Service Charge Settlement 

Purpose

This component contains the functions for settling all service charges for Real Estate contracts and rental objects that have already been entered in financial accounting and cost accounting:

·         Settlement of operating costs and heating expenses

·         Settlement of heating expenses monitored by external settlement companies (over data medium exchange)

Use

You use this component to distribute apportionable costs to tenants for a particular settlement period, using individual control mechanisms:

·        Categorizing of service charges incurred (by means of the service charge key)

·        Time-dependent apportioning of costs based on measurements (fixed values, consumption values, percentage shares, equal shares) or based on conditions in the contract

·        Time-dependent settlement participation of individual rental objects

·        Clearing of costs that are not apportionable to the tenant (entering a percentage landlord share, or a definition of maximum costs, or settlement of non-apportionable service charges)

·        Apportionment of vacancy costs to the tenant

·        Integration of external settlement results

 

 

Process Flow

Below is a description of the processes involved in service charge settlement.

I.    Master Data for Settlement Unit, Rental Object and Contract

...

       1.      Enter measurements in each participating rental object.

       2.      Assign the rental objects, per business entity, to a participation group.

       3.      Create a settlement unit for each service charge key, and assign the rental objects participating in the settlement to this settlement unit using the participation group.

If costs for more than one settlement unit are to be jointly invoiced, you have to create a master settlement unit.

       4.      The settlement participation is automatically generated for each contract. However you can define exceptions in each contract.

II.   Incoming Invoice Posting

Account assignment of service charges is made to the respective settlement units or master settlement units in the Financial Accounting (FI) component. The settlement amount is transferred automatically to the correct settlement period by means of the settlement reference date.

III.  Making Service Charge Settlements

You carry out the run for the service charge settlement at the end of the settlement period:

·        The advance payments made are transferred using a batch input session.

·        There are several steps involved in the settlement. You can save each step (except posting) and call it again.

·        The results of settlement can be posted directly to Financial Accounting.

For more information on performing service charge settlement, refer to Simulating and Executing Service Charge Settlement.

Result

Depending on the control factors, the service charge settlement performs the following activities:

...

       1.      Calculation of total costs for the settlement period for each service charge key

       2.      Cost apportionment to the relevant contracts or rental objects

       3.      Posting cost shares to tenant accounts

       4.      Determination of the advance payments (actual payments) made by the tenant for which credit transfer postings are made

       5.      Calculation of the adjustment of the new advance payments/flat rates on the basis of the actual costs (optional)