Processing Security Deposit Agreements 

Use

The security deposit paid by a tenant is usually associated with a particular contract.

It can, however, apply to more than one contract, or may be made a third party (guarantee). For these reasons, in Flexible Real Estate Management a security deposit agreement is not treated as part of a lease-out contract but is drawn up as a separate contract, which is then referred to in the associated lease-out contracts.

The security deposit agreed on can be made in different forms and can be paid in multiple payments. In addition to security deposits agreed on as a set amount, the security deposit can also be calculated based on the contract conditions (such as the rent). In some countries, for example, the security deposit for residential lease-outs is not allowed to exceed three times the monthly rent. The landlord and tenant can also agree that the security deposit has to be adjusted when conditions are changed (such as when rent is increased).

The security deposit data includes not only the agreed security deposit but also the type of security deposit paid by the tenant, when he paid it, and how much he actually paid. The security deposit master data is therefore broken down into basic data, data on the agreed security deposit, and data on the actual security deposit paid.

 

Prerequisites

You made the necessary settings in Customizing. Choose:

SAP Customizing Implementation Guide ® Flexible Real Estate Management (Enterprise Extension) ® Contract ® Security Deposit Agreement

 

Note

Real estate contracts for security deposit agreements are created by choosing the same path as for the other contract types. In the SAP menu, choose:

Accounting ®Flexible Real Estate Management (Enterprise Extension) ® RE Navigator ® Real Estate Contact ®  

Select the contract type for security deposit agreements and enter the number of the contract covered by the security deposit.