Simulating and Executing Service Charge Settlement 

Use

Use this function to settle all apportionable costs that are charged to tenants as part of property rental in a particular time period.

 You can also post non-apportionable costs with this function.

In Flexible Real Estate Management, all activities related to service charge settlement are performed in the same dialog:

·        Simulation (meaning no postings, no import of D-tapes and no correspondence)

·        Simulation, followed by actual settlement later

·        Direct settlement (actual settlement)

You can settle all service charges (operating costs, heating expenses, external settlement of heating expenses) using service charge settlement.

Prerequisites

       1.      The status of the contracts is active.

       2.      You have created the necessary settlement structure and generated the cost collectors for the settlement units to which postings are to be made.

       3.      You performed option rate determination for the Real Estate objects in question. This process has to be carried out since the service charge settlement requires an option rate to be able to determine the reference factors.

Procedure

Choose

      Flexible Real Estate Management ® Service Charge Settlement ® Settlement

Choose your activity. You have the following options:

·        Create new settlement

There are several steps involved in the settlement. You can either carry out these steps at the same time or one after another.

·        Continue existing settlement

You can save the settlement after each successful step, access it again and continue processing without having to start again. This is recommended for large settlements where you may want to check each step before continuing with the next. If a step has errors, you have to correct them and repeat the step.

·        Store simulated settlement

If you have created a settlement in the Simulation with Subsequent Actual Settlement mode, you can convert your simulated settlement into an actual settlement that is later checked by the system (settlement steps can be undone or reversed).

·        Display results of settlement

You can call up the results of a settlement. To do so, enter the settlement ID.

·        Reverse settlement

You can either reverse a whole settlement or the separate steps. Note that you also have to reverse the dependent steps of each step you reverse.

In the Perform Settlement Upto area, enter the step up to which the settlement is to be carried out.

You can perform or simulate the service charge settlement in steps (see Continue existing settlement).  The type and number of settlement steps varies depending on the settlement method.

Enter the settlement method.

The settlement method you choose determines whether you perform an actual settlement, a simulation with subsequent actual settlement, or only a simulation.

The settlement method also determines whether changes to settlement units, assigned rental objects or contracts can be made. The following methods are available:

·        Simulation only (without subsequent actual settlement): This method is recommended for simulating small settlements. Changes have highest priority. You can execute all settlement steps except posting.

·        Simulation (with subsequent actual settlement)

You can first simulate and save the settlement, and then call it up at a later date and post it. Changes have priority and the processor receives a warning.

To post the settlement, choose:

Flexible Real Estate Management ® Service Charge Settlement ® Settlement ® Posting of Settlement

·        Actual settlement

You can perform the settlement in steps or as a whole. The settlement has priority over all changes. If you want to simulate the posting step first before carrying out the posting, choose:

Flexible Real Estate Management ® Service Charge Settlement ® Posting of Settlement.

Enter the settlement type.

The following settlement types are available:

·        Internal service charge settlement

You can identify a DME settlement unit as being for internal settlement. The settlement is performed without an external settlement company. A settlement unit that is not assigned to a DME settlement unit can also only be settled internally.

An internal service charge settlement is generally performed for reporting purposes.

·        External service charge settlement

The settlement is performed with an external settlement company.

·        Service charge settlement (internal and external)

Default value. The complete service charge settlement is performed.

·        Only settle master settlement units

For further information, refer to Master Settlement Units.

Choose a settlement schema.

Choose a group of parameters for the settlement. Settings for the settlement parameters are made in Customizing. To do so, choose the following path in the application menu:

Customizing ® Flexible Real Estate Management ® Service Charge Settlement ® Settlement Parameters

You define additional parameters on the Parameters tab.

Selection Tab Page

If you want to perform settlement using a DME settlement unit, set the Selection via DME SU indicator.

Also enter the date up to which the settlement is to be performed. 

 

Perform/Simulate Settlement

In the menu bar, choose  Execute (F8) to execute or simulate the settlement. A list of all the settlement units to be settled is displayed.

If your settlement contains errors, you can display the error log by choosing  Settlement Log.

 You do not have to start the settlement again! Save the settlement. When you have corrected the error, choose the Continue Existing Settlement activity in the initial screen.

If you simulated the settlement, choose the Store Simulated Settlement activity.  Enter the settlement ID and choose  Execute (F8).

Result

The settlement is posted.