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 Creating Assessment Contracts

Use

The assessment contract is a contract with the contract type Assessment Contract. In it you record the obligation of the condominium owner to pay assessments to the condominium owners’ association. This contract forms the basis for COA settlement .

You create the assessment contract in the COA company code. An assessment contract must be in effect for each rental object of a COA mandate, except common property, at all times beginning from the start date of the mandate.

Prerequisites

Customizing:

You have made the following settings in Customizing:

  • In Customizing of the contract, for the Assessment Contract contract type, you chose Assessment Contract in the Contract Reference field.

  • You allowed rental objects as objects for the Assessment Contract contract type.

  • You set up conditions and defined the assessment as an advance payment with revenue.

  • You defined a condition group for the contract type.

  • You defined flow types and the account determination.

  • For the condition, you defined default values for settlement participation for each service charge key.

    Master Data:

  • You created a COA mandate and the company code for it (see Creating a Mandate Company Code ).

  • You created the rental objects for condominiums in this company code (see Creating Master Data and Contracts for a COA ).

  • You created settlement units for assessment postings.

Procedure

  1. In the RE Navigator, choose the rental object for which you want to create an assessment contract.

    The Common Property indicator is not set for this rental object.

  2. Choose Start of the navigation path Rental Object Next navigation step Create Next navigation step Create Contract End of the navigation path .

    In the COA company code, you cannot create any other contracts for condominiums except assessment contracts. Therefore, the fast entry screen for an assessment contract for this rental object appears immediately.

  3. Enter the condominium owner in a customer role.

  4. Enter either one or two assessment conditions for the advance payments to cover ongoing costs and the contribution for reserves for future maintenance.

    The flows for reserves are posted with account assignment to settlement units. The only difference between these flows and the advance payments is the assignment of service charge keys to the conditions (for settlement participation).

  5. Save your contract.

    Note Note

    In the case of a tenant changeover, you can use the function for creating a next contract .

    End of the note.

Result

You created an assessment contract for a condominium. You can now make assessment postings to this condominium in the COA company code.

The assessments are posted as advance payments. This means that both the debit and credit postings are posted to the condominium owner’s customer account.