Option Rate (Composite Rate/Base Rate) 

Definition

Option rate

Use

This option rate forms the basis for input tax processing as required by law, and it also takes into consideration the changing financial conditions of a real estate object. You use option rates to define the basis for input tax distribution into deductible and non-deductible parts.

The validity period of an option rate is one calendar month; you therefore have to recalculate option rates each month.

In accordance with the costs due and the costs posted, you have to maintain option rates in the system in:

Integration

During option rate determination for correction items (input tax treatment of fixed assets), the various phases of the input tax treatment as well as composite rates and a base rate are determined.