CAM Recovery

SAP Common Area Maintenance Expense Recovery
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Table of content
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© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Table of content
1 SAP Common Area Maintenance Expense Recovery
1.1 CAM Expense Recovery
1.1.1 CAM Expense Recovery Lifecycle
1.1.2 CAM Master Data
1.1.2.1 CAM Terms
1.1.2.2 CAM Expense Pool
1.1.2.3 CAM Parameter Maintenance and Assignment
1.1.2.3.1 Maintaining CAM Parameters and Assigning Them to a Real Estate O
1.1.2.3.1.1 Maintaining and Assigning CAM Terms
1.1.2.4 CAM Expense Calculation Methods
1.1.2.4.1 Base Year Method
1.1.2.4.2 Gross-Up Method
1.1.2.4.3 Base Year with Gross-Up Method
1.1.2.4.4 Denominator Method
1.1.2.4.5 Capping
1.1.2.4.6 Markup
1.1.2.4.7 Major Tenant Contribution
1.1.3 CAM Expense Posting
1.1.3.1 Posting CAM Expenses
1.1.4 CAM Expense Recovery Run
1.1.4.1 CAM Expense Recovery Steps
1.1.4.1.1 Running CAM Expense Recovery
1.1.5 Information Systems
1.1.6 Periodic Processing
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1 SAP Common Area Maintenance Expense Recovery
SAP Common Area Maintenance Expense Recovery is a flexible and dynamic application that distributes expenses associated with the common area
maintenance (CAM) of leased commercial buildings among tenants according to individual leases. Examples of CAM expenses are lawn maintenance for a
business park and water usage for a building that associated tenants share.
Landlords of large commercial real estate properties, for example, shopping malls, pay the expenses for CAM to service providers and then apportion CAM
expenses to tenants according to contractual stipulations.
It is important that CAM invoices reflect lease agreements and that they are a clear and proper billing of the CAM expenses involved. The CAM administrative
process is potentially a contentious issue. It is important for landlords to document the process in order to be able to demonstrate it in the event that CAM
expenses are challenged by tenants. To be prepared for audits, landlords need to be in possession of all the facts and the overall calculations regarding CAM
expenses.
In North America, CAM expenses are not necessarily settled for all tenants at the same time, but can be processed based on lease-specific terms. Calculations
can differ per tenant for the same CAM expense on the same property. In some cases, landlords can charge tenant CAM expenses that are above the actual
CAM expenses incurred, for example, landlords may invoice tenants for additional expenses, such as management fees or administration fees.
Anchor and national tenants may negotiate very specific leases that limit some CAM expenses and completely eliminate some others. For the other tenants, their
lease agreement details how such major tenants’ contributions to CAM expenses are taken into account and affect their CAM calculations.
In SAP Common Area Maintenance Expense Recovery, you can apply different provisions per group of expenses, called expense pools, in real estate contracts.
The interactive CAM expense recovery process allows you to simulate CAM calculations and make adjustments to CAM calculations before CAM expenses are
distributed to tenants. In some cases, for example, following the addition of an administrative fee, the sum of the apportioned CAM expenses does not have to
correspond to the actual CAM expenses incurred by landlords.
The general CAM expense recovery process is similar to the existing Service Charge Settlement (SCS) process in Flexible Real Estate Management (RE-FX).
The difference between the two processes is in the combinations of calculations, exceptions, frequency of invoicing, and calculating on a one-off lease level for
CAM expense recovery rather than on mass (for example, an entire property) for SCS.
Integration
SAP Common Area Maintenance Expense Recovery is tightly integrated with the SAP ERP 6.0 component Flexible Real Estate Management (RE-FX) and has
similarities with Service Charge Settlement (SCS).
The application accommodates the additional calculations and functions that are standard business practices for the recovery of CAM-relevant expenses in the
area of North American commercial real estate.
SAP Common Area Maintenance Expense Recovery Architectural Landscape
The CAM expense recovery process starts and ends in Financial Accounting (FI/CO). The process starts in Accounts Payable (FI-AP) with the payment of a
service provider invoice by the landlord of a commercial real estate property and the posting of the invoice into Accounts Payable (FI-AP) by, for example, an AP
clerk. Service charges relevant to CAM expense recovery can also be entered via purchase orders in Materials Management Logistic Invoice Verification (MM-
LIV). At the end of a CAM expense recovery run, the calculated CAM expenses are posted to Accounts Receivable (FI-AR) and a tenant's invoice for apportioned
CAM expenses is issued.
If you indicate that service charges for a business entity are CAM-relevant, then the service charges for real estate contracts for the business entity are settled by
SAP Common Area Maintenance Expense Recovery. Service charges for business entities that are not CAM-relevant are settled by Service Charge Settlement
(SCS).
The CAM expense recovery process draws on CAM-specific master data and CAM calculation methods, which you maintain for real estate objects in the RE
Navigator of Flexible Real Estate Management (RE-FX), as well as CAM-specific Customizing, which you can find in Customizing for Flexible Real Estate
Management (RE-FX) under CAM Expense Recovery . CAM expense recovery uses a flexible and dynamic multiple-step process to distribute CAM expenses
per tenant according to the conditions negotiated by the tenant and the landlord in the relevant real estate contract. CAM expense recovery can simulate the
calculation of expenses. It also allows you to post the CAM expenses calculated to Accounts Receivable (FI-AR) resulting in the tenant receiving an invoice
detailing the tenant's pro rata share of CAM expenses.
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Features
The SAP Common Area Maintenance Expense Recovery business process includes the following:
1. CAM-specific master data and calculation methods (see CAM Master Data and CAM Expense Calculation Methods)
You maintain CAM-specific master data and specify calculation methods for real estate objects such as building entities, buildings, and real estate
contracts.
2. CAM expense recovery lifecycle (see CAM Expense Recovery Lifecycle)
This process includes the creation and maintenance of a tenant’s real estate contract data relevant to the CAM expense recovery process. This lifecycle
takes the real estate contract lifecycle from the real estate contract’s creation to its termination and includes, for example, condition adjustments and CAM
expense recovery.
3. CAM expense posting (see CAM Expense Posting)
To post service charges for CAM expense recovery, you use CAM-relevant master data in standard SAP invoicing transactions.
4. CAM expense recovery (see CAM Expense Recovery)
This takes CAM expense recovery from the step of receiving a service charges invoice to the steps of running a CAM expense recovery and posting the
result of a CAM expense recovery run in the General Ledger (G/L) and in Accounts Receivable (FI-AR).
The previous steps for maintaining CAM master data and real estate contract data and for posting CAM expenses are prerequisites for CAM expense
recovery.
More Information
For more information about Flexible Real Estate Management, see SAP Library for SAP ERP under SAP ERP Central Component Flexible Real Estate
Management (RE-FX) .
For more information about SCS, see Flexible Real Estate Management (RE-FX) Commercial Real Estate Management Service Charge Settlement
(SCS) .
For more information about Financial Accounting, see SAP Library for SAP ERP under SAP ERP Central Component Financial Accounting .
1.1 CAM Expense Recovery
You use SAP Common Area Maintenance Expense Recovery to distribute apportioned expenses for common area maintenance (CAM) that arise during a
particular settlement period. You can simulate the recovery of CAM expenses or you can post the actual CAM expense recovery results to Accounts Receivable
(FI-AR) for tenant invoicing.
Prerequisites
You have made the relevant settings in Customizing for Flexible Real Estate Management (RE-FX) under CAM Expense Recovery .
Process
The main data flows for CAM processing include the following:
1. Service charges invoices are entered, for example, by an Accounts Payable clerk or a third party, using standard Accounts Payable (FI-AP) invoicing
transactions, for example, FB60, or standard Materials Management Logistic Invoice Verification (MM-LIV) purchase order invoicing transaction MIRO.
2. You maintain master data, including CAM-relevant master data, using the RE Navigator (transaction RE80) in Flexible Real Estate Management (RE-FX), if
you indicate that the business entity the service charges are posted to is CAM relevant.
3. CAM-relevant service charges are distributed via a CAM expense recovery run (transaction REYCSE).
4. CAM expense recovery simulates the calculation results or posts actual results to Accounts Receivable (FI-AR) so that you can issue a tenant service
invoice for CAM expenses.
5. Supporting functions for CAM processing:
Master data enhancement
This includes both the CAM relevancy indicator and the CAM settlement period at the business entity level, as well as the CAM parameters that you
define in CAM Terms and CAM Exp Pool (CAM Expense Pool) for fixed real estate objects.
CAM expense recovery lifecycle management
CAM expense recovery by real estate contract allows you to settle an individual real estate contract. To correctly distribute CAM expenses, you
can post the distribution for a selected real estate contract only to Accounts Receivable (FI-AR).
CAM expense recovery for early move out and termination allows for CAM expense recovery at any time. Estimates of expenses that have not
been posted can be manually entered during expense recovery so that the early move-out and termination can be finally settled in time.
Different calculation methods stand alone or in combination to determine the cost distribution.
Examples of the calculation methods are markup, capping, and major tenant contribution.
Customizing for Flexible Real Estate Management (RE-FX) (transaction RECACUST) under CAM Expense Recovery to support the CAM expense
recovery process:
Expense type with mapping of cost elements (cost-relevant items for relevant G/L accounts)
Posting strategy
Account determination
1.1.1 CAM Expense Recovery Lifecycle
The SAP real estate contract represents the lease agreement between the landlord and the tenant. It is the lease agreement negotiated by these parties that
defines how common area maintenance (CAM) expenses are recovered.
The financial terms of the lease agreement are entered on the real estate contract as conditions, for example, basic rent, property taxes, and CAM expenses.
Each condition is paid periodically as defined by the lease agreement, for example, rent to be paid monthly and CAM prepayments to be paid quarterly. These
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payments are generated by the Periodic Processing: Contracts program (transaction code RERAPP).
The CAM expense recovery lifecycle encompasses creating the real estate contract, updating it for renegotiation, termination, or expiry, and using its master data
and CAM parameters in CAM expense recovery runs. You can print out the detailed CAM calculation results for an individual real estate contract as a separate
tenant correspondence.
In SAP Common Area Maintenance Expense Recovery, you have the flexibility to run a CAM expense recovery for one or multiple real estate contracts thus
allowing you to recover expenses for an individual real estate contract. To correctly distribute CAM expenses, you can post the distribution for only a selected real
estate contract to Financial Accounting.
You can recover CAM expenses up to a defined time period, or you can recover CAM expenses at a point in time, for example, for a real estate contract
termination. CAM expense recovery for early move-out and termination allows you to run CAM expense recovery at any time.
This flexibility of settling at a one-off real estate contract level rather than on mass (for example, an entire property), as well as, the flexibility of frequency of
invoicing are key elements that differentiate SAP Common Area Maintenance Expense Recovery from Service Charge Settlement (SCS) in Flexible Real Estate
Management (RE-FX).
Prerequisites
You make the following settings for correspondence in Customizing for Flexible Real Estate Management (RE-FX) under CAM Expense Recovery :
Basic Settings CAM Recovery Parameters
Set the Print Separately indicator if you want your correspondence not to be printed automatically as part of expense recovery and instead want to print it
separately.
Correspondence Basic Settings
Make basic settings, for example, language and output media type.
Correspondence Correspondence Activities and Applications :
Define Correspondence Activities
Define Correspondence Applications and Assign Correspondence Activities
Correspondence Forms Define Forms
Define the forms you need and assign whether each is a PDF-based form or a Smart Form.
Process
1. Creating the real estate contract
In the RE Navigator (transaction code RE80), the first step in the process is for you to validate whether or not the required CAM master data exists and
whether or not CAM parameters have been assigned to real estate objects, for example, the business entity and building. Once you validate the existing
master data or create new master data, you can create the real estate contract. You can decide to inherit master data values from real estate objects as well
as to create new real estate contract-specific master data.
During the real estate contract creation process, the system extracts the space being rented by the tenant from the available space held by the landlord
and assigns it to the real estate contract. Once you have assigned CAM parameters to the real estate contract, you release the real estate contract into the
CAM expense recovery run allowing the generation of financial postings.
In SAP Common Area Maintenance Expense Recovery, you may also need to enter relevant information about major tenants’ contributions to CAM
expenses at the real estate contract level (see Major Tenant Contribution).
2. Changes to the real estate contract terms
Over the life of a lease agreement, the terms of the lease may be renegotiated between landlord and tenant. These changes may include the addition or
reduction in leased space, extension or reduction of the lease term, or adjustments in condition amounts.
Changes to CAM parameters on master data screens are time delimited. Expense recovery is based on the CAM parameters defined on the master data
screens of a real estate contract for the defined time period at the time of settlement.
3. Real estate contract termination
A tenant may terminate a real estate contract early and the landlord must approve any early real estate contract termination in the SAP system. The
identification and activation of an early termination is recorded on the real estate contract as a notice. The activated notice updates the real estate contract
end date based on the negotiated early move-out date and prevents the real estate contract from being involved in the generation of any financial postings
after the updated real estate contract end date.
During a CAM expense recovery run, you can manually enter estimates of CAM expenses that have not been posted so that early move-out or termination
can be finally settled in time. You have the flexibility to perform CAM expense recovery on an individual real estate contract agreement during the middle of
a settlement period as well as after the end date of the real estate contract. You should perform CAM expense recovery for the remaining tenants as usual.
4. Real estate contract expiry
As a real estate contract moves through its life cycle, it eventually expires. The system automatically closes the real estate contract when the current date
exceeds the real estate contract end date, thus preventing the real estate contract from being involved in the generation of any additional financial postings.
Closing of the real estate contract may occur during the middle of a settlement period. When this occurs, you have the flexibility to perform CAM expense
recovery as well as the generation of invoices for distribution to the tenant after the real estate contract end date for an individual real estate contract.
5. CAM expense posting
During a specific settlement period, CAM expenses are posted to the CAM-relevant real estate objects as cost collectors. Default CAM parameters, such
as expense type, participation group, and service period are proposed at the end of Accounts Payable (FI-AP) invoicing posting with the capability of user
re-clarification.
6. CAM expense recovery steps
In CAM Expense Recovery (transaction REYCSE), in the following CAM expense recovery steps, CAM parameters are imported from real estate
contracts for different CAM expense recovery calculations:
Determination of Settlement Hierarchy
CAM calculation parameters from rental objects and real estate contracts are retrieved via this step when you specify the real estate contract or
contracts to be settled.
Determination of Expenses
Actual CAM expenses relevant for the real estate contract or contracts involved in CAM expense recovery are determined in this step.
Determination of Reference Factors
Pro rata share of CAM expenses is determined by the measurements assigned to each relevant rental object assigned to the real estate contract.
Expense Distribution
With the information from these steps, plus the participation groups relevant for the real estate contracts involved, various calculation methods
specified at the real estate contract level are used in this step to distribute the shares of CAM expenses to real estate contract or contracts for the
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settlement period.
7. CAM expense recovery run
In CAM Expense Recovery (transaction REYCSE), on the Selection tab, you can specify one or more real estate contracts for a CAM expense recovery
run.
On this tab, you can also define a Settle To date to specify the date up to which CAM expense recovery should be performed. You can also indicate here
whether or not the CAM expense recovery run is a Final Recovery Run .
Result
You can present the CAM expense recovery results per real estate contract to a tenant by creating CAM correspondence (transaction REYPAYC590). The
correspondence states the results of the CAM calculations and the amount which is to be paid, either as a credit or a debit.
1.1.2 CAM Master Data
You edit the master data for SAP Common Area Maintenance Expense Recovery in the RE Navigator in standard Flexible Real Estate Management (RE-FX). To
settle common area maintenance (CAM) expenses in a CAM expense recovery run, you create the following CAM-specific master data:
For business entities:
CAM relevancy indicator
CAM settlement period length and the recovery start date
For all real estate objects and real estate contracts:
CAM terms
CAM expense pool
For real estate contracts:
Major tenant contribution (MTC) indicator (see Major Tenant Contribution)
Major tenant deduction
Applicable major tenant indicator
Reduce denominator indicator
CAM expense pool and CAM term for MTC
If you indicate that the tenant is a major tenant, then you can maintain major tenant contribution (MTC) as a CAM term for the relevant expense pools.
Structure
Master Data Objects

The RE Navigator (transaction code RE80) can serve as a single entrance for processing functions for all activities relevant to Flexible Real Estate Management
(RE-FX) including SAP Common Area Maintenance Expense Recovery. CAM master data is assigned to the following hierarchical real estate objects in the RE
Navigator:
Business entity
Building
Land
Rental object
Real estate contract
For the object business entity, you enter the CAM provisions that can be inherited by the subordinate objects in the hierarchy. The real estate objects buildings,
land, rental objects, and real estate contracts can inherit the values from the superior object business entity.
CAM master data can also be set up in such a way that the real estate object contains only CAM data relevant to that object. For example, a business entity-
related expense pool and terms can be set up at the business entity level, while a building-related expense pool and terms are set up at the building level. The
real estate contract can then inherit part or all of the relevant CAM master data from objects on the real estate hierarchy, depending on how the real estate contract
is negotiated with a tenant. After the CAM master data has been inherited into the real estate contract, you can further change it to fit your contract-specific needs
without affecting the master data. Only the CAM values in the real estate contract are used for CAM expense recovery.
You assign the real estate objects to a participation group for participation in CAM expense recovery, and the participation group is required for the expense pool
at the real estate contract level to determine the scope of distribution.
Note
You can view the participation group in a real estate contract on the Object sub-tab of the CAM Exp Pool (CAM Expense Pool) tab. The system has a
naming convention for the creation of participation groups, for example, the participation group for a business entity 4631 is BE00004631.
CAM-Specific Master Data Values

On the General Data tab of the business entity object, there is a CAM Relevant indicator that you set if there is master data that is relevant for SAP Common
Area Maintenance Expense Recovery. If you set this indicator, the following CAM-relevant tabs and CAM fields are available to you for entering the appropriate
expense recovery parameters or values:
CAM Terms
You specify the calculation methods, markup, and capping parameters for use in CAM expense recovery.
CAM Exp Pool
You create expense pools in the object hierarchy and assign expense types to each expense pool.
The Period Length and CAM Recovery Start Date fields appear on the Reference Factors tab.
The CAM settlement period is determined with both the settlement period length and the recovery start date.
The Major Tenant Contribution indicator appears on the General Data tab of the real estate contract. The Major Tenant Deduction tab appears for real
estate contracts. The Applicable MT and Reduce Denominator indicators are on this tab. When you maintain the CAM Exp Pool tab for a real estate
contract, if the tenant is marked as a major tenant, then you can maintain major tenant contribution (MTC) as a CAM term.
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You use these fields and indicators to specify how major and minor tenants' shares of CAM expenses are dealt with in CAM expense recovery.
Note
If you do not set the CAM Relevant indicator, then these additional CAM tabs, indicators, and fields do not appear for real estate objects.
You can use the CAM-specific values you enter here when you subsequently create buildings, rental objects, and real estate contracts in that order. At each
stage, when you create a master data object, you can review and edit CAM-relevant values in light of your actual rental contract negotiation.
Because CAM master data has a hierarchical flow from business entity to building/land to rental object through to real estate contract, the most important master
data for CAM expense recovery are the CAM terms and the CAM expense pool that you set up at the real estate contract level.
CAM Master Data Creation Process
You assign CAM terms, CAM expense pools, and expense types to the business entity. This assignment includes all the information provided for the CAM
expense types and can be inherited by the subordinate object building. You can make additional changes to the building object data. Any changes you make to
the building object data can then be updated to the rental object. You can review and edit the data for the rental object.
When you create the real estate contract, you can manually inherit CAM settings based on the rental object you assigned to that real estate contract. The system
allows you to enter and adjust CAM calculation-related settings at the real estate contract level where required.
Integration
You can access the RE Navigator functions on the SAP Easy Access screen by choosing SAP menu Accounting Flexible Real Estate Management
Master Data RE80 RE Navigator .
SAP Common Area Maintenance Expense Recovery uses master data that is different from the standard Service Charge Settlement (SCS) solution in Flexible
Real Estate Management (RE-FX). Instead of creating SCS settlement units to control CAM expenses, CAM master data, in terms of CAM terms and expense
pools, is assigned to the business entity, building/land, rental object, and real estate contract.
For each business entity, you assign either SCS or SAP Common Area Maintenance Expense Recovery. A business entity uses one of the two recovery
methodologies. If you do not set the CAM Relevant indicator in the business entity, then service charges are settled via SCS. If you set this indicator, then you
can maintain CAM-relevant master data for SAP Common Area Maintenance Expense Recovery.
You can set the CAM Relevant indicator at the company code level so that all business entities for the company code become CAM relevant by default. You do
this in Customizing for Flexible Real Estate Management (RE-FX) under CAM Expense Recovery Master Data Company Codes for CAM .
Note
You can still manually indicate that a business entity within a CAM-relevant company code is not CAM relevant.
More Information
For more information about master data in Flexible Real Estate Management, see the following in the SAP Library for SAP ERP under SAP ERP Central
Component Flexible Real Estate Management (RE-FX) :
RE Navigator
Master Data
Commercial Real Estate Management Contract
Commercial Real Estate Management Service Charge Settlement Master Data of Service Charge Settlement
1.1.2.1 CAM Terms
Common area maintenance (CAM) terms specify the calculation methods, capping parameters, and markup parameters used in SAP Common Area
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Maintenance Expense Recovery.
You can define CAM terms for the real estate object business entity, and these definitions can be inherited by the real estate objects building and land. The CAM
terms assigned to the building and land can be inherited by the rental object, and the rental object CAM terms can be inherited by the real estate contract. You
are able to assign CAM-specific terms for each applicable real estate object. The CAM terms you define in real estate contracts are used in the calculations of
CAM expense recovery runs to determine how CAM expenses are distributed to individual tenants.
Structure
To assign parameters to a real estate object, for example, a business entity, you have the following sub-tabs for each CAM term:
CAM Provisions
On the CAM Provision sub-tab, you enter the following measurement types that expense recovery is based on:
Base year method (see Base Year Method)
Gross-up method (see Gross-Up Method)
Base year with gross-up method (see Base Year with Gross-Up Method)
Denominator method (see Denominator Method)
You can add multiple CAM provisions to an object and each CAM provision is date delimited. When you select a CAM provision, the details of the provision
are displayed in the section of the screen below. The Memo sub-tab indicates if you have entered a memo there.
CAM capping (see Capping)
The CAM Capping sub-tab controls capping of expenses for a real estate object or contract and not for an individual expense. For each term, you can
specify CAP Before (applied to the gross expenses) and CAP After (applied to the net expenses).
CAM markup (see Markup)
A markup is a margin, either a percentage or an amount, added to the actual CAM expenses. For each term, you can specify Markup Before and
Markup After .
Major tenant contribution (see Major Tenant Contribution)
When you maintain a real estate contract, if you indicate that the tenant is a major tenant, then you can maintain major tenant contribution (MTC) as a CAM
term. MTC is a lump sum contribution from a major tenant to cover their portion of CAM expenses. Because of paying this agreed contribution, the major
tenant does not then participate in the CAM distribution. The MTC has to be taken into account in the calculation of the share of minor tenants' CAM
expenses.
Integration
On the CAM Exp Pool (CAM Expense Pool) tab, existing details of the CAM terms CAM Provisions and CAM Markup are displayed for each expense pool.
You also have the option to create these CAM terms there.
1.1.2.2 CAM Expense Pool
An expense pool consists of expenses that are reconciled in a similar way using the same common area maintenance (CAM) parameters. Expense types and
cost elements, which define the actual individual expenses incurred from service providers' invoices, are assigned to expense pools.
The expense pool specifies the default expenses that are relevant for real estate objects, for example, business entities and buildings. At the real estate contract
level, this essentially determines the CAM expenses that are relevant for distribution to tenants.
Example
Expense pool controllable expenses
Controllable expenses are expenses that result from the running maintenance of a building. An example of a controllable expenses type is the expense
of cleaning.
Expense pool non-controllable expenses
Non-controllable expenses are expenses that arise unexpectedly due to breakdowns and failures of the building. An example of a non-controllable
expenses type is the expense of flooding.
On the CAM Exp Pool (CAM Expense Pool) tab, for example, for a business entity, you can create expense pools and assign expense types to them. The
expense pools and expense types for real estate objects, such as business entities, are used exclusively for reporting and are not used for financial postings.
At the real estate contract level, however, the expense types and cost elements define the relevancy of expenses and the expense pool controls the calculations
as well as the financial postings. You can also create a CAM term for major tenant contribution at the expense pool level for a real estate contract.
Note
The expense types can represent seasonal expenses, such as snow removal. The seasonality of an invoice determines the default service period of the
seasonal expenses. Only real estate contracts that are active during the seasonal service period are responsible for sharing the expenses. In Customizing for
Flexible Real Estate Management (RE-FX) under CAM Expense Recovery , you can set up seasonality codes and they default to expense types and cost
elements.
Cost elements are assigned to each expense type. A primary cost element corresponds to a cost-relevant item in the chart of accounts (General Ledger (G/L)
account). During the financial posting process, these cost elements receive the financial postings that are used in the expense recovery process.
Structure
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Example
Expense Pool Expense Type Cost Element
Controllable Expenses Lawn Maintenance 4012011 Mowing

4012012 Trimming
Utilities 4012021 Water

4012022 Electricity
Cleaning 4012031 Materials

4012032 Labour
The expense pool is controllable expenses.

The controllable expense types are lawn maintenance, utilities, and cleaning.
The cost elements for, for example, expense type lawn maintenance, are 4012011 mowing and 4012012 trimming.
You assign values, for example, for the following, to each expense type:
An expense can be either seasonal or non-seasonal. A seasonal expense usually effects a predefined service period (for example, season of snow
removal) or may occur unexpectedly impacting an individual period of service.
Pre-markup and post-markup percent and amounts (see Markup)
If both the Markup Percentage and Markup Amount fields have values, the lesser calculated amount applies.
The administrative fee functions in the same ways as the markup amount; however, you can maintain it separately for reporting purposes.
Pre- and post-capping rates and amounts (see Capping)
Integration
For each CAM expense pool, existing details of the CAM terms such as provision, markup, and capping are displayed. You can also create these CAM terms
from here. You can create a CAM term for major tenant contribution in the CAM expense pool of a real estate contract if appropriate.
CAM-specific expense pool and terms for a real estate object, for example, a business entity, can be inherited by other real estate objects. You can also edit
these values at every stage, for example, for a real estate contract.
Customizing
You make the following settings for CAM expense pool master data in Customizing for Flexible Real Estate Management (RE-FX) under CAM Expense
Recovery :
You define expense types.
Master Data Expense Type
You map cost elements to expense types and define seasonality relevance.
Master Data Cost Element to Expense Type
You define seasonality reasons.
Master Data CAM Seasonality Reasons
You map cost elements to meters.
Master Data Mapping of Cost Elements and Meter Characteristics
You assign cost elements to G/L accounts.
Accounting Assignment of Accounts of CAM Recovery Postings
1.1.2.3 CAM Parameter Maintenance and Assignment
You maintain common area maintenance (CAM) parameters or values and assign them to real estate objects, such as business entities and real estate contracts.
The CAM parameters you assign to real estate contracts are subsequently used in the recovery of CAM expenses.
Prerequisites
You define the following in Customizing for Fixed Real Estate Management (RE-FX) under CAM Expense Recovery :
Expense types
Master Data Expense Type
The mapping of cost elements to expense types and seasonality relevance
Seasonality reasons
Master Data CAM Seasonality Reasons
The mapping of cost elements to meters
Master Data Mapping of Cost Element and Meter Characteristic
The assignment of cost elements to G/L accounts
Process
1. In the RE Navigator (transaction code RE80), you select a real estate object for editing by entering a Company Code and, for example, a Business Entity
number to select a business entity.
To select a real estate contract for editing, you enter a Company Code and a Contract Number .
2. On the General Data tab of Business Entity , you ensure that the CAM Terms and CAM Expense Pool tabs are available to you by setting the CAM
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Relevant indicator.
3. On the CAM Terms tab of all real estate objects and contracts, you enter values and memos for the following CAM term categories:
CAM Provisions
You select one of the following provision parameters:
Base Year
You can enter values, for example, base year value and amount and current year value and amount.
Base Year with Gross-up
You can enter base year values plus a value for a gross-up method, for example, manual gross-up amount.
Gross-up Without Base Year
In this case, you do not enter values for a base year. You can enter a value for a gross-up method, for example, manual gross-up amount or
rate.
Denominator
You can enter a value for a denominator, for example:
Fixed Denominator
Fixed Share
Occupied Area (in feet or meters)
Open and Occupied Areas (in feet or meters)
Capping
You can enter values for CAP Before and CAP After , for example, for Rate, Amount, and Increase .
Markup
You can enter values for Markup Before and Markup After , for example, for Percentage, Amount, and Administration Fee .
4. On the CAM Exp Pool (CAM Expense Pool) tab, you can assign one or more Expense Pools . You can assign any number of Expense Types to each
Expense Pool by selecting the Expense Types from the predefined list. Once you have selected the Expense Type , the Cost Elements appear for
that Expense Type assigned to the relevant Expense Pool .
Example
Expense Pool Expense Type Cost Element
Utilities Electricity 417040
Utilities Water 417041
You can assign the numbers of the CAM terms to the expense pools.
When you maintain the CAM Exp Pool tab for a real estate contract, if the tenant is marked as a major tenant, then you can maintain major tenant
contribution as a CAM term.
Result
The CAM parameter values you assign to the real estate object business entity can be inherited by other real estate objects such as buildings, rental objects,
and real estate contracts. You can edit the CAM parameters for each real estate object at every stage.
When you run CAM expense recovery, the system draws on the CAM parameters you have assigned to real estate contracts in the RE Navigator to calculate and
distribute CAM expenses.
More Information
For more information, see the following:
CAM Master Data
CAM Expense Calculations
For more information about master data in Flexible Real Estate Management, see SAP Library for SAP ERP under SAP ERP Central Component Flexible Real
Estate Management (RE-FX) .
1.1.2.3.1 Maintaining CAM Parameters and Assigning Them to a

Real Estate Object and a Real Estate Contract
You want to maintain parameters for common area maintenance (CAM) and assign them to a real estate object and a real estate contract that already exist in the
RE Navigator in Flexible Real Estate Management (RE-FX).
Prerequisites
Make all the relevant settings in Customizing for Flexible Real Estate Management (RE-FX) under CAM Expense Recovery Basic Settings and
Master Data .
Validate that the master data on non-CAM-specific tabs is present and correct. For example, on the Measurement tab of a rental unit, enter the valid
measurements of areas for use in the calculation of occupancy and for use in denominators.
In order to maintain parameters for CAM terms and CAM expense pools for real estate objects, you must first set the CAM Relevant indicator for the business
entity. When you assign a CAM-relevant real estate object to a real estate contract, it becomes CAM relevant too.
Procedure
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Setting the CAM Relevant Indicator for a Business Entity
1. Choose SAP Easy Access SAP menu Accounting Flexible Real Estate Management Master Data RE Navigator (transaction RE 80).
2. In the RE Navigator, under Object Name , choose the folder Business Entities and select a business entity for editing.
Alternatively, choose the Edit Other Object icon, choose a tab, and search for a business entity by entering the Company Code .
3. On the General Data tab of the business entity, set the CAM Relevant indicator.
Setting this indicator means that the CAM Terms and CAM Exp Pool (CAM Expense Pool) tabs are now displayed for all real estate objects and
contracts. On the Reference Factors tab, the Period Length and CAM Recovery Start Date fields are now also displayed.
Assigning CAM Parameters to a Real Estate Object

1. In the RE Navigator, under Object Name , choose a folder and select a real estate object for editing.
Alternatively, choose the Edit Other Object icon, choose a tab and search for a real estate object by entering the Company Code .
2. On the Reference Factors tab, enter a Period Length , for example, 12 months, and a CAM Recovery Start Date
3. On the CAM Terms tab, choose Create Term and create one or more of any of the following CAM terms:
CAM Provisions , for example, base year method and denominator method
CAM Capping
CAM Markup
Note
For more information on creating CAM terms, see the Maintaining and Assigning CAM Terms procedure.
4. On the CAM Exp Pool (CAM Expense Pool) tab, choose Create CAM Exp Pool , select Expense Pool , and create an expense pool. You can create
multiple expense pools.
Next, for an individual expense pool, select an Expense Type, and select to create an expense type from those available for the company code. The cost
elements and other details for the expense type you selected are then displayed.
Continue to create the relevant expense pools and their expense types in the hierarchical order.
On the lower half of the tab, the CAM terms you created for provisions and markup in earlier steps are available for assignment to the expense pool. Only
the values you created in earlier steps are available to you. Assign the number of the CAM terms to the expense pool. Choose Detail Term to see the
details of the CAM terms you created earlier or choose Create Term to create new ones.
5. Check for errors and choose ( Save ).
Assigning CAM Parameters to a Real Estate Contract

1. In the RE Navigator (transaction RE 80), under Object Name , choose the Real Estate Contracts folder and select a real estate contract for editing.
Alternatively, choose the Edit Other Object icon, choose the Real Estate Contract tab, and search for a real estate contract by entering the Company
Code .
2. On the General Data tab, if relevant, set the Major Tenant Contribution indicator to make the major tenant contribution (MTC) applicable for the contract
and to indicate that the contract is an MTC contract.
Select also how the credit is issued from one of the three following options:
At all settlement
At final settlement
No credit
3. On the Object tab, assign a CAM-relevant real estate object, for example, a rental unit to the real estate contract. The real estate contract is now CAM
relevant too, and the CAM Terms and CAM Exp Pool tabs appear.
4. On the CAM Terms and CAM Exp Pool tabs, you can create master data or you can have the real estate contract inherit part or all of the relevant CAM
master data from objects on the real estate hierarchy, depending on how the real estate contract is negotiated with your tenant. To do the latter, for example,
in CAM Exp Pool , select the Inherit Expense Pools from Parent icon. You can further change the CAM master data to fit your contract-specific needs,
without affecting the master data for other real estate objects.
On the lower half of the tab, assign the numbers of the CAM terms and a Participation Group to the expense pool. Choose Detail Term to see the details
of the CAM terms and participation groups you created or choose Create Term to create new ones.
Note
An expense type cannot be repeated in multiple expense pools of the same participation group.
Note
For more procedural information on steps 3 and 4, see the section above on Assigning CAM Parameters to a Real Estate Object and see the
procedure Maintaining and Assigning CAM Terms.
5. On the CAM Exp Pool tab, you can create CAM expense pools and CAM terms for major tenant contribution by selecting MTC Distribution , if you have
indicated that the tenant is a major tenant. A major tenant can also participate in other expense pools as a minor tenant if you select CAM Distribution .
6. On the CAM-specific Major Tenant Deduction tab, set Applicable MT (Applicable Major Tenant), if you want to indicate that the major tenant contribution
specified in the real estate contract of the major tenant is relevant to the current real estate contract. Create master data for the major tenant, for example,
add the address and contract number.
Set Reduce Denominator to indicate that the major tenant-occupied area should be deducted from the total area or occupied area in the denominator
calculation of CAM distribution. Set this indicator only when you set the Applicable MT (Applicable Major Tenant) indicator for the same major tenant's real
estate contract.
7. Check for errors and choose ( Save ).
1.1.2.3.1.1 Maintaining and Assigning CAM Terms
In the RE Navigator (transaction RE80), you maintain common area maintenance (CAM) terms for CAM relevant real estate objects or contracts via the sub-tabs
on the CAM Terms tab. Once you create the terms, you assign them directly to real estate contracts, expense pools, and expense types.
You can only create CAM terms for major tenant contribution (MTC) at the real estate contract level on the CAM Exp Pool (CAM Expense Pool) tab.
The following procedure explains in detail how you maintain CAM terms and assign them.
Prerequisites
To create a CAM term for MTC, indicate that the real estate contract is MTC relevant.
Procedure
CAM Term: CAM Provisions

1. On the CAM Provisions sub-tab of the CAM Terms tab, enter a description for the provision and make a CAM Provision Parameter Selection . In this
procedure, the Base Year with Gross-Up is used as an example because it encompasses inputs for base year, gross-up, and denominator methods.
2. Enter a Base Year and a Current Year .
3. Select a Method , for example, 1st year Exp (First year Expenses).
4. Specify the Base Year Amount or the Base Year Rate to be included in the base rent for the base year. You have the same options for the current year.
Specify the amount or rate for the base year stop, which is a cap on the amount a landlord is allowed to charge a tenant in the years following a base year.
5. Specify the Base Year Increase Amount or the Base Year Increase Rate; also specify the Base Year Stop Increase Amount or the Base Year Stop
Increase Rate.
The current base year amount and the current base year stop amount can be automatically increased by an amount, a rate, or a percentage for the next
settlement period, following the completion of the final expense recovery in the current settlement period.
6. Select a Gross-Up Method from the following:
Manual Gross-Up Amount and enter an Amount
Calculated Gross-Up Amount and enter a percentage Occupancy Rate
7. Select a Denominator , for example, Occupied Area - M2 ( Occupied Area in Meters Squared ).
8. On the lower half of the CAM Exp Pool (CAM Expense Pool) tab for real estate objects and contracts, assign the numbers of CAM provisions to individual
expense pools.
CAM Term: CAM Capping

1. On the CAM Capping sub-tab of the CAM Terms tab, enter a description for the capping term.
2. Specify the capping Rate or Amount for before and after the distribution of CAM expenses.
3. Specify the Increase as a percentage increase in the capping amount or capping rate that is used before and after the distribution of CAM expenses.
You can also specify that capping increases are tied to the Consumer Price Index .
4. Set the Lesser of Amount/Rate indicator if you want to add values for both the capping amount and the capping rate but you also want to use whichever of
the two values is lower for capping before and after the distribution of CAM expenses.
5. You can indicate that capping is Cumulative (capping is calculated each year on the cap amount of last year) or noncumulative (capping is calculated on
the actual amount of the previous year).
6. On the lower half of the CAM Exp Pool (CAM Expense Pool) tab for real estate contracts, assign the numbers of CAM capping terms to individual
expense pools.
CAM Term: CAM Markup

1. On the CAM Markup sub-tab of the CAM Terms tab, enter a description for the markup term.
2. Specify the markup value as an Amount , a Percentage rate, or an Administrative Fee that you want to be applied before and after the distribution of
CAM expenses.
3. On the lower half of the CAM Exp Pool (CAM Expense Pool) tab for real estate objects and contracts, assign the numbers of CAM markup terms to
individual expense pools.
CAM Term: Major Tenant Contribution

1. In a MTC relevant real estate contract, choose the CAM Exp Pool (CAM Expense Pool) tab.
2. Select an expense pool and set the MTC Distribution indicator.
3. Choose Detail Term to display an existing CAM term or choose Create Term to create a new CAM term for MTC. In the latter case, the Create CAM
Major Tenant Contribution screen is displayed.
4. On the CAM Major Tenant Contribution tab, enter a description for the CAM term for MTC.
5. Enable or disable time dependencies as appropriate and define a validity period if relevant.
6. Specify if MTC distribution is to be by Fixed Rate, Rate, or Percentage and make valid entries as appropriate.
7. Indicate whether MTC distribution is to be done by value or percentage.
More Information
For more information, see CAM Expense Calculations.
1.1.2.4 CAM Expense Calculation Methods
On the CAM Terms tab for a real estate object, for example, a business entity, you specify calculation methods for use in the recovery of common area
maintenance (CAM) expenses.
Integration
The calculation methods you specify in the RE Navigator (transaction code RE80) are used, along with other CAM-specific master data, for example, from the
CAM Exp Pool (CAM Expense Pool) tab and the Reference Factor tab, in CAM Expense Recovery (transaction code REYCSE).
Prerequisites
The CAM Terms tab is only available to you if you have indicated that the master data for the real estate object is CAM relevant. You set this indicator on the
General Data tab of the business entity.
You set the denominator method in Customizing for Flexible Real Estate Management (RE-FX) under CAM Expense Recovery Basic Settings
Denominator Method in CAM .
Features
The following calculation methods are available in CAM terms:
Provisions
You can add multiple CAM provisions to a real estate object and each CAM provision is date delimited. When you select a CAM provision, the details of the
provision are displayed in the lower section of the screen. The Memo sub-tab indicates if you have entered a memo there.
You can select from the following CAM provision parameters:
Base year method
You specify the base year for which the CAM expenses are included in the base rent. In subsequent years, the tenant usually has to pay for the
increase of the actual CAM expenses over the base year amount.
Gross-up
You specify that CAM expenses are grossed-up to a certain occupancy rate, thus, providing a fairer expense recovery distribution. You can apply
the gross-up method on its own or in combination with the base year method.
Base year with gross-up
Denominator
You can select a denominator method such as calculating using the area occupied in feet or meters squared.
Capping
You can set the maximum amount or percentage increase of a CAM expense to be charged to a tenant. You can cap the gross or net CAM expenses, that
is, you can cap CAM expenses before or after distribution.
Markup
You can set a markup, for example, the addition of a management fee, on top of gross or net CAM expenses.
Major tenant contribution
You can specify the amount a major tenant contributes to the CAM expenses and that it must be taken into consideration in calculating the share of CAM
expenses for minor tenants.
1.1.2.4.1 Base Year Method
A base year is the starting year for common area maintenance (CAM) calculations using the base year method. It provides a benchmark year against which
future years are compared and calculated.
In the base year method, the amount calculated as the base year amount for CAM expenses is already included in the base rent and no additional CAM
expenses are usually incurred in that year.
CAM expenses incurred in the year are compared with the current base year amount and the difference determines the CAM expenses a tenant is to share. In
this method, only the pro-rata share of CAM operating expenses that exceed those CAM expenses incurred by the landlord during a base year are passed
through to the tenant.
Integration
In SAP Common Area Maintenance Expense Recovery, you can apply the base year method on its own or in combination with the gross-up method. In the latter
case, you gross-up both the base year amount and the actual CAM expenses to the defined occupancy rate.
Features
Base Year Amount

The base year amount can refer to either the total CAM expenses incurred for the entire business entity or building or to the CAM expenses apportioned to the
contract.
The base year amount can be categorized as one of the following for reporting or reference purposes:
The actual CAM expenses incurred in the first contract year
The actual CAM expenses incurred during the previous year
A budgeted fixed amount specified in the contract
The assumed CAM expenses for the first contact year
Base Year Method Variations

The base year with gross-up method is a variation of the basic base year method that allows for large vacancies within a building and thus gives rise to a fairer
recovery of CAM expenses.
There are also variations of the basic base year method that accommodate changes in the cost of services. One such variation, which is rarely used, is the base
year amount increase that allows you to increase the base year amount to absorb additional expenses into the rent itself.
Another such variation is the base stop, which is a cap on the amount the landlord is allowed to charge the tenant. In the years following a base year, the tenant
usually has to pay the amount by which the CAM expenses exceeded the base year; this can also be combined with one or multiple base stops. The amount to
be paid can be capped or base stopped every year by one of the following:
A percentage based on the base year
A percentage based on the previous year
A fixed amount
Example
The base year stop is a percentage based on the base year.
If the base year amount is USD 1000, with a base stop of 3%, then the cap amounts for years 2 to 4 are as follows:
Year 2: USD 1,030
Year 3: USD 1,060
Year 4: USD 1,090
Activities
On the CAM Provisions sub-tab of the CAM Terms tab, select Base Year as your CAM provision parameter. You define the Base Year and Current Year
and select which base year Method , for example, Fixed Amount , is to be used in CAM calculations. You select, for example, whether to use percentages or
amounts for the Base , Base Year Increase , and Base Year Stop Increase .
If you select the Base Year with Gross-Up method as your CAM provision parameter, you also need to select a calculated or manual gross-up amount method.
Example
Base Year Method Without Variations
Year Total Area / m2 Tenant's Area / m2 Total Cleaning Total Water Expenses Tenant's Share of Tenant's Share of
Expenses / USD / USD Cleaning Expenses / Water Expenses /
USD USD
Base Year 10,000 4,000 500 500 0 0
Second Year 10,000 4,000 500 800 0 120
In the first year, the base year amount for cleaning and water expenses totals USD 1000.
In the second year, the actual expenses total USD 1300 and the tenant needs to pay the pro-rata share of the difference of USD 300. The CAM expenses for the
tenant are USD 120, calculated as 300* 4000/10000 based on denominator distribution with total area and incurred for water expenses. The tenant owes nothing
for cleaning expenses as they have remained the same.
Base Year Method with Base Stop of 3%
Year Total Area / m2 Tenant's Area / m2 Total Cleaning Total Water Expenses Tenant's share of Tenant's share of
Expenses / USD / USD Cleaning Expenses / Water Expenses /
USD USD
Base Year 10,000 4,000 500 500 0 0
Second Year 10,000 4,000 500 800 0 6
In the first year, the base year amount for cleaning and water expenses totals USD 1000. The base stop at 3% on USD 500 is USD 515.
In the second year, the actual expenses total USD 1300. The tenant owes nothing for cleaning as the expenses have remained the same.
For water charges in the second year, the tenant needs to pay the pro-rata share of the difference of USD 15 between the base year amount of USD 500 and the
base stop of USD 515. The CAM expenses for the tenant are USD 6, which is calculated as 15* 4000/10000.
1.1.2.4.2 Gross-Up Method
High levels of vacancy in a leased building in a base year can cause a tenant to be over charged, so there is a gross-up clause in some leases. This means that
the actual expense of operating the building is grossed up to an amount that the landlord believes the operating expenses would be if the building were close to
full occupancy, for example, a rate of 95% occupancy is agreed upon in the lease. If this is the case, then all common area maintenance (CAM) expenses are
grossed-up to a minimum occupancy rate and the tenant only pays a share for any year when the occupancy is below the agreed minimum occupancy level. If
the occupancy is above the defined minimum occupancy level, the actual occupancy is used for the calculation.
Integration
In SAP Common Area Maintenance Expense Recovery, you can apply the gross-up method on its own or in combination with the base year method. In the latter
case, you gross-up both the base year amount and the actual expenses to the defined occupancy rate.
Activities
In CAM Provision Parameter Selection on the CAM Provisions sub-tab of the CAM Terms tab, you select Gross-Up without Base Year as your CAM
provision parameter.
Select a Gross-Up Method from the following:
Calculated Gross-Up Amount
Enter a percentage Occupancy Rate .
Manual Gross-Up Amount
Enter an Amount.
Example
Gross-Up Method
The total area of the building is 200,000 square meters, of which the tenant occupies 20,000 square meters or 10%. The gross-up rate is 95%.
Year Actual CAM Expenses / USD Occupancy Rate Tenant's CAM Expenses / USD Grossed-up Amount / USD
1 10,000 10% 9,500 95,000
2 55,000 50% 10,450 104,500
In the first year, using the gross-up rate of 95% and an occupancy rate of 10%, the grossed-up actual expenses are USD 95,000 (10,000/10*95=95,000). The
tenant pays a pro-rata share of CAM expenses totaling USD 9,500 (USD 95,000*0.10) as sole occupier.
In the second year, the grossed-up actual expenses are USD 104,500 (55,000/ 50 *95 = 104,500). The tenant pays a pro-rata share of CAM expenses totaling
USD 10,450 (104,500 *0.10).
1.1.2.4.3 Base Year with Gross-Up Method
In SAP Common Area Maintenance Expense Recovery, you can apply the gross-up method on its own or in combination with the base year method. In the latter
case, you gross-up both the base year amount of common area maintenance (CAM) expenses and the actual CAM expenses to the defined occupancy rate.
Activities
In CAM Provision Parameter Selection on the CAM Provisions sub-tab of the CAM Terms tab, you can select Base Year with Gross-Up as your CAM
provision parameter.
You select options and specify data for the base year method, for example, you define the Base Year and Current Year .
Select a Gross-Up Method from the following:
Calculated Gross-Up Amount
Enter a percentage Occupancy Rate .
Manual Gross-Up Amount
Enter an Amount.
Example
Gross-Up with Base Year Method
The total area of the building is 200,000 square meters of which the tenant occupies 20,000 square meters or 10%. The base year is year 1 and the gross-up
rate is 95%.
Year Actual Expenses / USD Occupancy Rate CAM Expenses Amount / USD Grossed-up Base Year Amount
/ USD
1 10,000 10% 0 (Base Year) 95,000
2 55,000 50% 950
Using the gross-up rate of 95%, the grossed-up base year amount is USD 95,000.
In the second year, the tenant has to pay CAM expenses of USD 950. This is calculated as the 10% share of the difference between the grossed-up actual
expenses of USD 104,500 (55,000/ 50 *95) and the grossed-up base year amount of USD 95,000. The tenant's share is calculated as USD 104,500 - USD
95,000*0.10 = USD 950.
1.1.2.4.4 Denominator Method
A denominator is the bottom part of a fraction, for example, 4 is the denominator of the fraction ¾ (three quarters). SAP Common Area Maintenance Expense
Recovery uses a denominator method in the calculation of common area maintenance (CAM) expenses.
Integration
The denominator method is the base calculation method for all other methods defined in CAM provisions. The denominator method can also be used in combination
with other CAM terms, such as markup, capping, and major tenant contribution.
Prerequisites
You make settings for the denominator method in Customizing for Flexible Real Estate Management (RE-FX) under CAM Expense Recovery Master Data
Denominator in CAM .
Features
The denominator calculation method uses the following parameters:
Denominator type
Either by total area or by occupied area.
Fixed denominator
A fixed value to be used as the denominator in calculations.
Fixed share
A percentage of the full expenses a tenant is responsible for. When you specify this, the calculations are simply a percentage of the relevant expenses,
without reference to a measurement.
Denominator threshold
A percentage representing the minimum occupied area to be used in calculations when the denominator type is by occupied area. If the actual occupancy
rate drops below the threshold, the threshold is used to calculate the denominator.
Activities
On the CAM Provisions sub-tab of the CAM Terms tab, you can select a Denominator Method , for example, Occupied Area — m2 (Occupied Area in
Meters Squared) as your CAM provisions parameter.
If you select one of the following denominator methods, you have to enter a value as follows:
Fixed Denominator
Enter a fixed value in meters squared.
Fixed Share
Enter a percentage fixed share, for example, specify that a tenant participates at the level of 5% of the full expenses.
You can also specify a Threshold percentage, for example, 90%.
Example
A tenant occupies 20,000 square meters of a 100,000 square meter building. The vacant area is 40,000 square meters for the first 3 month of a year and then
30,000 square meters for rest of the year.
1. Denominator is based on total area
The tenant’s share is 20,000 / 100,000 = 0.2
2. Denominator is based on occupied area
The tenant’s share is 20,000 / (60,000*3/12+70,000*9/12) = 0.2963
3. Denominator is based on occupied area with a threshold of 70%
The tenant’s share is ((60,000*3/12+70,000*9/12)/100,000) = 67%. 67% is below the threshold, therefore the tenant would pay 20,000 / 70,000 =
0.2857
4. The fixed denominator is 95,000
The tenant’s share is 20,000 / 95,000 = 0.21
1.1.2.4.5 Capping
You can use a capping method to limit the common area maintenance (CAM) expenses that are charged to tenants. In SAP Common Area Maintenance Expense
Recovery, you use the CAM capping term to set the maximum amount or percentage increase of a CAM expense to be charged to a tenant. You can set capping
in a real estate contract at the following levels:
Real estate contract
Expense pool
Expense type
Integration
If you decide to base your capping on the Consumer Price Index (CPI), you can use the standard functionality of SAP Real Estate Management for maintaining
CPI data with possible BAdI implementation.
Features
You can set capping for gross (pre-distribution) and net (post-distribution) CAM expenses on both of the following CAM-relevant tabs:
CAM Terms
You can set up capping of expenses for a real estate contract.
CAM Exp Pool (CAM Expense Pool)
You can set up capping for an individual expense.
You can select one of the following types of capping amounts:
A rate (cost per meter squared)
An absolute amount
Note
You can set an indicator Lesser of Amount/Rate if you want to add values for both a capping rate and a capping amount but you also want to use
whichever of the two values is lower for capping.
A maximum percentage of increase

Based on the Consumer Price Index (CPI)
A cap can be linked to a CPI Index. For example, for a building, you can set up that the tenant cannot be billed more than previous year’s controllable
expense of CPI index + 0.5 %.
Cumulative
The majority of caps used are noncumulative, that is, the cap is calculated on the actual amount of the previous year. Caps may also be cumulative, that
is, the cap is calculated each year on the cap amount of last year.
Activities
To set capping, you can enter capping values for either or both of the following on the CAM Terms and the CAM Exp Pool (CAM Expense Pool) tabs:
CAP Before
Before you calculate CAM expense recovery, you can cap the total pre-distribution or gross CAM expenses. The pre-distribution capping of CAM
expenses can be determined at the level of a real estate contract or at the expense pool or expense type level.
CAP After
You can use post-distribution capping to limit the final or net CAM expenses for a tenant.
Example
A tenant with real estate contract number 123 occupies 20,000 square meters of a building with a total of 100,000 square meters.
Real Estate Expense Pool Expense Pool Pre- Gross Gross Tenant's Distribution / Post- Distribution
Contract No. No. Distribution Expenses / Expenses with Share USD Distribution with Post-
Capping Term USD Pre- Capping Term Distribution
Distribution Cap / USD
Cap / USD
10 Controllable Expense pool 10 30,000 25,000 0.20 5,000

Expenses level;
USD 0.25 / m2
20 Non- 70,000 70,000 0.20 14,000

Controllable
Expenses
123 19,000 Real estate 15,000

contract level;
USD 15,000
1. Pre-Distribution Rate Cap: Fixed cap on controllable expenses of USD 0.25 per meter squared totaling USD 25,000 for the 100,000 square meters
building.
The actual controllable expenses of USD 30,000 were above the fixed cap of USD 25,000 for the building.
The tenant has to pay a pro-rata share of controllable CAM expenses totaling USD 5,000 (USD 25,000 * 0.20).
The tenant pays a pro-rata share of non-controllable expenses totaling USD 14,000 (USD 70,000 * 0.20).
Total CAM expenses for the tenant are USD 19,000 (USD 5,000 + USD 14,000).
2. Post-Distribution Absolute Amount Cap: Fixed cap on total CAM expenses of USD 15,000 at the real estate contract level.
The actual CAM distribution of USD 19,000 for the real estate contract is higher than the cap of USD 15,000.
The tenant then pays a capped distribution of USD 15,000.
1.1.2.4.6 Markup
You set a markup, for example, an administration fee or management share, on top of service charges.
In SAP Common Area Maintenance Expense Recovery, a markup is a margin, either a percentage or an amount, that you add to the actual common area
maintenance (CAM) expenses. You can apply markup to both gross (pre-distribution) and net (post-distribution) CAM expenses. You can define markups at the
level of individual CAM expense pools, expense types, or real estate contracts. When a markup applies to the total CAM expenses of a real estate contract, you
can enter the same markup percentage for all expense pools.
Activities
On the CAM Terms tab of a real estate object, you can define the following for Markup Before and Markup After :
Percentage
Amount
Administrative fee
An administrative fee functions in the same ways as a markup amount, but you can maintain it separately for reporting purposes.
On the CAM Exp Pool (CAM Expense Pool) tab, you can view the markup you defined on the CAM Terms tab. For each expense pool, you can see the pre-
distribution and post-distribution markup percentages, amounts, and administrative fees. You can also create new markups here.
Example
A tenant occupies 10,000 square meters of a building with a total of 100,000 square meters.
Assume the following expenses, totaling USD 30,000, arise for the three services listed:
Service Expenses / USD
Cleaning 10,000
Security 12,000
Landscaping 8,000
1. 3% markup on all service expenses

The tenant pays USD 309, their apportioned share of USD 30,900 ((10,000 + 12,000 + 8,000) * 1.03).
2. USD 200 markup on security expenses only
The tenant pays USD 302, their apportioned share of USD 30,200 (10,000 + (12,000 + 200) + 8,000).
1.1.2.4.7 Major Tenant Contribution
In a retail environment, major or anchor tenants do not participate in the general reconciliation of common area maintenance (CAM) expenses. They usually pay a
flat rate or a reduced rate. The lease agreement for major tenants defines how they participate in CAM expenses, for example, whether they pay a fixed amount,
an amount per square foot, or a percentage of the overall expenses. For the remaining tenants, their lease agreement details how the major tenant contributions
(MTCs) to the CAM expenses are taken into account and affect their CAM calculations.
Integration
Major tenant contribution can be used in conjunction with the denominator method, which SAP Common Area Maintenance Expense Recovery uses to calculate a
tenant’s share of CAM expenses. The major tenant's contribution to CAM expenses can be deducted from actual CAM expenses and their leased area, for
example, the square meters they occupy, can be deducted from the denominator. The option to reduce a denominator is determined by an indicator at real estate
contract level.
Features
In SAP Common Area Maintenance Expense Recovery, you need to enter information about major tenant contributions to CAM expenses at the real estate
contract level. There, you set the Major Tenant Contribution indicator to designate a tenant as a major tenant. You define the major tenant contributions to CAM
expenses at the expense pool level.
Note
A major tenant for one expense pool could be a minor tenant for another expense pool participating in regular CAM distribution.
The major tenant's contribution to CAM expenses can be deducted from the corresponding gross CAM expenses before they are passed to the real estate
contract for distribution. You set the Applicable MT (Applicable Major Tenant) indicator to designate that the major tenant contribution specified in the real estate
contract of the major tenant is relevant to the current real estate contract. If multiple major tenants exist in one business entity, you need to indicate which major
tenant’s contribution is applicable to be deducted from the minor tenant's real estate contract.
The denominator used to calculate a minor tenant’s share can be reduced by a major tenant’s share of space. In the real estate contract, if you set the Reduce
Denominator indicator along with the Applicable MT indicator, the applicable major tenant’s area of occupancy is deducted from the denominator for use in
subsequent distribution calculations.
Note
During CAM expense recovery simulation, you can also manually adjust deductions.
Activities
On the following tabs for a real estate contract:
General Data
You can set the Major Tenant Contribution indicator.
Major Tenant Deduction
Applicable MT
Indicates whether or not a major tenant is applicable for deduction.
You enter information here about the applicable major tenant, for example, name, address, and real estate contract number.
Reduce Denominator
Indicates whether or not the denominator should be reduced.
Note
The Reduce Denominator indicator is only considered when you set the Applicable MT (Applicable Major Tenant) indicator for the same major
tenant's real estate contract.
CAM Exp Pool (CAM Expense Pool)

If you set the MTC indicator, you can specify whether the distribution is an MTC or a CAM distribution. If you specify an MTC distribution, then you can
display or create a CAM term for MTC, for example, that MTC distribution is to be done using a percentage that you specify in the term.
Example
This example shows the tenants' share of CAM expenses when one major tenant is involved.
Tenant C is set as having a non-reducing denominator.
The following table shows the various tenants' shares of the gross leasable area (GLA) of 200,000 square meters in a shopping mall:
Tenant Meters Squared Tenant's Share of GLA Tenant's Share of GLA Excluding
Major Tenant
Major tenant 100,000 0.50
Tenant A 20,000 0.1 0.2
Tenant B 20,000 0.1 0.2
Tenant C 20,000 0.1 0.1
Others 40,000 0.2 0.4
The mall maintenance expenses are USD 45,000. The operating expenses are USD 120,000.
Tenant Mall Maintenance Provision Mall Maintenance Operating Expenses Provision Operating Expenses
Amount/USD Amount/USD
Major tenant Fixed 10% share 4,500 Pro rata share 60,000
(fixed 10% share) (120,000*0.5)
Tenant A Less major tenant contribution, 4,000 Pro rata share 12,000
fixed denominator 0.1 ((45,000 - 5,000)*0.1) (120,000*0.1)
Tenant B Pro rata share 9,000 Pro rata share 12,000

(45,000*0.2) (120,000*0.1)
Tenant C Pro rata share less major tenant 4,000 Pro rata share 12,000
contribution; ((45,000 - 5,000)*0.1) (120,000*0.1)
Non-reducing denominator
Note
This is a simple example with only one major tenant. If there were two or more major tenants, you would have to determine which major tenant contributions to
CAM expenses apply for deductions for each minor tenant.
1.1.3 CAM Expense Posting
SAP Common Area Maintenance Expense Recovery implements Financial Accounting (FI) and Controlling (CO) validation rules so that service charges can only
be posted to common area maintenance-relevant (CAM-relevant) business entities, buildings, properties, and rental objects that serve as cost collectors, as
opposed to the settlement units used in Service Charge Settlement (SCS). Service charges are identified as CAM expenses when they are posted to the
corresponding General Ledger (G/L) accounts of cost elements that are mapped to CAM expense types.
To post service charges for CAM settlement, you use CAM-relevant master data in standard SAP invoicing transactions. You can use the following two types of
invoices to post CAM expenses for recovery:
FI invoices
You enter service charges for CAM expense recovery via Financial Accounting (FI) transactions, for example, transaction FB60 ( Enter Vendor Invoice )
and FB02 ( Change Document ).
Purchasing invoices
You enter service charges for CAM expense recovery via purchase orders in Materials Management Logistic Invoice Verification (MM-LIV) via transaction
MIRO ( Enter Incoming Invoice ). Both standard and service purchase orders can be used to procure CAM-related materials and services.
Example
You create a purchase order to purchase salt for sidewalks during a period of cold weather in the winter and this purchase is a CAM-relevant expense.
SAP supports invoicing transactions FB60, FB02, and MIRO. You can include other FI transactions by extending the SAP delivered FI validation rule.
Prerequisites
You make the following accounting settings in Customizing for Flexible Real Estate Management (RE-FX) under CAM Expense Recovery :
Set up different G/L accounts for transfer postings by debit and credit and by object and contract.
Accounting Advance Payment Condition to Expense Type
You must configure at least one expense type in a real estate contract's expense pool here with a condition type for account determination. During the
posting step of CAM expense recovery, account determination is performed for each expense pool in the lease based on this Customizing setting.
Accounting Define Document Type Determination
Create defaults for determining document types.
Accounting Flow Types
Define flow types as a prerequisite for creating condition types and for account determination.
Define Flow Types
Assign Reference Flow Types
Assign Flow Type to Condition Type
Process
FI Invoices
1. In transaction FB60, per vendor and invoice date, you enter expense amounts for individual G/L account items, which are represented by cost elements in
the CAM expense pools of real estate contracts that are relevant for CAM expense recovery.
2. For each G/L account item, you can assign a real estate object, for example, a business entity, resulting in the expense for that item becoming a real
estate object level expense.
If you define a real estate object, for example, a rental object for an item, you can post the expenses from an invoice directly to that rental object and not the
expense pool of the real estate contract. During CAM expense recovery, the CAM expenses are recovered directly from the real estate contracts where that
rental object resides.
3. When you save your entries to generate the posting, a CAM pop-up screen appears with the individual G/L account item information, for example, the
expense type and the default participation group.
In order for the relevant CAM expense pool to receive the expenses for cost elements, the participation group in the real estate contract CAM expense pool,
which is generated by the system when the real estate object is created, must match the default participation group on the CAM pop-up screen in FB60.
You can also manually change the participation group on this CAM pop-up screen.
Example
You want a particular CAM expense to only apply to three buildings in a ten-building business park that you define as a business entity with the
participation group BE00004631. You maintain a separate participation group BE4633BU3 for the three buildings. In FB60, on the CAM pop-up
screen, you overwrite the default participation group BE00004631 with BE4633BU3 when you post the relevant expenses via an FI invoice. In this
way, CAM expense recovery allocates this CAM expense just to the expense pool of the first three buildings of the business entity.
4. After FI invoices are posted, you can still change CAM-related parameters on the FI document via transaction FB02.
Purchasing Invoices
1. In the relevant purchase order, you must assign a G/L account item to a real estate object.
In transaction ME23N, for the relevant purchase order, you assign a G/L account item in the purchase order to a real estate object, for example, a business
entity. When you create the invoice for this purchase order, this item line is posted to the real estate object as the real estate object-related expense.
2. In order to be able to enter an invoice for a purchase order, you first need to receive the purchased material or goods in the purchase order.
In transaction MIGO, you receive the goods in the relevant purchase order and post the receipt of goods.
3. In transaction MIRO, you create a purchase order invoice. For the relevant purchase order, the system has information about the quantity and price of the
goods received.
When you save to post, information is displayed for each G/L account item on a CAM pop-up screen. You specify the expense type per item and, if
required, update the participation group.
Note
You can change the purchasing price, which results in the original cost and the variance in the cost being posted as separate line items.
Result
The service charges from invoices and purchase order-related invoices are used along with CAM master data and calculations in CAM expense recovery to
distribute CAM expenses.
You can see the invoice expenses, purchase order-related expenses, and other purchase order-related fields in the reports of CAM Expense Recovery
(transaction code REYCSE). For more information on CAM reports, see Information Systems.
More Information
For more information about posting in Financial Accounting, see the SAP Library for SAP ERP Central Component Financials Financial Accounting (FI)
Accounts Payable (FI-AP) FI Accounts Receivable and Accounts Payable Posting Business Transactions in Accounts Payable Posting Business
Transactions in Accounts Payable .
For more information about purchase orders, see the SAP Library for SAP ERP Central Component Logistics Materials Management Purchasing
Purchase Order (MM-PUR-PO).
1.1.3.1 Posting CAM Expenses
To post service charges for CAM expense recovery, you use CAM-relevant master data in the standard SAP transactions for both Financial Accounting (FI)
invoices, for example, transaction FB60, and for Materials Management Logistic Invoice Verification (MM-LIV) purchase order invoices, namely, transaction
MIRO.
Procedure
FI Invoices
1. On the SAP Easy Access screen, choose Accounting Financial Accounting Accounts Payable Document Entry Invoice (transaction
FB60).
2. On the Basic Data tab, select a Vendor and define an Invoice Date.
3. On the lower part of the screen, enter individual items for G/L Accounts .
4. Enter the amount of the relevant expense per item.
5. Assign a real estate object, for example, a Business Entity , per item.
6. At the header level of the Basic Data tab, enter an Amount to represent the sum of the G/L account items listed individually below.
7. Choose ( Save ) to generate the posting.
A CAM pop-up screen appears with the individual G/L account item information, for example, the default participation group.
8. In the CAM pop-up screen, specify the Expense Type .
If you have multiple relevant expense types, select the relevant one for the G/L account item.
If relevant, manually change the Participation Group on this CAM pop-up screen.
Purchasing Invoices
Displaying a Purchase Order (transaction ME23N)

1. To assign a G/L account item to a real estate object, display the relevant purchase order.
In the SAP Easy Access menu, choose Logistics Materials Management Logistics Purchasing Purchase Order Display
(transaction ME23N).
2. On Purchase Order Display , on the Account Assignment tab of the line item level, use the Real Estate Obj (Real Estate Object) icon to assign a line
item in the purchase order to a real estate object, for example, a Business Entity .
3. Check the entries and choose ( Save ) to save the assignment.
Receiving Goods (transaction MIGO)

1. To receive the goods in the relevant purchase order, in the SAP Easy Access menu, choose Logistics Materials Management Inventory
Management Goods Movement (transaction code MIGO).
2. On the General tab of the Goods Receipt Purchase Order , you enter the relevant purchase order.
3. Check the entries and choose ( Save ) to post the receipt of goods.
Entering the Purchase Order Invoice (transaction MIRO)

1. To create a purchase order invoice, in the SAP Easy Access menu, choose Logistics Materials Management Logistics Invoice Verification
Document Entry Enter Invoice (transaction MIRO).
2. On the Enter Invoice screen, on the Basic Data tab in the top area, enter an Invoice Date and a Posting Date .
3. On the P.O. Reference sub-tab, enter a purchase order number.
The system has information about the quantity and price of the goods received.
4. When you choose ( Save ) to post, the CAM pop-up screen is displayed.
5. Here you specify the Expense Type and, if required, update the Participation Group .
Note
You can change the purchasing price, which results in the original cost and the variance in the cost being saved as separate line items.
6. Check the entries and choose ( Save ) to post the expenses.
1.1.4 CAM Expense Recovery Run
The CAM Expense Recovery run (transaction REYCSE) is the flexible and dynamic process at the heart of SAP Common Area Maintenance Expense
Recovery. This process uses conmon area maintenance (CAM) master data, calculation methods, and Customizing to run a multiple-step expense recovery to
calculate the pro rata CAM expenses per real estate contract and tenant.
You can simulate CAM expense recovery or you can post the CAM expense recovery results to Accounts Receivable (FI-AR) to create a tenant's invoice for
CAM expenses. If you do not run CAM expense recovery in simulation mode, the CAM results are saved and can be displayed and reversed.
With both simulated and actual CAM expense recovery, you can execute the run as a one-step execution or with multiple steps. It has some interactive steps, so
that you can adjust the calculated values as appropriate.
You have the flexibility to run a CAM expense recovery for one or many real estate contracts. You can recover CAM expenses up to a defined time period and
also recover CAM expenses at a point in time, for example, for a contract termination.
Prerequisites
You can predefine default parameters for CAM expense recovery runs in a Settlement Schema in Customizing for Flexible Real Estate Management (RE-FX)
under CAM Expense Recovery Basic Settings CAM Recovery Parameters . You should set up at least one schema as Active for CAM and as CAM
Default .
The following are other relevant settings in Customizing for Flexible Real Estate Management (RE-FX) under CAM Expense Recovery :
Basic Settings CAM Recovery Parameters :
Open AP
Set the indicator if you want the recovered CAM expenses to be settled on the basis of planned advance payments and not on the basis of actual
advance payments.
No AP
Set the indicator to deactivate the step for determining advance payments.
Groups similar CAM expenses by cost elements into an expense type.
When you maintain expense pool and expense types for real estate objects, the expense types retrieve cost elements directly from Customizing. Any
change in Customizing is automatically reflected in the expense types in these real estate objects.
However, when you maintain expense pool and expense types for a real estate contract, the cost elements are copied from Customizing, are saved along
with real estate contract, and are not automatically changed by changes in Customizing. As the CAM master data in a lease is an agreement between
landlord and tenant, you can manually update cost elements in the real estate contract.
You must configure at least one expense type in a real estate contract's expense pool here with a condition type for account determination. During the
posting step of CAM expense recovery, account determination is performed for each expense pool in the lease based on this Customizing.
Define flow types as a prerequisite for creating condition types and for account determination.
Define Flow Types
Process
1. The following CAM expense recovery (settlement) activities are available for your selection:
Create new settlement
Continue existing settlement
Store simulated settlement
Display results of settlement
Reverse settlement
2. You can give the CAM expense recovery run a title for future reference.
3. The following three CAM expense recovery methods are available for your selection:
Actual settlement
You can decide to save the calculated results and post the calculated CAM expenses to Accounts Receivable (FI-AR), which results in an invoice for
CAM expenses being issued to tenants.
Simulation with subsequent actual settlement
You can decide to simulate a CAM expense recovery run and later convert to an actual CAM expense recovery run whereby the calculated values
are posted to Accounts Receivable (FI-AR). The calculated results are saved.
Simulation only without subsequent actual settlement
You can decide to simulate a CAM expense recovery run, which gives you the calculated CAM expenses distribution but does not save the results
and does not lead to a posting of these values to Accounts Receivable (FI-AR).
4. You specify Common Area Maintenance Cost Recovery as the settlement type, as this it the only option available for this release. You also specify a
settlement schema from those you have defined in Customizing.
5. You make a selection of one or more real estate contracts to settle. You define a period to settle to, and you can also indicate whether or not the run is a final
recovery of CAM expenses, for example, in the case of a contract termination when a tenant is moving out.
6. You can execute the report for any CAM expense recovery step, and the system runs the steps in sequence up to the step you request. For example, if
you decide to run step five, then the system runs steps one to five and presents you with the results at step five. If you decide to run from the last step, then
the system executes the CAM expense recovery run in total.
You are able to make manual changes in some interactive steps, for example, in the step Adjustment of Gross Expenses at RE-FX Object , of a
simulation run. These interactive steps can have standard management approval processes built-in.
7. There is a selection list of the reports and their statuses for each CAM expense recovery step. The status indicates whether you can select the report and if
all information and values are available for the report.
8. You can enter parameters for accounting, for example, you define a posting date.
9. You can write notes on the CAM expense recovery run for future reference.
10. You can view the status of individual CAM expense recovery steps.
Result
If you select the Actual Settlement method, then the CAM expenses are posted via Accounts Receivable (FI-AR) to the tenant or tenants for the individual or
multiple real estate contracts you specified for the period you defined.
If you select the Simulation with Subsequent Actual Settlement method, the results in the report are saved with a Settlement ID and are not posted to Accounts
Receivable (FI-AR). To convert to a CAM expense recovery that actually posts the results for CAM expenses to Accounts Receivable (FI-AR), you use the
Settlement ID and choose the activity Store Simulated Settlement in a later CAM expense recovery run.
If you select the Simulation Only (Without Subsequent Actual Settlement ) method, the results in the report are not saved and you lose the data when you exit the
report.
More Information
For more information about CAM expense recovery reports, see Information Systems.
1.1.4.1 CAM Expense Recovery Steps
In SAP Common Area Maintenance Expense Recovery, you can execute a common area maintenance (CAM) expense recovery run for any of the CAM expense
recovery steps and the system runs the steps in sequence up to the step you request. For example, if you decide to run step five, then the system runs steps
one to five and presents you with the results at step five. If you choose to run from the last step, then the system executes the CAM expense recovery run in total.
You are able to make manual changes in some interactive CAM expense recovery steps, for example, in the step Adjustment of Gross Expenses at RE-FX
Object .
The reports for the individual steps are displayed. You can check the status of the CAM expense recovery steps in the relevant tab.
Features
In the Perform Settlement To group box of CAM Expense Recovery (transaction REYCSE), the following numbered CAM expense recovery steps are available
to you:
1. Determination of Settlement Hierarchy
Retrieves the CAM indicator and sets up CAM parameters at the different hierarchical levels.
2. Determination of Reference Factors
The reference factor is defined as the multiplication of measurement and number of the days of the measurement.
3. Determination of Expenses
Retrieves CAM expenses, for example, the expense pools and expense types, based on real estate contacts and fixed real estate objects (for example,
building entities)
4. Meter Based Expenses
Allows for distribution of metered expenses (for example, electric, water, and gas) to the tenants. You can make changes manually here.
Example
A master meter exists for the entire building and each rental unit has a sub-meter. The landlord receives an invoice based on the master meter reading.
The landlord in turn reads each of the sub-meters in each of the tenants’ rental units. The sub-meter readings are then entered in each of the tenant’s
associated expense type. Any shortfall that remains between the master meter bill and the sub-meter readings are distributed via one of the following
methods:
The shortfall is distributed to the tenants based on the current denominator method
The shortfall is the responsibility of the landlord to pay
If no metering data exists, then this step produces an output of zero in the related expense type, thus having no impact on the subsequent steps.
5. Adjustment of Gross Expenses at RE-FX Object

Allows for the interactive adjustment of the gross CAM expenses from the business entity or the real estate contact. You can make changes manually here.
6. Adjustment of Gross Expenses at Lease Level
Allocates the actual gross CAM expenses to each real estate contact. Not all real estate contacts share all the CAM expenses, as not all expense pools
have all expense types. For example, if a tenant for a specific building has a real estate contact with the expense pool Lawn Maintenance but without the
expense type Trimming , then this tenant will not pay for CAM expenses incurred for trimming at the building. You can make changes manually here.
7. Expense Distribution
Performs the calculations and distributes the share of CAM expenses.
8. Markup and Capping after Distribution
Allows for CAM expenses to be marked up, for example, adds a 5% administration fee to the distributed CAM expenses. Also allows for the setting of
capping limits, for example, the CAM expenses for the expense pool Lawn Maintenance in a specific real estate contract cannot exceed USD 1,000.
9. Determination of Advance Payments
Supports the concept of advance or down payments for CAM expenses. The advance payment is retrieved per real estate contract, based on the advance
payment condition set up in the real estate contract.
For example, a landlord who accrues a lot of CAM expenses during the course of a year resulting in cash flow limitations may negotiate a set monthly
payment for CAM expenses with tenants. For example, the tenant's monthly down payment is USD 200 giving rise to a yearly payment of USD 2,400. The
CAM expenses for the year total USD 3,000. CAM expense recovery calculates that the total due from the tenant to settle the year end CAM expenses is
USD 600.
10. Calculation of Net Tenant Receivables
Determines net receivables. You can make changes manually here.
11. Correspondence
Allows you to print the actual invoice with the net CAM expenses from step 10
12. Simulation of Distribution Posting
Simulates the CAM expense recovery calculation results
13. Posting Distribution to Financial Accounting
If you select the method Actual Settlement , then the distributed CAM expenses are posted to Accounts Receivable (FI-AR) and the tenant can be
invoiced.
1.1.4.1.1 Running CAM Expense Recovery
Prerequisites
Make all the relevant settings in Customizing for Flexible Real Estate Management (RE-FX) under CAM Expense Recovery .
Procedure
1. Enter transaction code REYCSE.
2. Select an Activity , for example, Create New Settlement.
3. In the Settlement ID group box, there is a default Title that you can overwrite.
4. In the Type of Settlement group box, select one of the Settlement Methods , for example, Actual Settlement , which results in the generation of postings
for Accounts Receivable (FI-AR).
Select Common Area Maintenance Expense Recovery as the Settlement Type .
Note
This is the only valid Settlement Type for this release.
Select the Settlement Schema as set in Customizing for Flexible Real Estate Management (RE-FX) under CAM Expense Recovery Basic Settings
CAM Recovery Parameters .
5. On the Selection tab at the bottom of the CAM Expense Recovery screen, in the Selection of one or more Contracts group box, make a selection of a
single contract, contract type, or expense type, or select a range of them, for CAM expense recovery.
When all the real estate objects assigned to the specified contract belong to the same business entity, that business entity is automatically displayed here
in BE for Contract . This information is then used to group contracts by their business entity in reporting.
In the Period Selection group box, define a date until which expense recovery should be performed. If appropriate, for example, for real estate contract
termination, indicate that the expense recovery run is a Final Recovery Run .
6. On the Parameter tab, define a number of dates and specify a posting period as follows:
Document Date
Define the date of issue of the original document.
Posting Date
From the posting date you define, the system derives the fiscal year and period for which the accounts or cost elements referenced in the document
are updated. At the time of document entry, the system checks if the posting date entered is allowed based on the posting period.
Baseline Date
Define a due date for receivable postings for CAM expense recovery. If you do not define it, the due date for receivable postings is calculated from FI
Customizing settings.
Due Date
Define a due date for credit.
Specify a Posting Period
In the accounting documents, the period is derived from the posting date. Alternatively, you can specify it directly if, instead of the last period of the
fiscal year, a special period is to be updated.
7. On the Notes on Settlement tab, you can keep track of how you run CAM expense recovery for future reference.
8. In the Perform Settlement To group box for the creation of a new expense recovery, specify the Settlement Step you want to run to, for example, step 13
Posting Distribution to Financial Accounting runs the entire expense recovery. Choose ( Execute ).
9. A selection list of the reports and their statuses for each expense recovery step is displayed. Use the status to decide if you can select an individual report
and view all information and values that are available for it.
Make manual changes in the resulting report, if relevant, if you choose to run to one of a number of interactive steps, for example, step 05 Adjustment of
Gross Expenses at RE-FX Level.
10. On the Status of Settlement Steps tab, each of the steps is listed sequentially and you can view which of the following statuses each step has:
No Errors
Data is not Completely Available
Not Yet Started
Error Occurred (See Log)
Expenses Released for Approval
For each step in the Sequence , choose either Settlement Log or Settlement Step Log to get the Log Display with an Overview of the steps and their
statuses and a list of messages with their Message Type and Message Text .
More Information
For more information about CAM expense recovery reports, see Information Systems.
1.1.5 Information Systems
The reports for SAP Common Area Maintenance Expense Recovery are found in CAM Expense Recovery (transaction REYCSE). There are reports available for
each of the common area maintenance (CAM) expense recovery steps.
You can execute CAM Expense Recovery for any CAM expense recovery (also referred to as settlement) step, and the system runs the steps in sequence up
to the step you request. The CAM expense recovery run stops to allow you to make manual changes, if relevant, in some interactive steps. You can view the list
of reports and their statuses and select to execute any of the completed reports.
Example
You select step five of a CAM expense recovery run and the system runs steps one through to five. The system allows you to make any necessary changes
manually at interactive step four and, once any changes are released by management, the system presents you with the report of the results at step five.
Step five is also an interactive step allowing you to make more changes if required.
Features
If you select Actual Settlement or Simulation (With Subsequent Actual Settlement) as the Settlement Method , the results in the report are saved or stored. If
you have selected to run up to one of the CAM expense recovery steps, at a later stage, you can use the Settlement ID and select the activity Continue Existing
Settlement to complete later steps in the CAM expense recovery run.
If you select Simulation Only (Without Subsequent Actual Settlement) as the Settlement Method , the results in the report are not saved and you lose the data
when you exit the report.
You can execute CAM Expense Recovery many times in the settlement period until you indicate that the CAM expense recovery run is a Final Recovery Run.
Then you can no longer run the report in the settlement period and the CAM expenses are posted to Accounts Receivable (FI-AR).
If you decide to run expense recovery for the last step, the system executes the expense recovery run in total, the interactive reports are displayed for any
relevant manual changes, and then the report of the final results for the last step is displayed. You can also view the full list of the reports and execute any report
for the previous steps where the status indicates that a complete report exists. Steps one and eight have double reports.
Interactive CAM Expense Recovery Steps
You are able to make manual changes in the following interactive CAM expense recovery steps:
4 Meter Based Expenses
Add an estimated invoice or remove an existing invoice so that invoices match measurement documents.
5 Adjustment of Gross Expenses at RE-FX Object
Re-clarify CAM expenses and make adjustments to gross CAM expenses.
6 Adjustment of Gross Expenses at Lease Level
Make further adjustments to gross CAM expenses at real estate contract level.
10 Calculation of Net Tenant Receivables
Make final adjustments to real estate contract or expense pool level distribution before posting.
Example
You want to settle CAM expenses related to a master meter and sub-meters, but one sub-meter invoice is not posted. You estimate the expense for the
missing invoice and manually enter it in step 4 Meter Based Expenses of the CAM expense recovery run. Your manager allows you to release the run for
processing CAM expenses.
Report Status Symbols

The selection list displays all possible reports for CAM expense recovery. The following status symbols indicate whether reports can be selected and if all
information and values are available for the report:
( Inactive ) There is no Data Yet

The report cannot be chosen at the current time because a required CAM expense recovery step has not been carried out (or contains errors).
( Go ) Complete Report Exists
All values are available and the report is complete.
( Caution ) Data Is Not Completely Available
Not all the values are available; in other words, not all the required CAM expense recovery steps have been carried out.
( Released ) Expenses Released for Approval
Report Colors
CAM expense recovery reports for steps 6, 7, and 8 are color coded as follows:
Brown represents the real estate contract level.
Bright yellow represents the expense pool level.
Light yellow represents the expense type level.
Blue represents the actual invoice.
More Information
For more information, see CAM Expense Recovery Steps.
1.1.6 Periodic Processing
In SAP Common Area Maintenance Expense Recovery, you can carry out the following functions on a regular basis:
Common area maintenance (CAM) prepayments
CAM prepayments, which are paid periodically as defined by the lease agreement, are generated by the standard Periodic Processing: Contracts
program (transaction code RERAPP).
CAM expense recovery runs
CAM expense recovery runs generate the posting of CAM expenses to Accounts Receivable (FI-AR)
Prerequisites
You make the following accounting settings in Customizing for Flexible Real Estate Management (RE-FX) under CAM Expense Recovery :
You must configure at least one expense type in a real estate contract's expense pool here with a condition type for account determination.
Define flow types as a prerequisite for creating condition types and for account determination:
Define Flow Types
Features
CAM Prepayments
The SAP real estate contract is involved in the generation of all of the financial postings related to a lease agreement between a tenant and a landlord. In the real
estate contract, you enter the financial terms of the lease agreement as conditions. Examples of conditions are rent, parking expenses, overtime HVAC
(heating/ventilation/air conditioning), property taxes, and CAM expenses.
Example
In North America, a triple net lease is a lease agreement in which the tenant agrees to pay all real estate taxes, building insurance, and maintenance (known
as the three nets) on a property in addition to any normal agreed fees, for example, rent. In such a lease agreement, the tenant is responsible for all costs
associated with the maintenance of any common area. For a triple net lease, on the real estate contract, the tenant includes a condition for basic rent, another
for property taxes, a third for insurance, and a final condition for CAM .
Each condition is paid periodically as defined by the lease agreement, for example, it is possible for rent to be paid monthly and CAM prepayments to be paid
quarterly. These payments, which are carried out on a regular basis, are generated by the Periodic Processing: Contracts program (transaction code RERAPP).
CAM prepayments can typically be recorded to a different lease income account than basic rent income and are not recorded as down payments on the landlord’s
balance sheet. These CAM prepayments are used to offset the actual CAM expenses by the landlord. At some point during the year, advanced payments are
reconciled with actual costs. During the CAM reconciliation process, the actual CAM expenses are compared with the prepayments, and after adjustments a final
invoice is sent to the tenant.
CAM Expense Recovery Runs

You need to decide how often to run CAM expense recovery to suit your own business requirements. If, for example, you decide to run CAM expense recovery
monthly, then you can recover the expenses you have paid more quickly to aid your cash flow. However, bear in mind that all CAM expenses may not be
available monthly and you have to make many adjustments to run CAM expense recovery.
More Information
For more information about periodic posting for contracts, see SAP Library for SAP ERP under SAP ERP Central Component Flexible Real Estate
Management (RE-FX) Commercial Real Estate Management Accounting (RE-FX) Periodic Posting Periodic Processing: Contracts .

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SAP Common Area Maintenance Expense Recovery

PDF download from SAP Help Portal:

Created on February 17, 2015

SAP Common Area Maintenance Expense Recovery Architectural Landscape

1.1 CAM Expense Recovery

1.1.1 CAM Expense Recovery Lifecycle

1.1.2 CAM Master Data

Master Data Objects

CAM-Specific Master Data Values

CAM Master Data Creation Process

1.1.2.1 CAM Terms

1.1.2.2 CAM Expense Pool

Expense Pool Expense Type Cost Element

Controllable Expenses Lawn Maintenance 4012011 Mowing

Utilities 4012021 Water

Cleaning 4012031 Materials

The expense pool is controllable expenses.

1.1.2.3 CAM Parameter Maintenance and Assignment

Utilities Electricity 417040

Utilities Water 417041

1.1.2.3.1 Maintaining CAM Parameters and Assigning Them to a

Assigning CAM Parameters to a Real Estate Object

Assigning CAM Parameters to a Real Estate Contract

1.1.2.3.1.1 Maintaining and Assigning CAM Terms

CAM Term: CAM Provisions

CAM Term: CAM Capping

CAM Term: CAM Markup

CAM Term: Major Tenant Contribution

1.1.2.4 CAM Expense Calculation Methods

1.1.2.4.1 Base Year Method

Base Year Amount

Base Year Method Variations

Base Year 10,000 4,000 500 500 0 0

Second Year 10,000 4,000 500 800 0 120

Base Year 10,000 4,000 500 500 0 0

Second Year 10,000 4,000 500 800 0 6

1.1.2.4.2 Gross-Up Method

1 10,000 10% 9,500 95,000

2 55,000 50% 10,450 104,500

1.1.2.4.3 Base Year with Gross-Up Method

1 10,000 10% 0 (Base Year) 95,000

2 55,000 50% 950

1.1.2.4.4 Denominator Method

A maximum percentage of increase

10 Controllable Expense pool 10 30,000 25,000 0.20 5,000

20 Non- 70,000 70,000 0.20 14,000

123 19,000 Real estate 15,000

Service Expenses / USD

1. 3% markup on all service expenses

1.1.2.4.7 Major Tenant Contribution

CAM Exp Pool (CAM Expense Pool)

Major tenant 100,000 0.50

Tenant A 20,000 0.1 0.2

Tenant B 20,000 0.1 0.2

Tenant C 20,000 0.1 0.1

Others 40,000 0.2 0.4

Tenant B Pro rata share 9,000 Pro rata share 12,000

1.1.3 CAM Expense Posting

1.1.3.1 Posting CAM Expenses

Displaying a Purchase Order (transaction ME23N)

Receiving Goods (transaction MIGO)

Entering the Purchase Order Invoice (transaction MIRO)

6. Check the entries and choose ( Save ) to post the expenses.