Purpose

You can use this function to settle costs and revenue on real estate objects to other real estate objects or CO objects based on their origin. To do so, you define settlement rules that are used for settling costs and revenue.

You can define settlement rules for the following real estate objects:

Business entity

Building

Property

Rental object

Real estate contract

Real estate objects can also receive costs and revenue from other CO objects, such as cost centers, orders, or fixed assets. In this case, a settlement unit can also be a receiver.

Here we describe the procedure when a real estate object is the sender.

For more information on CO settlement and the CO objects involved, including real estate objects as receivers, refer to CO Settlement in the documentation of the Controlling (CO) component.

Note that predistribution by option rates is only possible for a real estate object if the purchase order or invoice already has account assignment to a real estate object in Financial Accounting. If an invoice or order has account assignment to another CO object (such as an order) and is then settled to a real estate object using CO settlement, the tax information on the source document is lost. The real estate object is only debited with the net amount.

Prerequisites

All receiving account assignment objects must be released for account assignment.

Process Flow

I. Customizing

In Customizing for Flexible Real Estate Management , you made all required settings:

SAP Customizing Implementation Guide → Flexible Real Estate Management (Enterprise Extension) → Controlling

Settlement cost elements

Settlement schema, source structure, PA transfer structure

Settlement profile and its default values

Selection variants for collective processing (you can also create and edit these in the application)

II. Edit Settlement Rule in Master Data

You assign a settlement rule to each object that you want to settle. On the SAP Easy Access screen, choose:

Accounting → Flexible Real Estate Management → RE Navigator → <your real estate object>

In the menu, choose Edit → CO Settlement Rule.

Enter the following for the settlement rule:

Receivers of the costs, such as cost centers, orders (the receivers have to already be created and possibly activated or released)

Settlement schema, source structure, PA transfer structure

Settlement profile

Distribution rule

III. Posting Costs to Objects

The CO settlement takes account of all costs and revenues that have been posted to real estate objects. These are costs that you posted periodically, for example using manual posting or distribution.

IV. Carrying Out CO Settlement

There are two possible methods for CO settlement in Flexible Real Estate Management

Single Processing:

Settlement by selecting concrete objects. Using this method you can also settle all subordinate objects of the given object at the same time (for example, all rental objects of a business entity).

Collective Processing:

Here you can choose additional selection criteria. You can create or edit a variant for this (for example, selection by usage type or contract type).

You have to use this procedure if you want to run the settlement as a background job.

On the SAP Easy Access screen, choose:

Accounting → Flexible Real Estate Management → Controlling → Period-End Closing → Settlement

Result

The CO settlement credits the actual costs on the sender object and debits them on the receiver.

How this is done depends on the Customizing settings. The posting is made in one of these two ways:

Using the same cost element that was used for the original debits

Using a special settlement cost element (secondary cost element)

You can display the postings in the Controlling reports in the Information System .