General Contract Processing (SAP Library - Real Estate Management (RE))

General Contract Processing

Purpose

Use General Contract Processing for processes that require different views such as credit-/debit-side cash flows within the (traditional) rental and tenant-rental processes.

Lease-in process provides a typical example of the above.

Constraints

General contract processing cannot replace the Rental and Third-party management components.

Differences between rental contracts and general contracts

The core process of the RE component, that is the renting of real estate objects, must be realized with the lease-out as the general contract does not support important rental processes, such as:

Dunning specific to real estate
Correspondence
Rent collection (Account statement entry/manual incoming payment with contract number) specific to real estate
Service charge settlement
Application and offer management

We recommend using rental processes as part of the general contract processing if you are managing simple real estate usage rights (for example, right of way) in return for rent or a one-off payment.