Real Estate Contract 

Definition

The real estate contract helps you map all contracts related to Real Estate management.

Structure

Contract Type

This is the factor that controls a real estate contract. The contract type specifies the purpose of the contract:

·        Lease-in or lease-out processes

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

·        You can also represent service, sales, and leasing contracts, and security deposit agreements.

·         

Create the contract types you require in Customizing. To do this, choose:

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

 

Term

In the contract, you enter the rules for the term of the contract and for giving notice. You can monitor the resulting processes and change them, if necessary, in contract processing.

 

Object Assignment

A contract can include more than one object (even objects that are in different buildings and business entities).

In Customizing, you first define which object types can be assigned to which contract types. Independently of this setting, however, you can assign rental objects and object groups only to lease-out contracts (exception: informational assignment).

In contract processing, you can define spaces (“extract” them from a pooled space) and assign them to the contract as rental objects of the type rental space for a given time period. These rental objects can later be assigned to a different contract for a different time period.

Rental objects that are subject to the same condition, for instance, can be grouped together in a contract and assigned to that particular condition.

 

Posting Parameters

You define the payment conditions in the contract (payment method, form and frequency) for your chosen condition items.

In the case of own usage, you can either specify one cost center for the cash flow or a different cost center for each condition type.

You initiate posting using the Periodic Postings function.

 

Sales-Based Rent Settlement

If you want to settle commercially leased-out real estate by sales, set the Relevant to Sales indicator in the contract. You can then define sales-based rent agreements, enter and edit sales reports, and carry through the complete settlement process.

For detailed information, refer to the documentation for the Sales-Based Settlement component.

 

Adjustment of Conditions (Rent Adjustment in Classic RE)

You can specify terms in the contract for adjusting condition amounts. You can make free adjustments, adjustments based on indexes, and adjustments of advance payments and flat rates.

For detailed information, refer to the documentation for Adjustment of Conditions (Rent Adjustment).

 

Resubmission

The general Resubmission function is available with contracts, just as with architectural objects and usage objects. You can use this function to have the system generate dates on which the contract is processed further. The system does this using various rules.

For more information, refer to Resubmission.