Cloud & Smarter Infrastructure Professional Certification...

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Cloud & Smarter Infrastructure Professional Certification Program

Study Guide Series

Exam C2010-506 - IBM TRIRIGA Real Estate V10.3 Application Consultant


Purpose of Exam Objectives .................................................................. 3

High-level Exam Objectives .................................................................... 4

Detailed Exam Objectives ........................................................................ 7

Section 1 - Real Estate Concepts ...................................................................... 7

Section 2 - Real Estate Contracts ...................................................................... 8

Section 3 - Real Estate Transaction Management ...................................... 38

Section 4 - Real Estate Common Functionality ........................................... 44

Next Steps .................................................................................................. 49


Purpose of Exam Objectives

When an exam is being developed, the Subject Matter Experts work together to define the role the certified individual will fill. They define all of the tasks and knowledge that an individual would need to have in order to successfully implement the product. This creates the foundation for the objectives and measurement criteria, which are the basis for the certification exam. The Tivoli Certification item writers use these objectives to develop the questions that they write and which will appear on the exam. It is recommended that you review these objectives. Do you know how to complete the task in the objective? Do you know why that task needs to be done? Do you know what will happen if you do it incorrectly? If you are not familiar with a task, then go through the objective and perform that task in your own environment. Read more information on the task. If there is an objective on a task there is about a 95% chance that you WILL see a question about it on the actual exam. After you have reviewed the objectives and completed your own research, then take the assessment exam. While the assessment exam will not tell you which question you answered incorrectly, it will tell you how you did by section. This will give you a good indication as to whether you are ready to take the actual exam or if you need to further review the materials. Note: This is the high-level list of objectives. As you review these objectives, click for a more detailed level of how to perform the task.


High-level Exam Objectives

Section 1 - Real Estate Concepts

1.1 Given knowledge of real estate leasing, define some of the common real estate leasing terms so that they can be explained to a client.

Section 2 - Real Estate Contracts

2.1

Given that TRIRIGA is installed, the Portfolio is properly configured and loaded with data, the user has a license to the Real Estate module and the proper security permissions, create and populate an Owned Property (Fee) Agreement in the TRIRIGA system so that an activated Owned Property (Fee) Agreement is created for use in tracking, managing and reporting on owned property assets in TRIRIGA.

2.2

Given that TRIRIGA is installed, the Portfolio is properly configured and loaded with data, the user has a license to the Real Estate module and the proper security permissions, create and populate an Real Estate Lease in the TRIRIGA system so that a Real Estate Lease can be used in tracking, managing and reporting on lease assets in TRIRIGA.

2.3

Given that TRIRIGA is installed, the Portfolio is properly configured and loaded with data, the user has a license to the Real Estate module and the proper security permissions, describe the four different methods and the related steps to enter a lease into the TRIRIGA system so that the consultant can determine and perform the best method based upon their customers requirements.

2.4

Given that TRIRIGA is installed, the user has a license to the Real Estate module and the proper security permissions, describe the real estate leasing lifecycle within TRIRIGA so that the consultant can properly advise their clients of the process flow.

2.5

Given that an understanding of real estate, compare Owned Property (Fee) Agreement to Real Estate Lease in the TRIRIGA system so that the stated differences between the Real Estate Contract and the Owned Property (Fee) Agreement have been clarified and the consultant will be able to direct the client to use the appropriate record..

2.6 Given knowledge of real estate, explain the critical real estate leasing concepts so that the consultant will use appropriate terminology when working with the client.

2.7 Given knowledge of the Real Estate module, explain the aspects of a real estate leasing so that the consultant will use appropriate terminology when working with the client.

2.8

Given that TRIRIGA is installed, the Portfolio is properly configured and loaded with data, the user has a license to the Real Estate module and the proper security permissions, create a Clause in a Real Estate Lease in the TRIRIGA system so that a clause has been created to support functionality in a TRIRIGA Real Estate Contract.

2.9 Given real estate industry knowledge, explain the rental income stream throughout the life of a lease so that a consultant can explain it to their client.


2.10 Given real estate industry knowledge, define Percent Rent in the TRIRIGA system so that the consultant can be effective in communicating this understanding during implementation of Tririga Real Estate with a client.

2.11

Given that TRIRIGA is installed, the Portfolio is properly configured and loaded with data, the user has a license to the Real Estate module and the proper security permissions, define capital vs operating expense requirements in the TRIRIGA system so that the consultant can determine the best method of use based upon the customer‟s requirements.

2.12 Given that TRIRIGA is installed, the user has a license to the Real Estate module and the proper security permissions, create and/or execute an Option on a Contract so that options can be tracked on a lease.

2.13

Given that TRIRIGA is installed, the Portfolio is properly configured and loaded with data, the user has a license to the Real Estate module and the proper security permissions, describe the two different methods to create, process and change/update a payment schedule on a lease in the TRIRIGA system so that Real Estate payments are effectively entered and processed for the life of the contract.

2.14

Given that TRIRIGA is installed, the Portfolio is properly configured and loaded with data and the user has a license to the Real Estate module and the proper security permissions, describe the process for setting up an Operating Expense / Common Area Maintenance Clause and performing the periodic Payment Reconciliation so that the OPEX/CAM Clause has been entered and is effectively reconciled each period.

2.15

Given that TRIRIGA is installed, the Portfolio is properly configured and loaded with data, the user has a license to the Real Estate module and the proper security permissions, describe the method of creating an amendment of a Real Estate Lease so that the Real Estate Lease is effectively amended to reflect new contractual changes.

2.16

Given that TRIRIGA is installed, the Portfolio is properly configured and loaded with data, the user has a license to the Real Estate module and the proper security permissions, describe the method for defining and processing indexed rent adjustments so that Real Estate Lease rent payments are updated with the new indexed amounts.

Section 3 - Real Estate Transaction Management

3.1

Given that TRIRIGA installed, a license to use the Real Estate module, user has appropriate security permissions, CTQ Templates, RE Transaction Plan Templates, Real Estate Contract templates have all been properly created as necessary, all application settings are properly configured as necessary; describe the real estate transaction lifecycle within Tririga so that the consultant can properly advise their customers‟ of the process flow.

3.2

Given that TRIRIGA installed, a license to use the Real Estate module, user has appropriate security permissions, create RE Action Request as an entry point to the RE Transaction Plan so that a real estate requirement has been documented.


3.3 Given knowledge of real estate, summarize the benefits of using a Real Estate Transaction Plan so that the benefits can be explained to the client.

3.4 Given that client requires an understanding of the product features summarize the benefits of using RE Projects so as to provide a positive understanding of the value and capability of the feature set.

Section 4 - Real Estate Common Functionality

4.1 Given knowledge of real estate and TRIRIGA, describe the interaction between Real Estate Contracts and portfolio so that portfolio elements that the Real Estate Contracts reference are identified.

4.2

Given that TRIRIGA is installed, the Portfolio is properly configured and loaded with data, the user has a license to the Real Estate module and the proper security permissions, describe the method for requiring Real Estate Lease Contact roles so that RE Contract has proper contact roles defined.

4.3

Given TRIRIGA is installed, the Portfolio is properly configured and loaded with data, the user has a license to the Real Estate module and the proper security permissions, describe the different notifications that are used in a Real Estate Lease and how they can be generated in the TRIRIGA Real Estate module, so that .

4.4 Given that client requires an understanding of the product benefits, summarize document storage so as to provide a understanding of the value and capability of the feature set.

4.5 Given expertise in real estate, define financial terminology so that the consultant can explain financial terminology to the client.

4.6

Given that TRIRIGA is installed, the user has a license to the Real Estate module and the proper security permissions, describe the out-of-the-box reporting so that the consultant understands the reporting available in the TRIRIGA application.


Detailed Exam Objectives

Section 1 - Real Estate Concepts

1.1. Given knowledge of real estate leasing, define some of the common

real estate leasing terms so that they can be explained to a client. SUBTASK(S): 1.1.1. Easement – non-possessory interest in land owned by another that gives

the holder of the easement that right to use the land for a specific purpose. 1.1.2. Net lease – the tenant pays the operating expenses in addition to rent.

Such a lease transfers uncertainty regarding the future cost of operating expense to the tenant and leaves the landlord with a more definite return.

1.1.3. Gross lease – the landlord agrees to pay the real estate taxes, utilities, insurance and all other operating expensing in connection with use of the premises. (It is most often used in residential leases.)

1.1.4. Net net lease – tenant pays not only for operating expense but also for insurance premiums.

1.1.5. Triple net lease – the lessee pays operating expenses, insurance premiums and real estate taxes.

1.1.6. Income Lease – the lease belonging to the landlord (grantor). (Lessor) 1.1.7. Expense Lease – the lease belonging to the tenant (grantee) (Lessee) 1.1.8. Ground Rent – rent payable by the tenant to a landlord under a ground

lease (ie/ lease of vacant land)


Section 2 - Real Estate Contracts

2.1. Given that TRIRIGA is installed, the Portfolio is properly configured and loaded with data, the user has a license to the Real Estate module and the proper security permissions, create and populate an Owned Property (Fee) Agreement in the TRIRIGA system so that an activated Owned Property (Fee) Agreement is created for use in tracking, managing and reporting on owned property assets in TRIRIGA.

SUBTASK(S): 2.1.1. Navigate to the Contracts menu item in the main TRIRIGA Global Menu

and hover to select the Agreements Landing Page. 2.1.2. Navigate to the Related Links – Contract Agreements Portal Section and

select Owned Property (Fee) Agreements to show the Owned Property (Fee) Agreements Landing Page.

2.1.3. Click the Add button on the Landing Page. 2.1.4. Enter a name for the property in the required Name field. The Name field

should contain the name of this agreement as directed by the client. This data field is used extensively in queries and reports to identify the record.

2.1.5. In the Units section, set the Currency to the correct currency for the property‟s financial accounting requirements. The Currency is automatically set to the default currency set in the current user‟s My Profile record.

2.1.6. In the Units section, set Area Units to correct area unit of measure setting. The Area Units is automatically set to the default Area Unit UOM set in the current user‟s My Profile record.

2.1.7. In the Details section, enter the Legal Name, Primary Use, Contract Status and Purchase Price. The Legal Name should be the name of the property as referenced in contracts or legal documents referencing this property and is used in some reports and is not required. The Primary Use field is a Classification (Location Primary Use) which is the same classification used on other Location records (Buildings, Structures, etc.). The Contract Status is a Classification. Classifications can be used for reporting and graphics. The Purchase Price field is used for reporting.

2.1.8. In the Accounting section, enter the Accounting Type, Spend Category, and Accounting Cost center. The Accounting Type field is for reporting (Payment Schedule Accounting Type take precedent for each respective Payment Schedule). The Spend Category is a Classification for reporting.

2.1.9. In the Critical Dates section enter a date value for the required Purchase Date field. Optionally, Acquired Date, Occupancy Date and Vacate Date fields can be used for reporting.

2.1.10. Navigate to the Contact Details tab. 2.1.11. Select the Contract Administrator record and associate a people record

to the Contact Role record and click Save & Close. 2.1.12. Click the Create Draft button. 2.1.13. In the Primary Location section, click the Find action and select one of

the displayed locations to associate the Owned Property (Fee)


Agreement to the selected location record. The Primary Address and associated Geography will populate from the associated Location record.

2.1.14. In the Contract Notifications section, select the Add button to enter a Notification if necessary.

2.1.15. Navigate to the Locations tab and confirm the Primary Location is set to the location defined on the General Tab.

2.1.16. The Location Summary section will reflect the area measurements from the associated Primary Location.

2.1.17. In the Contract Locations section, use the Add button to define Spaces, Floors, Buildings or Properties which are considered a part of this agreement. Contract Locations are also known as Premise Locations on RE Contracts. Contract Locations maintain detail about the rentable and usable area defined in each location and the allocation of the location to the agreement.

2.1.18. Navigate to the Payments tab. Use the Payment Schedule section to create any tracking of expenses the Owned Property (Fee) Agreement requires.

2.1.19. Navigate to the Space Use Agreement tab. Space Use Agreements can be used to define an agreement between internal client entities which require date effective, charge and space commitment to be recorded.

2.1.20. Navigate to the History tab to use the Sale Term Information to record details if the related owned property is sold, amendment details and related Transactions.

2.1.21. Navigate to the Summary section to review read only field used for summarizing area, space, portfolio costs and financial summaries for view or for reporting.

2.1.22. When all information is complete, click the Activate button to begin any approval reviews and activation of the record.

2.2. Given that TRIRIGA is installed, the Portfolio is properly configured

and loaded with data, the user has a license to the Real Estate module and the proper security permissions, create and populate an Real Estate Lease in the TRIRIGA system so that a Real Estate Lease can be used in tracking, managing and reporting on lease assets in TRIRIGA.

SUBTASK(S): 2.2.1. Navigate to the Contracts menu item in the main TRIRIGA Global Menu

and hover to select the Leases Landing Page. 2.2.2. Navigate to the Related Links – Contract Leases Portal section and select

Leases to show the Leases Landing Page. 2.2.3. Click the Add button on the Leases Landing Page. 2.2.4. Enter an ID value in the ID Field. Clients commonly have a system for

identifying leases which use a short string. The ID field is displayed throughout the system in various reports.


2.2.5. Enter a name for the lease in the required Name field. The Name field should contain the name of this lease as directed by the client. This data field is used extensively in queries and reports to identify the record.

2.2.6. Enter a Description that describes the lease. 2.2.7. Enter the name of the lease as it is defined in the legal documents in the

Legal Name field. 2.2.8. In the Units section, set the Currency to the correct currency for the

property‟s financial accounting requirements. The Currency is automatically set to the default currency set in the current user‟s My Profile record.

2.2.9. In the Units section, set Area Units to correct area unit of measure setting. The Area Units is automatically set to the default Area Unit UOM set in the current user‟s My Profile record.

2.2.10. In the Details section, enter the Lease Type. The types of lease are expense, income, and sublease. Click the Search icon and select from the listed choices. There are 4 classifications: 2.2.10.1. Expense lease: Use it when you lease the asset from a lessor. 2.2.10.2. Expense lease - master sublease: An expense lease that is

used when you are subleasing the asset from another party. 2.2.10.3. Income lease – sublease: An income-based or accounts

receivable (AR) lease that is used when you have an expense lease and you are subleasing part of it to another lessee.

2.2.10.4. Income lease – third-party lease: An income-based or AR lease that is used when you own the asset and have sub-lessees for the lessees of the asset.

If the value is an income lease (sublease or third-party lease), the form shows the Parent Asset Lease section in the General tab. In the Details section, enter the Lease Category. The category of the lease, in terms of net and gross. Click the Search icon and select from the listed choices.

2.2.11. In the Details section, Primary Use. The Primary Use field is a Classification (Location Primary Use) which is the same classification used on other Location records (Buildings, Structures, etc.).

2.2.12. In the Details section, enter the Base Lease Rate. This base is the minimum lease amount. The unit of currency is set in the Units section.

2.2.13. In the Details section, enter the Lease Base Year. This base is the initial lease period.

2.2.14. In the Details section, check the Memorandum of Lease if this record is to be used to track a recordable instrument representing third party notice of a lease interest encumbering real property.

2.2.15. In the Details section, enter the Accounting Type. The Accounting Type field is for reporting (Payment Schedule Accounting Type takes precedent for each respective Payment Schedule).

2.2.16. Use the Critical Dates section of the Lease Abstract form to identify the commencement, construction, expiration, and other dates from the lease. The form uses these dates to populate other fields in other sections and


tabs in the lease abstract. If you have auditable or percentage rent clauses, you must specify the Commencement Date field and Base Lease Expiration Date field to calculate the amount due for the occupied duration.

2.2.17. In the Critical Dates section, enter the required field Commencement Date.

2.2.18. Navigate to the Contact Details tab. 2.2.19. Select the Contract Administrator record and associate a people record

to the Contact Role record and click Save & Close. 2.2.20. Click the Create Draft button. 2.2.21. Navigate to the General tab. 2.2.22. In the Primary Location section, click the Find action and select one of

the displayed locations to associate the Real Estate Lease to the selected location record. The Primary Address and associated Geography will populate from the associated Location record. Primary Locations can only be Properties, Buildings, Structures or Land.

2.2.23. Navigate to the Locations tab. 2.2.24. In the Premise Locations section, use the Add button to define Spaces,

Floors, Buildings or Properties which are considered a part of this agreement. Premise Locations maintain detail about the rentable and usable area defined in each location and the allocation of the location to the agreement. They also allow multiple locations in the TRIRIGA Location Hierarchy to be associated to a Real Estate Contract.


and loaded with data, the user has a license to the Real Estate module and the proper security permissions, describe the four different methods and the related steps to enter a lease into the TRIRIGA system so that the consultant can determine and perform the best method based upon their customers requirements.

SUBTASK(S): 2.3.1. Offlining – Populate an Excel offline template with the appropriate level of

information. The file can be loaded in to TRIRIGA through email or the Data utility as an Excel file if TRIRIGA has been configured to do so.

2.3.2. Configure offlining email integration. 2.3.2.1. Create an incoming mail user in your mail server – example

below uses : [email protected] 2.3.2.2. Set SMTP mail server (mail.smtp.host) and SMTP mail server

IP (mail.smtp.email.domain) in TRIRIGAWEB.properties file. 2.3.2.3. Set DTACONNECT_SLEEP_TIME to 10 minutes. 2.3.2.4. Log in to TRIRIGA Admin Console as system administrator.

2.3.2.4.1. Ensure that IncomingMail agent is running 2.3.2.5. Log in to TRRIIGA application as system administrator.

2.3.2.5.1. Navigate to Tools on the menu. 2.3.2.5.2. In System Setup select Incoming Mail Config:


2.3.2.5.2.1. Enter configuration values for your mail server and account.

2.3.2.5.2.2.

2.3.2.5.2.3. Save and Close the record.

2.3.3. Import offline file (not email). 2.3.3.1. Sign in to TRIRIGA. 2.3.3.2. Select Tools from menu. 2.3.3.3. Select Lease Abstract Offline from Data Utilities. 2.3.3.4. Click Add to start a new import.

2.3.3.4.1. Click import file icon next to Content to select the Offline file to be imported.

2.3.3.4.2. Click Create. 2.3.3.4.3. Click Process to start the import process.

2.3.4. Definition of OSCRE – Open Standards Consortium for Real Estate. 2.3.5. Complete OSCRE export process from source TRIRIGA system.

2.3.5.1. Log in to TRIRIGA. 2.3.5.2. Select New Lease Abstract from Lease section of Contract

menu. 2.3.5.3. Click Create Draft External. 2.3.5.4. Enter relevant data and click Start Abstract. 2.3.5.5. After filling in other data click Submit for Review. 2.3.5.6. Lease Abstract is routed for review and approval. 2.3.5.7. Once approved the Lease Abstract will have the status of

Approved. 2.3.5.8. When ready to send the lease click Send. 2.3.5.9. Review the Lease Abstract Send form that appears.


2.3.5.10. 2.3.5.11. Enter a comment. 2.3.5.12. Select the source system. 2.3.5.13. Select the target system. 2.3.5.14. Click Submit and the system will send the record via email and

changes the status to Sent. 2.3.6. Bulk OSCRE export process from source TRIRIGA system.

2.3.6.1. Log in to TRIRIGA. 2.3.6.2. Select Data Utilities from Tool menu. 2.3.6.3. Select OSCRE XML Export. 2.3.6.4. Click Add. 2.3.6.5. Enter a comment. 2.3.6.6. Select the source system. 2.3.6.7. Select the target system. 2.3.6.8. Find one or more Lease Abstracts. 2.3.6.9. Click Create. 2.3.6.10. Click Process and the system will export the Lease Abstracts

and send them to the target system. 2.3.7. Automated import into target TRIRIGA system.

2.3.7.1. The external record that contains the Lease Abstract data is received and a notification is sent to the Contract Administrator.

2.3.7.2. The Contract Administrator may Accept, Reject ,or Request Clarification.

2.3.7.3. The Target server sends the record‟s status to the Source server.

2.3.8. The Source server Lease Abstract is set to the appropriate status. If Rejected or Clarification Requested the Lease Abstract can be updated and resent.

2.3.9. Configure OSCRE email integration. 2.3.9.1. Create an incoming mail user in your mail server – example

below uses [email protected].


2.3.9.2. Set SMTP mail server (mail.smpt.host) and SMTP mail server IP (mail.smtp.email.domain) in TRIRIGAWEB.properties file.

2.3.9.3. Set DTACONNECT_SLEEP_TIME to 10 minutes. 2.3.9.4. Log in to TRIRIGA Admin Console as System Administrator

(changes for both client and third-party servers). 2.3.9.4.1. Ensure that DataConnect and IncomingMail agents

are running. 2.3.9.5. Log in to TRRIIGA application as system administrator.

2.3.9.5.1. Navigate to Tools on the menu. 2.3.9.5.2. In System Setup select Incoming Mail Config:

2.3.9.5.2.1. Enter configuration values for your mail server and account.

2.3.9.5.2.2.

2.3.9.5.2.3. Save and Close the record.

2.3.9.5.3. In System Setup select Transform Content. 2.3.9.5.3.1. Ensure that Transform Content exists for

Accept, Provide Clarification, Reject, Request Clarification ,and Send.

2.3.9.5.4. In System Setup select Application Settings: 2.3.9.5.4.1. On General tab, Lease Abstract

Transformation section ensure that Accept, Provide Clarification, Reject, Request Clarification and Send are all associated to their appropriate Transform Content records.

2.3.9.5.5. In System Setup select System Configuration: 2.3.9.5.5.1. Ensure that a record exists for the

source system and one exists for the target system. This record contains the appropriate email address for sending a receiving abstract records.

2.3.9.5.5.2.


2.3.10. Import OSCRE XML file (not email).

2.3.10.1. Sign in to TRIRIGA. 2.3.10.2. Select Tools from menu. 2.3.10.3. Select OSCRE XML Import from Data Utilities . 2.3.10.4. Click Add to start a new import.

2.3.10.4.1. Select Type of OSCRE Process. 2.3.10.4.2. Click import file icon to select the OSCRE XML file

to be imported. 2.3.10.4.3. Click Process to start the import process.

2.3.11. Dynamic Portfolio data such as Geography, People, Organizations, Locations are not included in Offlining or OSCRE data and need to be updated manually.

2.3.12. Real Estate Lease Abstract – Update and Complete the Real Estate Lease Abstract with the TRIRIGA Real Estate module.

2.3.13. Real Estate Project: 2.3.13.1. Log in to TRIRIGA. 2.3.13.2. From the Projects Menu select Real Estate. 2.3.13.3. Select an approved RE Project Lease. 2.3.13.4. Click Close Out. 2.3.13.5. On Transaction Closeout screen enter Close Out Comment,

select the Abstract Contact, complete any other data and click continue.

2.3.13.6. The Contract Manager in Contact Roles will get a notification of the creation of the newly created Lease Abstract.

2.4. Given that TRIRIGA is installed, the user has a license to the Real

Estate module and the proper security permissions, describe the real estate leasing lifecycle within TRIRIGA so that the consultant can properly advise their clients of the process flow.

SUBTASK(S):


2.4.1. A RE Project is ‘Completed‟. 2.4.1.1. A RE Acquisition Project is ‘Completed’; this automatically

creates an Owned Property (Fee) Agreement in ‘Draft’ status. 2.4.1.2. The ‘Draft’ Owned Property (Fee) Agreement can be

abstracted and ‘Activated’. 2.4.1.3. A RE Lease Project is ‘Completed’ with a Project Type of

‘New Lease’; this automatically creates a Real Estate Lease Abstract in ‘Draft’ status.

2.4.1.4. A ‘Draft’ status Real Estate Lease Abstract is abstracted and then Activated. 2.4.1.4.1. The Real Estate Lease Abstract enters the

Approval Process if configured to do so. 2.4.1.4.2. The ‘Active’ Real Estate Lease Abstract is

‘Completed’ creating a ‘Draft’ Real Estate Contract. 2.4.1.4.2.1. The Real Estate Contract is finalized

and ‘Activated’ 2.4.1.4.2.1.1. The Real Estate Contract

or Owned Property Agreement is managed for Lease Accounting and Payment Processing.

2.4.2. New RE Projects can be created referencing existing Real Estate Contracts or Owned Property (Fee) Agreements.

2.4.3. All of these objects can be created independently at any point in the process, so any starting point can be correct.


2.5. Given that an understanding of real estate, compare Owned Property

(Fee) Agreement to Real Estate Lease in the TRIRIGA system so that the stated differences between the Real Estate Contract and the Owned Property (Fee) Agreement have been clarified and the consultant will be able to direct the client to use the appropriate record..

SUBTASK(S): 2.5.1. Owned property agreement records are used to digitally store owned

agreement data, you can input the contents into owned agreement records. The owned property agreement record can contain as much of the actual agreement details as needed, based on the preferences and standards of the client‟s organization.

2.5.2. Using the process flow below, determine the Contract Type. If it is an

Owned Property the process flow selects the Owned Property (Fee) Agreement.


2.5.3. Using the process flow above, determine the Contract Type. If it is a Real

Estate Lease the process flow selects either the Lease Abstract or Real Estate Lease.

2.5.4. The Real Estate Lease has a Clauses, Options & Terms Tab, and

Accounting Tab where the Owned Property (Fee) Agreement does not. 2.6. Given knowledge of real estate, explain the critical real estate leasing

concepts so that the consultant will use appropriate terminology when working with the client.

SUBTASK(S): 2.6.1. Contract – is the legal devise used by two parties to indicate they have

come to an agreement. It is the exchange of promises by two or more people, conditioned on certain events and is enforceable by law. Some examples include: listing agreement, sales contract, escrow, contract for a deed and options.

2.6.2. Title – the legal right to ownership. 2.6.3. Warranty Deed – a deed in which the seller warrants that title to the

property being conveyed is free of all restrictions except those specified 2.6.4. Option contract – an agreement to keep an offer open for acceptance

during a stated period of time. 2.6.5. Deed- a legal description that represents title, or ownership, of real

property. 2.7. Given knowledge of the Real Estate module, explain the aspects of a

real estate leasing so that the consultant will use appropriate terminology when working with the client.

SUBTASK(S): 2.7.1. Contacts: Names of parties in the agreement.


2.7.2. Commencement Date: The starting date of the agreement. 2.7.3. Expiration Date: The ending date of the agreement. 2.7.4. Address: Identification of the property or object being leases. 2.7.5. Rent: A payment made by a tenant at intervals in order to occupy a

property. 2.7.6. Percentage Rent: A rent payment that is a percentage of the tenants

retail revenue for a period of time, made by a tenant at intervals in order to occupy a property.

2.7.7. Index based Rent: A variable rent payment for which the payment amount is tied to a standard index, such as the Consumer Price Index (CPI) or other index.

2.7.8. Sublease: A lease on something made by someone who already leases it. 2.7.9. Common Area Maintenance (CAM): Maintenance fees associated to

„common areas‟ which are usually shared between multiple tenants of a building. (Examples include: hallways, parking areas, lawns)

2.7.10. Clause: Specific conditions placed upon the involved parties such as: Tenant Improvements, Easement, need to provide insurance for loss, restrictive use, operating hours, signage, etc.

2.7.11. Option: Provides conditions for renewal or non-renewal. 2.7.12. Security Deposit: A specific provision in a lease that specifies a

financial deposit provided to the landlord by the tenant used as collateral for the property or assets being leased. Includes terms for the return of the security deposit back to the Tenant.

2.7.13. Financial Accounting Standards Board (FASB): An organization that defines commonly used accounting standard rules.

2.7.14. International Accounting Standards Board (IASB): An international organization that defines commonly used accounting standard rules.

2.7.15. Amortization Schedule: A table detailing periodic payments over time, specifying the amounts that are allocated for principal and interest payments.


and loaded with data, the user has a license to the Real Estate module and the proper security permissions, create a Clause in a Real Estate Lease in the TRIRIGA system so that a clause has been created to support functionality in a TRIRIGA Real Estate Contract.

SUBTASK(S): 2.8.1. Open a Real Estate Lease record that has been transitioned to Draft

status. 2.8.2. Navigate to the Clauses, Options and Terms tab. 2.8.3. Click Add on the Clauses sub tab and the Lease Clause Form displays. 2.8.4. The Document Reference section contains data for referencing the original

document, in this case the clause reference detail needed to locate and reference the original document.


2.8.5. In the Lease Clause Details section, select the Lookup icon to list the Clause Type configured in the system. The Clause Type is an action field which set the sections on the Lease Clause Form depending on the type of clause. If the Clause Type selected causes an additional section to appear, this section displays below the Clause Text section.

2.8.6. In the Covenant Details section, enter the Effective From and Effective To date fields from the original contract or the clause language.

2.8.7. In the Covenant Details section, the Includes Index Adjustment check box can be used to enable the Index Adjustment section for the current clause.

2.8.8. In the Covenant Details section, If a lease contains a clause with the Payment Auditable check box selected, the clause shows the Audit Details section. When the lease is activated, the application sends scheduled notifications to the Contract Administrator for payment reconciliation. The notification schedule is based on the Reconciliation Frequency pattern and Reconciliation Start date. After the reconciliation is issued, you can review the payment line items (PLIs) that are created from the reconciliation. Return to the lease. In the Payments tab, go to the Payments section and select the Payments - Projected (AR) related report. The section shows the PLIs from the reconciliation and other accounts receivable (AR) items.

2.8.9. In the Clause Text Section, the complete electronic copy of the contract clause can be pasted for electronic reference within the system.

2.8.10. Use the Save & Close action to complete the Clause. 2.8.11. The Clause created in this manner will be activated and process when

the Lease is Activated. 2.9. Given real estate industry knowledge, explain the rental income

stream throughout the life of a lease so that a consultant can explain it to their client.

SUBTASK(S): 2.9.1. Occupancy year stop – occupancy expenses can be defined by a base

year with a limit as to the increase per year based on that defined year. Most often it is tied to the first year of operating expenses of the lease.

2.9.2. Index increase – a lease can have increases tied to an Index such as CPI or Cost of Living Index or even LIBOR. It is defined in the contact document. The adjustment frequency is defined. Sometimes there are also minimum percentage increase/decrease per adjustment as well as maximum lifetime increases or decreases.

2.9.3. Straight line /defined increases – such as a dollar amount or percent amount increase with a defined frequency. (in TRIRIGA it s the “growth type”)

2.9.4. Percentage Rent – rent payable under a lease that is equal to a percentage of gross sales or gross revenues received by the tenant. It is commonly used in shopping centers; the percentage rent is usually joined


with a minimum rent that the tenant pays, regardless of the amount of sales volume.

2.9.5. Note: A longer term lease often has rent increases over time that can have varying effect on the life of the lease. Depending on the structure it can also transfer uncertainty regarding the future cost of operating expense to the tenant and leaves the landlord with a more definite return

2.10. Given real estate industry knowledge, define Percent Rent in the

TRIRIGA system so that the consultant can be effective in communicating this understanding during implementation of Tririga Real Estate with a client.

SUBTASK(S): 2.10.1. In consideration for providing a shopping place with the prospect of sales

for a tenant, property managers may want a cut in the gross sales of a tenant's store. A percentage rent provision provides that if the tenant achieves a certain amount of gross sales in a given year, they will pay a percentage of such gross sales to the landlord as additional rent. Property managers can negotiate for percentage rent provision to be added in their leases.

2.10.2. In a real estate lease with a percentage rent clause, the landlord will receive a minimum amount of rent and, in if the tenant's gross sales increase over a certain amount, the landlord will also receive a certain percentage of the gross sales. If the parties agree that the landlord should collect a percentage of the tenant's total gross sales, then a "natural breakpoint" will be used.

2.10.3. In this example, if the landlord and the tenant agree that the landlord should be entitled to 5% of the tenant's total gross sales, but not less than the annual fixed rent, the parties would add a percentage rent provision to the lease providing that the tenant will pay to the landlord percentage rent in the amount of 5% of the tenant's gross sales over the natural breakpoint. If the annual fixed rent in this example is $100,000.00, then the natural breakpoint would be 100,000 ÷ 5%, or $2,000,000. The tenant would be required to pay to the landlord 5% of its gross sales where the gross sales are more than $2,000,000.

2.10.4. Taking this example further, assuming that the tenant earns $3,000,000 of gross sales in a year, the landlord and the tenant have agreed that the landlord is entitled to 5% of these gross sales as its total rent for the space, or $150,000.00. The tenant, however, will have already paid $100,000 in annual fixed rent. The amount of percentage rent would be 5% of the amount of gross sales over the foregoing $2,000,000 natural breakpoint (or $1,000,000) and will equal $50,000. Accordingly, the landlord will receive $100,000 in annual fixed rent and $50,000 in percentage rent, for a total of $150,000, which is the same amount as 5% of the tenant's total gross sales.


2.10.5. It is possible that tenants may be profitable at a lower gross sales total than the natural breakpoint, therefore landlords can sometimes negotiate for a breakpoint lower than the natural breakpoint. Also, a tenant might negotiate for a higher amount of fixed rent than it feels that the location deserves, but, in return for such agreement, the tenant might agree for a higher breakpoint.


and loaded with data, the user has a license to the Real Estate module and the proper security permissions, define capital vs operating expense requirements in the TRIRIGA system so that the consultant can determine the best method of use based upon the customers requirements.

SUBTASK(S): 2.11.1. Open a Real Estate Lease Form and navigate to the FASB 13 Treatment

section. 2.11.2. Use this section of the Lease Abstract form to apply the FASB-specific

standard by the FASB. This standard calculates the treatment of "Capital" (capitalized) or "Operating" (non-capitalized) for the lease. Meanwhile, the draft of the joint standard by the FASB and IASB, which is not finalized, treats all leases as capitalized leases.

2.11.3. In the FASB 13 Treatment section, set the list value to FASB Lease Type. The types of the FASB lease are partial building, building and land, and land only. Depending on the selection, the form shows a different set of fields.

2.11.4. In the FASB 13 Treatment section, answer yes or no to Does Property Transfer Ownership at End of Lease. If the value is yes, then the lease treatment is "Capital".

2.11.5. In the FASB 13 Treatment section, answer yes or no to Does Lease have Bargain Purchase Option. If the value is yes, then the lease treatment is "Capital".

2.11.6. In the FASB 13 Treatment section, answer yes or no to Is Cost or Fair Value Determinable. Select from yes or no. Depending on your selection, the form shows a different set of fields. If the value is no, then the lease treatment is "Operating".

2.11.7. In the FASB 13 Treatment section, answer yes or no to Is Lessor Implicit Interest Known.

2.11.8. In the FASB 13 Treatment section, enter the value for Incremental Borrowing Rate as a percentage.

2.11.9. In the FASB 13 Treatment section, enter the value for Lease Rate Used (Calculated) as a percentage.

2.11.10. In the FASB 13 Treatment section, enter the Est. Economic Life of Asset (Yrs). This is the estimated years for the economic life of the asset.


2.11.11. In the FASB 13 Treatment section, enter the Estimated FMV of Building. This is the estimated fair market value (FMV) of the building component only.

2.11.12. In the FASB 13 Treatment section, enter the Land Percentage. This is the percentage of the lease that is represented by the land component.

2.11.13. The follow flow illustrates the FASB treatment:



Estate module and the proper security permissions, create and/or execute an Option on a Contract so that options can be tracked on a lease.

SUBTASK(S): 2.12.1. Create an Option from a Real Estate Lease Abstract.

2.12.1.1. On the Options sub tab, click Options Wizard. This method can create multiple Option records by reusing many of the populated fields similar to a template. 2.12.1.1.1. After you have populated the necessary sections

of the Option, click Create Option. The Option will be created and viewable later on. The Option # is increased by one. If this is a Renewal Option, the Effective Date is increased to the next day following the term of the previous Option. The other fields that were populated on the first option are left as is so that you don‟t have to reenter all the information and only need to update any key differences between the many options to be created.

2.12.1.1.2. When finished entering Options, close the window and the Options will appear on the contract.

2.12.1.2. On the Tenant Renewal Options section this query shows only the Options where the Option Type = „Renewal‟. All Options with an Option Type other than „Renewal‟ will appear


in the „Other Options‟ section. Both of these sections have an „Add‟ action. Click „Add‟ to create a single Option record. 2.12.1.2.1. Populate the Document Reference section as

needed. 2.12.1.2.2. Populate the Details section as needed.

2.12.1.2.2.1. The Effective Date is when the option takes effect if Exercised.

2.12.1.2.2.2. The Option Type provides the critical definition of the option.

2.12.1.2.2.3. Click „Create‟ at the top to create the Option.

2.12.1.2.3. Populate the other sections as needed.

2.12.2. Create an Option from a Real Estate Contract or an Asset Lease. 2.12.2.1. On the Real Estate Contract or Asset Lease go to the

„Clauses, Options & Terms‟ tab. 2.12.2.2. On the Options sub-tab, Click „Add‟. This method creates a

single Option record. 2.12.2.2.1. Populate the Document Reference section as

needed. 2.12.2.2.2. Populate the Details section as needed.

2.12.2.2.2.1. The Effective Date is when the option takes effect if Exercised.

2.12.2.2.2.2. The Option Type provides the critical definition of the option.

2.12.2.2.2.3. Click „Create‟ at the top to create the Option.

2.12.2.2.3. Populate the other sections as needed. 2.12.2.3. On the Options sub tab, Click Options Wizard. This method

can create multiple Option records by reusing many of the populated fields similar to a template. 2.12.2.3.1. After you have populated the necessary sections

of the Option, click Create Option. The Option will be created and viewable later on. The Option # is increased by one. If this is a Renewal Option, the Effective Date is increased to the next day following the term of the previous Option. The other fields that were populated on the first option are left as is so that you don‟t have to reenter all the information and only need to update any key differences between the many options to be created.

2.12.2.3.2. When finished entering Options, close the window and the Options will appear on the contract.


2.12.3. Exercising a renewal option updates the „Base Lease Expiration Date‟ on the lease with the Effective Date of the Option. Also the Original Expiration Date field is populated on the lease from the original „Base Lease Expiration Date‟ value. All future notifications for the Option that was exercised are removed.


and loaded with data, the user has a license to the Real Estate module and the proper security permissions, describe the two different methods to create, process and change/update a payment schedule on a lease in the TRIRIGA system so that Real Estate payments are effectively entered and processed for the life of the contract.

SUBTASK(S): 2.13.1. Create Payment Schedules:

2.13.1.1. Payment Schedules in the Lease Clause 2.13.1.1.1. Sign in to TRIRIGA. 2.13.1.1.2. Select Real Estate Lease to update . 2.13.1.1.3. Open Clauses, Options & Terms tab. 2.13.1.1.4. Select Lease Clause to update. 2.13.1.1.5. At the top of the Payment Schedule section,

select Add. 2.13.1.1.6. Enter the Payment details (Payment Type,

Expected Cash Amount). Validate the Accounting Type.

2.13.1.1.7. Select Cost Codes. 2.13.1.1.8. In the Processing section, enter the Process

Type and Process Period. 2.13.1.1.9. In the Payment Schedule section, set the

frequency and the start date for the payments. 2.13.1.1.10. If necessary calculate and enter any partial first

and last partial payments (except for one time payments).

2.13.1.1.11. Add Tax Type and set rate in the Tax Breakdown section.

2.13.1.1.12. Navigate to the Payment Instructions section. Validate that the Payment Instruction has the proper Organization for the payment. This will default to Organization specified in the Default Remit To section found on Contact Details tab.

2.13.1.1.13. Click Save and Close on the Payment Instruction Form.

2.13.1.1.14. Click Create on the Payment Schedule Form. 2.13.1.1.15. When the Real Estate Lease is activated the

system will create Payment Line Items from the


specifics in the Payment Schedule.

2.13.1.2. Payment Schedule Wizard 2.13.1.2.1. Sign in to TRIRIGA. 2.13.1.2.2. Select Real Estate Lease to update . 2.13.1.2.3. Open Payments tab. 2.13.1.2.4. At the top of the Payment Schedule section,

select Generate Payment Schedule. 2.13.1.2.5. Enter the Payment details (Payment Type).

Validate the Accounting Type. 2.13.1.2.6. In the Payment Parameters section click on

"Includes % Growth" and click outside the box. 2.13.1.2.7. Fill in the First Payment Date. 2.13.1.2.8. Fill in the First Payment Amount. 2.13.1.2.9. Adjust Every x Months will default to 12. 2.13.1.2.10. If the payment is to increase, fill in the % Growth. 2.13.1.2.11. Fill in the Number of Schedules. 2.13.1.2.12. In the Payment Schedule section, click on

Generate Schedule. 2.13.1.2.13. In the Processing Rules section, enter the

Process Mode and Process Period. 2.13.1.2.14. In the Payment Schedule section, set the

frequency and the start date. 2.13.1.2.15. Select Cost Codes. 2.13.1.2.16. Navigate to the Payment Instructions Section.

Add an instruction. 2.13.1.2.17. Click Save and Close on the Payment Instruction

Form. 2.13.1.2.18. Click Create Schedule on the Generate Payment

Schedule Form. 2.13.1.2.19. Repeat the above steps for additional Payment

Schedules. 2.13.1.2.20. When completed, click Cancel on the Generate

Payment Schedule Form. 2.13.1.2.21. If the Payment Schedule is for a Lease Clause

2.13.1.2.21.1. Open Clauses, Options & Terms tab.

2.13.1.2.21.2. Select Lease Clause to update. 2.13.1.2.21.3. At the top of the Payment

Schedule section, select Find. 2.13.1.2.21.4. Select the newly created Payment

Schdules from the list that are for this Lease Clause and click OK.

2.13.1.2.21.5. Save & Close the Lease Clause.


2.13.2. Payment Processing – Real Estate Lease(s) should be Active and have Payment Schedules. 2.13.2.1. Process Batch Payments

2.13.2.1.1. Sign in to TRIRIGA. 2.13.2.1.2. From Contract menu select Process Payments

from the Payments section of Payables menu. 2.13.2.1.3. Create a new Process Payment by clicking Add. 2.13.2.1.4. Fill out the required fields, then Create Draft. 2.13.2.1.5. Select a Process Period and Due Before value. 2.13.2.1.6. Select Get Payments. 2.13.2.1.7. Every payment that is shown in the query section

is potentially going to be paid with this process payment. To omit payments, select the checkbox and click Remove.

2.13.2.1.8. If the payment(s) you are looking for does not show up when you select Get Payments: 2.13.2.1.8.1. On the Payment Line Items query

section, select Find. 2.13.2.1.8.2. The search window displays all

scheduled payments by default. Search for the missing payment, check the box next to it, then click OK. The TRIRIGA system will add the selected payment to the Process Payment.

2.13.2.1.8.3. If the payment you are looking for does not display in the search box, then select the sub-query > Payments-All. Search for the missing payment, check the check box next to it, then click OK. The TRIRIGA system will add the selected payment to the Process Payment.

2.13.2.1.9. Issue the Process Payment. 2.13.2.1.10. The system will route the Process Payment if

review and approval are required. 2.13.2.1.11. Legacy financial integration would occur at this

point 2.13.2.1.12. Open the Process Payment. Complete the

process payment. If not done by the integration the Payment Line Items are marked as Paid

2.13.2.2. Ad Hoc payments:

2.13.2.2.1. Sign in to TRIRIGA.


2.13.2.2.2. From Contract menu select Real Estate from the Invoice section in Payables menu

2.13.2.2.3. Create a new Real Estate Invoice by clicking Add. 2.13.2.2.4. Fill out the Invoice Type. 2.13.2.2.5. Select a Real Estate Contract and Due Before

value, then Create Draft. 2.13.2.2.6. If matching to scheduled payments that are

processed by invoice (not by batch process above) 2.13.2.2.6.1. Select Get Payments in Contract

Payments – To Process section. 2.13.2.2.6.2. Select the payments that you want

to process with this invoice. Then select OK.

2.13.2.2.7. For unscheduled payments: 2.13.2.2.7.1. Select Quick Add in the One Time

Payments - To Process section 2.13.2.2.7.2. Enter the necessary data for this

payment. 2.13.2.2.8. If doing sub-lease pass-through :

2.13.2.2.8.1. Select the SubLease Pass-Through action.

2.13.2.2.8.2. Check the box next to the payment line items and next to the sub-leases that you want to include in the pass-through. Select the Preview Pass-Through Payments Action.

2.13.2.2.8.3. Fill out the required percent for each pass-through preview.

2.13.2.2.8.4. Select Process. 2.13.2.2.9. Issue the Real Estate Invoice. 2.13.2.2.10. The system will route the Real Estate Invoice if

review and approval are required. 2.13.2.2.11. When approved the Payment Line Items will be

processed by the Process Batch Payments process.

2.13.2.2.12. Open the Real Estate Invoice. Complete the Real Estate Invoice. If not done by the integration the Payment Line Items are marked as Paid. Any pass-through payments are added to the respective sublease payment schedule.

2.13.2.3. AR Invoicing

2.13.2.3.1. Sign in to TRIRIGA.


2.13.2.3.2. From Contract menu select Generate Lease Invoices from the Receivables menu.

2.13.2.3.3. Create a new Lease Invoice record by clicking Add.

2.13.2.3.4. Fill out the Name, Process Month, Process Year and Due Before values.

2.13.2.3.5. Then select find on the AR Leases section. 2.13.2.3.6. In the search window select the AR Leases for

which you want to generate an AR invoice. Then select OK.

2.13.2.3.7. Select Process. 2.13.2.3.8. Select Bulk Print Invoices. Or print the AR

Invoices from the Print Preview tab of each AR Invoice.

2.13.2.3.9. From Contract menu select Receive Lease Invoices from the Receivables menu

2.13.2.3.10. Create a new Process AR Receipts record by clicking Add.

2.13.2.3.11. Populate the Receipt Date, Real Estate Contract, and Due Date Before fields.

2.13.2.3.12. Enter the amounts to process for this invoice next to each payment line item. To remove, select the check box next to the item to be removed, then select remove.

2.13.2.3.13. Select Calculate to display the delta amount for each payment line item.

2.13.2.3.14. Populate the Amount Received field. 2.13.2.3.15. Select Issue.

2.13.2.4. Pass-Through – Real Estate Lease should be in an active

state, and have a valid payment schedule(s). The Master lease type is "Expense Lease - Master Sublease" and Accounting Type is "Accounts Payable (AP)". The Sub-lease type is "Income Lease - Sublease", Accounting Type is "Accounts Receivable (AR)", Parent Real Estate Contract is the "Master Lease". The Sub-lease payment schedules indicating flow from the sub-tenant to the tenant have accounting type of "Accounts Payable (AP)". The Contract selected on the RE Invoice must be the "Expense Lease - Master Sublease". 2.13.2.4.1. Sign into TRIRIGA. 2.13.2.4.2. From Contract menu select Real Estate from the

Invoice section in Payables menu 2.13.2.4.3. Create a new Real Estate Invoice by clicking Add. 2.13.2.4.4. Fill in the Invoice type.


2.13.2.4.5. Select a Real Estate Contract and Due Before value. Then Create Draft.

2.13.2.4.6. Select Get Payments. 2.13.2.4.7. Select the payments that you want to process

with this invoice. Then select OK. 2.13.2.4.8. On the One Time Payments-To Process section,

select the Quick Add action if there are additional un-scheduled payments to be processed with this RE Invoice.

2.13.2.4.9. Select the SubLease Pass-Through action. 2.13.2.4.10. Check the box next to the payment line items

and next to the sub-leases that you want to include in the pass-through. Select the Preview Pass-Through Payments Action.

2.13.2.4.11. Fill out the required percent for each pass-through preview.

2.13.2.4.12. Select Process. 2.13.2.4.13. Issue the RE Invoice. 2.13.2.4.14. The system will route the Real Estate Invoice if

review and approval are required. 2.13.2.4.15. When approved the Payment Line Items will be

processed by the Process Batch Payments process.

2.13.2.4.16. Open the Real Estate Invoice. Complete the Real Estate Invoice. If not done by the integration the Payment Line Items are marked as Paid. Any pass-through payments are added to the respective sublease payment schedule.

2.13.3. Payment Adjustments:

2.13.3.1. Adjust Payments Manually. 2.13.3.1.1. Sign into TRIRIGA. 2.13.3.1.2. Select Real Estate Lease to update 2.13.3.1.3. Navigate to the Real Estate Contract for which

you want to adjust payments. 2.13.3.1.4. Click Revise on the Contract. 2.13.3.1.5. On the pop up screen presented select Data

Revise and in the Comments enter a description of what is to be adjusted and click Continue

2.13.3.1.6. Go to the Payment tab. 2.13.3.1.7. On either the Payment Schedules tab or the

Payments tab click Adjust Payments. 2.13.3.1.8. Populate the Payment Type. 2.13.3.1.9. Populate the From Date and To Date fields. 2.13.3.1.10. Select either Credit, Expected Accrual, or

Expected Cash Before Tax for the Adjust field.


2.13.3.1.11. Fill in the Adjusted Amount field. 2.13.3.1.12. If you wish to modify the cost codes for the

payment line items to be adjusted, select the Modify Cost Codes check box.

2.13.3.1.13. Select Process Adjustment.

2.13.3.2. Stop Payments: 2.13.3.2.1. Sign into TRIRIGA. 2.13.3.2.2. From Contract menu select Stop from the

Payments section of Payables menu. 2.13.3.2.3. Create a new Stop Payments by clicking Add. 2.13.3.2.4. Enter a Name to identify the Stop Payment

record 2.13.3.2.5. Click on Find to locate the Payment Line Items

you need to stop payment. 2.13.3.2.6. Click Create Draft. 2.13.3.2.7. Click Stop.

2.13.3.3. Void Payment:

2.13.3.3.1. Sign in to TRIRIGA. 2.13.3.3.2. From Contract menu select Void from the

Payments section of Payables menu. 2.13.3.3.3. Create a new Void Payments by clicking Add. 2.13.3.3.4. Enter a Name to identify the Void Payment

record. 2.13.3.3.5. Click on Find to locate the Payment Line Items

you need to void payment. 2.13.3.3.6. Click Create Draft. 2.13.3.3.7. Click Void.


and loaded with data and the user has a license to the Real Estate module and the proper security permissions, describe the process for setting up an Operating Expense / Common Area Maintenance Clause and performing the periodic Payment Reconciliation so that the OPEX/CAM Clause has been entered and is effectively reconciled each period.

SUBTASK(S): 2.14.1. Set up the Operating Expense / Common Area Maintenance (CAM)

Clause (This can also be accomplished in the Real Estate Lease by adding a clause. In the Real Estate Lease clause the Payment Auditable check box must be checked to cause the Audit Details section to appear.) 2.14.1.1. Lease Abstractor will log in. 2.14.1.2. Select a Lease Abstract.


2.14.1.3. Navigate to the OPEX/CAM tab. 2.14.1.4. Enter the Clause Details section information with information

from the source document. 2.14.1.5. Navigate to the CAM Audit Setup sub tab and fill in the

parameters for how auditing will be performed on CAM expenses. Information will be outlined in the source document and the information here will be used to determine when notifications are sent, reconciliation records generated, reference base years for caps, etc.

2.14.1.6. Define the Calculation Rules: 2.14.1.6.1. Rule 1 – The lower of the Prorated Share due or

the Previous Years Charges * Cap Growth Percent.

2.14.1.6.2. Rule 2 – The lower of the Prorated Share due or the Base Year Cap Amount * (Number of Years * Cap Growth Percent).

2.14.1.6.3. Rule 3 – The lower of the Previous Year Charges * CPI Percent or the Previous Years Charges * Cap Growth Percent

2.14.1.6.4. Rule 4 – The lower of the Previous Year Charges * CPI Percent or the Base Year Cap Amount * (Number of Years * Cap Growth Percent)

2.14.1.6.5. Rule 5 – The lowest of Prorated Share due or Base Year Cap amount * (Number of Years * Increase Percent) or the Previous Years Charges * Cap Growth Percent

2.14.1.6.6. Rule 6 – The lowest of Prorated Share due or the Previous Year Charges * Increase Percent or the Previous Years Charges * Cap Growth Percent

2.14.1.7. Define logic of Payment Reconciliation creation The Payment Reconciliation report(s) are created starting on the First Billing end date and the next is created Payment Frequency.

2.14.1.8. Navigate to the Services Included sub-tab. Click the Find button and then select applicable services to be reconciled. Once the services are selected, input the estimated cost (for the entire building or property not just the lease rented area) and the user can override the proportionate shares that default from the General tab for contractual share obligations. Check the Apply to Total Cap box, if the amount is to be calculated against the clauses total amount caps. Putting a dollar amount into the Service Cap Amount section on the editable query will apply a cap to the indicated service.

2.14.1.9. To add additional Services: 2.14.1.9.1. Go to the Tools menus and select Classifications. 2.14.1.9.2. Find the Service branch in the hierarchy.


2.14.1.9.3. Add required Service. 2.14.1.10. Navigate to the Services Excluded sub-tab. Click the Find

button and select services that will be explicitly excluded from the contract, and therefore omitted from the reconciliation totals owed.

2.14.1.11. Navigate to the CAM Schedule sub-tab. Click on the Monthly Schedule Wizard to add a payment schedule for CAM, based on the estimated amounts for the clause. The Generate Payment Schedule popup will appear. Fill in the form with the information from the source document and applicable accounting codes. Then click Create Schedule(s) to generate the clause payment schedule. This will be an estimated payment.

2.14.1.12. Navigate back to the Clause Details sub-tab. Click on Add Clause to commit the Wizard information into the CAM Clauses section.

2.14.1.13. If additional Allowance clauses are needed, select Clear Wizard and repeat Steps 5-11.

2.14.1.14. Click Save to save the Lease Abstract record information. 2.14.2. Payment Reconciliation 2.14.3. Log in as contract administrator. 2.14.4. Receive notification that a Payment Reconciliation is ready for

completion. 2.14.5. From the Contract menu select All Scheduled OPEX/CAM

Reconciliation. 2.14.6. An optional method to get to the Index Adjustment is to open the Real

Estate Lease in question and access it from the Payment Processes tab. 2.14.7. Open up the Payment Reconciliation form for which you want to do

reconciliation. 2.14.8. In the expense breakdown section fill in the Landlord Actual Amounts

for each service. These amounts are intended to be the property totals per the reconciliation frequency received from the Landlord.

2.14.9. Fill out all required fields. Then select Save. This causes the calculations to occur.

2.14.10. Fill out the Fixed Adjustment Amount. This is the amount that you want to use to manually adjust the calculated amount due/credited to the landlord.

2.14.11. Fill out the Tax Rate %. 2.14.12. Fill out the Amount Billed per Landlord. This is compared with what the

TRIRIGA system calculates your due/credit amount to be. 2.14.13. Final Amount to Process (Due or Credit) 2.14.14. Select Calculate on the Escrow Payment Details section. The TRIRIGA

system will calculate the new monthly escrow payment amount based per the calculation rule on the OPEX/CAM Clause Audit Details section.

2.14.15. Issue the reconciliation. Issuing the reconciliation will route it for approvals and close the window.


2.14.16. Complete the reconciliation. 2.14.17. The TRIRIGA system will adjust the remaining monthly escrow amount

and will schedule a one-time payment if required for any payment due, and an additional one-time payment to make up any shortage in escrow payment if one or more payments have already been made in the current period.


and loaded with data, the user has a license to the Real Estate module and the proper security permissions, describe the method of creating an amendment of a Real Estate Lease so that the Real Estate Lease is effectively amended to reflect new contractual changes.

SUBTASK(S): 2.15.1. Contract Administrator will log in. 2.15.2. Navigate to the Real Estate Contract, by using Contract > Real Estate

Contract Manager -> Real Estate Contract or Owned Property Contract. 2.15.3. Click Revise to edit the Real Estate Contract. 2.15.4. In the popup window presented, select Amendment. 2.15.5. Select Amendment Type and enter a description. 2.15.6. Select Continue. 2.15.7. The TRIRIGA system will make a complete copy of the current lease

including all options, clauses, payments, etc. The new lease will have a version number incremented by 1. The current Real Estate Lease will be set to a status of History and is associated to the new lease. It can be viewed from the History tab in the new lease.

2.15.8. Make your contract changes as necessary. 2.15.9. This can include new Clauses, Options, Payment Schedules, additional

of or reduction of leased space, etc. 2.15.10. Activate the Real Estate Contract. 2.16. Given that TRIRIGA is installed, the Portfolio is properly configured

and loaded with data, the user has a license to the Real Estate module and the proper security permissions, describe the method for defining and processing indexed rent adjustments so that Real Estate Lease rent payments are updated with the new indexed amounts.

SUBTASK(S): 2.16.1. Set the Index in Payment Schedule. 2.16.2. Sign in to TRIRIGA. 2.16.3. Select Real Estate Lease or Lease Abstract to update. 2.16.4. Go to the Clauses, Options & Terms tab and select the Rent Clause or

go to the Rent clause tab. 2.16.5. Check the check box next to the field "Does lease have index based

adjustments?" (Abstract) or “Includes Index Adjustment?” (RE Lease) 2.16.6. In the Index Adjustments section, fill out the Cost Index field.


2.16.7. Fill out the Base Year, Base Index Date, and Base Index. 2.16.8. Fill out the First Adjustment Date and the Adjustment frequency. These

two values drive the logic for when and how often the Index Adjustment report is created.

2.16.9. Create a valid Payment Schedule on the Rent Schedules sub tab. Index Reporting

2.16.10. Sign in to TRIRIGA. 2.16.11. From the Contracts menu select All Scheduled Index Adjustments from

the Payables menu. 2.16.12. An optional method to get to the Index Adjustment is to open the Real

Estate Lease in question and access it from the Payment Processes tab, using the Index Adjustment Calcs Processing Details sub-report in the query presented

2.16.13. Open the Index Adjustment Calculator record and fill out the required fields. Using this calculator you can look up the last index value, enter the new index, or use an average index for the new index value. When the new index value is in the New Index field, select Calculate. The TRIRIGA system will calculate the actual adjustment based on the min and max % thresholds 2.16.13.1. Issue the Index Adjustment Calculator. This action will route

the Index Adjustment for review and approval. 2.16.13.2. Complete the Index Adjustment Calculator. 2.16.13.3. The TRIRIGA system will update the payments with the new

adjusted amount.


Section 3 - Real Estate Transaction Management

3.1. Given that TRIRIGA installed, a license to use the Real Estate module,

user has appropriate security permissions, CTQ Templates, RE Transaction Plan Templates, Real Estate Contract templates have all been properly created as necessary, all application settings are properly configured as necessary; describe the real estate transaction lifecycle within Tririga so that the consultant can properly advise their customers’ of the process flow.

SUBTASK(S): 3.1.1. Create Real Estate Portfolio Plan.

3.1.1.1. Record Strategic initiatives details. 3.1.1.2. Record budget and forecast details. 3.1.1.3. Record merger and acquisition details.

3.1.2. Create Real Estate Implementation Plan. 3.1.3. (Optional starting point) Create RE Action Request. 3.1.4. Create Real Estate Transaction Plan.

3.1.4.1. Create Transaction Types (RE Projects of various types). 3.1.4.1.1. (Optionally) Create Real Estate Transaction Plan.

3.1.4.2. Enter the completed transaction details in the „Close-Out‟ tab 3.1.4.3. Initiates Real Estate Contract process.


3.2. Given that TRIRIGA installed, a license to use the Real Estate module,

user has appropriate security permissions, create RE Action Request as an entry point to the RE Transaction Plan so that a real estate requirement has been documented.

SUBTASK(S): 3.2.1. Sign in with the proper requestor role.


3.2.2. Select Projects -> Real Estate from the Menu Bar. 3.2.3. Expand Requests in the Related Links – Real Estate portal section. Click

Create an RE Action Request. 3.2.4. A new Real Estate Action Request opens up. Populate as necessary.

3.2.4.1. „Request is for‟ identifies for whom this request is being placed. 3.2.4.1.1. If „Request is for‟ Someone Else, populate the

Requested For Section. 3.2.4.1.2. Requested By Section is auto populated with your

information. 3.2.4.2. Lease / Owned Property Contracts Affected, find any contracts

that are affected. 3.2.4.3. Describe Your Request, provide a brief description. 3.2.4.4. Need Description, populate the various parameters that are

required for the transaction. 3.2.4.4.1. Type of Action, this is a Request Class value that will

be used with the associated Service Plan to determine if a project or task should be created. These Service Plans are very configurable for different situations.

3.2.4.5. Desired Geographic Location – select the appropriate Geography. 3.2.4.6. Required For Organization – select the appropriate Organization. 3.2.4.7. Transaction Plan – this will be populated after the RE Action

Request is submitted and approved. 3.2.5. Submit the Real Estate Action Request, this will route it for Approval if

configured to do so. If not the RE Action Request will automatically be approved and will create a Transaction Plan based on the „Type of Action‟ selected. 3.2.5.1. If you are not ready to Submit the RE Action Request, click

Create Draft which will save your work. 3.3. Given knowledge of real estate, summarize the benefits of using a

Real Estate Transaction Plan so that the benefits can be explained to the client.

SUBTASK(S): 3.3.1. The Real Estate Transaction Plan helps the client to capture all the

relevant data needed to support real estate decisions and includes functionality that ensures visibility and clarity. To provide a financial comparison across various scenarios.

3.3.2. It applies to: purchases, leases, critical dates, financials, non-financials, condition, clauses, expirations, terminations, leases and subleases

3.3.3. The entire lifecycle is supported: Acquisition, Disposition, Expiration, Termination, Current Terms, Lease and Sublease.

3.3.4. Steps: 3.3.4.1. Identify transaction scenarios. 3.3.4.2. Create transaction plan.


3.3.4.3. Create a Real Estate (RE) project. 3.3.4.4. Close project. 3.3.4.5. Begin Real Estate Contract Mgmt Process.

3.3.5. The Transaction Plan business object can be accessed using: (1) Real Estate Portfolio Planning or (2) Real Estate Action Request.

3.3.6. For each transaction, a set of scenarios, or sequence of event can be executed. A scenario captures one or more transactions often required to arrive at a real estate solution.

3.3.7. Based on the scenarios, the client can select the transaction type that provides the best of financial and non-financial benefits.


3.4. Given that client requires an understanding of the product features

summarize the benefits of using RE Projects so as to provide a positive understanding of the value and capability of the feature set.

SUBTASK(S): 3.4.1. The various RE Projects provide the ability to effectively track the costs,

leases, and occupancy issues associated with a property. The IBM TRIRIGA application can be used to identify the transaction type and facilitates easy access to the real estate transaction.

3.4.2. For example, if an organization wants to increase its headcount, it requires more space. The organization can dispose the current property and acquire a new one, or it can acquire a building for lease.

3.4.3. In the IBM TRIRIGA application, the transaction types can be accessed individually as projects. They also can be created through a transaction plan. The RE Transaction Type records can be created in several ways: 3.4.3.1. The transaction type can be created while creating an „RE

Transaction Plan‟. 3.4.3.2. RE Projects can be created from the Real Estate Transaction

home portal. 3.4.3.3. RE Projects can also be created from the results page of the

specific transaction type. 3.4.3.4. RE Projects can be created through Requests and Service Plan

record automation. 3.4.4. RE Project Acquisition: Acquiring a property through purchase is termed

an Acquisition. When organizations or individual parties acquire a property or a building, it becomes essential for them to capture necessary details such as the contacts, financial data pertaining to the acquisition transaction, and tasks associated with the acquisition.

3.4.5. RE Project Disposition: The Disposition transaction is used when a property is being sold by one party to another. When an organization plans to move its workplace, it can dispose the current property and acquire or lease a new accommodation. Thus, the „RE Project Disposition‟ record is used to track necessary details when a disposition type transaction is being generated.


3.4.6. RE Project Lease: The „RE Project Lease‟ relates to a circumstance wherein one individual or group uses the property for a specified period of time and price. For example, instead of acquiring a property, it is possible for an organization to obtain the property on lease for a fixed duration. In such cases, the lease agreement between the two parties governs the terms and conditions, such as the time period for which the property can be used, and the amount to be paid as lease.

3.4.7. RE Project Sublease: A Sublease is a transaction process in which one party is leasing a property from the owner, but instead of using it, they lease it to another party. When an organization owns a property for lease, which in turn decides to lease a portion or the whole property to another person/organization, this is referred to as a sublease. The „RE Project Sublease‟ record is used when a sublease applies.

3.4.8. RE Project Expiration: The Expiration transaction is used when the duration for which the property is leased has elapsed. For example, when an organization acquires a property for ten years, the lease expires after the tenth year. The „RE Project Expiration‟ record is used to record all of the details pertaining to the expiration of the lease.

3.4.9. RE Project Termination: Termination is the premature closing of a contract (i.e., the contract pertaining to a leased or rented property can be terminated well before the actual expiry date). For example, when an organization acquires a property for lease for ten years, the lease can be closed before the ten-year term, which is referred to as termination. The „RE Project Termination‟ record enables the users to track all of the relevant details pertaining to the termination process.

3.4.10. RE Project Current Terms: Current terms are used to describe the contractual data between the individuals with whom the lease agreement is signed. The agreement between them describes the terms and conditions pertaining to the lease. The agreement can either be a rental type or lease type.


Section 4 - Real Estate Common Functionality

4.1. Given knowledge of real estate and TRIRIGA, describe the interaction

between Real Estate Contracts and portfolio so that portfolio elements that the Real Estate Contracts reference are identified.

SUBTASK(S): 4.1.1. Describe relationships with People.

4.1.1.1. Contact Roles – People are associated with a records functional Contact Roles, such as Contract Administrator, from Employees.

4.1.1.2. Tenant, Landlord, Management Company and Guarantor Contacts from External Contacts.

4.1.2. Define relationships with Organizations. 4.1.2.1. Tenant Organization – identifies the tenant in the contract. 4.1.2.2. Landlord Organization – identifies the landlord in the contract. 4.1.2.3. Guarantor Organization – identifies the Guarantor in the contract. 4.1.2.4. Management Company Organization – identifies the

management company in the contract. 4.1.2.5. Remit To – identifies the remit to for payments for accounting. 4.1.2.6. Default Assignee – identifies the organization that is assigned

service tasks, if so defined. 4.1.3. Locations:

4.1.3.1. Primary Location – identifies the building that the lease is for. 4.1.3.2. Premise Locations – identifies the specific building, floor, and/or

space that is referenced in the contract. 4.2. Given that TRIRIGA is installed, the Portfolio is properly configured

and loaded with data, the user has a license to the Real Estate module and the proper security permissions, describe the method for requiring Real Estate Lease Contact roles so that RE Contract has proper contact roles defined.

SUBTASK(S): 4.2.1. Contact Roles

4.2.1.1. Define the required Contact Role. 4.2.1.1.1. The Contract Administrator receives the system

generated notifications throughout the life of the contract.

4.2.1.1.2. The Functional role is Contract Administrator and is associated to a People record. The person associated can change but the role remains the same.

4.2.1.2. Describe defining Contact Role Rule definitions. 4.2.1.2.1. Log in to TRIRIGA. 4.2.1.2.2. In the Tools menu select Contact Roles from the

General section of System Setup.


4.2.1.2.3. To create a new rule click Add or select an existing one to revise.

4.2.1.2.4. Rules are defined by Business Object (Real Estate Contract) and can be further narrowed in scope by selecting a specific form with in the Group. In the example this rule for the Contract Administrator role applies to all forms in the Contract Group. It is also defined to Require Exactly One. Using this rule the system, on Created Draft action, will check and verify that a person has been associated to this role. Other choices are Available But Not Required which causes the role to be displayed in the initial find action or Requires At Least One. This rule will also be checked by the system on Create Draft to ensure at least one role has been created

4.2.1.2.5. Click Activate to complete the rule.

4.3. Given TRIRIGA is installed, the Portfolio is properly configured and

loaded with data, the user has a license to the Real Estate module and the proper security permissions, describe the different notifications that are used in a Real Estate Lease and how they can be generated in the TRIRIGA Real Estate module, so that .

SUBTASK(S): 4.3.1. Describe system generated notifications for the Real Estate Lease.

4.3.1.1. Notifications are generated and scheduled when the contract is Activated.

4.3.1.2. Expiration Notice – Notification is generated to be sent the duration specified in Expiration Reminder before the Base Lease Expiration Date.


4.3.1.3. Legal Notice – Notification is generated to be sent the duration specified in Expiration Reminder before the Base Lease Expiration Date.

4.3.1.4. Options have three notifications: 4.3.1.4.1. Exercise Notice – Notification is generated to be sent

6 months before the Effective Date. 4.3.1.4.2. Year Exercise Notice – Notification is generated to

be sent 1 year before the Effective Date. 4.3.1.4.3. Must Exercise By – Notification is generated to be

sent the duration specified in Must Notify Within before the Effective Date.

4.3.2. Describe the creation of Manual Notifications: 4.3.2.1. Select a Real Estate to edit. 4.3.2.2. On General tab, Notifications section click on the Add action. 4.3.2.3. Enter Name, Description, Target Date, Notify how long prior?

duration and Notify Role. 4.3.2.4. Click Create.

4.4. Given that client requires an understanding of the product benefits,

summarize document storage so as to provide a understanding of the value and capability of the feature set.

SUBTASK(S): 4.4.1. The TRIRIGA Application Platform has a document management feature

that allows applications to access documents and data files stored on the server.

4.4.2. Document sections exist in many business objects so that files can be associated to the business object either for reference of for historical purposes.

4.4.3. Document Management also can be used as a standalone application to enforce version control and configuration management.

4.4.4. Any type of files can be managed, including graphics, CAD, word processing documents and text files.

4.4.5. Document Manager allows users to interactively work with documents, folders, and publications.

4.4.6. Document Manager looks and works much like file managers that are available on most kinds of computers. The difference is that in addition to having the contents of a file, a document also has a Document Record that contains additional information about the document.

4.4.7. Document Manager includes a Check In / Check Out feature to maintain control of access and versions.

4.4.8. In a Real Estate Lease record for example, The Notes and Documents Tab includes a Related Documents Section which can be used to upload the scanned image, or electronic copy of the original lease document for user to view when needed.


4.5. Given expertise in real estate, define financial terminology so that the consultant can explain financial terminology to the client.

SUBTASK(S): 4.5.1. Amortization- the gradual reduction of a debt by means of periodic

payments. 4.5.2. Loan to Value Ratio– the percentage of a property‟s value that is financed

with borrowed funds. 4.5.3. Negative Leverage - use of debt financing, which reduces the percentage

return to equity because the rate of interest on the debt exceeds the free and clear rate of return on equity.

4.5.4. Capitalization – the process of estimating value by discounting stabilized net operating income by an appropriate rate.

4.5.5. Discount Rate – the rate used to discount future cash flows to determine present value.

4.5.6. Residual Value – the value remaining at the end of a lease or other holding period.

4.5.7. Time Value of Money- the idea that a currency received today is worth more than one received at some future date assuming inflation drives up prices; the rationale behind compounding (for the future value) or discounting (for present value).


Estate module and the proper security permissions, describe the out-of-the-box reporting so that the consultant understands the reporting available in the TRIRIGA application.

SUBTASK(S): 4.6.1 AR Aging Report Summary breakdown of Accounts Receivable, Real

Estate contracts showing tenant total outstanding balance for these categories: Current, 30-60 Days, 60-90 Days, Over 90 Days.

4.6.2 AR RE Contract Payment Details

Paid payment line items for Accounts Receivable, Real Estate Contracts.

4.6.3 Accounts Payable History

Payment Line Item detail for contracts including payment processing details.

4.6.4 All Future Lease Obligations

Lease Obligation report showing annual payment summary information for 5 years in the future.

4.6.5 Amortization Schedule Summary Report

Financial Summary report for Real Estate Contracts.

4.6.6 Contract Payment Details

Payment Line Item detail for contracts including increases, decreases, and accrual.

4.6.7 Contract Summary Report

1 page per contract overview detailing: Area Summary, Utilization Summary, Space Use Agreement Assignments and Financial Summary (Expenses/Receivables).


4.6.8 Future AR Payments 5 Year future Accounts Receivable Payment Summary by Contract.

4.6.9 Future Rent Obligations (10K)

5 Year future Accounts Payable Payment Summary by Contract.

4.6.10 Lease Assumption Audit Log

Field Level Audit Report for Lease Assumption changes, by Contract.

4.6.11 Lease Critical Dates Report

Option Notification Detail by Contract.

4.6.12 Portfolio Summary Report

Leased Location Summary, by Contract with Rentable Area and Remaining Obligation.


Next Steps

1. Take the IBM TRIRIGA Real Estate V10.3 Application Consultant assessment test using the promotion code csistudy for $10 ($20 USD savings).

2. If you pass the assessment exam, visit pearsonvue.com/ibm to schedule your testing sessions. Use the promotion code tivguide to receive 20% off.

3. If you failed the assessment exam, review how you did by section. Focus attention on the sections where you need improvement. Keep in mind that you can take the assessment exam as many times as you would like ($10 per exam), however, you will still receive the same questions only in a different order.

http://www-03.ibm.com/certify/tests/samC2010-506.shtml

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