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Procedure documentationPosting Security Deposit Interest

 

When you (as a landlord) sign a contract with a tenant, the tenant must pay you a security deposit. The tenant charges the interest of the security deposit on a yearly basis or when the contract is terminated. You (as the landlord) use this process to post the interest of the security deposit that you pay for the tenant.

Prerequisites

You have made the necessary settings as described in Customizing for Posting Security Deposit Interest.

Procedure

  1. In the real estate contract (transaction RECN), on the Conditions tab page, you specify the frequency and the calculation formula of the deposit interest as follows. If you want the system to calculate the deposit interest regularly (for example, once a year), make the following settings:

    1. On the Terms screen, choose the Display or Change Term pushbutton

    2. In the Frequency field, choose Yearly

    3. ln the Calculation Method field, choose Exact Days

    4. In the Payment Form field, choose In Arrears

    5. On the Conditions screen, enter the unit price and select the calculation formula for the periodic posting of security deposit interest

    If you want the system to calculate the deposit interest only once at a specified time (for example, when the contract is terminated), make the following settings:

    1. On the Terms screen, choose the Display or Change Term pushbutton

    2. ln the Calculation Method field, choose Exact Days

    3. On the Conditions screen, enter the unit price and select the calculation formula for the one-time posting of security deposit interest.

      Note Note

      After you have saves the contract, you must not change the calculation formula in the Calc. Formula field. If you need to change it, first delete the condition and create a new one with the proper calculation formula.

      End of the note.

  2. Save the contract.

    Based on your settings in Customizing and in the contract, the system calculates the interest amount of the security deposit and creates a cash flow item for the interest in the contract.

  3. Post the security deposit interest with the Periodic Postings: Contracts (transaction RERAPP) or with the One-Time Posting program.