Definition

A contract between the owner of real estate and the real estate manager, establishing the terms on which the manager administers the real estate on behalf of the owner.

Use

You create management contracts as real estate contracts, for example with contract type Third-party management (vendor)

You can use this contract to enter conditions for calculating and posting management fees.

You can enter the following calculation methods:

Fixed amounts, calculation based on area, object measurement, share of contract condition amount, share of object condition amount, contract measurement, sales-based

Amount per object, amount by rental status, amount per tenant changeover, share of condition group

You can also define your own calculation methods using a BAdI.

Structure

Manager contracts are used to map the business relationship between the manager and the owner. This contract can be seen from two sides:

The customer view in the manager company code: the owner or the COA is the customer.

The vendor view in the COA company code: the manager is the vendor.

The vendor view in the object mandate company code: the manager is the vendor.

The vendor view in the condominium owner company code: the manager is the vendor.

Except for in the condominium owner company code, it is up to you if you manage the manager contract from the customer or vendor viewpoint, or both.

We recommend using the vendor view, for purposes of symmetry and easier migration. Choosing this view also allows you to:

Distribute costs automatically to settlement units in the COA company code

Post costs automatically in the object mandate

Open the mandate in the condominium owner company code, and also make controlling entries for the mandate (bank details, accounting assignment object)