You can specify that an annual rent is divided into equal portions, although the periods themselves are of unequal length. This procedure is standard in certain countries. In the United Kingdom, this use of fixed periods is referred to as quarter days.
To specify the periods for cash flow calculation, choose
If you do not define any f
ixed periods
here, then the
Fixed Periods
field does not appear when you process the frequency term in the rental object or contract master data. In this way, you can avoid incorrect entries in this field.
In Customizing you can specify how a calendar year is split into fixed periods for calculating the cash flow. You assign a key to each set of fixed periods. In the frequency term of the contract or rental object, you can then use this key to specify that the annual amount should be split into equal amounts for these periods (even if they have varying lengths).
Note
For more information, see the Example for Cash Flow Generationbelow.
The following applies when you use fixed periods:
The same amount is paid in each full period.
The amount is calculated by dividing the annual condition amount by the number of periods defined in Customizing.
You can specify one period in Customizing that the system then assigns any rounding differences. If you do not set this rounding indicator for any period, the rounding differences are not taken into account. Therefore, the total of all the amounts from each period may be slightly higher or lower than the annual condition amount.
Note
The due date* is calculated on the basis of the total period. If periods are split, the due date remains the same.
For more information, see the Example for Due Date Calculationin Quarter Days: Calculation Examples .
You are processing a real estate contract or a rental object and have already assigned a condition .
Choose the
Frequency
term category on the
Posting Parameters
tab page.
On the
Frequency
tab page on the detail screen area, you can choose a period key in the
Fixed Periods
field. The period keys offered here are those you entered in Customizing as described above.
Enter all other details for the frequency and save your entries.
To see examples of calculations related to the
User-Def. Start
(user-defined start) field and the
Calculation Method
field, see
Quarter Days: Calculation Examples
.
The system split the annual condition amount from the cash flow into equal amounts. You can display your fixed periods and the amounts that the system calculated for them on the
Overviews
tab page in the
Partner-Related Cash Flow
.
Example for Cash Flow Generation
You specified the following periods in Customizing for the key
Fixed Periods: QUARTER_UK
(quarter days):
Num. |
Day |
Month |
Rounding Difference (see Quarter Days: Calculation Examples ) |
1 |
25 |
3 |
X |
2 |
24 |
6 |
|
3 |
29 |
9 |
|
4 |
25 |
12 |
These periods are used as the basis for generating the cash flow. The annual amount is divided by the number of periods and the same amount is calculated for each (full) period. Rounding differences are added to the period you specified (only one period). In this example, it is the first period.
If an amount of 12,000 EUR is the agreed condition amount per year, this would result in an amount per period of 3000 EUR in our example. The following cash flow is generated:
Calculation From |
Calculation To |
Amount |
… |
||
12/25/2002 |
03/24/2003 |
3000 |
03/25/2003 |
06/23/2003 |
3000 |
06/24/2003 |
09/28/2003 |
3000 |
09/28/2003 |
12/24/2003 |
3000 |
… |
*The due date is determined by the payment form and the due date correction rule. The due date correction rule specifies how the date determined from the payment form (in advance, mid-period, in arrears) is moved.In addition you can specify whether or not at the start or end of a contract or rental object the due dates should be moved to the start or end.