Purpose

Rental of condominiums is not handled in the COA company code, but in the company code where the rent revenue from the condominium is posted. For the purpose of handling rental of condominiums, you therefore create copies of the rental objects in separate company codes. You then link these copies with the original objects in the COA company code.

You enter the copies of the rental objects in the following company codes, depending on who owns the objects:

Copies of condominiums that belong to the manager are in the manager company code.

Copies of condominiums that belong to the owner of the object mandate (see Object Mandate ) are in the object mandate company codes.

Copies of condominiums that belong to owners, who do not have their own mandate company code, are in the condominium owner company code.

Prerequisites

You created master data and contracts of a COA in a COA company code.

If you as manager have your own condominiums in a condominium owners’ association (see case 1 below), you created a management company code for them.

If you manage condominiums on behalf of an individual condominium owner in the COA, and you manage other objects for this owner that are not condominiums of this COA (see case 2 below), then you created an object mandate with a mandate company code for the owner. You set the Manager Company Code Behavior indicator in the mandate. This indicator specifies that the rental objects in this object mandate company codecan be linked with a COA company code.

If you manage condominiums for other individual condominium owners, who do not have other property managed by you (see case 3 below), and for whom you did not create an object mandate in the system, then you created a condominium owner company code

In Customizing for Flexible Real Estate Management (RE-FX), choose Basic Settings → Make Basic Settings in Company Code.

Process Flow

I. Create Real Estate Contracts of the Lease-Out Category for Condominiums

Condominiums are not leased out in the COA company code, since the rent revenue belongs to the individual condominium owners, not to the condominium owners’ association (COA). To reflect this situation, you create copies of the rental objects (condominiums) you want to lease out. These copies are created in separate company codes, where the rent revenue is recorded.

Therefore, the COA company code contains real estate contracts of the Lease-Out category only for common property.

The various ownership scenarios are outlined below:

Case 1:

You are the manager and own condominiums yourself that are part of a COA and want to lease these out.

You mapped these condominiums as rental units in the COA company code. Now create copies of these rental units in the manager company code.

Link the rental units as follows:

In the rental unit in the COA company code, in the RO – Manager Company Code field, enter the rental unit in the manager company code.

In the rental unit in the manager company code, in the RO – Mandate Company Code field, enter the rental unit in the COA company code.

You can make this link only if the company code of the manager is designated as the manager company code (see Prerequisites).

You create the contract with reference to the copy (rental unit in manager company code).

The costs and revenue for the condominium belonging to the manager are posted in the manager company code. You can use this link to find all contracts, which relate to the rental objects of the condominium owners’ association, for the purposes of service charge settlement for tenants of condominiums

When you make changes to the original objects, the system updates the linked objects.

Case 2:

You manage condominiums of an individual condominium owner (large investor) of the COA, but you also manage other objects for the owner that do not belong to the COA.

You created an object mandate company code for the owner. You also mapped the condominiums of this owner as rental units in the COA company code. Create a copy of this rental unit in the object mandate company code following the pattern described above.

Link the rental units. The prerequisite for this is that you set the Manager Company Code Behavior indicator in the master data of the object mandate.

Create the contract for this rental unit in the object mandate company code.

Case 3:

You manage condominiums for an individual condominium owner (small investor with only one unit, for example) , for whom you have not created an object mandate in the system.

You created a condominium owner company code. In this company code, you create copies of all COA objects that are not covered by Case 1 and 2. You also mapped the condominiums of this owner as rental units in the COA company code. Create a copy of this rental unit in the condominium owner company code following the pattern described above.

Link the rental units.

Create the contract for this rental unit in the condominium owner company code.

II.Create Management Contracts for Condominiums

If you manage condominiums for their owners ( case 2 and 3), then you create a management contract for calculating and posting management fees. For more information, see Management Contract

Result

You created the master data and contracts related to condominiums belonging to a condominium owners’ association. The costs and revenues for condominiums and common property are each posted to their own separate company codes.

You can now post to settlement units, for example, using the one-time posting function.For more information, see Posting for a COA

Example

For an example for entering object master data of different owners in various company codes, see Example: Third-Party Management