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  Option Rate Determination

Definition

The purpose of the option rate is to divide the input tax assigned to real estate objects into a deductible and non-deductible amount, depending on the actual use of the object.

The system determines the option rate on a monthly basis, using the option rate method that is specified for the given object on the calculation date. The option rate method either specifies a fixed option rate or it triggers an automatic calculation. When the automatic calculation is used, the option rate is normally equivalent to the percentage of the object that is rented for commercial use. This percentage can be determined, for example, by the ratio of commercially used to non-commercially used area (or volume).

When the usage of an object is entirely for commercial purposes, the option rate for the object is 100%.

You can still change or make follow-up postings to option rates even after input tax has been posted.

Prerequisites

In Customizing for Flexible Real Estate Management, specify the option rate methods required for your real estate objects. You also define in Customizing which methods are permitted for each object type, and which methods are used as default values. To do this, choose the following path:

Start of the navigation path SAP Customizing Implementation Guide Next navigation step Flexible Real Estate Management (Enterprise Extension) Next navigation step Option Rate Determination and Input Tax Distribution Next navigation step Option Rate Methods End of the navigation path

Procedure

  1. Enter the method for determining the option rate of the particular object under the Option Rate Method tab page.

  2. In the SAP menu, choose:

    Start of the navigation path Accounting Next navigation step Flexible Real Estate Management (Enterprise Extension) Next navigation step Option Rate Determination and Input Tax Distribution Next navigation step Determine Option Rates End of the navigation path

  3. Enter at least the company code.

  4. Select the object types for which you wish to determine the option rates. For example, you can determine the monthly option rates for all rental objects of a business entity by entering the company code and the business entity number in the selection criteria and selecting object type Rental Object .

  5. Select the mode for the option rate determination run.

Result

You receive a list of the option rates determined. You can display the error log for the option rate determination.

Displaying Result of Option Rate Determination

There are two ways of accessing the result of option rate determination:

  • Displaying option rates of all objects of a determination run:

In the SAP menu, choose:

Start of the navigation path Accounting Next navigation step Flexible Real Estate Management (Enterprise Extension) Next navigation step Option Rate Determination and Input Tax Distribution Next navigation step Display Result of Option Rate Determination End of the navigation path

  • Displaying option rates for a particular object of the determination run:

    Access the object and choose the tab page Start of the navigation path Option Rates Next navigation step Subtab Results Option Rate Determination End of the navigation path .