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 Third-Party Management

Purpose

Using this component, you can manage real estate objects that are owned by others. The real estate manager receives the mandate of the actual owner, providing the legal basis for managing the owner's property. Each mandate that is granted by an owner has its own dependent real estate objects and processes. These are represented in the system in a separate company code for each mandate. The mandate company code thereby provides the basis for separation of assets between the owner and the manager, and supports the creation of separate financial statements.

A specialized type of third-party management is acting on behalf of a condominium owners’ association(COA).

Features

You can use the following functions for managing property owned by others:

Master Data

  • Representing objects that belong to other owners, with condominiums playing a special role

  • Mapping the relationships between managers and owners (or condominium owners’ associations)

  • Mapping the relationships between the condominium owners’ association and the individual condominium owners

Processes and Functions
Mandates (General)

  • Providing accounting functions for owners and the condominium owners’ association (separation of assets)

  • Managing bank accounts of the owners or condominium owners’ association

  • Posting the management fees

COA Mandates

  • Settling costs and revenue of the condominium owners’ association (COA) to its members ( COA settlement )

  • Performing service charge settlement for tenants who lease condominiums from the owners ( tenant settlement )

  • Creating the annual budget

  • Periodic posting for assessments, and assessment collection

  • Special posting procedures for the condominium owners’ association ( special assessments , reserves)

  • Management of financial transactions with the tenant using a COA bank account, which differs from the bank account of the condominium owner

  • Calculating special assessments

Reporting and Correspondence
Mandates (General)

  • Financial statements of the owner or condominium owners’ association

  • Creation of account statements for the owners

  • Reporting on accounts and items

COA Mandates

  • COA settlement

  • Service charge settlement for tenants who lease condominiums from the owners (tenant settlement)

  • Overall annual budget of the condominium owners’ association, individual annual budgets for each condominium

  • Statement of reserve fund of a COA (overall view)

    To call the Statement of Reserve Fund report, on the SAP Easy Access screen, choose Start of the navigation path Accounting Next navigation step Flexible Real Estate Management Next navigation step Third-Party Management/COA Next navigation step Information System Next navigation step Statement of Reserve Fund End of the navigation path .

  • A detailed view for each assessment contract and owner, showing the reserves and cash of the COA

    To call the Reserve Fund Statement Details report, on the SAP Easy Access screen, choose Start of the navigation path Accounting Next navigation step Flexible Real Estate Management Next navigation step Third-Party Management/COA Next navigation step Information System Next navigation step Reserve Fund Statement Details End of the navigation path .

  • Correspondence activity: Statement of Reserve Fund.

Example

For an example for third-party management and how master data and contracts are entered in different company codes, see Example: Third-Party Management .