Show TOC

 Option Rate

Definition

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.

Use

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.

Note Note

For more information, see Option Rate Determination .

End of the note.

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 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 Start of the navigation path Flexible Real Estate Management Next navigation step Option Rate Determination and Input Tax Distribution Next navigation step Overview of Option Rates of RE Objects End of the navigation path . Using this report, you can also display time periods for which option rate determination was not yet performed.

    End of the note.

Note

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.