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 Service Charge Settlement

Purpose

You use this process to settle service charges incurred for a rental (operating and heating expenses).

You use this process to distribute apportionable heating costs to the tenants in a particular settlement period while taking account of individual control mechanisms:

  • Categorizing service charges incurred

  • Time-dependent apportionment of costs according to fixed values, consumption values, percentage shares, equal shares or existing conditions

  • Time-dependent settlement participation of individual rental units

  • No clearing of apportionable costs to the tenant (detailing a percentage landlord share/defining of non apportionable service charges)

  • Apportionment of vacancy costs to the tenant

  • Adjustment of advance payments and flat rates

  • Cost surcharges on the settlement

  • External heating expenses settlement

Process Flow

Processes required for carrying out a service charge settlement:

I. Master data of settlement unit, rental unit and lease-out

  1. Create a settlement unit for each service charge key and assign the rental units participating in the settlement to this settlement unit.

  2. If you want to invoice costs for several settlement units on one invoice, create a master settlement unit .

  3. Define the apportionment units (= apportionment units of all settlement units to which the rental unit is assigned) for each participating rental unit.

  4. Define the apportionment factors and the settlement participation for the lease-outs.

If you want to carry out a heating expenses settlement via an external settlement company, refer to Process Flow: External Heating Expenses Settlement .

II. Incoming invoice posting

You carry out the account assignment of the service charges to the corresponding settlement units or master settlement units in the Financial Accounting component. The amount is automatically set to the correct settlement period using the settlement reference date (that you have to enter).

You can also post costs to the settlement unit using an internal activity assignment , a CO settlement , a purchase order from Materials Management (MM) or an actual costs transfer posting .

III. Service charge settlement

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.

  • The settlement result is posted directly.

Result

In coordination with the controlling factors, the full 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 lease-outs or rental units

  3. Posting cost shares to tenant accounts

  4. Calculation of advance payments (actual payments) made by the tenant for which a credit transfer posting is made

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

An evaluation of the settlement run is possible during service charge settlement processing.

When you opt lease-outs, an adjustment posting is made using the current option rates ( Example: Opting/Non-opting settlements )