
between PDC and Lease Property Lease Billings
Billing lines. Generate 3. Process Output: Cheque
Output files for the Validation Results
validation results. Change
4. Process Frequency: As & when
PDC status from DRAFT to
VALIDATED for the validated required.
records 5. Accounting Entries: None
6. Scenario: Manage PDCs
PDC 1.6 Sort cheques and forward to Manual Finance 1. Process Pre Requisite: NA
bank
2. Process Input: Collected Cheques
3. Process Output: Sorted and sent
to bank
4. Process Frequency: As & when
required.
5. Accounting Entries: None
6. Scenario: Manage PDCs

Page 7 of 13
PDC 1.7 Execute/Schedule processes Custom Finance 1. Process Pre Requisite: NA
on predefine frequency
2. Process Input: Validation of
(Daily or Monthly).
Following programs will be Cheques against Property Lease
scheduled; Billings
- Auto Invoice Master
3. Process Output: AR Receipt
Program
- Receipts creation for Creation and Application on AR
matured and validated PDCs Invoices/Credit Memos
- Receipt application on AR 4. Process Frequency: As & when
Invoices created against
required
Lease Billing lines linked with
PDCs 5. Accounting Entries: Oracle AR
Standard Accounting
6. Scenario: Manage PDCs

Page 8 of 13
4 Assumptions
4.1 Business Assumptions
SN Assumption

1 Lease Contract will be entered in Oracle Property Manager prior to entering data in PDC
If PDC value will be inclusive of Tax then business user has to enter tax percentage for applicable
billing lines. It is required to match the billing lines value with PDC value otherwise system will not
2
validate the record. Records in Un-Validated status wouldn’t transfer to AR for Receipt Creation and
AR Invoices/Credit Memos applications.

4.2 Oracle Application set up Assumptions

SN Assumption

1 It is a custom solution hence Oracle Application setup wouldn’t be required.

Page 9 of 13
5 Data Migration Strategy
1 Creation of Negative Billing Lines in Property Manager Module to record the Credit Memos against the
existing AR Invoices created in Future Periods.
2 Creation of Negative lines in Custom table to record the Credit Memos against existing Data Migration
manual AR Invoices created in Future Periods.
3 Replication of Outstanding PDCs exists in Oracle AR along with the Applied AR Invoices/Credit Memos
with PDC Management Solution.
4 Linking of Property Billing Lines and Data Migration AR Invoices created in Point # 1 and 2 with PDCs in
Point # 3.
5 Auto Creation and Application of Credit Memos against the Billing Lines and Data Migration AR Invoices
created in Point # 1 and Point # 2.
6 Creation of Positive Billing Lines in Property Manager Module for recording of Positive AR Invoices against
the Credit Memos created in Point # 1.
7 Creation of Positive Lines in Custom table for recording of Positive Data Migration AR Invoices against the
Credit Memos created in Point # 2.
8 Linking of Property Billing Lines created in Point # 6 and Point # 7 with PDCs in Point # 3.

Page 10 of 13
6 Data Flow Diagram

Data Flow Diagram

This process depicts data flow between Oracle standard Modules and PDC Management Solution
Oracle Property Manager

Start Lease Contract Lease Contract includes entry for

1. Lease Terms
2. Unit Number with Tenant Details
3. Billing Details as per Ejari Contract
4. Notes/Remarks (If any)
PDC Management

PDC Entry includes;

PDC Entries 1. Header details ( Lease Contract and Customer details )
2. Payment Cheques / Cash / Transfers etc. with relevant details
3. Billing lines linked with Payments
4. Manual AR Invoices (if any) linked with Payments
5. Process to transfer data in AR (Receipt creation and application)
Oracle Account Receivables

AR Receipt
1. AR Receipt creation through an automated process
2. AR Receipt application through an automated process
Creation & End
Application

Page 11 of 13
7 Open Issues
No Description Severity Assigned To To be Resolved by
1
2
3
4
5

Page 12 of 13
8 Closed Issues
No Description Severity Assigned To Resolution
1
2
3
4
5

Page 13 of 13