Commercial Real Estate Management
Purpose
Commercial real estate management is a term covering all the functions that you need for managing commercial aspects of real estate, such as management of real estate contracts, all accounting aspects, and settlement of service charges.
Integration
In commercial real estate management the
Financial Accounting
(FI) and
Controlling
(CO) components are integrated with
Flexible Real Estate Management
(RE-FX).
Features
The following subcomponents are available in this component for managing business and accounting aspects of your real estate:
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The real estate contract is able to handle the functions of all types contracts related to real estate management. The contract type controls whether the contract is for a lease-out or lease-in, or if you instead want to set up a service, sales, or leasing contract. G/L account contracts (a sort of dummy for postings) and security deposit agreements are other options. You enter all important data in the contract, including the term, the objects for the contract, and the business partner. You also enter the conditions of the contract and any adjustment rules. These are used for handling the receivables and payables related to the partner recorded in the contract.
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In accounting, the conditions that are entered on the contract (or the rental object) are transferred to Financial Accounting, for example, using the periodic posting function, and then invoiced to the contract partner. In the case of vacancies, they are debited or credited to the vacancy cost center. In addition, accruals and deferrals are used to post rents and operating costs to the correct periods as the revenue is earned or benefits received from the expense. Accounting also provides all functions normally needed for payment transactions, for open items and for dunning.
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Service charge settlement provides all functions for settlement of operating costs and heating expenses, including settlement of heating expenses using external providers (with data medium exchange).
Option Rate Determination and Input Tax Distribution
For real estate objects with mixed usage (both commercial and non-commercial), this function assists you in calculating and posting deductible and non-deductible input tax ( Input Tax Distribution).
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Using this function, you can monitor and settle contracts that are based on sales-based rent.
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This function contains, for example, manual CO planning, CO assessment, and CO settlement on real estate objects.
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This function supports automatic methods for adjusting conditions, that is, the mass change of individual condition amounts for legal or contractual reasons. The various methods available include: free adjustment, index adjustment, representative list of rents adjustment, adjustment using a comparative group of apartments and adjustment of the advance payments made for service charges.