General Contract
General Contracts
Definition
A flexible contract (object) used to represent the rental processes from different viewpoints:
Vendor view (tenant rental)
Customer view (for instance for the hiring of rights such as rights of way)
Vendor/customer view (for instance tenant rental with subsequent rental of rights)
The different views are defined by means of the contract type.
Use
The following (sample) scenarios can be represented in the system:
Vendor contracts (e.g. tenant rental) |
Vendor/customer contracts |
Customer contracts |
Own usage |
You are a tenant of real estate. Example: you can create a lease-in for your business activities. Cash flows for the contract appear as expense on the balance sheet. See also: |
You are both tenant and landlord at the same time. Example: you have tenant-rented real estate and grant a simple usage right for a LI object to a third party. Cash flows for the contract appear as expense (vendor view) and revenue (customer view) on the balance sheet. |
You are a landlord. Example: you rent simple usage rights, such as the right of way for a property or the right to store certain objects on a property. Cash flows appear as revenue on the balance sheet. |
You are the owner of the real estate objects in question and rent them internally (vendor view). Cash flows appear on the cost centers of your organization, with auxiliary account assignment of the revenue on the contract. |
You cannot represent the complete rental process of Real Estate objects with the customer view of the general contract because the general contract does not support the following processes (in all views):
You have to use the lease-out for these processes. |
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You can structure several general contracts with a common business process in one contract hierarchy by assigning them to a main contract . |
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Structure
Contract type
This is the factor that controls a general contract. You use the contract type to determine:
If you want to represent vendor and/or customer business processes
If you want to represent a tenant rental process
Which adjustment methods are permitted for the conditions
If the real estate is rented for own usage
If costs or revenues from the business transactions are transferred correctly to the individual Real Estate objects
Term
You process the notice data in the contract. It is possible to renew the contract automatically by predefining renewal options or by setting these options in the contract itself.
Subject of contract: Real Estate objects
You assign Real Estate objects to the contract; the system treats these with their entire hierarchy, in other words, if you assign a business entity to the contract, the integral parts assigned to the business entity - property, buildings, rental units - are also automatically assigned to the contract.
You can either display the objects as a hierarchy or process them (change/display) in the contract.
The system automatically checks the availability of the Real Estate objects.
Payment data / conditions / transfer postings on objects
In the contract, you define the payment details (payment method, payment form, payment frequency) for the condition items chosen and assign a business partner to each condition type.
Alternatively, you can determine a portion for each condition type and object that is not to be transferred to the contract but to individual objects; this lets you distribute earned revenue (customer condition type) and costs incurred (vendor condition type) to the objects as and where they arise.
In the case of own usage, you can either specify one cost center for the cash flow or a different cost center for each condition type.
You trigger posting procedures with the Periodic postings function.
Resubmission
You can use your own rules to generate resubmission dates for processing the contract.
A special report is available to help you check resubmission dates ( Checking Resubmission Dates ).
The following (sample) scenarios can be represented in the system:
Vendor contracts (e.g. tenant rental) |
Vendor/customer contracts |
Customer contracts |
Own usage |
You are a tenant of real estate. Example: you can create a lease-in for your business activities. Cash flows for the contract appear as expense on the balance sheet. See also: |
You are both tenant and landlord at the same time. Example: you have tenant-rented real estate and grant a simple usage right for a LI object to a third party. Cash flows for the contract appear as expense (vendor view) and revenue (customer view) on the balance sheet. |
You are a landlord. Example: you rent simple usage rights, such as the right of way for a property or the right to store certain objects on a property. Cash flows appear as revenue on the balance sheet. |
You are the owner of the real estate objects in question and rent them internally (vendor view). Cash flows appear on the cost centers of your organization, with auxiliary account assignment of the revenue on the contract. |
You cannot represent the complete rental process of Real Estate objects with the customer view of the general contract because the general contract does not support the following processes (in all views):
You have to use the lease-out for these processes. |
|||
You can structure several general contracts with a common business process in one contract hierarchy by assigning them to a main contract . |
|||
Structure
Contract type
This is the factor that controls a general contract. You use the contract type to determine:
If you want to represent vendor and/or customer business processes
If you want to represent a tenant rental process
Which adjustment methods are permitted for the conditions
If the real estate is rented for own usage
If costs or revenues from the business transactions are transferred correctly to the individual Real Estate objects
Term
You process the notice data in the contract. It is possible to renew the contract automatically by predefining renewal options or by setting these options in the contract itself.
Subject of contract: Real Estate objects
You assign Real Estate objects to the contract; the system treats these with their entire hierarchy, in other words, if you assign a business entity to the contract, the integral parts assigned to the business entity - property, buildings, rental units - are also automatically assigned to the contract.
You can either display the objects as a hierarchy or process them (change/display) in the contract.
The system automatically checks the availability of the Real Estate objects.
Payment data / conditions / transfer postings on objects
In the contract, you define the payment details (payment method, payment form, payment frequency) for the condition items chosen and assign a business partner to each condition type.
Alternatively, you can determine a portion for each condition type and object that is not to be transferred to the contract but to individual objects; this lets you distribute earned revenue (customer condition type) and costs incurred (vendor condition type) to the objects as and where they arise.
In the case of own usage, you can either specify one cost center for the cash flow or a different cost center for each condition type.
You trigger posting procedures with the Periodic postings function.
Resubmission
You can use your own rules to generate resubmission dates for processing the contract.
A special report is available to help you check resubmission dates ( Checking Resubmission Dates ).