Processing Real Estate Contracts 

Screen Layout

       1.      Navigation Area

       2.      Detail View

Use

You can create, change and display real estate contracts. Below is a description of how to create a real estate contract.

 

Procedure

You can search for existing contracts in the system according to various criteria, and display and change them.

Pool

Direct selection

If you are looking for a specific contract, enter the contract type, company code and/or contract number and choose  Execute Selection.

Limited search

You can limit the worklist by defining certain criteria, such as the processor or the number of contracts to be displayed. Example: only the last 10 contracts processed are displayed. The systems lists the contracts found in the table. Choose  Change Contract or  Display Contract to change or display a particular contract. Choose  Delete Selection to delete the contracts you selected. You can now start a new search.

 

Find

Contract type	You can search for a particular contract type. Enter the company code and contract type and choose  Execute Selection.
Find by	You can specify different criteria for the search, such as by partner or objects. Depending on what you specify, further fields are displayed in which you can define your search criteria.

 

Detail View

 

General Data tab

Before making postings on a contract, you have to activate it by choosing  RE: Activate Contract. The status display indicates the current status of the contract.

 

Partners tab

·         Here you assign the role and name of the business partner(s) to the contract You can assign only one main contractual partner in any given time period (for example, a partner with customer account for a lease-out). However, you can assign main contractual partners one after the other in different time periods.

 For further information on time-dependent assignments, see Management of Time Slots.

·         You can go to the master data of the business partner by choosing  Business Partner Master Data. If you are authorized to do so, you can change the business partner master data by choosing  Change.

 For further information on business partner management, refer to the SAP Business Partner documentation.

 

Objects tab

·         You can assign time-dependent usage objects and object groups  to your contracts. (You can only assign rental objects and object groups to contracts of the lease-out category.) Insert your objects/object groups in the table by choosing  Insert Object(s). Define the validity period for each object (group) in the detail screen. You can access and process the detail screen of each object or object group by choosing  Previous Entry and  Next Entry. To assign a rental object to an object group, enter the number in the Group Number field.

 If a contract type has the setting Objects are leased out as the Contract Reference in Customizing, you can only assign object groups or rental objects to the contract in the application (regardless of the object types, such as business entity or building, that you assigned to the contract type in Customizing).

·         You can change the time-dependent data for assignments and object data for the rental object you select.  The measurements and conditions defined in the rental object are automatically copied.

·         If you choose  Extract Rental Spaces, you can extract rental spaces in the change mode and assign them to a contract or object group in the contract.

·         In the display mode, you can display an overview of rental objects and object groups by their validity periods by choosing  Current Time Slot and  Complete Period.

 For further information on time-dependent entries, see Management of Time Slots.

 

Term tab

In this tab you define periods of time for the contract term, periods of notice and renewal rules for limited contracts. Choose Term in the table. In the lower part of the screen, tabs for Term and Memo are displayed. Enter the following data:

a)       Date of contract start in the case of unlimited contracts

b)       Date the first contract ends in the case of limited contracts, in addition. The date of first posting is automatically defaulted. The system calculates the term in months and sets the status of the contract (for instance, Completed).

 For more information, see:

Notice

Renewal

 

Posting Parameterstab

In this tab you define time-dependent posting terms, and terms for payment frequency and organizational assignments (profit center, business area).

 For more information, see Posting Parameters.

 

Conditions tab

Conditions can either be assigned in the rental object or in the real estate contract.

 Default Condition(s):

a)       Default conditions: Conditions that are defined as such in Customizing, and are supplied as default values in the contract and can be copied. In the application menu, choose:

Customizing ® Flexible Real Estate Management (Real Estate Extension) ® Conditions and Flows ® Default Conditions

b)       Transferred conditions: Conditions from the contract’s rental objects can be transferred to the contract if they are designated as transferred conditions. You set the indicator for this in Customizing. Choose the following path in the application menu:

Customizing ® Flexible Real Estate Management (Real Estate Extension) ® Conditions and Flows ® Condition Purpose

Calculation Formulas

Rental unit Y is assigned to contract X. The net condition “basic rent” is linked to this rental unit. The following values are also set:

§         Valid from: 01/01/2001

§         Calculation formula: Residential space in m² (= measurement)

§         Calculation factor: 300 (often corresponds with the measurement amount)

§         Unit price: 10 EUR/m²

§         Tax code: A1

The amounts valid on the key date are displayed. If the space has been changed over the history of the rental unit, you can display a list of all amounts.

Distribution Formulas

You have the option of defining for each condition whether transfer postings can be made to the individual objects; this lets you distribute revenues earned (debit-side condition type) and costs incurred (credit-side condition type) to the objects according to cause.

Internal calculation and distribution formulas are predefined. However you can define further “external” rules in Customizing on the basis of internal rules. To do this, choose the following path in the application menu:

Customizing ® Flexible Real Estate Management (Real Estate Extension) ® Conditions and Flows ® Calculation and Distribution Formulas 

 

Settlement Participation tab

In the upper table you can display an overview of rental objects that participate in the service charge settlement.  These objects are determined by the object assignment in the contract. The periods of rental objects are derived from their assignment to settlement units.

In the lower table you can display an overview of the settlement participation of the object you select. You can change the validity period and the participation type. Changes are identified in the status column with the icon . For further information on settlement participation, see Changing Settlement Participation in RE Contract.

 

Resubmission tab

Here you define your resubmission dates for processing the contract.

Enter the necessary parameters for the resubmission rules defined in Customizing. Generate the dates on which you want to process the contract by choosing  Regenerate dates. Enter the date up to which you want to generate dates.

You create resubmission rules and resubmission reasons in Customizing. Choose:

Customizing ® Flexible Real Estate Management (Real Estate Extension) ® Contract ® Resubmission

There is a general function for updating resubmission dates. Choose the Regenerate dates function. This update is required when the date mentioned above is past.