COA Settlement

Use

You perform settlement for a condominium owners’ association at the close of the fiscal year. COA settlement distributes the actual costs and revenues of the condominium owners’ association to the members of the association (the condominium owners). The rules for this settlement are recorded in the declaration dividing common property and separately owned property.

The assessments that were paid are cleared against the actual costs incurred by the owners as stated in the COA settlement. The result could be that credits are owed to the owners, or they need to make additional payments.

The process for COA settlement is essentially the same as for normal service charge settlement.

Prerequisites

Customizing:

You made settings in Customizing as you would for service charge settlement. However, since the assessment contract usually uses different condition types, you have to make a few additional settings. In Customizing for Start of the navigation path Flexible Real Estate Management(RE-FX), chooseThird-Party Management Next navigation step Settlement End of the navigation path .

Master Data and Flow Data:

It is only possible to settle costs and revenues that were posted to settlement units. Therefore, before performing the COA settlement, you should make sure that no costs and revenues are posted to account assignment objects other than settlement units. If there are costs and revenues posted to other objects, you can manually transfer them. Or you can have the system credit the objects using a CO settlement. If the costs were posted with tax, then you have to transfer them manually in any case.

All costs and revenues related to COA objects are posted to settlement units in the COA company code.

  • The specifications in the service charge key determine if the costs can be apportioned only to owners, or to owners and tenants.

  • In the settlement unit , you specify the apportionment rules that are used for the settlement. The measurement types are specified on the rental object in the COA company code. You can enter different apportionment rules for the two types of settlement: owner settlement and tenant settlement. Or you can specify in Customizing that both use the same apportionment rule.

Features

The system calculates and posts the settlement in the same way as used for normal service charge settlement :

  • It credits the settlement unit and debits rental objects.

  • Costs passed on to owners as stated in the assessment contract:

    • The system read the advance payments made (assessments).

    • It calculates the difference between assessments and costs.

    • The difference (credit memo or receivable) is posted.

    • The current occupancy principle (COCP) is usually used here, so that the current owner bears the costs for the entire settlement period. However, you are not required to use the current occupancy principle (Customizing).

  • Lock the cost collectors

Activities

  1. In the COA company code, on the SAP Easy Access screen, choose Start of the navigation path Accounting Next navigation step Flexible Real Estate Management Next navigation step Third-Party Management Next navigation step COA Settlement Next navigation step Execute COA Settlement End of the navigation path .

  2. Enter the COA mandate in the Company Code field. Enter an ID of your choice for the settlement.

  3. In the Activity column, choose the settlement step up to which you want to execute the settlement.

  4. Execute the settlement.

Example

For example postings, see Example: COA Settlement .