The option rate of a real estate object specifies the percentage of input tax, originally posted as completely deductible, that is really deductible for the particular object.
The option rate forms the basis for input tax processing as required by law, and it also takes into consideration the changing financial conditions of a real estate object. You use option rates to define the basis for input tax distribution into deductible and non-deductible parts.
The validity period of an option rate is the calendar month, which means that option rates have to be determined at monthly intervals using the option rate method assigned to that particular real estate object.
In Flexible Real Estate Management, option rates can be determined for the following object types, depending on the type of costs incurred and posted on the object:
Real estate contract
Business entity
Building
Land
Rental object
Settlement unit
Note
You can display the changes to the option rate over time for a real estate object. To access the report, on the
SAP Easy Access
screen, choose
. Using this report, you can also display time periods for which option rate determination was not yet performed.
Option rates are only calculated in company codes that “opt” for input tax. If the company code does not opt for input tax, the input tax is always posted as 100% deductible.