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 Creating Master Data and Contracts for a COA

Purpose

To ensure separation of assets (yours as the manager from those of the property owners), you have to create a separate company code for each condominium owners’ association (COA), where you can enter its master data and contracts.

Note Note

You also have to prevent revenue from individual condominiums from going to the condominium owners’ association (COA) rather than to the condominium owners. To do so, you create the real estate contracts for rented condominiums in a separate company code (either the manager company code, object mandate company code, or condominium owner company code) (see Functions of Individual Condominium Management ).

End of the note.

Prerequisites

You created a separate company code for the COA by activating the COA mandate (see Creating a Mandate Company Code ).

Process Flow

I. Create Master Data of Rental Objects

You create object master data in the COA company code in the same way as in other company codes. You create the object hierarchy (business entity, building, land, rental unit) as described in Usage View .

  • Entering Common Property:

    You enter common property in the system in the form of rental units or possibly pooled spaces. By setting the Common Property indicator, you specify those objects that are not part of condominiums.

    During COA settlement, the costs that arise for the object are distributed to the owners based on their ownership share.

  • Entering Condominiums:

    You enter condominiums in the form of rental objects.

    Note Note

    For information on how to convert objects in your manager company code into condominiums (that is, sell them and transfer them to the COA company code), see Conversion to Condominiums .

    End of the note.

    II. Create Assessment Contracts

An assessment contract must be in effect for each rental object at all times beginning with the start date of the mandate. You enter the owner of the rental object in the assessment contract as the contract partner with customer account. For more information, see Creating Assessment Contracts .

III. Create Settlement Units

You have to post the costs and revenues to settlement units in the COA company code. During COA settlement , the system then distributes the costs and revenues from the settlement units to the owners.

Create settlement units and participation groups, and generate cost collectors .

IV. Create Real Estate Contract of the Lease-Out Category for Common Property

If you want to lease out a part of common property, then you create a real estate contract of the Lease-Out category for the common property in the COA company code.

This results in the revenue being credited to the COA. The revenue is posted to a settlement unit and is distributed to the owners during COA settlement.

Result

You created the master data and contracts for a condominium owners’ association (COA). The costs and revenues for condominiums and common property are each posted to their own separate company codes.

You can now post to settlement units, for example, using the one-time posting function. For more information, see Posting for a COA .

If you own condominiums that are part of this COA yourself, or if you manage them for others, then you have to use other company codes for these objects. For more information, see Creating Master Data and Contracts for Condominiums .

Example

For an example for entering object master data of different owners in various company codes, see Example: Third-Party Management .