Adjustment Method: Area Change

Adjustment Method: Area Change

Use

Increase or reduction of condition amounts in selected rental agreements or rental units with the Change of area-related condition types in the master record of that object.

Prerequisites

Rental agreements have the intended adjustment type for the adjustment method (setting in the Real Estate Customizing).

You have assigned rental units to an external usage type that enables the adjustment method (setting in the Real Estate Customizing).

Rental unit / rental agreement has a reference area or a condition type which is assigned a specific area type (setting in the Real Estate Customizing).

The values for the reference areas or area type for the condition are not updated in the master record of object but changed.

Integration

Control mechanism for the adjustment of conditions with the area changes:

Rental unit	Rental agreement	Only for adjustment run (bulk change)
External usage type Reference area Percentage rate of increase	Adjustment type Reference area Adjustment block per condition type	Take into account percentage rate of increase? Adjust only for increase? Only adjust valid conditions in the future? Adjustment of conditions on rental agreements and/or rental units? Adjustment of valid conditions only in the future Generate (assign) new condition types on rental agreements and/or rental units during adjustment Also adjust non-active rental agreements, i.e. rental agreements without system status "ACTIVE"?

Features

You can calculate the new condition amounts in two ways:

You can immediately update condition amount when changing the area size in the master record of that object.
You can update condition amount later in the bulk process.

Simulation/calculation (bulk process)

The simulation or calculation of the condition amounts is made using the new areas and multiplying the area size by the amount for each area unit.

Adjustment objects (bulk process)

You can choose how the adjustment is updated:

Only for rental agreements
Only for rental units
For rental agreements and rental units

Examples Different adjustment objects

Activating

You have to activate the adjustment run so that calculated adjustments are updated on the respective rental agreements or rental units as valid condition items.

When activating, you have to specify per agreement:

Date of tenant approval
Date from which the adjustment is valid
Date from which, in the case of retroactive condition changes, subsequent payments can be posted to the tenant account

If a credit note has to be issued due to retroactive condition changes. The system automatically copies the due date of the original transaction.

Optionally, you can change the calculated adjustment amounts manually changed for each agreement.