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 Conversion to Condominiums

Use

You use this function when you, as a third-party manager, want to convert real estate objects you own into condominiums governed by a condominium owners’ association (COA). You can transfer the objects to an existing COA company code, or you can create a new company code for the objects at the same time that you convert them. The system transfers the objects so that the original rental objects are in the COA company code and these are linked to objects in the manager company code.

Prerequisites

  • You made settings in Customizing for number ranges. In Customizing for Start of the navigation path Flexible Real Estate Management(RE-FX), chooseThird-Party Management Next navigation step Master Data of COA Mandate and Object Mandate End of the navigation path .

  • You have rental objects in your company code which you want to sell and convert to condominiums.

Features

When you use this function, the system transfers the original rental object from the manager company code to the COA company code. The rental object is ended in the manager company code, but remains there as a copy with a link to the original object in the COA company code. You may have to use the worklist to process existing contracts for these objects.

If you do not yet have a COA company code, you can have the system create it at the same time as the objects are converted.

Note Note

When you use this function, you have to create the assessment contracts for these objects manually in the COA company code.

End of the note.

There are two possible scenarios when you convert your own objects into condominiums:

  • Case 1: You sell all objects of a business entity and transfer them to a COA company code. Then you take on management tasks for the condominium owners’ association (COA) of this business entity. You have to cancel the contracts for the rental objects you sold, and if necessary, create new ones in the condominium owner company code or the object mandate company code.

  • Case 2: You sell some rental objects in a business entity while retaining possession of others. You transfer all of these objects to a COA company code. Then you take on management tasks for the condominium owners’ association (COA) of this business entity.

    Rental objects that belong to the COA, but are still owned by you, the manager, are not cancelled in the manager company code.

    You can continue to manage the contracts for these rental objects in the manager company code. They still reference the rental object in the manager company code. You can perform all processes (such as, periodic posting, rent adjustment), with the exception of service charge settlement/tenant settlement, in the manager company code.

Conversion to Condominiums:

Activities

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 Next navigation step Condominium Conversion (Create COA from Manager Company Code) End of the navigation path .

For more information, see Transfer Own Objects to COA .

It is not possible to reverse the transfer of these objects using automatic functions .