ac295+ +flexible+real+estate+management

© SAP AG AC295 Preface-1

© SAP AG 2003

FS310 Collections/Disbursements

THE BEST-RUN BUSINESSES RUN SAP

© SAP AG 2004

AC295Flexible Real Estate Management

AC295 Flexible Real Estate Management

SAP R/3 Enterprise

2004/Q3

Material number 50069242


© SAP AG 2003

Copyright 2004 SAP AG. All rights reserved.

Neither this publication nor any part of it may be copied or reproduced in any form or by any means without the prior written consent of SAP AG. The information contained in this publication is subject to change without prior notice.

Copyright

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

software vendors. Microsoft, Windows, Outlook and PowerPoint are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iSeries,

pSeries, xSeries, zSeries, z/OS, AFP, Intelligent Miner, WebSphere, Netfinity, Tivoli, and Informix are trademarks or registered trademarks of IBM Corp. in the USA and/or other countries.

ORACLE is a registered trademark of ORACLE Corporation. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered

trademarks of Citrix Systems, Inc. HTML, XML, XHTML, and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium,

Massachusetts Institute of Technology. JAVA is a registered trademark of Sun Microsystems, Inc. JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and

implemented by Netscape. MaxDB is a trademark of MySQL AB, Sweden. SAP, R/3, mySAP.com, xApps, xApp and other SAP products and services mentioned herein as well as their respective

logos are trademarks or registered trademarks of SAP AG in Germany and in other countries worldwide. All other product and service names mentioned are the trademarks of their respective owners. Data contained in this document serves informational purposes only. National product specifications may vary.

The information contained in this publication is subject to change without prior notice. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.


© SAP AG 2003

Course Prerequisites

Mandatory:

AC010 Financial Accounting and Reporting

Recommended:

AC200 General Ledger/Accounts Payable/Accounts Receivable – Basic Configuration

AC201 Periodic Processing in Accounts Payable/Accounts Receivable

CR590 Business Data Toolset


© SAP AG 2003

Target Group

Participants

Project team responsible for the implementation

Duration

5 days


© SAP AG 2003

Course Objectives

This course gives you an overview of Flexible Real Estate Management

You learn how to map your real estate business processes in the system

You learn basic settings and the details of various functions

You become acquainted with the system


© SAP AG 2003

Course Topics

Object and business partner master data

Contract management

Adjustment of conditions

Service charge settlement

Sales-based rental agreements and settlement

Integration with other components

Input tax treatment

Basic customizing settings

After completing this course, you will be familiar with the following topics:


© SAP AG 2003

Course Content

Unit 1 Course OverviewUnit 2 Master DataUnit 3 Business PartnerUnit 4 Contract ManagementUnit 5 AccountingUnit 6 Adjustment of ConditionsUnit 7 Service Charge SettlementUnit 8 Sales-Based Contracts and SettlementUnit 9 Controlling in the RE-FX EnvironmentUnit 10 Integration with Other ComponentsUnit 11 Input Tax TreatmentUnit 12 Tools and Cross-Application Functions

Preface

© SAP AG AC295 1-1

© SAP AG 2003

Course Overview

Content:

Business scenario

Customizing and application

Search and navigation area

Prerequisites

© SAP AG AC295 1-2

© SAP AG 2003

Course Overview Diagram

Course Overview

Business Partner

Contract Management

Accounting

Tools and Cross-Application Functions

Service Charge Settlement

Master Data

Adjustment of Conditions

Sales-Based Contracts and Settlement

Controlling in the RE-FX Environment

Integration with Other Components

Input Tax Treatment

© SAP AG AC295 1-3

© SAP AG 2003

Business Scenario: Processes

The IDES company leases a Business Park.

IDES wants to use the SAP R/3 System for managing its real estate.

You are a member of the implementation team.

The system should manage the following business processes:

Contract entry

Rent collection, payment transactions, dunning



Sales-based agreements and settlement

Integration processes to other components

© SAP AG AC295 1-4

© SAP AG 2003

Prerequisites

Activate Financials Extension

Activate Flexible Real Estate Management

Activate Financial Assets Management

Activate Real Estate Management in the necessary controlling areas

To be able to work with Flexible Real Estate Management, you need to first make the following settings:

Set the indicator activating the Financials Extension: In the SAP menu, choose: Tools Customizing IMG (transaction SPRO) , then SAP Reference IMG Activation Switch for SAP R/3 Enterprise Extension Set. Select the Financials Extension (EA-FIN)

Activate Flexible Real Estate Management: In the SAP menu, choose: Tools Customizing IMG (transaction SPRO) SAP Reference IMG Flexible Real Estate Management (Enterprise Extension) Basic Settings Activate Real Estate Extension. Set the extension to active (refer to the documentation on this).

Activate Financial Assets Management: In the SAP menu, choose: Tools Customizing IMG (transaction SPRO) SAP Reference IMG Flexible Real Estate Management (Enterprise Extension) Basic Settings Basic Settings for Other Components Basic Settings for Company Code/Activate Financial Assets Management. Select the Financial Assets Management for your company code.

Activate Real Estate Management in the controlling area: In the SAP menu, choose: Tools Customizing IMG (transaction SPRO) SAP Reference IMG Flexible Real Estate Management (Enterprise Extension) Basic Settings Basic Settings for Other Components Activate Real Estate Management in Controlling Area. Select your controlling area Activate Components/Control Indicator. Select Real Estate Management.

© SAP AG AC295 1-5

© SAP AG 2003

Customizing and Application

Enter or change data, and save:e.g. create lease-out, renew contract, give notice

Specify defaults in Customizing:e.g. lease-in, lease-out, service provider contract

How?

End user, real estate support

Project team,system administrator

Who?

2. Step:Choose contract type

1. Step:Create contract types

Example: Contract type

Enter, administer and edit data in the system

Make system settingsWhat?ApplicationCustomizing

© SAP AG AC295 2-1

© SAP AG 2004

Content:

Organizational Structures in SAP R/3 Enterprise

Business Scenario

Architectural View

Usage View

Measurements

Rental Object Conditions

Integration in PM

Master Data

© SAP AG AC295 2-2

© SAP AG 2003

After completing this unit, you will be able to:

Explain how the RE Navigator works

Explain how the architectural view is used

Explain the master data in the usage view and the relationships among the objects

Explain the main uses of both of these views

Explain how measurements and rental object conditions are used

Master Data: Unit Objectives

© SAP AG AC295 2-3

© SAP AG 2003

Master Data: Overview Diagram

Course Overview

Business Partner

Contract Management

Accounting



Master Data





Input Tax Treatment

© SAP AG AC295 2-4

© SAP AG 2003

Master Data: Business Scenario

The IDES company leases a Business Park.

IDES wants to use the SAP R/3 System for managing its real estate.

You are a member of the implementation team.

The system should manage the following business processes:

Contract entry

Rent collection, payment transactions, dunning



Sales-based agreements and settlement

Integration processes to other components

© SAP AG AC295 2-5

© SAP AG 2003

The following organizational elements of internal and external accounting are used for managing business processes in Flexible Real Estate Management:

Company code

Controlling area(derived from the company code)

Organizational Structures in R/3 Enterprise

These elements are client-specific!

These organizational elements have to be defined outside of the Flexible Real Estate Management component. You make the needed settings in Customizing for Financial Accounting (FI) and Controlling (CO).

© SAP AG AC295 2-6

© SAP AG 2003

Overview of Organizational Structure

Controlling Area

CompanyCode 1

ProfitProfitCenter 2Center 2


CompanyCode 2

CostCostCenter 4Center 4






......



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

Note:

Multiple company codes can belong to one controlling area.

Multiple profit centers and cost centers can be assigned to one company code.

© SAP AG AC295 2-7

© SAP AG 2003

RE Navigator: Overview

Information Text / Detail Screen Object Data

List of Objects in StackBuilding 1000/1000/1Business Entity 1000/1000Property 1000/1000/1

Find ObjectResubmissionAppointment CalendarInformation System

1000/1000/1Object Data

Subordinate Objects

Address

Measurements

Functional Locations

Fixt./Fittings characteristics

Object Overview

Building

Pooled Spaces

Rental Units1000/1000/11000/1000/21000/1000/3

The RE Navigator is a standardized transaction for processing master data, contracts, and the infrastructure of service charge settlement.

Processes such as entry of notice/renewal or the resubmission process can also be performed in the RE Navigator.

© SAP AG AC295 2-8

© SAP AG 2003

RE Navigator: Functions

Call additional functions:• Object Overview• Find object function with multiple

selection• Resubmission• Calendar with optional MS Outlook

integration• Information system (reporting)

Select objects

• Expand and collapse object hierarchy• Define display criteria• Find object• Tools• Worklist• Favorites• Update overview

• Display objects• Create new objects

(BE, PR, BU, PS, RU, RS)• Delete objects• Create contract• Contract processes

Object Search

Resubmission

Calendar

Information System

1000/1000/1

Object Overview


Subordinate Objects

Address

Measurements


Pooled Spaces

Rental Units


1000/1000/11000/1000/2

Find Object

Resubmission

Appointment Calendar

Information System

Object Overview

Building

1000/1000/3

CreateChangeDisplayCheckCopyWorklistChange StatusAdditional Functions

Right mouse button

The RE Navigator is the starting point for the following processes: Create or change the master data of the architectural view Create or change the master data of the usage view Delete object (this is only possible if the object has not yet been used in accounting. The

hierarchy of the object must also be taken into account, which means that deletion is only possible from the bottom up.)

© SAP AG AC295 2-9

© SAP AG 2003

RE Navigator: Resubmission of Objects

Resubmission rules can be created for the following object types:

• Architectural object• Business entity• Property• Building• Rental object• Real estate contract

Plant Maintenance Link to Architecture Assignment to ContractResubmission

Parameter

ID Resubmission Rule Resub. Rsn Name End Date

Status Date ID Resub. Rsn Name Done Days Fix Memo

One-Time Occurrence on 01.08.2003 Check LocationAs of 08/02/2003 every 10 months

Gen. ResubmissionOne-Time Occurrence on 19.05.2003Gen. Resubmission

Gen. ResubmissionGen. ResubmissionGen. ResubmissionGen. Resubmission

• Create resubmission rule• Define parameters

• Create and edit resubmission dates

• Change date properties• Set date to completed• Update date flow• Create memo• Display user data

All objects can be assigned resubmission rules.

Resubmission reasons can be freely defined in Customizing and can be used as evaluation criteria.

You can carry out the resubmission process using a list

The dates are set automatically in the SAP appointment calendar.

Synchronization with Microsoft Outlook is also possible.

© SAP AG AC295 2-10

© SAP AG 2003

Example of Architectural Object Hierarchy

4. 4. FLFL3. 3. FLFL2. 2. FLFL1. 1. FLFLGFLGFLBldgwing 1

Bldgwing 2 Pk.Spaces

Lawn

GFLGFL 1st FL1st FL GFLGFL2nd 2nd FLFL 1st 1st FLFL

Main Building

Pk.Spaces2nd 2nd FLFL

AreaAreaArea Area Area

Parking Garage

Property

Campus

In this example, the top level object is a campus. However, you can use any architectural object (such as a property or building) as the top level object. You make the necessary settings for this in Customizing.

It is also necessary to enter an ID when you create an architectural object. If you want to be able to search for architectural objects in the architectural view, this ID has to be unique within the entire hierarchy. (The best approach is for the ID of the object to contain the IDs of all objects above it in the hierarchy.)

Example:

Architectural object = Room 57 in Campus WDF, Building 01, Wing C, Floor 3. ID of this object = WDF_01_C_3.57

The example shows several ways of structuring a hierarchy. Before you can set up a hierarchy that reflects how your objects are related, you first have to specify the superordinate objects that are permitted for each architectural object type. You do this in Customizing.

You specified Floor as the superordinate object type for Building Wing. In this case, you can only assign Building Wing object types below the Floor level (see Main building example). However, you can define Building Wing as superordinate to Floor at the same time. In that case, it is possible to use Building Wing above or at the same level as Floor. (See the example for an adjacent building).

© SAP AG AC295 2-11

© SAP AG 2003

Architectural Object Type

BuildingWing

FloorApartment

Room/Space

Setti

ngs

Setti

ngs Office Center West

Shopping CenterShop Floor 3BParking, Green St.Parts Storage 1Manager's Apartment

Campus Location Seattle

Customizing Application

Object type, e.g. Object, e.g.

Building Complex

Property

Boiler Room/Lobby

... ...

In order to create an arch. hierarchyyou first have to

decide in Customizing which architectural objects can be at the

top levelof the hierarchy.

In order to create an arch. hierarchyyou first have to

decide in Customizing which architectural objects can be at the

top levelof the hierarchy.

TopTopLevelLevel

TopTopLevelLevel

You can define the object types for master data in the architectural view to suit your needs. That is, you can use the names you commonly employ for architectural structures.Example: You want to depict a real estate object that consists of multiple building complexes and properties.

To be able to use the architectural view, you have to make the following settings in Customizing:

Architectural object types needed

Allowed object hierarchies: how object types are assigned to one another

Functions per architectural object type (optional setting)

Measurements per architectural object type: residential space, usable space, lawns/landscaped areas, retail space, and so on

You have to specify at least one architectural object type as the top level of the hierarchy; however, it is possible to have more than one.

Three architectural object types have to be linked in Customizing to the three top-most master data objects in the usage view: for example, locality to business entity, building to building, property to property.

It is not possible to create an architectural object outside of a hierarchy. You always have to create architectural objects within a hierarchical structure.

Optional: Function of the architectural object type

Can be set in Customizing per architectural object type. The function is used to categorize an architectural object (for example, defining the type of room or building). It can be entered in the application, and used in reporting, but the data is for information only.

Path: Customizing → Flexible Real Estate Management → Master Data → Architectural View → Architectural Object Type

© SAP AG AC295 2-12

© SAP AG 2003

Architectural View

Use of the architectural view is optional.

© SAP AG 2003

Detailed representation of architectural structure of your real estate, for example, campus with buildings, wings, floors, rooms, lawns, and so on

Detailed information on measurements, that can also be made available in the usage viewfor example, information on floors or rooms

Cross-company-code capabilitiesOne architectural hierarchy can be used as the basis for the usage view in multiple company codes.

Depiction of static information Technical structures in real estate objects (such as functional locations) can be completely mapped in the architectural view.→ This provides more flexibility in the usage view!

Support of links to graphical systems

© SAP AG AC295 2-13

© SAP AG 2004

Master Data in the Usage View

Pooled Space

Bus. entityBus. entity

Rental spaceOffice 2



Pooled Space

Companycode

CoCd

Rental unitJanitor's

apartment

Officespace 1

Officespace 2

Officespace 3

Scale 1:75

BuildingsBuildingsProperty

Property

The most superior element in the hierarchy of the usage view is the business entity. The business entity is assigned uniquely to one company code. The business entity groups together real estate objects that are related. 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.

It can contain any number of buildings and properties. The buildings and properties are assigned unique numbers in the business entity. This numbering can be internal, external or user-defined.

There are three types of rental objects:

Rental unit (not flexible, can only be leased out as a single unit)

Pooled space (from here you can extract rental spaces that can be leased out, however the pooled space itself cannot be leased out)

Rental space (a space extracted from a pooled space for the purpose of leasing it out)

The number assignment of rental objects is unique within the business entity. You cannot lease out business entities, buildings and properties directly, but they can be leased in.

© SAP AG AC295 2-14

© SAP AG 2003

Rental Object Types

Rental UnitPooledSpace

OfficeSpaceOfficeSpace

OfficeSpace 3

Scale 1:75 Rental Space

OfficeSpace

1

Rental Object

Contract

Can only be leased as a whole, just like the rental unit

in Classic RE.

Space, from which you extract smaller spaces for rental (rental spaces). It

cannot be leased out on its own as a whole. It cannot

include space from several different buildings or

properties.

A flexible space that can be leased out, and which has to

be extracted from a previously defined pooled space.

In Flexible Real Estate Management, there are three types of rental objects:

Rental unit

Pooled space

Rental space

These rental objects are predefined, but you can refine them to meet your needs by assigning usage types and measurement types to them in Customizing.

A pooled space is a space from which smaller spaces (= rental spaces) are extracted in order to be rented:

A pooled space cannot be leased out as an object itself.

You cannot create a pooled space that contains space in more than one building or property. For example, if you have a contract and you want to assign rental spaces (with "office space" as the measurement type) from different buildings, then you have to create a separate pooled space for each building.

© SAP AG AC295 2-15

© SAP AG 2003

Usage View

© SAP AG 2003

Three rental object types are available:Rental unit – Pooled space – Rental space

You decide how detailed your rental objects need to be, for example, rental unit (a fixed unit) – rental space (defined flexibly)

When you create a contract, you extract rental spaces as needed.You can also create rental objects directly in the contract for lease-outs.

Enhanced conditions Conditions based on any measurements Structured by market evaluation (market rent, cost rent)

Flexible measurementsMeasurements for a rental object can be defined with unlimited validity –changes to the rental object do not mean the measurements have to be changed too.

Record of changes made over timeFixtures and fittings characteristics, measurements, conditions, partners, and architectural objects can all be assigned over a limited time and these assignments can be displayed.

The most important element for real estate processes in the usage view is the rental object. Rental objects can be leased in and leased out.

In rental object processing, you choose among the three rental object types shown above.

You extract rental spaces from a previously defined pooled space. This can be done either before creating the contract or while creating the contract.

© SAP AG AC295 2-16

© SAP AG 2003

Extracting Rental Spaces

I.

III.

II.

Pooled space with office capacity: 3 x 50 m² = 150 m²

Rental spaces

Pooled space with available office space: 150 m² - (25 m² + 30 m² + 40 m²) = 55 m²

Office 125 m²

Office 230 m²

Office 340 m²

It is recommended that you create a rental object as a flexible rental space and not as a rigid rental unit if it is likely to be subject to frequent change (such as storage or advertising space). The existence of the higher-level pooled space makes processing of the rental space much simpler.

You need to have a pooled space in order to be able to define rental spaces. The pooled space cannot contain spaces from more than one building or one property. This means that if you want to lease out rental spaces (with usage type "office space") in Building 1 and Building 2, you have to create separate pooled spaces for each of the two buildings.

A pooled space can only be created for one particular usage type (in the example, "Office space"). You can also extract rental spaces for another usage type from the pooled space. For this, a derivative usage type must be defined in "Customizing". For example, a rental space with the usage type "medical practice" can be extracted from a pooled space with the usage type "office". You can choose either to create the rental spaces manually during master data maintenance, or you can extract the rental spaces and assign them directly while processing the contract.

The size of the pooled space increases or reduces automatically when the relevant contract is concluded.

© SAP AG AC295 2-17

© SAP AG 2003

Usage Types of Rental Objects

Living

room

Bed-

roomBed-

room

Scale 1:75

Rental object

Screen sequenceScreen sequence

ConditionsConditions

Derivable usage type for a pooled space

Derivable usage type for a pooled space

Basic participation in SCS

Basic participation in SCS

Rental object typeRental object type

Measurement typesMeasurement types

The usage type is the main criterion of rental objects and cannot be changed in existing rental objects.

It determines the screen layout/field status.

Conditions are permitted per usage type.

Measurements are permitted for the usage type depending on the rental object type (for example, the "residential space" measurement is maintained for "residential" usage type, while the "office space" measurement is maintained for the "office" usage type).

With the usage type, you can generally exclude rental objects from the service charge settlement.

The usage type of a pooled space can be integrated into another usage type within an extracted rental space.

© SAP AG AC295 2-18

© SAP AG 2003

Rental Object Conditions

Some reasons for entering conditions on a rental object:Vacancy

Overview of lost rentVacancy posting (to cost centers/projects/orders)

Default Condition Conditions, such as basic rent, can be copied to the contract

ReportsConditions that are entered on the rental object can be comparedwith contract conditions (for example, basic rent of the object compared to actual rent income).

The condition purpose provides additional options in reporting, for example, reporting on vacancy rent or market

rent.

© SAP AG AC295 2-19

© SAP AG 2003

Architectural and Usage Views

Architectural Hierarchy

Architectural Hierarchy

FloorFloor

Room

PS

CoCd 1CoCd 1CoCd 1

BE

BU

PR

PS

RU

RS

PS

CoCd 2CoCd 2CoCd 2

BE

BU

PR

PS

RU

RS

You can link a usage object to an architectural object that already exists

With the RE Navigator, you can create corresponding usage objects for an architectural object

Legend:CoCd = Company code BE = Business entityBU = Building RS = Rental spacePR = Property RU = Rental unitPS = Pooled space

You can create corresponding usage objects while processing architectural objects.

Within the usage view, you can link usage objects to architectural objects. Prerequisite: The architectural object must be contained in an architectural hierarchy.

On the business entity level and buildings/property level, for each company code you can assign only one object to an architectural object. However, you can assign several rental objects from one or more company codes.

There is a validation check for measurements to ensure that the measurement of the usage object does not exceed that of the architectural object.

© SAP AG AC295 2-20

© SAP AG 2003

Measurementsfrom 01/01/00

Validity of measurement object: from 01/01/2000

MeasTp Med.Name Meas.Type Avail.Amt Capacity Unit MeasFrom MeasTo Outside Total

Total Area 0.00 1000.00 M2 01/01/2000Usable Space .00 1000.00 M2 01/01/2000Office Space 0.00 1000.00 M2 01/01/2000 12/31/03Room Capacity in Persons 14 200 PC 01/01/2000

Measurements

A002 [Floor Area]+A004 [Resid. Space]+A005 [Second. Space]+A100 [Retail Space]+A101 [Office Space]+A102 [Parking Area]

A001=

Total of weighted addends

Total Measurement A001(Total Area)Made up of

Custom-izing

Time Slot Management

Allowed Measurement Types

MeasTp Med.Name Meas. Type Def.Unit

Floor Area M2Residential Space M2Secondary Space M2Retail Space M2Office Space M2Parking Area M2Room Capacity in Persons PCNo. of Parking Spaces PCNo. of Parking Garage Spaces PCCubic Volume M3Share of Garden %No. of Rooms PCGreen Area M2

Customizing

01/01/2000-12/31/2003 [current]<Show all time periods>01/01/2000-03/01/200101/01/2000-12/31/2003 [current]

Measurements are used for tracking measurable aspects of objects. They take the place of the areas and apportionment units used in Classic Real Estate Management. The measurement type describes what is actually being measured (area, unit, percentage, room, and so on). You can set an indicator in Customizing for measurement types that are for area. This indicator then makes it possible for you to run reports specifically on area, and allows a check on the unit of measure.

You can define the measurement types you need in Customizing. For processes such as service charge settlement and option rate determination, we recommend that you group special measurement types together into total measurements. (This is also done in Customizing.)

Path: Customizing → Flexible Real Estate Management → Basic Settings → Basic Settings for Flexible Real Estate Management → Measurements

In objects that are used for more than one purpose, you can use different measurement types, such as "A004 Residential Space" and "A003 Usable Space" to distinguish between residential and commercial use. For service charge settlement by area, you then group these two measurement types together using "A200 Res./Use.Space" as a total measurement.

You can also enter a numerator and denominator for spaces if only a fraction of the space is to be considered. To calculate the size of apartments in Germany, for instance, only half the area of a balcony or terrace is added on to the living area under certain circumstances. If you wish to enter this area separately, you can make the necessary settings in Customizing.

You can limit the validity of measurements to a specific time period. Using the Time Slot Management function, you can sort and display these time periods.

© SAP AG AC295 2-21

© SAP AG 2003

Usage Objects

Measurements: Use

Settlement Unit

RORO RORO RORO

ParticipationGroup

ParticipationGroup

RORO RORO

Business entity

Building

Property

Rental objectRental object(RU, PS, RS)(RU, PS, RS)

ArchitecturalObjects

RFloor

Measurements of the rental objects are used for:

Calculationof conditionamounts


Option rate determination*

I. II.

IV.ReportsIII.

Measurements are used in the following Real Estate objects:

Architectural objects (all hierarchy levels)

Usage objects (business entity, property, building, rental object)

Settlement unit (for service charge settlement)

Measurements of rental objects are used for:

The basis for calculating and distributing condition amounts

Processes of service charge settlement and option rate determination, for determining the results for apportionment or distribution of option rates. The measurement type that is used for these calculations depends on the specifications in the settlement unit or option rate method.

* Option rate determination is a country-specific development and is not available in all countries.

© SAP AG AC295 2-22

© SAP AG 2003

Customizing – Measurement Type

Measurement TypeMeasurement Type

Residential spaceWater consumptionRetail spaceRoom capacity in personsParking space...

ArchitecturalObject

Doctor's office

Rental Object

Doctor's office12 Green StreetAnytown, OH

Contract

Privately-financed apartmentStoreOfficeDoctor's officeGarage...

Usage TypeUsage Type

LocalityBuildingWingParking LotFloorRoom...

Architectural Object Type

Rental unitPooled spaceRental space

Rental Object Type

© SAP AG AC295 2-23

© SAP AG 2003

Customizing – Condition Type and Condition Group

Condition TypeCondition Type

Example:Basic rentAP operating costsFlat rate - elevatorRent reduction

…

Usage TypeCondition GroupRental Object

Example:Rental object (commercial)Rental objectParking lot/Parking space…

Example:Office, store, warehouseParking space (private), parking space (commercial), parking lot…

© SAP AG AC295 2-24

© SAP AG 2003

InternalCondition Purpose

StatisticalOne-time statisticalOne-time postingPosted

Cost rentOne-time cost rentMarket rentOne-time market rentVacancy rentOne-time vacancy rent...

One-time postingPosted

Actual RentOne-time actual rent...

InternalCondition Purpose

Example:

Contract

PredefinedPredefined

PredefinedPredefined

OfficeSpace 1

OfficeSpace 2

OfficeSpace 3

Scale 1:75

Off.Space 1Rental o

bject

ExternalCondition Purpose

ExternalCondition Purpose

You defineYou define

You defineYou define

Customizing - Condition Purpose

In processing for a rental object or contract, you can choose among different external condition purposes that are based on predefined internal condition purposes. You can set up external condition purposes in Customizing as needed, but they always have to be assigned to an internal condition purpose.

The condition purpose defines how and if a condition is taken into account during periodic posting.

Example:

Contract: Condition = basic rent - condition purpose = actual rent (posted)

Rental object: Condition = basic rent - condition purpose = vacancy rent (statistical)

© SAP AG AC295 2-25

© SAP AG 2003

Special Services:Create AttachmentCreate NoteSend Object with NoteWorkflow (Overview, Start, Archived...)

Document management and archivingCorrespondence – master data summary, general letter, one-time correspondenceTime slot management

Display of time-dependent data in table form (current, historical, future)MeasurementsAssignment of object to contractAssignment of object to partner, and partner to contract in various rolesAssignment of contract or rental object to conditions of variouscondition typesAssignment of fixture and fittings characteristics to building or rental object

Master Data: Additional Functions

© SAP AG AC295 2-26

© SAP AG 2003

Master Data: Summary

You are now able to

Explain how the RE Navigator works

Explain how the architectural view is used

Explain the master data in the usage view and the relationships among the objects

Explain the main uses of both of these views

Explain how measurements and rental object conditions are used

© SAP AG AC295 2-27

Data Overview

Your Own Data – Group Number ##

Data Type Data to Be Created Master Data Unit Architectural Objects Usage Objects Locality AR## Business entity 1## Building AR##/VW Building 1## / 1 Floor AR##/VW/EG

Room AR##/VW/EG-01 Pooled space 1## / 1 Room AR##/VW/EG-02 Pooled space 1## / 1 Floor AR##/VW/1.OG

Room AR##/VW/1.OG-01 Pooled space 1## / 2 Property AR##/GR01 Property 1## / 1 Parking spaces AR##/GR01/PARK Pooled space 1## / 3 Building AR##/WHG Building 1## / 2 Apartment AR##/WHG/WHG01 Rental unit 1## / 4 Apartment AR##/WHG/WHG02 Rental unit 1## / 5 Rental space 1## / 6

Data Type Data to Be Created Business Partner Unit Business Partner Business partner number - organization

Business partner number - person

Data Type Data to Be Created Contract Management Unit

Lease-in Number

Business partner Business partner number Vendor number Commercial lease-out Number

Business partner Business partner number Customer number Apartment lease-out Number

Business partner Business partner number Customer number Internal lease-out Number

Cost center number Cost center name Internal lease-out

Cost center number Cost center name Rental security deposit Number

© SAP AG AC295 2-28

Data Type Data to Be Created Accounting Unit

Periodic posting ID January

Customer number Total open items

Document number (incoming payment)

Periodic posting - Vacancy ID January

Data Type Data to Be Created Adjustment Unit

Contract number with index adjustment

Index adjustment ID

Contract number with free adjustment

Free adjustment ID

Data Type Data to Be Created Service Charge Settlement Unit Assigned Objects Participation group (TG) VERW Building 1## / 1 Participation group PARK Property 1## / 1 Participation group WOHN Building 1## / 2 Participation group ALLE Participation group VERW and

participation group WOHN Settlement unit WATER Service charge key 1200, TG WOHN Settlement unit MUELL Service charge key 1600, TG WOHN Settlement unit REINP Service charge key 2301, TG PARK Settlement unit REINV Service charge key 2300, TG VERW Settlement unit GRST Service charge key 1000, TG ALLE Pre-distribution settlement unit VVAE Service charge key 1550, AE MUELL and

AE REINV Water supply vendor invoice

Document number Account assigned settlement unit WATER

Parking lot cleaning vendor invoice

Document number Account assigned settlement unit REINP

Property tax vendor invoice

Document number Account assigned settlement unit GRST

© SAP AG AC295 2-29

Cleaning/garbage vendor invoice

Document number Account assigned settlement unit VVAE

Periodic posting ID December

Measuring point for rental unit 1000 / 1## / 4

Measurement document number - start

Measurement document number on 31.12. of last year

Settlement ID

Data Type Data to Be Created Sales-Based Rent Unit

Pooled space – store usage type - number

Commercial lease-out number


Sales-based settlement ID

Commercial lease-out number


Sales-based settlement ID

Final settlement (sales) ID

Data Type Data to Be Created Controlling Unit

Internal activity allocation document

Data Type Data to Be Created Integration Unit

Functional location number BU AR##/ / VW Malfunction report number

PM order number

CO settlement document number

© SAP AG AC295 2-31

Exercises

Unit: Master Data Topic: Creating Master Data

At the conclusion of these exercises, you will be able to:

• Use the RE Navigator and explain its functions

• Create master data in the architectural view and explain the relationships among the master data

• Explain how the architectural view is used

• Create master data in the usage view

• Explain the most important uses of both views

• Describe how measurements are used

Your organization leases in a locality, and your organization’s headquarters is located there.

The locality consists of expanses of open space and two buildings.

The first building is a two-story administrative building comprising an office area and two stores.

The second building is a small residential building with two homes.

The property contains parking spaces.

1 Create the architectural hierarchy. Start the RE Navigator.

1-1 Create a locality. Assign number AR## and code AR## for the locality.

Enter a name and address for your locality.

Assign number range 01 to 99 for the building object type and assign the unique number Floor for the room object type.

Save.

© SAP AG AC295 2-32

1-2 Create a building for your locality.

Assign number 01 and code VW for the building.

Assign the locality you have already created to your building as a superordinate object.

Enter administrative building as the name of your building.

Assign the following measurements to your building: Retail Space (A100): 300 m2 / Office Space (A101): 2700 m2

Save.

1-3 Create a floor for your building.

Assign number EG and code EG for the floor.

Assign the building you have already created to your floor as a superordinate object and change the separator to –.

Enter ground floor as the name of your floor.

Assign the following measurements to your floor: Retail Space (A100): 300 m2 / Office Space (A101): 1200 m2

Save.

1-4 Create a room for your floor.

Assign number 01 and code 01 for the room.

Assign the ground floor you have already created to your room as a superordinate object.

Enter Room01 – EG as the name of your room.

Assign the following measurements to your room: Office Space (A101): 400 m2

Save.

1-5 Use the copy function to create another room for your floor.


Assign the ground floor you have already created to your room as a superordinate object.

Enter Room02 – EG as the name of your room.


Save.

© SAP AG AC295 2-33

1-6 Use the copy function to create another floor for your building.

Assign number 01 and code 1.OG for the floor.

Assign the administrative building to your floor as a superordinate object.

Enter first floor as the name of your floor.


Save.

1-7 Use the copy function to create a room for your first floor.


Assign the first floor you have already created to your room as a superordinate object.

Enter Room01 – 1.OG as the name of your room.


Save.

1-8 Create a property for your locality.

Assign number 01 and code GR01 for the property.

Assign the locality AR## you have already created to your property as a superordinate object.

Enter a name for the property.

Save.

1-9 Create parking spaces for your property.

Assign number 01 and code PARK for the parking lot.

Assign the property AR##/GR01 to your parking spaces as a superordinate object.

Enter parking lot as the name.

Assign the following measurements to your parking lot: number of parking spaces (M005): 30

Save.

1-10 Use the copy function to create another building for your locality.

Assign number 02 and code WHG for the building.

Assign the locality to your building as a superordinate object.

Enter residential building as the name of your building.

Assign the following measurement to your building: Residential Space (A004): 170 m2

Save.

© SAP AG AC295 2-34

1-11 Create an apartment for your building.

Assign number 01 and code WHG01.

Assign the building AR##/WHG to your apartment as a superordinate object.

Enter janitor’s apartment as the name.

Assign the following measurement to your apartment: Residential Space (A004): 95 m2

Save.

1-12 Create a second apartment for your residential building using the copy function.


Enter apartment as the name.

Assign the following measurement to your apartment: Residential Space (A004): 75 m2

Save.

© SAP AG AC295 2-35

2 Create usage objects from the architectural view.

2-1 Create Business Entity 1## from the architectural object Locality (AR##).

Create the business entity and all subordinate usage objects in company code 1000.

Enter a name for your business entity.

In the Tenancy Law field, select Germany tenancy law from the dropdown list.

Assign the following measurements to your business entity: Retail Space (A100): 300 m2 / Office Space (A101): 2700 m2

Define business area 9100 (Real Estate) and profit center 1480 (RE Real Estate, Others) in the posting parameters.

Save.

2-2 From the architectural object Building (AR##/VW), create a building in the usage view and assign this building to your business entity.

Enter administrative building as the name of your building.

Assign the following measurements to your building: Retail Space (A100): 300 m2 / Office Space (A101): 2700 m2

Save.

2-3 From the architectural object Property (AR##/GR01), create a property in the usage view and assign this property to your business entity.

Enter a name for your property.

Assign the following measurement to your property: number of parking spaces (M005): 30

Save.

2-4 Create another building using the copy function and assign this building to your business entity.

Enter residential building as the name of your building.

Assign the following measurement to your building: Residential Space (A004): 170 m²

Link the building with the architectural object Building AR##/WHG.

Save.

© SAP AG AC295 2-36

3 Create rental objects in the usage view.

3-1 Create a pooled space with usage type Office.

Assign the pooled space to your Business Entity 1## and to Building 1 inside it.

Enter ground floor – office as the name and assign January 1 of last year as the date of the first posting.

Assign the following measurements to your pooled space: Office Space (A101): 1200 m2 / Room Capacity in Persons (M001): 45.

Define profit center 1450 (RE Office) in the organizational assignment in the posting parameters.

Assign the following condition types to your pooled space:

Condition Type Office basic rent (11)

Condition Purpose Vacancy rent

Formula Market rent (m2)

Unit Price 23,50

Condition Type Oper. costs adv. pmnt revenue (40)

Condition Purpose Market rent

Formula Market rent (m2)

Unit Price 4,80

Link the pooled space with the architectural objects room 1 (AR##/VW/EG-01) and room 2 (AR##/VW/EG-02) on the ground floor of the administrative building.

Save your pooled space.

3-2 Create a second pooled space using the copy function.

Enter first floor – office as the name.

Adjust the measurements for your pooled space: change Office Space (A101) to 1500 m2 and Room Capacity in Persons (M001) to 55.

Link the pooled space with the architectural object room 1 (AR##/VW/1.OG-01) on the first floor of the administrative building.


© SAP AG AC295 2-37

3-3 Create another pooled space with usage type Parking Lots.

Assign the pooled space to your Business Entity 1## and to Property 1 inside it.

Enter parking lots as the name and assign January 1 of last year as the date of the first posting.

Assign the following measurement to your pooled space: number of parking spaces (M005): 30

Define profit center 1470 (RE Garage Commerc.) in the organizational assignment in the posting parameters.

Assign the following condition type to your pooled space:

Condition Type Parking space / garage rent (15)


Formula Parking spaces

Unit Price 38,00

Link the pooled space to the architectural object parking lot (AR##/GR01/PARK).


3-4 Create another rental unit with Privately-financed accommodat. as the usage type.

Assign the rental unit to your Business Entity 1## and to Building 2 inside it.

Enter janitor’s apartment as the name and assign January 1 of last year as the date of the first posting.

Assign the following measurement to your apartment: Residential Space (A004): 95 m²

Define profit center 1410 (RE Apts Priv. & Pub.) in the organizational assignment in the posting parameters.

Assign the following condition types to your rental unit:

Condition Type Basic rent (10)


Formula Fixed amount

Unit Price 780,00

© SAP AG AC295 2-38

Condition Type Operating costs advance pmnt (20)

Condition Purpose Market rent

Formula Fixed amount

Unit Price 210,00

Link the rental unit with the architectural object janitor’s apartment (AR##/WHG/WHG01).

Save your rental unit.

3-5 Create a second rental unit using the copy function.

Use your janitor’s apartment rental unit as a template..

Change the name to apartment.

Change the measurement to the following value: Residential Space (A004): 75 m².

Change the conditions values to the following:

Condition Type Basic rent (10)

Unit Price 575,00

Condition Type Operating costs advance pmnt (20)

Unit Price 155,00

Link the rental unit with the architectural object apartment (AR##/WHG/WHG02).

Save your rental unit.

4 Extract rental spaces.

4-1 Generate a new rental object by extracting an office space from the pooled space on the ground floor (1000/1##/1).

To do so, use the function for generating rental spaces directly from a pooled space.

Enter measurement type A101 (Office Space) and extract 650 m².

Assign the room capacity in persons using the same ratio.

Enter Office_01 – 650m2 as the name of the rental space.

Save the new rental space

© SAP AG AC295 2-39

Solutions

Unit: Master Data Topic: Creating Master Data

1 Create architectural objects.

To start the RE Navigator, in the SAP Menu choose: Accounting → Flexible Real Estate Management RE Navigator RE Navigator (RE80)

1-1 Create a locality.

In the RE Navigator, change the display to Architectural Object.

Choose (Create). Enter the following data:

Field Name or Data Type Values

Arch. Object Type AR01

AOID Code AR##

Arch. Object No. AR##

Confirm your entries with (Continue).

Enter a description and then choose (Create New Address).

Maintain the entries for your address and confirm with (Continue). Confirm again with (Continue).

Go to the Number Assignment tab page and enter values 01 to 99 for the Arch. Object Type 03BU.

In the Number Assignment column, select [04FL] Floor from the dropdown menu for Arch. Object Type 05RO.

Save by pressing Ctrl + S or (Save).

© SAP AG AC295 2-40

1-2 Create a building.

In the Navigation Area, choose (Create). Enter the following data:


Arch. Object Type 03BU

AOID Code VW

Arch. Object No. 01


Assign locality AR## by choosing (Assign Higher-Level Object), then in the Arch.Obj. ID field enter AR## and confirm with (Continue).

Enter administrative building as the name.

Go to the Measurements tab page and choose . Select entries A100 and A101 and confirm with (Copy). Assign 300 m2 Retail Space and 2700 m2 Office Space.


1-3 Create a floor.



Arch. Object Type 04FL

AOID Code EG

Arch. Object No. EG


Assign building AR##/VW by choosing (Assign Higher-Level Object), then in the Arch.Obj. ID field enter AR##/VW and confirm with (Continue).

Change the separator from / to -.

Enter ground floor as the name.



© SAP AG AC295 2-41

1-4 Create a room.



Arch. Object Type 05RO

AOID Code 01

Arch. Object No. 01


Assign floor AR##/VW/EG by choosing (Assign Higher-Level Object), then in the Arch.Obj. ID field enter AR##/VW/EG and confirm with (Continue).

Enter Room01 – EG as the name.

Go to the Measurements tab page and choose . Select entry A101 and confirm with (Copy). Assign 400 m2 Office Space.


1-5 Create another room using the copy function.

In the Architectural Object field, enter the value AR##/VW/EG-01 and choose (Display).

Select the displayed room in the Navigation Area, click the right-hand mouse button and then choose Copy.

Select all entries and choose (Create).

Define number 02 and code 02, then choose ENTER.

Change the name to Room02 - EG.

Go to the Measurements tab page and change the A101 Office Space to 800 m2.


© SAP AG AC295 2-42

1-6 Create another floor using the copy function.

In the Architectural Object field, enter the value AR##/VW/EG and choose (Display).

Select the displayed floor in the Navigation Area, click the right-hand mouse button and then choose Copy.

Select all entries and choose (Create).

Define number 02 and code 1.OG, then choose ENTER.

Change the name to first floor.

Go to the Measurements tab page. Delete the A100 Retail Space entry by selecting it and then choosing . Change the A101 Office Space entry to 1500 m2.


1-7 Create a room on the first floor using the copy function.

In the Architectural Object field, enter the value AR##/VW/EG-01 and choose (Display).


Deselect the check for Superordinate Object and choose (Create).

Define number 01 and code 01.

Assign floor AR##/VW/1.OG by choosing (Assign Higher-Level Object), then in the Arch.Obj. ID field enter AR##/VW/1.OG and confirm with (Continue).

Change the name to Room01 – 1.OG.

Go to the Measurements tab page and change the A101 Office Space to 1500 m2.


© SAP AG AC295 2-43

1-8 Create a property.



Arch. Object Type 03PR

AOID Code GR01

Arch. Object No. GR01


Assign locality AR## by choosing (Assign Higher-Level Object), then in the Arch.Obj. ID field enter AR## and confirm with (Continue).



1-9 Create parking spaces.



Arch. Object Type 05PL

AOID Code PARK

Arch. Object No. 01


Assign building AR##/GR01 by choosing (Assign Higher-Level Object), then in the Arch.Obj. ID field enter AR##/GR01 and confirm with (Continue).

Enter parking spaces as the name of your object.

Go to the Measurements tab page and choose . Select entries M005 and confirm with (Copy). Assign 30 Parking Spaces.


© SAP AG AC295 2-44

1-10 Create another building using the copy function.

In the Architectural Object field, enter the value AR##/VW and choose (Display).


Deselect the check for Measurements and choose (Create).

Assign number 02 and code WHG.

Change the name to residential building.

Go to the Measurements tab page and choose . Select entry A004 and confirm with (Copy). Assign 170 m2 Residential Space.


1-11 Create an apartment.



Arch. Object Type 05AP

AOID Code WHG01

Arch. Object No. 01


Assign building AR##/WHG by choosing (Assign Higher-Level Object), then in the Arch.Obj. ID field enter AR##/WHG and confirm with (Continue).

Enter janitor’s apartment as the name of your object.



© SAP AG AC295 2-45

1-12 Create another apartment using the copy function.

In the Architectural Object field, enter the value AR##/WHG/WHG01 and choose (Display).

Select the displayed apartment in the Navigation Area, click the right-hand mouse button and then choose Copy.

Adopt all the selections and choose (Create).


Change the name to apartment.

Go to the Measurements tab page and change the Residential Space to 75 m2.


© SAP AG AC295 2-46

2 Create usage objects from the architectural view.

2-1 Create a business entity.

In the Navigation Area of the RE Navigator, change the display to My Objects and choose . Expand the Architectural Objects entry by pressing the icon on the left of the entry.

Select object AR##, press the right-hand mouse button, and then choose Create Usage Object for Architecture. Enter the following data:


Create From Arch. X

Arch. Obj. ID AR##

Company Code 1000

Business entity 1##


Enter a name.

On the Reference Factors tab page, select German tenancy law from the dropdown menu in the Tenancy law field.


Go to the Posting Parameters tab page and, in the Business Area field, enter the value 9100 (Real Estate) and, in the Profit Center field, enter the value 1480 (RE Real Estate, Others).

Save your business entity by pressing Ctrl + S or (Save).

© SAP AG AC295 2-47

2-2 Create a building in the usage view.

Select object AR##/VW in the Navigation Area, press the right-hand mouse button, and then choose Create Usage Object for Architecture. Enter the following data:


Create From Arch. X

Arch. Obj. ID AR##/VW

Company Code 1000

Business entity 1##


Enter administrative building as the name.


Save your building by pressing Ctrl + S or (Save).

2-3 Create a property in the usage view.

Select object AR##/GR01 in the Navigation Area, press the right-hand mouse button, and then choose Create Usage Object for Architecture. Enter the following data:


Create From Arch. X

Arch. Obj. ID AR##/GR01

Company Code 1000

Business entity 1##



Go to the Measurements tab page and choose . Select entry M005 and confirm with (Copy). Assign 30 Parking Spaces.

Save your property by pressing Ctrl + S or (Save).

© SAP AG AC295 2-48

2-4 Create a building in the usage view using the copy function.

Update the overview in the Navigation Area by pressing .

Expand the Building entry by pressing the icon on the left of the entry.

Select object 1000/1##/1, press the right-hand mouse button and choose Copy.

Deselect the check for Measurements and choose (Create).

Enter residential building as the name.


Go to the Link to Architecture tab page and choose (Assign). Enter AR##/WHG and confirm with (Continue).

Save your building by pressing Ctrl + S or (Save).

© SAP AG AC295 2-49

3 Create rental objects.

3-1 In the Navigation Area of the RE Navigator, change the display to My Objects and choose .

Select the Pooled Spaces entry, press the right-hand mouse button and choose Create Office. Enter the following data:


Company Code 1000

Business entity 1##

Building 1

Name of RO Ground floor - office

1st Posting 01.01. of last year

Go to the Measurements tab page and enter Office Space 1200 m2 and Room Capacity in Persons 45.

Go to the Posting Parameters tab page. In the upper screen area, select the Organizational Assignment line and in the Profit Center field, enter the value 1450 (RE Office).

Go to the Conditions tab page and choose . Select entries 11 (Office basic rent detail) and 40 (Oper. costs adv. pmnt revenue), and confirm with (Copy).

In the Cond. Purpose field, change the entry to Market Rent and enter 4.80 as the Unit Price, then change the Formula field to Com. Space m2.

In the upper screen area, select the Office basic rent line. Enter 23.50 as the Unit Price and change the Formula field to Com. Space m2.

Go to the Link to Architecture tab page and choose (Assign). Enter AR##/VW/EG-01 and confirm with (Continue). Press (Assign) again and then . Expand the display until you reach your room 2 on the ground floor of the administrative building. Double-click this object and confirm with (Continue).

Save your pooled space by pressing Ctrl + S or (Save).

© SAP AG AC295 2-50

3-2 Update the overview in the Navigation Area by pressing .

Expand the Pooled Spaces entry by pressing the icon on the left of the entry.

Select the entry 1000/1##/1, press the right-hand mouse button and choose Copy.


Change the name of your pooled space to first floor - office.

Go to the Measurements tab page and change the Office Space to 1500 m2 and the Room Capacity in Persons to 45.

Go to the Link to Architecture tab page and choose (Assign). Enter AR##/VW/1.OG-01 and confirm with (Continue).

Save your pooled space by pressing Ctrl + S or (Save).

3-3 Select the Pooled Spaces entry, then click the right-hand mouse button and choose Create Parking Lots. Enter the following data:


Company Code 1000

Business entity 1##

Property 1

Name of RO Parking lots


Go to the Measurements tab page and enter Number of Parking Spaces 30.

Go to the Posting Parameters tab page. In the top screen area, select the Organizational Assignment line and in the Profit Center field, enter the value 1470 (RE Garage Commerc.).

Go to the Conditions tab page and choose . Select entry 15 (Parking space / garage rent) and confirm with (Copy).

Enter 38,00 as the Unit Price and change the Formula field to Parking Spaces.

Go to the Link to Architecture tab page and choose (Assign). Enter AR##/GR01/PARK and confirm with (Continue).


© SAP AG AC295 2-51

3-4 Select the Rental Unit entry, then click the right-hand mouse button and choose Create Privately-financed accommodat. Enter the following data:


Company Code 1000

Business entity 1##

Building 2

Name of RO Janitor’s apartment


Go to the Measurements tab page and enter 95 m2 as the size of the Residential Space.

Go to the Posting Parameters tab page. In the upper screen area, select the Organizational Assignment line and in the Profit Center field, enter the value 1410 (RE Apts Priv. & Pub.).

Go to the Conditions tab page and choose . Select entries 10 (Basic rent) and 20 (Operating costs advance pmnt). Confirm with (Copy).

Enter 210,00 as the Unit Price for the AP operating costs condition type.

In the upper screen area, select the Credit basic rent line. Enter 780,00 as the Unit Price.

Go to the Link to Architecture tab page and choose (Assign). Enter AR##/WHG/WHG01 and confirm with (Continue).


© SAP AG AC295 2-52

3-5 Update the overview in the Navigation Area by pressing .

Expand the Rental Units entry by pressing the icon on the left of the entry.

Select the entry 1000/1##/4, press the right-hand mouse button and choose Copy.


Change the name of your rental unit to apartment.

Go to the Measurements tab page and change the Residential Space to 75 m2.

Go to the Conditions tab page and change the amount of AP Operating Costs to 155,00 euros.

In the upper screen area, select the Basic rent line and then return to the lower screen area and change the amount to 575,00 euros.

Go to the Link to Architecture tab page and choose (Assign). Enter AR##/WHG/WHG02 and confirm with (Continue).


© SAP AG AC295 2-53

4 Extract rental spaces.

4-1 Expand the Pooled Spaces entry by pressing the icon on the left of the entry.

Double-click entry 1000/1##/1 and then press (Changes Between Display <-> Change).

Go to the Rental Object Relationship tab page and choose (Extract New Rental Space).

Enter the following data:


Valid From 01.01. of last year

Amt Wanted 650

Start the search by choosing (Perform Search).

Double-click the line with the icon. This line represents the pooled space found.

Choose the icon next to the text Distrib. Other Measurements.

In the list that is displayed, double-click the text <new 1> and, in the lower screen area, enter Office_01 – 650m2.

Transfer the rental space by choosing in the bottom left corner.


© SAP AG AC295 3-1

© SAP AG 2004

Content:

Business Partner Category

Business Partner Role

Relationships Between Partners

Address Management

Business Partner

© SAP AG AC295 3-2

© SAP AG 2003

Business Partner: Unit Objectives

After completing this unit, you will be able to describe the following in relation to the SAP business partner:

Business partner categories

Business partner roles

Relationships between partners

Address management

© SAP AG AC295 3-3

© SAP AG 2003

Business Partner: Overview Diagram

Course Overview

Business Partner

Contract Management

Accounting



Master Data





Input Tax Treatment

© SAP AG AC295 3-4

© SAP AG 2003

Business Scenario: Overview

TaxOffice

Manager ofcafeteria

ReceptionistOffice tenant

Landlord

Party to contract

Employer of/Employed by

BBS Facility ManagementBBS Facility BBS Facility ManagementManagement

Tenant

Global Business Properties

Global Business Global Business PropertiesProperties

IDESIDESIDES

You have contractual relationships with the following organizations and persons:

Your landlord, Global Business Properties

Your service provider for building maintenance, BBS Facility Management

Your service provider for cleaning services, Shine & Co. Office Cleaning Services

Your cafeteria food service, Food for You, Inc.

Tenants in office spaces you lease out:

Andrea Lindsay, Attorney at Law, & Partners

ABC Marketing

M&M Consulting

Bear's Security Services

Your tax office

Your waste removal company

Your electric company and water company

© SAP AG AC295 3-5

© SAP AG 2003

Business Scenario: Details

FoodFor You, Inc.

FoodFoodFor For You, Inc.You, Inc.

Contact person,Authorized person

Contracts

Payments

Correspondence

Tenant

IDESIDES

New contact person from tenant side:

Ms. Wilson, business manager for Food for You, Inc., rents additional office space for her food service company.

Now Ms. Wilson would like to sign the lease, and says that she is the contact person at Food For You from now on. Until now, contact was with company headquarters of Food for You, Inc., without having a specific contact person. Payments will continue to be processed at company headquarters.

© SAP AG AC295 3-6

© SAP AG 2003

Demands Made on Partner Management

BP # 21Millie Wilson

Food for You, Inc.BP # 12

Differentiates between contact persons and firmsManages data related to both persons and organizationsManages relationships between business partners for specific time periodsPartner data supplies details on relationships with other partners

For example, function of contact person within a company

A history in the business partner master record shows all contractual relationships

May 1, 1999 – March 31, 2001Contact person in accounting

April 1, 2001 – Dec. 31, 9999Business Manager of Cafeteria

© SAP AG AC295 3-7

© SAP AG 2003

How Business Partner Data Is Managed in the System

Contractual Relationships

Existing Data Fields

Role

Category

Authorized person for Food for You, Inc. in the following contracts...

Lease-out, service contract (catering)

(Personal + official) communication data, form of address

Company address,payment data

Contact person for Food for You, Inc.

Master tenant w/ customer account,Partner w/ vendor acct

Natural personCompany, organization

In the system:

FoodFor You Inc.

FoodFor You Inc.

© SAP AG AC295 3-8

© SAP AG 2003

Functions Required of Partner Management

Organization

Company address

Person

Form of address

Home address

Communication Data:

Company phoneHome phone

Partner with Vendor Account Vendor Data

Contact PersonCommunication Data

Master tenant with customer account Customer Data,Payment Data

Business ManagerCommunication Data:AddressForm of address

Company phone

Service Contract

Contract

FoodFor You,

Inc.

FoodFor You,

Inc.

Certain information is entered dependent on the role or role category.

Relationships with people, companies, shared medical practices, tenants, employees, partners, customers, interested persons, competitors...

Data redundancies are avoided.

You enter information just once, regardless of how many different roles a business partner has in different processes.

High quality, consistency and reliability of data are ensured.

Addressing someone with the wrong name or title is not a promising start for successful contractual negotiations.

Sending letters to undeliverable addresses is a waste of time and money.

Providing the same information to a partner more than once is expensive and also is irritating to the partner.

Information on the relationships between persons or companies can be easily tracked.

Relationships, networks, influences, hierarchies

© SAP AG AC295 3-9

© SAP AG 2003

Central Functions of the Business Partner

Data for Persons, Organizations and GroupsYou can maintain different types of data for the business partner, depending on whether a person, organization or group (such as a shared practice) is involved.

Business Partner Relationships and HierarchiesYou can maintain the varied relationships between your business partners.

Configurability & AdaptabilityYou can easily modify business partner master records to meet your specific needs.

© SAP AG AC295 3-10

© SAP AG 2003

Create Business Partner (Procedure)

Process Contract, Partners tab

Button:

Choose Landlord withVendor Account

Process Business Entity, Partner tab

Button:

Choose Clerk

Maintain Business Partner

Button:

Choose Business Partner (General)

Menu/Buttons

NameBP categoryPayment data, etc.

Name, language, address data, country key

Form of address, first name, last name, language, postal code, country

Data Entry

Process lease-out: Create tenant

Process BE: Create RE specialist

Enter personal contactExample

Contract Management

Master DataBusiness Partner Management

Where?

Person

You can create a central business partner from various transactions, or you can create one directly in business partner management. Once a business partner has been created, you can assign it in the same role or a different one to other objects (real estate contract, master data).

From RE-FX – you first have to define which role categories/types are available for which transactions.

© SAP AG AC295 3-11

© SAP AG 2003

Business Partner Category

PersonNatural person

Personal data, for example

date of birth, marital status, home address

OrganizationEnterprise, subsidiary, ...

Data on the organization

GroupShared medical practice, condominium owners' association, executive board, ...

The business partner categories are: natural person, organization, group.

These categories are predefined in the system. It is not possible to add further business partner categories.

The business partner category is the term used to classify the business partner as a person, organization or group.

Before you can create a business partner, you have to choose the business partner category.

© SAP AG AC295 3-12

© SAP AG 2003

What Does the BP Category Determine?

RE specialist ?Master tenant w/ customer account ?Bank holding deposit

RE specialistMaster tenant w/ customer account ?Bank holding deposit ?

RE specialistMaster tenant w/ customer account ?Bank holding deposit

BP Category

Available BP Roles

- Available Fields

- Available Relationship Types

Once the BP is created, it is NO LONGER possible to change the BP category!

© SAP AG AC295 3-13

© SAP AG 2003

Business Partner Roles

Different RE processes require different BP data.Depending on the type of business process, different business partner data is needed; therefore, a BP can have more than one ROLE.

BP # 21Millie Wilson

Contact person

Service provider

Tenant

Freelancer

Prospective client

…

You can rename the standard business partner roles delivered by SAP.

You assign business partner roles to RE-FX in Customizing for Flexible Real Estate Management (transaction RECACUST). Choose:

Business Partner → Relevant Settings for Business Partner in RE Context → Business Partner Roles → Assignment of Roles to Real Estate Applications

Business transactions are the basis for determining the business partner role. The BP role also brings additional application-specific attributes to the business partner.

In effect, a role is a certain view of the business partner that is dependent on the business context.

You can create a business partner with more than one role. You only need to enter central data, such as name, address, and bank details, for the business partner once, regardless of the number of roles.

© SAP AG AC295 3-14

© SAP AG 2003

Business Partner Roles: Primary Roles

TR0600 Master Tenant with Customer Contract

TR0602 Landlord with Vendor Account

TR0603 Partner with Customer Account

TR0604 Partner with Vendor Account

You can change the standard name for each business partner role provided by SAP.

You can assign additional, existing roles to RE-FX.

© SAP AG AC295 3-15

© SAP AG 2003

Automatic Creation of Customers/Vendors

You can create customer and vendor accounts automatically:

Assign role:Assign 'customer' attribute:

......

Contract partnerContract partner

Master tenant w/ cust. acct

Master tenant

Roles:Customer?

Role Categories

ApplicationCustomizing

X

Customer is created automatically in

accounting

X

Contract – In the case of the 'tenant with customer account' or 'landlord with vendor account', you can automatically generate a customer or vendor in Accounts Receivable or Accounts Payable.

The customer or vendor is created automatically when you make certain settings in Customizing for Flexible Real Estate Management (transaction RECACUST). Choose:

Path: Business Partner → Relevant Settings for Business Partner in RE Context → Business Partner → Customer

If you specify that a role is for a customer or vendor in this Customizing step, then the system automatically creates the customer or vendor.

© SAP AG AC295 3-16

© SAP AG 2003

SAP Central Business Partner - Summary

What is a business partner in the SAP System?

Can be a person, an organization or a group

Contains central data such as name, address and bank details, related to persons, organizations or groups

Can have various roles, depending on the business process involved, for example, leasing in, leasing out, providing services

Each role may require special data, for example an area of responsibility for facility managers

Can have various relationships to other business partners, for example, 'has contact person,' 'takes part in'

Can automatically generate a customer or vendor master record in FI

© SAP AG AC295 3-17

© SAP AG 2003

Business Partner: Summary

You are now familiar with

The business partner category

The business partner role

Relationships between partners

Address management

and all the necessary settings

© SAP AG AC295 3-19

Exercises

Unit: Business Partner Master Data Topic: Create Business Partner

After completing this exercise you will be able to explain:

• Business partner roles

• Business partner relationships

You define an organization and a natural person as business partners and then link them together in a relationship.

You assign the organization to master data in Flexible Real Estate Management.

1 Create a partner in business partner management with the role of janitor. Define this partner with organization as the business partner category.

Enter a search term, name, address and details regarding communication.

Save this partner.

2 Create another partner in business partner management with the role of contact person. Define this partner with person as the business partner category. Enter a name, address and details regarding communication.

Use a relationship to define this business partner as the contact person for the janitor company that you already created. Save this partner too.

3 Assign the company to your administrative building in the usage view (1000/1##/1).

© SAP AG AC295 3-21

Solutions

Unit: Business Partner Master Data Topic: Create Business Partner

1 Create the Janitor as a business partner.

In the SAP Menu, choose: Accounting → Flexible Real Estate Management → Business Partner Master Data → Maintain Business Partner (BP)

Choose Organization.

Change the business partner role in the Create in Role field to Janitor.

Enter data of your choice in the Name, Search Terms, Standard Address and Communication fields.

Save this partner by pressing Ctrl + S or (Save).

2 Create business partner contact person.

In the SAP Menu, choose: Accounting → Flexible Real Estate Management → Business Partner Master Data → Maintain Business Partner (BP)

Choose Person.

Change the business partner role in the Create in Role field to Contact Person.

Enter data of your choice in the Name, Search Terms, Standard Address and Communication fields.

In the upper screen area, choose Relationships.

Change the Relationship cat. field to Is Contact Person For.

In the Relationship to BP field, assign the janitor company that you created earlier and press Enter.

Confirm the details screen that is displayed by choosing (Continue).

Save this partner by pressing Ctrl + S or (Save).

© SAP AG AC295 3-22

3 Link the business partner with the object. To start the RE Navigator, in the SAP Menu choose:

Accounting → Flexible Real Estate Management → RE Navigator → RE Navigator (RE80)

In the Navigation Area of the RE Navigator, change the display to My Objects and choose .

Expand the Building entry by pressing the icon on the left of the entry and double-click 1000/1##/1.

In the upper screen area, go to the Partners tab page and choose (Changes Between Display <-> Change).

Choose (Assign New Partner) and select Janitor.

Enter the data for your janitor and continue with .

Double-click your janitor and save your building by pressing Ctrl + S or (Save).

© SAP AG AC295 4-1

© SAP AG 2003

Contract Management

Contents:

RE Navigator

Lease-in process

Internal and external rental processes

Security deposit contracts

Contract types

Object assignment

Terms and conditions

Resubmission

Notice and renewal process

© SAP AG AC295 4-2

© SAP AG 2003

After completing this unit, you will be able to:

List and explain the individual steps of contract management

Assign rental spaces to contracts and maintain the most important contract data

Describe the role of the business partner in the rental process

Explain the relationship between condition types, condition groups and contract types and usage types

Explain the resubmission notice and renewal processes

Contract Management: Unit Objectives

© SAP AG AC295 4-3

© SAP AG 2003

Contract Management: Overview Diagram

Course Overview

Business Partner

Contract Management

Accounting



Master Data





Input Tax Treatment

© SAP AG AC295 4-4

© SAP AG 2003

Business Scenario: Processes for Leasing In and Leasing Out

You lease in a complete locality from an external landlordThe locality consists of a building and parking spacesYou lease out the building and parking spaces both internally and externally You hedge one of your contracts with a security deposit contractSome rental objects in the building are vacantYou create contracts to manage your rental relationships and maintain contract details

© SAP AG AC295 4-5

© SAP AG 2003

RE Navigator



Find ObjectResubmissionAppointment CalendarInformation System


Subordinate Objects

Address

Measurements


Pooled Spaces

Rental Units


1000/1000/11000/1000/21000/1000/3

Object Overview

Building


Processes such as entry of notice/renewal or resubmission can also be performed in the RE Navigator.

© SAP AG AC295 4-6

© SAP AG 2003

Contractual Relationships

Landlord(Vendor Contract)

Service Provider(Vendor Contract)

External Tenant(Customer Contract)

Internal RentalCost Center/WBS Element/Order (Internal Contract)

The contract type specifies the kind of processes you use the contract for:

Offering real estate or other services (offerer), or leasing real estate or using other services (user)

Processes for lease-out or lease-in (customer or vendor contract type)

Own use or third-party use, or a G/L account contract (internal contract, external contract, G/L account contract contract category)

The contract type specifies whether the contract is

External – the contract is limited to customer or vendor processes, such as leasing out externally or leasing in.

Internal – the contract can be used only for leases for your own use. This means the contract is with an organizational unit within your own enterprise. This can be a cost center, an order or a project. In the contract, you assign a cost center to each condition type.

G/L account contract – the contract is mainly used for periodic postings, such as accruals or deferrals. Posting is made to G/L accounts. The contract acts as an account assignment object for debits and credits. The postings can be distributed to the appropriate distribution object.

© SAP AG AC295 4-7

© SAP AG 2003

Livingroom

Bedroom1

Bedroom2

Scale1:75 Livingroom

Bedroom1

Bedroom2

Scale1:75

Overview: Contract

Real Estate objectsReal Estate objects

PartnersPartners

ProcessesProcessesProcesses

ACTIVATEACTIVATE

ContractContractContract

Signature Date

CorrespondenceCorrespondence

Periodic postingPaymentOpen item managementDunningManagement accounting for Real Estate

Contract termConditionsNotice/renewal of contractDate managementDistributionDocument management

When creating a contract, you first specify the contract type.

Then you specify the contract term. The term information includes the start and end dates of the contract, along with data on giving notice and on renewing the contract.

Next you assign the objects to the contract that are going to be leased in or leased out.

Rental can either be external or internal. You make this distinction in the posting parameters. For internal rental, you have to enter either a cost center, project or order. At the same time, you enter information on the payment method and dunning procedures to be used, and on payment of taxes.

For external rental, the main contractual partner you enter in the partner data needs to have the master tenant with customer account role. A customer account is created for this partner. It is used for handling all relevant postings.

You enter condition amounts per object assignment, and make specifications for posting.

You define the payment arrangements in the contract (payment method, form and frequency).

You can enter rules that are used for generating resubmission dates.

Once all your data is entered, you can activate the real estate contract. After the contract is activated, you can perform posting and other processes that are relevant for the contract.

© SAP AG AC295 4-8

© SAP AG 2003

Contract Types: Customer Contract

Contract type

Lease-outLease-out Company offers servicesCompany offers services

Object assignment

Periodicpostings

Special processes

Resubmission, term, notice, renewal, adjustment of conditions and correspondence must be maintained for all contract types

Lease-out contract Services offered

Rental units, rental spaces or object groups

All – BE, PR, BU, RO, ...

External: Receivables – incoming payments

Service charge settlement, option rates

At any one time, a rental object can only be assigned to one lease-out

RE-FX partnerAccounting partner

TenantExternal: Customer

Receiver of serviceExternal: Customer

Receivables – incoming payments

Multiple assignments possible

The contract types for an external customer contract is external contract and offerer.

Choose business partner with customer account as the contract partner.

External rental contracts have to be assigned to the contract reference “objects are leased-out,” so that these contracts will be interpreted as occupancy contracts and will not be rented out twice.

Only the rental objects “rental unit” and “rental space” can be assigned to these contract types. The assignment of multiple objects is possible.

External service contracts have different contract references, which are either “other reference” or “contract has no objects.” In this case the assigned objects are not occupied.

© SAP AG AC295 4-9

© SAP AG 2003

Contract Types: Vendor Contract

Company receives servicesCompany receives services

Lease-in contract Services received


External: Payables

At any one time, a rental object can only be assigned to one lease-in

Lease-inLease-in

LandlordExternal: Vendor

Service providerExternal: Vendor

Payables


Contract type

Object assignment

Periodicpostings

Resubmission, term, notice, renewal, adjustment of conditions and correspondence must be maintained for all contract types

RE-FX partner

Accounting partner

The contract type for an external vendor contract is external contract and user.

Choose business partner with vendor account as the contract partner.

Lease-in contracts have to be assigned the contract reference “objects are leased-in” so that the system can check to ensure that no new rentals (as sublets) are permitted beyond the lease-in period.

All permitted objects can be assigned to the contracts. The assignment of multiple objects is also possible.

External service contracts have different contract references, which are either “other reference” or “contract has no objects.”

© SAP AG AC295 4-10

© SAP AG 2003

Contract Types: Internal Rental

Assignment Number TextCost Center 1760 MarketingProject ...Order ...

Contract

Internal rent amounts

The following amounts will be charged to the relevant departments:

Dept Cost Center Amount

Marketing 1760 € 500Human Res. … …Facility Mgmt … ……

Organizationalassignment

Frequency

Postings

Posting parametersContract

You create internal contracts for use in-house. You do not enter a main contractual partner, but assign an organizational unit, such as a cost center.

An internal contract has contract type attribute internal contract.

A business partner is not needed as the contract partner. You must assign an organizational unit from your own company. This can be represented by a cost center, an order, or a WBS element.

© SAP AG AC295 4-11

© SAP AG 2003

Contract Types: Security Deposit Agreement

Basic rent: € 1,000 AP service charges

...

Hedging contract

Deposit amount: € 3,000

Security deposit contract

Calculation rule: Three times the basic rent ...

A security deposit contract is used to hedge an existing contract.

Conditions can be assigned to the security deposit contract that are calculated using a factor relating to the conditions of the hedging contract (for example, three times the basic rent).

You can compare the PLANNED deposit (the amount that should be paid as a security deposit) and the ACTUAL deposit (the amount that has been paid and when). This comparison is time-dependent.

If contracts are to be hedged by security deposit contracts, you enter the desired security deposit contract in the Customizing for the contract type.

© SAP AG AC295 4-12

© SAP AG 2003

Business Partner in Contract Management

ContractCreate new partner/Assign existing partner

Display business partner master data

Partner Overview

Partner Details

PartnersPartners

ABC Marketing / AddressRole Category Name

Master Tenant w/ Cust. AcctJanitor

Business Partner Name/Address

1032 Name/Address1753

BP Role

Business Partner

Start Relationship. End Relat.

Address Type

TR0600

1753 ABC Marketing

01/01/2000

Standard

The contract type determines which partner roles can be created in the contract.

AddressGeneral dataCompany code dataControl data

RelationshipPayment dataTax, financial, andlegal data

You assign your contractual business partners in the contract, in their relevant role, on the Partners tab page.

To process the business partner information, choose Business Partner Master Data. If you have the necessary authorization, you can change the master data of the partner there by choosing Change.

You can display the customer´s open and cleared items by selecting the Account pushbutton.

You can limit the number of business partner roles by contract type by excluding roles that are unnecessary for the contract type in Customizing. If you do not exclude any roles, then all existing business partner roles are available for all contract types (as in Classic RE).

For more information on business partner management, refer to the Business Partner Master Data unit and the documentation in the SAP Library.

© SAP AG AC295 4-13

© SAP AG 2003

Extracting Rental Spaces When Creating Contract

Contract(Commercial

Rental)

II.

Contract withassigned rental spaces

Office 25 m²Office 30 m²Office 40 m²

IV.

V.

III.

Pooled space with measurement type Office: 150 m²

Rental Spaces

Pooled space with measurement type Office: 55 m²

Office 125 m²

Office 230 m²

Office 340 m²

I.

During master data maintenance or contract creation, individual rental spaces can be extracted from a pooled space.

When the rental space is ended (for example, the associated contract is terminated), the previously extracted rental space is returned to the pooled space.

© SAP AG AC295 4-14

© SAP AG 2003

Object Groups

Office Space 1


TermTerm

Calculation object: Object groupCondition type: Basic rent - officeCondition purpose: Actual rentUnit price: EUR 20 per m²Valid from: 01/01/2000Valid to: ...

ObjectsObjects

Notice type: StandardNotice process: StandardObject assignment: Object group 1

Object type: Object groupText: Object group 'Office'Group number: 1Valid from: 01/01/2000Valid to: ...

Office Space 2

Parking GaragePk.Spaces

Objects assigned to the contractfor example, cost center for purchasing

ObjectGroup

PresentationRoom

Notice on Object

Object groups can only be created directly during contract processing. First you assign the individual rental objects (rental unit or rental space) to the contract on the Objects tab page. Then you form the object groups you need.

You can then define terms (such as a notice procedure) and conditions that are valid for the object group.

Distribution of costs and revenues to each individual object in this group should then be defined. A distribution to the object group is not possible.

You create terms only once, but they are then valid for all objects assigned to the object group. Changes must only be made to the object group and not to each individual object.

Example: You have assigned 10 rental areas of several pooled spaces to a contract. Each of these rental areas

have the condition types basic rent, operating costs advance payment, and heating expenses advance payment assigned to it. If the amounts of these conditions are identical for each measurement unit, you can reduce the number of conditions in the contract by forming one object group and only creating three conditions for it.

© SAP AG AC295 4-15

© SAP AG 2003

• Date• Business area• Profit center

• Frequency• Calculation method

• Pmt method...• Dunn.Area...• Bank...• Business Partner...• Tax...

Posting Parameters

Contract

Payment Terms

Payment method ...BankBank accountName

Rental Conditions

Basic office rent 1,000 per month

AP operating costs 1,500 per quarter

Org. Assignment

Frequency

Postings

Posting Parameters Contract

Condition typeBasic office rent

Condition typeAP operating costs

On the Posting Parameters tab page, you define time-dependent terms for posting, frequency and organizational assignments.

Since an indefinite number of rental objects can be assigned to a contract, you need to record certain agreements (posting rules) individually for the different objects.

You can define terms, such as posting rules and frequency of postings, so that you do not have to create them again and again for each object. Terms can be defined for the following: Postings (data about payment, taxes and dunning) Frequency (frequency and calculation method) Organizational assignment (profit center, business area)

Example: Two posting rules with different payment methods or tax rates. Two frequency clauses would be created for monthly and quarterly postings. Each of these terms is then assigned to the relevant condition type.

For every term category, a standard term is defaulted in contract and rental object processing. You can change these standard terms, but you cannot delete them from the table. The conditions are assigned automatically, and you can see this assignment on the Conditions sub-tab.

Choose Create Term to create different terms for each standard term. These different terms are numbered. They can be modified and deleted. For these terms you have to assign the conditions manually.

Choose New Date to create new time slots for the standard and user-defined terms. This means, for example, that if the payment method changes, you do not have to create a new posting term. Instead you enter the changed data in the existing term starting from the change date.

You can display the cash flow for the contract (payment-related cash flow) and the objects assigned to it (object-related cash flow) from the contract, once terms and condition amounts have been maintained.

© SAP AG AC295 4-16

© SAP AG 2003

Variable Due Dates

Rent: € 3,000

Contract

AP oper. costs: € 390

Flat-rate heating expenses: € 310

Due date correction rule Due on:

3rd working day of month

1st day of month

17th day of month

It is possible to "correct" the due date of conditions, for example so that the third working of the month, not the first day of the month, is always specified as the due date.

The due date can be changed to other days of the month, for example, to the seventeenth.

You define due date correction rules in Customizing and then assign them to the relevant contract or conditions of the contract using the frequency term.

Due date correction rules that have been predefined in Customizing can be changed in the contract.

© SAP AG AC295 4-17

© SAP AG 2003

Rental object – Kiosk

Conditions (market rent)- Basic rent 1500- AP operating costs 150

Object-related conditions(conditions that can be maintained on RO)

Rental object – Kiosk

Conditions (market rent)- Basic rent 1500- AP operating costs 150

Object-related conditions(conditions that can be maintained on RO)

Condition Types

DefaultConditions are passed on from object to contract

Default conditions in contract (IMG)

Actual rentActual rent

Market rentMarket rent

Vacancy rentVacancy rentCost rentCost rent

Condition PurposeCondition Purpose

Livingroom

Bedroom1

Bedroom2

Scale1:75 Livingroom

Bedroom1

Bedroom2

Scale1:75

Contract

Conditions (actual rent)

- Basic rent 2000

- AP Operating costs 150

- Parking spaces 45/ea

Contract-related conditions(Conditions that can be maintained on contract)

Conditions are required for periodic posting to real estate contracts.

The Periodic Posting function for real estate contracts posts the transactions that arise from the contract conditions. The contract type also influences periodic posting. Using the Periodic Posting function, you can post the amounts for each condition, either manually or automatically, as a credit or debit to the accounts of the contractual partners.

You can enter conditions on rental objects and on real estate contracts.

Conditions that have been entered on rental objects can be called up and assigned in the contract. These conditions are called default conditions, and you choose the Default Condition(s) function to access them on the contract. Or you can define proposed conditions in Customizing, and you can also assign these in the contract.

The condition purpose determines how and if a condition is taken into account during periodic posting.

You create the external condition purpose (vacancy rent, market rent, actual rent, and so on) and assign an internal condition purpose to it. The following internal condition purposes are supplied in Customizing in the standard system (they cannot be modified):

Posted – The condition is considered during periodic posting.

One-time posting – The condition is considered once during periodic posting.

Statistical and one-time statistical posting – The condition is not considered during periodic posting.

You specify in Customizing which condition purposes are permitted on the rental objects and rental contracts, and whether the purpose is transferable from object to contract.

© SAP AG AC295 4-18

© SAP AG 2003

Conditions

Condition TypeCondition Type

For example:

Basic rentAP operating costsFlat rate - elevatorRent reduction

…

ConditionsContract

• Unit price• Calculation formula• Measurement type/unit

• Postings• Frequency• Organizational assignment

• Authorization object• Calculation method• Condition Purpose• Valid from – Valid to• Unit price per Condition amount

Calculation

Terms

Condition

• Distribution formula• Area type/unit

Distribution

You assign the following data per condition:

Object (or object group) that the condition applies to

Condition purpose (market rent, cost rent, actual rent, and so on)

Validity period

Unit price

Data on the frequency of posting and organizational assignments is noted on the Posting Parameters tab page. The system automatically assigns the condition to the standard terms (Postings, Frequency, Organizational Assignment). If you want to assign a condition to a different term (not the standard term), you have to assign it manually.

For each condition you define calculation formulas. The system determines the condition amount by multiplying the unit price by the values from the calculation formula. The unit price is multiplied, for example, by the measurement in square feet, or the number of parking spaces. If you choose the calculation formula for measurements, you also have to enter the measurement type and measurement unit.

For each condition you also define distribution formulas. To ensure correct reporting for cost and revenue planning, you have to make sure that all costs and revenues on a contract that can be assigned to objects are actually posted to these objects.

Note: You create calculation formulas and distribution formulas in Customizing for Flexible Real Estate Management. Choose: Flexible Real Estate Management → Conditions and Flows → Calculation and Distribution Formulas

© SAP AG AC295 4-19

© SAP AG 2003

Dependent Conditions

Contract 1

Condition 1

Condition 210%

Contract B

Condition 1

Contract A

Condition 110%

Contract

Condition 1

Rentalobject 1

Condition 1

Amount from RO

Condition amounts can be calculated using defined rules that refer to other condition amounts.

Example 1: A rent reduction amounting to 10% of the basic rent should be defined in the contract.

Example 2: You have leased in an object. A condition amount of € 10,000 has been agreed in the contract. You want to sublease this object at a rate of 1.1 and agree conditions in the corresponding lease-out that relate to the condition of the lease-in.

Example 3: Twenty objects are assigned to one contract (for example, for internal rental). The conditions "Rent", "AP operating costs" and "AP heating expenses" should be defined for every object in the contract. As such, you can assign three conditions to this contract (rent, AP operating costs and AP heating expenses) with the calculation formula "reference to rental object condition." Therefore, there are only three conditions in the contract. The amounts are derived from the sum of the conditions of the corresponding rental objects.

© SAP AG AC295 4-20

© SAP AG 2003

Distribution Example

Office Rent: €700AP operating costs: €210

Office space 1(60 m²)


6060 + 140

Conditions

Basic office rent €1000 per monthAP operating costs €300 per quarter

Contract

14060 + 140

Distribution plays a role in reporting for costs and revenue. All costs and revenue that are entered on a contract, and which can be assigned to one or more objects, are

required to have account assignment to these objects.

DISTRIBUTION FORMULAMeasurement: Office SpaceOffice basic rent €1000 / MonthAP operating costs €300 / Month

DISTRIBUTION FORMULADISTRIBUTION FORMULAMeasurement: Office SpaceOffice basic rent €1000 / MonthAP operating costs €300 / Month

Office Rent: €300AP operating costs: €90

Distribution formulas define how costs and revenues, which are first posted to the contract as account assignments relevant to cost accounting, should be distributed to receiver objects.

The following internal distribution formulas are supplied:

Measurement

Divided equally

Area

Object (business entity, property, building, rental object, real estate contract)

The “divided equally” distribution formula is useful, for example, if an object group is assigned to the condition and the condition amount is to be divided equally among the objects according to the area ratio.

In Customizing, you can preassign a distribution formula for each condition within a condition group, so that the manual maintenance is no longer required. Changes can nevertheless be made at any time.

© SAP AG AC295 4-21

© SAP AG 2003

2nd Floor

1st Floor

Building East

3rd Floor

Contract

Contracts in the System Just Like in Real Life

Parking Garage

IIIIV

II

V

I

Tenant: Purchasing Cost CenterObject Group – Offices:2nd Floor – East 500 m²3rd Floor – West 500 m²

1,000 m²At 15 € / m²: 15,000

Pres. Space – East 200 m²At 15 € / m²: 3,000Pk. spaces in parking garage:40 parking spacesAt 40 € / pk. space 1,600Total rent: 19,600

Example: Rental Process (lease-out)

Contracts can include as many objects as required, even objects in different buildings.

Similar to conventional contract design (especially in commercial rental)Replaces collective lease-out

2nd Floor

1st Floor

Building West

3rd Floor

In our business scenario the Purchasing department (cost center) rents office space in Building East and in Building West. In addition to this it also rents presentation space on the top floor of Building East, and 40 parking spaces from the parking garage. This example shows how you can assign various objects from different buildings, on different floors or properties to one contract.

You can group rental objects belonging to the same category together in object groups and assign the corresponding conditions to these object groups.

© SAP AG AC295 4-22

© SAP AG 2003

Contract Life Cycle

Review/MonitorReview/Monitor

CreateCreate

ChangeChangeTerminateTerminate

Create contract

Activate contract

Change contractdetails/terms

Change contractconditions

Change partner assignment

Contractrenewal

Notice

Rent adjustment

Service chargesettlement

Rental objectinspection

Release rental collateral

Create correspondenceClear open items

Collect rental charges Review dates & terms

Amend space& update details

© SAP AG AC295 4-23

© SAP AG 2003

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, monthFiguresBoolian values

Date, year, monthFiguresBoolian values

Change statusDefine filterCreate/change memoDelete memo

Change statusDefine filterCreate/change memoDelete memo

All contracts (like all objects) can be assigned resubmission rules.

Resubmission reasons can be freely defined in Customizing and can be used as evaluation criteria.

You can carry out the resubmission process using a list.

The dates are set automatically in the SAP appointment calendar.

Synchronization with Microsoft Outlook is also possible.

© SAP AG AC295 4-24

© SAP AG 2003

Overview of Resubmission in the RE Navigator

Resubmission rules can be created for the following object types:

• Architectural object• Business entity• Property• Building• Rental object• Real estate contract

Plant Maintenance Link to Architecture Assignment to Contract Resubmission

Parameter

ID Resubmission Rule Resub. Rsn Name End Date

Status Date ID Resub. Rsn Name Done Days Fix Memo

One-Time Occurrence on 01.08.2003 Check LocationAs of 08/02/2003 every 10 months

Gen. ResubmissionOne-Time Occurrence on 19.05.2003Gen. Resubmission

Gen. ResubmissionGen. ResubmissionGen. ResubmissionGen. Resubmission

• Create resubmission rule• Define parameters

• Create and edit resubmission dates

• Change date properties• Set date to completed• Update date flow• Create memo• Display user data

The resubmission function acts as a reminder where action may be needed on contracts you are processing.

You can enter reasons for the resubmission in Customizing. These are for informational purposes only. Examples of resubmission reasons could include notice processing, renew contract, check location, contact partner, and so on.

Additional rules and parameter logic can also be defined in Customizing.

© SAP AG AC295 4-25

© SAP AG 2003

Contract Renewal

SettingsRenewal / Option / User-definedOwn approval requiredPartner's approval required

SettingsRenewal / Option / User-definedOwn approval requiredPartner's approval required

DateNew contract end date

DateNew contract end date Report

Renewal dataRenewal data

Individualprocessing

Example:"No renewal""Any number of times by one year"

Renewal RulesRenewal Rules

Renewal rules are defined for contracts with a fixed term.

a) Option: For an option to become effective, the contractee must give a written statement to this effect. The contractor then has to activate the option in the system.

Go to the navigation area. In the hierarchy of contract data, expand the Processes node. You activate the options by choosing Renew.

b) Renewal: For automatic renewals, there is no need to enter approval or to activate the renewal. If the renewal should not be implemented, it has to be refused in writing by the contractee or contractor.

Renewal refusals that result in a contract termination are handled in the Give Notice process.

Once a contract has been renewed, a new end date is calculated and updated on the contract.

You can create a long text for each renewal procedure in Customizing. You can call up this text in the application. In the case of individual renewal rules, you can create individual text valid for the particular contract. These texts can be printed with the contract.

Options and automatic renewal can be maintained in parallel. For example, the following rule can be entered: “You have the option of renewing the contract twice by X months. If you do not use this option, the contract will automatically be renewed by 12 months.”

© SAP AG AC295 4-26

© SAP AG 2003

Contract Renewal

Without fixed term(No renewal rule in contract)Without fixed term

(No renewal rule in contract)With fixed term

(Renewal rules in contract)With fixed term

(Renewal rules in contract)

Renewal Rules in Contract

Renewal Rules in Contract

AutomaticAutomatic OptionOption

AutomaticRenewal

You can define both kinds of renewal rules on ONE contract, for example, two OPTIONS and one RENEWAL.

In such cases, the OPTIONS always take precedence over the renewal.

Accepted by contractee in writing before effective date

New automatic renewal rules

New automatic renewal rules

One or more repetitions

Repetition of last rule

Unlimited after this point

You specify the rules for renewal of real estate contracts. There are two types of contracts in this respect: Without fixed term (no renewals, since there is no defined contract end) With fixed term (renewal rules are defined)

There are two variants of renewal rules: Renewal (automatic): Renewals define how the contract term is extended after the contract end is reached, for example, by one year. In contrast to options, renewals always take effect automatically. If the renewal should not be implemented, it has to be refused in writing by the contractee (such as the tenant) or contractor (such as the landlord).

Option: The contractee has the option of renewing the contract while keeping the existing conditions. For an option to become effective, the contractee must give a written statement to this effect. When there is more than option, each one has to be accepted in writing individually. The acceptance of the option results in the extension of the contract term. If the date for the acceptance passes without this express statement being made in writing, then all subsequent options for the contract are also invalid.

New Renewal Rules: When you create a renewal, you can choose from three different types of automatic renewal rules: One or more repetitions (for instance renewal of three years with a period of six months for submitting rejection)

Repetition of last rule - for instance, the contract is extended repeatedly by 1 year, with a 6 month period for submitting rejection.

Unlimited after this point - for instance, after the contract end date or the acceptance of prior options and renewals, the contract changes over to an unlimited term, and notice can be given according to the notice rules of the notice procedure.

© SAP AG AC295 4-27

© SAP AG 2003

Renewal Process

Approval Activation

Correspondence

RenewRenew

Option/automaticEnd of last contract: Nov. 30, 2002End of next contract: Nov. 30, 2007Approved/rejected:Decided on:

Reason for rejection

Rejection

Contract: New end date

Simulate renewalSimulate renewal

Reverse

Correspondence

Define renewal ruleDefine renewal rule

You use this function when a renewal option is to be exercised.

The new contract end date is calculated according to the relevant renewal rule entered in the contract when the renewal was created.

You must enter whether the renewal needs to be approved and when this decision must be taken.

If the decision is in favor of renewal, activate the renewal. This activation can be reversed.

When the renewal has been activated, the new contract end date is displayed on the Term tab page of the contract.

© SAP AG AC295 4-28

© SAP AG 2003

Notice Rules for Contracts

Additional tools:MemoSimulate notice dates

Notice

Notice Procedure

Renewal

Term

TermContract

Term and Conditions

Contract

Procedure description incl. correspondence

Notice rule 2

Party

Party

Notice rule 1

Term…

Renewal…

NoticeLandlord:graduated notice period ...

Tenant:3 months, for end of month …

You enter data for giving notice and for processing notice periods in the contract.

Notice procedures: You can enter notice procedures with multiple notice rules. This is useful, for example, in order to be able to enter different notice rules for the contractee and the contractor in the same contact.

You can assign a Standard Notice Procedure (defined in Customizing), or define individual notice procedures in the contract itself.

The notice procedure contains one or more notice rules (period regulations or deadline regulations). These are also defined for the contractee, contractor or both parties in the contract.

Notice rules: A notice rule is either a period regulation or a deadline regulation.

You can combine a period regulation and a deadline regulation for the same party in one contract. The deadline regulation defines extraordinary notice possibilities.

Additional options:

You can Simulate Notice. The next possible notice date is highlighted.

You can create an internal memo for the notice.

You can create a description for each notice procedure. For standard notice procedures, you enter the texts as a text module in Customizing.. In the case of individual notice procedures, you can create individual text valid for the particular contract.

These texts can be printed with the contract.

© SAP AG AC295 4-29

© SAP AG 2003

Term and Conditions

Contract

Term…

Renewal…

NoticeOfficeStandard Notice Procedure

Parking LotIndividual Notice Rule

Notice Rules for Objects and Object Groups

Object assignment: Parking lots

Notice Procedure

Notice rule 2

Party

Party

Notice rule 1

TermContract

Notice on Objects

Renewal

Term

The process for Notice on Objects is the same as that for notice on a contract.

You can assign different notice procedures to different objects in the contract.

When notice is received for a contract, the end date for the contract is calculated.

When notice is received for a particular object (or object group), the valid-to date on the object (or object group) is adjusted. The object (or object group) is no longer assigned to the contract after the valid-to date.

The contract and its other object assignments are still valid. There is no change to the contract end date.

© SAP AG AC295 4-30

© SAP AG 2003

Notice Terms

Time up to date onwhich notice takes effectPeriods Deadlines Date on which notice

takes effect

Periods of Notice

Individualdeadline regulation

Individualperiod regulation

Standard Notice Procedure(defined in Customizing)

Individual Notice Procedure(you define in contract)

Standarddeadline regulation

Standardperiod regulation

No period of notice

You have the following options for creating notice procedures on contracts:

No Period of Notice

Standard Notice Procedure (Customizing)

Individual Notice Procedure (defined on the contract)

Standard and individual notice procedures consist of notice rules, which are either period regulations or deadline regulations.

You can use a period regulation for periodic notice rules (month end, quarter end, half year end, year end). For example, the notice period is 6 weeks before the end of the quarter.

Notice Per Notice Weeks

End of Quarter

You can use a deadline regulation for specific dates that are also periodic. For example, the notice period is three months per March 31 and September 30 (two opportunities every year). Notice must be received by the third working day of the following month. For example:

Notice Month Notice Day Received Month Grace Day Calendar or Business Day

3 31 12 3 Business Day

9 30 6 3 Business Day

© SAP AG AC295 4-31

© SAP AG 2003

Notice Process

Approval Activation

Correspondence

Create & Process NoticeCreate & Process Notice

Entry date: 08/14/2002Calculated notice: 11/30/2002Notice per: 11/30/2002Notice reason: Restricted useNotice given by: ContracteeApproval date:Rejected date:Activated on:

Reason for Rejection

Rejection

Contract End Date

Simulate NoticeSimulate Notice

Reverse

Correspondence

Enter Notice RuleEnter Notice Rule

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

The effective notice date is calculated, according to the relevant notice rules entered in the contract, when the notice is created.

You must enter a notice reason when notice is given. The notice reason also contains a record of whether notice was given by the contractee or contractor. If different notice procedures are maintained for contractee and contractor in the contract, this reason specifies which procedure will be carried out.

You can also enter reasons for the rejection as additional information. In case of rejection, the notice cannot be activated.

Notice can only be given on active contracts.

An approval date can be entered on the notice, when the tenant or the landlord agrees to the notice.

When the notice is activated, the contract end date is displayed on the Term tab page of the contract.

© SAP AG AC295 4-32

© SAP AG 2003

Special Services:Create Attachment

Display Attachment List

Send Private Note

Send Object with Note

Workflow (overview, start, archived...)

Document Management and Archiving

Correspondence – master data summary, general letter, one-time correspondence

Special Functions:Activate

Set/Reset Lock – Master Data or Account Assignment

Set/Remove Deletion Flag

Additional Functions

© SAP AG AC295 4-33

© SAP AG 2003

User exit usingBTE with any

rules

Number Range with

Customizing – Number Assignment

Manual entry by user

Automaticassignment

Internal number assignment(sequential numbers)

External number assignment

© SAP AG AC295 4-34

© SAP AG 2003

Customizing – Contract Type

Lease-inLease-outPurchaseSaleServiceInternal…

Purpose

Contract CategoryInternalExternal

Offerer/UserSpecific to company code:

Offers objects or servicesUses objects or services

Contract ReferenceContract has no objectsObjects are leased-inObjects are leased-outObjects are managedOther reference

Partner ManagementMain business partner 1Main business partner 2

Object GroupsStart numberNumber interval

Number rangeInterval

Contract Type

The contract type controls the purpose the contract is used for. Possible purposes include:

Lease-in – Lease-out – Service contract

The contract type determines how the contract behaves in individual processes. Influencing factors include:

Contract category – external contract, internal contract or G/L account contract

Offerer/user field – Specifies, from the point of view of the company code in which the contract is created, whether objects or services are being offered or being used.

Contract reference – If you choose Objects Are Leased-Out in this field, then you can only assign object groups and rental objects to the contract in the user dialog. This applies regardless of which object types (building, rental object, business entity, and so on) you assigned to the contract type in the Object Types Permitted for Contract Type IMG activity.

In Partner Management you specify one or two roles for the main business partner. You cannot activate a contract until it has exactly one business partner with this role at one time.

Specify how numbers for object groups should be automatically generated.

You specify the number range interval that provides the numbers for this contract type.

The most important parameters for a new contract type are the contract category, offerer/user ID, and the contract reference. Since certain default values (condition group, option rate method) depend on the contract type, it can be useful to create different contract types for commercial contracts and residential contracts, for example. There is not yet an assignment of allowed usage types to the contract type in this release, but it is planned for occupancy contracts. With this in mind, it makes sense to distinguish between residential and commercial contract types.

© SAP AG AC295 4-35

© SAP AG 2003

Customizing – Condition Type and Condition Group

Condition typeCondition type

For example:

Basic rentAP operating costsFlat rate - elevatorRent reduction

…

Usage type ofrental object

Contract type

For example:

Commercial lease-outResidential lease-outNon-occupancy contract

Condition groupfor objects

Condition groupfor contracts

For example:

Contract (commercial)Contract (residential)Contract (parking/garage)…

For example:

Rental object (commercial)Rental object (residential)Rental object (parking/garage)…

For example:

Office, store, warehousePrivately-financed apartmentGarage (private), garage (commercial), car park area…

You can maintain individual condition types in Customizing.

Condition types must then be assigned to condition groups, which are in turn permitted for the corresponding usage type. Thus, you can specify permitted condition types for each usage type.

© SAP AG AC295 4-36

© SAP AG 2003

Contract Management: Summary

You are now able to

List and explain the individual steps of contract management

Assign rental spaces to contracts and maintain relevant contract data

Explain the relationship between condition types, condition groups and contract types and usage types

© SAP AG AC295 4-37

Exercises

Unit: Contract Management Topic: Creating Contracts, Entering Notice,

Performing Renewals and Resubmissions


• List and describe the steps required for contract management

• Link rental spaces to the contract and enter all required data

You create and maintain numerous, varied contracts with your business partners:

• Lease-in for the whole locality

• Lease-out with external tenants

• Lease-out with the organizational units of your company

• Security deposit contract to protect a rental

Start the RE Navigator.

1 Create a real estate contract of the type commercial lease-in.

In the Company Code field, enter 1000, in the Tenancy law field, select German tenancy law, and enter a Name for your contract.

Create a partner for your contract with the role of landlord with vendor account. The business partner type for the landlord should be organization.

Assign a name, search term, address and communication data. In the company code data, enter domestic payments as the planning group.

Enter a contract start date of 01.01.[last year] and a term of 120 months. Assign standard renewal rule 1200.

Assign business entity (1##) to your contract.

On the Posting Parameters tab page, for Organizational Assignment assign business area 9100 (Real Estate) and profit center 1480 (RE Real Estate Others).

Define the following conditions:

Condition Type Calculation Formula

Unit Price

Distribution Formula

Basic rent Com. Space m2 24,70 € Determined automatically

AP service charges

Fixed amount 13.700,- € Determined automatically

Define resubmission rule Before Notification of Renewal Option with 2 months.

Save your contract.

© SAP AG AC295 4-38

2 Create a real estate contract of the type commercial lease-out.


Create a partner for your contract with the role of master tenant with customer account. The business partner type for the tenant should be organization.

Assign a name, search term, address and communication data.

Enter a contract start date of 01.01.[last year] and the standard notice rule 1100.

For your lease-out, assign rental space Office_01 – 650 m2 and then extract 7 parking spaces from the pooled space for parking spaces. Assign the name 7 parking spaces for the new rental space.

On the Posting Parameters tab page, for Organizational Assignment assign business area 9100 (Real Estate) and profit center 1480 (RE Real Estate Others). Change the due date of the conditions to the third working day of the month..

Copy the default conditions from the assigned rental objects.

Define a periodically recurring resubmission rule with resubmission reason 20 (Check Location).

Save your contract.

3 Create a real estate contract of the type residential lease-out.


Create a partner for your contract with the role of master tenant with customer account. The business partner type for the tenant should be person.


Enter a contract start date of 01.02.[last year] and the standard notice rule 2000.

Assign the janitor’s apartment to your lease-out and then extract 1 more parking space from the pooled space for parking spaces. Assign the name 1 parking space for the new rental space.

On the Posting Parameters tab page, for Organizational Assignment assign business area 9100 (Real Estate) and profit center 1480 (RE Real Estate Others). Change the due date of the conditions to the third working day of the month..

Copy the default conditions from the assigned rental objects.

Save your contract.

© SAP AG AC295 4-39

4 Create a real estate contract of the type internal lease-out.

In the Company Code field, enter 1000, then specify a Name for your contract.

Define 01.01.[last year] as the contract start date.

Extract 550 m2 office space from the ground floor (called Office02 – EG), 200 m2 office space from the first floor (called Office01 – 1.OG) and then 8 parking spaces (called 8 parking spaces) from the pooled space for parking spaces.

Group the two office spaces together and call this object group Entire office space.


Enter 2200 as the cost center that is leasing in.

Copy the default conditions for parking space rental and assign the following conditions for your object groups:


Unit Price


Office basic rent Com. Space m2 23,50 Determined automatically

Flat-rate operating costs

Com. Space m2 4,80 Determined automatically

View the distribution formula that was determined automatically.

Save your contract.

5 Create another real estate contract of the type internal lease-out.

In the Company Code field, enter 1000, then specify a Name for your contract.


Extract 750 m2 office space from the first floor (called Office02 – 1.OG) and then 6 parking spaces (called 6 parking spaces) from the pooled space for parking spaces.


Enter 2100 as the cost center that is leasing in.

Copy the default conditions for basic rent and parking space rental. Assign the following conditions for your office space:


Unit Price


Flat-rate operating costs

Com. Space m2 4,80 Determined automatically

Save your contract.

© SAP AG AC295 4-40

6 Create a real estate contract of the type commercial security deposit.

In the Company Code field, enter 1000 and enter the contract number of your external commercial lease-out as the hedging contract.

Define Bank Guarantee as the Security Deposit Type.

Assign a bank as a partner to this security deposit contract.

For the condition type, define Calculated Security Deposit with <K> (security deposit) as the Condition Purpose. The security deposit amount should be double the sum of all the condition amounts of the hedging contract.

Save your contract.

7 Activate your contracts in the automatically generated worklist, by selecting them and setting their status to active.

8 Create notice in the RE Navigator (in the future) for your residential contract. In this case, the tenant’s notice is submitted on today’s date. The reason for notice is limited use of the rented space. You approve the notice, then activate and save it. View the term data for this contract.

9 Start the resubmission process to check the validity period of your lease-in and renew it. Start the RE Navigator. Change the automatic filter to All Dates. Select the object ID of your lease-in with Resubmission Reason Check renewal option. Transfer the contract to the Navigation Area and execute the renewal process. Then, set the renewal to completed.

© SAP AG AC295 4-41

Solutions

Unit: Contract Management Topic: Creating Contracts, Entering Notice, Performing

Renewals and Resubmissions

To start the RE Navigator, in the SAP Menu choose: Accounting → Flexible Real Estate Management → RE Navigator → RE Navigator (RE80)

1 Create a real estate contract of the type lease-in.

In the RE Navigator, change the display to My Objects.

Select the Real Estate Contracts entry, then click the right-hand mouse button and choose Create → Commercial lease-in.

Enter 1000 in the Company Code field.

Enter a text in the Contract name field.

In the Tenancy law field, choose German tenancy law from the dropdown list.

Go to the Partners tab page, choose (Assign New Partner) and select Landlord w.Vendor Account. Enter a name, address and search term, then continue with . Because no partners were found, create a new landlord by choosing Organization.

Choose Company Code. On the Account Management tab page, in the Planning group field, enter A1 (domestic payments).

Go back to the contract entry screen by choosing .

Go the Term tab page and enter 01.01.last year in the Contract start date field and enter 120 in the Term in months field.

Create a renewal rule by choosing and then selecting Renewal. Enter 1200 in the Renewal Rule field.

Go to the Objects tab page, choose (Insert object(s)) and double-click Business entity. In the selection screen, enter the number of your business entity (1##), confirm with , select the proposal and copy your business entity by choosing again.

Go to the Posting Parameters tab page, in the upper screen area, select the Organizational Assignment row and then enter 9100 in the Business Area field and 1480 in the Profit Center field.

© SAP AG AC295 4-42

Go to the Conditions tab page and choose (Insert Condition(s)). Select the entries V100 (Credit side basic rent) and V105 (Adv. Pmnt Service charges) and continue with .

© SAP AG AC295 4-43

Enter 13,700.00 as the Unit Price for the AP service charge condition type.

In the upper screen area, select the Credit basic rent line. Enter 24,70 as the Unit Price and change the Formula field to Com. Space m2.

Go to the Resubmission tab page, choose (Create Resubmission Rule) and select Before Notification of Renewal Option.

In the Number of Months field, enter 2, then continue with .

Save your contract by pressing Ctrl + S or (Save).

2 Create a real estate contract of type commercial lease-out.

Select the Real Estate Contracts entry, then click the right-hand mouse button and choose Create → Commercial lease-out.




Go to the Partners tab page, choose (Assign New Partner) and select Master Tenant w.Cust.Acct. Enter a name, address and search term, then continue with . Because no partners were found, create a new landlord by choosing Organization.


Go the Term tab page and in the Contract start date field, enter 01.01.last year.

Create a notice rule by selecting the Notice line in the upper screen area. Change the entry in the Notice Type field to Standard Notice Procedure and enter 1100 in the Notice Procedure field.

Go to the Objects tab page, choose (Insert object(s)) and double-click Rental Object. In the selection screen, enter the number of your business entity (1##), continue with , select the rental object Office_01 – 650 m2, then transfer your rental space by choosing (Copy).

To extract the 7 parking spaces, choose (Extract Rental Spaces) and enter the following data:

Field Content

CoCd/BE 1000 / 1##

UsageType 10

MeasType M005


Amt Wanted 7

© SAP AG AC295 4-44



In the list that is displayed, double-click the text <new 1> and, in the lower screen area, enter 7 parking spaces.


Go to the Posting Parameters tab page, in the upper screen area, select the Organizational Assignment row and then enter 9100 in the Business Area field and 1480 in the Profit Center field. In the upper screen area, select the Frequency line and enter 3 (third working day) in the Due Date (+/-) field.

Go to the Conditions tab page and choose (Default Conditions(s)), select all entries, then transfer them with .

Go to the Resubmission tab page, choose (Create Resubmission Rule) and select As of date … every … months. Change the Resubmission Reason to 20 (Check Location), then assign a Start Date (for example, 24.12.year) and an Interval in Months (for example, 12). Choose to continue.


3 Create a real estate contract of the type residential lease-out.

Select the Real Estate Contracts entry, then click the right-hand mouse button and choose Create → Residential lease-out.




Go to the Partners tab page, choose (Assign New Partner) and select Master Tenant w.Cust.Acct. Enter a name, address and search term, then continue with

. Because no partners were found, create a new landlord by choosing Person.



Create a notice rule by selecting the Notice line in the upper screen area. Change the entry in the Notice Type field to Standard Notice Procedure and enter 2000 in the Notice Procedure field.

Go to the Objects tab page, choose (Insert object(s)) and double-click Rental Object. In the selection screen, enter the number of your business entity (1##), confirm with , select the rental object janitor apartment and copy your rental unit by choosing .

© SAP AG AC295 4-45

To extract the parking space, choose (Extract Rental Spaces) and enter the following data:

Field Content

CoCd/BE 1000 / 1##

UsageType 10

MeasType M005


Amt Wanted 1



In the list that is displayed, double-click the text <new 1> and, in the lower screen area, enter 1 parking space.


Go to the Posting Parameters tab page, in the upper screen area, select the Organizational Assignment row and then enter 9100 in the Business Area field and 1480 in the Profit Center field. In the upper screen area, select the Frequency line and enter 3 (third working day) in the Due Date (+/-) field.

Go to the Conditions tab page and choose (Default Conditions(s)), select all entries, then transfer them with Fehler! Textmarke nicht definiert..


4 Create a real estate contract of the type internal lease-out.

Select the Real Estate Contracts entry, then click the right-hand mouse button and choose Create → Internal lease-out.



To extract the office spaces, choose (Extract Rental Spaces) and enter the following data:

Field Content

CoCd/BE 1000 / 1##

UsageType 5

MeasType A101


Amt Wanted 550


© SAP AG AC295 4-46

Double-click the line with pooled space 1 (ground floor). This line represents the pooled space found. Assign the other measurements by choosing next to the text Distrib. Other Measurements.

In the list that is displayed, double-click the text <new 1> and, in the lower screen area, enter Office02 -EG.

In the left-hand screen area, change the entry in the Amt Wanted field to 200 m2 and choose Perform Search to run another search.

Double-click the line with pooled space 2 (first floor). This line represents the pooled space found on the first floor. Assign the other measurements by choosing

next to the text Distrib. Other Measurements.

In the list that is displayed, double-click the text <new 2> and, in the lower screen area, enter Office01 – 1.OG.


Select the two new rental areas on the left-hand side and choose (Group Object(s)), then in the lower screen area, enter Entire office space in the Object Group field.

To extract the office spaces, choose (Extract Rental Spaces) and enter the following data:

Field Content

CoCd/BE 1000 / 1##

UsageType 10

MeasType M005


Amt Wanted 8


Double-click the line with pooled space 3 (parking spaces). This line represents the pooled space found.


Transfer the new rental space by choosing in the bottom left corner.

Go to the Posting Parameters tab page, in the upper screen area, select the Postings line and enter 2200 in the Cost Center field. In the upper screen area, select the Organizational Assignment line and enter the value 9100 in the Business Area field and 1480 in the Profit Center field.

Go to the Conditions tab page and choose (Default Conditions(s)), select the condition of the parking spaces and copy your entries with

Fehler! Textmarke nicht definiert..

© SAP AG AC295 4-47

Choose (Insert Condition(s)) and double-click the line containing Object group. Select entries 11 (Office basic rent detail) and 30 (Operating costs flat rate), then confirm your selection with (Copy). Expand the details view by choosing in the lower screen area.

Enter 23,50 as the Unit Price and change the Formula field to Com. Space m2.

In the upper screen area, select the OC flat rate line. Enter 4,80 as the Unit Price and change the Formula field to Com. Space m2.


5 Create a second real estate contract of the type internal lease-out.

Select the Real Estate Contracts entry, then click the right-hand mouse button and choose Create → Internal lease-out.



To extract the office space, choose (Extract Rental Spaces) and enter the following data:

Field Content

CoCd/BE 1000 / 1##

UsageType 5

MeasType A101


Amt Wanted 750


Double-click the line with pooled space 2 (first floor). This line represents the pooled space found. Assign the other measurements by choosing next to the text Distrib. Other Measurements.

In the list that is displayed, double-click the text <new 1> and, in the lower screen area, enter Office02 – 1.OG.

In the left-hand screen area, change the entry in the UsageType field to 10, the MeasType field to M005, and Amt Wanted field to 6, then choose Perform Search to run another search.



© SAP AG AC295 4-48

Go to the Posting Parameters tab page, in the upper screen area, select the Postings line and enter 2100 in the Cost Center field. In the upper screen area, select the Organizational Assignment line and enter the value 9100 in the Business Area field and 1480 in the Profit Center field.

Go to the Conditions tab page and choose (Default Conditions(s)), select the entries for office basic rent and parking lot rental, then transfer them with

Fehler! Textmarke nicht definiert..

Choose (Insert Condition(s)) and double-click the line containing Office. Select entry 30 (Operating cost flat rate) and confirm your selection by choosing (Copy). Expand the details view by choosing in the lower screen area.

In the upper screen area, select the OC flat rate line. Enter 4,80 as the Unit Price and change the Formula field to Com. Space m2.


6 Create a real estate contract of type commercial security deposit.

Select the Real Estate Contracts entry, then click the right-hand mouse button and choose Create → Commercial security deposit.


In the Contract Number field, enter the number of your commercial lease-out and continue with .

In the Sec. Dep. Type field, select Bank Guarantee from the dropdown list.

Go to the Partners tab page, choose (Assign New Partner) and select Guarantor. Enter a name, address and search term, then continue with . Because no partners were found, create a new guarantor by choosing Organization.


Go to the Conditions tab page and choose (Insert Condition(s)). Select D010 (Calculated Security Deposit) and continue with (Copy).

In the lower screen area, change the entry in the Cond. Purpose field to <K> (security deposit) and go to the Calculatn tab page also in the lower screen area.

Change the Condition Group to Customer Contract - Commercial.


© SAP AG AC295 4-49

7 Activate the contracts. In the Navigation Area of the RE Navigator, change the display to Worklist and choose (Display)

Expand the Non-Active Contracts entry by pressing the icon on the left of the entry.

Select all contracts - except the security deposit contract – by pressing the left-hand mouse button and the shift key on your keyboard.

Hold the shift key down and press the right-hand mouse button.

Choose Change Status → Activate.

8 Enter notice in the RE Navigator (in the future) for your residential contract. In the RE Navigator, change the display to My Objects and choose (Display).

Expand the Real Estate Contracts entry by pressing the icon on the left of the entry.

Double-click the line with your residential lease-out, then choose (Display Object List in Navigation Area) in the upper screen area.

Expand the Processes entry by pressing the icon on the left of the entry and double-click Give Notice.

To enter a notice, choose (Changes Between Display <-> Change) and then (Create Notice). Select Give Notice on Contract.


Field Content

Entry Date Today's date

Reason for Notice 2

Approved on Today's date

Choose (Activate Selected Notice) and save your notice by pressing Ctrl + S or (Save).

Go to the Term tab page.

© SAP AG AC295 4-50

9 Start the resubmission process to check the validity period of your lease-in and renew it.

First, start the resubmission process by choosing Resubmission in the upper area of the RE Navigator.

Choose (Limit Date Display) and change the filter to All Dates.

Select the object ID of your lease-in with Resub.Rsn Check renewal option, then choose (Display Object List in Navigation Area).

Expand the Processes entry by pressing the icon on the left of the entry and double-click Renew.

To enter a contract renewal, choose (Changes Between Display <-> Change).

In the Ap/R (Approved/Rejected) field, select Approved. Refer to the Notif. By date for the Decided On field.

Choose to activate the contract renewal.

Go to the Resubmission tab page, select the first option, then choose to mark the renewal as being completed.

Save your renewal by pressing Ctrl + S or (Save).

© SAP AG AC295 5-1

© SAP AG 2004

Content:

Periodic Posting for Contract (Customer and Vendor Views)

Periodic Posting for Rental Object (Vacancy)

Account Determination

Cash Flow Update

Payment, Dunning, Open Items List

Accounting

© SAP AG AC295 5-2

© SAP AG 2003

Accounting: Unit Objectives

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

Explain the different types of periodic posting

Call and update partner-related and object-related cash flows

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

List the options for manual and automatic incoming payments

Explain the requirements for dunning and the process involved

© SAP AG AC295 5-3

© SAP AG 2003

Accounting: Overview Diagram

Course Overview

Business Partner

Contract Management

Accounting



Master Data





Input Tax Treatment

© SAP AG AC295 5-4

© SAP AG 2003

Accounting: Business Scenario

... The real estate management department of your company bears the costs of spaces that are currently vacant...

IV.

... Your company pays periodic rent and also makes periodic payments for services to your business partners with vendor accounts. In addition, you receive one-time vendor invoices, for example electricity bills...

I.

... Your company collects periodic rent payments from your tenants. In addition, you charge your tenants one-timefees for services, such as repairs or cleaning services...

II.

... Your company makes internal charges to the variousdepartments for their share of the use of your business park –but there are no actual payment transactions…

III.

© SAP AG AC295 5-5

© SAP AG 2003

Integration of RE-FX and FI

1:1 relationship between tenant with customer account and customer

1:1 relationship between landlord with vendor account and vendor

Open item management for customer/tenant and vendor/landlord

===

RE-FXFlexible Real Estate Management

AccountingTenantLandlord

FIR/3 Financial Accounting

Financial AccountingCustomerVendor

Accounting in Flexible Real Estate Management is integrated in R/3 Financial Accounting.

Each tenant is a customer, and each landlord is a vendor. There is a 1:1 relationship between the the 'tenant with customer account' in business partner management and a customer in Financial Accounting; the same is true for the relationship between a 'landlord with vendor account' and a vendor.

R/3 Accounts Receivable and Accounts Payable are managed on an open item basis. If there are multiple contracts for one customer or vendor, all of the contracts are managed using the same account.

The items are assigned to a contract.

© SAP AG AC295 5-6

© SAP AG 2003

Posting Transactions in RE-FX

Periodic PostingPeriodic PostingSame for third-party and own usage

Automatic follow-up postings for backdated changes

Automatic posting to Financial Accounting and Cost Accounting

Periodic PostingPeriodic Posting

VacancyVacancy

(Imputed Costs)(Imputed Costs)

Automatic follow-up postings for backdated changes

Automatic posting to Financial Accounting and Cost Accounting

You use the periodic posting run (creation of credits or debits) to generate open items. These open items can then be cleared by incoming/outgoing payments or account maintenance processes.

© SAP AG AC295 5-7

© SAP AG 2003

Contract: Posting Term

Gen. Data Partners ObjectsTerm Posting Paramet. Conditions Settlmt

FrequencyPostings

osting Data

Org. Assgnmt

<Standard><Standard><Standard>

Term Category NameDet. No. Term Memo

Postings: <Standard>

Postings Conditions Memo

Number <Standard>

Detail DataPmnt Method

Dunning AreaHouse BankAcctDeterm.Val.Bus.PartnerTax Type Tax Group

Valid from to: New

ABC Marketing/ 20 Green Street/ Anytown 78467

NONE

E

VAT

What data is updated to the posting document?

Gross

Time-Dependency

PostingData

StandardTerm

© SAP AG AC295 5-8

© SAP AG 2003

Receives a numberCan be removedHave to assign conditions manually

Posting Terms

Different Term

Rental Object

Contract

Time SlotCreate

When changes are made (such as a new payment method), you do not have to create a new term. The changed data can be stored in the existing term starting from the date of the change.

for example, basic rent

Standard Term

Automatically proposed by systemCan be changed but not removedConditions are assigned automatically

for example, standard for all conditions


Automatic

Manual

Since contracts can include as many objects as required, you have to enter different posting information for the conditions. These are posting terms.

Posting terms contain data about payment, taxes and dunning.

The system automatically assigns a standard term to each contract or rental object. The assignment of conditions to this term is automatic. If there are any conditions for which the standard term should not apply, you can enter a different term for them per condition. It is also possible to create a term that is different from the standard first, and then assign condition(s) to it.

Example

Posting terms with different payment methods or different tax rates

© SAP AG AC295 5-9

© SAP AG 2003

Payment-Related Cash Flow Object-Related Cash Flow

Payment-Related Cash FlowDisplay Standard

Current Payment-Related Cash Flow - All Conditions

Basic rent warehouse 10/01/2002 4000.00 10/01/2002 10/31/2002 I Mark Deck/15 GreFlow Type Name Due On Status Net CC Calc.From Calc.To Stat Partner/Acct Assgmt

2000.00 Mark Deck/15 GreAP Operating costs 20.00 Mark Deck/15 Gre

AP Heating costs 30.00 Mark Deck/15 Gre50.00 Mark Deck/15 Gre

AP Sales-based rent 2000.00 Mark Deck/15 GreBasic rent warehouse 4000.00 11/01/2002 11/31/2002 I Mark Deck/15 Gre

2000.00 Mark Deck/15 GreAP Operating costs 20.00 Mark Deck/15 Gre

50.00 Mark Deck/15 GreAP Heating costs 30.00 Mark Deck/15 Gre

AP Sales-based rent 2000.00 Mark Deck/15 GreBasic rent warehouse 10/01/2002 2000.00 10/01/2002 10/31/2002 Mark Deck/15 Gre

4000.00 Mark Deck/15 Gre

Cash Flow

Jump to thedocuments using the status icon

StatusPosted/Not posted

Source Document

FI/CO DocumentsObject Type Text Document numberAccounting Document

Profit Center DocumentCO Document

1600000011

00000149030100011407

List of FI/CO Documents

Jump to the document overview

ALV:- Configure columns (to

show/hide, define length)- Sort- Filter- Subtotal

and so on

IndicatorPlan/Actual

You can generate a cash flow for:

Rental objects (object-related cash flow)

Contracts (contract-related cash flow)

The cash flow forms the basis for periodic posting and contains the planned records for the postings. If you entered conditions in the contract, the system generates a cash flow (payment plan) that updates planned records for periodic postings per condition type for a defined number of years, depending on the settings made in Customizing. These planned records are assigned the indicator P. The periodic posting run posts the planned records due in active contracts and changes them to actual records identified by an I.

When conditions on contracts are changed, the cash flow is changed accordingly. You have to enter a date for any necessary follow-up postings for active contracts (the current date is the default value). During the next periodic posting run in which these items are due, the items are taken into account.

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

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 updated on a regular basis (at least every six months). The update is generally done as a batch job.

© SAP AG AC295 5-10

© SAP AG 2003

Periodic Posting

You perform the Periodic Posting run within one company code.

Posting runs can be simulated or reversed.

A posting log and an error log provide information on the status of posting.

© SAP AG AC295 5-11

© SAP AG 2003

Periodic Posting: Process

1. The periodic posting run selects all flow records (planned records in the cash flow) which are due and are not yet posted.

2. The system finds the account determination for each flow record and generates a debit and credit posting for it in Financial Accounting. The corresponding item in the cash flow is set to "actual" and thereby marked as posted.

Condition purpose

The condition purpose determines if and how conditions are represented in the cash flow:

Posted – posting

One-time posting – one-time posting

Statistical – no posting (not in the cash flow)

One-time statistical – no posting (not in the cash flow)

© SAP AG AC295 5-12

© SAP AG 2003

Account (FI)Account

Assignment object(CO)

Periodic Posting: Contract

Receivables

CustomerRent RevenueContract

1000 1000

1000

Customer

ExternalContract

Vendor

Lease-In

Contract

CostsOwn UsageCost center

1000 1000

Cost center

InternalContract

RevenueOwn UsageContract

Vendor1000

Costs for Lease-InContract1000

Payables1000

Own usage: Real estate contracts can be made with cost centers belonging to your own company (company code), as well as with external partners. Contracts for your own usage do not have a master tenant with customer account. The tenant in this case is a cost center in your company, with payment data defined in the contract.

The same condition types (basic rent, advance payment operating costs and so on) are used. Periodic postings are transferred to different accounts in the case of your own usage as opposed to other usage.

The posting is: Debit "Costs Own Usage," with auxiliary account assignment to cost center that is renting the rental unit Credit "Revenue Own Usage," with auxiliary account assignment to the contract

© SAP AG AC295 5-13

© SAP AG 2003

Posting with Contractual Partner

Third-party usageMaster tenant withcustomer account

PERIODICONE-TIME

Own usageCost centerOrder Project

PERIODIC

ONE-TIMEPERIODIC

Vendor aspartner

ONE-TIME

RepairsDuplicate key fee

RentServicecharges


RentServicecharges


RentServicecharges

Case 2:

You lease out your real estate objects externally.

Case 3:

You 'lease out' your real estate objects internally.

Case 1:

You lease in.

© SAP AG AC295 5-14

© SAP AG 2003

Subsidiary Ledger

Vendor

Periodic Posting Case 1: Lease-In from Third Party

Basic Rent € 1000

General Ledger

Bal

ance

She

et

Acc

ount

s Payables

P/L

Acc

ount

s Occupancy Costs

Rec

onci

liatio

nA

ccou

nt

1000 (1) 1000 (1)

(1) 1000

Account Assignment Object:

Contract

Example: Posting of basic rent (lease-in)

Posting record 1: Debit Costs Credit Vendor The vendor is in the subsidiary ledger. At the same time, the reconciliation account for Payables is posted in the general ledger. This account was specified in the vendor master record.

When you create a real estate contract, the cash flow is generated from the conditions.

© SAP AG AC295 5-15

© SAP AG 2003

Periodic Posting Case 2: Lease-Out to Third Party

Subsidiary Ledger

Customer

Basic Rent € 1000

General Ledger

Bal

ance

She

et

Acc

ount

s Receivables

P/L

Acc

ount

s Basic Rent Revenue

Rec

onci

liatio

nA

ccou

nt

(1) 1000

1000 (1)

(1) 1000


Contract

Example: Posting of basic rent

Posting record 1: Debit Customer Credit Basic rent revenue The customer is in the subsidiary ledger. At the same time, the reconciliation account for Receivables is posted in the general ledger. This account was specified in the customer master record.

© SAP AG AC295 5-16

© SAP AG 2003

Periodic Posting Case 3: Internal Lease-Out

Basic Rent € 1000

General Ledger

Bal

ance

She

et

Acc

ount

sP/

L A

ccou

nts Basic Rent Revenue

Rec

onci

liatio

nA

ccou

nt

1000 (1)


Contract

Occupancy Costs

(1) 1000

Account assignment object:Cost center,

Order, Project

Example: Posting of basic rent

Posting record 1: Debit Costs Credit Revenue Occupancy costs are debited to the cost center (or to the corresponding order or project) using the area. These are offset by revenue for the real estate contract (analogous to external usage).

When you create a real estate contract, the cash flow is generated from the conditions.

© SAP AG AC295 5-17

© SAP AG 2003

Distribution: Contract

Office Rent: € 700AP Operating Costs: € 210

Office Space 1

Office Space 2

6060 + 140

Rental Conditions:

Basic office rent € 1000AP operating costs 300

Assigned Objects:

Office 1: Office space 60 m²Office 2: Office space 140 m²

Contract

14060 + 140

Distribution plays a role in reporting for costs and revenue. All costs and revenue that have been entered on a contract and which can be assigned to one or more objects, can have account assignment to these objects.

DISTRIBUTION FORMULAMeasurement: Office SpaceOffice Basic Rent € 1000AP Operating Costs € 300

DISTRIBUTION FORMULADISTRIBUTION FORMULAMeasurement: Office SpaceOffice Basic Rent € 1000AP Operating Costs € 300

Office Rent: € 300AP Operating Costs: € 90

On the contract, you can define distribution formulas for the rental conditions.

The following distribution formulas are supplied in Customizing in the standard system:

Divided equally

Measurement

Object (BE, PR, BU, RO, REC)

In order for reporting on costs/revenues to be most meaningful, you can have all of the costs and revenues (that can be assigned to objects) on a contract be additionally posted to those objects.

If an object is directly assigned to a condition, then all costs or revenue can be posted directly to the object. However, this direct transfer is not possible if either of these apply:

The object is not assigned to any condition

An object group is assigned to a condition

The reason direct posting is not possible is that the system cannot determine the object to be posted. In both of these cases you have to define a distribution formula that specifies how costs and revenue are to be distributed.

Distribution formulas define how the system finds the object(s) that are to be posted, and how costs or revenue are proportionally distributed to the object(s).

In most cases, the distribution formula is contained in the calculation formula and therefore you don't have to modify it in the contract.

© SAP AG AC295 5-18

© SAP AG 2003

Distribution Posting: Process

1st Posting Document

2nd Posting Document

You first have to assign costs or revenue to the contract.A document is created for posting the costs or revenue to the contract.

If the costs or revenue are to be assigned to contract objects (rental object, building, property) in Controlling, then a distribution formula has to be defined in the contract.

The distribution formula specifies how the amount paid is distributed when there are multiple contract objects.

Example: Distribution by area (for rental spaces)Equal distribution (for rental units)

If a condition relates to only one object, you still have to enter a distribution formula so that costs or revenue can be posted completely to this object.

When a distribution formula has been created, the system creates a document that is usedfor posting the costs or revenue from the contract to the object.

© SAP AG AC295 5-19

© SAP AG 2003

Distribution Posting: Example

1000 (2) Contract

Credit for Basic RentBasic Rent Revenue

700 (2) RO 1300 (2) RO 2

Distribution Posting

Condition for Basic Rent: € 1000

Rental Object 1: Office space 70m²

Rental Object 2: Apartment 30 m²

Distribution formula (entered in the condition):

C – By area

If the contract contains only one object, then the full posting amount is distributed to this object.

The balance on the contract is ultimately zero, but the original posting can be displayed in reporting (distribution posting to the rental objects).

© SAP AG AC295 5-20

© SAP AG 2003

Posting Log

Real Estate - Posting Log (Document Currency)G/L Account VendorCustomer RE object RE Acct Assignmt

Real Estate - Posting Log

Reference Key Sender Doc. Number Year CoCd DocType Client User CPU Date CPU TimeReference Number Reverse Doc. Year Transaction Doc. Date

Currency Text Postg Date Per.Itm PK S Amount SK Text G/L Acct Customer/Vendor/G/L Acct RE Acct Assignmt/Cost Center A

000000032002000001 REACI 10001403 2000 1000 AB SEEM 09/ 29/2002 14:23:44000000032002REPP RERAPP 03/01/2000

EUR Per.Posting: Mar 00 03/01/2000 03

001 40 100,000.00 V0 01/03/2000*Cred. Basic rent 470000 Occupancy Costs REC 1000/1

003 40 21,000.00 V0 03/01/2000*Cred. Obj.coll. 470000 Occupancy Costs REC 1000/1

001 40 21,000.00 03/01/2000*Cr.trsf. Obj. 470000 Occupancy costs BE 1000/1000

003 40 100,000.00 03701/2000*Cr.trsf.Basic 470000 Occupancy Costs REC 1000/1000002 50 21,000.00- 03/01/2000*Cr.trsf.Obj. 470000 Occupancy Costs REC 1000/1

004 50 100,000.00 03/01/2000*Cr.trsf.Basic 470000 Occupancy Costs REC 1000/1

002 31 100,000.00- V0 03/01/2000*Cred.Basic rent 160000 100128 Global Business Prop

004 31 21,000.00 V0 03/01/2000*Cred. Obj.coll. 160000 100128 Global Business Prop

000000032002000001 REACI 10001404 2000 1000 AB SEEM 09/29/2002 14:23:44000000032002REPP RERAPP 03/01/2000

EUR Per.Posting: Mar 00 03/01/2000 03

Jump to theReal Estate objects

Jump to the documents

Jump to the G/L Accounts

© SAP AG AC295 5-21

© SAP AG 2003

Automatic Account Determination – Periodic Posting

With flow type and reference flow types

Starting point:The automatic postings in periodic posting are made using the condition types.

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

Each usage type (third-party usage, own usage, vacancy) should have a different account.

The accounts posted to for distribution postings must be different from the accounts used in receivables posting.

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. For this to happen, you have to assign a further flow type (reference flow type) to the original flow type using a relationship key.

The automatic postings in periodic posting 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.

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

The account determination is contingent on:

The flow type and a freely definable account assignment value (field in the rental unit/agreement).

© SAP AG AC295 5-22

© SAP AG 2003

Account Determination: Logic

Condition Type Condition Type →→ Flow TypeFlow Type

→→ (Reference Flow Type)(Reference Flow Type)

→→ Account DeterminationAccount Determination

Starting point:

The automatic postings in periodic posting are made using the condition types.

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

Each usage type (third-party usage, own usage, vacancy) should have a different account.

The object cash flow should be generated automatically using the condition specified in the contract.

Other accounts should be used for distribution postings.

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. For this to happen, you have to assign a further flow type (reference flow type) to the original flow type using a relationship key.

The object cash flow is also generated using relationship keys and reference flow types.

© SAP AG AC295 5-23

© SAP AG 2003

There is a retroactive increase of a receivable (that is, after periodic posting was already performed).

Reference Flow Type

Own usage 040Follow-up postings

Retroactive condition increase 010Retroactive condition reduction 020

Vacancy 060Distribution postings (object transfers) 030Service Charge Settlement

Receivables from settlement 110 Credit from settlement 120

ActivityActivity Relationship keyRelationship key

Condition Type → Flow Type →Reference Flow Type → Account Determination

Example:

010 Follow010 Follow--up postings due toup postings due tocondition increasecondition increase

Based on the given situation, the system recognizes if it should use the flow type that was originally assigned to the condition type, or if it should use a reference flow type.

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.

During posting, the system uses the account determination that is assigned to the reference flow type.

In some cases, reference flow types are used for other reference flow types.

Example: Internal contract, condition type 0010 Basic rent, original flow type: 1000

Since it is an internal contract, then reference key 040 for "own usage" is used. If follow-up postings have to be made later for this contract, then you would use the reference flow type for "follow-up postings."

This graphic shows the individual relationship keys.

© SAP AG AC295 5-24

© SAP AG 2003

Automatic Account Determination: Settings

Condition TypeCondition TypeCondition Type Condition GroupCondition GroupCondition Group

Usage TypeUsage TypeUsage Type

Assignment ofReference Flow Type

Assignment ofAssignment ofReference Flow TypeReference Flow Type

Flow TypeFlow TypeFlow TypeAccount Symbol §Account Symbol Account Symbol §§

ContractContractContract

RE-FX CUSTOMIZING RE-FX CUSTOMIZING

G/L Account (FI)OccupancyCosts

470000

ContractContract--RelatedRelated

Cash Flow

ObjectObject--RelatedRelated

Procedure for setting up automatic account determination:

Create the G/L account in FI, and create the account symbol in Customizing for RE-FX (Accounting).

Assign the G/L account and the account symbol.

Assign the account symbol and flow type (with possible assignment of flow type to reference flow type).

Create each condition type on the basis of a flow type.

Assign usage types to rental object types.

Assign condition types to condition groups.

Assign condition groups to the corresponding contract types or rental object types (on the basis of the assigned usage type).

Example

Condition group Customer contract, commercial – contract type Commercial lease-out

Condition group Rental object, commercial – usage type Store

© SAP AG AC295 5-25

© SAP AG 2003

Selection usingContract number

Individual entryCollective entry

Posting

Master DataDocumentsParameters

Payment proposal

Postprocessing

Payment, postingDME

Account statement,handling of returns

(if nec.)

Electronicaccount statement

Management byContract numbers

Posting

Postprocessingif necessary

Incoming Payments Processing

ManualManualfor example, for example, cash paymentcash payment

Payment programPayment program(collection)(collection)

ElectronicElectronicaccount statementaccount statement

transfertransfer

Processing of incoming payments takes place in the accounting system.

Incoming payments can be processed in one of two ways:

Automatically: Payment program (when automatic debit authorization indicator is set -> debit memo procedure is used)

Electronic account statement entry (bank transfers)

Manually

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.

If a payment method is entered on the condition, it is also entered in the document. If the payment method is not entered, the payment program handles the payment using the specifications on the customer master record ("allowed payment methods").

The payment program clears open items only if they have the same payment method. Therefore, we recommend that you enter the payment method on the contract only in rare cases.

© SAP AG AC295 5-26

© SAP AG 2003

It is not necessary to reverse periodic posting whenchanges are made to conditions after the periodic posting run, since any changes are taken into account the next time periodic posting is run.

You can reverse the complete periodic posting run in RE-FX.

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

It is not yet possible to reverse single documents from the periodic posting run!

Reversal of Periodic Posting

It is not yet possible to reverse individual items from the periodic posting run in FI.

SAP recommends that in Release 1.0 you reverse the entire periodic posting run. Then after making your corrections, execute the periodic posting again.

© SAP AG AC295 5-27

© SAP AG 2003

Dunning: FI Dunning Program

Processing

• Dunning Level• Dunning Block

Sample Printout

Current Settings

Basic Parameters

Dunning Proposals

Master Record Documents

- Execute -

- Print -

Dunning Letters

Dunning List

The periodic posting function transfers information to the document. Some of this information, such as the payment method, dunning area, dunning block and the contract number, is relevant for the dunning program. 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 (contract, business entity, and so on). Or you can use the Free Selections function and field name BSID-VERT to select only contracts. You can also limit selection to contracts in the payment program using the Free Selections function. An additional log is created in both the dunning program as well as the payment program.

© SAP AG AC295 5-28

© SAP AG 2003

Definition of partner roles as additional dunning recipients (with a specific dunning level) possible

Automatic dunning of master tenant with customer account

Dunnable payment methods

Dunning list according to BE and RU

Requirement: Dunning grouping by contract number

Dunning: Special RE Features

RE-FX special function: Dunning grouping by contract numbers in customer master record..

This grouping must consist of the following fields in this order:

Contract number VERTN length 13

Contract type VERTT length 1

In addition to the items that are dunned according to the logic in FI, the system also duns all item for which a dunnable payment method is entered in the item or in the customer master record.

You have to specify the payment methods that are dunnable in Customizing for Standard Real Estate Management:

SAP Customizing Implementation Guide → Real Estate Management → Rental Accounting → Dunning → Determine Dunnable Payment Methods

You can sort, filter or display the dunning list according to business entity or rental unit.

If a tenant has contracts containing different dunning levels, the dunning level on the customer master record is considered the highest dunning level. The dunning levels are updated in the next dunning run.

In addition to customers, partners that are in the dunning program can also receive dunning letters. The role categories have to be assigned to the usage type of the partner (such as lease-out) in Customizing for RE-FX, dependent on the dunning level. You also have to designate that the partner is a dunning recipient:

RE-FX Customizing → Flexible Real Estate Management → Accounting → Accounting System Integration → Accounting System → Dunning → Assign Application/Role Category/Dunning Parameter

© SAP AG AC295 5-29

© SAP AG 2003

Customizing for Accounting

Integrationwith Accounting

System

RE-specificaccount properties:

e.g. possible account assignment objects

Create account symbolsand assign them to

flow type

Define tax parametersTax types

Tax groups

Assign tax parametersTax code

Tax transaction key

Define dunning parameters

G/L accounts

Document types

G/L accounts

Define determination of document type

Replace account symbols with G/L accounts

Assignment of RE-specificaccount properties

to G/L accounts

Define tax code

Basic settings for dunning

RE-FX FI

Document type determination can be set:

Using processes (SCS, periodic posting for contracts, and so on) and activities (transfers, receivables)

For each flow type

© SAP AG AC295 5-30

© SAP AG 2003

Reports and Overviews

AccountingOpen Item List (Customer, Vendor)

Balance List (Customer, Vendor)

Posting Log

The following reports for accounting can be called directly in Flexible Real Estate Management:

Customer Line Items

Posting log

You can call additional reports in Accounts Payable and Accounts Receivable:

Balance lists

Open items lists

© SAP AG AC295 5-31

© SAP AG 2003

Accounting: Summary

You are now able to

Explain the different types of periodic posting

Call and update partner-related and object-related cash flows

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

List the options for manual and automatic incoming payments

Explain the requirements for dunning and the process involved

© SAP AG AC295 5-33

Exercises

Unit: Accounting Topic: Periodic Posting, Incoming Payments,

Vacancy Postings, Payments


• Display payment-related and object-related cash flows

• Perform periodic posting

• Generate vacancy postings

• Update incoming payments manually

• Check account information of your tenants

• Start an automatic payment run

Your enterprise pays regularly recurring amounts for rent and services to your business partners with vendor accounts.

Your company collects periodic rent payments from your tenants.

Your company also allocates internal costs to different departments for the use of office space and other areas in the locality.

1 Simulate periodic posting for the contracts in your business entity (1##) for January of last year. Check the error log.

2 Release your business entity for posting in the RE Navigator.

3 Simulate periodic posting of your objects again for January of last year.

As soon as the simulation does not show any errors, perform periodic posting for the contracts of YOUR business entity (all contracts) for January of last year.

4 Call up the posting log.

5 Display the customer account for your commercial lease-out. To do this, use the relevant contract.

6 Display the cash flows of the commercial lease-out. Pay special attention to the status of the first entry. The status changed from P (for planned) to I (for actual). Branch to the relevant accounting documents.

© SAP AG AC295 5-34

7 The tenant of the commercial lease-out pays the rent in cash for January of last year.

Post the incoming payment (transaction F-28). Select the following data:

Account 113100 Type DZ (Customer payment) Amount € 21.460,15

Enter the account number from your contract for the customer.

Choose Process open items.

Save.

Call the customer account again, as described in exercise 5.

8 Perform Periodic Posting: Rental Objects (Vacancies) for your business entity for January of last year.

First simulate the vacancy posting. Check the error log and then execute the periodic posting.

Have a look at the posting documents and the account assignment objects.

© SAP AG AC295 5-35

Solutions

Unit: Accounting Topic: Periodic Posting, Incoming Payments, Vacancy

Postings, Payments

1 Simulate periodic posting.

In the SAP menu, choose: Accounting → Flexible Real Estate Management → Accounting → Periodic Postings → Periodic Posting: Contracts (RERAPP)



Company Code 1000

Object Selection Active X

Object ID BE 1000/1##

Hierarchical Object Selection X

Month for Posting Run 01

Year for Posting Run Previous year

Confirm these entries with ENTER.

In the Posting area, ensure that the entry in the Posting Run Mode field is Simulation and that the entry in the Type of Posting Run field is Periodic Posting + Transfer. Change these entries if necessary.

Choose (Execute).

Check the error log by choosing (Error Log).

Expand the entry that is marked with .

Leave the error log and the periodic posting by pressing (Back) three times.

2 Release your business entity.

Call the RE Navigator.

In the SAP menu, choose: Accounting → Flexible Real Estate Management → RE Navigator → RE Navigator (RE80)

Change the display in the Navigation Area to My Objects and expand Business Entities by choosing the icon on the left of the entry. Double-click your business entity and then choose (Changes Between Display <-> Change). Release your business entity for accounting by choosing and save with (Save).

© SAP AG AC295 5-36

3 Execute periodic posting.




Company Code 1000







In the Posting area, ensure that the entry in the Posting Run Mode field is Simulation and that the entry in the Type of Posting Run field is Periodic Posting + Transfer. Change these entries if necessary.

Choose (Execute).


Leave the error log by pressing (Back) twice.

In the Posting screen area, select Update Run in the Posting Run Mode field. Select Periodic Posting + Transfer in the Type of Posting Run field.

Choose (Execute).

Check the error log again by choosing (Error Log).


4 Look at your posting log.

In the SAP menu, choose: Accounting → Flexible Real Estate Management → Accounting → Reporting → Posting Log (RERAPL)

In the Company code field, enter the value 1000, and in the Document entry date field, enter today's date. Choose (Execute).

Leave the posting log by pressing (Back) twice.

© SAP AG AC295 5-37

5 View a customer account based on a specific contract.

Call the RE Navigator.

In the SAP menu, choose: Accounting → Flexible Real Estate Management → RE Navigator → RE Navigator (RE80)

Change the display in the Navigation Area to My Objects and expand Real Estate Contracts by choosing the icon on the left of the entry. Double-click the number of your commercial lease-out.

Go to the Partners tab page and choose Account, then run the report with (Execute).

Leave the item display of the customer by pressing (Back) twice.

6 Go to the Conditions tab page and choose (Cash Flow…). Choose (Entry Already Posted) and double-click the accounting document text. Leave the document display by choosing and then .

7 Call the RE Navigator.

In the SAP menu, choose: Accounting → Flexible Real Estate Management → Accounting → Single Documents → Post Incoming Payments. Enter the following data:


Document Date 05.01. of last year

Posting Date 05.01. of last year

Type DZ

Company Code 1000

Account 113100

Amount 21.460,15

In the Open item selection area, place the cursor in the Account field and call the F4 Help.

Go to the Customers By Real Estate Contract tab page, enter the contract number of your commercial lease-out and choose (Start search).

Select the displayed line and copy the customer number with .

Choose Process open items and post with .

Call the customer account again, as described in the solution to exercise 5. However this time, select All items in the Line item selection area.

© SAP AG AC295 5-38

8 Simulate periodic posting: vacancy.

In the SAP menu, choose: Accounting → Flexible Real Estate Management → Accounting → Periodic Postings → Periodic Posting: Vacancy for Rental Objects (RERAVP)



Company Code 1000

Business entity 1##




In the Posting screen area, ensure that the Posting Run Mode field is filled with Simulation. Change the entry if necessary.

Choose (Execute).



Change the entry in the Posting Run Mode field to Update Run and execute again by choosing .

Check the error log again by choosing (Error Log).

Leave the error log and the vacancy periodic posting by pressing (Back) three times.

© SAP AG AC295 6-1

© SAP AG 2003


Content:

Procedure

Adjustment methods

© SAP AG AC295 6-2

© SAP AG 2003

Adjustment of Conditions: Objectives


Explain the adjustment procedure

Describe possible adjustment methods

© SAP AG AC295 6-3

© SAP AG 2003


Course Overview

Business Partner

Contract Management

Accounting



Master Data





Input Tax Treatment

© SAP AG AC295 6-4

© SAP AG 2003

You want to adjust condition amounts for your contracts

Depending on the contract, you need to choose between free adjustment and adjustment with an index

Adjustment of Conditions: Business Scenario

© SAP AG AC295 6-5

© SAP AG 2003

Adjustment Methods

The following adjustment methods are available:

Index-linked rent adjustment

Free adjustment

Adjustment of advance payments (through service charge settlement)

The following adjustment methods are available in Release 2.0:

Free adjustment

Adjustment with index

Adjustment of advance payments during service charge settlement

Adjustment methods for residential real estate management (such as representative list of rents, comparative apartments, and so on) are provided in ERP 2004 and later.

© SAP AG AC295 6-6

© SAP AG 2003

Adjustment Term

AP adjustment term

Rentalobject

Contract

Current status of theadjustment for the

condition

E.g. AP operating costs

Index adjustment termConditions

Conditions

Manual

E.g. AP heating expenses

E.g. Rent

E.g. Parking space rental

Manual

Adjustment terms are defined in the contract and assigned conditions.

You can assign several conditions to one adjustment term, which means that the individual conditions can be adjusted using the same method. When performing the adjustment, you can decide which conditions should be explicitly included.

In the contract, you can check at any time for each condition type whether an adjustment has already been performed and what the current status of the adjustment is (exists but is not activated, exists but is defective, or it is already activated with the option of performing another adjustment).

© SAP AG AC295 6-7

© SAP AG 2003

Process for Adjusting Conditions

•• Header (ID)Header (ID)•• Adjustment recordsAdjustment records•• LogLog

Simulate adjustment

Enter approval, if required Activate

new conditions

Fix adjustment

Lease-out

Rental object

Dataof

adjustmentrun

Dataof

adjustmentrun

List of List of calculated calculated

adjustmentsadjustments

Check andchange, if necessary

(if permitted)

Notification correspondenceCheck and

change, if necessary

Dataof

adjustmentrun

Dataof

adjustmentrun

If you want to adjust conditions, you can first simulate the adjustment. The simulation generates a list of possible changes.

You can change the values in the list depending on how the adjustment term has been defined in the contract.

If the simulation matches the requirements, it can be used in the update run. Various steps must be performed individually for each adjustment run. The individual steps are:

Determination of adjustments Adjustment editing Approval correspondence Approval or rejection Activation of adjustments Adjustment correspondence

Where possible, a complete log and results report are displayed for the steps. If a step is interrupted during the update run, a log is created for that particular activity. After the cause of the error has been removed, the adjustment must be restarted at this point.

The system takes into account any periods and limitations that are set by law. Capping rules must be defined in Customizing and assigned to the individual adjustment methods. Rent adjustments that are subject to approval (dependent on how the adjustment term is defined in the contract) can only be activated after the approval has been entered.

Successful, defective, and planned adjustments can be viewed in the master data dialog of the contract.

© SAP AG AC295 6-8

© SAP AG 2003

Customizing and Application

Predefined rule:• Adj. rate: 3%• Frequency 12 months• Earliest adjustment

Customizing

Predefined index rule:• Index type: VPI• Base year 1991 = 100• Index increase 5%• Pass-on rate 100%• Frequency 12 months• Earliest adjustment

Adjustment rule 01 (free adj.):• Adj. rate: 5%• Frequency 12 months• Earliest adjustment

Contract

Adjustment rule 02 (index):• Index type: VPI• Base year 1991 = 100• Index increase 4 points• Pass-on rate 75%• Frequency 12 months• Earliest adjustment

Contract conditions:• Office rent Office 1 € 2,000 monthly Adj. rule 02• Store rent Store 1 € 10,000 monthly Adj. rule 02• Warehouse rent WH 1 € 10,000 monthly Adj. rule 01• ...

Adjustment terms are defined in Customizing, which you can assign in the application.

Adjustment terms can be controlled on an individual basis and users can be given access for changes. For example, it is therefore possible to define an adjustment term that is not displayed to the user in the characteristics because this term cannot be changed. You can also exclude individual fields from changes.

© SAP AG AC295 6-9

© SAP AG 2003

Free Adjustment

Adjustment methods

FREE

Percentage adjustment:

By 10%

Absolute adjustment:

With € 37 / unit of the measurement type

Internal flow of the adjustment:

Determination of adjustmentsAdjustment editingApproval correspondenceApproval or rejectionActivation of adjustmentsAdjustment correspondence

In the free adjustment method, you can change condition amounts in terms of a percentage or an absolute amount (whole or by measurement unit).

Method-specific settings must be configured for the adjustment run.

© SAP AG AC295 6-10

© SAP AG 2003

Adjustment with Index

Contract 2:

Index type CPI

Only increase > 4 pointsAmount passed on 75%

Contract 1:

Index type CPI

Only increase > 5% Amount passed on 100%

Internal flow of the adjustment:

Determination of adjustmentsAdjustment editingApproval correspondenceApproval or rejectionActivation of adjustmentsAdjustment correspondence

Adjustment methods

INDEX

In the adjustment process with index, the index and the relevant base year are already defined in the contract. The adjustment is made based on these entries and based on the index points maintained in Customizing.

For the adjustment term, you can define a minimum change in both percentage and points. A contract condition is not adjusted unless the corresponding rules in the contract (for the condition) allow it.

© SAP AG AC295 6-11

© SAP AG 2003

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

Adjustment delay in months (for instance 2)

Example 2: Rent adjustment run = Aug.1

Example 1: Rent adjustment run = Oct.1

Frequency and Delay

t

t

Backwards

Backwards

1.8.Index data

1.10.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. 1.4. 1.7.

Rental start RA RA

1.8.Index data

Date of rent adjustment run

1.10.Date that adjustment is valid from

tFlexible

1.1. 1.4. 1.5. 1.6. 1.7. 1.8.

Rental start RA RA RA RA RA . . .

You enter the adjustment frequency and delay for the index adjustment data of the adjustment term.

Adjustment frequency: If the entry in the flexible adjustment frequency field is Earliest, the frequency is taken to mean the minimum duration. Otherwise adjustments can only be made with the specified frequency.

Frequency example: 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 entry for the flexible adjustment frequency is Earliest, adjustments can be made any time after three months (as long as this is after the date of first adjustment). In our example, the next possible adjustment is not possible until three months after an 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 options:

Example 1: If an adjustment is to be carried out on 01.11.2004, an adjustment delay of 3 months means that the index level of 01.08.2004 would be used for adjustment on 01.11.2004.

Example 2: In an adjustment delay of -3 months, the adjustment would be carried out on the basis of the index level of 01.02.2005 retroactively to 01.11.2004.

The difference is the sign (-) assigned to the adjustment delay!

© SAP AG AC295 6-12

© SAP AG 2003

Rebasing the Index (Customizing)

Index Month Year Value

CPI 1 2003 104.0

CPI 2 2003 104.5

CPI 3 2003 104.6

CPI 4 2003 104.3

CPI 5 2003 104.1

CPI … 2003 …

CPI 10 2004 106.2

Index Month Year Value

"Old" 1 2003

"Old" 2 2003

"Old" 3 2003

"Old" 4 2003

"Old" 5 2003

"Old" … 2003

"Old" 10 2004

Determination of new index values for finished index series

Rebasing

With the introduction of a new base year for consumer price indexes, all indexes used previously have been standardized. Certain index series are no longer used.

SAP recommends permanently converting contracts that are linked to "expired" indexes.

A conversion table is provided for the transitional period. Index series that are no longer valid are continued, but on the basis of the new index calculations.

© SAP AG AC295 6-13

© SAP AG 2003

Adjustment of Conditions: Summary

You are now able to

List the rent adjustment methods

Describe the rent adjustment process

© SAP AG AC295 6-15

Exercises

Unit: Adjustment of Conditions Topic: Performing the Steps Required to Adjust

Conditions


• Use the different rent adjustment methods

You will take the following steps:

• Define an adjustment term in the contract/object, simulate and convert to an update run, then make any changes necessary, enter approval, and finally activate it

Lease-outs can be adjusted using the free adjustment and index adjustment methods.

Select a lease-out as your adjustment object.

1 Adjust with an index.

1-1 Define an adjustment rule for index adjustment in your first internal lease-out. Use the RE Navigator for this.

Define the adjustment term Index adjustment with suggestion.

Change the minimum changes in points to 1 point and set the flexible adjustment frequency to earliest.

The index start should be January 1 of last year.

Assign the condition Office basic rent detail and save the contract.

1-2 Simulate and execute the index adjustment for your contract.

Use the object selection for this. First, perform only the activities determine adjustments and process adjustments.

Adjustment should occur as soon as possible and include occupancy contracts that are both subject to approval and not subject to approval.

Run the simulation and check the results.

Change the simulation to update mode.

1-3 Check your contract for changes in the adjustment status and check for changes that have already been made to the condition amount.

© SAP AG AC295 6-16

1-4 Activate the adjustment.

Check the condition amount change again and the change to the adjustment status for your contract in the RE Navigator.

2 Adjust by means of free adjustment.

2-1 In your residential lease-out, define an adjustment rule for free adjustment. Use the RE Navigator for this.

Define the adjustment term Free adjustment defined in the contract.

Assign the condition Basic rent and save the contract.

2-2 Simulate and execute the free adjustment for your residential lease-out.

Use the object selection for this.

The adjustment should affect all relevant condition types, with all calculation formulas.

The condition should be increased by 4.5%.

First, perform only the activities determine adjustments and process adjustments.

Adjustment should occur as soon as possible and include occupancy contracts that are both subject to approval and not subject to approval.

Run the simulation and check the results. Change the date from which the new condition amount is valid to 01.05. of the current year. Enter the approval.

Change the simulation to update mode and activate it.

2-3 Check the changes to the condition amount and to the adjustment status for your contract in the RE Navigator.

© SAP AG AC295 6-17

Solutions

Unit: Adjustment of Conditions Topic: Performing the Steps Required to Adjust

Conditions

1 Adjust with an index.

1-1 Define an adjustment rule for index adjustment in your first internal lease-out.


In the SAP menu, choose: Accounting → Flexible Real Estate Management →

RE Navigator → RE Navigator (RE80)

In the Navigation Area of the RE Navigator, change the display to My Objects and choose . Expand the Real Estate Contracts entry by pressing the icon on the left of the entry.

Double-click the number of your first internal lease-out and then choose (Changes Between Display <-> Change).

Go to the Adjustment tab page, choose (Create Term) and choose Indexadjustment with suggestio.

Expand the method-specific parameters by choosing next to the text.

Choose the icon to unlink from Customizing and to be able to make changes.

Change the Min. Change Pts entry to 1 and the Flexible Freq. field to Earliest.

Expand the object-specific parameters by choosing next to the text and check the date of the index start. Change this entry to January 1 of last year.

In the lower screen area, go to the Conditions tab page and choose to assign free condition(s) and then select Condition Type Office basic rent detail.


© SAP AG AC295 6-18

1-2 Simulate and execute an index adjustment.


Adjustment of Conditions → Specify Adjustments (REAJPR)



Company Code 1000




Ensure that the Mode field is filled with Simulate Adjustment Run.

In the lower screen area, select the Index field.

Go to the Activities tab page and make sure that only the Determine Adjustments and Processing of Adjustments fields are selected.

Go to the Activity Parameters tab page, select the Next Possible Valid-From field and the OccupancyContracts field. Next to the OccupancyContracts field, change the entry in the Subject to Approvl field to Both.

Choose (Execute).

Select the displayed line and choose (Show detail).

Confirm the data with (Continue) and transfer the simulation with Change from Simulation to Update Mode.

Save the update run by pressing (Save).

1-3 Check the contract for changes.





Double-click the number of your first internal lease-out and then go to the Adjustment tab page.

Go to the lower screen area, to the Conditions tab page, and click the Inactive Adjustment Exists entry.

Leave the results screen by choosing (Continue).

Go to the Conditions tab page of the contract. The condition has not changed yet.

© SAP AG AC295 6-19

1-4 Activate the adjustment.


Adjustment of Conditions → Edit Adjustments (REAJCH)

Place the cursor in the Identification field and call the F4 Help.

Double-click the entry next to your user name in the Entered column and choose (Execute) to call the adjustment data.

Select the displayed line and choose to activate the adjustment.

Save the activation by pressing (Save).

To check for changes, restart the RE Navigator.




Double-click the number of your first internal lease-out and then go to the Adjustment tab page.

Go to the lower screen area, to the Conditions tab page, and click the Active Adjustment Exists entry.


Go to the Conditions tab page of the contract. Change the management of time slots to Show all time periods.

2 Adjust by means of free adjustment.

2-1 In your residential lease-out, define an adjustment rule for free adjustment.





Double-click the number of your residential lease-out and then choose (Changes Between Display <-> Change).

Go to the Adjustment tab page, choose (Create Term) and select Free Adjustment defined in the contract.

In the lower screen area, go to the Conditions tab page and choose to assign free conditions, then select Condition Type Basic rent.


© SAP AG AC295 6-20

2-2 Simulate and execute an index adjustment.


Adjustment of Conditions → Specify Adjustments (REAJPR)



Company Code 1000




Ensure that the Mode field is filled with Simulate Adjustment Run.

In the lower screen area, select the Free field.

Go to the Processing Paramet. tab page and choose (Insert Row). In the Incr. % field, enter 4,5.

Go to the Activities tab page and make sure that only the Determine Adjustments and Processing of Adjustments fields are selected.

Go to the Activity Parameters tab page, select the Next Possible Valid-From field and the OccupancyContracts field. Next to the OccupancyContracts field, change the entry in the Subject to Approvl field to Both.

Choose (Execute).

Select the displayed line and choose (Show detail).

In the Corrected Fr-Dt field, enter 01.05.[current year].

Choose (Approve) and confirm with (Continue), then also confirm the changes with (Continue).

Convert the simulation with Change from Simulation to Update Mode, select the line again and choose to activate the adjustment.

Save the adjustment by pressing (Save).

2-3 To check for changes, restart the RE Navigator.




Double-click the number of your residential lease-out and then go to the Adjustment tab page.

Go to the lower screen area, to the Conditions tab page, and click the Active Adjustment Exists entry.


Go to the Conditions tab page of the contract. Change the management of time slots to Show all time periods.

© SAP AG AC295 7-1

© SAP AG 2003


Content:

Business scenario

RE Navigator

Infrastructure of service charge settlement

Service charge settlement process flow

Posting procedures

Customizing

© SAP AG AC295 7-2

© SAP AG 2003


Describe the service charge settlement process.Individual steps in this process are:

Creating the infrastructure

Posting vendor invoices

Performing service charge settlement

List the factors influencing the service charge settlement

Describe the relevant postings

Service Charge Settlement: Unit Objectives

© SAP AG AC295 7-3

© SAP AG 2003

Service Charge Settlement: Overview Diagram

Course Overview

Business Partner

Contract Management

Accounting



Master Data





Input Tax Treatment

© SAP AG AC295 7-4

© SAP AG 2003

Service Charge Settlement: Business Scenario

Carry out the process required for the service charge settlement as follows:

Create the infrastructure for the service charge settlement

Post apportionable costs

Perform the actual service charge settlement

Adjust advance payments

Your company is charged for costs of: water, electricity, property taxes, and waste collection. You want to pass on these costs to your tenants. You have made individual agreements with each tenant, for example:

The tenant does or does not share in costs.

The tenant shares in the costs, but only pays for costs that exceed a specified amount. Or the tenant pays a flat fee regardless of the actual costs.

Tenants regularly make advance payments to cover costs, and these advance payments are cleared against the actual costs when the final settlement is performed. Or tenants pay only at the time of the final settlement.

Costs are distributed to the different tenants based on various criteria, such as:

Area

Actual consumption

Number of persons

Once a year you carry out a settlement of all costs that were charged in that year. During this process, you need to take vacancies and mid-year tenant changes into account. It is possible that the parameters related to the distribution of costs may have changed at some point (for example, an increase in the number of persons or the amount of space leased out).

© SAP AG AC295 7-5

© SAP AG 2003

Service Charge Settlement - Process

You are charged for operating costs, and you post the vendor invoice.

You pay the invoice, but would like to pass the costs on to yourtenants as agreed.

You have to apportion the costs to your tenantsin accordance with their contracts:

Which rental objects are affected by the costs?Are there occupancy contracts (internal or external rental) for the ROs?How should the costs be distributed (according to area, consumption, other measurements)?How do the tenants share in the costs?(Are there contractual agreements?)

You distribute the costs to the tenants or objects and clear them with any advance payments that were made.

Your tenants receive information on the final settlement, and advance payments are adjusted accordingly.

© SAP AG AC295 7-6

© SAP AG 2003

RE Navigator



Find Object

Resubmission

Appointment Calendar

Information System


Subordinate Objects

Address

Measurements


Pooled Spaces

Rental Units


1000/1000/11000/1000/21000/1000/3

Object Overview

Building


© SAP AG AC295 7-7

© SAP AG 2003

Scenario: Sharing in Costs

Parking lot

Electricityfor offices

Propertytax

Water

All office spaces

All objects

Cleaning of parking lot

All apartments

Parking lot

Ground floor

First floor

Administration building

Residential building

You use the participation group to group together rental objects participating in a service charge settlement. You can use the participation group as a reference for the service charge settlement and address each group of rental objects individually.

The participation group is a group of rental objects that participate in a particular settlement.

Example: Charges for water are only relevant for the apartments. You define a participation group containing just these rental objects.

The following objects can be assigned to participation groups:

- Rental objects

- Business entities

- Buildings

- Property

- Participation groups

If objects containing rental objects are assigned, these rental objects are automatically assigned to the participation group. This means that if a building is assigned to the participation group, all the rental objects contained in it are also automatically assigned.

Individual pooled spaces with or without rental spaces can be assigned to the participation groups.

Individual rental spaces can also be excluded.

Participation groups can be created individually or regenerated/changed within a settlement unit.

© SAP AG AC295 7-8

© SAP AG 2003

Settlement Participation

Participation Group

Special agreement

for example, flat rate

PostingPosting

PostingPosting

PostingPosting

PostingPosting

PostingPosting

Rental Object 1

Rental Object 2

Rental Object 3

Automatic!Tenant

Pays share of costs,clearing against AP

TenantPays only amount agreed contractually, does not pay share of costs

Cost Center Vacancy

Cos

ts

The participation group specifies if the rental object participates in service charge settlement. All rental objects that are assigned to a participation group participate in the distribution of costs.

If there is no occupancy contract for a rental object, then the costs are posted either to the rental object, or to the cost center for vacancy costs (if it is entered in the posting parameters).

If there is an occupancy contract for the rental object, then the costs are automatically passed on to the tenant.

If the tenant is not supposed to share in the costs that arose on the rental object, there are two possible ways of handling this:

You can delete the rental object from the participation group. Then all service charges are apportioned to the remaining rental objects in the participation group.

You can specify in the real estate contract that the tenant does not share proportionally in costs. Instead, the tenant could pay a consistent flat rate, or only be obligated to pay costs up to a defined limit. The system nonetheless calculates the share of costs that arose on the rental object, but this share of costs is not charged to the tenant. The tenant pays only the amount that was agreed on.

If there are no other special contractual agreements, then the rental object participates in service charge settlement.

© SAP AG AC295 7-9

© SAP AG 2003

Scenario: Settlement Units

per m²

Total area

per m² of total area

Electric

Full electricity

Lighting onlyPer parking space

per Unit

Parking spaces(Number)

Waste collection

Room capacity in persons

Water consumption

Usable space

© SAP AG AC295 7-10

© SAP AG 2003

Settlement Settlement UnitUnit

for company codefor company code

The Settlement Unit

WHAT?Which costs?

In the System:

Choose service charge key

e.g. 200 – Water 40 – Recycling

WHO?Who participates in the SCS?

In the System:

Assign participation group

e.g. ALL RENTAL OBJECTS ALL PARKING LOTS

WHEN?For what time period?

In the System:

Enter settlement period and variant

e.g. 01/01/2000 – 12/31/2000,annual, German tenancy law

HOW?Using what criteria?

In System:

Enter measurement (meas. type + meas. unit), percentage, purpose

e.g. Number of persons + units, 100%, landlord-tenant

Apportionment units

The tenant pays for service charges in addition to rent if this is specified in the lease. These service charges could include: property tax, water, sewage, elevator, street cleaning and waste collection, house cleaning and pest control, landscaping and gardening, lighting, furnace maintenance, insurance, common satellite dish or cable service, laundry room, and so on.

The settlement unit determines the apportionment of: Which costs (service charge key) To which rental objects (participation group) During what time period (settlement period) In what manner (measurement amount)

Before you can set up the infrastructure data for service charge settlement, you need to have already created the following master data: business entity, building or property, rental object.

Normally you create settlement units per business entity. Creating participation groups:A participation group specifies a set of rental objects to which the costs of a settlement unit are distributed. A participation group can be used in any number of settlement units. At any given point in time during the settlement period, only one participation group is assigned to the settlement unit.

The settlement unit thereby specifies how service charge costs are distributed (that is, this specification applies as long as no other agreements were made on a real estate contract of the lease-out type). You can make these kinds of special agreements, which are dependent on the contract, in the conditions and in the settlement participation data on the contract.

The system posts the vendor invoices which are sent to tenants for service charges in Financial Accounting (FI). For this posting, you enter the additional account assignment, the key of the settlement unit, and a date (from this date the system determines the settlement period).

© SAP AG AC295 7-11

© SAP AG 2003

7/1/03-06/30/047/1/04-06/30/057/1/05-06/30/06

7/1/03-06/30/047/1/04-06/30/057/1/05-06/30/06

Cost Collector for Settlement Unit

Settlement Variant Valid-From Date of SU

A001 Yearly 1/1 – 12/31A002 Yearly 7/1 – 6/30

A001 Yearly 1/1 – 12/31A002 Yearly 7/1 – 6/30

Date the participation groupwas first assigned

Date the participation groupwas first assigned

Settlement Periods1/1-12/31/20031/1-12/31/20041/1-12/31/2005

1/1-12/31/20031/1-12/31/20041/1-12/31/2005

The system uses the settlement variant and the valid-from date of the settlement unit (first assignment to a participation group) to derive the settlement periods of a settlement unit.

Examples of settlement variants:

A001: Yearly such as, for operating costs

A002: Yearly 7/1-06/30 such as, for heating costs

Cost collectors collect the costs of a concrete period for a settlement unit.

When an invoice is received that relates to service charges, you have to enter the settlement unit and a settlement reference date when posting the invoice. The system then identifies the cost collector that belongs to this settlement reference date, and updates the values posted to that cost collector.

© SAP AG AC295 7-12

© SAP AG 2003

Master Settlement Unit

Settlement unitSettlement unit(street(street--cleaning)cleaning)

Settlement unitSettlement unit(garbage)(garbage)

Distribution by:Apportionment unitEquivalence figuresFormula for calculating the hot water share

Master SU(street-cleaning(

and garbage)

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:

Measurement

Equivalence figures

Percentage distribution

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.

© SAP AG AC295 7-13

© SAP AG 2003

Cost Object Settlement Unit (SU)

SU: heating expenses

Cost object SU: heating oil

Cost object SU:heater maintenance

Cost object SU: power for heating

Costs

Costs

Costs

Settlement

Cost object SUs can be defined within settlement units.

In contrast to the master settlement unit, here costs can be posted in detail to the relevant cost object SUs. Settlement takes place via the settlement unit that contains these SUs.

Cost object SUs can be used to perform external heating expenses settlement, thereby replacing the heating system of classic RE.

The external heating expenses settlement does not need to be linked with it. You can also perform the operating costs settlement with it.

© SAP AG AC295 7-14

© SAP AG 2003

Settlement Unit for Data Medium Exchange

External settlement company

A-tapeComparison ofevaluation groups(consumer numbers)

A-tapeComparison ofevaluation groups(consumer numbers)

D-tapeSettlementresults

D-tapeSettlementresults

M/L-tapeTenant/owner data

Settlement periodConditionsSum of advance payments and flat-rate payments

M/L-tapeTenant/owner data

Settlement periodConditionsSum of advance payments and flat-rate payments

Settlement units for data medium exchange must be defined for external heating expenses settlement to be possible. An M/L-tape can be generated and a D-tape must be imported for objects of this settlement unit. Then you can perform the settlement in conjunction with cost object settlement units.

Information is exchanged with the settlement company by data medium exchange.

A-tape Using the A-tape created by the settlement company, the system compares the evaluation groups. The consumer numbers from your organization (for example, contract number, tenant number) are assigned to the equivalent evaluation groups in the settlement company. Use the standardized layout sets to inform the settlement company about your consumer numbers.

M/L-tape At the end of every settlement period you create the M/L-tape and make it available to the settlement company. This tape contains all data on the heating expenses settlement relevant for the settlement company. The data is taken from the master data for the contract, rental object and the SU for data medium exchange.

D-tape The settlement company makes the settlement results available to you on the D-tape. Import this data into your system. You can also enter the data manually. It does not have to be transferred by data medium exchange.

© SAP AG AC295 7-15

© SAP AG 2003

Costs Directly Assigned to Contract

Settlement participation for real estate contract RE-FX account symbol Account for directly

assigned costs

Settlement Unit:

Service charge key assigned account symbol for credit posting

Rental objects are assigned to a participation group

Posting of costswith direct assignmentto lease-out with reference to the rental object (using reference date)

Costs directly assigned to the contract can be reported in service charge settlement and passed on to the tenant.

For this, a service charge key must be defined as follows: The service charge key must be assigned an account symbol of RE-FX account determination, from which the credit posting is derived.

RE-FX-specific account properties must be assigned to the account which should be used for the expense posting.

The expense posting must be entered in Financial Accounting with assignment of the relevant lease-out. You also need to enter the rental object and a reference date.

© SAP AG AC295 7-16

© SAP AG 2003

Apportioning by Consumption

Rental Rental object 1object 1





Meter

Meter

Meter

Meter

Meter

Meas. pt 2 Start: 0 m3 End: 17 m3





Total costs

23 / 104

17 / 104

25 / 104

19 / 104

20 / 104

For you to be able to do a service charge settlement according to consumption, meters must be assigned to the participating rental objects.

Measurement documents must be entered for the meters, then these are used as the reference for the apportionment.

For this to be possible, the measurement type must be defined as consumption-relevant and a characteristic must be defined in Customizing. The characteristic must be assigned to this measurement type.

You can also have a combination of consumption-dependent apportionment and apportionment by area (for example: 40% by consumption and 60% by area).

© SAP AG AC295 7-17

© SAP AG 2003

Apportionment ofApportionment ofService ChargesService Charges

Where Do You Enter Which Parameters?

Settlement unitService charge keySettlement variantMeasurement TypeParticipation Group

Rental objectEnter measurement amount (such as amount of usable space, numberof persons, number of parking spaces)

Real Estate contractDefine special agreements for participation in SCS

Specify condition types:→ Advance payments, against which service charges are cleared, OR→ Flat rates

Participation GroupA participation group groups together rental objects that participate in the settlement of one settlement unit.

You specify the following in the settlement unit:

The service charge key (you defined service charge keys in Customizing)

The measurement type (you defined measurement types in Customizing)

The purpose of the apportionment (choose a predefined value)

The participation group and the date the validity period begins for the participation group (you either use an existing participation group, or create a new one here - participation groups are defined in the application) You can enter only one participation group for a given validity period. If a new validity period begins that is assigned to a different participation group, then the new participation group replaces the previous participation group. Example: 01/01/2001 - Participation group 1 06/01/2001 -Participation group 2 Starting on June 1, 2001, service charges are settled for participation group 2.

In the rental object, you enter the measurement types that the service charge settlement uses for distributing the costs.

In the real estate contract for the rental object, you enter:

Whether or not the proportional costs belonging to the contract should be passed on to the tenant

Whether or not tenants make advance payments or pay flat rates for service charges

Any special arrangements (for example, only 50% of costs are passed on to the tenant, or only costs up to a maximum of €100)

© SAP AG AC295 7-18

© SAP AG 2003

Prerequisites – Checklist for Settlement

Was master data created for SCS?Participation group (Are all rental objects assigned?)

Settlement unit

Cost collectors:Were they generated?

Were costs posted to the cost collectors?

Lease-out:Is it active?

Were special agreements for settlement participation defined (if needed)?

Rental object:Are measurement amounts maintained?

Has periodic posting been performed?

What steps are necessary for successfully performing service charge settlement?

Example scenario:

In August 2002 an elevator is installed in Building 1. The operating costs and ongoing maintenance costs for the elevator are apportioned to all tenants in the building on the basis of area. The settlement period is the calendar year, the same as for the other settlement units in this business entity.

August 2002:

Create settlement unit (SU) with participation group "Building 1" (create as new if it does not already exist). Assign participation group to SU starting on August 1, 2002, with settlement variant "calendar year."

Generate cost collector for 2002.

Check whether any special agreements were made with specific tenants. If so, they have to be entered explicitly in the settlement participation of the contract. It might be necessary to define an advance payment condition on the contracts, or modify an existing one.

Make sure that a measurement amount is entered on all rental objects for the measurement type used for apportionment.

August 2002 – December 2002:

Post ongoing costs for the elevator to the SU.

Perform periodic posting at the end of each month.

(If the company code opts to pay sales tax on contracts, perform option rate determination for rental objects and occupancy contracts at the end of the month.)

© SAP AG AC295 7-19

© SAP AG 2003

Internal Process for Service Charge Settlement

The system

Determines settlement hierarchy

Determines measurement amounts (reference factors)

Reads costs on settlement units

Determines advance payments

Distributes costs

Calculates credits/receivables

Generates correspondence

Posts costs to Financial Accounting

Determines the settlement hierarchy:Here the system determines the selected settlement units and the rental objects assigned to them. If a rental object of the type pooled space is assigned, then all rental spaces belonging to the pooled space are also assigned, even if they are not explicitly assigned to the participation group concerned. In addition, the system checks which real estate contracts of the lease-out type are assigned, and which rental objects are vacant. The system also checks if individual settlement units were selected, which, due to the definition of the conditions on the contract, cannot be settled separately. If any are found, the selection is increased.

Determines measurement amounts: Here the system determines the amount to be apportioned by multiplying the measurement amount by the number of days occupied or the meter reading.

Costs on settlement unit: Here the system also determines the direct costs on the rental objects and real estate contracts of the lease-out type.

Distributes the costs: Here the system determines the share of costs that is due for each individual rental object or contract. Any input tax correction is also determined in this step.

Posts costs to Financial Accounting: The system now creates posting records.

If errors occur, you only have to repeat the step in which the error was actually caused.

© SAP AG AC295 7-20

© SAP AG 2003

General Ledger

Posting Processes – Service Charge Settlement (1)

Bal

. She

et

Acc

ount

sP

/L A

ccou

nts

Revenues

Subsidiary LedgersSubsidiary LedgersV

endo

rs VendorPayables

Cus

tom

ers

Mayer

Lopez

Wilde

Olsen

Receivables

Expense

REC Clearing Clrg REC w/o AllocationRO Clearing

Credit Account

2190.- (1)2190.- (1)

(1) 2190.- SU

Reconciliation Accts

1. Posting of service charges incurred When the service charge settlement is 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 FI postings (a debit posting always triggers a debit account assignment). This is not clearly indicated in subsequent slides due to lack of space.

© SAP AG AC295 7-21

© SAP AG 2003


General Ledger

Bal

. She

et

Acc

ount

sP

/L A

ccou

nts

Revenues

Subsidiary ledgersSubsidiary ledgersV

endo

rs VendorPayables

Cus

tom

ers

Mayer

Lopez

Wilde

Olsen

Receivables

Expense


Credit Account

2190.- (1)2190.- (1)

(1) 2190.- SU


2190(2) SU

(2c) 16.- RU 1(2c) 366.- RU 2

(2a) 200.- REC Mayer(2a) 514.- REC Lopez(2a) 365.- REC Wilde

(2b) 729 REC Olsen

1. Posting of costs incurred

2. Credit settlement unit and cost element

a) Can be further allocated to contracts

b) Cannot be allocated further, but result of special agreements (flat rate)

c) Contracts cannot be assigned (vacancy)

The cost account and cost collector of the settlement unit are offset using a credit account.

The offsetting entries are a result of the distribution determined by the settlement and are posted in the following manner:

Costs that are passed on to the tenant have account assignment to the contract and are posted to a "Real Estate Contracts (REC) clearing account."

Costs (flat rates, percentage transfer to landlord) that are not to be allocated to tenants due to agreements in the contract are also assigned to the contract but posted to an "REC (contracts) clearing account without allocation."

The costs incurred that do not relate to lease-outs (vacancy) are accounted to rental units and posted on a "rental unit clearing account."

© SAP AG AC295 7-22

© SAP AG 2003


General Ledger

Bal

. She

et

Acc

ount

sP

/L A

ccou

nts

Revenues

Subsidiary ledgersSubsidiary ledgersV

endo

rs VendorPayables

Cus

tom

ers

Mayer

Lopez

Wilde

Olsen

Receivables

Expense


Credit account

2190.- (1)2190.- (1)

(1) 2190.- SU


2190.- (2) SU

(2c) 16.- RU 1(2c) 366.- RU 3

(2a) 200.- REC Mayer(2a) 514.- REC Lopez(2a) 365.- REC Wilde

(2b) 729.- REC Olsen

(2a) 200.- REC Mayer(2a) 514.- REC Lopez(2a) 365.- REC Wllde

(3) 200.-

(3) 514.-

(3) 365.-

200.- (3) REC Mayer514.- (3) REC Lopez365.- (3) REC Wilde

1. Posting of costs incurred

2. Credit settlement unit and cost element

a) Can be further allocated to contracts

b) Cannot be allocated further, but result of special agreements (flat rate)

c) Contracts cannot be assigned (vacancy)

3. Debit 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 a revenue posting made to the corresponding lease-outs.

© SAP AG AC295 7-23

© SAP AG 2003

General Ledger

Bal

ance

she

et

acco

unts

P/L

acc

ount

s

Subsidiary LedgersSubsidiary LedgersC

usto

mer

s CustomerReceivable

AP revenue SCS revenue

150

AP operating costs 3 x € 150 Receivable from SCS € 64

150150

150150150

150150150

64

64

64

Receivables from sttlmt € 514 Advance payments paid € 450Receivable from SCS € 64

Periodic Posting of AP as Revenue

If condition type advance payment is defined as revenue, only the peak is posted as the settlement result. Therefore, in the example above, the AP (3 x € 150 = € 450) is subtracted from the overall result (€ 514). This means that, as the "peak", € 64 would be posted as the receivable.

There is no difference between the PLANNED and ACTUAL principle.

© SAP AG AC295 7-24

© SAP AG 2003

Periodic Postings and Incoming Payments (with SC)

Periodic Payments:Basic rent 500AP Operating Costs 150

Incoming payment:Incoming payment 650

General Ledger

Bal

ance

She

et

Acc

ount

sBasic Rent Revenue

Subsidiary LedgerSubsidiary Ledger

Customer Receivables Cash Receipts

AP Requests Advance Payments

500500 500500 650

150 JJ 150 150 K

Reco

ncilia

tion

Acco

unt

Reco

ncilia

tion

Acco

unt

Reco

ncilia

tion

Acco

unt

500

150 J

150 K

J 150

Only special G/L transactions that are designated as payable are offset by 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 during settlement (service charge settlement, sales-based rent settlement) with the settlement results. The K items are therefore not to be paid.

The special G/L indicators in the subsidiary ledger are used to 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 is not to be executed.

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

© SAP AG AC295 7-25

© SAP AG 2003

SCS: Clearing Advance Payments (1)

Tenant has paid all the the advance payments (before transfer posting)

Receivables from service charge settlement € 514AP Operating Costs 3 x 150 Advance Payments Paid 450

General Ledger

Bal

ance

She

etA

ccou

nts

P/L

A

ccou

nts

SCS Revenue




514 514 150150150

150 J150 J150 J

J 150J 150J 150

150 K150 K150 K

Reco

ncilia

tion

Acco

unt

Reco

ncilia

tion

Acco

unt

Reco

ncilia

tion

Acco

unt

514

150 J150 J150 J

150 K150 K150 K

J 150J 150J 150

The figure shows the account balance after periodic posting and the incoming payments for advance payments. The tenant has paid the advance payments in full. The tenant share of the service charges is 514.

© SAP AG AC295 7-26

© SAP AG 2003

Clearing Advance Payments (2)

Tenant has paid all the the advance payments (before transfer posting)


General Ledger

Bal

ance

S

heet

Acc

ount

sP

/L

Acc

ount

sSCS Revenue




514 514 150150150

150 J150 J150 J

J 150J 150J 150

150 K150 K150 K

514

150 J150 J150 J

150 K150 K150 K

J 150J 150J 150

450 450

Balance

450

450Balance = 0 Balance = 0

Receivables from stlmt 514.-Credits from transferposting - 450,-

Balance for tenant: 64.-

The figure 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: Share of service charges: € 514, credit from transfer posting 450, balance for tenant 64.)

© SAP AG AC295 7-27

© SAP AG 2003

Clearing Advance Payments (1)

Tenant has NOT paid all advance payments (before transfer posting)


General Ledger

Bal

ance

She

et

Acc

ount

sP

/L

Acc

ount

sSCS Revenue




514 514 150150

150 J150 J

J 150J 150J 150

150 K150 K150 K

Reco

ncilia

tion

Acco

unt

Reco

ncilia

tion

Acco

unt

514

150 J150 J

150 K150 K150 K

J 150J 150J 150

Balance

The figure shows the account balance after periodic posting and the receipt of the advance payments for service charges. The tenant has NOT paid the advance payment in full. The tenant share of the service charges is 514.

© SAP AG AC295 7-28

© SAP AG 2003

Clearing Advance Payments – Actual Principle

Tenant has NOT paid all advance payments and settlement takes place based on actual advance payments made (accounts shown after transfer posting)


General Ledger

Bal

ance

She

etA

ccou

nts

P/L

A

ccou

nts

SCS Revenue




514 514 150150

150 J150 J150 J

J 150J 150J 150

150 K150 K150 K

514

150 J150 J150 J

150 K150 K150 K

J 150J 150J 150

300 300

Balance

450 K

450

Receivables from sttlmt 514.-Credits from transferposting - 300.-No open items (AP)Balance for tenant: 214.-

Debit AP


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: Share of service charges: € 514, credit from transfer posting 300, balance for tenant 214.)

© SAP AG AC295 7-29

© SAP AG 2003

Clearing Advance Payments – Planned Principle

Tenant has NOT paid all advance payments and settlement takes place based on the advance payments posted in the periodic posting run (accounts shown after transfer posting)


General Ledger

Bal

ance

She

et

Acc

ount

sP

/L

Acc

ount

s

SCS Revenue




514 514 150150

150 J150 J

J 150J 150J 150

150 K150 K150 K

514

150 J150 J

150 K150 K150 K

J 150J 150J 150

450 450

Balance

450 K

450

Receivables from stlmt 514.-Credits from transferposting - 450.-Open items (AP)Balance for tenant: 214.-

Debit AP

Balance = 0


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). This method can also be beneficial for sales settlement if legal proceedings have already been initiated for advance payments that are in arrears, and payments are not to be cleared in the settlement for this reason.

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: Share of service charges: € 514, credit from the transfer posting 450, open items from advance payments 150, balance for tenant 214)

© SAP AG AC295 7-30

© SAP AG 2003

Total of all costs:

System reads costs of settlement unit (in the example, 2190.00).

Costs per reference unit and day:

Total costs ÷ Total reference amount (2190 ÷ 109,500 = 0.0200 per day and m²)

Costs per REC/RU:

Reference factor REC/RU x Costs per day and m²

Example: Calculation of Costs per REC/RU

150 m²243 x12/3105/03Olsen150 m²122 x05/0201/01VacancyRO 3

50 m²365 x12/3101/01WildeRO 2100 m²257 x12/3104/19Lopez100 m²8 x04/1804/11Vacancy100 m²100 x04/1001/01MayerRO 1

Meas.Amt (Usable Space)

Days xToFromTenantRental Object

36,45018,30018,25025,700

80010,000

= Reference Factor REC/RU

(m²)

Total Reference Factor:

∑ 109,500

Trial Amount:

∑ 2,190.00

x 0.02

729.00366.00365.00514.00

16.00200.00

Costs per REC/RU

© SAP AG AC295 7-31

© SAP AG 2003

Customizing – Basic Settings

Settings dependent onCompany codeUsage type

Settlement parameters:Define settlement schemaDefine settlement variant

Define service charge key

Assign condition typesAccount propertiesFlow types for relationship keys 110 and 120

© SAP AG AC295 7-32

© SAP AG 2003

Advantages of Service Charge Settlement

Settlement of contracts with multiple objects

Settlement to rental objects and contracts

Settlement in steps, with the option of beginning again at the end of any step

Extensive simulation function with reports

Storing of results without having to post

Alternative measurements for different apportionments during simulation (for example, meter readings not yet available)

Special agreements between tenant and landlord

© SAP AG AC295 7-33

© SAP AG 2003

Service Charge Settlement: Summary

You are now able to

Describe the service charge settlement processIndividual steps in this process are:

Creating the infrastructure

Posting vendor invoices

Performing service charge settlement

List the factors influencing the service charge settlement

Describe possible postings

© SAP AG AC295 7-35

Exercises

Unit: Service Charge Settlement Topic: Service Charge Settlement Infrastructure,



• Set up the infrastructure necessary for service charge settlement

• Post vendor invoices

• Describe the service charge settlement process

• Simulate and execute service charge settlement

• Describe the relevant postings

Your enterprise receives invoices for water, electricity, property tax and garbage removal. These costs are to be passed on to your tenants. Your external tenants, like internal tenants, make advance payments that are settled during service charge settlement.

The costs are distributed proportionally to the tenants based on varying criteria, such as the number of parking spaces, the amount of consumption, or the area of the space rented.

You settle service charges annually. You should take into consideration the fact that not all tenants occupy the office space for the entire settlement period. Also parameters for the distribution of costs can change during that time. For example, the number of persons using a space could increase, or the area of the rented space could be augmented.


1 Create participation groups.

1-1 Create a participation group for your administrative building: The first participation group for your business entity 1## is called VERW and contains all the rental objects of the administrative building. Assign your building 1000/1##/1 to this. Enter a name for your participation group.

1-2 The second participation group for your business entity is called PARK and contains the parking spaces of your business entity. Assign your property to this. Enter a name for this participation group.

© SAP AG AC295 7-36

1-3 The third participation group for your business entity is called WOHN and should contain all apartments. Assign your residential building 1000/1##/2 to this and give it a name.

© SAP AG AC295 7-37

1-4 The last participation group for your business entity is called ALLE and should contain all the objects of the two buildings. Assign the two participation groups that your buildings represent. Also enter a name for it.

2 Create settlement units.

2-1 Create a settlement unit to distribute water costs to your apartment tenants. Use service charge key 1200 for this. Identify the settlement unit as WATER and assign it as valid from January 1 of last year. In the posting parameters, define 9100 as the business area and 1480 as the profit center. Assign participation group WOHN from January 1 of last year. The apportionment should be 30% by residential/usable space (A200) and 70% by consumption (U001). Generate the cost collector for last year.

2-2 Create a settlement unit to distribute garbage costs to your apartment tenants. Use service charge key 1600 for this. Specify the identification MUELL and assign it as valid from January 1 of last year. In the posting parameters, define 9100 as the business area and 1480 as the profit center. Assign participation group WOHN from January 1 of last year. The apportionment should be by residential/usable space. Generate the cost collector for last year.

2-3 Create a settlement unit to pass on parking lot cleaning costs to your parking lot tenants. Use service charge key 2301 for this. Specify the identification REINP and assign it as valid from January 1 of last year. In the posting parameters, define 9100 as the business area and 1480 as the profit center. Assign participation group PARK from January 1 of last year. The apportionment should be by number of parking spaces. Generate the cost collector for last year.

2-4 Create a settlement unit to distribute cleaning costs to your office tenants. Use service charge key 2300 for this. Specify the identification REINV and assign it as valid from January 1 of last year. In the posting parameters, define 9100 as the business area and 1480 as the profit center. Assign participation group VERW from January 1 of last year. The apportionment should be by room capacity in persons. Generate the cost collector for last year.

2-5 Create a settlement unit to distribute the costs of property tax to all tenants in the buildings. Use service charge key 1000 for this. Specify the identification GRST and assign it as valid from January 1 of last year. In the posting parameters, define 9100 as the business area and 1480 as the profit center. Assign participation group ALLE from January 1 of last year. The apportionment should be by residential/usable space. Generate the cost collector for last year.

© SAP AG AC295 7-38

3 Create a master settlement unit.

3-1 Create a master settlement unit to distribute the costs for garbage and cleaning (which you receive as an invoice). Use service charge key 1550 for this. Identify the settlement unit as VVAE and assign it as valid from January 1 of last year. In the posting parameters, define 9100 as the business area and 1480 as the profit center. Assign the settlement units for garbage (service charge key 1600) and cleaning (service charge key 2300). Distribute the costs in the ratio of 1:3. Generate the cost collector for last year.

4 View the settlement participation of the contract for your janitor’s apartment.

5 Post vendor invoices.

5-1 Post an invoice for water to G/L account 470400 and perform cost-accounting-relevant assignment to the WATER settlement unit (service charge key 1200). Check the reference date to make sure that the costs are relevant for the settlement period in question.

Use vendor account 3455, post with tax code VN and automatic tax calculation, and enter any amount as the invoice amount.

5-2 Post an invoice for parking lot cleaning to G/L account 470400 and perform cost-accounting-relevant assignment to the REINP settlement unit. Check the reference date to make sure that the costs are relevant for the settlement period in question.


5-3 Post an invoice for property tax to G/L account 470400 and perform cost-accounting-relevant assignment to the GRST settlement unit. Check the reference date to make sure that the costs are relevant for the settlement period in question.

Use vendor account 3454, post with tax code V0, and enter any amount as the invoice amount.

5-4 Post an invoice for cleaning and garbage to G/L account 470400 and perform cost-accounting-relevant assignment to the VVAE settlement unit. Check the reference date to make sure that the costs are relevant for the settlement period in question.


6 Perform periodic posting for your contracts through December of last year.

© SAP AG AC295 7-39

7 Enter meter and measurement documents. Start the RE Navigator.

7-1 Maintain a meter for your janitor’s apartment. Assign a meter to your janitor’s apartment with the characteristic name WASSERVERBRAUCH (for water consumption), enter janitor’s apartment as the position and description. Flag this characteristic as Counter.

7-2 Enter measurement documents for your meter. Use the entry option for this along with the rental object. For the janitor’s apartment

(measuring point), enter a start on 01.02.last year of 0 and a final reading on 31.12.last year of any value.

8 Simulate the operating cost settlement. Create a new settlement called NKA - GR ##. First, run a simulation of the internal service charge settlement without a subsequent final settlement. Perform the settlement with the planned principle, and allow all steps through to simulation of posting costs. Perform the settlement for YOUR business entity for last year. Enter today’s date as the document and posting date. The document header text should also be NKA - GR ##. Save your entries as a variant called GROUP ##. Check the logs and view the reports for the individual steps.

9 Perform a complete settlement. Take a look at the results. Use the various reports available for this.

10 Take a look at the results in the tenant account sheet and in the tenant account. Use the function for branching from the contract master record to the customer account for this.

© SAP AG AC295 7-40

Solutions

Unit: Service Charge Settlement Topic: Service Charge Settlement Infrastructure,



1 Create participation groups.

1-1 In the Navigation Area of the RE Navigator, change the display to Participation Group and choose (Create).



Company Code 1000

BE of Partic. Group 1##

Participation Group VERW

Part. Group Name Any text

Go to the Assigned Objects tab page and choose (Add Multiple Objects).

Double-click the Building entry, enter your building 1 in the selection screen, and confirm with (Start search).

Select your building and transfer your selection by choosing (Copy)


1-2 Choose (Create) again.



Company Code 1000


Participation Group PARK



Double-click the Property entry, enter your property 1 in the selection screen, and confirm with (Start search).

Select your property and transfer your selection by choosing (Copy)

© SAP AG AC295 7-41


1-3 Choose (Create) again.



Company Code 1000


Participation Group WOHN



Double-click the Building entry, enter your building 2 in the selection screen, and confirm with (Start search).

Select your building and transfer your selection by choosing (Copy)


1-4 Choose (Create) for the last time.



Company Code 1000


Participation Group ALLE



Double-click the Participation Group entry, then start the search in the selection screen with .

Select your participation groups VERW and WOHN and transfer your selection by choosing (Copy)


© SAP AG AC295 7-42

2 Create settlement units.

2-1 In the Navigation Area of the RE Navigator, change the display to Settlement Unit, choose (Create), select Settlement Unit, then continue with .



Company Code 1000

BE of SU 1##

Service charge key 1200

Settlement unit WATER

SU name Any text


Go to the Posting Parameters tab page and enter 9100 in the Business Area field and 1480 in the Profit Center field.

Go to the Participation Groups tab page and, in the upper screen area enter 01.01.last year in the Valid From field. Then, in the PartGrp field, enter the value WOHN and press ENTER.

Go to the Apportionment Rule tab page. In the lower screen area, change the entry in the App.% field to 30 and choose (Insert). In the second row of the Name of Purpose field, change the value to Landlord/Tenant Apportionment. In the App.% field, change the value to 70, then change the entry in the MeasType field to U001.

Go to the Cost Collector tab page, select the Period start row that matches 01.01.last year and choose (Generate Cost Collector).

Save your settlement unit by pressing Ctrl + S or (Save).

2-2 Choose (Create) again, select Settlement Unit, then continue with .



Company Code 1000

BE of SU 1##


Settlement unit MUELL

SU name Any text



© SAP AG AC295 7-43

Go to the Participation Groups tab page and, in the upper screen area enter 01.01.last year in the Valid From field. Then, in the PartGrp field, enter the value WOHN and press ENTER.






Company Code 1000

BE of SU 1##


Settlement unit REINP

SU name Any text



Go to the Participation Groups tab page and, in the upper screen area enter 01.01.last year in the Valid From field. Then, in the PartGrp field, enter the value PARK and press ENTER.

Go to the Apportionment Rule tab page and change the value in the MeasType field to M005.






Company Code 1000

BE of SU 1##


Settlement unit REINV

SU name Any text



© SAP AG AC295 7-44

Go to the Participation Groups tab page and, in the upper screen area enter 01.01.last year in the Valid From field. Then, in the PartGrp field, enter the value VERW and press ENTER.

Go to the Apportionment Rule tab page and change the value in the MeasType field to M001.






Company Code 1000

BE of SU 1##


Settlement unit GRST

SU name Any text



Go to the Participation Groups tab page and, in the upper screen area enter 01.01.last year in the Valid From field. Then, in the PartGrp field, enter the value ALLE and press ENTER.



© SAP AG AC295 7-45

3 Create a master settlement unit.

3-1 Choose (Create) again, select Master Settlement Unit, then continue with



Company Code 1000

BE of SU 1##


Settlement unit VVAE

SU name Any text



Go to the Apportionment Rule tab page and, in the upper screen area, enter the value A001 in the SettVariant field.

In the lower screen area, choose (Insert) and enter the following data:


CoCode 1000

BE 1##

SCK 1600

Settl.Unit MUELL

Equiv. no. 1

Choose again and enter the following data:


CoCode 1000

BE 1##

SCK 2300

Settl.Unit REINV

Equiv. no. 3

In the lower screen area, choose (Add Up Equivalence Numbers).



© SAP AG AC295 7-46

4 In the Navigation Area of the RE Navigator, change the display to My Objects and choose .

Expand the Real Estate Contracts entry by pressing the icon on the left of the entry and double-click the contract for your janitor’s apartment.

Go to the Settlement Participation tab page and view the new entries.

5 Post vendor invoices. In the SAP menu, choose: Accounting → Flexible Real Estate Management → Accounting → Single Documents → Enter Vendor Invoice (FB60)

5-1 Enter the following data:


Vendor 3455

Invoice date Today's date

Posting Date Today's date

Amount Any text

Tax code VN

G/L acct 470400

Amount in doc.curr. *

Company Code 1000

Business entity 1##


Settlement unit WATER

Reference date Date within the last year

Post this document by choosing (Post).

© SAP AG AC295 7-47



Vendor 3457



Amount Any text

Tax code VN

Calculate tax X

G/L acct 470400


Company Code 1000

Business entity 1##


Settlement unit REINP





Vendor 3454



Amount Any text

Tax code V0

G/L acct 470400


Company Code 1000

Business entity 1##


Settlement unit GRST



© SAP AG AC295 7-48



Vendor 3458



Amount Any text

Tax code VN

Calculate tax X

G/L acct 470400


Company Code 1000

Business entity 1##


Settlement unit VVAE



6 Perform periodic posting up to December of last year.




Company Code

1000







In the Posting area, ensure that the entry in the Posting Run Mode field is Update Run and that the entry in the Type of Posting Run field is Periodic Posting + Transfer. Change these entries if necessary.

Choose (Execute).


© SAP AG AC295 7-49

7 In the SAP menu, choose: Accounting → Flexible Real Estate Management → RE Navigator → RE Navigator (RE80)

7-1 In the Navigation Area of the RE Navigator, change the display to My Objects and choose . Expand the Rental Units entry by pressing the icon on the left of the entry.

Double-click your and choose (Changes Between Display <-> Change

In the top menu bar, choose Extras Meter.



Measurement position Janitor’s apartment

Char. Name WASSERVERBRAUCH (water consumption)

Description of measuring point

Janitor’s apartment

Counter X

Exit the maintenance with (Back) and save by choosing .

7-2 In the SAP menu, choose: Accounting → Flexible Real Estate Management → Service Charge Settlement → Master Data → Meter → Measurement Documents for Rental Object → Enter Meter Readings (FO8V)



Company Code 1000

Bus. entity 1##

Rental Unit 4

MeasTime 01.02. of last year


Place your cursor in the MeasPoint field and press F4, then confirm the entries with .

In the CounterRdgDifference field, enter the value 0 and press ENTER.

Change the default for new entries to 31.12.last year and choose New entries to be able to enter the final reading. Repeat the measuring point and enter any counter reading difference.

Save the measurement documents by choosing (Save).

© SAP AG AC295 7-50

8 In the SAP menu, choose: Accounting → Flexible Real Estate Management → Service Charge Settlement → Settlement → Execute/Continue Settlement (RESCSE)



Activity Create New Settlement

Title NKA - GR##

Settlement Method Simulation Only (Without Subsequent Actual Settlement)

Settlement type Internal Service Charge Settlement

Settlement Schema Planned Principle (all open APs)

Settlement Step Simulation of Posting Costs

Company Code 1000

BE of SU 1##

Settle To 31.12. of last year In the lower screen area, go to the Parameter tab page and enter today’s date as the Document Date, Posting Date, and Baseline date. In the Doc.Header Text field, enter NKA - GR##. Save these entries as a variant by choosing . Enter GROUP ## as the name and save with . Start the simulation by choosing (Execute). Check the logs by double-clicking a row in the upper screen area.

Check the reports by double-clicking a row in the lower screen area.

9 Perform a complete settlement. In the SAP menu, choose: Accounting → Flexible Real Estate Management → Service Charge Settlement → Settlement → Execute/Continue Settlement (RESCSE)

Choose (Get Variant…) and double-click the variant that you created earlier.

Change the entry in the Settlement Method field to Actual Settlement and the entry in the Settlement Step field to Posting of Costs in Financial Accounting.

Start the settlement by choosing (Execute).

10 Start the RE Navigator. In the SAP menu, choose: Accounting → Flexible Real Estate Management → RE Navigator → RE Navigator (RE80) In the Navigation Area of the RE Navigator, change the display to My Objects and choose

. Expand the Real Estate Contracts entry by pressing the icon on the left of the entry. Double-click your external commercial contract, go to the Partners tab page and choose

Account, then run the report with (Execute).

© SAP AG AC295 8-2

© SAP AG 2003


Explain the options available for a sales-based contract

List the steps required to carry out a sales-based settlement

List the different options for settlement

Explain the similarity between sales-based rents and the posting logic applied for advance payments

Sales-Based Contracts and Settlement: Objectives

© SAP AG AC295 8-3

© SAP AG 2003


Course Overview

Business Partner

Contract Management

Accounting



Master Data





Input Tax Treatment

© SAP AG AC295 8-4

© SAP AG 2003

Sales-Based Contracts and Settlement: Business Scenario

You have made sales-based rental agreements accompanied by the appropriate conditions with your tenants. The tenants report their sales in periodic intervals.

When a sales-based settlement is being used, payments are settled with the settlement result.

© SAP AG AC295 8-5

© SAP AG 2003

Sales ruleSpecification as to how/when sales-based rent is calculated

Flexible calculation rulesAny number of productsSettlement periodsCumulation of settlementsFinal settlementPeak settlement

Sales-Based Lease-Out

Clearing conditions:Sales-based rental postingMinimum rentSales-based advance rent paymentsMaximum rent

Functions:Regular settlement of sales-based rentsRegular sales reportsAdjustment of sales reportsAdjustment of the settlementCorrespondence

n:m

Reporting ruleSpecification as to when certain sales are to be reported(various products)

Flexible calculation rulesRegular sales revenuesPlanned sales revenuesStatistical sales revenuesCertified sales revenues

1:n

You can define multiple sales agreements for each lease-out.

You can maintain the sales agreements time-dependently.

The reporting intervals and settlement periods can be freely defined.

You can perform settlements using reported sales and make adjustments, for example, with certified sales.

The condition sales-based rent (statistical) must be assigned to the sales-based contract. This condition type has no amount and simply fixes subsequent postings, such as receivables from sales-based settlement.

Rules regarding advance payment for sales-based rent, minimum rent and maximum rent are defined as separate condition types. This means that an indexed minimum rent can be specified, too.

© SAP AG AC295 8-6

© SAP AG 2003

Sales-Based Contract with Several Reporting Rules

Reporting Rules (RR)RR1: Clothing

Sales report: monthlyCertified sales rev.: annually

RR2: FoodSales report: monthlyCertified sales rev.: annually

RR3: Tobacco salesSales report: quarterly

ConditionsMinimum rent: € 2,500 AP sales: € 1,500

You can define different sales report rules for each product in the contract (in Customizing).

You can make separate settlements by assigning different conditions to every reporting rule.

You can also assign any number of reporting rules to a sales rule and the corresponding conditions so that only one sales-based settlement is required.

© SAP AG AC295 8-7

© SAP AG 2003

Sales-Based Contract with Sales Gradings

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 x 2.20% = € 770 € 20,000 x 2.00 % = 400 + € 10,000 x 2.10 % = 210 + € 5,000 x 2.20 % = 110

€ 35,000 = € 720

You can define gradings for each product that has a sales report rule.

Dependent on how the product is maintained in Customizing, gradings are quantity-based or amount-based.

Sales gradings can also be time-dependent. For example, you can specify in the contract that 12% of the sales revenues are generated by March 27 and 11.5% are generated as from March 28.

© SAP AG AC295 8-8

© SAP AG 2003

Sales Rules

Sales rule: stores 5% of the clothing sales revenue3% of the food sales revenue3% of the tobacco sales revenue

Settlement period:1 month

Cumulative settlement:12 months

Final settlement:1 year

Condition:Minimum rent: € 2,500 AP sales: € 1,500

Sales rules can group together reporting rules so that so only one sales-based settlement is required for the reports of several products.

In the sales rule, you define the settlement period, the cumulated settlement period, and the final settlement period. So, for example, you can settle quarterly and execute a final settlement annually using the certified sales revenues.

Reporting rules and conditions are assigned to the sales rule.

© SAP AG AC295 8-9

© SAP AG 2003

Steps Involved in a Sales Settlement

Contract with sales report rule, sales rule, and sales conditions

Enter sales reports

Determine contracts

Calculate sales-based rent

Process sales-based rent

Correspondence

Post sales-based rent to Financial Accounting

Perform final settlement with adjustment

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 reporting interval, a memo acts as a reminder.

After the final settlement, you cannot change any sales reports that have already been used.

© SAP AG AC295 8-10

© SAP AG 2003

Example: Periodic Settlement

3,000.00-1,000.003,000.001,500.00-500.00Deviation from the

minimum rent

16,500.003,000.006,000.004,500.003,000.00Sales-based rent due

-1,000.00

1,000.00

3,000.00

2,000.00

20,000.00

Q4

500.002,000.00500.00-1,000.00Credit balance (-) /

receivables

4,000.001,000.001,000.001,000.00./. Sales-based rent – AP

12,000.003,000.003,000.003,000.00./. Minimum rent

15,000.006,000.004,500.002,500.00Calculated sales-based

rent

150,000.0060,000.0045,000.0025,000.00Reported sales

TotalQ3Q2Q1

Example of a periodic settlement:(the settlement is performed on a quarterly basis)

Sales-based rent: 10% of the reported revenue

Minimum rent: € 1,000 / month

AP sales: € 1,000 / quarter

The above example shows the calculation of a sales-based settlement.

Sales revenues of € 25,000 are reported in the first quarter. This means that the settlement result has been calculated as € 2,500. The minimum rent for the quarter is € 3,000. Since € 1,000 has already been paid, the € 1,000 for this period is returned to the tenant.

Sales revenues of € 45,000 are reported in the second quarter. This means that the settlement result has been calculated as € 4,500. The minimum rent for the quarter is € 3,000, therefore there is a receivable of € 1,500. Since € 1,000 has already been paid, the tenant receives a bill in the amount of € 500 for this period.

Sales revenues of € 60,000 are reported in the third quarter. This means that the settlement result has been calculated as € 6,000. The minimum rent for the quarter is € 3,000, therefore there is a receivable of € 3,000. Since € 1,000 has already been paid, the tenant receives a bill in the amount of € 2,000 for this period.

Sales revenues of € 20,000 are reported in the fourth quarter. This means that the settlement result has been calculated as € 2,000. The minimum rent for the quarter is € 3,000. Since € 1,000 has already been paid, the € 1,000 for this period is returned to the tenant.

© SAP AG AC295 8-11

© SAP AG 2003

Example: Cumulative Settlement

1,000.00

0.00

3,000.00

9,000.00

13,000.00

13,000.00

130,000.00

Q1 – Q3

15,000.007,000.003,000.00Sales-based rent due

-2,000.000.00-1,000.00Credit balance (-) /

receivables

1,000.00-1,000.00./. Amnts from prev. periods

4,000.002,000.001,000.00./. Sales-based rent – AP

12,000.006,000.003,000.00./. Minimum rent

15,000.007,000.002,500.00Calculated sales-based rent

150,000.0070,000.0025,000.00Reported sales

Q1 – Q4Q1 – Q2Q1

Example of a periodic settlement:(the settlement is performed on a quarterly basis)

Sales-based rent: 10% of the reported revenue

Minimum rent: € 1,000 / month

AP sales: € 1,000 / quarter

The above example shows the calculation of a cumulated sales-based settlement.

Sales revenues of € 25,000 are reported in the first quarter. This means that the settlement result has been calculated as € 2,500. The minimum rent for the quarter is € 3,000. Since € 1,000 has already been paid, the € 1,000 for this period is returned to the tenant.

Sales revenues of € 45,000 are reported in the second quarter, which makes total revenues of € 70,000. This means that the settlement result has been calculated as € 7,000. The minimum rent for the half-year period is € 6,000, therefore there is a receivable of € 1,000. Since € 2,000 has already been paid, there should be credit of € 1,000. This credit is already available from the previous period, so the result is € 0.

Sales revenues of € 60,000 are reported in the third quarter, which makes total revenues of € 130,000. This means that the settlement result has been calculated as € 13,000. The minimum rent for this period is € 9,000, therefore there is a receivable of € 4,000. Since € 3,000 has already been paid, no credit and no receivables exist for the balance from the previous period, the tenant receives a bill in the amount of € 1,000 for this period.

Sales revenues of € 20,000 are reported in the fourth quarter, which makes total revenues of € 150,000. This means that the settlement result has been calculated as € 15,000. The minimum rent for this period is € 12,000, therefore there is a receivable of € 3,000. Since € 4,000 has already been paid, there should be credit of € 1,000. A receivable of € 1,000 is available from the previous periods, which makes a total credit of € 2,000 for the settlement from Q1 to Q4.

You can decide for each contract whether credit should be paid out.

© SAP AG AC295 8-12

© SAP AG 2003

Advance Payments Posted as Revenue

General Ledger

Bal

ance

she

et

acco

unts

P/L

acc

ount

s

Subsidiary LedgerSubsidiary LedgerC

usto

mer

s Customer AP receivable

AP revenue Sales-based settlement revenue

1000

AP operating costs 3 x € 1000 Receivables from sttlmt € 527

10001000

100010001000

100010001000

527

527

527

Receivables from sttlmt € 3527 Advance payments paid € 3000Receivables from sttlmt € 527

The posting for sales-based rent settlement is made in the same way as for the service charge settlement.

If the advance payment is defined as revenue, only the peak is posted as the settlement result (as receivable/credit).

© SAP AG AC295 8-13

© SAP AG 2003

General Ledger

Revenues

3527


Customer

3527

J 1000J 1000J 1000

1000 U1000 U1000 U

AP requests

Receivables

AP sales-based rent

1000 U1000 U1000 U

Cash receipts

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. € 3527 Credits from transferposting € 3000No open items (AP)Balance for tenant € 527

Bal

ance

she

et

acco

unts

P/L

ac

coun

ts

Reco

ncilia

tion

acco

unt

Advance Payments Posted as Down Payments

Receivables from sales reports € 3527 AP sales-based rent 3 x € 1000Advance payments paid € 3000

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.

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 the sales reports: € 3527, credit from transfer posting € 3000, balance for tenant € 527)

© SAP AG AC295 8-14

© SAP AG 2003

Sales-Based Contracts and Settlement: Summary

You are now able to

Describe the possibilities of defining sales gradings 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

© SAP AG AC295 8-15

Exercises

Unit: Sales-Based Contract and Sales-Based Rent Settlement

Topic: Sales-Based Contract, Sales Reports and Sales Settlement


• Create sales-based contracts

• Enter sales reports

• Carry out a sales-based rent settlement

You have drawn up sales-based contracts with your tenants. The tenants report their sales in periodic intervals. You carry out a sales-based rent settlement at the end of the settlement period. You use the reported certified sales to adjust the sales-based settlement that has already been carried out.

First, you should create a single sales-based contract and perform the settlement process.

1 Create a pooled space with usage type store.

Assign the pooled space to your Business Entity 1## and to Building 1 inside it.

Enter retail space as the name and assign January 1 of last year as the date of the first posting.

Assign the following measurement to your pooled space: Retail Space (A100): 300 m2

Define profit center 1430 (RE Store) in the organizational assignment in the posting parameters. Save your pooled space.

2 Create a real estate contract of the type commercial lease-out.

In the Company Code field, enter 1000, in the Tenancy law field, select German tenancy law, and enter a Name for your contract. Flag this contract as relevant to sales.




Extract 100 m2 retail space from the pooled space with the name retail space. Enter the name Retail space 100m2 – EG.


© SAP AG AC295 8-16

Use the Wizard to define the following sales agreement:

Field Content

Sales Rule Name 10% for complete assortment

Reporting Frequency – Frequency Start

01.01. of last year

Reporting Frequency – Frequency 3 months

Settlement Frequency - Frequency 12 months

Sales Grading - % rate 10

Check and confirm your entries.

Assign the following conditions to your sales rule:


Unit Price


Sales-based rent Com. Space m2 Determined automatically

Minimum sales rent Fixed amount 1.000 Determined automatically

Advance payment sales rent revenue

Fixed amount 500 Determined automatically

Activate your contract and save it.

3 Perform periodic posting for the sales-based contract for December of last year.

4 Enter the sales reports for your contract for last year. Use the object selection functions for this.

Enter the following values:

Report from Report To Net

01.01. of last year 30.03. of last year 44.000



01.10. of last year 31.12. of last year 46.000 View the reports entered in the contract.

© SAP AG AC295 8-17

5 Simulate sales-based settlement and then execute it. Use the object selection functions for this.

Change the settlement title to Settlement 01 – Group ##.

Perform all the settlement steps up to Simulation of Posting Costs.

First, you should simulate the settlement for last year.

View the results report of the sales-based settlement.

Exit the report.

Enter additional posting data in the parameters. The posting date and document date should be today’s date. The document header text should be Settlement 01 - Group ##.

For all the settlement steps, perform the settlement again in the update run.

Display the posting log.

Display the customer account.

In the following exercises, you will create a more complicated sales-based contract and perform the settlement process including final settlement.

6 Create another real estate contract of the type commercial lease-out.


Flag this contract as relevant to sales.




Extract 150 m2 retail space from the pooled space with the name retail space. Enter the name Retail space 150m2 – EG.


Define the following sales report rules: Foodstuffs sales should be reported each quarter. The certified sales should be reported annually. Call this report rule Foodstuffs.

Tobacco sales should be reported every six months. The certified sales should be reported annually. Call this report rule Tobacco.

Define the following sales rules: The rent should amount to 10% of the reported foodstuffs sales.

© SAP AG AC295 8-18

The following sales grading should be defined for tobacco sales:

Sales from Sales To % rate

0 50.000 11

50.000 100.000 10,5

100.000 9,5

The settlement should be performed every six months. The final settlement should be annual.

Assign the following conditions to your sales rule:


Unit Price


Sales-based rent Com. Space m2 Determined automatically

Minimum sales rent Fixed amount 500 Determined automatically

Advance payment sales rent revenue

Fixed amount 500 Determined automatically

Activate your contract and save it.

7 Perform periodic posting for the sales-based contract for December of last year.

8 Enter the sales reports for your contract for last year. Use the object selection functions for this.


Report from Report To Net RepRuleNo. SType Name

01.01. of last year 31.03. of last year 21.000 10 Foodstuffs




01.01. of last year 30.06. of last year 15.000 20 Tobacco

01.07. of last year 31.12. of last year 22.500 20 Tobacco

© SAP AG AC295 8-19

9 Simulate sales-based settlement and then execute it. Use the object selection functions for this.

Change the settlement title to Settlement 02 - Group ##.


First, you should simulate the settlement for the whole of last year.


Exit the report.

Enter additional posting data in the parameters. The posting date and document date should be today’s date. The document header text should be Settlement 02 - Group ##.

For all the settlement steps, perform the settlement again in the update run.

Display the posting log.

10 Enter the certified sales for your contract for last year. Use the object selection functions for this.


Report from Report To Net Name of Sales Type

01.01. of last year 31.12. of last year 82.000 Foodstuffs

01.01. of last year 31.12. of last year 51.000 Tobacco

11 Simulate final settlement and then execute it. Use the object selection functions for this.

Change the settlement title to Final Settlement Group ##.


First, you should simulate the settlement for last year.


Exit the report.

Enter additional posting data in the parameters. The posting date and document date should be today’s date. The document header text should be Final Settlement Group ##.

For all the settlement steps, perform the settlement again in the update run, then view the posting log again.

© SAP AG AC295 8-21

Solutions

Unit: Sales-Based Contract and Sales-Based Rent Settlement

Topic: Sales-Based Contract, Sales Reports and Sales Settlement

1 To start the RE Navigator, in the SAP Menu choose: Accounting → Flexible Real Estate Management → RE Navigator → RE Navigator (RE80)

Select the Pooled Spaces entry, press the right-hand mouse button and choose Create → Store.



Company Code 1000

Business entity 1##

Building 1

Name of RO Retail space


Go to the Measurements tab page and enter 300 m² as the capacity of the Retail Space.

Go to the Posting Parameters tab page. In the top screen area, select the Organizational Assignment line and in the Profit Center field, enter the value 1430 (RE Store).




Select the Real Estate Contracts entry, then click the right-hand mouse button and choose Create Commercial lease-out.




Select Relevant to Sales.

© SAP AG AC295 8-22




Go to the Objects tab page, choose (Extract Rental Spaces) and enter the following data:

Field Content

CoCd/BE 1000 / 1##

UsageType 4

MeasType A100


Amt Wanted 100



In the list that is displayed, double-click the text <new 1> and, in the lower screen area, enter Retail Space 100m² - EG.



Go to the Sales-Based Rent Agreement tab page and choose (Fast Entry).

Expand the Reporting Frequency, Settlement Frequency, and Sales Grading sections by choosing on the left of the text.


Field Content

Sales Rule Name 10% for complete assortment

Reporting Frequency – Frequency Start 01.01. of last year

Reporting Frequency – Frequency 3 months

Settlement Frequency - Frequency Start 01.01. of last year

Settlement Frequency - Frequency 12 months

Sales Grading - % rate 10

Check your entries with (Check) and transfer the data by choosing (Continue).

© SAP AG AC295 8-23

In the upper screen area, select the Sales Rule line and, then in the lower screen area go to the Conditions tab page.

To be able to create sales conditions, choose (Create New Condition).

Double-click condition type 60 Sales rent and continue with .

Choose (Create New Condition) and double-click condition type 61 Minimum sales rent. In the Calculation area, change the entry in the Formula field to Fixed Amount, and the entry in the Unit Price field to 1000, then continue with .

Choose (Create New Condition) again and double-click condition type 69 Adv.pmnt sales rent revenue. In the Calculation area, change the entry in the Formula field to Fixed Amount, and the entry in the Unit Price field to 500, then continue with .

Go to the General Data tab page, activate the contract with and save it by pressing Ctrl + S or (Save)





Company Code 1000








Choose (Execute).



© SAP AG AC295 8-24

4 Create sales report for your contract.

In the SAP menu, choose: Accounting → Flexible Real Estate Management → Sales-Based Settlement → Sales Reports → Enter/Change Sales Reports (RESRRP)



Company Code 1000




Sales To 31.12. of last year

Choose (Execute).

In the Net column enter the following values for each of these periods:

Report from Report To Net





Save the reports by pressing Ctrl + S or (Save).



Go to the Sales-Based Rent Agreement tab page and, in the lower screen area, switch to the Sales Reports tab page.

© SAP AG AC295 8-25

5 Simulate sales-based settlement and then execute it.

In the SAP menu, choose: Accounting → Flexible Real Estate Management → Sales-Based Settlement → Settlement → Execute/Continue Settlement (RESRSE)



Company Code 1000




Title Settlement 01 - Group ##

Settlement Method Simulate


Settle To 31.12. of last year

Simulate the settlement by choosing (Execute).

In the lower screen area, select the line Results of Sales-Based Settlement and view the report by choosing (Display Report). Scroll to the right so that you can see the receivable amount.

The results are structured as follows: 10% of the sales report – minimum rent already posted – amount of advance payment = result.

10% of €184,000 - €12,000 - €6,000 = €400 receivable.

Exit the report by choosing (Back) twice.In the lower screen area, go to the Parameters tab page and enter the following data:


Document Header Text Settlement 01 - Group ##


Document Date Today's date

Baseline payment dte Today's date

Change the entry in the Settlement Method field to Execute and the entry in the Settlement Step field to Posting of Sales-Based Rent in Financial Accounting.

Execute the settlement by choosing (Execute).

In the lower screen area, select the line Posting Log and view the report by choosing (Display Report). Scroll to the right so that you can see the CO account assignment.

© SAP AG AC295 8-26

To view the customer account, start the RE Navigator: In the SAP menu, choose: Accounting → Flexible Real Estate Management → RE Navigator → RE Navigator (RE80)


Go to the Partners tab page and choose Account, in the Line item selection screen area select All Items and execute the report with .



Select the Real Estate Contracts entry, then click the right-hand mouse button and choose Create Commercial lease-out.




Select Relevant to Sales.




Go to the Objects tab page, choose (Extract Rental Spaces) and enter the following data:

Field Content

CoCd/BE 1000 / 1##

UsageType 4

MeasType A100


Amt Wanted 150



In the list that is displayed, double-click the text <new 1> and, in the lower screen area, enter Retail Space 150m² - EG.

© SAP AG AC295 8-27



Go to the Sales-Based Rent Agreement tab page, choose and select Reporting Rule.

Enter S01 in the Sales Type field and, in the text field next to the number 10, enter Foodstuffs.

In the Freq. column, enter 3 in the Sales line, and enter 12 in the Certified Sales line.

Choose again and select Reporting Rule.

Enter S03 in the Sales Type field and, in the text field next to the number 20, enter Tobacco.

In the Freq. column, enter 6 in the Sales line, and enter 12 in the Certified Sales line.

Choose again and select Sales Rule.

In the lower screen, choose again and select 10 in the RepRuleNo. field and press ENTER.

In the % rate field, enter 10.

In the lower screen, choose again and select 20 in the RepRuleNo. field and press ENTER.

In the last column, choose (Change Grading) for reporting rule 20.

Change the entry in the Sales Grading Type field to Sales Grading Agreement, then in the Sales To field, enter 50.000, and in the % rate field, enter 11,00.

Choose (Insert) and enter 50.000 in the Sales from field, 100.000 in the Sales To field, and 10,50 in the % rate field.

Choose and enter 100.000 in the Sales from field and 9,50 in the % rate field.

Transfer your sales grading agreement with (Continue).

In the lower screen area, go to the Frequencies tab page and in the Freq. Column, enter 6 in the Settlement Period line and 12 in the Final Settlement line.

In the lower screen area, go to the Conditions tab page.

To be able to create sales conditions, choose (Create New Condition).

Double-click condition type 60 Sales rent and continue with .

© SAP AG AC295 8-28

Choose (Create New Condition) and double-click condition type 61 Minimum sales rent. In the Calculation area, change the entry in the Formula field to Fixed Amount, and the entry in the Unit Price field to 500, then continue with .

Choose (Create New Condition) again and double-click condition type 69 Advance pmnt sales rent revenue. In the Calculation area, change the entry in the Formula field to Fixed Amount, and the entry in the Unit Price field to 500, then continue with

.

Go to the General Data tab page, activate the contract with and save it by pressing Ctrl + S or (Save).





Company Code 1000








Choose (Execute).



© SAP AG AC295 8-29

8 Create sales report for your contract.




Company Code 1000





Choose (Execute).

In the Net sales column enter the following values for each of these periods:









© SAP AG AC295 8-30

9 Simulate sales-based settlement for last year and then execute it.




Company Code 1000




Title Settlement 02 - Group ##





In the lower screen area, select the line Results of Sales-Based Settlement and view the report by choosing (Display Report). Scroll to the right so that you can see the receivable / credit amount.

The results for the first half of the year are calculated as follows: The result from both sales reports is a receivable of € 5,550 (from settlement). Because a minimum rent of € 3,000 and an AP of € 3,000 have been paid, the tenant is entitled to credit of € 450.

The results for the second half of the year are calculated as follows: The result from both sales reports is a receivable of € 6,575 (from settlement). Because a minimum rent of € 3,000 and an AP of € 3,000 have been paid, the tenant has a receivable of € 575.

Exit the report by choosing (Back) twice.

In the lower screen area, go to the Parameters tab page and enter the following data:


Document Header Text Settlement 02 - Group ##






© SAP AG AC295 8-31

10 Create certified sales revenue for your contract.




Company Code 1000




Sales to Be Reported Certified Sales


Choose (Execute).

In the Net sales column enter the following values for each of these periods:





11 Simulate the final sales-based settlement for last year and then execute it.




Company Code 1000




Title Final Settlement – Group ##


Settlement Type Final Settlement




© SAP AG AC295 8-32

In the lower screen area, select the line Results of Sales-Based Settlement and view the report by choosing (Display Report). Scroll to the right so that you can see the receivable amount.

The results are calculated as follows: The result already posted from the two six-month periods in the year was credit of € 450 and receivable of € 575. So the balance is a receivable of € 125 for the year. The result using the certified sales is actually a receivable in the amount of € 1,805. Since € 125 already exists as a receivable and, of course, this result must be taken into account, there is a new receivable of € 1,680.

Exit the report by choosing (Back) twice.

In the lower screen area, go to the Parameters tab page and enter the following data:


Document Header Text Final Settlement – Group ##






© SAP AG AC295 9-1

© SAP AG 2003

Controlling

Content:

Enterprise controlling Profit center

Controlling Cost centers and real estate objects as cost objects

© SAP AG AC295 9-2

© SAP AG 2003


List the Controlling objects used in Flexible 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: Objectives

© SAP AG AC295 9-3

© SAP AG 2003


Course Overview

Business Partner

Contract Management

Accounting



Master Data





Input Tax Treatment

© SAP AG AC295 9-4

© SAP AG 2003

In your controlling object, you want to plan costs and revenues, and compare them with the actual values

You make an actual posting with Real Estate account assignment and internal cost allocation

You want to make a settlement from individual real estate objects to other account assignment objects

You use Profit Center Accounting for your enterprise controlling

Controlling: Business Scenario

© SAP AG AC295 9-5

© SAP AG 2003

Controlling Overview

Cost elements

Orders

Projects

Business entity

Building

Property

Rental object

Real estate contract

Cost collector of a settlement unit

Profit center

Settlement

Real Estate Management is linked to Controlling via cost elements.

We distinguish between direct costs and overhead costs.

You can assign direct costs to an object.

You post overhead costs to cost centers.

You can assign profit centers to all objects. The profit centers are updated when postings are made.

You can settle costs of CO objects to other CO objects.

© SAP AG AC295 9-6

© SAP AG 2003

RE-FX object(cost and revenue recipient)

• Business entity• Building• Property• Rental unit• Pooled space• Rental space• Real estate contract• SU cost collector

Classic CO objects• Cost center

(cost recipient only)

• Order ….

FIFI

PSPS

PMPM

COCO

Order

MMMM

CO Objects in Real Estate Management

FXFX

Rent revenue/rent expense

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).

© SAP AG AC295 9-7

© SAP AG 2003

Planning

RE-FX object

Business entity

Building

Property

Rental object

Manual planning

ACTUAL to PLANNED

PLANNED to PLANNED

Cash flow of the

contract to PLANNED

Planning of

Activity input

Costs

Revenues

You can enter planned records in the RE-FX objects and compare them with the actual records in CO reports.

You can create these planned records manually or use planning aids.

These planning aids are:

ACTUAL to PLANNED: Existing actual records are updated as planned records.

PLANNED to PLANNED: Existing planned records are updated as planned records.

Cash flow to PLANNED: The records of the cash flow can be updated as planned records.

© SAP AG AC295 9-8

© SAP AG 2003

Actual Posting

Real estate contractPeriodic posting: partner cash flow

Accountassignment object

Costs

Revenues

RE-FX objects

Cost center/order

WBS element

Periodic posting: object cash flow Costs

Revenues

Activity

Costs

RevenuesCash flow / Controlling / MM RE-FX objects

Cost center/order

WBS element

The actual values are derived from postings with account assignment to real estate objects.

If the real estate objects are assigned to profit centers, these are updated when postings are made.

© SAP AG AC295 9-9

© SAP AG 2003

Contract Distribution Posting

Office rent: € 700AP operating costs: € 210



6060 + 140

Rental conditions

Basic office rent € 1000 per monthAP operating costs € 300 per month

Contract

14060 + 140

Distribution plays a role in reporting for costs and revenue

DISTRIBUTION FORMULAMeasurement: Office spaceOffice basic rent € 1000 per monthAP operating costs € 300 per month

DISTRIBUTION FORMULADISTRIBUTION FORMULAMeasurement: Office spaceOffice basic rent € 1000 per monthAP operating costs € 300 per month

Office rent: € 300AP operating costs: € 90

You can transfer costs/revenues that were initially assigned to the contract to other objects (distribution). These objects include:

Business entity

Property/building

Rental object


Cost collector of a settlement unit

Cost center

Order

WBS element

© SAP AG AC295 9-10

© SAP AG 2003

Direct Internal Activity Allocation

RE-FX objects

Business entity

Building

Property

Rental object

Cost collector of an SU

Activity allocationActivity input

Prerequisite:

Provisionof service

Price Activity type

Cost center

&

Planning for service provision/prices

The actual costs on the objects are derived from the activity consumption that is entered by means of CO activity allocation, for which a sender cost center and activity type and a receiver real estate object have to be specified.

© SAP AG AC295 9-11

© SAP AG 2003

Settlement

CO settlement

Business entity

Building

Property

Rental unit

Pooled space

Rental space

Cost center

Order

WBS element

CO settlement rule

Business entity

Building

Property

Rental unit

Pooled space

Rental space

Cost collector of an SU

Cost center

Order

WBS element

Costs collected for an object can be settled to other CO objects.

In the CO settlement, you can periodically settle costs collected on real estate objects to one or more CO account assignment objects.

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-FX -> CO)), you can also settle costs from other CO objects to real estate objects (such as from a PM order to a building or a cost collector of the SU (PM -> RE-FX)). In the latter case, you have to define the settlement rule in the PM objects.

© SAP AG AC295 9-12

© SAP AG 2003

Profit Center

Addr PC CCtr, Ordr, WBS

x

x

x

x

x

x

x

xVacancy

xInternal usage

Attribute maintenance for objects possible

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. The reference to the higher-level object remains. This means that changes are also taken into account in lower-level objects.

PHYSICAL copying: If an entry is not made explicitly, the entry for the higher-level object is automatically used one time.Changes to the higher-level object do not affect the lower-level object.

Addr AddressPC Profit centerCCtr Cost centerOrdr OrderWBS WBS elementBE Business entityPR PropertyBU BuildingRO Rental objectREC Real estate contract

BE

PR/BU

RO

REC

x

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.

© SAP AG AC295 9-13

© SAP AG 2003

Real Estate Profit Center (PC)

Alternative profit center hierarchy

Standard profit center hierarchy of enterprise

EnterpriseEnterpriseEnterprise

Building 1Building 1Building 1 Building 2Building 2Building 2




Facility manager A(e.g. responsible for

objects with air-conditioning)

Facility manager A(e.g. responsible for

objects with air-conditioning)

Facility manager B(e.g. responsible for objects without air-

conditioning)

Facility manager B(e.g. responsible for objects without air-

conditioning)

EnterpriseEnterpriseEnterprise





Portfolio manager A(e.g. responsible for

objects in A class location)

Portfolio manager A(e.g. responsible for

objects in A class location)

Portfolio manager B(e.g. responsible for objects in outskirts)

Portfolio manager B(e.g. responsible for objects in outskirts)

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 profit center reports can be displayed in a standard hierarchy and also in alternative profit center hierarchies.

© SAP AG AC295 9-14

© SAP AG 2003

Controlling: Summary

You are now able to

List the Controlling objects used in Flexible Real Estate Management

Describe the relationship between real estate objects and profit centers

Explain the uses of real estate planning

Describe how to settle real estate objects on other account assignment objects

© SAP AG AC295 9-15

Exercises

Unit: Controlling Topic: Profit Center, Costs and Revenues on Real Estate

Objects


• Perform planning activities on RE-FX objects using planning aids

• Enter an internal activity allocation

• Check planned data in a CO report

You want to generate planned records on RE-FX objects using the cash flow.

You want to enter an internal activity allocation with account assignment to an RE-FX object.

1 Assign planner profile SAPREFX to your user master.

2 Simulate planning your contracts in CO using cash flow records. Plan your business entity for the current year and periods 1 to 12. Use the object selection option for your planning. Call plan version 00 from CO and overwrite the existing planned records. Use only the records of the contract. Display the error log. If the simulation was completed without errors, execute the actual planning.

3 Enter an internal activity allocation Cost center 4100 performs three hours of repairs (activity type 1410). The activity was performed for your administrative offices and should be assigned accordingly.

© SAP AG AC295 9-17

Solutions

Unit: Controlling Topic: Profit Center, Costs and Revenues on Real Estate

Objects

1 Assign planner profile SAPREFX to your user master. In the SAP menu, choose: Accounting Flexible Real Estate Management Controlling Planning Set Planner Profile (KP04) Enter the value SAPREFX and save this profile in your user master by choosing and then confirm with . Leave this screen with .

2 Simulate planning your contracts in CO using cash flow records. In the SAP menu, choose: Accounting Flexible Real Estate Management Controlling Planning Planning Aids Copy Copy Contract Cash Flow to Plan (RECOPLCFCOPY) Enter the following data:


Company Code 1000

Fiscal Year Current year

Period 01 to 12

Version 0




Object Types – Contracts X

Target Object Type Business entity

Existing Plan Data Overwrite

Processing mode Simulation

View the error log by choosing . If the simulation was completed without errors, execute the actual planning.

© SAP AG AC295 9-18

3 Enter an internal activity allocation. In the SAP menu, choose: Accounting Controlling Cost Center Accounting Actual Postings Activity Allocation Enter (KB21N) In the Doc. Date and Postg Date fields, enter today’s date. Change the entry in the Scrn Var. field to ALL and Input Type to Individual Entry. Enter the following data:


Quantity 10

Cost Ctr 4100

Acty Type 1410 In the Receiver screen area, choose RE Key (Not Assigned). Enter the following data:


Company code 1000

Business entity 1##

Rental object 1 Confirm the entries with (Continue). Post this CO document by choosing .

© SAP AG AC295 10-1

© SAP AG 2003


Contents:

Plant Maintenance Via functional locations/equipment

Asset Accounting Assignment of asset master records

Refer to the following units for other aspects of integration:

Profit centers 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

© SAP AG AC295 10-2

© SAP AG 2003

Integration: Objectives


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

© SAP AG AC295 10-3

© SAP AG 2003


Course Overview

Business Partner

Contract Management

Accounting



Master Data





Input Tax Treatment

© SAP AG AC295 10-4

© SAP AG 2003

Integration: Business Scenario

You receive a malfunction report regarding one of your real estates, so you execute unscheduled maintenance work

You want to use the Asset Accounting functions for your real estate objects

© SAP AG AC295 10-5

© SAP AG 2003

Link to Master Data

x

x

x

x

x

x

x

x

x Vacancyx

Attribute maintenance for objects possible

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.

Addr AddressBusAr Business areaPC Profit centerCCtr Cost centerFL Funct. LocationAO Arch. objectBE Business entityPR PropertyBU BuildingRO Rental object

x

x

x

x

x x

x

Addr BusAr PC CCtr Asset FL

AO

BE

PR/BU

RO

This graphic gives you an overview of the linking and integration options available for the master data.

© SAP AG AC295 10-6

© SAP AG 2003

Functional Process in PM System

Scheduled maintenanceScheduled maintenanceUnscheduled maintenance

PM ordersPM orders

PM history

PM planningPM planningPM requirement/PM requirement/reportsreports

Maintenance plans

ResourcesResources

ReportsReports

InternalactivitiesMaterial External

activities

DirectDirectorderordercreationcreation

Malfunction reports

The PM maintenance functions support regular maintenance work as well as tasks arising from malfunction reports.

For detailed information, refer to Course PLM 300.

© SAP AG AC295 10-7

© SAP AG 2003

Assignment of functional locations to real estate objectsAll objects in the architecture

Business entity

Property

Building

Rental object

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 objecttype

Identical structure defined simultaneously in PM

Relationship Between RE-FX Master Data and PM

The assignment of Real Estate objects (architectural objects, business entity, property, buildings, and rental object) 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 also possible to create functional locations for real estate objects automatically. You specify if the system should simply create and assign a functional location, or if the functional location should be updated each time the real estate object is changed.

© SAP AG AC295 10-8

© SAP AG 2003

Plant Maintenance Integration (RE-FX ⇔ PM)

RE-FX PM

Building

Floor

Floor

Locality

Func.Func.loc.loc.

Func.Func.loc.loc.

Func.Func.loc.loc.

Func.Func.loc.loc.

Func.Func.loc.loc.

Func.Func.loc.loc.

Actual

Planned

Com

pletion report

PM order

Room1

Room2

Room3

Scale 1:75

Room 1

Room ...

Room1

Room2

Room3

Scale 1:75

The administrative aspect of the maintenance task settlement is performed in the PM component. The structure of the plant maintenance objects has to correspond to the plant maintenance perspective.

The real estate objects have to be appropriately linked to functional locations. The individual maintenance tasks are represented by maintenance 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 report triggers the change of planned costs to actual costs.

© SAP AG AC295 10-9

© SAP AG 2003

Acquisition and net book value

Acquisition(= net book value)

DepreciationInterest

Asset Accounting Integration (RE ⇔ AA)

Businessentity

Building

Property

Asset

RE-FX FI-AA

InterestAsset

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 perspective. Assets can be assigned to buildings and properties in the usage view.

Corresponding reports are available for the asset values in the Asset Accounting information system.

An asset's depreciation and interest can be assigned directly to a real estate object.

© SAP AG AC295 10-10

© SAP AG 2003

Integration: Summary

You are now able to

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

© SAP AG AC295 10-11

Exercises

Unit: Integration Topic: Link to Plant Maintenance: Malfunction

Reports, PM Order and Settlement


• Create a malfunction report and enter the resulting planned values in the PM order

• Use a confirmation to generate actual records in the PM order, which you then settle to your administrative building (usage view)

A tenant calls you to report a malfunction. You create a malfunction report and use the maintenance process. After successful confirmation, you settle the costs incurred to your administrative building.

1 Create a malfunction report and a PM order.

1-1 Create a malfunction report for the functional location of your building (BU AR##/VW). Specify a notification text and a short description of the error and create a PM order directly from the malfunction report.

Choose order type PM01, planning plant 1000, business area 9100, and work center ELEKTRIK/1000. Plan the duration of the work: 2 hours.

For your PM order, define the administrative building (1000/1##/1) as the receiver object of the CO settlement rule so that you can settle the costs to this building.

Release your order and save it.

2 Confirm activities and complete the maintenance process.

2-1 Enter an individual confirmation for your PM order. The activity actually took 6 hours, not 2 hours.

3 Settle costs on the RE-FX object building.

3-1 Settle the costs incurred to your building. For this, use the individual settlement found in the Controlling application menu. Assign controlling area 1000 to your user, if required, and save this setting.

Settle the current period.

First, execute a test run, then check for errors in the displayed log and details list.

Execute the update run.

Check the details list again and view the controlling document.

© SAP AG AC295 10-13

Solutions

Unit: Integration Topic: Link to Plant Maintenance: Malfunction

Reports, PM Order and Settlement

1-1 In the SAP menu, choose: Logistics → Plant Maintenance → Maintenance Processing → Notification → Create (Special) → Malfunction Report (IW24)

Specify a notification text and a short description.

In the Funct. Location field, assign the object BU AR100/VW.

Create a PM order. To do so, choose: PM Notification → Order → Create → Direct. Enter the following data:


Order Type PM01

Planning plant 1000

Business Area 9100

Main work center ELEKTRIK/1000 (electrical maintenance)

Enter the value 2 (hours) in the Work durtn field.

Assign your administrative building in the usage view as the receiver of the CO settlement rule. To do so, choose: Goto → Settlement rule. Enter the following data:


Category GE

Settlement Receiver 1000/1##/1

% 100

Leave the settlement rule by choosing enter.

Release the order by choosing the green flag, then save it.

Exit the malfunction report.

2-1 In the SAP menu, choose: Logistics → Plant Maintenance → Maintenance Processing → Completion Confirmation → Entry → Individual Time Confirmation (UW41)

In the Order field, enter your order number and confirm with ENTER.

Enter the value 6 in the Actual Work field and save.

© SAP AG AC295 10-14

3 Settle costs on the RE-FX object building.

3-1 In the SAP menu, choose: Accounting → Controlling → Internal Orders → Period-End Closing → Single Functions → Settlement → Individual Processing (KO88)

If your user is not yet assigned to a controlling area, a popup appears to enable you to make this assignment. In the Controlling Area field, enter 1000 and save.

Place your cursor in the Order field, and press F4. Go to the PM orders using order list tab page to search for your order number.

In the Functional location field, enter the value BU AR##/VW and start the search. Select your order by double-clicking.



Settlement period Current month

Fiscal year Current year

Test run X

Execute the test run.

Branch to the details list. Here, the number of your PM order is shown as the sender and your building GE 1##/1 is shown as the receiver.

Exit the list and return to the selection screen. Deselect Test run and perform the settlement by choosing Execute.

Branch to the Itemization screen, choose Accounting documents and double-click the entry Controlling Document. Expand the document to view the complete assignment.

© SAP AG AC295 11-1

© SAP AG 2003

Input Tax Treatment

Content:

Input tax processing

Option rate determination

Input tax distribution

© SAP AG AC295 11-2

© SAP AG 2003

Input Tax Treatment: Unit Objectives


List the different ways of calculating option rates and name the objects that use option rates

Describe the steps required for rental that is liable to tax

Explain why adjustment postings may be necessary in service charge settlement

© SAP AG AC295 11-3

© SAP AG 2003


Course Overview

Business Partner

Contract Management

Accounting



Master Data





Input Tax Treatment

© SAP AG AC295 11-4

© SAP AG 2003

Input Tax Treatment: Business Scenario

You lease out rental objects that are 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

If you manage commercial real estate objects usage, you must make the appropriate setting in Customizing so that the company codes affected are opted.

© SAP AG AC295 11-5

© SAP AG 2003

Option Rate

Rental liable to taxTotal rentalOption rate =

Objects that can carry option rates:

Business entity

Building

Property

Rental object


Settlement unit

Master settlement unit

Ways to create option rates:

Square meter ratio (automatic)

Cubic volume (automatic)

Measurement (automatic)

Manually

Negotiated (Customizing)

The rental of real estate is exempt from sales tax. Any input tax arising from tax-free objects cannot be charged to the company.

Within §9 UStG (turnover tax law), it is possible to opt for sales tax.

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.

On the key date, the rental objects and contracts of the calculation objects are analyzed.

© SAP AG AC295 11-6

© SAP AG 2003

Input Tax Processing

ProcedurePosting of document with deductible input tax

Monthly determination of the option rate

Monthly distribution of input tax in deductible and non-deductible parts

For apportionable costs:Adjustment of tax posting by service charge settlement

You can create as many option rates as you like. You can overwrite previous option rates, as long as they are not used for postings already.

If an option rate was used for an input tax distribution posting, it can no longer be changed.

© SAP AG AC295 11-7

© SAP AG 2003

Update of option ratesUpdate of option ratesin the master datain the master dataobjects (values)objects (values)

DocumentsDocuments

DocumentsDocuments

Manual maintenanceManual maintenanceof the option ratesof the option rates

Program for automatic determinationProgram for automatic determinationof the option ratesof the option rates

Automatic input taxAutomatic input taxdistributiondistribution

SCS: Adjustment postingSCS: Adjustment posting

Settlement units

Steps Involved in Input Tax Processing

Detailsof

option ratedetermination

Incoming invoices are posted with input tax rate of 100%.

A 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 input tax distribution of apportionable costs does not need to be performed before the service charge settlement – as in classic RE. This occurs automatically within SCS.

The correct input tax distribution for apportionable service charge costs can only be calculated when the service charge settlement is made. Any adjustment postings are carried out here - if the input tax distribution was done previously.

© SAP AG AC295 11-8

© SAP AG 2003

Options for posting non-deductible input tax1. Target account n.d. input tax for each original account2. Target account n.d. input tax for all cost elements3. To the original account

Cost element A

Cost element B

Deductible input tax

300

600

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

N.d. input tax all cost elements

Option rate 33%

Tax Breakdown – Controlling Postings

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.

© SAP AG AC295 11-9

© SAP AG 2003

SCS credit postingSCS credit postingTax treatmentCredit postingTax treatmentCredit posting

Starting point (example)

Starting point (example)

Monthly input tax distribution

Monthly input tax distribution

Gross expenses PA

Input Tax Distribution Adjustment by Service Charge Settlement

Deductible input tax Credit account N.d. input tax credit

Deductible input tax Non-deductible input tax RA clearing account N.d. input tax clearing500

80

16

16

500

200 Residential300 Commercial

80 24

24

Tax adjustment posting

Tax adjustment posting

Deductible input tax

Non-deductible input tax

168

168

80

Customer posting of SCSCustomer posting of SCS

Receivables

Output tax

ResidentialCommercial

224348

48

SCS revenues

N.d. input tax revenues

500

32

The option rate of the settlement unit is determined at 80% - the commercial share of the object is 80%. The input tax distribution is performed on the basis of this value (80% x 80 = 64 or n.d. input tax: 20% x 80 = 16).(16% is taken as the tax rate.)

The distribution of net costs to commercial and non-commercial tenants was determined in the service charge settlement. The result was that 30% of the costs fall to non-commercial tenants and 70% fall to commercial tenants (opting). The adjusted option rate is determined at 70%.

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 (80%) and the adjusted breakdown (70%).

The debit posting to the commercial tenants uses the output tax rate of 16% as defined in the rental agreement.

© SAP AG AC295 11-10

© SAP AG 2003

Customizing Taxes

CCBasic Settings for Company Code Parameters in Company Code Opt Company Code

Reasons for input tax opting

Option rate methods

Proposed option rate methods

Accounts for non-deductible input tax

© SAP AG AC295 11-11

© SAP AG 2003

Input Tax Treatment: Summary

You are now able to

List the different ways of calculating option rates and name the objects that use option rates

Describe the steps required for rental that is liable to tax

Explain why adjustment postings may be necessary in service charge settlement

© SAP AG AC295 12-1

© SAP AG 2003


Content:

Correspondence

SAP Smart Forms

Word interface (one-time correspondence)

Business Data Toolset (BDT)

Substitution/validation

Ad-hoc reporting (QuickViewer)

SAP Service Marketplace

© SAP AG AC295 12-2

© SAP AG 2003

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

Explain the options for managing correspondence with Flexible Real Estate Management

Describe the cross-application functions and relevant application examples

Name the tools used

Tools and Cross-Application Functions: Unit Objectives

© SAP AG AC295 12-3

© SAP AG 2003


Course Overview

Business Partner

Contract Management

Accounting



Master Data





Input Tax Treatment

© SAP AG AC295 12-4

© SAP AG 2003

Tools and Cross-Application Functions: Business Scenario

You want to create and send letters to your business partners related to a particular application

You want to implement Document Management in your enterprise

You want to tailor the user dialog to your company

You want to lighten your employees' workloads through automatic checks and prepopulation of fields

You want to perform individual evaluations

You want to learn about Flexible Real Estate Management and related topics as quickly as possible, and know which information support is available to you

© SAP AG AC295 12-5

© SAP AG 2003

Cross-Application Functions: Correspondence

SAP Smart Forms (Mass Print and Single Print)High-performing mass print

Method of printing for all types of application data

Flexible control of documents/recipients to print

Office Application, Such As Microsoft Word (Single Print)Document can be changed directly in the office application before print

Easy definition of document templates

With the correspondence component you can create documents in letter-form or as an e-mail or fax. These documents are typically sent to your business partner(s).

The main aspects are:

Functions that are easy to set up

Adaptation to your own requirements

Flexible use of correspondence

You choose between two technically different types of correspondence, depending on your requirements:

Smart Forms (mass and single print)

Office Application (only single print): this lets you create single documents using word processing software (such as Microsoft Word).

With both correspondence types you can print:

Master data-related documents

Contract-related documents

You can archive the documents you create with a link to the respective master data object or contract. You can also locate your archived documents.

Detail procedures are documented in Customizing.

In the application menu of Flexible Real Estate Management, choose:

Customizing → Flexible Real Estate Management → Correspondence

© SAP AG AC295 12-6

© SAP AG 2003

SAP Smart Forms: Overview

ImprovementsSAP Smart Forms replace SAPscriptTransparent form flow logic, defined solely in the Form BuilderAdjustments only made in the form itself. No separate text modules, text Customizing and print program required

FeaturesCorrespondence is available for master data objects.In every selection you can either insert your own text or choose a predefined text module.Display document list before print and change to the print previewYou can output documents without reference to a partner.Additional output media with e-mail and fax

CustomizingProcedure for determining document language (instead of language of letter recipientSpecific settings for archivingDefault for second currencyComprehensive use of correspondence activities, with optional differentiating characteristics – NO correspondence groups

SAP Smart Form technology is developed by Basis Components and replaces previously used SAPscript. SAPscript forms are still available but there will be no further development on them.

Smart Forms do not incorporate word processing in the true sense. They define the layout and output characteristics of templates and generate documents in the output activity, based on the templates. The documents cannot be edited directly.

With SAP Smart Forms you can make simple changes to the form logic with simple graphic tools. In most cases no additional programming is required. The form logic is defined in the Smart Form. To print a form, you access it in the application where you retrieve the application data. Data retrieval and form logic are separate from each other. The advantage is that only the Smart Form has to be modified if the logic is changed.

Advantages of Smart Forms: Enables fast mass-print with optional document archiving using SAP ArchiveLink In a typical real estate correspondence process, there are no limits on retrieval and output of application data. The system also supports the output of data in table form and the determination, calculation and display of customer-specific data.

Flexible, automatic control of the documents that are created for each business partner (role) via correspondence activities (Customizing)

Support of e-mail or fax, depending on the technical options of the business partner in question Integration in the development landscape: transport connection, translation tools and so on

Disadvantages: You cannot change a document once it is created. The disadvantage is minimized in that before you create a document you can enter any text to a text editor. The text is then output in the pre-defined place in the template. This (text editor) procedure is suitable for short pieces of correspondence, such as a general letter. It is not suitable for a complicated contract with numerous individual text passages.

© SAP AG AC295 12-7

© SAP AG 2003

SAP Smart Forms: Supported Applications

Master Data

Contract

General CorrespondenceMaster Data Sheet

General CorrespondenceMaster Data SheetContract FormTenant Account SheetDunning*Service Charge SettlementNotice/Confirmation of Notice

Object Types:

Correspondence Applications:

* See Notes

Architectural objectBusiness entity

PropertyBuilding

Rental object

Correspondence applications are pre-defined in the system and relate to one specific Real Estate object. The following correspondence applications are defined for master data objects:

General correspondence

Master data sheet

The following correspondence applications are available for contracts:

General correspondence

Master data sheet

Contract form

Tenant account sheet


Notice/confirmation of notice

For each correspondence application there is:

A transaction for mass print

The option for single print from within the object/contract processing transaction

* Dunning correspondence is an exception because it is handled using the correspondence functions of the Financial Accounting (FI) component. The Smart Form variant of the dunning form is used in Flexible Real Estate Management but you have to make the Customizing settings and access the dunning correspondence in Financial Accounting.

© SAP AG AC295 12-8

© SAP AG 2003

Correspondence

ArchitectureBusiness EntityPropertyBuildingRental Objects

General CorrespondenceMaster Data SummaryContract Form

Contract Account Sheet

Service Charge SettlementEnd of Contract

1000 1000000458 Mark & Marney Cons Contract Form... ... ... ...

SAP Smart Forms: Mass Print

Objects CorrespondenceData

Text Editor

OutputData

User FieldsSpecial Parameters

Master Data

Contracts

Rental Accounting

User Menu Selection Screen

Document List

Print Preview

Co Code Contract Number Name/Address Form1000 1000000250 ABC Associates/3 Sn Contract Form1000 1000000250 Peter Smith/3 Park

Print AllPrint Selected

Spool Request

1. 2.

2.a)

2.b)3.

Information

© SAP AG 2003

The mass print function is used to print multiple letters of a correspondence application, such as master data sheets for all rental units of a building. You call up mass print correspondence from your user menu.

Each mass print program (such as business entity general letter) implements one single correspondence application. You make the basic settings for the correspondence application in Customizing

The mass print program uses a selection screen with tab pages. The Objects tab is part of the logical database that is used in each case. Via the selection criteria you determine WHICH contracts, or master data objects are to be printed.

The other tab pages are correspondence-specific and determine HOW the documents are to be printed.

The Correspondence Data and Output Control tab pages are always available. The remaining tabs, Special Parameters, User Fields and Text Editor, are displayed depending on the Customizing settings of the correspondence application. A list of all documents to be printed is displayed. You can: Branch to the print preview of each document by double-clicking Print all documents in the list Print selected documents

It is also possible to navigate to the master data of the object or the contract, or to the partner master data, if a recipient is maintained.

If you wish to hide the document list display, deselect the Output List indicator in the Output Control tab. Then all documents are printed that the system selects.

The system issues a correspondence log for each output activity and saves it as an SAP application log. The log is displayed if errors or warnings are generated.

© SAP AG AC295 12-9

© SAP AG 2003

Print

Correspondence activityText modulesKey datePrint

CorrespondenceData Document List

SAP Smart Forms: Single Print

ContractObject

Process Object1. 2.a) 3.a)

2.b) 3.b)

Preview Master Data Sheet

Print correspondence applicationsrelevant to current object status

Print4.

Output devicePrint immediatelyDelete after outputNo. of copiesPrint & archive

Free text…

Print AllPrint Selected

Text Editor Output Data

InformationPeter Smith/251 Park

Contract FormABC Associates/3 Sn

FormName/Address

The single print function is called up directly via object/contract processing, and is available for the architectural object, business entity, property, building, rental object or rental contract.

The output of a single print document is for one object only, such as an individual rental object or a particular contract. However, depending on the correspondence activity used, multiple documents can be created with each output activity.

The master data sheet available for objects and contracts is also based on Smart Form technology. Via the Print Preview Master Data Sheet icon, you can display with one click the complete object master data. Note that the function keys are only displayed if the correspondence applications have been assigned to the relevant object types (Customizing).

The status of the object or contract being processed determines the various correspondence applications that can be printed. For example, notice must be entered for a contract before the notice/confirmation of notice correspondence can be generated.

A document list is generated for the selected correspondence application. Depending on the correspondence activity, the document list can contain more than one document. By double-clicking in the document list, you can display a print preview.

Per correspondence application: Assign correspondence activities. Define flexible text modules. The use of selected text modules is recommended if you only use one form for general letters and the body text of frequently occurring letters is stored in a text module.

Define if the text editor is available. A tab page containing the text editor is displayed. The user can enter a text that appears in the document at the position indicated in the layout.

Define the use of archiving, printer settings, e-mail and fax.

© SAP AG AC295 12-10

© SAP AG 2003

Form RE_CN_000Global Settings

Form AttributesForm InterfaceGlobal Definitions

Pages and WindowsFIRST First PageNEXT Next Page

INFO2 Info Window Next PagesMAIN Main Window

%TEXT1 Form of Address%TEXT7 Text%TEXT6 Insert text%TEXT10 Signature

FOOTER Footer window

Formats Formats

SAP Smart Forms: Form Builder

BUS_OBJECTSENDERRECIPIENTCLERKPARTNER_SPEC1PARTNER_SPEC2CONTRACT

Business Object

Recipient

ContractMANDTINTRENOBUKRSRECNNRRECNTYPE

ClientInternal Real EstatCompany codeContract numberContract type

Text %TEXT7TextDescription

General Attributes Web Properties Output Options Conditions

Paragraph Formats Standard Character Formats

Text Type Text Element Start Time New Paragraph

Form Name

Available Fields

Form Structure

Activate Form

We wish to inform you that contract number RECNNR

Drag & Drop

Text Editor

B Bold

Smart FormHeaderPagesWindowsHeadingTextsAddressGraphicParagraph & Character Format

You specify the forms you want to use for correspondence activities. Define the required forms, such as master data sheet for buildings, and assign the corresponding Smart Form to them.

You use the graphical user interface in the Form Builder to define your Smart Form.

You define all properties of your Smart Form (layout, texts, individual text retrieval, and so on) in the Form Builder (transaction: SMARTFORMS)

The user interface of the Form Builder consists of two main work areas:

Navigation Tree (left) - clearly displays general attributes and all other output elements of the form

Maintenance screen (right) - allows you to maintain the attributes of the navigation tree nodes

Form Painter (optional) – allows you to maintain the layout of your form. If you do not need the Form Painter, you can suppress it by choosing Form Painter On/Off

For more information on Smart Form and Form Builder see:

Help → SAP Library → mySAP Technology Components → SAP Web Application Server → Basis Services/Communication Interfaces (BC-SRV) → SAP Smart Forms (BC-SRV-SSF) → Maintaining Forms with the Form Builder

© SAP AG AC295 12-11

© SAP AG 2003

SAP Smart Forms: Correspondence Activity

Correspondence Activity

Recipients (Partner Roles)Recipients (Partner Roles)AND

Documents (Forms)Documents (Forms)=

Mr. Mr. ……IntroductionIntroductionContract formContract form

Company ...Company ...Information on Information on new tenantnew tenant

ExampleExample: Print these documents for each contract Main contractual partner:• Introduction• Contract form

1st 1st StepStep: Define Correspondence Activity (Customizing)

No. Recipient Document 1 Main contractual partner Introduction2 Main contractual partner Contract form3 Partner with role “Service Provider“ Information on new tenant

Service Provider• Information on new tenant

Business partners of contract 4711 (contract type: lease-out)Master tenant w/ customer account Mr. ...Service provider Company ...

2nd 2nd StepStep: Print documents via correspondence activity

A correspondence activity determines automatically which documents are sent to which recipients (partners).

You can "generate" more than one document in one print step for a single object or contract (Print function).

Correspondence activities can be defined for all object types (contract and master data objects) and correspondence applications.

Example:

If the service provider partner role is not assigned to the actual contract, the relevant document will not be produced.

When more than one service provider is assigned to the contract, each of the partners gets a document.

The contract type determines the role that represents the main contractual partner.

You can also make Customizing settings for the correspondence activity so that documents (such as master data sheet or exposé) can be created without reference to a business partner.

© SAP AG AC295 12-12

© SAP AG 2003

Office Application (Single Print)

WORD standard letter interfaceCreate individual letters (one-time correspondence)

Call up function from within all objects and contracts

Data retrieval for master data specific both to object and to contract

AdvantagesFamiliar Microsoft Word text processing

Easy template definition and recipient selection

Possible to modify the letter content before printing

Can store all documents in the system with a link to respective object or contract

You use the office application if you want to create or print single correspondence and archive it for subsequent processing or display.

Correspondence can be generated with the office application for the following objects: architectural object, business entity, building, property, rental object, and contract.

The basic settings and templates used for single print correspondence can be defined in Customizing. Choose:

Customizing → Flexible Real Estate Management → Correspondence → Office Application: Single Print → Basic Settings and Document Templates

Here you can upload, edit or remove the document templates.

When processing a master data object, or contract, choose Print with Office Application. You then select the template to be used. If more than one business partner is assigned to the object, choose the desired correspondence recipient. In the case of contract correspondence, the main contractual partner is highlighted in the selection list.

In the office application, you can modify the document as required. You can print the document, print and store it, or simply store it.

© SAP AG AC295 12-13

© SAP AG 2003

Archiving

You can archive documents related to objects/contracts.

Smart FormsArchiving via SAP ArchiveLink

Word Application CorrespondenceVia Business Document Services

You can display all archived documents (for both types of correspondence) via the Business Document Navigator.

You can call up Business Document Navigator from the object you are processing.

You can specify that the documents you create are archived using the SAP ArchiveLink.

SAP ArchiveLink is a service integrated in the SAP Web Application Server to integrate external storage systems.

Linking documents according to content guarantees long-term easy access to the documents. You can directly display the stored document(s) that are associated with the processed object. You can also use attributes to search for documents. This replaces time consuming processes such as making copies of originals, searching for procedure-related information, and so on.

To use ArchiveLink, you need to have installed a storage system. The document to be stored must already be in, or be converted to, electronic format. It does not matter how the document is physically stored in the storage system.

To use this function, you have to install the storage system and configure the SAP ArchiveLink interface. You make the necessary settings in Customizing. Choose:

SAP Customizing Implementation Guide → SAP Web Application Server → Basis Services → SAP ArchiveLink

The system assigns document types to archive documents. There is a single document type for each correspondence application. It is not necessary to make any changes to standard Customizing settings.

© SAP AG AC295 12-14

© SAP AG 2003

Display Archived Documents

Business Document NavigatorDisplay key words

Contract 100001364Text

Rent ReviewGeneral Correspondence

Master Data Sheet

Contract Form

Portable Document FormatPortable Document Format

Portable Document Format

Portable Document FormatPortable Document Format

Description Created on

06/30/2001

09/18/200112/21/2001

12/31/2002

03/27/200205/04/2002

File Edit Insert Format Tools Table Window Help

Draw Autoshapes

Andrea LindsayAttorney at Law, & Partners135 High StreetParkway EstateFrankfurtGermany

June 30, 2001

Subject: Rent Review

Dear Ms. Lindsay,

We wish to inform you that a rent review will be made on September 1, 2001. We will let you know...

Word

Smart Form

Archived documents for object

Double Click

The system always archives documents with a reference to the corresponding master data object or contract.

The Business Document Navigator displays both documents created by SAP Smart Forms (PDF) and the office application (such as Microsoft Word) in one screen.

There are two ways of displaying archived documents in the application dialog of the respective object:

Choose Document Management (Business Document Navigator).

Choose Special Services -> Attachment list

Make the following settings in Customizing:

Customizing → Flexible Real Estate Management → Correspondence → Smart Forms (Mass Print and Single Print) → Basic Settings

© SAP AG AC295 12-15

© SAP AG 2003

Tools: Business Data Toolset (BDT)

What is it?The Business Data Toolset is a central control tool for maintaining master data and simple transaction data.

FunctionExtensibility

Screen layoutScreen sequenceProgram logicMenuSearch helpField groupingAuthorization checks

ConfigurabilityDivisibilityDelinkingUse of other interfacesFaster developmentUniformity

SAPNet alias /bdt

Extensibility: You can extend various dialog parts without the need for modifications using downstream applications either within SAP or through development partners or customers. This applies to screen layout, screen sequence, program logic, menu, search help, field grouping and authorization checks.

Other areas, such as data maintenance without dialog or change document lists, are also extensible.

Extensions, or enhancements, can be created over multiple levels.

Configurability: Screen layout and sequence can be configured by application developers and/or customers. While developers use BDT control tables to modify screens, customers can take advantage of a configuration tool developed using Visual Basic for changing standard SAP screen layout and sequence with the Drag&Drop method.

Divisibility: The maintenance of large objects can be broken down into smaller parts. You use control tables to define which attributes can be maintained in an object part.

Use of Other Interfaces: Interface and program logic are separate in the BDT.

Faster Development: Because the BDT takes control of dialog processes, the applications limit themselves to realizing business functions. The BDT also provides services in which the applications can be included. These factors reduce considerably the time needed to develop applications.

Uniformity: In all application objects that use the BDT, online navigation takes place using the BDT and is therefore identical. Using the generic object services also contributes to a certain uniformity.

© SAP AG AC295 12-16

© SAP AG 2003

Screen Layout

TermsPartnersGeneral DataGeneral Data

Identification

Contract

Authorization

View 1

View 2

View 3

View 4

View 5

Area 1

Area 2

Area 3

A screen sequence contains several screens

A screen contains one or more areas

An area contains one or more views

A view contains one or more field groups

A field group contains one or more fields

The dialog has a hierarchy structure.

Screen sequence (contains one or more screens)

Screens (contains one or more areas)

Areas (contain one or more views)

Views (contain one or more field groups)

Field groups (contain one or more screen fields)

You can define different screen sequences for the following objects:

Architectural object type

Business entity

Buildings

Property

Usage type in combination with the rental object type

Contract type

Participation group

Settlement unit

© SAP AG AC295 12-17

© SAP AG 2003

Substitution and Validation

Validation:

Value check

A rule 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:

Value replacement

The system tests the values entered using a user-defined rule.

If the statement is for the values is true, they are replaced.

This substitution is made before the data is sent to the database.

Substitutions and validations can be defined using Business Add-Ins (BAdIs).

Substitution example: The usage type of a rental object determines the business area of a contract. Rules have been defined in the form of BAdIs that result in the Business area field in the contract being filled out automatically. This is dependent on the usage type of the rental object. 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 object determines the permitted values for a business area of a contract. Rules have been defined in the form of BAdIs that result in the entries in the Business area field in the contract being checked. This is dependent on the usage type of the rental object. If the values entered do not fulfill the defined rules, a message appears informing you of this.

© SAP AG AC295 12-18

© SAP AG 2003

Ad-Hoc Reporting (QuickViewer)

Contractnumber

Internal RE key Rental start

4711 IV 8732 01.01.2003

0815 IV 9872 01.04.2002

8754 IV 8761 01.02.2005

… … …

Internal RE key Customer Vendor

IV 8732 200626

IV 9872 200877

IV 8761 100328

… … …

Contractnumber

Internal RE key Rental start Customer Vendor

4711 IV 8732 01.01.2003 200626

0815 IV 9872 01.02.2002 200877

8754 IV 8761 01.02.2005 100328

Table 1 Table 2

Report

You can use the QuickViewer to help you perform evaluations quickly.

You can link several tables together and generate an ALV with selection screen.

QuickViewer reports are user-related; only the user who created a particular report can use it. It is possible, however, to convert the QuickViewer to a program.

© SAP AG AC295 12-19

© SAP AG 2003

Cross-Application Function: SAPNet

News

EventsTraining

FAQs

Media CenterTutorials

IDESContacts

Development Strategy

www.sap.com/realestate (Internet)

Business BenefitsCustomer Successes

Business MapsKey Capabilities Brochures

EventsContacts

Statistics

http://intranet.sap.com/re (Internal)www.service.sap.com/re (SAP Service Marketplace)

© SAP AG AC295 12-20

© SAP AG 2003

Tools and Cross-Application Functions: Summary

You are now able to:

Explain the options for managing correspondence with Flexible Real Estate Management

Describe the cross-application functions and relevant application examples

Name the tools used

© SAP AG AC295 12-21

Exercises

Unit: Tools and Cross-Application Functions Topic: Correspondence, Business Data Toolset,

SAP Service Marketplace, SAP Tutor


• Explain the different methods for managing correspondence in Flexible Real Estate Management

• Describe the functions and give relevant examples in the application

• Name the tools used

You want to write letters for a given application and send them to your business partners. You want to introduce document management in your enterprise.

You would like to make field modifications and further developments to existing functionality.

You want to learn about Flexible Real Estate Management and related topics as quickly as possible, and know what kind of information and support is available to you. You want to create interactive learning units in order to optimize your educational resources and improve knowledge transfer.

1 Check the entries in your user profile. Enter the output device name supplied by your trainer (for example, LOCL). Make sure that Output immediately is not selected in the Spool Control screen area. Save your changes.

2 Create and print a general letter for one of your contracts (such as your store lease-out) using Smart Forms. Enter additional text, which should also be printed, in the text editor. Check the output control for this correspondence.

3 Display your letter in the document list and choose Print Preview.

4 From within contract processing, create a letter using the one-time correspondence function (Microsoft Word) for your second contract. Choose a document template and enter your text.

© SAP AG AC295 12-23

Solutions

Unit: Tools and Cross-Application Functions Topic: Correspondence, Business Data Toolset

1 Check the user profile.

From the menu bar, choose System → User Profile → Own Data.

Choose the Defaults tab.

In the Spool Control screen area, enter the name your trainer provides, or LOCL, in the Output Device field.

Make sure that Output immediately is not selected.

Save.

2 Use Smart Forms.

Correspondence → Contracts → General Correspondence

Enter your company code and a contract (for example your commercial lease-out for a store) on the Contract tab page.

Enter any text you like on the Text editor tab page.

Choose the Output control tab page. Check the settings.

3 Display the document.

Choose Execute.

Choose Print Preview.

4 Create a letter while processing a contract.

Contract → Process Contract

Choose the Pool tab page in the navigation area. Choose your second commercial lease-out.

Choose Print Preview Mast. Data Sheet. Have a look at the document. Choose Back.

Choose Print with Office Application. Choose General Correspondence from the input help in the Copy From field. Then choose Office Application.

Change or add to the text of the document. Save.