Renewing Contracts 

Use

You want to renew a fixed-term contract. You assign a renewal rule to the contract and then activate the renewal rule.

Prerequisites

·        You created renewal rules in Customizing, as needed:

SAP Customizing Implementation Guide ® Flexible Real Estate Management (Enterprise Extension) ® Contract ® Renewal ® Renewal Rules

However, you can also create individual renewal rules in contract processing on the Term tab page.

·        The contract you want to renew is active.

·        You specified which renewal rule is assigned to the contract (Renewal Rule).

Procedure

You are processing a fixed-term contract that you want to renew.

Fixed-term contracts have a date in the 1st Contract End field on the Term tab page.

Assign Renewal Rule

...

       1.      To renew a contract, choose  with the quick info Create Term ® Renewal on the Term tab page.

On the lower part of the screen, the Renewal and Memo tab pages are displayed.

       2.      In the Renewal Type field, choose one of the Standard Renewal Rules that were set up in Customizing, or choose Individual Renewal Rule.

       3.      Standard Renewal Rules:

                            a.      To assign a renewal rule (renewal option and/or automatic renewal), choose a rule in the Renewal Rule field using the entry help.

                            b.      To simulate the end of the contract, choose  with the quick info text Simulate Renewal.

If you entered an explanatory text for the renewal rule in Customizing, you can display it here by choosing  with the quick info text Display Description. If this icon is white, then no description was entered.

Individual Renewal Rules:

                            c.      If you want to define one or more of your own individual renewal rules, choose Individual Renewal Rule as the renewal type.

A table appears in the detail area.

                            d.      Enter a description for your rule. This description appears later in the RE Navigator in the object data for the term.

                            e.      To create a rule, choose  with the quick info Append Row.

Enter data as required. There are three different types of renewal you can choose from. To select one, choose the pushbutton with the quick info text Type of Automatic Renewal.The renewal type you choose appears as the text on the pushbutton.

Or you can choose  with the quick info text Create with Template to import rules already defined in Customizing and change these, if required, in the detail view of the contract using  with the quick info text Detail View for Renewal.

       4.      Save your entries.

You assigned one or more renewal rules to the contract.

Activate Renewal

You are currently processing a contract.

       5.      In the navigation area, choose Processes ®Renew Contract or choose the menu option Real Estate Contract ® Give Notice or Renew.

Renewal Options

For an option to become effective, the contractee must make a written statement to this effect.

       6.      The contractor (landlord) can specify in the detailed data whether the contractee approved or rejected the option. The landlord then activates the option in the system by choosing one of the following:

  with the quick info text Approve and Activate

  with the quick info text Reject and Activate

Automatic Renewals

If the renewal is automatic, there is no need to enter approval or to activate the renewal. You refuse an automatic renewal rule by giving notice.

Renewal refusals that result in a contract termination are handled by choosing Processes  ®  Give Notice (see Notice).

Result

If you choose Approve and Activate, the contract is renewed.

If you choose Reject and Activate, the contract is not renewed.