Determining Option Rates (SAP Library - Flexible Real Estate Management (RE-FX))

Determining Option Rates

Definition

Option rates are related to input tax for real estate objects. The option rate specifies the percentage of input tax, originally posted as completely deductible, that is really deductible for a real estate object.

The system determines the option rate on a monthly basis, using the option rate method that is specified for the given object on the calculation date. The option rate method either specifies a fixed option rate, or it triggers an automatic calculation. When the automatic calculation is used, the option rate is normally equivalent to the percentage of the object that is rented for commercial use. This percentage can be determined, for example, by the ratio of commercially used to non-commercially used area (or volume).

Example When an object is completely devoted to commercial use, the option rate for the object is 100%.

Note You can still change or make follow-up postings to option rates even after input tax has been posted.

Prerequisites

Customizing

In Customizing for Flexible Real Estate Management, specify the option methods you need for your real estate objects. (This is not yet possible for settlement units in Release 1.10.). To do this, choose the following path in the application menu:

Customizing ® Flexible Real Estate Management ® Option Rate Determination and Input Tax Distribution ® Option Rate Methods

Input tax distribution

The prerequisite for input tax distribution is that opting is set to active in the company code. In company codes in which the opting indicator is not set, the system can determine and store option rates using the option rate method entered, but it is not possible to distribute the input tax.

Caution In Release 1.10 it is not yet possible to distribute input tax.

Procedure

You can simulate the option rate determination or perform an update run.

Enter your selection criteria and select the real estate objects, for which you want to determine option rates. Choose Execute.

You receive a list of the option rates determined. To view the error log for the option rate determination, choose Error Log.