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 Example: Third-Party Management

Starting Situation

The third-party manager, IDES, Inc., owns three business entities. In addition, IDES manages the property of Boris Kapilsky (one building), the property of the firm Schmidt Electric (two buildings), and a condominium owners’ association (COA) with nine units.

Create Company Codes

You enter this data in different company codes as follows:

Company Code

CoCode Name

CoCode Type

Master Data of COA

2000

COA

COA company code

9 original rental units

0001

IDES

Manager company code

3 BEs

7000

Boris Kapilsky

Object mandate company code

1 building

8000

Schmidt Electric

Object mandate company code

2 buildings

RECO

Condominiums

Condominium owner company code

Data in COA Company Code 2000 (COA):

  • Company code 2000 (COA) contains the nine original rental units belonging to the condominium owners’ association. These rental units are occupied as follows in business entity 2000:

    Rental Unit (RU)

    Owner

    Case*

    Leased Out To

    RU 1

    IDES

    Case 1

    Allisa Glenn

    RU 2

    IDES

    Case 1

    Michael Le Clerc

    RU 3

    Schmidt Electric

    Case 2

    Omar Calapino

    RU 4

    Schmidt Electric

    Case 2

    Oleg Kopp

    RU 5

    Kattia Salizar

    Case 3

    Winnie Chung

    RU 6

    Ning Shao

    Case 3

    Ning Shao lives in her own apartment.

    RU 7

    Elena Lopez

    Case 3

    Mikio Oyama

    RU 8

    David Martin

    --

    David Martin handles rental of his condominium himself.

    RU 9

    Common property

    Case 4

    Caretaker

    * For cases 1 to 4, see Creating Master Data and Contracts for a COA

  • In the COA company code 2000, there is only one real estate contract of the Lease-Out category for the common property (contract with the caretaker).

    Data in Manager Company Code 0001 (IDES):

  • Business entities 1 and 2 are owned completely by IDES.

  • Business entity 2000 is a copy of business entity 2000 from company code 2000 (COA). It contains those rental units that are owned by the manager (rental units 1 and 2), as well as the contracts belonging to those rental units (of the Lease-Out category).

  • It is possible to link between the rental units of business entity 2000 in the manager company code and the original rental units in the COA company code because company code 0001 is designated as the manager company code.

    Data in the Object Mandate Company Code 7000 (Boris Kapilsky)

  • Business entity 1 is owned completely by Boris Kapilsky.

  • Boris does not own any condominiums belonging to the condominium owners’ association. Therefore, no copies are needed in company code 7000. It is not necessary to set the Manager Company Code Behavior indicator.

    Data in the Object Mandate Company Code 8000 (Schmidt Electric)

  • Business entities 1 and 2 are owned completely by Schmidt Electric.

  • Business entity 2000 is a copy of business entity 2000 from the COA company code 2000. It contains those rental units of the COA that are owned by Schmidt Electric, as well as the contracts belonging to those rental units (of the Lease-Out category).

    To make it possible for the rental units of business entity 2000 to be linked to the original objects in the COA company code, you have to set the Manager Company Code Behavior indicator in the object mandate company code.

    Data in the Condominium Owner Company Code RECO

  • Business entity 2000 is a copy of business entity 2000 from the COA company code 2000. It contains those rental units that are owned by the investors (condominium owners) and are managed by the manager (rental units 5 and 7), as well as the contracts belonging to those rental units (of the Lease-Out category).