
Option Rate (Composite Rate/Base Rate)
Definition
Option rateUse
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.