AC290 - Real Estate Management

AC290 Real Estate Management AC290

R/3 System Release 46C 04/04/2001

0

AC290 Real Estate Management ..................................................................................................................................0-1

Copyright ..................................................................................................................................................................0-2

Financial Accounting I..........................................................................................................................................0-4

Course Prerequisites..............................................................................................................................................0-5

Target Group.........................................................................................................................................................0-6

Contents ................................................................................................................................................................0-7

Course Objectives .................................................................................................................................................0-8

Course Objective(s)...............................................................................................................................................0-9

Course Content....................................................................................................................................................0-10

Course Overview.................................................................................................................................................0-11

Main Business Scenario ......................................................................................................................................0-12

Integration of Real Estate Management in R/3 ...................................................................................................0-13

Course Material and Additional Information ......................................................................................................0-14

Tips and Tricks....................................................................................................................................................0-15

Help! Emergency! ............................................................................................................................................0-16

Checklist for Online Service System Messages ..................................................................................................0-17

Master Data...............................................................................................................................................................1-1

Master Data: Unit Objectives................................................................................................................................1-2

Course Overview / Master Data ............................................................................................................................1-3

Master Data: Business Scenario............................................................................................................................1-4

R/3 Organizational Structures ...............................................................................................................................1-5

Overview of Organizational Structure ..................................................................................................................1-6

Master Data of Real Estate Objects.......................................................................................................................1-7

Master Data (Organizational Structures) Relationship to Related Applications ...................................................1-8

Relationship Between RE Master Data and PM....................................................................................................1-9

Availability .........................................................................................................................................................1-10

Rental Unit ..........................................................................................................................................................1-11

Mass Change of Rental Units..............................................................................................................................1-12

Partner Management ...........................................................................................................................................1-13

Partner Information .............................................................................................................................................1-14

Customizing Master Data....................................................................................................................................1-15

Customizing Partner Management ......................................................................................................................1-16

Master Data Reports............................................................................................................................................1-17

Sets for Real Estate Objects ................................................................................................................................1-18

List Structure.......................................................................................................................................................1-19

Navigation...........................................................................................................................................................1-20

Editing Reports ...................................................................................................................................................1-21

Master Data: Unit Summary ...............................................................................................................................1-22

Exercise Data ......................................................................................................................................................1-23

Master Data Solutions .........................................................................................................................................1-27

Rental ........................................................................................................................................................................2-1

Rental: Unit Objectives .........................................................................................................................................2-2

Course Overview...................................................................................................................................................2-3

Rental: Business Scenario .....................................................................................................................................2-4

Rental ....................................................................................................................................................................2-5

Partner Roles in the Rental Process.......................................................................................................................2-6

Conditions in the Rental Process...........................................................................................................................2-7

Rental Agreement .................................................................................................................................................2-8

Contract-Specific Additional Data ........................................................................................................................2-9

Number Assignment for Rental Agreements ......................................................................................................2-10

Collective Rental Agreement ..............................................................................................................................2-11

Condition Types..................................................................................................................................................2-12

Notice..................................................................................................................................................................2-13

Periods of Notice.................................................................................................................................................2-14

Changing Tenant with Customer Account in Active Rental Agreements ...........................................................2-15

Tenant Information .............................................................................................................................................2-16

Rental Agreement Life Cycle..............................................................................................................................2-17

Customizing Rental Application and Offer.........................................................................................................2-18

Customizing Rental Agreement ..........................................................................................................................2-19

Customizing Conditions......................................................................................................................................2-20

Rental Reports.....................................................................................................................................................2-21

Rental: Unit Summary.........................................................................................................................................2-22

Rental: Exercises.................................................................................................................................................2-23

Rental Solutions ..................................................................................................................................................2-25

Correspondence.........................................................................................................................................................3-1

Correspondence: Unit Objectives..........................................................................................................................3-2

Course Overview...................................................................................................................................................3-3

Correspondence: Business Scenario......................................................................................................................3-4

Correspondence - Overview..................................................................................................................................3-5

Layout and Content ...............................................................................................................................................3-6

Letter Layout in SAPscript....................................................................................................................................3-7

Correspondence Activities ....................................................................................................................................3-8

Example of Correspondence Role Type Usage.....................................................................................................3-9

Correspondence Group / Correspondence Activity.............................................................................................3-10

Letters .................................................................................................................................................................3-11

Text Modules ......................................................................................................................................................3-12

Example: Correspondence ..................................................................................................................................3-13

Useful Functions .................................................................................................................................................3-14

Overview of Terms Used in Correspondence .....................................................................................................3-15

Overview of Terms Used in Correspondence .....................................................................................................3-16

Correspondence: Unit Summary .........................................................................................................................3-17

Correspondence Exercises ..................................................................................................................................3-18

Correspondence Solutions...................................................................................................................................3-19

Rental Accounting.....................................................................................................................................................4-1

Rental Accounting: Unit Objectives .....................................................................................................................4-2

Course Overview...................................................................................................................................................4-3

Rental Accounting: Business Scenario .................................................................................................................4-4

Integration of RE in FI ..........................................................................................................................................4-5

Rental Accounting Processes ................................................................................................................................4-6

Partner with Customer Account ............................................................................................................................4-7

Debit Position Postings .........................................................................................................................................4-8

Incoming Payment Postings..................................................................................................................................4-9

Cash Flow ...........................................................................................................................................................4-10

Debit Position Reversal.......................................................................................................................................4-11

Rental Units: Usage and Debit Position..............................................................................................................4-12

Controlling (CO) View .......................................................................................................................................4-13

Account Determination Debit Position ...............................................................................................................4-14

Account Determination Debit Position - Procedure............................................................................................4-15

Account Determination Without Condition Reference .......................................................................................4-16

Account Maintenance..........................................................................................................................................4-17

One-Time Postings in Rental Agreements ..........................................................................................................4-18

Account Determination: Application and Procedure ..........................................................................................4-19

Reference Flow Types.........................................................................................................................................4-20

New Condition Type...........................................................................................................................................4-21

Incoming Payments Processing...........................................................................................................................4-22

Payment Program - Collection Authorization .....................................................................................................4-23

Dunning: Starting the FI Program.......................................................................................................................4-24

Dunning: Special RE Features ............................................................................................................................4-25

Rental Accounting Reports .................................................................................................................................4-26

Rental Accounting: Unit Summary .....................................................................................................................4-27

Rental Accounting Exercises ..............................................................................................................................4-28

Rental Accounting Solutions...............................................................................................................................4-30

Rent Adjustments......................................................................................................................................................5-1

Rent Adjustment: Unit Objectives ........................................................................................................................5-2

Course Overview...................................................................................................................................................5-3

Rent Adjustment: Business Scenario ....................................................................................................................5-4

Rent Adjustment Methods.....................................................................................................................................5-5

Rent Adjustment Process ......................................................................................................................................5-6

Rent Adjustment Data Relevant For Master Data Objects....................................................................................5-7

Free Adjustment, Adjustment of Any Conditions, Garage Rent...........................................................................5-8

Generate New Conditions - Example of Usage.....................................................................................................5-9

Index-Linked Rent Adjustment...........................................................................................................................5-10

Frequency and Delay ..........................................................................................................................................5-11

Representative List of Rents ...............................................................................................................................5-12

Comparative Apartments and Groups (1) ...........................................................................................................5-13

Comparative Apartments and Groups (2) ...........................................................................................................5-14

Expert Opinion....................................................................................................................................................5-15

Construction Measures: Modernizations.............................................................................................................5-16

Area Change........................................................................................................................................................5-17

Parameter Overview............................................................................................................................................5-18

Customizing Rent Adjustment ............................................................................................................................5-19

Rent Adjustment: Unit Summary........................................................................................................................5-20

Rent Adjustment Exercises .................................................................................................................................5-21

Rent Adjustment Solutions .................................................................................................................................5-23

Service Charge Settlement ........................................................................................................................................6-1

Service Charge Settlement: Unit Objectives .........................................................................................................6-2

Course Overview...................................................................................................................................................6-3

Service Charge Settlement: Business Scenario .....................................................................................................6-4

Overview: Service Charge Settlement .................................................................................................................6-5

Participation ID of SCS.........................................................................................................................................6-6

Structure of Service Charge Settlement ................................................................................................................6-7

Settlement Unit .....................................................................................................................................................6-8

Master Settlement Unit (Master SU).....................................................................................................................6-9

Account Determination Keys: Settlement Unit and Participation ID..................................................................6-10

Account Determination Keys for the Settlement.................................................................................................6-11

Posting Service Charges......................................................................................................................................6-12

Full Settlement ....................................................................................................................................................6-13

Example: Occupancy of a Rented Object............................................................................................................6-14

Example: Costs ...................................................................................................................................................6-15

Example: Calculation..........................................................................................................................................6-16

Posting Procedures - Service Charge Settlement ................................................................................................6-17



Debit Position and Incoming Payments (with SC)..............................................................................................6-20

Clearing Advance Payments (1)..........................................................................................................................6-21



Clearing Advance Payments - Actual Principle ..................................................................................................6-24

Clearing Advance Payments - Planned Principle................................................................................................6-25

Settlement Variant...............................................................................................................................................6-26

Customizing Service Charge Settlement.............................................................................................................6-27

Account Determination for Service Charge Settlement ......................................................................................6-28

Service Charge Groups .......................................................................................................................................6-29

External Heating Expenses Settlement................................................................................................................6-30

External Heating Expenses Settlement DME.....................................................................................................6-31

Carrying out the Settlement ................................................................................................................................6-32

Service Charge Settlement Reports.....................................................................................................................6-33

Service Charge Settlement: Unit Summary.........................................................................................................6-34

Service Charge Settlement Exercises ..................................................................................................................6-35

Service Charge Settlement Solutions ..................................................................................................................6-37

Sales-Based Rent and Sales-Based Rent Settlement .................................................................................................7-1

Sales-Based Rent: Unit Objectives .......................................................................................................................7-2

Course Overview...................................................................................................................................................7-3

Sales-Based Rent: Business Scenario ...................................................................................................................7-4

Sales-Based Rental Agreement .............................................................................................................................7-5

Sales-Based Rental Agreement with Several Sales Types and Sales According to Quantity ...............................7-6

Overview of Sales-Based Rent Settlement............................................................................................................7-7

Example Sales-Based Rental Agreement ..............................................................................................................7-8

Clearing Advance Payments .................................................................................................................................7-9

Sales-Based Rent Settlement Reports .................................................................................................................7-10

Sales-Based Rent Settlement: Unit Summary .....................................................................................................7-11

Sales-Based Rent Exercises ................................................................................................................................7-12

Sales-Based Rent Solutions.................................................................................................................................7-13

General Contract .......................................................................................................................................................8-1

General Contract: Unit Objectives ........................................................................................................................8-2

Course Overview/General Contract (Tenant Rental) ............................................................................................8-3

General Contract: Business Scenario ....................................................................................................................8-4

Overview of Contract Data ...................................................................................................................................8-5

Conditions and Periodic Postings..........................................................................................................................8-6

Resubmission ........................................................................................................................................................8-7

Contract Renewal..................................................................................................................................................8-8

Distribution ...........................................................................................................................................................8-9

Contract Hierarchy - Schematic Display.............................................................................................................8-10

Tenant Rental and Availability ...........................................................................................................................8-11

Relationship Between Availability and Tenant Rental .......................................................................................8-12

Tenant Rental Overview .....................................................................................................................................8-13

General Contract Overview.................................................................................................................................8-14

General Contract & Rental Agreement - Differences .........................................................................................8-15

General Contract: Unit Summary........................................................................................................................8-16

General Contract Exercises .................................................................................................................................8-17

General Contract Solutions .................................................................................................................................8-19

Controlling ................................................................................................................................................................9-1

Controlling: Unit Objectives .................................................................................................................................9-2

Course Overview...................................................................................................................................................9-3

Controlling: Business Scenario .............................................................................................................................9-4

CO Objects in Real Estate Management ...............................................................................................................9-5

Planning ................................................................................................................................................................9-6

Direct Actual Posting ............................................................................................................................................9-7

Direct Internal Activity Allocation .......................................................................................................................9-8

Settlement .............................................................................................................................................................9-9

Real Estate Controlling - Overview ....................................................................................................................9-10

Real Estate Profit Center (PC) ............................................................................................................................9-11

Controlling Reports.............................................................................................................................................9-12

Controlling: Unit Summary.................................................................................................................................9-13

Controlling Exercises ..........................................................................................................................................9-14

Controlling Solutions ..........................................................................................................................................9-16

Integration ...............................................................................................................................................................10-1

Integration: Unit Objectives................................................................................................................................10-2

Course Overview.................................................................................................................................................10-3

Integration: Business Scenario ............................................................................................................................10-4

Link to Master Data ............................................................................................................................................10-5

Functional Process in PM System.......................................................................................................................10-6

Plant Maintenance (RE � PM) ...........................................................................................................................10-7

Relationship Between RE Master Data and PM..................................................................................................10-8

Project System Integration (RE � PS)................................................................................................................10-9

Asset Accounting Integration (RE � AA) .......................................................................................................10-10

Continuous Process: From MM to FI................................................................................................................10-11

Integrated Reporting .........................................................................................................................................10-12

Integration Reports............................................................................................................................................10-13

Integration: Unit Summary ...............................................................................................................................10-14

Integration Exercises.........................................................................................................................................10-15

Integration Solutions .........................................................................................................................................10-16

Taxes.......................................................................................................................................................................11-1

Taxes: Unit Objectives........................................................................................................................................11-2

Course Overview.................................................................................................................................................11-3

Taxes: Business Scenario....................................................................................................................................11-4

Debit Position for Rentals Liable for Sales Tax (Output Tax) - Planned Principle.............................................11-5

Debit Position and Incoming Payment for Rental Liable to Tax - Planned Principle .........................................11-6

Debit Position for Rental Liable to Tax (Output Tax) - Actual Principle ...........................................................11-7

Debit Position and Incoming Payment for Rental Liable to Tax - Actual Principle ...........................................11-8

Option Tax - Input Tax .......................................................................................................................................11-9

Input Tax Treatment (Specific to Germany) .....................................................................................................11-10

Input Tax Treatment Steps ................................................................................................................................11-11

Tax Breakdown - Controlling the Postings .......................................................................................................11-12

Input Tax Distribution Adjustment by Service Charge Settlement ...................................................................11-13

Tax Reports .......................................................................................................................................................11-14

Taxes: Unit Summary .......................................................................................................................................11-15

Cross-Application Functions...................................................................................................................................12-1

Cross-Application Functions Unit Objectives.....................................................................................................12-2

Course Overview.................................................................................................................................................12-3

Cross-Application Functions: Business Scenario................................................................................................12-4

Workflow ............................................................................................................................................................12-5

Workflow - Editor ...............................................................................................................................................12-6

ASAP for RE.......................................................................................................................................................12-7

Process ................................................................................................................................................................12-8

Archiving ............................................................................................................................................................12-9

Validation and Substitution...............................................................................................................................12-10

Document Management/Optical Archive..........................................................................................................12-11

Authorizations...................................................................................................................................................12-12

Cross-Application Functions: Unit Summary ...................................................................................................12-13

Appendix.................................................................................................................................................................13-1

Appendix Overview ............................................................................................................................................13-2

Accounts Used in Standard System ....................................................................................................................13-3

IMG Functions ....................................................................................................................................................13-4

Deferral: Rents Paid in Advance.........................................................................................................................13-5

Accrual: Rent Paid in Arrears .............................................................................................................................13-6

Cash Deposit .......................................................................................................................................................13-7

Posting Activities - Own Usage (1).....................................................................................................................13-8

Posting Activities - Own Usage (1a)...................................................................................................................13-9

Posting Activities - Own Usage (2)...................................................................................................................13-10



Account Assignments of the Posting Activities ................................................................................................13-13

SCS Account Determination Own Usage .........................................................................................................13-14

Periodic Tasks ...................................................................................................................................................13-15

© SAP AG 1999

AC290 Real Estate Management

© SAP AG

ACAC

Real Estate ManagementReal Estate Management© SAP AG

AC290AC290

R/3 System Release 4.6B Status: December 1999 Material number: 5003 6322

© SAP AG 1999

Copyright 2000 SAP AG. All rights reserved.

Neither this training manual nor any part thereof maybe copied or reproduced in any form or by any means,or translated into another language, without the priorconsent of SAP AG. The information contained in thisdocument is subject to change and supplement without prior notice.

All rights reserved.

Copyright

Trademarks: Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

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UNIX®, X/Open®, OSF/1®, and Motif® are registered trademarks of The Open Group. HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Laboratory for Computer Science NE43-358, Massachusetts Institute of Technology, 545 Technology Square, Cambridge, MA 02139.

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SAP, SAP Logo, mySAP.com, mySAP.com Marketplace, mySAP.com Workplace, mySAP.com Business Scenarios, mySAP.com Application Hosting, WebFlow, R/2, R/3, RIVA, ABAP™, SAP Business Workflow, SAP EarlyWatch, SAP ArchiveLink, BAPI, SAPPHIRE, Management Cockpit, SEM, are trademarks or registered trademarks of SAP AG in Germany and in several other countries all

over the world. All other products mentioned are trademarks or registered trademarks of their respective companies.

Design: SAP Communications Media

© SAP AG 1999

Financial Accounting I

Financial Accounting and Reporting

AC010 5 days

Asset AccountingAC305 4 days

Special Purpose Ledger

Human ResourcesEssentials I

HR051 1 day

Level 3Level 2

Travel ManagementTravel Expenses

AC270 3 daysTravel ManagementTravel Planning

AC275 2 days

@ACxxxxmoree-learnings

@AC010aChange Vendor or Customer Master Data via Internet

Human ResourcesEssentials II

HR052 2 days

@@@@

1 h

General Ledger/ Accounts Payable/ Accounts Receivable Configuration

AC200 3 days

Periodic Processing in Accounts Payable/ Accounts Receivable

AC201 2 days

Financial ClosingAC205 2 days

x h

AC220 5 days

Additional Financial Functionality

AC260 1 day

@AC200aInterest Calculation of open and/or cleared items @@

2 h

© SAP AG 1999

Course Prerequisites

MINIMUM REQUIREMENTS:

AC010 Financial Accounting and Reporting

RECOMMENDED:

AC200 Accounts Payable/Receivable

AC040 Cost Management and Controlling

Note: If you intend to use the FI-AA, EC-PCA, PM or PS components, we recommend attending these courses as well.

© SAP AG 1999

ParticipantsProject team responsible for the implementation of the SAP Real Estate Management component

Duration: 5 days

Target Group

Notes to the user The training materials are not teach-yourself programs. They complement the course instructor's explanations. There is space for you to write down additional information on the sheets.

© SAP AG 1999

Course Goals

Course Objective(s)

Course Content

Course Overview Diagram

Main Business Scenario

Course Introduction

Contents

© SAP AG 1999

This course instructs you about the functions of SAP Real Estate Management and how to manage your real estate portfolio.

The integration with other applications is also explained.

You will also learn how to make basic system settings.

Course Objectives

© SAP AG 1999

Master data

Rental

Rental agreement management

Correspondence

Rental accounting

Operating and heating expenses settlement

Rent adjustment

General contract (tenant rental)

Integration (FI-AA, EC-PCA, CO, PM, PS)

Information system

Customizing

At the conclusion of this course, you will be able to describe:

Course Objective(s)

© SAP AG 1999

Unit 8 General Contract(Tenant Rental)

Unit 9 Controlling

Unit 10 IntegrationAsset Accounting/Plant Maintenance/Project System

Unit 11 Taxes

Unit 12 Cross-ApplicationFunctions

Unit 1 Master Data

Unit 2 Rental

Unit 3 Correspondence

Unit 4 Rental Accounting

Unit 5 Rent Adjustment

Unit 6 Service Charge Settlement

Unit 7 Sales-Based RentSettlement

Introduction

Appendix

Exercises

Solutions

Course Content

© SAP AG 1999

Rent Adjustment

Rental Accounting Settlement

General Contract(Tenant Rental)

InformationSystem

Taxes§§

Cross-ApplicationFunctions

Integration

Correspondence

Controlling

Master Data

Rental

Course Overview

You use the R/3 Real Estate Management component to manage your real estate portfolio, incorporating integrated processes.

The main functions involve entering data for, managing and controlling tasks that involve revenues and handling the business processes related to rentals and settlements: Rental, application management, offers Rent collection, payment transactions, dunning Rent adjustment Service charge settlement Tenant rental agreement Controlling

© SAP AG 1999

Main Business Scenario

The IDES company manages real estate

IDES implements the R/3 System

You are a member of the implementation team

You map the following business processesRental

Rent collection, payment transactions, dunning

Rent adjustment

Service charge settlement

Management contract and owner settlement

© SAP AG 1999

Real Estate Management

•Payment (FI)•Dunning (FI)•Depreciation(FI-AA)

•Plant maintenance•Malfunction reports

•Imputed costs (vacancy)

•Profit center•Cost and revenue planning•CO settlement•Internal activity assignment

•Purchase orders•External services•Internal services•Material master•Service specifications

•Planning, budgetingand control of investments and constructionprojects(maintenance,redecoration, renovation, modernization)

Integration of Real Estate Management in R/3

CostsCostsRent book

Rent book

Mainten

ance

Assets

NewNew

building

building

SAP Real Estate Management is fully integrated with the Financial Accounting and Controlling application components in the R/3 System. You need to install these components to be able to use Real Estate Management.

The basic configuration can be extended according to your requirements; in particular Profit Center Accounting, Plant Maintenance, Project System, Asset Accounting and Materials Management are closely linked to Real Estate Management.

© SAP AG 1999

Application is described in the application documentation

Customizing is described in the Implementation Guide (IMG)

Create a rental agreement What numbers are assigned tothe rental agreements?

Post service charges Which service charge keys are permitted?

Make a settlement To which accounts are the settlement results posted?

Menu: Menu:Accounting Tools

Real Estate Management Business EngineerCustomizing

A CC

Course Material and Additional Information

This graphic shows the difference between the application and Customizing.

© SAP AG 1999

Tips and Tricks

When the hourglass is displayedCreate Session (4.5)

Stop Transaction (4.5)

Click here

© SAP AG 1999

Error scenario Solution

Long text error messageOnline documentation

ImplementationGuide (IMG)

Online Service System:Search for note

Online Service System:Error message

1.

2.

3.

4.

Help! Emergency!

© SAP AG 1999

Concise short textLong text:

How did I get here? (menu path, transaction, report)What has gone wrong?Where was I? (System? Client? Company code? Rental agreement?Object? Report variant? Spool number for saved dumps or lists?)Are there similar cases? Does the error only occur in certain cases?What is the error message?Release (for 4.0A and later Releases, system status. Use transaction FZ04 for Releases prior to 4.0A)

Assign application area: Real Estate from 1st half 2000 RE* (before that IS-RE*)Priority:

Very high: System breakdown (live system, critical project phase)High: Breakdown of important applicationsMiddle: Breakdown of individual programs, less important problemsLow: Interface, documentation,...

If necessary:Can we log on to your system?Client? User? Password?

Checklist for Online Service System Messages

SAP defines priorities as follows: Very high:

Breakdown of a live system or a system that is going live and is in a critical project phase High:

Breakdown of important applications, subprograms, live system or a system that is going live Middle:

The system is still working. A transaction or a program does not work (causing problems without severe consequences)

Low: User interface, documentation or requests for information

(C) SAP AG AC290 1-1

© SAP AG 1999

Object data

Partner data

Customizing

Introduction to Information System

Contents:

Master Data


© SAP AG 1999

At the conclusion of this unit, you will be able to:

List the master data used

Explain the relationship between the individual master data objects

Explain the effect of the usage type of a rental unit

Explain the concept of the business partner

Master Data: Unit Objectives


© SAP AG 1999

Rent Adjustment

Rental


GeneralContract(Tenant Rental)

InformationSystem

Taxes§§

Cross-Application Functions

Integration

Correspondence

Controlling

Master Data

Course Overview / Master Data


© SAP AG 1999

You create the master data that is essential for the rental and settlement processes

Master Data: Business Scenario


© SAP AG 1999

R/3 Organizational Structures

Each of these elements belongs to the client.

The following organizational elements are used to portray the business processes of external and internal accounting that are relevant for Real Estate Management:

Company code

Business area

Controlling area

The R/3 organizational structures such as company code, business area and controlling area are defined in FI or CO and not in Real Estate Management.


© SAP AG 1999

Overview of Organizational Structure

Controllingarea 2

Business areas

Company code

Controllingarea 1

Cost centers

Profit center

The organizational structures of internal and external accounting are subject to dependencies on each other as shown in the above graphic.

Note: More than one company code can belong to a controlling area. Business areas are independent of company code and controlling area.


© SAP AG 1999

Business entity

Property Building

Rental unit Rental unit

RoomsLand register

Company code

Master Data of Real Estate Objects

The most superior element in the hierarchy of Real Estate objects is the business entity. The business entity is assigned uniquely to a company code. The business entity comprises Real Estate objects that are handled in the same way. The business entity is usually made up of a group of buildings and properties sharing the same utilities and subject to the same tax regulations.

The number of buildings and/or properties belonging to a business entity are unlimited. The assignment of numbers to buildings and properties is only unique within the business entity itself (for internal number assignment). You can create a hierarchy of buildings (for instance one building part for each floor).

The rental unit represents the object that can be rented (buildings, properties, rooms and business entities CANNOT be rented). The number assignment of rental units is unique within the business entity. Rental units can be assigned to buildings or properties. The usage type is used to differentiate between rental units.

You can assign rental units to any building, including the higher-level ones in the hierarchy. However, we recommend that you only assign rental units to the lowest level in the hierarchy as this helps to maintain a clear overview.

You can keep a list of rooms available in a building. All rooms except common rooms can be assigned to rental units.

"Property in R/3 Real Estate refers to the land only and not the buildings on it. Land register data can be compiles for the properties.

Rental units with internal usage type 04 and 05 (parking spaces) do not have to be assigned to a property or a building.


© SAP AG 1999

BE

PR/BU

RU

RA

Adr BusAr PC CCtr Asset FL/WBS

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

xVacancy

xOwn usage

LOGICAL inheritance: If no entry is maintained for an object that is a lower-level object in the hierarchy, the entry for the higher-level object is taken for evaluation

PHYSICAL copying: If an entry is not explicitly made, the entry for the higher-level object is taken

x Attribute maintenance of objects possibleAdr AddressBusAr Business areaPC Profit centerCCtr Cost centerFL Functional locationWBS Work breakdown structureBE Business entityPR PropertyBU BuildingRU Rental unitRA Rental agreement

Master Data (Organizational Structures) Relationship to Related Applications

You can reduce master data maintenance with the logical inheritance. Logically inherited attributes do not have to be maintained for lower-level objects. We do not recommend individually maintaining the same attributes since this means that all changes must also be maintained individually. This could result in data inconsistency.

Physical copying is only possible when you create objects. If entries belonging to higher-level objects are changed at a later date, the lower-level object is not changed.


© SAP AG 1999

Relationship Between RE Master Data and PM

Assignment of functional locations to Real Estate objects

Business entity

Property

Building

Rental unit

OptionsAssignments may be made but are not automatically updated

Functional location is created automatically

Functional location is created and updated automatically

It is possible to restrict the assignment to 1:1 for each object type

The assignment of Real Estate objects (business entity, property, building and rental unit) to functional locations can be restricted to a 1:1 relationship for each object type. Every time you assign a functional location to a Real Estate object, the system checks to see if a relationship already exists between this functional location and another Real Estate object.

It is still possible to create functional locations for Real Estate objects automatically. You may specify if the system should simply create and assign a functional location or if it should be updated each time the Real Estate object is changed. Example: If you choose to make automatic assignments, the system takes account of the Real Estate object hierarchy; this means that the functional location hierarchy is adapted accordingly; if you now change the assignment of a building or you change the building hierarchy itself, the functional location hierarchy is updated automatically.

Menu path in Customizing: Real Estate → Basic Settings → Set Link to Plant Maintenance → Determine Link

See also the unit on Integration.

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Time-dependent attributes that describe the availability

In own portfolioTenant-rentedNot availablePartly unavailableAvailable

13 2

Availability

Objects:Business entityBuildingPropertyRental unit

You can display and change the availability of Real Estate objects (business entity, building, property, rental unit).

Note how availability affects the rental function: you can only rent objects with status "In own portfolio", "Tenant-rented" or "Available". You cannot rent objects that are "Not available" or "Partly unavailable".

See also the unit on "General Contract - Tenant Rental".

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Usage Type (controls field status)

Livingroom

Bed-roomNursery

Scale 1:75

Rental unitRental unit

BuildingBuildingPropertyProperty

Location on floorLocation on floor

FixtFixt.& Fittings.& FittingsRoomsRooms

AreasAreasConditionsConditions

ApportionmentApportionmentunitsunits

OwnerOwnerPartnerPartner

DescriptionDescriptionAddressAddress

NotesNotes

StatusStatusOccupancy typeOccupancy typeVacancy reasonsVacancy reasons

MetersMeters

Rental Unit

The rental unit represents the object that can be rented. It is the basis for concluding the rental agreement. A rental unit cannot be assigned to a building and a property at the same time.

You must specify the usage type when you create a rental unit. Usage types can be customized and they always refer to a usage category: "commercial", "residential" or "mixed usage".

The usage type specifies which screens and fields must/can be maintained for the rental unit. (Field status control)

The usage type can specify which area types are permitted and those that are obligatory. The usage type specifies whether a particular rental unit participates in the service charge settlement or not.

The "category" of the usage type (commercial, residential, mixed usage) specifies the adjustment types and rental agreement types that are permitted for the contracts of this rental unit.

You can create notes for the rental unit. You can also use the "Send object with note" function for rental units, as for all other master data objects (see also unit on "Cross-Application Functions".

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Mass Change of Rental Units

Mass Change of Rental UnitsIndividual values (without default value)

RU1: Business area 1000



One universal value (with default value)




Mass change allows you to change existing values and maintain new ones for a select group of rental units.

If there are already values for the field that you want to maintain by mass change, these values are pre-assigned to the processing list where you can modify them.

In this case, we recommend working without default values as these default values would be used for pre-assignment.

If you enter a default value, all entries are pre-assigned this value. If there are no values for the field, we recommend using this method.

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Naturalperson

Organization

Business partner

Partner Management

Roles:

Tenant(private)

Tenant(com.)

Guarantor

Business partners can be natural persons or organizations. In an application, a partner always appears in the form of a partner role, for instance:

Caretaker of a building Owner of a rental unit Tenant of a rental agreement

If a partner already exists in the system with a partner role (for instance, caretaker) and you want to assign another role to this partner (for instance, tenant with customer account), you do not create another business partner but add the required role to the existing partner.

The partner roles must be assigned to the respective application area (rental unit, rental agreement, building, and so on). Example: Application Role Rental unit Authorized occupant Rental agreement Tenant with/without customer account Land register Land registry Owner management Owner

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Home addressfrom 04/01/96

Business address

17 Church StreetChurchtownPA 12345USA

Natural person

Organization

Addresses

Home addressuntil 03/31/96

Role: Relationship toapplications

Relationshipbetween partners

Tenant of rental agreement

Caretaker of buildingManager of BEOwner of the owner management

Spouse of ...Shareholder ...

Address typesTime-dependent assignment

Partner Information

Partner

Roles are used to express the relationships of partners to objects. The system provides role categories (for example, master tenant with customer account, tenant, owner). You can define more precise role types for role categories (such as master tenant with customer account in shared apartment, master tenant with customer account as married couple...).

Creating role types facilitates correspondence. Each partner must have at least one address. You can use any address types such as home addresses or business addresses. The assignment of addresses is time-dependent.

All the addresses stored in the system are filed in an address file to avoid duplicating entries. You can define relationships between partners.

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Customizing Master Data

Number ranges Pre-assigned description, interval is freely selectable

Central master data CustomizingArea types Reference areas private/commercial, SCS

Fixtures/fittings characteristics

User fields

User status Controls business activities

Conditions See following units

Attributes of individual objects (location, regional location ...)

External usage type

Field status control

Partner roles for each object type

CC

Customizing settings are necessary for creating master data. The attributes entered in the master data are checked against the corresponding Customizing tables. Customizing settings needed for the individual master data objects are described in the Implementation Guide.

Some master data attributes have a controlling effect on other business processes such as rent adjustment.

Internal or external number ranges can be used. User exits on the basis of BTE (Business Transaction Event) for assigning numbers for the following objects is also available: business entity, building, property, rental unit (for rental agreement see the corresponding unit).

You can use user fields for all master data, including rental agreements. Other fields for business entity, building, property, rental unit and rental agreement can be created in addition to the standard ones, for which BTE can be used.

User exists are not considered to be a modification.

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Customizing PartnerCustomizing Partner

Number rangeBusiness partnernumber

Extras- For user-defined

useNotes- Note categories

and use

Default values- Customer

account groups- Field contents

customer master record

Field statuscontrol

Role view

Partner usein individualapplications

General data- Address- Legal form- Credit standing- Relationships

Addresses

- Default valueaddress ID

CC

Customizing Partner Management

Before creating partners, you have to define number ranges for business partners. You can also define a default value for an address ID.

The system designates the partner role categories and the user cannot change these. You can differentiate various role categories by creating role types.

You perform the field status control, and this is contingent on the role category. You have to specify the applications to which role categories can be assigned. You could, for instance, specify that data relative to clerks is only maintained on the business entity level and not on the building level.

When you create a business partner and edit a field in the customer view, the system automatically creates a customer. Example: The reconciliation account of the master tenant with customer account has been designated a required field, and data is filled automatically or manually, which means that a customer is created automatically. Customers existing in FI can be assigned to business partners.

You can create general partner attributes such as form of address, legal form of organization, credit standing codes.

You can save texts containing additional information on partners under "Additional data" or under general or role-dependent notes.

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Master Data Reports

Master Data

Rental unit/rental agreement overview

Business partner

Land registers

Business entities

Properties

Buildings

Rental units

Areas by

Rental units

Properties (history)

Buildings (history)

Call up the following reports for maintained data: Master Data/Agreements - Master Data - Rental Unit/Rental Agreement Overview Master Data/Agreements - Master Data - Rental Units Master Data/Agreements - Master Data - Business Partners (Roles) Master Data/Agreements - Overviews - Areas - One Area Unit - Rental Units.

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Sets for Real Estate Objects

SETS FOR REAL ESTATE OBJECTSSETS FOR REAL ESTATE OBJECTSLet you use the same selection for different reports

Consist of a number of similar Real Estate objects

Can be created for the following object types:Business entities

Properties

Buildings

Rental units

Rental agreements

Management contracts

Settlement units

Standard report selection uses report variants. It is not possible to use the same variant for different reports as variants are always related to a particular report. This is particularly inconvenient in Real Estate Management because the user often requires different reports for the same group of Real Estate objects.

The set function lets you use your own selections as often as required. Before executing a report, enter your data for the set in the selection screen of the report. Sets are homogeneous, and thus only contain one type of Real Estate object.

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Cha

ract

eris

ticat

trib

utes

Business Basic rent Basic areaentity

Park Street $ 15,250 2,587 m²

Reid Square $ 20,780 3,547 m²

Church Place $ 48,435 5,456 m²

Key Figures

Characteristic

List Structure

Reports evaluate a data set according to all the characteristics in the data description. Characteristics preassign the classification possibilities of a data set.

The organizational structures such as company code, controlling area, the hierarchical structure of R/3 Real Estate Management (business entity, building or rental unit) are good examples of characteristics. The characteristics form the report rows.

Any key figure can be used as a description for this inter-active reporting. Key figures are data needed for evaluation. These can be quantities (number of vacancies during a certain period...), values (costs, sales, revenue, condition amount) or calculations (contribution margin, sale per employee...). More than one object can be displayed for a key figure and an object can have several key figures. The key figures appear in the report columns.

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Report list

Occupancy type

Business entity

Usa

ge ty

pe

VacantOwn usage

Third-party usePark Reid ChurchStreet Square Place

Res

.

Gar

age

O

ffice

Navigation

Convenient functions are available in the list for navigation such as: Next step Next object in a step Hide a step Detail list/drilldown list

You have additional functions for editing a list such as: Sorting Ranking

Parts of the data set are in the list. The parts listed are contingent on the drilldown sequence. The drilldown sequence is in the list header.

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Editing Reports

List Graphic

ListList

Excel

Word

ExportNote

As well as the list functions (display settings etc.), you can also use the following diverse functions such as:

Inserting a note for a report Call up diverse graphics Export and send reports

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Master data objects and how they relate to each other

The effect of the usage type of a rental unit

The role concept of the business partner and the relationship between application and roles.

The link between Real Estate master data and other components (Example: Building to asset (FI-AA))

Master Data: Unit Summary

You are now able to describe:

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Exercise Data Key to Icons in Exercises and Solutions

Exercises

Solutions

Objectives

Business Scenario

Tips and Tricks

Warning or Caution

Note: There may not be sufficient time to work through all the exercises during the course. The exercises should be considered as supplementary examples that can be used as required and time permitting during the course. Participants can also use these exercises after the course to consolidate what they have learned. ONLY USE THE DATA YOU HAVE CREATED YOURSELF. THANK YOU!

Data Used in Exercises Type of Data Data in Training System System Ask instructor

Client Ask instructor

## Your group number

User AC290-##

Password init

Company code 1000

Controlling area 1000

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Business area 9900

Business entity 100 + ## = 1##

Building 1

Profit center 1410 RE APARTMENTS 1430 RE RETAIL 1450 RE OFFICES 1480 RE OTHERS

Business Scenario You are an employee of the company IDES AG, company code 1000. Your company owns real estate in Philadelphia consisting of offices and apartments. Some of the rental objects are rented to third parties. The rest of the objects are used by your own company. These objects are rented internally to a cost center. Profit Center Accounting is used.

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Master Data Exercises

Unit: Master Data Topic: Creating Master Data

At the conclusion of this exercise, you will be able to:

• Create or change master data in Real Estate Management

• Check the relationship of Real Estate objects to each other

• Create a business partner and assign the partner to your building

• Use the Information System for master data

Your company purchased property on January 1 of the previous calendar year. Use the R/3 System to manage the property. The service charge settlement is made once a year.

First of all, you have to create the master data.

1-1 Create Business entity 1## for your group. Enter your business area, tenancy law and address.

1-2 Create a building for your business entity (there are no required-entry fields).

1-3 Create rental units for your business entity. Enter profit centers for your rental units.

1-3-1 Create a rental unit with usage type 01 for building 1. The apartment has 100 m², and the following conditions types have been arranged:

Basic rent

Air-conditioning

Advance payments for operating costs

(You can decide on the cost of each condition. The conditions come into effect on January of the previous calendar year.)

Specify the conditions and the areas of the rental objects as well as the room types available and the fixtures and fittings characteristics.

1-3-2 Create another rental unit with usage type 05. Specify a basic rent and a flat rate for operating costs.

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1-3-3 Create another rental unit with usage type 01 by using the "Copy from..." function and copying the rental unit from 1-1-1.

1-4 Enter the area size for your building. The area of the building must be the same as the total area size of your rental units.

1-5 Create a partner for your building with the role of caretaker.

1-6 Display the following report without restricting the business entities: Master Data/Agreements - Master Data - Rental Unit/Rental Agreement Overview

1-6-1 Format the columns by double-clicking on them.

1-6-2 Use the Current display variant to delete all the fields apart from business entity, rental unit and related texts, usage type and related texts, and rental unit basic rent. Arrange the columns the way you want them.

1-6-3 Total the "Basic rent" field.

1-6-4 Sort according to the "Usage type" field.

1-6-5 Make sub-totals from the "Usage type" field.

1-7 (*) Send a note to yourself for one of your rental units (the user under which you are logged on) Check the date in the send options.

1-8 (*) Change the name of your rental units with the "Mass change" function.

(C) SAP AG AC290 1-27

Master Data Solutions

Unit: 1 Master Data Topic: Creating Master Data

General remarks: You can call up a function in the following ways:

Pushbuttons

Menu functions

Shortcuts (F5, Shift+F8...)

If you position the cursor on the pushbutton, a "yellow box" appears with an explanatory text.

In this section, pushbuttons are in bold letters and menu paths are in italics.

Generally speaking, the paths are indicated in full. You do not normally have to return to the top level.

The data you create for some of the exercises is sometimes used as a basis in the exercises that follow.

1-1 Accounting → Real estate management → Master data → Objects → Business entity → Create

Field name or Data type Values

Company code See "Exercise Data"

Business entity 1##

1-2 Accounting → Real estate management → Master data → Objects → Buildings/parts of → Create

1-3 Accounting → Real estate management → Master data → Objects → Rental unit → Create

1-3-1 Enter the following data:

• Company code

• Business entity 1##

• Usage type (01)

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The number of the rental unit is automatically assigned.

Use the profit center specified in the "Exercise Data".

Enter data for area, conditions, room types and fixtures and fittings under the respective tab.

Enter a valid-from date for the conditions of 1/1 of the previous year. Delete the condition types that are not required. To maintain other condition types, use the Insert new condition type icon (for instance, air-conditioning). Choose Display +, if necessary.

Enter data in the required-entry fields (for Fixtures and Fittings, these are "Floor" and "Location in floor") and specify your fixtures and fittings characteristics.

1-3-2 Create the data as in 1-3-1. Instead of an advance payment, use a flat rate for the operating costs.

1-3-3 Use the Copy from... pushbutton Change the area and the condition amounts.

1-4 Accounting → Real estate management → Master data → Objects → Buildings/parts of → Change


Building 1

Areas tab

1-5 Accounting → Real estate management → Master data → Objects → Buildings/parts of → Change


Building 1

Partner pushbutton

Then the Create partner pushbutton.

Choose the role of caretaker.

Enter your partner data, confirm it, choose the Person pushbutton and save.

You can also create partners as follows:

Accounting → Real estate management → Master data → Business partner

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1-6 Accounting → Real Estate Management → Information System → Master Data/Agreements → Master Data

1-6-1 Position your cursor in the title line between two columns. You can format the column to the best size by double-clicking. You can also change the width of the columns.

1-6-2 Choose Current display variant. If you choose Hide all fields, you can deselect all fields, sort them in the window on the right and then choose the fields you require with Show selected fields to create the current display variant.

1-6-3 Select the "RE basic rent" column and choose Display sum.

1-6-4 Select the "Usage type" column and choose Sort in ascending order.

1-6-5 Select the "Usage type" column and choose Subtotal.

1-7 Accounting → Real estate management → Master data → Objects → Rental unit → Display Confirm by pressing Enter.

Choose System → Workflow → Send object with note

Enter the recipient and check the transmission options.

Choose the Send icon. Return to the SAP menu and choose Office → Workplace Inbox → Unviewed documents Branch to the document by double-clicking on the title. Click on the attachment. The system calls up the rental unit that was sent.

1-8 Accounting → Real estate management → Tools → RU mass change

Choose the "Rental unit - Master data" table (VIMI01).

Choose the "Rental unit text" field (VIMI01-XMETXT).

Choose Execute and restrict the data records to be changed to your business entity. Enter the news texts and save your entries.


© SAP AG 1999

Rental application and offerRental agreementConditionsTenant changeoverTenant information

Contents:

Rental


© SAP AG 1999


List and describe the steps involved in the rental process

Describe the roles of the business partner during the rental process

Explain the difference between condition types, condition groups and condition categories

Rental: Unit Objectives


© SAP AG 1999

Course Overview

Rent Adjustment


General ContractTenant Rental

InformationSystem

Taxes§§


Integration

Correspondence

Controlling

Master Data

Rental


© SAP AG 1999

You have a rental request and you want to make an offer and draw up a rental agreement.You have to define the conditions and the notice rules.

The tenant calls to ask for information on a rental agreement

The tenant gives notice on a rental agreement

Rental: Business Scenario


© SAP AG 1999

Rental req.from/to $# Rooms# PersonsLocation

Vac. RURoomsLocationFixt.& fitt.

Rental offer

Contract dataPricesConditions

Rntl agrmnt

Contract dataPricesConditions

Correspondence

ContractContractSignature

...

ContractContractSignature

xxx

OfferOffer

List of vacant rental units

List of rental requests

Activate

Rental

The rental process begins with an application and then proceeds to the selection of a rental unit, an offer and is completed when the rental agreement is concluded.

You use the Application function to enter applicant data and the rental request. The rental request contains the usage type (such as office, retail, or apartment) and the details (such as number of rooms) of the requested rental object.

Procedure: - Create applicant or take the partner number of an existing partner (applicant) - Create rental application (header data for a list of rental requests) - Create one or more rental requests

You can use the selection program for matching up rental units (vacant or soon-to-be vacant) that meet in part or in full the criteria in the rental request. You can then create offers from the list display. If you use this method, applicant data is automatically transferred to the offer.

You can print offers and contracts using the Correspondence function. Refer to the unit on Correspondence for additional information.

You have to activate the rental agreement when you have a legally valid (signed) contract. This ensures that the system can begin creating debit positions (rent bills) for this rental agreement.


© SAP AG 1999

Application

Applicant

Comparison ofvacant RU/rental requests

Transferto contract

ActivateIndividuallyMass

Application Offer RA Active RA

Applicant Tenant withcust.account

Partner role

Partner Roles in the Rental Process

Tenant withcust.account

The system can automatically transfer role categories between applications. Typical situation: when you create a rental agreement from an offer, the partner is assigned the role of tenant with customer account.

The Customizing settings determine what data is transferred. A third-party rental agreement can only be activated if a tenant with a customer account is available. Effect of activating a rental agreement: an account assignment can be made on the rental agreement and the rental agreement is taken into account in the debit position run (you have to enter the date of the first debit position run).


© SAP AG 1999

Conditions in the Rental Process

Application Offer Rental agreement

Active rental agreementConditions

Conditions

Taken from:•Rental unit•Offer•Reference offer•Rental agreement

Taken from:•Rental unit•Offer•Contract

Rental request

The conditions of a rental agreement are transferred from the rental unit or the previous contract (setting in Customizing). If an offer is transferred to a contract, the offer conditions are transferred as well.

The conditions of an offer are - Transferred from the rental unit (RU) if there is no rental agreement (RA) before or on the date

given in the Rental start field. (Example: first RA for the RU with rental start 01/05/99, offer for RU with rental start 01/01/99 => the conditions from the rental unit are transferred).

- Or, in other cases: transferred from the rental agreement that is valid before or on the date given in the rental start field.

When you are making an offer by assigning rental requests to vacant rental units, a reference offer can be used as a template. You identify an offer as a reference offer by setting the corresponding status in the offer.

If you use the Change offer function, an offer can be directly transferred to a rental agreement.


© SAP AG 1999

Rental Agreement

Rental agreement number - Collective RA number - Business entity - Rental unit - Tenant

Contract type

Adjustmenttype

Contract terminationdata

Renewal data

Contract term

Debit positiondata

Pymt methods

Account Bank procedure

Taxtreatment

Dunning and complaint data

Basic rent

Heating expensesadvance payment

Flat-rate operating costs

Rent reduction

Roomer subsidy

(Payment form,frequency, taxes per condition item possible)

Deposit type

Amount

Due date

Intererest rate orinterest reference

Place of deposit

Area 1

Area 2

Persons

Header data:

Partners Settlement participation Status User fields Notes / Addit. text

General data Payment data Conditions Rental collateral Apportionmnt units

The graphic shows the key data of the rental agreement. Rental agreements can only be created for rental units. You enter basic data such as the contract validity period, adjustment type and period of notice in General data. Rental agreements for rental units must not overlap in time.

You enter the rent amount in Conditions. You enter the adjustment data such as "graduated", "sales-based" or "index-based" (for every condition type) depending on the adjustment type. Conditions can be defined either as absolute figures or they can be based on area units.

Rental can either be external or internal. You define the type of rental in Payment data. If the rental agreement is for internal use, you must enter the cost center that will be renting the unit. You also specify information about payment methods, dunning procedures and tax treatment.

If the rental agreement is an external one, you must enter the main contractual partner with the partner role "Master tenant with customer account". A customer account is created for this partner and all relevant postings are made to it. The role category "Tenant" is suitable for entering data about other people occupying the rental unit (tenant without a customer account...); this category is not used for the main contractual partner as it is for partners without a customer account. Example: A rental agreement has been made with the married couple, Mr and Mrs Smith. You must enter "Married couple Smith" as the master tenant with customer account in the rental agreement. Husband and wife can be assigned the role "tenant" for informational purposes or for the correspondence.


© SAP AG 1999

Contract-Specific Additional Data

Additional textsCategories with default texts

Can be printed in the correspondence

In the info system ...

NotesFor internal use

Not generally available in correspondence

User fieldsCan be printed in the correspondence

Can be evaluated in the info system ...

You can enter texts specific to a rental agreement (or offer) for the categories you have defined in Customizing by choosing the menu option Extras -> Additional text. These texts could include details of the tenant's obligations or additional provisions of a rental agreement.

You can print out the additional texts in the rental agreement or offer. Apart from the categories defined in Customizing, you can also choose category 000 which contains

additional texts that were used in Releases up to and including 4.6A. You can choose default texts for each category. You can also enter notes for internal use. These are not generally available in the correspondence

function. The user fields (including the customer add-ons) are available for the correspondence and information

system.

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Manual entry byuser

User exit usingBTE with any

rules

Automaticassignment

External number assignment

Internal number assignment(sequential numbers)

Number rangewith...

CC

Customizing number system(seq. BE, RU...)

Number Assignment for Rental Agreements

You can make the number assignment internally or externally. You can differentiate between a manual entry and an automatic assignment for external assignment. You have 13 characters including separators available for a rental agreement number.

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Collective Rental Agreement

Individual agreements can have different contract periods

Incoming payments can be made to the collective rental agreement

Number/name of the collective rental agreement is freely selectable(unique in the company code)

No account assignment object(account assignment is still made to individual rental agreements)

Collective rental agreement number in the "Assignment" field of the document (Customizing)

View in document/report:

3/0815.0001.001 C/4711.0001.001

Contract number: 0815.0001.001 Collective RA: 4711.0001.001

Prerequisite:

All rental agreements in a collective rental agreement haveto share the same main contractual partner.

You can use the collective rental agreement (CRA) function to group together logically connected rental agreements belonging to one main contractual partner. This simplifies the billing, debit positions, incoming payments, payment blocks and reporting.

You can create or assign a CRA in one of the following ways: When you create a new rental agreement, you can either - Generate a new CRA, or - Assign the contract an existing CRA If you do not assign a number or a name in the CRA field, the CRA is assigned the number of the original rental agreement.

You can generate a new CRA for a rental agreement when you are editing an existing RA by either creating a new rental agreement or assigning an existing rental agreement. In this case, the number of the collective rental agreement is the number of the original rental agreement.

You can directly assign existing rental agreements to a CRA.

Additional functions: You can rename the collective rental agreement. You can remove particular rental agreements from the CRA.

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Rental unitLivingroom

Bed-roomNursery

Scale 1:75

Rental agreementRental agreement

Conditions- Basic rent $1000- AP Heating expenses $ 100- Flat-rate oper.costs $ 45- Surcharges....Subject-related conditions(conditions that are maintained on the RA)

A

Conditions- Basic rent $1000- AP Heating expenses $ 100- AP Operating costs $ 50

Object-related conditions(conditions that maintained on the RU)

Condition Types

Condition types are needed for periodical postings in the debit position of rental agreements, rental units and management contracts.

When you create a new rental agreement for a rental unit, the conditions already stipulated for the rental unit or the conditions of the most recent active rental agreement are proposed by the system (Customizing). In Customizing, you can also determine whether the conditions of a rental agreement are transferred to the rental unit on termination of the rental agreement.

Condition types belong to condition groups that determine which conditions are permitted for each application (rental unit, rental agreement, or management contract). Consequently, conditions that are permitted for a rental agreement but not for one particular rental agreement are not, in this case, transferred to the rental unit.

When you create a new rental agreement by accepting the offer, the conditions of the offer are the ones that are used in the rental agreement.

For each condition you can specify: the amount, valid-from date, taxes, payment method, payment frequency (quarterly...), payment form (advance, medium term or at end of period).

The conditions are time-dependent and can be transferred, changed and deleted. You can enter remarks for each condition type in the rental agreement and offer (for instance, reasons for change).

The system can translate the condition amounts into other currencies on a set date.

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Notice given bylandlord

as per ...

Rejection Reversal

Approval Activation

Correspondence

Rental unit inspection

Release of rental deposit

Notice

Notice can be given on one single rental agreement or a large number

Notice given bylandlord

Notice given bytenant

Rental agreement

You use the tenant changeover function when you receive or give notice to terminate a rental agreement. The system automatically checks the validity of the period of notice.

The notice reason contains a code to indicate whether the tenant or the landlord gave notice. The rental unit is given a date as of when it will be available for rent. When you activate the notice, the system status of the rental unit is VACANT from the day after the notice date up to the start of the next rental agreement.

More than one notice can be given on a rental agreement since the notice may be withdrawn and resubmitted at a later date.

Notice can only be given on an "active" rental agreement. You have to activate the notice. You can log the rental unit handover activity in the system.

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© SAP AG 1999

Periods of noticein rental agreement

Time up to date onwhich notice takes effect

Period or deadline regulation is entered depending on the term of the contract and the date on which the contract was received.

DeadlinesDeadlinesPeriodsPeriods Date on which notice takeseffect

Reference to ruleReference to rulein Customizingin Customizing

Specific rule in theSpecific rule in therental agreementrental agreement

Period regulationPeriod regulation

Reference to ruleReference to rulein Customizingin Customizing

Specific rule in theSpecific rule in therental agreementrental agreement

Deadline regulationDeadline regulation

Periods of Notice

You have the following options for creating notice rules on rental agreements: Do not define a notice rule Period regulation: for instance, notice at end of month with a three-month period of notice Deadline regulation: for instance, notice on 30 June provided notice received by 1 April of same year

To create notice rules in Customizing, choose a name for the notice key and the contract type for which the notice key applies.

For period regulations, you also have to enter the following data: The type of period end (end of month, end of quarter, and so on): this is determined by "Number of months" (yearly -> enter 12, per quarter -> enter 03, monthly -> enter 01,...)

The period (in months - 3 in this example - and, if required, in days) The notice type "Period regulation" and the notice key in the rental agreement

For deadline regulations, you also have to enter the following data: The date on which the notice was received and the date the notice takes effect, using the same notice key for each deadline

The notice type "Deadline regulation" and the notice key in the rental agreement For the deadline regulation, you can use relative values to signify the year (for instance "Receipt year" blank, "Notice year" 1 => next year).

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© SAP AG 1999

Changing Tenant with Customer Account in Active Rental Agreements

Tenant 1 Tenant 2

Transfer open items

Valid from:System date

You can change the master tenant with customer account without creating a new contract (in the case of a divorce or death, for example). The change affects the existing rental agreement; in other words the new tenant takes on all the rights and obligations of the contract.

However it is still necessary to create a new contract in the case of a real tenant changeover. The system date is used as the date of change. All the postings that are made after the change of master tenant are carried out in the new customer's account.

When the tenant with customer account changes, you can transfer the new, unsettled items of the old partner, especially those that cannot be settled such as advance payments for service charges, to the new partner on a key date.

The service charge settlement only takes account of the items of the master tenant with customer account on the date of the settlement. The system issues a reminder for any items that were overlooked by the transfer posting.

The manual incoming payments and account maintenance transactions as well as the OI and balance lists also display the old master tenants with customer account. On the other hand, automatic incoming payment transactions (electronic account statement entry) only take account of the current master tenant.

The correspondence only takes account of the current master tenant.

(C) SAP AG AC290 2-16

© SAP AG 1999

Tenant Information

SEARCH BY

Name

Birthday

Address

Rental agreement

DATA

Rental agreement

Pymnt/dunn.data

Partner/customer

Rental unit

Rent adjustment

OTHER ACTIVITIES

Change RA

Print RA

Tenant acct sheet

Notice

RU inspection

The tenant information transaction displays all data relevant to the tenant. You can search for data with the following criteria:

Rental agreement number, name, date of birth, postal code, town, street, cost center (for own usage) Apart from displaying data, you can also carry out the following activities:

Change rental agreement Print rental agreement Process notices Create tenant account sheet Simulate rent adjustment (representative list of rents, comparative group, index rent) Rental unit inspection Correspondence functions

Groups of conditions that are valid on a key date are displayed in the conditions overview screen. You can also display the condition details.

There is also a screen to display miscellaneous data, such as technical details.

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© SAP AG 1999

Create rental agreementChange offer --> transfer to rental agreement

Create rental agreement

Change rental agreementActivate

Change rental agreement

Change rental agreement - active agreements

Create a rental reduction

Change by rent adjustment runs (conditions)

Adjust advance payments

Change customer (new tenant enters existing rental agreement)

Tenant information

End of rental agreementNotice/renewal of contract

Rental unit inspection

Release rental collateral

Rental Agreement Life Cycle

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© SAP AG 1999

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Customizing Rental Application and Offer

Number ranges for rental application and offer

Field selection

Permitted partner categories

Partner category-view assignment

Rules for transferring partnersFrom the rental application to the offer

From the offer to the rental agreement

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© SAP AG 1999

Number range

Rules for creating rental agreement number

Conditions and account determination

Permitted partner categories

Field selection

Contract types

Adjustment types

Deposit types

Customizing Rental Agreement

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(C) SAP AG AC290 2-20

© SAP AG 1999

Condition category

Condition category

Condition category

Condition category

Condition category

Condition category

Condition type

Condition type

Condition type

Condition group

Condition group

CC

Contract

Example: Basic rentSurchargesAdvance paymentsFlat ratesGrouping for reporting

Determine:Compatibility of condition typesNumber of conditionsin a condition group

Example: Rental unitRental agreementManagement contractGeneral contract

Determine:Permitted condition types of product type (rental unit, offer, rental agreement,management contract)

Customizing Conditions

Three classifications are needed for customizing the condition types:

Condition type, condition group, condition category Condition type

Appears as a condition on rental agreements, rental units and management contracts. Condition group

Determines the condition types that can be used in rental agreements, rental units and management contracts.

Condition category Controls the number and compatibility of conditions (there are four ways of specifying the number of conditions possible: exactly, minimum, maximum, one, any number. Example: exactly one condition is permitted of "basic rent" category and any number of "surcharges" category). With regard to the compatibility of conditions, you can prevent a rental agreement having a gross rent as well as service charges.

There is no limit to the number of condition categories you create. There are five options for your "internal condition category" entry: no entry, advance payment, flat rate, can be adjusted, grouping for reporting (used for information system and tenant information).

(C) SAP AG AC290 2-21

© SAP AG 1999

Rental requests

Rental agreements

Rental unit/rental agreement overview

Conditions

Rental agreements

Rental agreements maximum/minimum conditions

Rental units/agreements per area unit/apportionment unit

Vacancies

Period evaluation

Key date analysis according tousage

Key date analysis according tousage (%)

Key date analysis according to reason for vacancy

Occupancy history according torental units

Rental Reports

Call up the following reports for maintained data: Master Data/Agreements - Master Data - Rental Unit/Rental Agreement Overview Master Data/Agreements - Contracts - Rental Agreements Master Data/Agreements - Overviews - Conditions - Rental Agreements Master Data/Agreements - Overviews - Vacancies - Period Evaluation

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© SAP AG 1999

You are now able to:

List the stages of the rental process and explain the relationship between rental request, offer and rental agreementDescribe the roles of the business partner during the rental processExplain the two different types of notice rules Name typical condition types and categories for rental agreements and describe the relationship between condition types, groups and categoriesDescribe the prerequisites for a collective rental agreement

Rental: Unit Summary

(C) SAP AG AC290 2-23

Rental: Exercises

Unit: Rental Topic: Rental Request, Offer, Rental Agreement


• Create a rental request

• Find suitable vacant rental units for a rental request

• Create an offer

• Create, print and activate a rental agreement

• Call up rental agreement reports in the Information System

• Give notice on a rental agreement and reverse the notice

Your company rents out the rental units you created in the exercises of Unit 1 as of 1 January of the previous calendar year. Map the various processes in the system starting from the application, through rental, to giving notice on the rental agreement.

2-1 Create an application for your first rental unit.

2-2 Find a suitable rental unit for your application. Create an offer for rental unit 1.

2-3 Rental unit 1 is rented to the applicant from 1 January of the previous year. Create and activate a rental agreement.

2-4 Rent your rental units 2 and 3 with rental start and activation date 1 February and 1 March respectively of the previous year. Choose contract type 2 and adjustment type 5.

2-5 Call up the following reports:

2-5-1 Master Data/Agreements - Overviews - Conditions - Rental Agreements

2-5-2 Master Data/Agreements - Overviews - Vacancies

2-5-3 Master Data/Agreements - Master Data - Rental Unit/Rental Agreement Overview, and filter the report using the "Status" field by specifying the "vacant" status.

(C) SAP AG AC290 2-24

2-5-4 Master Data/Agreements - Business Partners - Business Partner Analysis Switch the breakdown to "Name", hide the business entity, building, property, rental unit and rental agreement fields and display the fields that relate to the address.

2-6 (*) Maintain a set for your business entity and call up the reports again using the set.

2-7 (*) The tenant of rental unit 2 gives notice on the rental agreement.

2-7-1 Enter and activate the notice.

2-7-2 Display the dates and status in the rental agreement.

2-7-3 How is the rental unit affected?

2-7-4 Reverse the notice.

(C) SAP AG AC290 2-25

Rental Solutions

Unit: Rental Topic: Rental Request, Offer, Rental agreement

2-1 Accounting → Real estate management → Rental → Application → Private → Create Create a partner using Create applicant.

You can create an application (general data that is valid for several other rental requests) or a rental request (specific data) with

Master data or New rental request.

In the screen "Create Private Application: Rental Request - Object", enter the following data:



Business entity 1##

2-2 Menu path: Accounting → Real estate management → Rental → Application → Assign → Rental request → Search for rental request

Choose Find rental units (F8).

Select the rental unit required and create an offer using the Create offer pushbutton.

2-3 Create rental agreement.

1. Either create a new rental agreement (without an offer)

Accounting → Real estate management → Rental → Rental agreement → Create

2. Or transfer an offer to a rental agreement

Accounting → Real estate management → Rental → Offer → Change, convert to RA

Enter the number of the offer that you want to transfer to the rental agreement.

(C) SAP AG AC290 2-26

Press the pushbutton Transfer to RA or choose Offer → Transfer to RA.

Activate the rental agreement by following the path:

Accounting → Real estate management → Rental → Rental agreement → Change → Rental agreement master data Enter RA number → ENTER button → Rental agreement → Activate and save

Or

Accounting → Real estate management → Rental → Rental agreement → Activate → Residential agreement

2-4 Create rental agreements for rental units 2 and 3 as described in solution 2-3 (1st option).

2-5 Reports

2-5-1 Accounting → Real Estate Management → Info System → Master Data/Agreements → Overviews → Conditions → Rental Agreements

2-5-2 Accounting → Real Estate Management → Info System → Master Data/Agreements → Overviews → Vacancies → Period Evaluation

2-5-3 Accounting → Real Estate Management → Info System → Master Data/Agreements → Master Data → Rental Unit/Rental Agreement Overview Press Set filter and choose "Status", confirm and choose the "vacant" status.

2-5-4 Accounting → Real Estate Management → Info System → Master Data/Agreements → Master Data → Business Partners → Business Partner Analysis Press Switch drilldown and choose "Name". Hide or display the fields by pressing Choose key figures.

2-6 Choose a report. Press the pushbutton Selection via sets. Enter a name for the set and choose Create new set. Enter a set description and choose Maintain set. Choose Choose objects for set. Enter your business entity in the next selection screen and choose Execute. Save your set.

You can now call up reports using this set. Proceed as follows: In the selection screen of the report, choose Selection via sets. Enter the name of the set and press the Save icon. You now return to a selection screen for the report where you can enter further selections. Choose the Execute icon to call the report.

(C) SAP AG AC290 2-27

2-7 Giving notice on rental agreements

You can only reverse active rental agreements. Check that the rental agreement you want to give notice on is active; and if not, activate it.

2-7-1 Accounting → Real estate management → Rental → Tenant changeover → Notice on rental agreement Enter the RA number and choose New notice. Enter the notice data and activate the notice.

2-7-2 Accounting → Real estate management → Rental → Rental agreement → Display The notice date is transferred to the rental agreement. The status is VACANT.

2-7-3 The apartment is identified as being vacant as from the date of notice so that a new rental can be made. Display the occupancy type history: Accounting → Real estate management → Master data → Objects → Rental unit → Display Under the General data tab, double-click on Occupancy type.

2-7-4 Accounting → Real estate management → Rental → Tenant changeover → Notice on rental agreement Choose Edit notice, confirm your entry and choose Reverse notice.


© SAP AG 1999

Correspondence activities

Correspondence groups

Letters

Text modules

Contents:

Correspondence


© SAP AG 1999


Explain the procedures for creating letters and

Describe the meaning and use of the following terms:

Letter

Correspondence activity

Correspondence group

Correspondence: Unit Objectives


© SAP AG 1999

Course Overview


General Contract (Tenant Rental)

InformationSystem

Taxes§§


Integration

Controlling

Rent Adjustment

Master Data

Rental

Correspondence


© SAP AG 1999

You want to send letters to business partners related to an application such as a rental agreement, rent adjustment or service charge settlement.

Correspondence: Business Scenario


© SAP AG 1999

Correspondence reportsfor applications

• Rental agreement• Offer• Service charge settlement• Rent adjustment• Notice• ....

Application-relateddata retrieval

• Partner data• Object data• Contract data• Adjustment data• ...

Real Estate object selection

Business entityRental unit

Print date

1

12

01/10/99

Print rental agreement Application

Application-relatedselection parameters

Additionalparameters

Correspondence - Overview

The standard correspondence is written with SAPscript. It can be stored in archives. You have a wide choice of reports that retrieve and print data for a specific correspondence application. Refer to the report documentation to determine what data can be retrieved and printed.


© SAP AG 1999

Layout and Content

The layout

The content

Window for headerand footerWindow for additional text

Text moduleText / paragraph andcharacter format

Page setup


© SAP AG 1999

A letter consists of the following parts: Editing in the R/3 System:Page setup

A4, US letter, portrait, landscape...

Window for header and footer

These can be positioned in any size and any place in the page setup.Additional text windows

Any number of these can be positioned in any place and can be any size in the page setup.

Layout definition using transactionSE71 (editing forms):Texts that must appear in a certain position, such as the letter header for the company code, should be inserted directly in the form. You do not have to create separate text modules for the letters in Customizing.

Text modulesAny number of these can be positioned in the window;Texts are language-dependent so that letters can be created in the language of the recipient;Graphics such as your company logo can also be added;You use program symbols in text modules to print data from the R/3 System (tenant name, address, rental agreement number and so on).

a)

b) Text formulations are made in RE Customizing;You select paragraph and characterformat by assigning a style.

Letter Layout in SAPscript

You can specify paragraph and character formats using transaction SE72 (editing styles).

This graphic illustrates the structure of a letter in the R/3 System. The RE correspondence is based on SAP's own word processing component SAPscript. You use the SAPscript editor to create the text. You can define company code-dependent texts for the headers and footers.


© SAP AG 1999

Correspondence activity =

Partner+

Letters

TenantLetter AContract

GuarantorLetter BContract

Correspondenceapplication

Rental agreement

Correspondence Activities

Correspondence activities are defined for individual applications. A correspondence activity contains the following details:

The application in connection with which a correspondence partner is addressed The partner to whom the correspondence is sent The letters that the partner is to receive

Example: You want to send a rental agreement with accompanying letter and a collection authorization form to the tenant. You also want to send a letter to the social welfare office at the same time to certify the amount of rent paid.

You create correspondence activity "4711" with the following data: Seq.no. Partner role Letter 1 Tenant RA accompanying letter 2 Tenant Rental agreement 3 Tenant Collection authorization 4 Soc.welf.office Certification of rent amount

For each correspondence application, you have to identify a default value for a correspondence activity.


© SAP AG 1999

Correspondence activities can refer to role categories or role types

Company

Managing directorSilent partner

WifeHusbandManaging directorSilent partner

1000 Rental agreement for Role categoryMaster tenant with customer account

1100 Rent adjustment letter for Role types

Master tenant with customer account

Tenant

Master tenant, generalCompanyMarried couple

WifeHusbandManaging directorSilent partner

Role category Role types for role category

Example of Correspondence Role Type Usage

Correspondence activities can be defined for role categories or role types. We recommend creating role types if you want to send letters in a role category to certain partners only or if you want to send letters in certain specific cases only.

If you have created role types, the partners are always directly maintained in the Partner dialog box in the role type and not in the role category. However, the system recognizes the partner role category internally.

You can decide which partner (with role category or role type attributes) receives which letters by using the correspondence activities.

If no partner exists for the contract with the role in the correspondence activity (for instance social welfare office), no letter will be created.

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© SAP AG 1999

Correspondence Group / Correspondence Activity

Determining the correspondence activity for each application objectDetermining the correspondence activity for each application object

1. Search for correspondence groupa) Correspondence group assigned directly to contract orb) Default correspondence group of contract type orc) Empty correspondence group

The correspondence group lets you use•Different correspondence activities for each contract type, as well as•Different correspondence activities for each object

when you print correspondence.

Correspondence group: an element used to structure groups of assignments between correspondence applications and correspondence activities

2. Determine correspondence activitya) Using correspondence group/application/activity assignment orb) Default correspondence activity of correspondence application

Example of use of different correspondence group: you want to use a different correspondence group for commercial rental agreeement xyz instead of the normal correspondence activity that is determined for this contract type by the default correspondence group. You have to specify the different correspondence group in the master data of rental agreement xyz.

If you want to print a correspondence activity, the procedure is as follows: System searches for correspondence group directly assigned to the object (rental agreement), and if one exists the correspondence activity is derived from it. If no correspondence group exists, the default correspondence group of the contract type is used and the correspondence activity derived from it. If there is also no default correspondence group of the contract type, the system tries to use the correspondence activity assigned to the empty correspondence group. (Correspondence activity always refers to respective correspondence application.)

If no data exists for the cases described above, the last selection criterion used is the default correspondence activity of the correspondence application.

The correspondence group facilitates mass print. In previous releases you had to make detailed selections to be able to use the required correspondence activities for the rental agreements.

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© SAP AG 1999

Rental agreement

Tenant details

Rental object details

Conditions

Signature

Letter key consists ofDocument groupLetter name

Print report transfers thedata contained in the retrieval report from the ABAP memory to the form

Form for determining layout

2. Assignment of text modules

1. Detail: Letter attributes

CC

Letters

You create the letters and text modules in Customizing. The letter key comprises the document group and letter name. You have to use one of the standard document groups, but you can assign any letter name.

The letters are made up of text modules that can be used in any letter. This makes it easier to maintain data because frequently recurring phrases in the text modules can be capsuled.

You should note, however, that changes to a text module will affect all the letters in which it is used. A tool is available in Customizing to find out where the text modules are used in letters.

SAP provides sample letters and sample text modules. You have to copy the templates from the delivery client to the Customizing client.

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© SAP AG 1999

Text module nameconsisting of

Name of text objectText name

Program with subroutinethat retrieves data for table output

CheckboxesSelection indicatorMandatory

1. Detail: Attributes 2. Editor: Text maintenance

Rental objectFor rent ...&VIRUADRS-STRAS(C)&in <G>&VIRUADRS-PSTLZ(C)&&VIRUADRS-ORT01(C)&

STYLE FORM

CC

Text Modules

The text modules for a letter are printed in the order of their sequence number. SAP supplies standard text objects, but customers can also create additional ones.

If the "selection dialog box for text modules" indicator is set for a letter, when you start the print report the system displays the permitted text modules and you choose the ones you require. Other indicators can be set for each text module: "Print mandatory" and "Selection indicator". You have to use "Print mandatory" if you always want to print this text module; the indicator is set in the selection dialog box and you cannot enter any data. If the "Selection indicator" is set, selections for this text module are preassigned in the selection dialog box, but they can be changed.

If the text module is to output a table with several lines, such as a list of the apartment's fixtures and fittings characteristics or a list of conditions, a special form routine is required. You have to define the name of the form routine to be used and the report name in Customizing.

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© SAP AG 1999

Example: Correspondence

What do I do? What does the printout look like?

a) Select the text module for editing for the requested letter.

b) Specify the technical name of the fields that can be printed (see below).

c) Enter the technical names of the text moduleas follows:

Landlord

&VIBKADR-NAME1&&VIBKADR-STRAS&&VIBKADR-PSTLZ& &VIBKADR-ORT01&

Tenant

&MIETERADR-LINE0&&MIETERADR-LINE1&&MIETERADR-LINE2&&MIETERADR-LINE3&

The printout for a selected rental agreement:

Landlord

IDES Holding Inc.Washington Square 25New York, NY 10022

TenantSystems IncPrimrose Avenue 25New York, NY 10025

Selection of fields that can be printed (DDIC fields) (You may have to change the setting of the editor to PC mode.) 1. In the text module editing mode, choose Include -> Symbols -> Program systems or (Ctrl + F3).

The system displays the assigned print programs for the specified form. 2. Select the print program (report) you require and press the DDIC field pushbutton.

The table structure of the report is displayed. 3. Double-click the table with the field you require. All the fields in the table are displayed. 4. Double-click the field you require to copy it to the text module.

Note: Not all the fields offered can be printed. To find out which fields can be printed, refer to the documentation of the print program (you can display this in the selection screen of the print program by choosing Help -> Application help).

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© SAP AG 1999

Useful Functions

• LETTER OVERVIEWOverview of all letters, from where you can branch to the text module overview

Double-click in the text module overview to branch to theSAPscript editor to process text modules

• TEXT MODULE WHERE-USED LISTDouble-click for a list of letters in which the text modules are used

You can edit, copy, delete, or transport large numbers of text modules simultaneously.

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© SAP AG 1999

Overview of Terms Used in Correspondence

DocumentThe smallest unit of correspondence is generated byexecuting a correspondence program in whicha letter and the corresponding layout templateare linked to application dataExample: Letter to Mr. Smith on rental agreement 1464.0001.001

FormDefines a layout template; it can be assigned to any number of lettersExample: SAPscript form „FVVI_WMVA“ is used as a layout template for rental agreement letter

LetterElement used to structure correspondence, consisting of a form, a print program and x number of text modulesExample: Letter "SAP_RE-RT-RC012" for rental agreement letter with assigned form "FVVI_WMVA" and print program "RFVIWA02" as well as several text modules

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© SAP AG 1999

Overview of Terms Used in Correspondence

Correspondence activityDetermines on the basis of role/letter assignmentswhich documents have to be created for which business partnersExample: the following documents have to be createdwith correspondence activity "commercial rental agreement"

To master tenant: - Letter with rental agreement- Rental agreement- Form for collection authorization

To service provider: - Information on new tenant

Correspondence groupAn element used to structure groups of assignments between correspondence applications and correspondence activities

• Object-related selection of correspondence activities• Default correspondence group for each contract type

(C) SAP AG AC290 3-17

© SAP AG 1999

Correspondence: Unit Summary

You are now able to describe:

The layout of a letter

A correspondence activity

A correspondence group and how to use it

(C) SAP AG AC290 3-18

Correspondence Exercises

Unit: Correspondence


• Print the correspondence for a particular correspondence activity

Print a rental agreement and a general letter. Create a spool request for the rental agreement letter. Display the general letter in the print preview directly after executing the print function.

3-1 Check the entries in your user profile. Enter the output device specified by your instructor. Do not flag the "Output immediately" checkbox! Save your changes.

3-2 Print the correspondence for your rental agreement. The rental agreement was printed as a spool request. Display the spool request.

3-3 Use the "More correspondence" function to print the general letter to the tenant (correspondence activity 1001). The letter is displayed in the print preview.

3-4 (Optional) Check in Customizing why the system calls up the print preview function for the general letter.

(C) SAP AG AC290 3-19

Correspondence Solutions

Unit: Correspondence

3-1 System - User profile - Own data - Defaults tab

3-2 SAP menu - Accounting - Real estate management - Rental - Rental agreement - Display Enter your rental agreement number and confirm with Enter.

Rental agreement - print Optionally, you can print the rental agreement using "More correspondence".

3-3 SAP menu - Accounting - Real estate management - Rental - Rental agreement - Display Enter your rental agreement number and confirm with Enter.

Rental agreement - More correspondence Select the line for correspondence activity 1001 and press the Print icon.

3-4 SAP menu - Tools - AcceleratedSAP - Customizing - Project Management

Choose SAP Reference IMG.

Implementation Guide for R/3 Customizing (IMG) – Real Estate – Correspondence – Correspondence Groups and Correspondence Activities – Define Correspondence Activities – Define Correspondence Activities

Select correspondence activity 1001 and choose Assign Partners and Letters.

The Print preview checkbox is selected.


© SAP AG 1999

Contents:Debit position for third-party and owner usage

Debit position for vacancy

Account determination

Payment, dunning, account overview

CO objects - Real Estate Management

Rental Accounting


© SAP AG 1999


Describe the relationship between conditions, flow types, debit position (third-party usage, own usage, vacancy) and automatic account determination

Explain the difference between tenant with a customer account, subsidizer and alternative payer

List the options for manual and automatic incoming payments

Describe the prerequisites for dunning and the dunning process

Rental Accounting: Unit Objectives


© SAP AG 1999

Course Overview

Rent Adjustment

Settlement


InformationSystem

Taxes§§


Integration

Correspondence

Controlling

Master Data

Rental

Rental Accounting


© SAP AG 1999

You post a debit position for your rental agreements and clear open items from tenants using manual as well as automatic incoming payments

You make a dunning run for the due items

You analyze the revenues on the rental agreements in the information system

Rental Accounting: Business Scenario


© SAP AG 1999

RE FIR/3 Real Estate Management R/3 Financial Accounting

Rental accounting = Financial accountingTenant = Customer

Integration of RE in FI

• 1:1 relationship between tenant with customeraccount and customer

• Open item accounting• Items assigned to a contract

The rental accounting in R/3 Real Estate Management is fully integrated in R/3 Financial Accounting. A tenant is defined as a customer. The relationship of a tenant with a customer account in the business partner administration to a customer in FI is 1:1.

The R/3 Accounts Receivable is managed on an open item (OI) basis. If a tenant has several rental agreements, all of them are kept on the same customer account.

The items are assigned to a contract.


© SAP AG 1999

Rental Accounting Processes

Debit positionSame for third party and own usageAutomatic follow-up postings for backdated changesAutomatic posting to Financial Accounting and Cost Accounting

Vacancy debit position(imputed costs)

Automatic follow-up postings for backdated changesAutomatic posting to Financial Accounting and Cost Accounting

One-time postings

Incoming payments Account maintenance

You use the debit position, vacancy debit position and one-time posting processes to generate open items. The debit position is also the basis for rental billing. You clear items with incoming payments or account maintenance processes.


© SAP AG 1999

Third-party usage

Master tenantwith customer account

Normal case:Tenant withcustomer account

Master tenant customer account

1000

Master tenant customer account

1000 Alternative payerin the document

Master tenantcustomer account

700

Subsidizercustomer account

300

Third-party usage

Master tenant with customer

account+

Alternativepayer

Third-party usage

Master tenantwith customer

account+

Subsidizer

Special case 1:Alternative payer

Affects all conditions100%

Special case 2:Subsidizer

Per conditionPercentage or absolute share

Partner with Customer Account

In addition to the master tenant with a customer account, you can use other debit roles in the rental agreement:

- Alternative payer, if 100% of the rent is paid by another business partner - Subsidizer, if a part of the rent is paid by others

In the case of an alternative payer, you still post to the master tenant's account. For technical reasons, you need to create a customer master record for the alternative payer. The address and bank data is transferred automatically from this customer master record to the document.

If an alternative payer takes part in the bank collection procedure, the payment method you use for the rental agreement must have the same Customizing settings as collection authorization. However, the payment method chosen must be one that does not require the indicator Collection authorization in connection with the bank details, as this indicator cannot be transferred to the document.

Subsidizers are always related to condition types. Always maintain the subsidizer's share in the Conditions screen. Unlike the alternative payer where postings are made directly, no postings are made directly to the subsidizer's customer account.


© SAP AG 1999

Debit Position Postings

Basic rent $500

Receivables

General ledger

Bank

500 (1)

Basic rent revenue

Subledger

Customer

(1) 500(1) 500

Bal

ance

she

etac

coun

tP/

L ac

coun

ts

Rec

onci

liatio

nac

coun

t

Example: Posting the basic rent Posting record 1: Customer to basic rent revenue The customer is in the subledger. At the same time, the general ledger assigns receivables to the reconciliation account specified in the customer master record.

When you create a rental agreement, the cash flow is generated from the conditions.


© SAP AG 1999

Incoming Payment Postings

Incoming payment $500

Receivables Bank

(2) 500

Basic rent revenue

Customer

500 (1)

(1) 500(1) 500 500 (2)500 (2)

Bal

ance

she

etac

coun

tP/

L ac

coun

ts

Rec

onci

liatio

nac

coun

t

General ledgerSubledger

Basic rent $500

Example: Posting the basic rent Posting record 1: Customer to Basic rent revenue

Posting record 2: Bank (cash receipt) to customer The same applies here: The customer is in the subledger. At the same time, the general ledger automatically assigns receivables to the reconciliation account.

Incoming payments clear the open item.

(C) SAP AG AC290 4-10

© SAP AG 1999

Cash Flow

Due date Loc.curr.aTax Lcr FTyp R. Flow type name P Calc. from Debit pos. ID

02/01/1998 6900.00 900.00 UNI 1000 Basic rent I 28.02.1998 000000251999MVSO02/01/1998 575.00 75.00 UNI 2000 AP Operating costs I 28.02.1998 000000251999MVSO02/01/1998 345.00 45.00 UNI 2100 AP Heating expenses I 28.02.1998 000000251999MVSO02/01/1998 115.00- 15.00- UNI 5001 Foll.-up posting.. I 28.02.1998 000004961999MVSO03/01/1998 6900.00 900.00 UNI 1000 Basic rent P 31.03.199803/01/1998 575.00 75.00 UNI 2000 AP Operating costs P 31.03.1998

Plan/actualindictor

If ind. I=> Debit pos. ID

Follow-up posting ind.Receivable +Credit -

ALV:•Configures columns (to show/hide, define length)•Sorts•Filters•Subtotals•and so on

Click on the debit position ID to branch to the documents

The cash flow forms the basis of the debit position and contains the planned records for the postings. If you have entered conditions in the contract, the system generates a cash flow (payment plan) that generates periodic planned records for the debit position postings for each condition type for a defined number of years, depending on the settings made in Customizing. The planned records are identified by a P. The planned records due in active rental agreements are posted with the debit position, and are thus changed to actual records identified by an I.

When conditions on rental agreements are changed, the cash flow is changed accordingly. A date for the necessary follow-up postings must be entered for active rental agreements (the current date is the default value). When the next debit position, for which these items are due, is posted, these items are taken into account.

You CANNOT ascertain from the cash flow if the items have been cleared. To do so, you have to refer to the tenant's open items or tenant account sheet.

You can configure the list as you require. For instance, you can display only the flow type or also the accounts.

The cash flow is generated up to the following date: Number of years defined in Customizing plus the number of months up to the end of the half/full year as of the system date.

The cash flow has to be regenerated on a regular basis (at least every six months). The update is generally done as a batch job.

The cash flow is also generated for rental units, the general contract and management contract.

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© SAP AG 1999

Debit Position Reversal

Entire debit positionreverse in rental accounting

Individual documents from the debit positionreverse in Financial Accounting

If already cleared: Reverse clearing beforehand

Effect: Adjustment of cash flow (actual positions revert to planned positions)

Debit position reversal: Not usually required because...... backdated condition changes are taken into account during the next debit position. In any case, debit positions can be posted at any time.

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© SAP AG 1999

Rental Units: Usage and Debit Position

Condition

Customer

500

RA revenueRA

Rental agreement -rented externally

Vacancy rental unit

External

Customer

Rental agreement -rented internally

Activity

AccountAccountassignmentobject

Debit position Vacancy debit position

500

Receivables

500

Account: Externalaccounting view (FI)

Account assignmentobject: Internal accounting view (CO)

CostsOwn usageCost center

RevenueOwn usageRU

500

Imputed costsVacancyRespons. CCt. or RU

500

Imputed revenueVacancyRental unit

500

Internal

Cost center

Vacancy

Respons. cost center

500

Debit position for external usage

Post

ing

reco

rd

Own usage: Rental agreements can be made with cost centers belonging to your own company (company code) but this does not apply to external partners. Rental agreements for own usage do not have a master tenant with customer account. The tenant in this case is a cost center in the company with payment data defined in the rental agreement.

The same condition types (basic rent, advance payment operating costs and so on) are used. The debit position postings for own usage are transferred to different accounts.

Posting is: Debit "Costs own usage" with auxiliary account assignment to the cost center that is renting the rental unit Credit "Revenue own usage" with auxialiary account assignment to the rental agreement

Vacancy: It is possible to post a vacancy debit position for rental units that are not rented. Posting is: Debit “Imputed costs vacancy” Credit “Imputed revenue vacancy”

The auxiliary account assignment for the revenue posting is the rental unit. A vacancy cost center that must be defined by you in the rental unit is used as an auxiliary account assignment for the imputed costs. If you do not maintain a vacancy cost center in the rental units, the imputed costs are assigned directly to the rental unit.

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© SAP AG 1999

Controlling (CO) View

PC

PC

PC

Settlement unit

Business entity/building/property/rental unit

PC

PC

Rental agreement

Cost centerCost center

RE accountassignment object

Account assignmentobject in CO standard

Process

ExternalrentalOne-time postings

Vacancy debit position


Purchase orders/Invoicesfor example for plant maintenance, invoices for service charges

Internal rental

VacancyRental unit

In Financial Accounting, you have to create a cost element for a cost account in Controlling. If you post to cost accounts during a posting procedure, the corresponding cost elements are assigned at the same time. This results in documents in both FI and CO.

The costs of internal rental are assigned to a cost center defined in the rental agreement. The (imputed) vacancy costs are assigned to the rental unit; these may be assigned to a cost center if required; in this case the cost center for vacancy has to be defined in the rental unit.

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© SAP AG 1999

Account Determination Debit Position

Starting point:The automatic postings of the debit positions are made using the condition types.

The condition types (basic rent, advance payment operating costs and so on) are independent of usage (third-party usage, own usage, vacant).

Each usage type should have a different account.

Solution:Each condition type refers to a flow type (Customizing).

The flow type determines the account determination.

If there is no third-party usage, the postings can be transferred to other accounts. The original flow type is allocated a further flow type (reference flow type) using a relationship key.

Remember!!Condition type Flow type (Reference flow type) Account determination

With flow type and reference flow type CC

The automatic postings of the debit positions are made using the condition types. Each condition type refers to a flow type (Customizing).

Each flow type is assigned a posting scheme containing the document type, posting key and, if necessary, the special G/L indicator and symbolic accounts.

The symbolic accounts are assigned a G/L account for each chart of accounts used. The account symbol * is used for customer postings. Customer postings are posted to a customer account (subsidiary ledger) with a customer posting key. At the same time, the receivables reconciliation account, which is defined in the master data, is updated in the general ledger.

If you set the special G/L indicator, the system makes the posting to the special G/L account that is assigned to this reconciliation account. (Specified in FI Customizing).

The account determination is contingent on: - flow type - partner membership to the corporate group (corporate indicator) - main usage type of the object - a fourth freely definable account assignment value (field in the rental unit/rental agreement).

"+" can be used as a wildcard character. The main usage type is an attribute of the building or property to which the rental unit belongs and is derived from the asset class if Asset Accounting data has been maintained.

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© SAP AG 1999

Condition

Customer

500

RA revenueRental agreement

CostsOwn usageCost center

500

RevenueOwn usageRA

500

Imputed costsVacancyRespons. CCt. or RU

500

Imputed revenueVacancyRental unit

500

External

Customer

Internal

Cost center

Vacancy

Respons. cost center

Activity

Reference flowtype

AccountAssignment object

None 1004 BR own usage 1003 BR vacancy

Debit position Vacancy debit position

500

Receivables

500

Account: Externalaccounting view (FI)

Account assignmentobject: Internal accounting view (CO)

Starting situation

Customizing

Condition type 10 basic rent (BR)

assignCondition type flow type 1000 basic rent, external (reference flow type) acct assgmt

Other influences on the account assignment:main usage type, corporate group ID, 4th account assignment value Maintain document type, posting key and account symbol

Account Determination Debit Position - Procedure

With flow type and reference flow type

Rental agreement -rented externally

Rental unit -vacant

Rental agreement -rented internally

Post

ing

reco

rd

CC

CustomerRA revenueRA

Own usage: The account assignment is made with a reference flow type that is assigned to the original flow type. The debit position is thus transferred to other accounts.

Vacancy: As is the case with the account assignment for own usage, the vacancy account assignment is made with one of the reference flow types assigned to the original flow type. If no reference flow type is available for the vacancy, no posting is made.

Austria/tenant service charge settlement: Reference flow types have to exist for the advance payment conditions of the service charges.

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© SAP AG 1999

Flow category

3UAN

Customer1000 1000 12001000

2001000200

Example for overpayment

Activity-related account determination

Realized by flow categories→ automatic determination of the flow type

Receivable Incoming payment

Flow type

8000

Account determination

Posting rule

Account Determination Without Condition Reference

You can find several flow types for specific purposes in so-called flow categories. Example: A tenant has an open receivable of $1,000, but makes a payment of $1,200. The open item has to be cleared and the overpayment registered as a payment on account. The posting rules for the overpayment are determined as follows: A flow type is defined for flow category 3UAN, which has account determination rules. In the case of overpayment, account determination rules for credit postings are required.

The flow type is determined via a flow category in the following cases: - unqualified down payments - underpayments - installment agreements - writing off bad debts - cash deposits - percentage surcharges for service charge settlements (as shown here) - service charge settlements for internal usage (see Service Charge Settlement) - tenant service charge settlement, Austria (Service Charge Settlement, see IMG)

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© SAP AG 1999

Account Maintenance

Unqualified down payment

(flow category 3UAN)

Receivable(flow category 3UNT)

Installment payment(flow category 3RAT)

Bad debts(flow category 3UNB)

Open Items

The account maintenance enables you to: - Group open items together in one open item - Group several unqualified down payments in one down payment amount - Write off open items that cannot be collected as bad debts on an expense account - Calculate an installment payment (according to number of installments or amount per installment)

The account determination is made with a flow type (activity-related account assignment without condition reference).

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© SAP AG 1999

Transaction: One-time postings

Entries:• Document header• Amount and tax• Flow type• Posting text

Flow type for one-time postingsAccount determination

Financial accounting generates document on master tenant's customer account

CC

A

RERE

FIFI

One-Time Postings in Rental Agreements

With the one-time postings function, you can make account assignments directly to rental agreements. The system generates the posting records based on the flow type entered at the time of postings.

You need to define the flow types as flow types for one-time postings; the flow type groups also have to be maintained.

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© SAP AG 1999

Account Determination: Application and Procedure

One-time posting Derived directly Flow type Posting rules

Debit position Third-party usage

Derived directlyfrom condition type

Own usage,Vacancy,Follow-up posting...

Derived indirectlyfrom condition type

Flow typePosting rules

Flow type + process

Ref.flow typePosting rules

Activity-relatedpostings (installment payment, overpayment...)

Derived from flow category

Flow categoryFlow type Posting rules

This graphic shows the various account determination procedures we have examined so far.

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© SAP AG 1999

Activity• Own usage 039• Follow-up postings

• backdated condition increase 002• backdated condition reduction 032

• Vacancy 038• Service charge settlement

• posting of settlement results 004• credit from settlement (only own usage) 003

• Accruals• deferred debits (rent paid in advance) 005• deferred credits (rent paid in advance) 007• accrued debits (rent paid in arrears) 006• accrued credits (rent paid in arrears) 008

• Customer account postings in management contract 033

Condition type

CC

Flow type Reference flow type

Relationship key

Reference Flow Types

Reference flow types are used to determine alternative flow types that result from the original flow types.

The reference flow types appear in the cash flow. This graphic shows the individual relationship keys.

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© SAP AG 1999

New Condition Type

Required Flow Types:Third-party usage Flow type Rel.key Ref.flow type

Flow type for basic rent (BR) 1000 - -Follow-up posting BR (receivable) 1000 → 002 → 1001Follow-up posting BR (credit) 1000 → 032 → 1002

VacancyBasic rent vacancy (BRV) 1000 → 038 → 1003Follow-up posting BRV (receivable) 1003 → 002 → 1023Follow-up posting BRV (credit) 1003 → 032 → 1033

Own usageBasic rent own usage (BRO) 1000 → 039 → 1004Follow-up posting BRO (receivable) 1004 → 002 → 1024Follow-up posting BRO (credit) 1004 → 032 → 1034

ExampleExample• Starting point:

•New condition type basic rent 10• Activities to be taken into account:

•Third-party usage•Own usage•Vacancy

In the case of advance payments, additional flow types are required (See IMG documentation)

C

This example shows that a reference flow type can also be used as an original flow type. Create a flow type appropriate for each condition type, even if these are for the same accounts as the flow type determines the corresponding text in the cash flow and the debit position.

Brief description of how to create new condition types (including flow types and account determination): Determine which flow types are required for the condition type. Create flow type (including reference flow types for receivable and credit follow-up postings, own usage and vacancy).

Assign reference flow types to flow types. Specify account determination for flow types. Create condition type and specify flow type. Assign condition type from the appropriate condition group (for instance, rental agreement). Assign condition type to a condition category.

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© SAP AG 1999

FIFI FI standard functions

RERE RE additional functions

ManualManual(e.g. cash payments)(e.g. cash payments)

Selection viarental agreement no.

Individual entryCollective entry

Posting

FIFI RERERERE

Payment programPayment program(collection)(collection)

ElectronicElectronicaccount statementaccount statement

transfertransfer

FIFI

Master dataDocumentsParameters

Payment proposal

Postprocessing

Payment, postingDME

Account statement,handling of returns

Electronicaccount statement

Evaluation according torental agreement nos.

Posting

Postprocessing

Incoming Payments Processing

There are several ways of processing incoming payments, some of which belong to FI and some of which are additional functions specific to RE.

You have to differentiate between automatic and manual processing. The automatic processes are subdivided in the payment program (for collection authorization -> participation in debit memo procedure) and the electronic account statement entry ("bank transfers"). The R/3 System supports all current international standards for account statement formats, such as MultiCash. It also supports the German bank procedure "BK01", which is a special form of real estate-specific account statement.

The system assigns bank transfers to open items of customers with the electronic account statement entry using various criteria. You can also specify if the system is to create residual items for underpayments or make payments on account. If there is not enough information for an assignment, such documents are collected on an account for rejected items and can be manually assigned later on.

The Customizing settings made for determining the sequence for clearing open items and residual items or making payments on account apply equally for electronic account statement entry and for manual incoming payments.

The system generates the data carrier needed to transfer debit memo information to the corresponding house banks.

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© SAP AG 1999

Payment Program - Collection Authorization

Principle of FI payment programPayment method for line item

Payment method for customer master data

RE uses the FI functionsScenario A: Collection authorization by customer

=> Do not define payment methods in rental agreement

=> Use payment methods in customer master record

Scenario B: Collection authorization by rental agreement

Define payment method in rental agreement

Payment method in rental agreement is adopted in document

The customer master record must not include "E".

Payment methods in FITotal payment

Grouping payments, for instance using the rental agreement number

Individual payment of open items (indicator in customer master record) => DO NOT USE FOR CONDITIONS ETC.

If a payment method has been defined in the rental agreement or condition item, the debit position fills the payment method in the line item.

Note that you should not use payment option "Individual payment of open items" for RE because with this method not only a document but a bank posting is generated for each condition!

Also note the following, which often leads to errors: You have to specify which items are payable for the special general ledger transactions. Special G/L

transactions are used particularly for advance payments on service charges (see section on Service Charge Settlement).

The special G/L transactions have to be classified as A (down payment).

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© SAP AG 1999

MasterMasterrecordrecord DocumentsDocuments

DunningDunningproposalsproposals

ProcessingProcessing

Dunning levelDunning level Dunning blockDunning block

Sample printoutSample printout

CurrentCurrentcontrolcontrol

parametersparametersBasic Basic

parametersparameters

Dunning: Starting the FI Program

- Execution -

- Print -

Dunningletters

Dunninglist

After the debit position run, the documents contain the following information relevant for the dunning program: payment method, dunning area, dunning block if required, and contract number. The treatment of documents is the same as in FI. Items subject to dunning are those that:

- Are due (or overdue) - Do not have a dunning block - Do not have an incoming payment method in the items or in the customer master record - Have an incoming payment method but also have a payment block

The system uses the dunning form that you defined in Customizing (standard form) for the dunning area and assigned dunning procedure.

Dunning letters are only sent to customers (standard FI procedure: does not apply for RE, see next slide) You generally make your selections by customer accounts, but it is also possible to select customers by Real Estate object (rental agreement, business entity, and so on). Alternatively, you can use the free selection function and field name BSID-VERT to select only rental agreements. You can also use the free selection function by rental agreements in the payment program. An additional log is created in the dunning program as well as the payment program , which is a useful feature.

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© SAP AG 1999

You can define partner roles as being additional dunning recipients (with a specific dunning level)

The dunning level and date of last dunning is updated in the rental agreement

Dunnable payment methods

Prerequisite: Dunning groupings by rental agreement number

Dunning: Special RE Features

Special handling is used if there is a dunning grouping according to contract numbers in the customer master record. This grouping must consist of the following fields in this order:

- Contract number VERTN length 13 - Contract type VERTT length 1

Special handling is applied as follows: Apart from those items that are dunned as a routine in FI, all other items are dunned that:

- have a payment method in the item or in the customer master data that can be dunned You must define in RE Customizing those payment methods that can be dunned. If a tenant has several rental agreements with different levels, the dunning level of the customer is the highest possible dunning level. The dunning levels are updated in the next dunning run.

Partners that are in the dunning program as well as customers can receive dunning letters.

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Rental Accounting Reports

Rental accountingRent account

Open items list

Balance list

Incoming payment according to date

Open items for each business entity

Posting log

Call up the following reports to see what data is stored: Master Data/Agreements - Contracts - Rental Accounting - Rental Account Master Data/Agreements - Contracts - Rental Accounting - Open Items by Business Entity

With regard to the "Posting Log" report, you should note that it is possible to select by transaction code

(for instance, FOSA for rental accounting debit position) or by activity (for instance MVSO for debit position).

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© SAP AG 1999


Carry out the debit position

List the various options for making postings

List the options for incoming payments and account maintenance

Describe the procedures used for account determination

Describe the relationship between conditions, flow types, reference flow types, debit position and automatic account determination

Rental Accounting: Unit Summary

(C) SAP AG AC290 4-28

Rental Accounting Exercises

Unit: Rental Accounting Topic: Debit Position, Incoming Payments, Vacancy Debit Position, Payment, Dunning, Rent Reduction


• Carry out a debit position

• Release Real Estate objects for account assignment

• Make a vacancy debit position

• Manually post an incoming payment

• Check the account information of your tenants

• Fix a rent reduction

• Make an automatic payment run and a dunning run

First create and activate rental agreements, then carry out the debit position, which generates open items on the tenant accounts. You can run a manual or an automatic incoming payment.

4-1 Simulate the debit position and make the debit position for your business entity for January of the previous year.

Display the following:

Tenant account sheet

Tenant customer account

OI list

Posting log

Test the posting log functions.

4-2 The tenant pays the previous month's rent in cash.

4-2-1 Post the incoming payment (manual incoming payment), account number 100.000.

4-2-2 Display the customer account or the tenant account sheet.

(C) SAP AG AC290 4-29

4-3 A limited rent reduction has been fixed with the tenant for February of the previous year. Enter the rent reduction and then make a debit position for February of the previous year.

4-4 Make a vacancy debit position for your business entity. First release your rental units for account assignment.

4-5 (*) Make a dunning run and check that the dunning level has been updated in the rental agreement and customer account.

4-6 (*) Enter an account for the tenant using collection authorization. Carry out an automatic debit with the payment program (payment method E). Check before the payment run that the tenant has open items and afterwards that they have been cleared.

(C) SAP AG AC290 4-30

Rental Accounting Solutions

Unit: Rental Accounting Topic: Debit Position, Incoming Payments, Vacancy Debit Position, Payment, Dunning, Rent Reduction

4-1 Accounting → Real estate management → Rental accounting → Postings → RA debit position → Simulate Or Accounting → Real estate management → Rental accounting → Postings → RA debit position → Execute

Display tenant account sheet, customer account, open items list:

Accounting → Real estate management → Rental → Rental agreement → Display Enter number of rental agreement and confirm.

Environment → Tenant account sheet or Tenant: open items or Display customer account Posting log:

Accounting → Real estate management → Rental accounting → Postings → Posting log

4-2 Incoming payment

4-2-1 Accounting → Real estate management → Rental accounting → Incoming payments/account maintenance → Individual document manual incoming payment

Enter the date, account (100 000) and account assignment amount.

Choose Edit account. Choose Open items and select the required items in the next screen or choose OI automatic allocation RA. If the amount entered is either more or less than the open items, an advance payment or a receivable has to be made.

4-2-2 See solution 4-1.

4-3 Accounting → Real estate management → Rental → Rental agreement → Change → Rent reduction Enter the rental agreement number and confirm.

(C) SAP AG AC290 4-31

Double-click the condition type to be reduced (basic rent) and choose a rent reduction condition type in the dialog box, confirm your entry and maintain the rent reduction in the next screen. Carry out the debit position as in 4-1.

4-4 Release rental units for account assignment (mass processing) Accounting → Real estate management → Tools → Account assignment → Account assignment release Release objects for account assignment (single processing) Accounting → Real estate management → Master data → Objects → Rental unit → Change Enter the rental unit number and confirm.

Choose Edit → Release Vacancy debit position: Accounting → Real estate management → Rental accounting → Postings → Vacancy debit position → Execute

4-5 Accounting → Financial accounting → Accounts receivable → Periodic processing → Payments

In the initial screen, enter a self-defined identification and maintain the parameters.



Customers Your customers

Documents posted up to "Today"

Select the appropriate log for your customers so that you can see the detail log.

Schedule the dunning run (Schedule dunning run). (Start immediately, no printer).

Press ENTER repeatedly until you have the status “Dunning selection is complete”.

Choose View dunning list.

Start the Sample printout.

When the Sample printout is complete, start the Dunning print. Finally check that the dunning level in the rental agreement (Payment data tab) and in the tenant with customer account (Company code → Dunning data) has been updated.

(C) SAP AG AC290 4-32

4-6 Accounting → Real estate management → Rental → Rental agreement → Change → Rental agreement master data

Enter the rental agreement number and confirm. Choose Partners. Choose Choose partner for the master tenant with customer account. Choose Goto → Central data → Bank details.

Flag the field "CollectAuth".

Choose Goto → Company code data → Automatic payment transactions.

Enter E in the "Payment methods" field.

Check if the tenant has any open items. Accounting → Real estate management → Rental → Rental agreement → Display Choose Open items.

Carry out the debit position if required.

Execute the bank collection by using this path:

Accounting → Financial accounting → Accounts receivable → Periodic processing → Payments

In the initial screen, enter a self-defined identification and maintain the parameters.


Company codes See "Exercise Data"

Payment methods E

Customers Your customers

Documents entered up to "Today"

Select the additional log for your customers so that you can see the detail log.

Press Schedule proposal. Select Start immediately. The status is updated by double-clicking Status.

Press Display proposal and Display proposal log.

Press Schedule payment run. Select Start immediately. The status is updated by double-clicking Status.

Check if the tenant's open items have been cleared. Accounting → Real estate management → Rental → Rental agreement → Display Press Open items.


© SAP AG 1999

Contents:ProcedureAdjustment methods

Rent Adjustments


© SAP AG 1999


Explain the procedures used for rent adjustment

Describe the rent adjustment methods

Rent Adjustment: Unit Objectives


© SAP AG 1999

Course Overview

Settlement

GeneralContract(Tenant Rental)

InformationSystem

Taxes§§


Integration

Correspondence

Controlling

Master Data

Rental

Rental Accounting

Rent Adjustment


© SAP AG 1999

You want to change the rent on your rental agreements

Select the method needed for the rental agreement and the situation

Rent Adjustment: Business Scenario


© SAP AG 1999

Rent Adjustment Methods

Free adjustmentIndexRepresentative list of rentsComparative apartmentsComparative methodExpert opinionConstruction measuresAny conditionsArea changeAmount transfer from rental unit to rental agreementAdjustment advance payments / flat ratesCountry-specific

Cost-efficiency analysisSwitzerland

Customer-specific methods

You must define at least one adjustment type for a rental agreement. The adjustment type determines the adjustment methods that are permitted (settings in Customizing). You can also restrict the condition types that can be used with certain adjustment methods.

Combinations of adjustments are possible (for example, an indexed sales-based rent). In the rent adjustment run, you can choose to take account of the increase percentage rate defined for the rental object.

Certain adjustment methods used for residential rental agreements take into account the rent cap (methods: representative list of rents, comparative apartments, free adjustment - residential).

You generally use the amount transfer method when different conditions exist in the rental agreements and rental units and you want to adjust these uniformly in the future. The amount transfer creates the required basis.

Country-specific rent adjustment: note in particular the Swiss rent adjustment (takes into account the rent reserve based on absolute factors (rent in accordance with locality, marginal gross yield) and relative factors (standard of living index, mortgage loan rate, maintenance and operating costs).


© SAP AG 1999

Rent Adjustment Process

• Header (ID)• Adjustment records• Log

Simulate adjustment

List of List of calculated calculated adjustmentsadjustments

Enterapproval

Correspondencenotification

Activatenew

conditions

Fix adjustment

Check andchange,if necessary

Rental agreement

Rental unitAdjustmentrun data

Check andchange,if necessary

Remind thatapproval required,

if necessary

Adjustmentrun data

If you want to make a rent adjustment, you can first simulate the adjustment. The simulation generates a list of the possible rent adjustments. You can change the values in the list and if the results of the simulation fulfill the requirements, you can save the simulation.

“Simulate rent adjustment” + Save = “Calculate rent adjustment”. The procedure “Calculate rent adjustment” is useful for planning a rent adjustment run (as a background job). You may still change the data saved (before activation and approval, by choosing the “Activate” menu path in the detailed screen).

The system creates a log listing the reasons as to why a particular adjustment does not work for every adjustment run.

The system takes into account any periods and limitations that are set by law. Rent adjustments that are subject to approval can only be activated after the approval has been entered. Methods that are subject to approval are defined in a system table that cannot be edited. The approval is maintained in the application using the “Activate” menu option.

Calculated rent increases can be partially passed on to the tenant. The reasons for reducing the rent increase and the percentage rate of the amount that is passed on to the tenant are maintained in the rental unit.

Rent adjustments that have been made and those that are planned can be viewed in the master data dialog of the rental agreement.


© SAP AG 1999

Rent Adjustment Data Relevant For Master Data Objects

ObjectBusiness entity

Building

Rental unit

FieldsTenancy law

Construction year/location

AreasFixtures and fittings categorySurcharges/reductionsModernization date

Usage type

Percentage rate of increase

EffectRent cap

Time between two rent adjustments

Representative list of rents

Representative list of rents

Permittedadjustment methods

Adjustment amount

Some master data fields have an effect on the rent adjustment for residential apartments. The tenancy law that is maintained for the business entity determines the legal requirements that affect the rent adjustment for residential apartments.

The construction year that is maintained for the building determines the building age class relevant for the representative list of rents.

The location class used in the representative list of rents is the one belonging to the building. A representative list of rents that uses location classes must be maintained for the business entity for “location class” field to be displayed and maintained.

Data relevant to the representative list of rents is maintained for the rental unit: Area Fixtures and fittings categories

If necessary, you can also enter surcharges and reductions. If a date for modernization has been entered in the rental unit, this overrides the construction year entered for the building.


© SAP AG 1999

Free Adjustment, Adjustment of Any Conditions, Garage Rent

Enter adjustment values at program start

Increase per area unit

Relative increase in percentage

Total increase

New amount per area unit

Total new amount

Residential

Commercial

Garage

The “Free adjustment”, “Adjustment of any conditions” and “Garage rent adjustment” methods adjust rent based on the values defined at the start of the program. Possible values:

- Absolute - Relative

Use “Free adjustment” when there is no other suitable method. The “Free adjustment residential” applies a rent cap.

No rent cap is applied for “Any condition”. Note the exceptional case for this type of adjustment that the condition types to be adjusted have to be determined in the "Adjustable conditions" Customizing table.


© SAP AG 1999

Generate New Conditions - Example of Usage

Starting point:• Rent reduction affects a group of rental

agreements (for example, noise fromconstruction sites)

• There is no "Rent reduction" condition onthe rental agreement

Procedure:• Rent adjustment method "Any conditions"• Select the rental units• Select "Rent reduction" condition• Select the parameter "Generate new conditions"

New condition types can be generated for each object with "Any conditions" and "Amount transfer". The "Amount transfer" method can only be used when the corresponding conditions are already defined for the original object. When "Any conditions" is used, the conditions for the rental agreements and rental units can be generated from scratch.

(C) SAP AG AC290 5-10

© SAP AG 1999

Base year 1985Index series 7000 Cost of living index of all Index levels private householdsIndex date Index number... . . . .05 1994 127,40004 1994 126,90003 1994 126,60002 1994 125,50001 1994 124,50012 1993 123,90011 1993 123,600... . . . . . . .

Index19857000

IncreasePercentagePointsPass-on percent

Index-Linked Rent Adjustment

Base year 1985Index series 7000Indexing date

An index-linked adjustment type must be maintained for index-based rental agreements. The adjustment is made using the specified index series and index points maintained in Customizing.

When individual indexes increase or decrease, the possible rent adjustments are determined. The adjustment dates and increase quotas that are fixed in each agreement are taken into consideration.

The basic rent increases in proportion to the index points, and this increase can be further weighted by the pass-on percentage rate. The index must have increased by a minimum amount of points or a minimum percentage rate.

The year and month of the index value used is determined by: - Date of first adjustment - Adjustment delay - Adjustment frequency

If an index clause has been fixed for the rental agreement, no approval is necessary for rent adjustments. However, payment provisions do need approval.

(C) SAP AG AC290 5-11

© SAP AG 1999

Frequency and Delay

Frequency (for instance 3) of rent adjustment (RA)

Adjustment delay in months (for instance 2)

t

t

Backwards

Backwards

8.1.Index data

Case 1: Rent adjustment run = 10.1.

10.1.Date that adjustment is valid from= Date of rent adjustment run

In both cases, the index data for August is available and the new date for the conditions is 10.1.The difference is the date assigned to the rent adjustment run!

tFlexible

1.1. 4.1. 7.1.

Rental start RA RA

Case 2: Rent adjustment run = 8.1.

8.1.Index data

Date of rent adjustment run

10.1.Date that adjustment is valid from

tFlexible

1.1. 4.1. 5.1. 6.1. 7.1. 8.1.

Rental start RA RA RA RA RA . . .

You enter the adjustment frequency and delay for index adjustment data in the rental agreement. Adjustment frequency:

If the "Flexible" field is flagged, the frequency is taken to mean the minimum duration. Otherwise adjustments can only be made with the specified frequency.

Example of frequency: If the frequency is 1, adjustments can be made at any time. If the frequency is 3, adjustments can only be made every three months. If the "Flexible" field is flagged, adjustments can be made any time after three months (as long as this is after the date of first adjustment).

Adjustment delay: As index data is always issued with a delay and the rent adjustment normally applies to a date in the future, the adjustment is subject to a delay. You have the following option: Case 1: The date of the rent adjustment run is the same as the new valid-from date for condition items. Here, the

"Backwards" flag also has to be flagged for the number of months delay. (The index data must exist on the "Rent adjustment date - adjustment delay in months".)

Case 2: Index data is available for the date entered for the rent adjustment run. The delay in months is added to this date to calculate the new date for the conditions.

The difference is the date assigned to the rent adjustment run!

(C) SAP AG AC290 5-12

© SAP AG 1999

CC

1 Basic 2 Medium-range .. .

Building age from 01/01/1995 to 12/31/1995Fixt.& fittings BasicLocation Basic Area From: To: From amount To amount Mean value

20.00 50.0050.00 70.0070.00 . . .

Building age classesValid from Valid to

12/31/193001/01/1931 12/31/194501/01/1946 12/31/1955

From area To area

20,00 49,0050,00 69,0070,00 . . .

DescriptionBasic residential locationAverage residential location ...

Value table

Fixtures and fittings classes

Location classes

Size classes

1 Surcharge 12 Reduction 2 . . .

Surcharge/reduction classes

Representative List of Rents

You have to select a representative list of rents for a business entity to make an adjustment based on a representative list of rents. The representative list of rents is defined in Customizing according to structure: parameters relevant for the adjustment (building age class, location class, fixture and fittings class, size class) are specified. The surcharge/reduction classes must be assigned characteristics. So-called characteristics categories are derived from these classes.

The system uses these structure parameters to generate a value table that you fill with the current data from the representative list of rents.

The system determines the permitted rent as stipulated by the representative list of rents by using the characteristics of the rental unit (building age, building location, fixtures and fittings as a basis).

Only the fixtures and fitting characteristics assigned to the rental unit and the representative list of rents are taken into account for a rent adjustment made using the representative list of rents.

In Customizing, you maintain legal requirements about rent such as rent capping and adjustment frequency. The adjustment takes these requirements into account. You can also adjust rental agreements that have not yet been activated. These rental agreements are not capped.

You can choose the value (from, to, mean value) to be used in the adjustment. You can map rent tables that cannot be mapped with the existing classes with a control table that uses conditions and activity rules to define the calculation base.

(C) SAP AG AC290 5-13

© SAP AG 1999

Comparative apartment 1Living area: 150 m2

Basic rent: $14.28/m2

3 rooms

Comparative apartment 2Living area : 150 m2

Basic rent : $13.30 /m2

3 rooms



3 rooms



3 rooms

Comparative apartment 5Living area: 150 m2

Basic rent: $14.10 /m2

3 rooms

Livingroom

Bed-room

Nursery

Scale 1:75

Minimum number 3:Adjustment to $14.10

Comparative Apartments and Groups (1)

Comparative Rental unit 4711group 1111, Assign Living area 150 m2

with living Basic rent: area of 150 m2 Adjust $2000 3 rooms = $13.33 / m2

Only rental units that are assigned to a comparative group of apartments can be subject to a rent adjustment using comparative rent. The apartments in the comparative group can be used to calculate the new rent.

Apartments from internal stock (rental units) as well as external apartments can belong to a comparative group of apartments.

A minimum number of comparative apartments is necessary for the adjustment. The minimum number of comparative apartments is specified in Customizing.

This minimum number also determines which comparative apartments are used for determining the adjustment. If the minimum number "5" is entered, the rent adjustment is based on the fifth most expensive apartment in the comparative group.

(C) SAP AG AC290 5-14

© SAP AG 1999

Comparative Apartments and Groups (2)

AssignmentRental unit ⇔ Comparative group

Maintain comparative group ofapartments

Apartment X

The rent adjustment for apartment X uses the values of the comparative group

Comparative group

Apartment X

Apartment X is part of the comparative groupNo statement about the assignment

Comparative group

Compar. apartment Apartment X

Your own comparative apartments and external comparative apartments can be used for the comparative group.

You must enter the external comparative apartments with the relevant data. A rental unit can be a part of a comparative group of apartments and assigned to the same comparative group of apartments. CAUTION. When the rent of an apartment is adjusted, the rent of this apartment is not included in the calculation.

(C) SAP AG AC290 5-15

© SAP AG 1999

Livingroom

Bed-roomNursery

Scale 1:75

Expert Opinion

Expert opinion: 4711

Company code: 0001 SAP AG case companyDate of exp.opinion: 01/31/1995Surch/reduct.New amount 17.0 $ / m2

Reasons for surcharge/reduction Participating rental units

Mildew in bathroom / shower BE from RU to RUWindows in need of repair 0001 1234 1238. . . 7777 4711 4717

. . . . . . . . .

If you are going to make a rent adjustment using an expert opinion, then you first have to enter the data for the expert opinion in the system: Specify surcharges, reductions or a new amounts. In the expert opinion, you can also enter the reasons for a surcharge/reduction as defined in Customizing.

You assign rental units that are subject to adjustment to the expert opinion. An expert opinion can be made for any number of rental units from one upwards.

The amount of increase is added to the basic rent. You define a reference to the expert opinion in the rental agreements.

This type of rent adjustment is subject to approval.

(C) SAP AG AC290 5-16

© SAP AG 1999

ApportionmentRental units

Notification

Notification

Planned costs Actual costs

Change rental agreementConditions

Constructionmeasures

Construction Measures: Modernizations

AdjustmentAdjustment

If you are planning modernization measures, you have to create "Construction measures". This describes the modernization measures, the rental units being modernized and the planned costs.

The apportionment of modernization costs can be entered directly or made using the apportionment units to be maintained on the participating rental units.

The increase amount is usually calculated directly into the basic rent or passed on using a separate condition (such as "Surcharge for improvements").

After you have simulated the rent adjustment using the planned costs, you can inform the tenant of his/her share of the costs in a notification letter. This type of rent adjustment is NOT subject to approval. The percentage increase of the costs to be passed on yearly is defined in Customizing.

You enter the actual costs once the modernization is completed in "Construction measures". The actual costs are used to update the data of an adjustment run that has already been made. The actual costs are needed for activating the rent adjustment.

(C) SAP AG AC290 5-17

© SAP AG 1999

Area Change

Prerequisite:The area of the rental unit has changed on the key dateand conditions of rental unit or rental agreement are now based on area

From date

If you have agreed on conditions for the rental unit or rental agreement that are based on area and the reference area of the rental unit has changed, the systems prompts you to say whether adjustment records are to be generated. If you confirm this with "Yes", the dialog of the adjustment simulation has default entries (for example, if you have defined area-based conditions for the rental agreement only and not for the rental unit, there will be a default entry for adjustment objects reading "Only rental agreements"). You finally have to activate the adjustment records.

If you answer the "'Generate adjustment records" dialog with "No", you can initiate the adjustment at a later date using the rent adjustment menu option.

(C) SAP AG AC290 5-18

© SAP AG 1999

Parameter Overview

Basic object (relevant for adjustment of RU and RA)

Separate calculation

Rental unit

Rental agreement

RU/RA parametersOnly adjustment increases

Takes account of RU percentage rate

Includes surcharge for increase in value

Adjusts subsequent conditions (for example, graduations)

RA parametersAlso adjusts inactive RA

Generates new conditions

RU parametersAlso caps RU amount

Only adjusts RU when vacant

Generates new conditions

A CCGeneral parameters

Adjustment parameter for tenancy law

Adjustment parameter for company code

Combination of adjustment type and adjustment method

Combination of adjustment type andRU usage type

Adjustable condition types

Default condition type

Rounding rules

Reasons for adjustment block

Parameters and values for reminders for approval

Text for adjustment letter

In some cases, not all application parameters are available for one particular adjustment method.

(C) SAP AG AC290 5-19

© SAP AG 1999

General parametersAdjustment parameter for tenancy lawAdjustment parameter for company codeCombination of adjustment type and adjustment methodCombination of adjustment type and RU usage typeAdjustable condition typesDefault condition typeRounding rulesReasons for adjustment blockParameters and values for reminders for approvalText for adjustment letter

Representative list of rents (basic data, value table, control table)

Comparative apartments - number range

Expert opinion - reasons

Index

Cost efficiency analysis (specific to Germany)

Rent adjustment for Switzerland

Customizing Rent Adjustment

(C) SAP AG AC290 5-20

© SAP AG 1999


List the rent adjustment methods

Describe the rent adjustment process

Rent Adjustment: Unit Summary

(C) SAP AG AC290 5-21

Rent Adjustment Exercises

Unit: Rent Adjustment Topic: Rent Adjustment – Different Methods


• Use different rent adjustment methods

You will take the following steps:

Prepare, simulate, save, enter approval for a rent adjustment, then finally activate it

There are many methods available to adjust rental agreements.

Do the exercises in the order that best suits your own requirements.

5-1 Make a rent adjustment of the type “Any conditions" by changing the condition for "Air-conditioning". Use the residential rental agreement that you have already created.

5-1-1 Simulate the adjustment.

5-1-2 Save the adjustment.

5-1-3 Print the letter (print preview).

5-1-4 Enter the tenant's approval and activate the rent adjustment.

5-1-5 Display the rent adjustment in the rental agreement.

5-2 (*) Simulate a rent adjustment of the type "Expert opinion" for rental unit 2.

5-2-1 Create an expert opinion.


5-3 (*) Simulate a rent adjustment of the type "Comparative apartments" for rental unit 3.

5-3-1 Create five comparative apartments.

5-3-2 Make a comparative group for the apartments.

(C) SAP AG AC290 5-22

5-3-3 Assign your rental unit to the comparative group.

5-3-4 Simulate the rent adjustment for the comparative apartment.

5-4 (*) Simulate an index-linked rent adjustment.

5-4-1 Create a new rental unit.

5-4-2 Create a rental agreement for this rental unit starting 1 January of the previous calendar year with adjustment type "index-linked rent"; activate the rental agreement.


(C) SAP AG AC290 5-23

Rent Adjustment Solutions

Unit: Rent Adjustment Topic: Rent Adjustment – Different Methods

These exercises are easier to do if you assign a user identification for the simulation run in the rent adjustment selection screen.

5-1 Rent adjustment "Any conditions" – Rental unit 1

5-1-1 Accounting → Real estate management → Rent adjustment → Rent specifications → Any conditions → Simulate Under the "Amounts" tab, enter an absolute or a percentage value. Press "Execute".

5-1-2 Save the result.

5-1-3 Accounting → Real estate management → Rent adjustment → Rent specifications → Any conditions → Print → Adjustment letter Press "Execute". A log is generated. Choose System → Own spool requests. Flag the spool number and choose Display contents.

5-1-4 Accounting → Real estate management → Rent adjustment → Rent specifications → Any conditions → Activate Enter your user identification and press "Execute". Flag the rental agreement number and press Details. Enter the approval date. Choose Activate.

You may also enter a proposal for the approval date.

5-1-5 Accounting → Real estate management → Rental → Rental agreement → Display "Conditions" tab. A new condition item exists.

5-2 (*) Rent adjustment "Expert opinion" - Rental unit 2

5-2-1 Accounting → Real estate management → Rent adjustment → Rent calculation → Expert opinion → Expert opinion → Create

(C) SAP AG AC290 5-24

Enter a surcharge/reduction or a new amount.

Assign your rental unit 2 to the expert opinion using Rental units.

5-2-2 Accounting → Real estate management → Rent adjustment → Rent calculation → Expert opinion → Simulate

5-3 (*) Rent adjustment "Comparative apartments" - Rental unit 3

5-3-1 Accounting → Real estate management → Rent adjustment → Rent calculation → Comparative group → External comparative apartment → Create If necessary, use the "Copy from" function.

5-3-2 Accounting → Real estate management → Rent adjustment → Rent calculation → Comparative group → Comparative group → Maintain


Comparative group 1##

5-3-3 Accounting → Real estate management → Rent adjustment → Rent calculation → Comparative group → Assign rental unit Enter the selection criteria for your rental unit and press Execute. Flag the rental unit number and choose Assign comparative group. The assignment determines the comparative group to be used as a basis. However the apartment DOES NOT BECOME part of the comparative group. You have to maintain the comparative group for the apartment to become part of the group. If a rental unit is not assigned to a comparative group, the rent cannot be adjusted.

You can also assign the comparative group by choosing Change rental unit → Edit → Assign comparative group.

5-3-4 Accounting → Real estate management → Rent adjustment → Rent calculation → Comparative group → Simulate Choose Log to display information on the simulation. You can expand the log to display additional levels of detail.

(C) SAP AG AC290 5-25

5-4 Rent adjustment "Index" - New rental unit

5-4-1 See the solutions to the "Master Data" unit.

5-4-2 Specify the rental to start on 1 January of the previous calendar year. Choose the index-linked adjustment type. Press "Multiple selection". Press Adjustment data.


Index series 1

Base year 1991

Index start Same as rental start

Adjustment frequency 1

1st adjustment from 01/01/2000

Adjustment delay 1

Backwards X

Activate the rental agreement.

5-4-3 Accounting → Real estate management → Rent adjustment → Rent calculation → Index → Simulate


© SAP AG 1999

Contents

Operating cost settlement

Heating expense settlement

Service Charge Settlement


© SAP AG 1999


Describe the service charge settlement process. Individual steps in this process are:

Creating the infrastructure

Posting vendor invoices

Implementing the service charge settlement

Adjusting the advance payments

List the factors influencing the service charge settlement

Describe the relevant postings

Service Charge Settlement: Unit Objectives


© SAP AG 1999

Course Overview

Rent Adjustment


InformationSystem

Taxes§§


Integration

Correspondence

Controlling

Rental

Rental AccountingSettlement(Service ChargeSettlement)

Master Data


© SAP AG 1999

Carry out the process required for the service charge settlement. This involves the following steps:

Creating the infrastructure for the service charge settlement

Posting apportionable costs

Making the actual service charge settlement

Adjusting advance payments

Service Charge Settlement: Business Scenario


© SAP AG 1999

Purchase orders/contracts/agreements

Invoice

Data entry

Settlement unit

GardeningElevator Water

Rntl agrmnt RA1 Rntl agrmnt RA2 Rental unit 1 Rental unit 2

Settlement

Overview: Service Charge Settlement

Expenses that arise in a period are entered in the form of invoices in FI. The invoices are assigned to the relevant settlement units during the posting.

You have to have the correct time assignment and contents assignment to post the costs (time assignment: reference date, contents assignment: settlement unit).

The function "Complete settlement" is used to settle costs to the relevant objects - rental units, rental agreements. The settlement apportions costs to the tenants or, if the costs cannot be apportioned to the rental agreements, to the rental units (for the purpose of cost controlling).


© SAP AG 1999

Participation ID of SCS

Participation ID for property tax, water, ... (all)

Participation ID for garden (4, 5, 6)

(Participation ID) (Participation ID) for elevator (1, 2, 3)for elevator (1, 2, 3)

1 2 3

4 5 6

You use the participation ID to group together rental units participating in a service charge settlement. You can use the participation ID as a reference for the service charge settlement and address each group of rental units individually.

Example: The garden costs only apply to the rental units 4, 5 and 6. You create a participation ID with exactly these rental units.


© SAP AG 1999

Structure of Service Charge Settlement

1

2

3

4

5

6

All

Ground floor

Rental unit Participation ID Service charge key

Upper floor Elevator

Water

Garden

Rental units are assigned to service charges by means of participation IDs and service charge keys.


© SAP AG 1999

WHAT?Service charge

key

900 Cleaning

WHO?Participation ID

GF RE1, RU2

WHEN?Settlement variant

"Period"annually

from 01/01/98

Service charges

HOW?Apportionmentfactor

•Basic area•Persons

Cost collector 11998



. . .

Cost collector 1generated

Cost collector 2not generated

Cost collector 3 not generated

. . .

Invoice

generate

= released foraccount assignment

Settlement Unit

The settlement unit is used to collect the costs for a specific service charge key, a specific participation ID and a specific settlement period. An apportionment factor defines how the costs are to be divided up for each settlement period.

A participation ID can contain rental units from different business entities. A cost collector is generated for each settlement period in the settlement unit. This cost collector is a CO object.

The costs collected for a settlement unit during the settlement period are settled between the rental units belonging to a participation ID for the service charges. You have to specify the date from which a settlement unit is valid. This date and the settlement variant comprise the settlement period.

The "Settlement participation" function in the rental agreement can be used to specify which service charges can be apportioned to the tenant and how much, if any, can be apportioned to the landlord. The settlement participation is a relationship between the conditions for the rental agreement (advance payments, flat rates) and the service charge keys (and, hence, the settlement units). When settlement units are created after the settlement participation, you have to regenerate the settlement participation in the rental agreement.


© SAP AG 1999

Master Settlement Unit (Master SU)

Master SU(street-cleaning

and garbage)

Settlement unit(street-cleaning)

Settlement unit(garbage)

Distribution by:• Apportionment unit• Equivalence figures• Formula for calculating the hot water share

The vendors lump together various service charges affecting different settlement units and bill them in one invoice, for instance heating expenses and hot water costs. The costs then have to be distributed to the correct settlement units according to a certain key. You have to define special settlement units for this pre-distribution of costs, and these are called "master settlement units". You can collect (post) costs on a master settlement unit and define the calculation base for distributing these costs to the correct participating settlement units.

Examples of calculation bases: Apportionment unit Equivalence figures A country-specific formula for calculating the hot water share

The service charge settlement uses the corresponding calculation basis to post the costs to the participating settlement units and allocate them proportionately. This creates a transparent cost situation down to the level of the individual settlement units. To distribute costs from the master SU to the participating SUs, you have to specify in Customizing for Real Estate a "Master SU credit account" and a "Master SU receiving account" for the cost element that was originally posted.

(C) SAP AG AC290 6-10

© SAP AG 1999

Account Determination Keys: Settlement Unit and Participation ID

Key• Company code• Business entity• Service charge key• Name of settlement unit

Other keys• Valid-from date of SU• Valid-to date of SU• Participation ID assignment with

valid-from date• Apportionment unit• Settlement variant

Key• Company code• Business entity• Name of participation ID

Other keys• Valid-from date of participation ID• Valid-to date of participation ID• Assigned rental units withvalid-from/to date

Settlement unit Participation ID

Note that for invoice account assignments to a cost collector, you have to specify ALL elements of the account assignment key apart from the reference date. If, for instance, you do not specify the business entity, the settlement unit is valid for all business entities.

(C) SAP AG AC290 6-11

© SAP AG 1999

Account determination keysfor settlement unit

Settlement type• Advance payment• Flat rates• Final settlement• No participation

Percentage share of tenant

Maximum costs per SCK and per condition type

Apportionment factor (value of apportionment unit)Validity period of rental agreement

Validity period

Participant• Participation ID• Period of assignment

Apportionment unit• Per settlement period• Several apportionment

units with percentageshare

Settlement participation is automatically generated

Settlement participation

Settlement participation

Additional keysrental agreement / rental unit(maintained manually)

Account Determination Keys for the Settlement

Settlement participation in the rental agreement is automatically generated by the settlement participation infrastructure. You can use the function "Settlement Participation" to view, manually change or specify more precisely the data concerning the apportionment of service charges to any particular tenant (for instance, the landlord's share of costs, maximum costs per condition type or maximum costs per service charge key).

Settlement participation is a relationship between the conditions (advance payment, flat rates) on the rental agreement and the settlement units (and, hence, service charge keys).

If the infrastructure of the existing rental agreements is changed at a later date (for example, a settlement unit is created), the settlement participation of the agreements affected by this change have to be regenerated.

The landlord bears a share of the costs if the pass-on percentage rate (tenant share) that has been fixed for the service charge key is not allowed to exceed more than 100%. The landlord also bears any costs that exceed the maximum costs as stipulated in the contract.

(C) SAP AG AC290 6-12

© SAP AG 1999

RE

Document type: CR

C Vendor account - $1,000

D Service charge costs - $1,000

Vendor

1000

Auxiliary account assignment to CO object:BE: 815, 17 Forest Av.SCK: 7000 CleaningSettlement unit: AllReference date: 07/23/98

InvoiceCompanyEasiclean

CleaningHallway17 Forest Av. $1,000 Service

charges

1000

Posting Service Charges

Service charges are recorded as invoices in Financial Accounting (Accounts Payable). Posting record: Service charges account to vendor. You enter the settlement unit in the posting line of the service charges account as the auxiliary account assignment. When the posting is made, the reference date serves as a link to a particular settlement period.

For entering Real Estate account assignments, we recommend that you set up appropriate entry screens in Customizing for Financial Accounting. See the Implementation Guide for further information.

Costs accumulated in a settlement unit for a settlement period can be evaluated using the Information System.

(C) SAP AG AC290 6-13

© SAP AG 1999

LetterLetter

Error No error

Error analysisCorrectRepeat

Check results

-> Update run

Simulation

Update runPost settlementdocuments

Transfer advancepayments

Adjust advance payments

Activate

Full Settlement

EntryEntryEntryCoCd 0001BE: 2072SC key: 300Settlement unit: 1Begin settl. Period: ...End settl. Period: ...

The following activities are carried out in the service charge settlement: Determining the total costs for the settlement period for each settlement unit Distributing the costs to the rental agreements and rental units Determining the surcharges (management costs surcharge or apportionment loss risk) Posting the costs share to the tenant accounts (customer receivables) Determining advance payments (actual payments) made by the tenant and making a credit transfer (batch input)

Determining the new advance payments/flat rates based on actual costs and taking into account any percentage surcharges and minimum amounts for an increase or decrease of the advance payments

Subsequent steps: Activating the advance payment/flat rate adjustment Printing the correspondence

(C) SAP AG AC290 6-14

© SAP AG 1999

Rental unit 1

Mr Jones to 10/8/97 Mrs Smith

AP elevator AP op.costs Flat rate heating exp.AP op.costs + heating exp. from 10/17/97

100 days 8 days 257 days

Rental unit 2

Mr Miller AP operating costs AP heating expenses

Rental unit 3

Miss Taylor Flat rate Oper.costs to 2/28/98243 days Vacancy 122 days

Settlement period7/1/97 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 30/6/98Days 31 31 30 31 30 31 31 28 31 30 31 30

Example: Occupancy of a Rented Object

Service charges are apportioned to rental agreements on the basis of settlement factors (such as by area or by the number of antenna sockets) and on the length of occupancy . The length of occupancy is automatically determined by data on the rental agreement (rental end, notice); varying lengths of months and leap years are also taken into account.

(C) SAP AG AC290 6-15

© SAP AG 1999

04/01/97 $ 1000 Pest elimination

07/07/97 $ 520 Thorough cleaning of stairs

09/1297 $ 120 Hall cleaning

03/04/97 $ 455 Staircase cleaning

07/05/98 $ 250 Hall cleaning

Settl

emen

t per

iod

07/0

1/97

-06

/30/

98

Costs of the settlement period: $1,095 07/01/97 to 06/30/98

Cost collectoruntil 06/30/97

Cost collector07/01/97-06/30/98

Cost collectorfrom 07/01/98

Reference date

Posting date

Invoice

Reference date

Example: Costs

Costs accumulated for a particular settlement period can be evaluated using the Information System (settlement unit postings).

(C) SAP AG AC290 6-16

© SAP AG 1999

x 0.01

Total costs: $ 1095.00

Costs per reference unit: 1095.00 : 109.500 = 0.010

Settlement factor

Length of occupancy

Reference factor (RF)

Costs perRA/RU

Living area No. of days = RF x 0.01RU1 Mr Mayer 100 100 10,000 100.00

Miss Smith 100 257 25,700 257.00RU2 Mr Miller 50 365 18,250 182.50RU3 Miss Taylor 150 243 36,450 364.50Vacancy RU1 100 8 800 8.00

RU3 150 122 18,300 183.00109,500

xxxxxx

======

Total

Example: Calculation

The costs per rental unit/ rental agreement are calculated from the following factors: Apportionment factor Length of occupancy Accrued costs

The reference factor is made up of apportionment units and length of occupancy in the posting period of the settlement period. The total of all reference factors is set in relation to the costs and results in the cost factor per reference factor unit.

The specification whether and to what extent the costs determined can be passed on to the tenant is in the "Settlement participation" in the rental agreement.

If reference is made to consumption factors, the apportionment is made using the calculated consumption.

If consumption for the heating expense settlement is not known (if, say, there has been a tenant changeover and the meter has not been read), the regional location key can be used. This is also referred to as degree day coefficient, heating value days, heating value percentage rates, heating value days, ETH key (Switzerland).

(C) SAP AG AC290 6-17

© SAP AG 1999

Posting Procedures - Service Charge Settlement

General ledger

Revenues

Subsidiary ledger

VendorPayables

Mayer

Smith

Miller

Taylor

Receivables

Expense

RA clearing accountRU clearing accountor passed on costsRU clearing account

Credit account

1095.- (1)1095.- (1)

(1) 1,095 SU

Bal

. she

et

acco

unts

Reconciliation acctsVend

ors

Cus

tom

ers

P/L

acco

unts

1. Posting of service charges incurred When the service charge settlement is being made, the first costs to be determined are those posted to the settlement unit.

The text in italics represents account assignment of the particular account assignment object. CO account assignment is the same as for the FI postings (a debit posting always triggers a debit account assignment). This is not clearly indicated in subsequent slides due to lack of space.

(C) SAP AG AC290 6-18

© SAP AG 1999


General ledger

Revenues

Subsidiary ledger

Vendor Payables Receivables

Expense

RA clearing accountRA clearing acct or

passed-on costs

Credit account

1095.- (1)1095.- (1)

(1) 1,095 SU

RU clearing account

(2c) 8 RU 1(2c) 183 RU 2

1,095(2) SU

(2a) 100 RA Mayer(2a) 257 RA Smith(2a)182.50 RA Miller

(2b) 364.50 RA Taylor

Mayer

Smith

Miller

Taylor

Bal

. she

et

acco

unts

P/L

acco

unts

Vend

ors

Cus

tom

ers

Reconciliation accts

1. Posting of costs incurred 2. Settlement unit credit and cost element

a) further allocation to rental agreements b) no further allocation but result of rental agreements (flat rate) c) rental agreements cannot be assigned (vacancy)

Credits are made from a credit account to a cost account and cost collector of the settlement unit. The offsetting entries are a result of the distribution determined by the settlement and are posted in the following manner: Costs that are to be passed on to the tenant are assigned to the rental agreements and posted to an account "Rental agreement clearing account".

Costs resulting from rental agreements (flat rates, percentage transfer to landlord) that are not to be passed on are also assigned to the rental agreements but posted to an account "Clearing account for rental agreements without passed-on costs".

Costs that have nothing to do with rental agreements (vacancy) are assigned to rental units and posted to an account "Rental units clearing account".

(C) SAP AG AC290 6-19

© SAP AG 1999


General ledger

Revenues

Subsidiary ledger

Vendor Payables Receivables

Expense

RA clearing accountRA clearing acct or

passed-on costs

Credit account

1095.- (1)1095.- (1)

(1) 1,095 SU

RU clearing account

(2c) 8 RU 1(2c) 183 RU 2

1,095(2) SU

(2a) 100 RA Mayer(2a) 257 RA Smith(2a)182.50 RA Miller

(2b) 364.50 RA Taylor

Mayer

Smith

Miller

Taylor 100 (3) RA Mayer257 (3) RA Smith182.50 (3) RA Miller

(3) 100 RA Mayer(3) 257 RA Smith(3)182.50 RA Miller

(3) 100.-

(3) 257.-

(3) 182.50

Bal

. she

et

acco

unts

P/L

acco

unts

Vend

ors

Cus

tom

ers

Reconciliation accts

1. Posting of costs incurred 2. Settlement unit credit and cost element

a) further allocation to rental agreements b) no further allocation but result of rental agreements (flat rate) c) rental agreements cannot be assigned (vacancy)

3. Debit to tenant

Costs that can be passed on to the tenant are posted in the subsidiary ledger to the tenant account and posted as receivables in the general ledger.

The offsetting entry is in the revenue postings on the rental agreements.

(C) SAP AG AC290 6-20

© SAP AG 1999

Debit Position and Incoming Payments (with SC)

Basic rent $500 AP Operating costs $150 Incoming payments $650

Receivables

General ledger

Cash receipt

650

500

Basic rent revenue

Advance paymentsAP requests

Subledger

Customer500

500

J 150J 150 150 K

150 K

500500

150 J 150 JBal

ance

she

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Only special G/L transactions that are indicated "payable" are offset for incoming payments. (In this example, the special G/L transaction "J"). The offsetting entries (special G/L transaction K) remain open (as received advance payments) and are only cleared in the settlement (service charge settlement, sales-based rent settlement) with the settlement results. Thus the K items are not for settlement.

The special G/L indicators in the subsidiary ledger update the special G/L account to which the indicator and the original reconciliation account have been assigned.

Note the following: Special G/L transaction J must be executed as a payable transaction, whereas K must not be executed.

Special G/L transactions have to be classified as A (down payment).

(C) SAP AG AC290 6-21

© SAP AG 1999

General ledger

527

SCS revenue

Subledger

Customer

527

J 150J 150J 150

150 K150 K150 K

AP requests

Receivables from SCS $527 AP Operating costs 3 x $150 Paid AP $450

Receivables

Advance payments

150 K150 K150 K

Cash receipt

150 150 150

150 J150 J150 J

527

150 J150 J150 J

J 150J 150J 150

Bal

ance

she

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coun

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Clearing Advance Payments (1)

Tenant has paid all the the advance payments (before transfer posting)

The graphic shows the account balance after the debit position and the incoming payments of the advance payments. The tenant has paid the advance payments in full. The tenant share of the service charges is $527.

(C) SAP AG AC290 6-22

© SAP AG 1999

General ledger

527

SCS revenue

Subledger

Customer

527

J 150J 150J 150

150 K150 K150 K

450

AP requests

Receivables

Advance payments

150 K150 K150 K

Cash receipt

150 150 150

150 J150 J150 J

527

150 J150 J150 J

J 150J 150J 150

Balance

450

Receivables from sttl 527Credits from transferposting - 450-Balance for tenant: 77

450 KBalance= 0

450 K

Balance= 0

Bal

ance

she

etac

coun

tP/

Lac

coun

ts


Tenant has paid all the the advance payments (before transfer posting)

Receivables from SCS $527 AP Operating costs 3 x $150 Paid AP $450

The graphic shows the account after the transfer posting. The tenant has paid the advance payments in full and no open items are remaining in the advance payments.

The balance resulting from the service charge settlement is the amount that the tenant still has to pay or the amount that the landlord has to pay to the tenant. In this example: Service charge share: $527, credit from transfer posting $450, balance for tenant $77

(C) SAP AG AC290 6-23

© SAP AG 1999

General ledger

527

SCS revenue

Subledger

Customer

527

J 150J 150J 150

150 K150 K150 K

Receivables

Advance payments

150 K150 K150 K

Cash receipt

150 150

150 J150 J

527

150 J150 J J 150

J 150J 150

Balance

300

AP requestsB

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acc

ount

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Tenant has NOT paid all advance payments (before transfer posting)

Receivables from SCS $527 AP Operating costs 3 x $150 Paid AP 300

The graphic shows the account balance after the debit position and the incoming payments of the advance payments. The tenant has NOT paid the advance payment in full. The tenant share of the service charges is $527.

(C) SAP AG AC290 6-24

© SAP AG 1999

General ledger

527

SCS revenue

Subledger

Customer

527

J 150J 150J 150

150 K150 K150 K


Receivables

Advance payments

150 K150 K150 K

Cash receipt

150 150

150 J150 J

527

150 J150 J J 150

J 150J 150

300

Balance

300

450 K

450 K150 J

Planned AP

150 J

Receivables from sttl 527Credits from transferposting - 300 -No open items (AP)Balance for tenant: 227

AP requestsB

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heet

acc

ount

Clearing Advance Payments - Actual Principle


Tenant has NOT paid all advance payments andsettlement is based on actual advance payments (after transfer posting)

The graphic shows the account after the transfer posting. The tenant has not paid the advance payments in full and there are no open items in the advance payments.

The transfer posting of the service charge advance payment is the amount that the tenant has actually paid in advance payments (actual principle). The indicator "Settlement due to planned advance payments" is not set.

The balance resulting from the service charge settlement is the amount that the tenant still has to pay or the amount that the landlord has to pay to the tenant. In this example: Service charge share: $527, credit from transfer posting 300, balance for tenant 227

(C) SAP AG AC290 6-25

© SAP AG 1999

General ledger

527

SCS revenue

Subledger

Customer

527

J 150J 150J 150

150 K150 K150 K

Receivables

Advance payments

150 K150 K150 K

Cash receipt

150 150

150 J150 J

527

150 J150 J J 150

J 150J 150

450

Balance

450

450 K

450 K

Planned AP Receivables from sttl 527Credits from transferposting - 450 -Open items (AP) 150 Balance for tenant: 227

Balance= 0

AP requestsB

alan

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heet

ac

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Tenant has NOT paid all advance payments andsettlement is based on planned advance payments (after transfer posting)

Clearing Advance Payments - Planned Principle


The graphic shows the account after the transfer posting. The tenant has not paid the advance payments in full and there are no open items in the advance payments.

The transfer posting of the service charge advance payment is made according to the planned principle. The indicator "Settlement due to planned advance payments" is set. We recommend this method if advance payments that are in arrears are not to be cleared by the settlement (for example, for external heating expense settlement if incoming payments are still expected after the M/L tapes have been created). We also recommend this method for the operating costs and sales settlement if legal proceedings have already been initiated for advance payments that are in arrears and for this reason the payments are not to be cleared in the settlement.

The balance resulting from the service charge settlement is the amount that the tenant still has to pay or the amount that the landlord has to pay to the tenant. In this example: Service charge share: $527, credit from the transfer posting $450, open items in the advance payment $150, balance for tenant $227

(C) SAP AG AC290 6-26

© SAP AG 1999

CC

Y.dep. Sttl.year TM TD AD Sttl.per

12 31 1

6 30 -1 1

6 30 112 31 2

1999 12 31 1

Y.dep.Sttl. yearTMTDAD Sttl.per

01/01 - 12/31 Annually

07/01 - 06/30 Annually

01/01 - 06/30 and Half-yearly07/01 - 12/31

Start of SU Year-dep.- 12/31/99

Year-dependentSettlement yearTo monthTo dayAnnual displacement Settlement period

Settlement Variant

A year-dependent settlement variant has to be selected for the year of the first usage. Example: First usage of real estate: 05/01/99

=> Settlement variant "12/31" Year 1999 You choose 05/01/99 as the "Valid from" date of the settlement unit.

For a settlement variant that is not year-dependent and has a "Valid-from" date of 01/01, the first four

months are interpreted as vacant and the costs apportioned to the owner.

(C) SAP AG AC290 6-27

© SAP AG 1999

CCSettlement variantsService charge keysApportionment units

Areas from which apportionment factors are derived Meters: characteristicsRegional location key for heating value days

Account determinationAssignment of service charge key/condition typesCondition categories (advance payments, flat rates)Flow types/flow categoriesRules for the adjustment

Minimum amountsRounding rules

Country-specificsAustria: tenant service charge settlement

Customizing Service Charge Settlement

According to the Austria-specific tenant service charge settlement, the tenant who is renting the object at the time that the tenant service charge settlement is due is obliged to pay. Any advance payments paid by the previous tenant are credited to the current tenant with the corresponding tax code.

(C) SAP AG AC290 6-28

© SAP AG 1999

Source cost element

Credit account for cost elementClearing account RAClearing account RA without passed-on costsClearing account RU

Credit account n.d. input taxClearing acct n.d. input tax

Flow type

Account determinationfor flow type

Flow type

Reference flow typereceivables from settlement

Account determination forreference flow type

(customer to revenue account)

Finalsettlement

Revenue account n.d. input taxfor revenue account

Credit Debit tenant Transfer posting SU RU/RA RA Receivables AP received

Customizing

Flow category3UAN

Condition typeavance payment

Service chargekey

Account Determination for Service Charge Settlement

(C) SAP AG AC290 6-29

© SAP AG 1999

Allocate service charge keys to condition type

Condition type Service charge group Service charge key

AP Operating costs 1 Operating costsFlat rates OC 1 Operating costsAP Heating exp. 2 Heating expensesAP OC and HE 3 General service charges

AP Street cleaning + garbage 700 Garbage800 Street cleaning

Attributes of service charges key

Service charge key Operating costs100 Property tax yes700 Elevator yes1200 Chimney sweeping no

corresponds toservice charge groups

1 or 31 or 32 or 3

Service Charge Groups

The allocation of the conditions for advance payments and flat rates to service charge groups or service charge keys is the basis for generating the service participation of a rental agreement.

Example: The condition type "Advance payment operating costs" has been defined in the rental agreement. In the settlement for a service charge key or a group of service charge keys, costs have been determined for this rental agreement. All service keys to which the operating costs are assigned are settled against the advance payment for operating costs.

All service charges that are to be included in the heating expenses are settled with the condition type in the rental agreement that belongs to service charge group 2.

If there is only a condition type belonging to service charge group 3 in the rental agreement, the settlement as well as the operating costs and the heating expenses are offset against this condition type.

With this method, the service charges are grouped and offset against one condition type. If you only want to specify certain service charges against particular condition types, you do not assign a condition type to a service charge group. Instead, you assign one or more service charge keys to the condition type.

(C) SAP AG AC290 6-30

© SAP AG 1999

Settlementunit

Settlementunit

Settlementunit

Settlementunit

Heating systemHeating system

77777777

Heating systemHeating system

11111111

Settlement CompanySettlement Company

Fuele.g. Oil

Gas. . .Coal. . .

Businessentity

Businessentity

Businessentity

External Heating Expenses Settlement

You can make the heating expenses settlement internally or externally. If you handle it internally, the same program procedure applies as for operating costs settlement.

External heating expenses settlement means: a service company is responsible for carrying out the settlement. The service company receives information on the costs posted and the occupancy data of the objects.

To make the external heating expenses settlement, you enter master data for heating systems in the system.

The heating system combines a group of settlement units that are jointly handled during a settlement run. It also has a settlement unit where the settlement result is recorded; this is the "credit-side settlement unit".

The data that is stored in connection with a heating system can be used for automatic data medium exchange with settlement companies.

(C) SAP AG AC290 6-31

© SAP AG 1999

M/LM/L--tapetapeTenant/owner dataTenant/owner data

Settlement periodSettlement periodConditionsConditionsAdvance paymentAdvance paymentand flat rate totalsand flat rate totals

External settlement company

AA--tapetapeComparison ofComparison ofevaluation groupsevaluation groups(consumer numbers)(consumer numbers)

DD--tapetapeSettlementSettlementresultsresults

Adjustment ofAdjustment ofadvance paymentsadvance paymentsand flat ratesand flat rates

External Heating Expenses Settlement DME

The exchange of information with a settlement company takes place via data medium exchange. A-tape The system performs a comparison of evaluation groups using the A-tape produced by the settlement company. The consumer numbers of your company (for example rental agreement number, tenant number) are assigned to equivalent evaluation groups of the settlement company. You pass on your consumer numbers to the settlement company beforehand in the form of standardized forms.

M/L-tape At the end of each settlement period, you prepare the tenant/property tape and pass it on to the settlement company. The tape contains all the relevant data that the settlement company needs for the heating expenses settlement. The data is taken from the master data of the rental agreement, rental unit and heating system. The data structure is based on the business entities that are assigned to the heating system. The costs per heating system are passed on separately.

D-tape The settlement company provides you with the settlement results on the D-tape. You then import this data into the system. You receive a complete settlement per heating system as well as individual settlements which can be passed on to the tenants.

Report on heating costs A report is available showing the heating costs for each heating system that can be configured by the user and passed on to the settlement company as a printed list or an electronic file.

(C) SAP AG AC290 6-32

© SAP AG 1999

Heating system

Credit-side SU

AE1 CostsAE2 CostsAE3 Costs

External settlement company

Heating expensesHeating expensessettlementsettlement

DD--tapetape

Post Post settlement:settlement:

•Credit-side SU•Debit RU/RA•Debit tenant

•Transfer posting AP

CalculateCalculateand activateand activateadjustment ofadjustment ofadvance paymentadvance payment

Carrying out the Settlement

Each heating system has a credit-side settlement unit.

(C) SAP AG AC290 6-33

© SAP AG 1999

Service Charge Settlement Reports

Apportionment units

Rental units/agreements

Rental agreements by tenant

Rental units by tenantService charge/heating expenses settlement

Overview of external heating expenses

Itemization for settlement units

Settlement result (apportionment result by SU or by RA)

Distribution of settlement result

Credit/receivable RA

Balance list rental agreements

Allocation per tenant

Posting log for settlementNon-cumulative values

By settlement unit

By service charge key

By cost elementCumulative values

Actual line items

Commitment line items

Call up the following reports to see what data is stored:

Master Data/Contracts - Overviews - Apportionment Units - Rental Units/Agreements Controlling/Settlements - Service/Heating Cost Settlement - Settlement Unit Postings - By Settlement Units

Controlling/Settlements - Service/Heating Cost Settlement- Settlement Result (Apportionment Result) Controlling/Settlements - Service/Heating Cost Settlement - Distribution of Settlement Result (Reference Factors)

Controlling/Settlements - Service/Heating Cost Settlement - RA Credit/Receivables

(C) SAP AG AC290 6-34

© SAP AG 1999


Explain the service charge settlement process with the following steps:

Creating the infrastructure

Posting vendor invoices

Implementing the service charge settlement itself

Adjusting advance payments

List the factors influencing the settlement unit and rental agreement

Describe the relevant postings

Service Charge Settlement: Unit Summary

(C) SAP AG AC290 6-35

Service Charge Settlement Exercises

Unit: Service Charge Settlement Topic: Service Charge Infrastructure, Service Charge Settlement


• Create the infrastructure necessary for the service charge settlement

Simulate and execute the service charge settlement

Due to the use of your property, service charges are incurred (water consumption, heating expenses, gardening costs, garbage collection and so on). Your tenants make advance payments or flat-rate payments, which form part of the service charge settlement. You apportion the costs between the tenants according to various apportionment factors (area or number of persons).

Note that service charge settlements can only be made for periods of time that started and finished prior to the date on which you want to post the service charge settlement.

6-1 Change your business entity by entering a predefined value that is a settlement variant to be used in your settlement units.

6-2 Create a participation ID (valid from 1 January of the previous year) that contains two of the rental units and another participation ID that contains all three rental units.

6-3 Create a settlement unit (valid from 1 January of the previous year) for property tax and assign this settlement unit to the first participation ID. The costs should be apportioned according to living and usable area (settlement period 1/1 to 12/31).

6-4 Create a settlement unit for street cleaning and garbage collection and assign this settlement unit to the second participation ID. The costs should be apportioned according to the number of people (same settlement period as above).

6-5 Generate the cost collectors for the settlement units for the period 1/1 to 12/31.

6-6 Post the invoices for the previous year to the G/L account 470400 and make an auxiliary account assignment to the settlement units. Use vendor accounts 3450 (tax office) and 3457 (garbage).

(C) SAP AG AC290 6-36

6-7 Change the rental agreements for your rental units by postgenerating the settlement participation and, if required, maintain the apportionment units (persons).

6-8 Make a debit position for December of the previous year and post the incoming payments to the three rental agreements.

6-9 Enter the data for the simulation and save the values as a variant. Simulate the service charge settlement for the previous year and check the logs.

6-10 Carry out a full settlement with the "Adjust advance payments?" indicator flagged.

6-11 Process the session with the transfer postings.

6-12 Display the results in the tenant account sheet or on the customer account.

6-13 Display the "Settlement result" report.

6-14 (*) Activate the advance payment adjustments.

6-15 (*) Print the correspondence and display the spool request.

(C) SAP AG AC290 6-37

Service Charge Settlement Solutions

Unit: Service Charge Settlement Topic: Service Charge Infrastructure, Service Charge Settlement

You can use the rental units you created in Exercise 3 for this exercise. Make sure that your rental units have been released for account assignment (status REL). Otherwise proceed as in the solutions for the "Rental Accounting" Unit, Exercise 4 "Vacancy Debit Position".

6-1 Accounting → Real estate management → Master data → Objects → Business entity → Change Reference factors tab


Predefined operating costs Yearly (1/1 to 12/31)

6-2 Accounting → Real estate management → Master data → SCS infrastructure → Participation ID → Maintain Or: Accounting → Real estate management → Service charge settlement → SCS infrastructure → Participation ID → Maintain

6-3 Accounting → Real estate management → Service charge settlement → SCS infrastructure → Settlement unit → Create Use the first participation ID (apportionment unit living and usable area)

6-4 Same as 6-3 Use the second participation ID (apportionment unit persons).

(C) SAP AG AC290 6-38

6-5 Individual processing: Accounting → Real estate management → Service charge settlement → SCS infrastructure → Settlement unit → Change Press Cost collector. Select the cost collector for the required settlement period and choose Generate. Generate the cost collectors for both settlement periods. Collective processing: Accounting → Real estate management → Service charge settlement → SCS infrastructure → Generate cost collector Select your business entity and enter the start and end dates for the settlement period. Select the cost collector and choose Generate.

6-6 Accounting → Financial accounting → Accounts payable → Document entry→ Invoice

Enter the vendor (3450 or 3457), invoice date and amount. Select the screen variant or account assignment template AC290. Enter an amount for the debit posting.

Fill the following fields:

• Business entity

• Settlement unit

• Service charge key

• Reference date

Simulate the document (Document → Simulate). Press "Post".

6-7 Single processing Accounting → Real estate management → Rental → Rental agreement → Change → Rental agreement master data Choose Settlement participation. Choose Bulk regenerate. Collective processing Accounting → Real estate management → Service charge settlement → SCS infrastructure → Postgenerate settlement participation

Regenerating (postgenerating) is necessary for the training course as the rental agreements are created before the service charge settlement infrastructure. Usually, regeneration is not necessary as the infrastructure does not usually change and the settlement participation is automatically generated when a rental agreement is created.

(C) SAP AG AC290 6-39

6-8 Debit position for December of the previous year Accounting → Real estate management → Rental accounting → Postings → RA debit position → Execute

Incoming payment

Accounting → Real estate management → Rental accounting → Incoming payments/account maintenance → Individual document manual incoming payment

Bank account 100 000

6-9 Accounting → Real estate management → Service charge settlement → Service charge settlement → Operating costs → Simulate


Business entity 1##

Start of settlement period Same as generated cost collectors

End of settlement period Same as generated cost collectors

Doc.type G/L account doc. SA

Doc.type customer doc. DR

Calculate credit/receivables X

Adjust advance payments? X

Press Save as variant. Enter the variant name and description. Save your entries. You can call this variant by entering Get variant.

Make sure that the "Start of settlement period" and "End of settlement period" fields have exactly the correct number of days (according to the cost collectors).

6-10 Accounting → Real estate management → Service charge settlement → Service charge settlement → Operating costs → Execute

6-11 System → Services → Batch input → Sessions Select the session and choose Process session. Choose Background and press Process. Press Enter to update the status of the session until the status is "Processed".

(C) SAP AG AC290 6-40

6-12 Note: Processing the batch input beforehand can be a lengthy process and you should take this into account for the transfer posting of the advance payments. Accounting → Real estate management → Rental → Rental agreement → Display Enter the rental agreement number and confirm.

Environment → Tenant account sheet or Display customer account

6-13 Accounting → Real Estate Management → Info System → Controlling/Settlements → Service/Heating Cost Settlement → Settlement result

6-14 (*) Accounting → Real estate management → Service charge settlement → Service charge settlement → Operating costs → Adjust advance payment/flat rate → Activate advance payment adjustment

6-15 (*) Accounting → Real estate management → Service charge settlement → Service charge settlement → Correspondence → Settlement Select the rental agreement and press Settlement (indiv.)

Display the spool request (System → Own spool requests).


© SAP AG 1999

Sales-based rental agreement

Sales-based reports

Sales-based rent settlement

Sales-Based Rent and Sales-Based Rent Settlement


© SAP AG 1999


Explain the options available for a sales-based rental agreement

List the steps required to carry out a sales-based rent settlement

Explain the similarity between sales-based rents and the posting logic applied for advance payments of service charges

Sales-Based Rent: Unit Objectives


© SAP AG 1999

Course Overview

Rent Adjustment

Third-Party Management

InformationSystem

Taxes§§


Integration

Correspondence

Controlling

Rental

Rental AccountingSales-Based Rent/Sales-Based Rent Settlement

Master Data


© SAP AG 1999

You have made sales-based rental agreements accompanied by the appropriate conditions with your tenants. The tenants report back their sales in periodic intervals.

When a sales-based rent settlement is being used, payments are settled with the settlement result. In this case, there might be an advance payment adjustment.

Sales-Based Rent: Business Scenario


© SAP AG 1999

Rental agreementAdjustment type:Sales-based rent

Adjustment data:

Variant 1 Variant 2

0 20,000 2.00% 0 20,000 2.00%0 30,000 2.10% 20,000 30,000 2.10%0 40,000 2.20% 30,000 40,000 2.20%0 0 2.40% 40,000 0 2.40%

Example: Sales $35,000

$35.000 * 2.20% = $770 $20,000 * 2.00% = $400+ $10,000 * 2.10% = $210+ $5,000 * 2.20% = $110

$35,000 $720

Sales-Based Rental Agreement

You can define multiple sales types for each rental agreement. The sales terms and conditions can be maintained in a time-dependent manner. The reporting intervals and settlement variants can be freely defined. You can also make so-called "zero-conditions". That means you can define an advance payment of $0. The settlement is made according to the actual sales at the end of the settlement period.

Sales conditions can be fixed for minimum sales for each reporting interval and minimum rents for each settlement period.

You can also specify a minimum rent for each graduation. The sales gradings can be interpreted as amounts (money) or abstract figures (units of measure).


© SAP AG 1999

Sales-Based Rental Agreement with Several Sales Types and Sales According to Quantity

AP sales-based rent beer

AP sales-based rent food

AP sales-based rent alcohol

AP sales-based rent tobacco

Adjustment data for the adjustment type sales-based adjustment

Up to 180 HL 6 % $4100 Over 180 HL 8 % and so on...

Up to $42000 9 % $3590 Over $42000 10 %and so on...

Up to $6000 18 % $1030Over $6000 20 %and so on...

Sales reports for each condition type

Up to $7500 1.5 % $105Over $7500 2.0 %and so on...

Minimum

If you would like to define the rent for rental agreements based on different levels of sales, you need to create different conditions for sales-based rent advance payments. You can agree on individual amounts or units (such as hectolitres, dollar amount, units) for each sales-based rent advance payment.


© SAP AG 1999

1. Entersalesreport

2. Implementsalessettlement

3. Adjust advancepayments

ConditionchangeAP sales

Sales-basedrental agreement4711

Signature

Rental agreement

Advance payments forRA 4711

Settlementresultsposting

Sales reports 4711

01/98 1,000,00002/98 1,200,50003/98 985,000. . . . . .

Overview of Sales-Based Rent Settlement

You have to enter the tenant's sales reports for sales settlement. You can enter values for several reporting intervals at the same time.

You can also make settlements for several settlement periods at the same time. If you have not entered the sales data for a sales interval, a memo acts as a reminder. After a settlement has been made, you cannot enter any more sales reports. You can adjust the advance payments during sales-based rent in the same way as you do for advance payments for service charges.


© SAP AG 1999

Example Sales-Based Rental Agreement

Agreements:Rent: $1000 month sales-based rentReporting interval: Every quarterSettlement variant: Yearly (1/1 - 31.12.)Agreed sales gradings:(Yearly, based on Up to 12,000 10 %settlement variant ) From 120,000 12 %

Reports:1st Quarter 30,0002nd Quarter 40,000...

Total 130,000

Settlement:Payable 130,000 * 12 % = 15,600Paid 2,000 (12 + 1000 AP sales-based rent)

Remainder to pay 3,600

The above example shows the relationship between conditions, sales interval, sales gradings agreed upon and settlement period, defined by means of the settlement variant.

Note that the sales gradings agreed upon are dependent on the settlement period and not on the frequency that has been agreed upon for the payment of conditions or for the sales reports.


© SAP AG 1999

General ledger

3527

Revenues

Subledger

Customer

3527

J 1000J 1000J 1000

1000 U1000 U1000 U

Receivables from sales reports $3527 AP sales-based rent 3 x $1000Paid AP 3000

Receivables

AP Sales-based rent

1000 U1000 U1000 U

Cash receipt

1000 1000 1000

1000 J1000 J1000 J

3527

1000 J1000 J1000 J

J 1000J 1000J 1000

3000

Balance

3000

3000 U

3000 U

Receivables from sttl $3527Credits from transferposting - 3000No open items (AP)Balance for tenant: 527

AP requestsB

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Clearing Advance Payments

The transfer posting for sales-based rent settlement is made in the same way as for the service charge settlement.

The graphic shows the account after the transfer posting. The tenant has paid the advance payments in full and there are no open items in the advance payments. As is the case with the service charge settlement, the transfer posting for the advance payments can be made according to the actual or planned principle. You have to set the "Transfer posting of AP receivable?" indicator as needed.

The balance of sales-based settlement and the advance payments made is the amount that the tenant has to pay or the amount that the landlord has to pay the tenant. (In this example: Receivables from settlement $3527, credit from transfer posting 3000, balance for tenant $527)

(C) SAP AG AC290 7-10

© SAP AG 1999

Sales-Based Rent Settlement Reports

Rental agreements

SalesSales per year

Sales history

Call up the following reports to see what data is stored: Master Data/Agreements - Contracts - Sales - Sales per Year Master Data/Agreements - Contracts - Sales - Sales History

(C) SAP AG AC290 7-11

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Sales-Based Rent Settlement: Unit Summary


Describe the possibilities of defining salesgradings in a sales-based rental agreement

List the steps required to carry out a sales-based rent settlement

Explain the similarity between sales-based rents and the posting logic applied for advance payments of service charges

(C) SAP AG AC290 7-12

Sales-Based Rent Exercises

Unit: Sales-Based Rent and Sales-Based Rent Settlement Topic: Sales Based Rental Agreement, Sales Settlement


• Create a sales-based rental agreement

• Maintain sales reports

• Carry out a sales-based rent settlement

• You have made sales-based rental agreements with your tenants. The tenants report back their sales in periodic intervals. You carry out a sales-based rent settlement at the end of the settlement period. In the sales-based rent settlement, incoming payments are cleared against the settlement result (derived from the fixed sales gradings and the sales reports).

7-1 Create a new rental unit and rental agreement with adjustment type graduated rent. Specify a condition type for "advanced payment sales-based rent" of $ 1000 per month, a yearly settlement variant, a six-monthly reporting interval and graduated sales as follows: up to 120,000 - 10%, over 120,000 - 12%. Activate the rental agreement.

7-2 Carry out the debit position for the previous calendar year and post the incoming payment. Take account of taxes in the incoming payment.

7-3 Generate sales reports for the settlement period for a total amount of $ 130,000.

7-4 Simulate the sales settlement and check the result.

(C) SAP AG AC290 7-13

Sales-Based Rent Solutions

Unit: Sales-Based Rent and Sales-Based Rent Settlement Topic: Sales-Based Rental Agreements, Sales Reports, Sales Settlements

7-1 Create rental unit: Choose a commercial usage type. Menu path: See the solutions to the "Master Data" unit.

Create rental agreement: Menu path: See the solutions to the "Rental" unit. Insert condition type "advance payment sales-based rent " ($ 1000). Branch to the sales settlements. Enter the following values in the "Sales from/upto" fields: first sales grading: 0 and 120 respectively, second sales grading: 0 and 0 respectively.

7-2 See "Rental Accounting" unit.

7-3 Accounting → Real estate management → Rental accounting → Sales-based rents → Rent reports → Maintain

7-4 Accounting → Real estate management → Rental accounting → Sales-based rents → Sales settlement → Simulate

Enter data in the business entity, rental unit, sales types and start/end of settlement period fields.

Check the result calculated by the system.


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General contract maintenance (tenant rental)

Resubmission

Costs distribution

Relationship between object availability and tenant rental

Periodic postings

Contents:

General Contract


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Create a tenant rental agreement with the respective partners, conditions and deadlines

Define resubmission

Specify the distribution of costs incurred on the contract

Carry out the periodic posting for your contract

Execute the contract renewal


General Contract: Unit Objectives


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InformationSystem

Taxes§§


Integration

Correspondence

Controlling

Rent Adjustment

Master Data

Rental

Course Overview/General Contract (Tenant Rental)


© SAP AG 1999

You tenant-rent real estate objects from a third party. The system helps you to manage and monitor all the related tenant rental agreements. You first create a tenant rental agreement and define the resubmission rules so that the system reminds you on certain dates to check the contract and renew it if necessary. You also specify how to distribute the costs incurred on the contract to subobjects.

Carry out a periodic posting.

Renew the contract.

General Contract: Business Scenario


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Overview of Contract Data

PartnerLandlord with vendor account(main contractual partner)

Partner with a vendor accountAdministrators and so on

General dataContract type (vendor)Date of contract conclusionMain contractAdjustment type

TermContract start and end dateRenewal optionNotice type and notice rule

Payment dataDate of first postingBusiness areaProfit centerCurrency (local, contract, display currency)

ObjectsAssignment of explicitly tenant-rented objectsHierarchical subobjects are also implicitly tenant rented)

ConditionsPreassignmentsPeriodic conditionsOne-time conditionsDue datePartner or cost center per condition type

ResubmissionResubmission rulesResubmission reasonsStart date

Costs distributionDistributed to objectsAccording to equivalence number

NotesSend object with note


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Conditions and Periodic Postings

Defining contract conditionsDefault conditionsPeriodic conditionsOne-time conditionsDue datePartner or cost center per condition type

Cash flow

Periodic postings

You may use the default values when you create new condition items. You can specify one-time conditions as well as periodic conditions. You can specify an exact due date for each condition item. Note that the due date you choose has to lie within the validity period.

Example Frequency 1, month of January => Possible due date from 01/01 to 01/31 ! The system automatically calculates the next due dates.

For each condition type, you can assign a partner or, in the case of in-house rental, a cost center. The cash flow is generated from the condition items. The planned records that are due become open items in the periodic posting run.


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Resubmission

Resubmission rulesResubmission rules

Start dateStart date

Resubmission dateResubmission date

Resubmission reasonsResubmission reasons

Examples&1 months/&2 days before contract endAs of date &2 every &1 months&1 months/&2 days before renewalResubmission on contract start date

Examples&1 months/&2 days before contract endAs of date &2 every &1 months&1 months/&2 days before renewalResubmission on contract start date

ExamplesGeneral resubmissionCheck renewalCheck regional locationCheck conditions

ExamplesGeneral resubmissionCheck renewalCheck regional locationCheck conditions

Report

ParametersParameters

Date, year, monthFiguresBoolean values

Date, year, monthFiguresBoolean values

You can define your own rules for resubmitting contracts. For instance, you can check all the contracts in the system in which the contract terms are due to expire. A report selects these contracts on a specific date and displays them to the user. To do so, the system uses the settings defined in the contract master data, such as the contract term and notice dates (period or deadline regulation) and checks the resubmission dates. You can assign several rules to each contract, such as a renewal rule or a check of conditions.

This function supports the following business processes: Contract renewals Contract processing (for instance checking conditions, rent adjustment) Giving notice on contracts

After processing the particular business process, you can mark the resubmission as being completed.


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Contract Renewal

Renewal optionsRenewal options

SettingsChangeableOwn approval requiredPartner's approval required

SettingsChangeableOwn approval requiredPartner's approval required

DateNew contract end date

DateNew contract end date Report

Renewal dataRenewal data

Individualprocessing

Example: "Any number of times by one year"


© SAP AG 1999

Distribution

10

9090TotalTotal 1010

Contract

Objects


BuildingBuilding


If 0, then all costs distributedto contract

If not equal to 0, then costs distributed to objects

Conditions

40

40

Freely definable base equivalence numbers (e.g. 100)

Equivalence no. of distribution

For each condition type, you can decide if costs are to be distributed to the objects, and the respective cost share per object. This lets you distribute costs correctly to the objects according to where they are incurred. This also lets you post costs to a settlement unit and to pass these on to the various rental units and contracts in the service charge settlement.

The following functions are available: Generate distribution: the costs are distributed evenly to the assigned objects (each cost has the same equivalence number)

Simulate distribution: overview of posting results Distribution overview: overview of the object and contract share

You can specify a time limit for the distribution date. If you change the distribution, no subsequent postings are made. If the costs distribution was incorrect, you have to cancel the periodic postings or the single documents. (If conditions are changed retroactively, follow-up postings are made in the same way as the debit position.)

(C) SAP AG AC290 8-10

© SAP AG 1999

Contract Hierarchy - Schematic Display

Tenant rental agreement (vendor)

Subcontract - cleaning (vendor)

Building 1

Subcontract - elevator maintenance (vendor)

Building 1

Business entity 0815

Building 1

Rental unit 1

Rental unit 2ContractsObjects

Rental agreement 1

Rental agreement 2

You can use the contract hierarchy to assign different contracts to a main contract. The hierarchy displays the contracts that exist for each Real Estate object. If a building should come up for sale, it is easy to check if a contractual obligation exists on the planned selling date.

You can also see at a glance if any dependencies exist between contracts; for instance, you can immediately recognize if contracts have to be terminated on a certain date.

(C) SAP AG AC290 8-11

© SAP AG 1999

Tenant Rental and Availability

Time-dependent attributes that describe the availabilityIf an object is tenant-rented, the "tenant-rented" attribute is automatically set for this object and all its subobjects in the object hierarchy

Attributes:

In own portfolio

Tenant-rented

Not available

Partly unavailable

Available

13 2

Objects:Business entityBuildingPropertyRental unit

You can display and change the availability of Real Estate objects (business entity, building, property, rental unit).

If the object, or a superior object in the hierarchy, is tenant-rented, the system automatically sets the availability status to "tenant-rented". You can only change the status indirectly when you create or change the tenant rental agreements.

If a newly created object (that first receives the attribute "In own portfolio for whole period") is included in a tenant rental agreement, the object is automatically identified as being "Tenant-rented" for the tenant rental period as well as being "Not available" for the rest of the period.

Note how availability affects the rental process: you can only rent objects with status "In own portfolio", "Tenant-rented" or "Available". You cannot rent objects that are "Not available" or "Partly not available".

(C) SAP AG AC290 8-12

© SAP AG 1999

07/01/1999 10/31/2008 12/31/201301/01/1999

Assign tenant rental agreement Buy objectCreate object

Set manuallyto

Automaticallysetto

StatusTenant-rented In own portfolioUnavailable

Set manuallyto

Sell object

Set manuallyto

Unavailable

PermittedprocessesTenant rental

internal/externalRental

external/internalRental /

tenant rentalTenant rental

internal/external

OwnershiprelationshipThird-party

ownershipThird-partyownership Ownership Third-party

ownership

Example

Relationship Between Availability and Tenant Rental

The following factors affect the availability of a Real Estate object with regard to tenant rental and rental: Change of ownership Construction work Change of contract term

There is also a "mixed" availability status. This can be used for objects that have at least two different statuses (for instance, a business entity has "mixed" status since lower level buildings are 1/3 owned and 2/3 tenant-rented.

The status of the object directly affects the permitted rental process. The function guarantees that an object can only be rented as long as it belongs to the landlord or is tenant-rented (in other words, available). The object availability function helps the user to manage the Real Estate objects. The object availability function helps the user to process and manage the Real Estate objects.

(C) SAP AG AC290 8-13

© SAP AG 1999

DistributionDistribution

Tenant rental agreementTenant rental agreement

Business entitiesBuildingsProperties

Rental units


Rental units

ContractContractGeneral contractGeneral contract


PartnerPartner

VendorVendor

Conditions• one-time• periodic (recurring)


Tenant Rental Overview

You use the "general contract" with a vendor view to map the tenant rental process. The tenant rental agreement may be the main contract for other general vendor contracts. You create a business partner for the contract and assign a vendor to the partner. In the case of internal tenant rentals, a cost center is used instead of a business partner.

You assign Real Estate objects to the tenant rental agreement. The conditions can either be agreed on periodically (recurring) or on a one-time basis. You can define how costs are distributed to lower level objects in the object hierarchy.

(C) SAP AG AC290 8-14

© SAP AG 1999

ContractContractGeneral contractGeneral contract


General contractGeneral contract

PartnerPartner



NOTE!!You cannot map the complete rental process of Real Estate objects with the customer view of the general contract as some key functions, such as the service charge settlement and application and offer management, are not supported. You still have to use the rental agreement object for these functions.

VendorVendor

CustomerCustomer

DistributionDistribution


Rental units


Rental units

General Contract Overview

The general contract is a flexible contract that supports different rental views: Vendor (tenant rental) Customer (for instance the hiring of rights, such as rights of way) Vendor/creditor (for instance tenant rental with subsequent hiring of rights)

The different views are defined by the contract type. The rental agreement only maps customer rental processes. The general contract can map customer AND vendor rental processes.

(C) SAP AG AC290 8-15

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General Contract & Rental Agreement - Differences

Rental agreementContractual relationship with RU only

References exactly one rental unit at any one time

Tenant is customer

Debit positions

Receivables - incoming payments

Rent reduction by contract partner

Resubmission

Renewal

Notice

Rent adjustment


Tenant rental agreementContractual relationship between BE, BU, PR, RU

Several objects can be assigned in same period

Landlord is creditor

Periodic postings

Payables - outgoing payments

Rent reduction by R/3 user

Enhanced resubmission

Enhanced renewal

How does a general contract differ from a rental agreement? The contractual relationship is not limited to the rental unit. Relationships can exist with other objects, such as the business entity.

A rental agreement references one rental unit only. A general contract may reference several objects. A rental agreement "occupies" a rental unit in the sense that at any one time only one rental agreement can exist for a rental unit. This does not apply to the general contract: at any one time several contracts can exist for one and the same object. General contracts can map different legal relationships of the object (such as tenant rental, a contract with a property security company or certain rights that have been assigned with regard to the object).

As with the debit position for the rental agreement, periodic postings can be carried out on the general contract. Vendor or customer postings can be made. It is also possible to make a G/L account posting and distribute the costs to the objects involved. The rules for distributing the costs are defined in the contract.

The general contract has enhanced functions to monitor deadlines and to define renewal options. Resubmission dates can be defined for the general contract. This ensures that certain activities defined in the contract (such as notice) are processed in good time.

(C) SAP AG AC290 8-16

© SAP AG 1999

Create a tenant rental agreement and make the necessary settings for subsequent processes (contract renewal, resubmission, notice, periodic postings)

Carry out the above processes


General Contract: Unit Summary

(C) SAP AG AC290 8-17

General Contract Exercises

Unit: General Contract Topic: Tenant Rental


• Create a tenant rental agreement with conditions and deadlines

• Define resubmission rules

• Specify the distribution of costs and revenues incurred on the contract

• Carry out a periodic posting for your contract

• Renew the contract

You tenant-rent real estate objects from a third party. The system helps you to manage and monitor all the related tenant rental agreements.

First create a tenant rental agreement and define the resubmission rules so that the system reminds you on certain dates to check the contract and renew it if necessary.

Specify how to distribute the costs incurred on the contract to subobjects.

Carry out a periodic posting.

Renew the contract.

8-1 Preparation: Create the landlord from whom you are renting the real estate object as a vendor. Copy the vendor from 100100. Create a tenant rental agreement and carry out the following steps:

8-1-1 Name the contract and enter the contract start date and adjustment type (free adjustment).

8-1-2 Set the rental start for 01/01/1999 and rental end for 12/31/2000. Choose the renewal option "three times by 1 year, any number of times by 4 months".

8-1-3 Assign the contract to a business entity.

(C) SAP AG AC290 8-18

8-1-4 Enter data for the vendor that you created and the tax indicator (V1). Agree on a credit-side basic rent.

8-1-5 Enter resubmission rule R01 ("As of date &1 every &2 months") where &1 = "Exactly a month ago" and &2 =1.

8-1-6 Distribute the costs and revenues equally among all the subobjects.

8-1-7 Save your contract. Activate the contract.

8-2 Generate the open items with the periodic posting.

8-3 Resubmit your contract. Branch to the contract display and set the status of the resubmission to complete.

8-4 Renew your contract.

(C) SAP AG AC290 8-19

General Contract Solutions

Unit: General Contract Topic: Tenant Rental Agreement

8-1 Accounting – Financial Accounting – Accounts Payable – Master Data – Create



Account group Vendor

Reference vendor 100100

Reference company code 1000

Enter the name and address of the vendor and save your entries.

Note the number of the vendor that you have created.

8-1-1 Accounting – Real estate management –Real estate general contract - Contract – Create


Contract type Tenant rental agreement (vendor)


Press Enter.

Enter a contract name.

8-1-2 Term tab

8-1-3 Objects tab

8-1-4 Conditions tab

8-1-5 Resubmission tab

8-1-6 Distribution tab. First press Expand object and then Generate distribution.

8-1-7 Press Save. Call up the contract in the change mode and press Activate contract.

(C) SAP AG AC290 8-20

8-2 Accounting – Real estate management –Real estate general contract - Contract – Postings - Periodic postings First simulate the activity and, if the result is correct, do an update run.

8-3 Accounting – Real estate management –Real estate general contract - Contract – Processes – Resubmission Press Display (contract).

Mark your selected entry as being complete.

8-4 Accounting – Real estate management –Real estate general contract - Contract – Processes – Renewal Mark the required entry, choose Execute renewal, and save your data.


© SAP AG 1999

Contents

Enterprise Controlling ⇒ Profit center

Controlling ⇒ Cost centers and Real Estate objects as cost objects

Controlling


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List the Controlling objects used in R/3 Real Estate Management

Describe the relationship between Real Estate objects and profit centers

Explain how to carry out cost and revenue planning on Real Estate objects

Describe how to settle Real Estate objects on other account assignment objects

Controlling: Unit Objectives


© SAP AG 1999

Course Overview

Rent Adjustment

InformationSystem

Taxes§§


Integration

Correspondence

Rental



Master Data

Controlling


© SAP AG 1999

In your Controlling object, you want to plan costs and revenues, compare them with the actual values and commitment values.

You make an actual posting (for example, in Plant Maintenance or Materials Management) with Real Estate account assignment and internal cost allocation.

You want to make a settlement from individual Controlling objects to others (for example, from maintenance orders to a building).

You use Profit Center Accounting for your Enterprise Controlling.

Controlling: Business Scenario


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RE objects(cost and revenue recipient) • Business entity• Building• Properties• Rental unit• Rental agreement• General contract• SU cost collector• Management contract

Standard CO objects• Cost center (cost recipient only)

• Order

FIFI

PSPS

PMPM

COCO

Order

MMMM

CO Objects in Real Estate Management

RERE

RA revenue

Cost and revenue objects belong to internal Controlling; they are referred to as CO objects or account assignment objects. These may also be Real Estate objects, in addition to the "classic" Controlling objects (cost center, order).

The link between internal accounting (Controlling) and external accounting (Financial Accounting) is established by assigning cost elements and revenue elements to accounts.

You update the costs and revenues on Real Estate objects by entering postings in Financial Accounting with auxiliary account assignment on a Real Estate object in the same way as for other postings with account assignment.


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Planning

Building

Object Controlling Scenario1. Cost and revenue planning

Plan Commit ActualPlant maint. (m) 10000

Non-apport. (m) 5000 serv.charges

Dir. int. AA (a) 3500(gardener)

Rent (m) 25000

(m) manual / (a) automatic planning

Job Job planningplanning50 h gardener

You plan costs (plant maintenance, administration, service charges, and so on), revenues (rent) and activities for each Real Estate object and cost element.

You generally enter plan values manually. However, in the case of activity allocation, these may also be automatically derived from the number of hours entered for a particular activity type.

You can use MS EXCEL to support your planning activities. To do so, you have to flag "Integrated Excel" for the planning layout in question. If you then call up the planning activity you require with the respective planning layout, MS Excel is automatically launched. Alternatively, you can do your planning offline and upload the data into the system.


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Direct Actual Posting

Building

Object Controlling Scenario

2. Direct actual posting/account assignment

EnterpriseControlling

Profit Center Accounting

Plan Commit Actual

Non-apport. 5500 6000serv.charges

Rents -24500RU A (RA a) -7000RU B (RA b) -8000RU C (RA c) -9500

MMMM

Profit center

Update

RERE

The actual values are derived from postings with account assignment on Real Estate objects. If Real Estate account assignment has been specified for an order, the system generates a commitment. Costs and revenues of the Real Estate objects are aggregated in reporting on the highest hierarchical level applicable (Rental agreement -> Rental unit -> Building/Property -> Business entity). (The graphic illustrates that rent revenue resulting from rental agreements can be displayed as cumulative values on the level of the building.)

If the Real Estate objects are assigned to profit centers, these are updated when postings are made.


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Direct Internal Activity Allocation

Building


3. Direct internal activity allocation


Profit CenterAccounting

Plan Commit Actual

Dir. int. AA (3) 4200(e.g. gardener)

COCO 60 h

Profit center

Update

The actual costs on the objects are derived from the activity consumption that is entered in CO activity allocation, for which a sender cost center and a receiver Real Estate object have to be specified.


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Settlement

Building


4. Settlement function



Plan Commit ActualPlant maint. 8000

500

RentsRU A (RA a)RU B (RA b) 500RU C (RA c)

PMPM

Profit center

Update

Costs collected for an object can be settled on other CO objects. In the CO settlement, you can periodically settle costs collected on Real Estate objects to one or more CO account assignment object.

Settlement rules must be clearly defined for each object. You can define equivalence figures, percentage rates or absolute amounts. Settlements can be made on several objects; not all costs have to be settled completely.

Apart from settling Real Estate objects to other account assignment objects (such as from a building to a cost center (RE -> CO)), you can also settle costs from other CO objects to Real Estate objects (such as from a PM order to a building or rental agreement (PM -> RE)). In the latter case, you have to define the settlement rule in the PM objects.

The graphic illustrates the settlement of costs from PM to RE. A PM order for USD 8000 (say, for painting the exterior of a building) is settled on the building, and another PM order for USD 500 is settled on the rental agreement for carrying out repairs for which the tenant is responsible.

The graphic also illustrates that the costs settled between the PM order and the rental agreement are not only displayed on the rental agreement but also on the building.

(C) SAP AG AC290 9-10

© SAP AG 1999

Building

Object Controlling Scenarios1. Cost and revenue planning2. Direct actual posting3. Direct internal activity allocation4. Settlement function



Plan Commit ActualPlant maint. (m) 10000 8000

500Non-apport. (m) 5000 5500 6000serv.charges (4)

Dir. int. AA (3) (a) 3500 4200(e.g. gardener)

Rents (m) 25000 -24500RU A (RA a) -7000RU B (RA b) -8000

(2) 500RU C (RA c) -9500

(m) manual / (a) automatic planning

COCO

MMMM

PMPM

Job Job planningplanning50 h gardener

60 h

Profit center

Update

RERE

Real Estate Controlling - Overview

(C) SAP AG AC290 9-11

© SAP AG 1999

Real Estate Profit Center (PC)

OfficesNew York

OfficesWashington

Offices

RetailNew York

RetailWashington

RetailChicago

Retail

ResidentialNew York

ResidentialChicago

Residential

Business entities

Standard profit center hierarchy

Alternative profit center hierarchy

OfficesNew York

RetailNew York

ResidentialNew York

New York

OfficesWashington

RetailWashington

Washington

RetailChicago

ResidentialChicago

Chicago

Business entities

A profit center is a subarea of a company responsible for its own results. Information about the success of this company subarea is available in Profit Center Accounting.

The assignment of profit centers to Real Estate objects ensures that the assigned profit centers are automatically updated for all postings to these Real Estate objects.

If no assignment has been made for the account assignment object, the assignment for the superior object in the hierarchy is used.

The profit center reports can be displayed in a standard hierarchy and also in alternative profit center hierarchies.

(C) SAP AG AC290 9-12

© SAP AG 1999

Controlling Reports

Real Estate Controlling objects (by objects/tenants/owners/cost elements)

Period overview actual or commitment or planned

Period comparison actual or commitment or planned

Year overview actual or commitment or planned

Year comparison actual or commitment or planned

Actual/commitment/planned/deviation

Actual/area unit

Actual/apportionment unit

Line items actual or commitmentor planned

Profit Center AccountingPlanned/actual comparisons

Period comparisons

ROI key figures

Line items - display

Statistical key figures

Master data index

Diverse list-oriented reports

Call up the following reports to see what data is stored:

Controlling/Settlements - Controlling RE Objects - Non-Cumulative Values - One Currency - By Objects - Actual: Period Comparison

Controlling/Settlements - Controlling RE Objects - Non-Cumulative Values - One Currency - By Cost Element - Actual: Period Comparison

Controlling/Settlements - Controlling RE Objects - Cumulative Values - Actual Line Items Profit Center - PC Reporting - Reports for Profit Center Groups - Actual Data - Actual Comparison Report

Profit Center - PC Reporting - Profit Center Reports - Actual in 2 Time Periods

(C) SAP AG AC290 9-13

© SAP AG 1999

Controlling: Unit Summary


List the Controlling objects used in R/3 Real Estate Management

Describe the relationship between Real Estate objects and profit centers

Explain how to carry out cost and revenue planning on Real Estate objects

Describe how to settle Real Estate objects on other account assignment objects

(C) SAP AG AC290 9-14

Controlling Exercises

Unit: Controlling Topic: Profit Center, Costs and Revenues on Real Estate Objects


Evaluate Controlling and Profit Center reports

You want to evaluate periodic reports by Real Estate object and by cost element. You also want to implement exception reporting.

Your company intends to implement Profit Center Accounting. You use the information system to view the effect of postings on the profit center.

9-1 Display the following reports in the information system:

9-1-1 Controlling - Non-cumulative values - Structure-oriented - Actual period overview

Enter the selection criteria for your business entity; call up the report via a set if possible.

Branch to the CO and FI documents on which the revenues from your rental agreements are posted.

Make a selection of all business entities if you want to evaluate a large dataset.

Navigate from the object view to the cost element view. Display the report subdivided into cost element groups.

9-1-2 Controlling - Cumulative values - Actual line items Branch to the FI documents.

9-1-3 (*) Create an exception for the report "Actual: Period Overview" for January 1998. Specify that objects with revenues of at least X appear green and revenues below Y appear red. Choose the values for X and Y in such a way that the values are either marked red or green or not. Expand the hierarchy. Change to a display with no hierarchy.

(C) SAP AG AC290 9-15

9-2 (*) Post costs to your Real Estate objects. Use accounts of account group 4 and accounts 4150000 (External proc. costs), 451000 (Building maintenance), 470800 (RE Rental admin.). Call up the "Actual: Period Overview" report again by cost elements this time.

9-3 What profit centers are assigned to your rental units?

9-4 View the profit center reports:

List-Oriented Reports - Profit Center Group: Quarterly Comparison of Actual Data

(C) SAP AG AC290 9-16

Controlling Solutions

Unit: Controlling Topic: Profit Center, Costs and Revenues on Real Estate Objects

9-1

9-1-1 Accounting → Real Estate Management → Info System → Controlling/Settlements → Controlling RE Objects → Non-Cumulative Values → One Currency → By Objects → Actual: Period Overview

Selection via sets, see Solutions to Exercise 6, "Rental" Unit.

Branch to the documents: Place your cursor on a revenue of a rental agreement item and press Call up report. Choose Document to display the FI document and Detail to display the line item.

Double-click on Cost element (in the navigation field) and then on Object to change the view. Press the hierarchy and then choose the value RE_ALL as Cost element group.

9-1-2 Accounting → Real Estate Management → Info System → Controlling/Settlements → Controlling RE Objects → Cumulative Values → Actual Line Items

9-1-3 Call up the report. Mark the "January" column and choose Extras -> Create exception. Flag "Column" and press Enter. Define your own text for the exception in the next screen and determine the threshold conditions:

Lower threshold Upper threshold Active Active

Threshold value X Y

Color Green Red

Condition Lesser than or equal to Greater than or equal to

Press Expand.

Press Hierarchy, then Hierarchy selection and then No hierarchy.

Note:

(C) SAP AG AC290 9-17

If you save your report definition, the exception and the hierarchy display are also saved and can be used every time you call up reports.

9-2 Accounting → Financial accounting → General ledger → Document entry→ G/L account posting

9-3 Accounting → Real estate management → Master data → Objects → Rental unit → Display

9-4 Accounting → Real Estate Management → Info System → Profit Center Accounting → List-Oriented Reports → Profit Center Group: Quarterly Comparison of Actual Data


Controlling area 1000

Fiscal year 1999

Profit center or value(s) 1410 - 1480

(C) SAP AG AC290 10-1

© SAP AG 1999

Contents:Plant Maintenance ⇒ using functional locations

Project System ⇒ projects (project structure elements)

Materials Management ⇒ Orders with account assignment on Real Estate objects

Asset Accounting ⇒ assets and depreciation

Integration

Refer to the following units for other aspects of integration: Profit centers -> Enterprise Controlling -> Controlling unit Cost centers and Real Estate objects as account assignment objects -> Controlling unit General ledger and auxiliary ledger accounting -> Financial Accounting -> Rental Accounting unit Document link -> Cross-Application Functions unit

(C) SAP AG AC290 10-2

© SAP AG 1999


List the components and the related elements (apart from FI and CO) that are integrated with Real Estate Management

Describe where to find these integrated elements and how to process them

Integration: Unit Objectives

(C) SAP AG AC290 10-3

© SAP AG 1999

Course Overview

Settlement


InformationSystem

Taxes§§


Correspondence

Controlling

Master Data

Rental

Rental Accounting

Rent Adjustment

Integration

(C) SAP AG AC290 10-4

© SAP AG 1999

You are planning maintenance tasks for your Real Estate objects on the basis of a maintenance plan. You now have to enter the unscheduled maintenance tasks arising from a matter such as an unanticipated maintenance request.

You order material or labor for the maintenance task.

You are planning a new development or extensive maintenance tasks.

You want to use the Asset Management function for your Real Estate objects.

Integration: Business Scenario

(C) SAP AG AC290 10-5

© SAP AG 1999

Link to Master Data

BE

PR/BU

RU

RA

Adr

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

xVacancy

xOwn usage

LOGICAL inheritance: If no entry is maintained for an object that is a lower-level object in the hierarchy, the entry for the higher-level object is taken for evaluation

PHYSICAL copying: If an entry is not explicitly made, the entry for the higher-level object is taken

x Attribute maintenance of objects possibleAdr AddressBusAr Business areaPC Profit centerCCtr Cost centerFL Functional locationWBS Work breakdown structureBE Business entityPR PropertyBU BuildingRU Rental unitRA Rental agreement

BusAr PC CCtr Asset FL/WBS

This graphic gives you an overview of the linking and integration possibilities existing in the master data.

(C) SAP AG AC290 10-6

© SAP AG 1999

Functional Process in PM System

PM history

PM planningPM requirement/notifications

Resources

Reports

Maintenance plans

InternalactivitiesMaterial External

activities

PM orders

Directordercreation

Unscheduled maintenance Scheduled maintenance

Malfunction reports

The PM maintenance functions support regular maintenance work as well as tasks arising from malfunction reports.

For detailed information, refer to Course LO100.

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© SAP AG 1999

Plant Maintenance (RE ⇔ PM)

RE PM

BU

Rentalunit

Rentalunit

Businessentity

Func.loc

Func.loc.

Func.loc.

Func.loc.

Func.loc.

Func.loc.

Func.loc.

Actual

Planned

Com

pletion confirmation

PM order

The administrative aspect of the maintenance task settlement is made in the PM component. The structure of the plant maintenance objects has to be established according to the plant maintenance view.

The Real Estate objects have to be appropriately linked to functional locations. The individual maintenance tasks are represented by orders for functional locations.

You can plan the costs for the maintenance order. When you create a PM order (for instance, a malfunction report), the planned costs are automatically generated from the estimated duration of the task for the required activity type.

The completion confirmation triggers the change of planned costs to actual costs. The orders appear in Real Estate Management reports.

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© SAP AG 1999

Relationship Between RE Master Data and PM

Assignment of functional locations to Real Estate objects

Business entity

Property

Building

Rental unit

OptionsAssignments may be made but are not automatically updated

Functional location is created automatically

Functional location is created and updated automatically

It is possible to restrict the assignment to 1:1 for each object type

The assignment of Real Estate objects (business entity, property, building and rental unit) to functional locations can be restricted to a 1:1 relationship for each object type. Every time you assign a functional location to a Real Estate object, the system checks to see if a relationship already exists between this functional location and another Real Estate object.

It is still possible to create functional locations for Real Estate objects automatically. You may specify if the system should simply create and assign a functional location or if it should be updated each time the Real Estate object is changed. Example: If you choose to make automatic assignments, the system takes account of the Real Estate object hierarchy; this means that the functional location hierarchy is adapted accordingly; if you now change the assignment of a building or you change the building hierarchy itself, the functional location hierarchy is updated automatically.

Menu path in Customizing: Real Estate → Basic Settings → Set Link to Plant Maintenance → Determine Link

See also the unit on Integration.

(C) SAP AG AC290 10-9

© SAP AG 1999

Project System Integration (RE ⇔ PS)

Construction project

WBS WBS

WBS

WBS WBS WBSProject

Plan costs, budgeting

and posting

Settlement

Asset under construction

Cost center

RE obj. (BE)

REobj.

Finished asset

Extensive maintenance

RE object Asset

BE

BU

RU

Other CO object

Increase in value

Project System is very useful for new developments and extensive maintenance tasks.

Construction projects are usually entered as an acquisition in Asset Accounting when they are complete and then they are linked with a Real Estate object.

A possible scenario is that the master data has already been created in the system before completion of the object to ensure a smooth start-up.

You can activate costs for extensive maintenance measures by making a settlement to the asset. You can assign depreciation on the asset to an internal order. Depreciation appears in reporting by assigning the Real Estate object to the order.

(C) SAP AG AC290 10-10

© SAP AG 1999

Acquisition and net book value

Acquisition(= net book value)

Depreciations

Asset Accounting Integration (RE ⇔ AA)

Businessentity

Building

Property

Asset

Asset

RE AA

Costcenter Order

Settlement(either/or)

Rep

ortin

g

You manage Real Estate assets (acquisition and retirement, transfer postings, depreciations, appreciations) in Asset Accounting (R/3 FI-AA). The asset structure is determined from the accounting point of view. Assets can be assigned to buildings and properties. In this case, you denote the asset class as "real estate". You can assign several assets to a property or a building. If an asset is identified as being a leading asset, the asset super number of this asset has to be the number of the business entity. (The main usage type that can be used in account assignment is based on the main usage type of the leading asset.)

Corresponding reports are available for the asset values in the information system. Depreciation incurred on an asset is assigned to an internal order. This depreciation appears in reporting if you assign the Real Estate object to the order.

You can settle the internal order that has the depreciation to the building or to a cost center.

(C) SAP AG AC290 10-11

© SAP AG 1999

Reference

Reference

Entry

Commitmentincrease

Commitment increase

Cmmt reduction(for evaluatedgoods receipt+ actual values)

Cmmt reduction(for evaluated goods receipt+ actual values)

Reference

Purchase requisition(possibly w/o acct assgnmt)

Order

Goods receipt Goods receipt evaluated? not evaluated?

Goods receipt

Invoice receipt

Account assignment

toReal Estate

object:Business entity

BuildingProperty

Rental unitRental agreement

Cost collector

Continuous Process: From MM to FI

When you create a purchase requisition or order, you can also carry out account assignment on the Real Estate objects.

The commitments of the Real Estate object are updated when the order data is entered. When an invoice is entered with the purchase order, the account assignment is transferred from the order to the invoice. The commitment is cleared and replaced by the actual data.

You can evaluate commitment data for Real Estate objects in the Real Estate Management information system.

(C) SAP AG AC290 10-12

© SAP AG 1999

Rentalunit

Rentalunit

Property

Rentalunit

Rentalunit

Building

Businessentity

Order

Func.loc.

Order Order

Func.loc.

Func.loc.

Func.loc.

Func.loc.

Order

Asset

Order

Asset

Assetsuper number

ReportRE object- .........- .........- .........

Depreciation

Integrated Reporting

Real Estate ManagementAsset Accounting Plant Maintenance

Orders can be assigned to Real Estate objects. In the reporting system, costs posted to orders are analyzed as well as those costs assigned directly to the account of objects, reflecting the hierarchical structure of Real Estate.

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© SAP AG 1999

Integration Reports

DepreciationsAbsolute/relative depreciations

Percentage depreciation

Acquisitions/retirements

Controlling objects in Real Estate Management(by objects/tenants/owners/cost elements)

Period overview: actual, commitments, plan

Period comparison: actual, commitments, plan

Year overview: actual, commitments, plan

Year comparison: actual, commitment, plan

Actual/commitments/plan/variances

Actual/area unit

Actual/apportionment unit

Call up the following reports to see what data is stored: Controlling/Settlements Controlling RE Objects - Non-Cumulative Values - One Currency - By Objects - Actual/Commitments/Plan/Variances

A commitment comes from an order (MM integration). You can view data from Asset Accounting if the depreciation of an asset is assigned to an internal order. The asset has to be assigned to a property or a building. If a maintenance order exists and the functional location that is assigned to this maintenance order is also assigned to an object, the costs of a maintenance task can also be viewed in reporting.

(C) SAP AG AC290 10-14

© SAP AG 1999

Integration: Unit Summary


List the components and the related elements (apart from FI and CO) that are integrated with Real Estate Management

Describe where to find these integrated elements and how to process them

(C) SAP AG AC290 10-15

Integration Exercises

Unit: Integration Topic: Link to Plant Maintenance, Malfunction Reports


• Create a malfunction report in tenant information and display the report of the resulting planned values in the information system

• Create an order, carry out account assignment on a Real Estate object and check the resulting commitment values in the information system

A tenant calls you to report a malfunction. You create a malfunction report.

You then enter an order for paint and assign the costs to the building.

10-1 In tenant rental, create a malfunction report for the respective rental unit.

Create a PM order out of the malfunction report. Choose main work center ELECTRIC.

10-2 Display the actual/commitments/plan/variances report. Choose report selection Orders for functional location.

(C) SAP AG AC290 10-16

Integration Solutions

Unit: Integration Topic: Link to Plant Maintenance, Malfunction Reports

10-1 Accounting → Real estate management → Rental → Tenant information

Enter the name of your tenant.

Choose Goto → Display rental unit.

Open the Plant maintenance tab.

Press Malfunction report.

Enter a text for the malfunction report and choose Create order.


Business area 9900

Main work center Electric

Enter 2 (hours) for the work effort of the main work center.

Save your data. The system calculates the planned costs on the basis of the specified work effort and the activity type.

10-2 Accounting → Real Estate Management → Info System → Controlling/Settlements → Controlling RE Objects → Non-Cumulative Values → One Currency → By Objects → Actual/Commitments/Plan/Variances

Make sure that the fiscal year is correct. Expand the hierarchy if necessary. Planned costs are displayed for the PM order.

(C) SAP AG AC290 11-1

© SAP AG 1999

Taxes

ContentsOutput tax commercial rental agreements

Input tax processingOption rate determination

Input tax distribution

(C) SAP AG AC290 11-2

© SAP AG 1999

At the conclusion of this unit, you will be able to explain:

The different ways of calculating option rates and name the objects that use option rates

The difference between actual and planned principle

The process (monthly activities) for rentals that are subject to sales tax

Why you may have to make adjustment postings in the service charge settlement

Taxes: Unit Objectives

(C) SAP AG AC290 11-3

© SAP AG 1999

Abrechnung

Steuern§§

Vermietung

MietanpassungRent Adjustment

Rental

Settlement

InformationSystem


Integration

Correspondence

Controlling

Master Data

Taxes§§

Course Overview

RentalAccounting


(C) SAP AG AC290 11-4

© SAP AG 1999

You are managing rental units that are being used for commercial purposes and are liable for sales tax

You opt for sales tax for these agreements in order to reduce the input tax

Taxes: Business Scenario

If you manage commercially used Real Estate objects, you must make the appropriate setting in Customizing so that the company codes affected are opted.

(C) SAP AG AC290 11-5

© SAP AG 1999

Planned principle Value-added tax for the advance payments is posted when the debit position is made

Debit Position for Rentals Liable for Sales Tax (Output Tax) - Planned Principle

CustomerJ 110

110 K

Debit position

VAT allocation AP requests Advance payments

Bank

Output tax

10 K

J 110 110 KK 10

J K +G

SGL* Tax

*SGL = Special general ledger

The service charge advance payment can be posted in accordance with the planned or actual principle. This is dependent on the tax category setting of the special G/L account to which the posting is to be made.

Planned principle: The output tax is posted at the same time as the debit position.

Actual principle: The output tax is posted at the same time as the incoming payment. (a balance-neutral posting is made beforehand.)

In the case of “Planned principle”, the special G/L accounts for the special general ledger have to be set as follows: Planned principle: Special G/L account for payment request (I): not tax relevant

Special G/L account for advance payments made (K): + G (gross) The basic rent is always posted according to the actual principle.

(C) SAP AG AC290 11-6

© SAP AG 1999

CustomerJ 110 110 J

110 K

Debit positionIncoming payment

VAT allocation AP requests Advance payments

Bank

110

Output tax

10 K

I 110 110 K110 JK 10

J K +G

SGL Tax

Debit Position and Incoming Payment for Rental Liable to Tax - Planned Principle

Planned principleVAT for the advance payments is posted at the same time as the debit position

Information about the tax treatment used for rental agreements is in the payment data: - No rental liable to tax - Rental liable to tax with the appropriate tax indicator - Indicator for opting - Opting reason

Different tax rates can be defined for each condition item.

(C) SAP AG AC290 11-7

© SAP AG 1999

Debit Position for Rental Liable to Tax (Output Tax) - Actual Principle

Actual principleVAT for the advance payments is posted at the same time as the incoming payment

J +GK +G

CustomerJ 110

110 K

Debit position

AP requests Advance payments VAT allocation

Bank

Output tax

J 10 10 K

J 110 110 K K 10 10 J

SGL Tax

In the case of “Actual principle”, the special G/L accounts for the special general ledger have to be set as follows:

Actual principle: Special G/L account for payment request (I): +G (gross) Special G/L account for advance payments made (K): + G (gross)

(C) SAP AG AC290 11-8

© SAP AG 1999

J +GK +G

CustomerJ 110 110 J

110 K

Debit positionIncoming payment

AP requests Advance payments VAT allocation

Bank

110

Output tax

J 10 10 K10 J

I 110 110 K110 JK 10 10JJ 10

SGL Tax

Debit Position and Incoming Payment for RentalLiable to Tax - Actual Principle

Actual principleVAT for the advance payments is posted at the same time as theincoming payment

(C) SAP AG AC290 11-9

© SAP AG 1999

Option Tax - Input Tax

Area Volume Others (= enclosed area)

Can be determined Maintainautomatically manually

Rental liable to taxTotal rental

Reference factors

Option rate =

Objects:Settlement unitBusinessentityProperty

Building

Correction items

In some countries, the rental of real estate and the sale of property is exempt from sales tax. Any input tax arising from tax-free sales cannot be charged to the company.

An option rate is valid for a calendar month. The key date principle (the rates applicable on the key date are the basis for calculation) is used for the automatic calculation. You have to enter the key date for online calculations. For batch runs, the key date is the date on which the batch run is made.

On the key date, the rental units of the calculation objects are analysed. Rental units are opted in the following cases:

- RU with an active rental unit and an indicator set for input tax opting - RU has a preliminary contract (status Commercial preliminary contract CPC) with the indicator for

the input tax opting: - Preliminary contract is concluded - Date of contract conclusion predates key date for calculation - Rental begin is after the first day of the month used for calculation - RU is vacant and has the indicator Opt for vacancy

The following applies to properties: If the property does not have its own rental units, the option rate of the buildings assigned to the property is transferred as long as the property is assigned a building at 100%.

(C) SAP AG AC290 11-10

© SAP AG 1999

Input Tax Treatment (Specific to Germany)

Account assignment objects with option rate

Business entity

Building

Property

Settlement unit

ProcedurePost document with deductible input tax

Monthly determination of the option rate

Monthly distribution of input tax in deductible and non-deductible parts

For settlement units: Tax posting is adjusted by service charge settlement

(C) SAP AG AC290 11-11

© SAP AG 1999

Input Tax Treatment Steps

Detailsof

option ratedetermination

Program for automatic determination of the option rates

Manual maintenance of the option rates

Update of option ratesin the master data objects

(values)Log

Automatic input taxbreakdown

Documents

DocumentsSCS: Adjustment posting

Settlement units

Incoming invoices are posted with input tax rate of 100%. A (batch) program for automatic determination of option rates is started monthly if non-manual option rates are preassigned.

The program for input tax distribution uses the option rates determined to split the input tax into deductible and non-deductible shares. Non-deductible shares of the input tax are posted or activated in the expenses. The posting run can be reversed. You can also reverse individual documents.

The correct input tax distribution for apportionable service charge costs can only be calculated when the service charge settlement is made. If necessary, adjustment postings are made at this point.

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© SAP AG 1999

Tax Breakdown - Controlling the Postings

Posting possibilities for non-deductible input tax:1. A target account of non-deductible input tax for each original accnt2. A target account of non-deductible input tax for all cost elements 3. To original account

Cost element A

Cost element B

Deductible input tax

300

200

6030

Non-deductible B

20 3

40 3

20 140 120 240 2

Non-deductible A

20 1

40 120 340 3

20 240 2

Non-deductible input taxfor all cost elements

Option rate 33%

Depending on the Customizing settings, the breakdown postings are made to accounts for non-deductible input tax. This maintains the search sequence given above. We do not recommend variant 3 (posting to the original cost account) as the gross expenses for this procedure do not appear separately in Controlling.

Objects that have an option rate in the given month with the option type "0 no calculation" are not taken into account for the tax breakdown.

(C) SAP AG AC290 11-13

© SAP AG 1999

20

20

Input Tax Distribution Adjustment byService Charge Settlement

Starting situation Monthly I.T distribution

Gross expenses PA Deductible input tax (I.T) Credit account Credit N.D*. input tax

Deductible input tax N.D. input tax RA clearing N.D input tax clearing

500 50 15 500

50 15 200 Residential300 Commercial

Customer posting ofSCS

30

Tax adjustmentposting

50 155

155

N.D. input tax Output tax N.D input tax revenue

Deductible I.T Receivables SCS revenue

220 Residential330 Commercial

500

20

Credit posting SCSTax treatment

Credit posting

*N.D = Non-deductible

The option rate of the settlement unit is determined at 70% - the commercial share of the object is 70%. The input tax distribution is made using this value as a base (70% * 50 = 35 or N.D. input tax: 30% * 50 = 15). (The example is simplified by taking a tax rate of 10%).

The breakdown of gross costs for the commercial and residential tenant is made in the framework of the service charge settlement with the result that 40% of the costs are due from the residential tenants and 60% of the costs are due from the commercial (opting) tenants. The adjusted option rate is determined at 60%.

A credit posting for the settlement unit and the operating costs account is made with the breakdown ratio that has been specified. This posting contains the adjusted breakdown of the taxes in a deductible and not-deductible share.

An adjustment posting is made due to the difference between the original breakdown (70%) and the adjusted breakdown (60%).

The debit posting to the commercial tenants uses the output tax rate of 10% (according to this example) as defined in the rental agreement.

(C) SAP AG AC290 11-14

© SAP AG 1999

TaxesInput tax distribution

Option ratesOption rate changes

Rental units/agreements changes

BE/PR/BU option rates

Tax Reports

Call up the following reports to see what data is stored: Other - Taxes - Option Rates - Option Rates BE/PR/BU Other - Taxes - Input Tax Distribution

(C) SAP AG AC290 11-15

© SAP AG 1999

You are now able to explain:

The different ways of calculating option rates and name the objects that use option rates

The difference between actual and planned principle

The process (monthly activities) for rentals that are subject to sales tax

Why you may have to make adjustment postings in the service charge settlement

Taxes: Unit Summary

(C) SAP AG AC290 12-1

© SAP AG 1999

Workflow

ASAP

Archiving

Authorizations

Validation and Substitution

Document management/optical archiving


(C) SAP AG AC290 12-2

© SAP AG 1999


Describe the cross-application functions and relevant application examples

Name the tools used

Cross-Application Functions Unit Objectives

(C) SAP AG AC290 12-3

© SAP AG 1999

Course Overview

Rent Adjustment



InformationSystem

Taxes§§Integration

Correspondence

Controlling

Master Data

Rental


(C) SAP AG AC290 12-4

© SAP AG 1999

You want to implement the Real Estate Management component using ASAP. You can limit the size of your dataset by using archiving.You want to support your business processes by validation/substitution or workflow. The individual processes are subject to an authorization concept. You want to store documents about your Real Estate objects. You want to store the correspondence that the system prints in the optical archive.

Cross-Application Functions: Business Scenario

(C) SAP AG AC290 12-5

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Workflow

Business Object Repository (BOR) objectsBusiness entity, property, building, land register, rental unit, room, application, offer, rental agreement, general contract, management contract, settlement unit

Sample workflow forRental end/notice

Link to maintenance for master data

Resubmit/send in time for deadline (master data, rental agreement)

© SAP AG

Workflow controls processes according to a predefined model and is especially suited for structured and working organizations. Processes can be flexibly automated by workflows.

Twelve Business Object Repository objects (BOR) are supplied with the standard delivery that form the basis for workflows: Business entity, building, property, land register, rental unit, room, application, offer, rental agreement, general contract, management contract, settlement unit

You can send the individual objects to a user on the required date with a note (in the object required, select System -> Workflow -> Send object with note).

Two sample workflows are supplied: One workflow generates a workflow item when a rental unit is created and this work item creates the necessary functional location. Once the functional location has been created, this is automatically assigned to the rental unit (WS 20000215). The other work flow triggers workflow items at the rental end of a contract and this triggers other workflow items (termination notification, rental unit inspection -> release rental collateral, rent adjustment -> compare vacant rental units with applications -> message for new rental (WS 20000197)).

The sample workflows are not activated on shipment - you must activate them. In addition to this, you have to have an agent assignment. You will usually assign tasks, positions, work stations and organizational units rather than an actual user.

(C) SAP AG AC290 12-6

© SAP AG 1999

Workflow - Editor

You can display and edit the workflow definition in the graphical editor. Training course BC600 provides an introduction to workflow.

(C) SAP AG AC290 12-7

© SAP AG 1999

ASAP for RE

Assignment of IMG activities to processesAssignment of IMG activities to processes

Assignment of transactions to processesAssignment of transactions to processes

Assignment of Business Object Repository to processesAssignment of Business Object Repository to processes

Question and answer database (Q&Adb) Question and answer database (Q&Adb)

Graphical modelingGraphical modeling

(C) SAP AG AC290 12-8

© SAP AG 1999

Process

Processrental unit

Create infrastructure

of SCSsettlement

EnterparticipationID and name

Assign rental units

Enter validitydate for participation ID

Rental unitsassigned to

part. ID

Process settlement units

Process pathEventOperatorFunction

Navigate with the process pathTest the assigned transactionRead the documentation on thetransaction

The process model is represented by event-driven process chains (EPCs). The following modeling elements are available on the process level: - Events - Functions - Operators (and, or, exclusive or) - Process path

You navigate with the process path, test the transactions assigned and call up the documentation assigned.

(C) SAP AG AC290 12-9

© SAP AG 1999

Archiving

Obj. archived

Obj. with del.IDResidence time(Archiving)+

Obj. with DLFL Residence time(Deletion indicator)+ CC

CC

AAObject Set deletionflag

+

CC

Archiving is used to delete data that is no longer needed so that the amount of data is reduced and the system has less to deal with.

Up to Release 4.0B, rental agreements, applications and offers could be archived. Effective with Release 4.5A, business entities, properties, buildings, rental agreements, settlement units and management contracts can also be archived.

Activity: Set a deletion flag on the object you want to archive. A residence time for this indicator has been defined in Customizing. Once this residence time has elapsed, a deletion indicator is set on the relevant objects. After an additional residence time of the archiving (also defined in Customizing), the objects with the deletion indicator are activated during an additional archiving run. During an archiving run, objects can be archived and deleted, or simply archived.

(C) SAP AG AC290 12-10

© SAP AG 1999

Validation and Substitution

Validation:

Process of testing values and combinations of values that the standard system accepts.

A Boolean statement has to be defined in Customizing for testing the truth value.

If the truth value test result is "False", a user-defined error message is issued.

The message category informs you about data - if it can be saved or if a posting can be made.

Substitution:Process of replacing values that the standard system accepts.

The system tests the values entered using a user-defined Boolean statement.

If the statement is for the values is true, they are replaced.

This substitution is made before the data is sent to the database.

CC

Substitution example: The usage type of a rental unit determines the business area of a rental agreement. In Customizing, rules have been defined that result in the Business area field in the rental agreement being filled out automatically. This is dependent on the usage type of the rental unit. If you cannot change these automatically maintained values, use the field status control to set this field to display.

Validation example: The usage type of a rental unit determines the permitted values for a business area of a rental agreement. In Customizing, rules have been defined that result in the testing of values in the Business area field in the rental agreement. If the values entered do not fulfill the defined rules, the values are rejected and the rental agreement cannot be saved with these values in the Business area field.

(C) SAP AG AC290 12-11

© SAP AG 1999

Document Management/Optical Archive

Document management:Use: Create an external document -> Assign to system objects (such as rental unit)

Create document (for instance, location plan)

Assign document type to Real Estate objects

Optical archive:Use: Manage the correspondence generated in the system

Print (for instance, rental agreement, SCS correspondence)

Set indicator for link to optical archive

AA

CC

CC

AA

Document management: You want to link an external document to your Real Estate objects. You create the document in Logistics (central functions). In addition, you also have to make assignments between the document types and the applications (business entity, rental unit, rental agreement) in Customizing in "Cross-Application Functions".

Optical archive: You want to archive the SAP R/3 printed correspondence with a link to the respective object. In Customizing, you have to set the "Optical archive installed" indicator located in "Correspondence".

(C) SAP AG AC290 12-12

© SAP AG 1999

1000 1 - 25Create, change, display

Authorizations

Authorization bAuthorization a Authorization c

Variableauthorization field

Fixed authorizationfields

Profile 3 Profile 4

Profile 1

User

Composite profile A

Ex.RA

Values Values

Company codeBusiness entityActivity

Authorization group

100 - 500

Profilegene-rator

Typicaluser

Accountant

Necessaryauthorization

Tool:Supportsprofile generation

Profile

User Mr Brown

CC

Profile 2

A user has one or more individual or composite profiles in the master data. A user has all the authorizations contained in the profile. The authorizations are derived from the criteria. As of Release 4.5, you can define a variable criteria in addition to the fixed criteria. You can, for example, define a business area as a criterion in addition to the fixed criteria, company code, business entity and activities for the rental agreement. You have to enter the business area in the Authorization group field.

You have to enter values in the criteria. The "Profile generator" tool supports you in a dialog-oriented manner with the generation of profiles (from Release 4.0B).

Changes to an authorization or a profile affect all users with this authorization/profile.

(C) SAP AG AC290 12-13

© SAP AG 1999


Describe the cross-application functions available

Describe how to use these cross-application functions

Name the tools used

Cross-Application Functions: Unit Summary

(C) SAP AG AC290 13-1

© SAP AG 1999

This section contains additional material intended for reference purposes

This material does not form a part of the standard course

As this material is complementary to the course, the course instructor might not use it

Appendix

(C) SAP AG AC290 13-2

© SAP AG 1999

Appendix Overview

Sample accounts in the standard system account plan

Tips for the Customizing project

Posting procedures

Tax treatment advance payments

Accrual/deferral

Cash deposit

Service charge settlement for own usage

Input tax treatment fixed assets

Overview: Periodic activities

(C) SAP AG AC290 13-3

© SAP AG 1999

Accounts Used in Standard System

196900 Advance payment receivables- operating costs 196910 Advance payment- operating costs 196920 Advance payment- sales-based rent 196930 Rental deposit220050 Rental deposit interest expenses 470400 Apportionable operating costs 470499 Clearing-apportionable operating costs470500 Settlement-rental agreements operating costs470510 Settlement-rental agreements operating costs

w/o clearing470520 Settlement-rental units operating cost470580 Settlement-own usage operating costs470590 Clearing-advance payment operating costs 470700 Imputed expense vacancy rent470750 Clearing- vacancy OC advance payment470800 Expenses for management of rental objects470850 Clearing-real estate rental management revenue470900 Expenses for non-deductible input tax 470950 Settlement-OC non-deductible input tax470999 Clearing-OC non-deductible input tax

Account 1Account 1

Account 2Account 2

Account nAccount n

841000 Revenue from third-party usage rent841050 Other rental revenue (third-party/own usage)841070 Revenue from operating costs-flat rates841080 Revenue from rent-own usage841090 Revenue from writing back AP operating costs841099 Clearing advance payment operating costs841100 Advance payment receivable update OC841110 Advance payment update operating costs841120 Advance payment update sales-based rent841130 Update rental deposit841500 Revenue from third-party usage OC stt. usage841580 Revenue from rent-own usage841680 Rent paid in arrears (accrued)841690 Rent paid in advance (deferred)841700 Imputed revenue vacancy rent841750 Revenue from vacancy costs AP841800 Rental from management of rental objects841850 Real estate credit service cost revenue841900 Revenue from non-deductibe input tax SC stt. 841910 Revenue from deductibe input tax/fixed assets888900 Rental sales deduction (third party/own)

(C) SAP AG AC290 13-4

© SAP AG 1999

IMG Functions

SAP Reference

IMG

CompanyIMG

ProjectIMG

(FI sub-project...)

ProjectIMG

(RE sub-project)

Views(see above)

Views(Attributes generated, for example, all mandatoryactivities ,or selected manually)

Filters

Filters

CustomizingDocumentation

CustomizingStatus

CustomizingTransactions

DevelopmentClient

1. The SAP Reference IMG consists of all Customizing activities for all the R/3 application components. 2. The Enterprise IMG is generated by choosing the country, application component and functions. 3. Customizing projects are created and added to the IMG structure as a means of controlling the R/3 implementation. The Project IMG is created by selecting country, application component and functions on the basis of the Enterprise IMG. 4. To reduce the number of steps required for implementation, views of the Project IMG can be generated for every project, for instance a view for "All mandatory activities". You create the views automatically based on the attributes or by manual selection. •The attribute (mandatory activity, critical activity, country specifics) are predefined by SAP. •You can define a status for the various activities, such as "In process", "For review", "Completed" and track the history of each activity. •You can arrange the project view display in such a way that the title of the particular Customizing activity appears along with its status. •You can also document the Customizing activities (by creating comments and notes), plan resources and then carry out evaluations based on planned and actual man-days •You can choose a transport type for the activity. You can set the option for "automatic", "manual" or "no" transport. •You can display a documentation for all IMG activities and print it along with all the subnodes (for instance, at the outset of a project). For detailed information, refer to Course BC080.

(C) SAP AG AC290 13-5

© SAP AG 1999

Deferral: Rents Paid in Advance

Rent in advance: 3 months rent paid per quarter in the first month

Debit position 1st month: 3 months rentDeferral 1st monthDeferral 2st monthDeferral 3rd month

11223344

Customer

3000--

Deferred income

-10001000

Revenue

3000--

2000

Reserve advance rents

2000

Cons. reserve advance rents

10001000

11

2233

11

44 4433

22

You can use the deferral function for expected revenues from sales-based rental agreements. Different deferral methods are available.

(C) SAP AG AC290 13-6

© SAP AG 1999

Accrual: Rent Paid in Arrears

Rents paid in arrears: 3 months rent paid in 3rd month of quarter

Customer

--

3000

Other receivables

10001000

--

Revenue

--

3000

2000

Reserve Reserve rent arrearsrent arrears

10001000

---

Cons. reserve rent arrears

---

4

12

4

23 3

1 --

2000

Accrual 1st monthAccrual 2st monthAccrual 3rd monthDebit position 3rd month

234

1

(C) SAP AG AC290 13-7

© SAP AG 1999

Cash Deposit

Rental agr.Cash dep.Interest

Flow category Flow type Calculation type PostingA Cash deposit AA 1 Debit position, 1a inc. pymntTC Int. clrg cash deposit ZV 2a, 2b Interest expense (J1, J2)TZ Cash deposit interest TZ 3 Transfer posting interestTT Return of cash deposit TT 4 Transfer posting cash deposit

4a payment

Customer Receivables

Special general ledger indicator C

4a 1076.25

Bank1 1000

Cash deposit1000.00 1

1 1000 1a 10001000 1a1000 1a

50.00 2a4 1000.003 76.25

76.25 31000. 4400

76.25 31000 4

26.25 2b 50 2a4 10003 76.25

1000 1

26.25 2b

Interest expense

2a 502b 26.25

1076.25 4a4a 1076.25

Special flow categories are used for account determination of cash deposit postings. You have to assign special calculation categories to the flow types so that the interest calculations and postings are handled correctly. You also have to create condition types for the flow types.

The debit position posting for cash deposits is derived from the flow type with calculation category AA. The offsetting entry is made using the special general ledger transaction (C) in the customer account.

At the end of an interest period, an interest clearing posting is initiated by the debit position. The flow type with flow category ZV is used for this.

At the end of the contract, the system calculates the interest and credits this in the debit position to the customer account (calculation type TZ). The prorated interest settlement is also carried out.

The flow category and settlement category have to be assigned in the detail screen for flow types. (Flow types used in standard Customizing: 6000 Cash deposit, 6100 Cash deposit interest clearing, 6200 Cash deposit interest, Cash deposit repayment)

Example: Rental agreement 01/01/1997-06/30/1998 with cash deposit of USD 1000, 5% interest, 12-monthly according to 360/360 rule, interest calculation on 12/31.

Posting of 5% of USD 1000 = USD 50 made on 12/31/1997 - interest calculation on 06/30/1998: 5% of USD 1000 for half year = USD 25, 5% of USD 50 for half year = USD 1.25, total USD 26.25.

Total interest: USD 50 for 1997, 26.75 for 1998, total USD 76.25.

(C) SAP AG AC290 13-8

© SAP AG 1999

Posting Activities - Own Usage (1)

General ledgerSubsidiary Ledger

Credit account

Revenue rented space ownusage operating costs

(1) Cctr 1000(1) Cctr 100

App. costs expenseRent expense ownusage

Clearing AP OC own usage

Revenue rented space ownusage


VendorCommitments

Own usage clearing OC expensesRA clearing

100 RA (1)1000 RA (1)

Vend

ors

Cus

tom

ers

Balance accounts

Reconciliation account

(C) SAP AG AC290 13-9

© SAP AG 1999


Credit account


(1) Cctr 1000(1) Cctr 100





VendorCommitments


100 RA (1) 1000 RA (1)

Vend

ors

Cus

tom

ers

Balance accounts


250 (1a)250 (1a)

(1a) SU 250

Posting Activities - Own Usage (1a)

1. Debit position 1a. Posting service charges incurred The service charges incurred are posted to an appropriate account, with account assignment on the relevant settlement unit.

.

(C) SAP AG AC290 13-10

© SAP AG 1999


Credit account


(1) Cctr 1000(1) Cctr 100





VendorCommitments


100 RA (1) 1000 RA (1)

Vend

ors

Cus

tom

ers

Balance accounts


250 (1a)250 (1a)

(1a) SU 250


(2) RA 250 250 SU (2)

1. Debit position 1a. Posting service charges incurred 2. Credit settlement unit The cost account and the cost collector of the settlement unit are credited by means of a credit account. Offsetting entries are generated as a result of the distribution determined by the settlement. These are posted as follows: Costs to be allocated to cost center (this is the tenant in the case of third-party usage) are assigned to the rental agreements and posted on a "Rental agreement clearing" account.

(C) SAP AG AC290 13-11

© SAP AG 1999


Credit account


(1) Cctr 1000(1) Cctr 100





VendorCommitments


100 RA (1) 1000 RA (1)

Vend

ors

Cus

tom

ers

Balance accounts


250 (1a)250 (1a)

(1a) SU 250

(2)RA 250 (3) Cctr 250 250 SU (2)

250 RA (3)


1. Debit position 1a. Posting service charges incurred 2. Credit settlement unit 3. Debit cost center Finally the costs that can be allocated to cost center are posted to an appropriate general ledger account as expense. The offsetting entry is a revenue posting assigned to account of the corresponding rental agreements.

(C) SAP AG AC290 13-12

© SAP AG 1999


Credit account


(1) Cctr 1000(1) Cctr 100





VendorCommitments


(4) RA 100 100 RA (1) 1000 RA (1)

Vend

ors

Cus

tom

ers

Balance accounts


250 (1a)250 (1a)

(1a) SU 250

(2)RA 250 (3) Cctr 250 250 SU (2)

250 RA (3)100 Cctr (4)


1. Debit position 1a. Posting service charges incurred 2. Credit settlement unit 3. Debit cost center 4. Transfer advance payments When you transfer advance payments, the costs are charged to cost center.

(C) SAP AG AC290 13-13

© SAP AG 1999

Account Assignments of the Posting Activities

General ledger

Credit account

250 SU (2)


(1) Cctr 1000(1) Cctr 100

App. costs expense

(1a) SU 250

Rent expense ownusage





(2)RA 250 (3) Cctr 250

100 RA (1) (4) RA 1001000 RA (1)

100 Cctr (4) 250 RA (3)

CO View

Settlement unit Settlement unit SUSU

(1a) 250250 (2)

⇒ Distribute costs

Rental agreement RA 1000 (1)

100 (1)(2) 250

250 (3)(4) 100

⇒ Revenue 1000

Cost center CCtr (1) 1000 (1) 100(3) 250

100 (4)

⇒ Debit CCtr1250

(C) SAP AG AC290 13-14

© SAP AG 1999

SCS Account Determination Own Usage

Original costelement

Credit account for the cost elementClearing account RAClearing account RA without passed on costsClearing account RUCredit account n.d. input taxClearing account n.d. input tax

Flow category3UES

Flow type

Acct determinationfor flow type

Condition type Advance payment

Flow type

Reference flow typeReceivables from settlement

Reference flow typeown usage

Service charge key

Endsettlement

Credit Debit renting cost centers Transfer posting SU RU/RA RA Receivables Advance payment

Account assignment for the reference flow type

(C) SAP AG AC290 13-15

© SAP AG 1999

Periodic Tasks

Debit positionRental agreementsVacancy

Periodic posting(general contract)Incoming paymentDunningAccount statement processingAccrual/deferralScheduled maintenance (Plant Maintenance)Tools

Generate cash flowSet RU status from occupancy status

Service charge settlementHeating expenses settlementOwner settlementManagement costs settlementSales-based rent settlementCO settlement

Application and offerTenant changeoverOne-time postings RepairEvents in management contract

Periodic Closing Event-drivenTasks Tasks Tasks

The status of the rental unit has no time-dependency. However if you need to update the rental unit status, we recommend running report

RFVIBL00.

This report sets the status of the rental unit on the basis of the (time-dependent) occupancy status.

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