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AC290 Real Estate Management

AC290

R/3 System Release 46C 04/04/2001

0
AC290 Real Estate Management ..................................................................................................................................0-1
Copyright ..................................................................................................................................................................0-2
Financial Accounting I..........................................................................................................................................0-4
Course Prerequisites..............................................................................................................................................0-5
Target Group .........................................................................................................................................................0-6
Contents ................................................................................................................................................................0-7
Course Objectives .................................................................................................................................................0-8
Course Objective(s)...............................................................................................................................................0-9
Course Content....................................................................................................................................................0-10
Course Overview.................................................................................................................................................0-11
Main Business Scenario ......................................................................................................................................0-12
Integration of Real Estate Management in R/3 ...................................................................................................0-13
Course Material and Additional Information ......................................................................................................0-14
Tips and Tricks....................................................................................................................................................0-15
Help! Emergency! ............................................................................................................................................0-16
Checklist for Online Service System Messages ..................................................................................................0-17
Master Data...............................................................................................................................................................1-1
Master Data: Unit Objectives................................................................................................................................1-2
Course Overview / Master Data ............................................................................................................................1-3
Master Data: Business Scenario............................................................................................................................1-4
R/3 Organizational Structures ...............................................................................................................................1-5
Overview of Organizational Structure ..................................................................................................................1-6
Master Data of Real Estate Objects.......................................................................................................................1-7
Master Data (Organizational Structures) Relationship to Related Applications ...................................................1-8
Relationship Between RE Master Data and PM....................................................................................................1-9
Availability .........................................................................................................................................................1-10
Rental Unit ..........................................................................................................................................................1-11
Mass Change of Rental Units..............................................................................................................................1-12
Partner Management ...........................................................................................................................................1-13
Partner Information .............................................................................................................................................1-14
Customizing Master Data....................................................................................................................................1-15
Customizing Partner Management ......................................................................................................................1-16
Master Data Reports............................................................................................................................................1-17
Sets for Real Estate Objects ................................................................................................................................1-18
List Structure.......................................................................................................................................................1-19
Navigation...........................................................................................................................................................1-20
Editing Reports ...................................................................................................................................................1-21
Master Data: Unit Summary ...............................................................................................................................1-22
Exercise Data ......................................................................................................................................................1-23
Master Data Solutions .........................................................................................................................................1-27
Rental ........................................................................................................................................................................2-1
Rental: Unit Objectives .........................................................................................................................................2-2
Course Overview...................................................................................................................................................2-3
Rental: Business Scenario .....................................................................................................................................2-4
Rental ....................................................................................................................................................................2-5
Partner Roles in the Rental Process.......................................................................................................................2-6
Conditions in the Rental Process...........................................................................................................................2-7
Rental Agreement .................................................................................................................................................2-8
Contract-Specific Additional Data ........................................................................................................................2-9
Number Assignment for Rental Agreements ......................................................................................................2-10
Collective Rental Agreement ..............................................................................................................................2-11
Condition Types..................................................................................................................................................2-12
Notice..................................................................................................................................................................2-13
Periods of Notice.................................................................................................................................................2-14
Changing Tenant with Customer Account in Active Rental Agreements ...........................................................2-15
Tenant Information .............................................................................................................................................2-16
Rental Agreement Life Cycle..............................................................................................................................2-17
Customizing Rental Application and Offer.........................................................................................................2-18
Customizing Rental Agreement ..........................................................................................................................2-19
Customizing Conditions......................................................................................................................................2-20
Rental Reports.....................................................................................................................................................2-21
Rental: Unit Summary.........................................................................................................................................2-22
Rental: Exercises.................................................................................................................................................2-23
Rental Solutions ..................................................................................................................................................2-25
Correspondence.........................................................................................................................................................3-1
Correspondence: Unit Objectives..........................................................................................................................3-2
Course Overview...................................................................................................................................................3-3
Correspondence: Business Scenario......................................................................................................................3-4
Correspondence - Overview..................................................................................................................................3-5
Layout and Content...............................................................................................................................................3-6
Letter Layout in SAPscript....................................................................................................................................3-7
Correspondence Activities ....................................................................................................................................3-8
Example of Correspondence Role Type Usage.....................................................................................................3-9
Correspondence Group / Correspondence Activity.............................................................................................3-10
Letters .................................................................................................................................................................3-11
Text Modules ......................................................................................................................................................3-12
Example: Correspondence ..................................................................................................................................3-13
Useful Functions .................................................................................................................................................3-14
Overview of Terms Used in Correspondence .....................................................................................................3-15
Overview of Terms Used in Correspondence .....................................................................................................3-16
Correspondence: Unit Summary .........................................................................................................................3-17
Correspondence Exercises ..................................................................................................................................3-18
Correspondence Solutions...................................................................................................................................3-19
Rental Accounting.....................................................................................................................................................4-1
Rental Accounting: Unit Objectives .....................................................................................................................4-2
Course Overview...................................................................................................................................................4-3
Rental Accounting: Business Scenario .................................................................................................................4-4
Integration of RE in FI ..........................................................................................................................................4-5
Rental Accounting Processes ................................................................................................................................4-6
Partner with Customer Account ............................................................................................................................4-7
Debit Position Postings .........................................................................................................................................4-8
Incoming Payment Postings..................................................................................................................................4-9
Cash Flow ...........................................................................................................................................................4-10
Debit Position Reversal.......................................................................................................................................4-11
Rental Units: Usage and Debit Position ..............................................................................................................4-12
Controlling (CO) View .......................................................................................................................................4-13
Account Determination Debit Position ...............................................................................................................4-14
Account Determination Debit Position - Procedure............................................................................................4-15
Account Determination Without Condition Reference .......................................................................................4-16
Account Maintenance..........................................................................................................................................4-17
One-Time Postings in Rental Agreements ..........................................................................................................4-18
Account Determination: Application and Procedure ..........................................................................................4-19
Reference Flow Types.........................................................................................................................................4-20
New Condition Type ...........................................................................................................................................4-21
Incoming Payments Processing...........................................................................................................................4-22
Payment Program - Collection Authorization .....................................................................................................4-23
Dunning: Starting the FI Program.......................................................................................................................4-24
Dunning: Special RE Features ............................................................................................................................4-25
Rental Accounting Reports .................................................................................................................................4-26
Rental Accounting: Unit Summary .....................................................................................................................4-27
Rental Accounting Exercises ..............................................................................................................................4-28
Rental Accounting Solutions...............................................................................................................................4-30
Rent Adjustments......................................................................................................................................................5-1
Rent Adjustment: Unit Objectives ........................................................................................................................5-2
Course Overview...................................................................................................................................................5-3
Rent Adjustment: Business Scenario ....................................................................................................................5-4
Rent Adjustment Methods.....................................................................................................................................5-5
Rent Adjustment Process ......................................................................................................................................5-6
Rent Adjustment Data Relevant For Master Data Objects....................................................................................5-7
Free Adjustment, Adjustment of Any Conditions, Garage Rent...........................................................................5-8
Generate New Conditions - Example of Usage.....................................................................................................5-9
Index-Linked Rent Adjustment...........................................................................................................................5-10
Frequency and Delay ..........................................................................................................................................5-11
Representative List of Rents ...............................................................................................................................5-12
Comparative Apartments and Groups (1) ...........................................................................................................5-13
Comparative Apartments and Groups (2) ...........................................................................................................5-14
Expert Opinion....................................................................................................................................................5-15
Construction Measures: Modernizations.............................................................................................................5-16
Area Change........................................................................................................................................................5-17
Parameter Overview............................................................................................................................................5-18
Customizing Rent Adjustment ............................................................................................................................5-19
Rent Adjustment: Unit Summary........................................................................................................................5-20
Rent Adjustment Exercises .................................................................................................................................5-21
Rent Adjustment Solutions .................................................................................................................................5-23
Service Charge Settlement ........................................................................................................................................6-1
Service Charge Settlement: Unit Objectives .........................................................................................................6-2
Course Overview...................................................................................................................................................6-3
Service Charge Settlement: Business Scenario .....................................................................................................6-4
Overview: Service Charge Settlement .................................................................................................................6-5
Participation ID of SCS.........................................................................................................................................6-6
Structure of Service Charge Settlement ................................................................................................................6-7
Settlement Unit .....................................................................................................................................................6-8
Master Settlement Unit (Master SU).....................................................................................................................6-9
Account Determination Keys: Settlement Unit and Participation ID..................................................................6-10
Account Determination Keys for the Settlement.................................................................................................6-11
Posting Service Charges......................................................................................................................................6-12
Full Settlement ....................................................................................................................................................6-13
Example: Occupancy of a Rented Object............................................................................................................6-14
Example: Costs ...................................................................................................................................................6-15
Example: Calculation ..........................................................................................................................................6-16
Posting Procedures - Service Charge Settlement ................................................................................................6-17
Posting Procedures - Service Charge Settlement ................................................................................................6-18
Posting Procedures - Service Charge Settlement ................................................................................................6-19
Debit Position and Incoming Payments (with SC)..............................................................................................6-20
Clearing Advance Payments (1)..........................................................................................................................6-21
Clearing Advance Payments (2)..........................................................................................................................6-22
Clearing Advance Payments (3)..........................................................................................................................6-23
Clearing Advance Payments - Actual Principle ..................................................................................................6-24
Clearing Advance Payments - Planned Principle................................................................................................6-25
Settlement Variant...............................................................................................................................................6-26
Customizing Service Charge Settlement.............................................................................................................6-27
Account Determination for Service Charge Settlement ......................................................................................6-28
Service Charge Groups .......................................................................................................................................6-29
External Heating Expenses Settlement................................................................................................................6-30
External Heating Expenses Settlement DME.....................................................................................................6-31
Carrying out the Settlement ................................................................................................................................6-32
Service Charge Settlement Reports.....................................................................................................................6-33
Service Charge Settlement: Unit Summary.........................................................................................................6-34
Service Charge Settlement Exercises ..................................................................................................................6-35
Service Charge Settlement Solutions ..................................................................................................................6-37
Sales-Based Rent and Sales-Based Rent Settlement .................................................................................................7-1
Sales-Based Rent: Unit Objectives .......................................................................................................................7-2
Course Overview...................................................................................................................................................7-3
Sales-Based Rent: Business Scenario ...................................................................................................................7-4
Sales-Based Rental Agreement .............................................................................................................................7-5
Sales-Based Rental Agreement with Several Sales Types and Sales According to Quantity ...............................7-6
Overview of Sales-Based Rent Settlement............................................................................................................7-7
Example Sales-Based Rental Agreement ..............................................................................................................7-8
Clearing Advance Payments .................................................................................................................................7-9
Sales-Based Rent Settlement Reports .................................................................................................................7-10
Sales-Based Rent Settlement: Unit Summary .....................................................................................................7-11
Sales-Based Rent Exercises ................................................................................................................................7-12
Sales-Based Rent Solutions.................................................................................................................................7-13
General Contract .......................................................................................................................................................8-1
General Contract: Unit Objectives ........................................................................................................................8-2
Course Overview/General Contract (Tenant Rental) ............................................................................................8-3
General Contract: Business Scenario ....................................................................................................................8-4
Overview of Contract Data ...................................................................................................................................8-5
Conditions and Periodic Postings..........................................................................................................................8-6
Resubmission ........................................................................................................................................................8-7
Contract Renewal..................................................................................................................................................8-8
Distribution ...........................................................................................................................................................8-9
Contract Hierarchy - Schematic Display.............................................................................................................8-10
Tenant Rental and Availability ...........................................................................................................................8-11
Relationship Between Availability and Tenant Rental .......................................................................................8-12
Tenant Rental Overview .....................................................................................................................................8-13
General Contract Overview.................................................................................................................................8-14
General Contract & Rental Agreement - Differences .........................................................................................8-15
General Contract: Unit Summary........................................................................................................................8-16
General Contract Exercises .................................................................................................................................8-17
General Contract Solutions .................................................................................................................................8-19
Controlling ................................................................................................................................................................9-1
Controlling: Unit Objectives .................................................................................................................................9-2
Course Overview...................................................................................................................................................9-3
Controlling: Business Scenario .............................................................................................................................9-4
CO Objects in Real Estate Management ...............................................................................................................9-5
Planning ................................................................................................................................................................9-6
Direct Actual Posting ............................................................................................................................................9-7
Direct Internal Activity Allocation .......................................................................................................................9-8
Settlement .............................................................................................................................................................9-9
Real Estate Controlling - Overview ....................................................................................................................9-10
Real Estate Profit Center (PC) ............................................................................................................................9-11
Controlling Reports.............................................................................................................................................9-12
Controlling: Unit Summary.................................................................................................................................9-13
Controlling Exercises ..........................................................................................................................................9-14
Controlling Solutions ..........................................................................................................................................9-16
Integration ...............................................................................................................................................................10-1
Integration: Unit Objectives................................................................................................................................10-2
Course Overview.................................................................................................................................................10-3
Integration: Business Scenario ............................................................................................................................10-4
Link to Master Data ............................................................................................................................................10-5
Functional Process in PM System.......................................................................................................................10-6
Plant Maintenance (RE PM) ...........................................................................................................................10-7
Relationship Between RE Master Data and PM..................................................................................................10-8
Project System Integration (RE PS)................................................................................................................10-9
Asset Accounting Integration (RE AA) .......................................................................................................10-10
Continuous Process: From MM to FI................................................................................................................10-11
Integrated Reporting .........................................................................................................................................10-12
Integration Reports............................................................................................................................................10-13
Integration: Unit Summary ...............................................................................................................................10-14
Integration Exercises.........................................................................................................................................10-15
Integration Solutions .........................................................................................................................................10-16
Taxes.......................................................................................................................................................................11-1
Taxes: Unit Objectives........................................................................................................................................11-2
Course Overview.................................................................................................................................................11-3
Taxes: Business Scenario....................................................................................................................................11-4
Debit Position for Rentals Liable for Sales Tax (Output Tax) - Planned Principle.............................................11-5
Debit Position and Incoming Payment for Rental Liable to Tax - Planned Principle .........................................11-6
Debit Position for Rental Liable to Tax (Output Tax) - Actual Principle ...........................................................11-7
Debit Position and Incoming Payment for Rental Liable to Tax - Actual Principle ...........................................11-8
Option Tax - Input Tax .......................................................................................................................................11-9
Input Tax Treatment (Specific to Germany) .....................................................................................................11-10
Input Tax Treatment Steps ................................................................................................................................11-11
Tax Breakdown - Controlling the Postings .......................................................................................................11-12
Input Tax Distribution Adjustment by Service Charge Settlement ...................................................................11-13
Tax Reports .......................................................................................................................................................11-14
Taxes: Unit Summary .......................................................................................................................................11-15
Cross-Application Functions...................................................................................................................................12-1
Cross-Application Functions Unit Objectives.....................................................................................................12-2
Course Overview.................................................................................................................................................12-3
Cross-Application Functions: Business Scenario................................................................................................12-4
Workflow ............................................................................................................................................................12-5
Workflow - Editor...............................................................................................................................................12-6
ASAP for RE.......................................................................................................................................................12-7
Process ................................................................................................................................................................12-8
Archiving ............................................................................................................................................................12-9
Validation and Substitution...............................................................................................................................12-10
Document Management/Optical Archive..........................................................................................................12-11
Authorizations...................................................................................................................................................12-12
Cross-Application Functions: Unit Summary ...................................................................................................12-13
Appendix.................................................................................................................................................................13-1
Appendix Overview ............................................................................................................................................13-2
Accounts Used in Standard System ....................................................................................................................13-3
IMG Functions ....................................................................................................................................................13-4
Deferral: Rents Paid in Advance.........................................................................................................................13-5
Accrual: Rent Paid in Arrears .............................................................................................................................13-6
Cash Deposit .......................................................................................................................................................13-7
Posting Activities - Own Usage (1).....................................................................................................................13-8
Posting Activities - Own Usage (1a)...................................................................................................................13-9
Posting Activities - Own Usage (2)...................................................................................................................13-10
Posting Activities - Own Usage (3)...................................................................................................................13-11
Posting Activities - Own Usage (4)...................................................................................................................13-12
Account Assignments of the Posting Activities ................................................................................................13-13
SCS Account Determination Own Usage .........................................................................................................13-14
Periodic Tasks ...................................................................................................................................................13-15
AC290 Real Estate Management

AC290
AC

Real Estate Management


© SAP AG 1999
© SAP AG

R/3 System
Release 4.6B
Status: December 1999
Material number: 5003 6322
Copyright

Copyright 2000 SAP AG. All rights reserved.


Neither this training manual nor any part thereof may
be copied or reproduced in any form or by any means,
or translated into another language, without the prior
consent of SAP AG. The information contained in this
document is subject to change and supplement without prior
notice.

All rights reserved.

© SAP AG 1999

Trademarks:
Some software products marketed by SAP AG and its distributors contain proprietary software
components of other software vendors.
Microsoft®, WINDOWS®, NT®, EXCEL®, Word® and SQL Server® are registered trademarks of
Microsoft Corporation.
IBM®, DB2®, OS/2®, DB2/6000®, Parallel Sysplex®, MVS/ESA®, RS/6000®, AIX®, S/390®,
AS/400®, OS/390®, and OS/400® are registered trademarks of IBM Corporation.
ORACLE® is a registered trademark of ORACLE Corporation, California, USA.
INFORMIX®-OnLine for SAP and Informix® Dynamic ServerTM are registered trademarks of
Informix Software Incorporated.
UNIX®, X/Open®, OSF/1®, and Motif® are registered trademarks of The Open Group.
HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C®, World Wide Web
Consortium, Laboratory for Computer Science NE43-358, Massachusetts Institute of Technology, 545
Technology Square, Cambridge, MA 02139.
JAVA® is a registered trademark of Sun Microsystems, Inc. , 901 San Antonio Road, Palo Alto, CA
94303 USA.
JAVASCRIPT® is a registered trademark of Sun Microsystems, Inc., used under license for technology
invented and implemented by Netscape.
SAP, SAP Logo, mySAP.com, mySAP.com Marketplace, mySAP.com Workplace, mySAP.com
Business Scenarios, mySAP.com Application Hosting, WebFlow, R/2, R/3, RIVA, ABAP™, SAP
Business Workflow, SAP EarlyWatch, SAP ArchiveLink, BAPI, SAPPHIRE, Management Cockpit,
SEM, are trademarks or registered trademarks of SAP AG in Germany and in several other countries all
over the world. All other products mentioned are trademarks or registered trademarks of their respective
companies.
Design: SAP Communications Media
Financial Accounting I

Level 2 AC200 3 days Level 3 AC205 2 days


General Ledger/ Financial Closing
Accounts Payable/
Accounts Receivable
Configuration AC260 1 day
AC010 5 days Additional Financial
Functionality
Financial Accounting and
Reporting
AC201 2 days
Periodic Processing in
@AC200a 2h Accounts Payable/
@AC010a 1h
Change Vendor Interest Accounts Receivable
Calculation of
or Customer
Master Data via @
open and/or
cleared items @ @ACxxxx xh
Internet
AC305 4 days
more
e-learnings @
HR051 1 day Asset Accounting
Human Resources
Essentials I
AC220 5 days
HR052 2 days Special Purpose Ledger
Human Resources AC270 3 days AC275 2 days
Essentials II Travel Management Travel Management
Travel Expenses Travel Planning
© SAP AG 1999
Course Prerequisites

MINIMUM REQUIREMENTS:
AC010 Financial Accounting and
Reporting
RECOMMENDED:
AC200 Accounts Payable/Receivable
AC040 Cost Management and Controlling

© SAP AG 1999

Note: If you intend to use the FI-AA, EC-PCA, PM or PS components, we recommend


attending these courses as well.
Target Group

Participants
Project team responsible for the implementation of the SAP
Real Estate Management component

Duration: 5 days

© SAP AG 1999

Notes to the user


The training materials are not teach-yourself programs. They complement the course instructor's
explanations. There is space for you to write down additional information on the sheets.
Contents

Course Goals
Course Objective(s)
Course Content
Course Overview Diagram
Main Business Scenario
Course Introduction

© SAP AG 1999
Course Objectives

This course instructs you about the


functions of SAP Real Estate Management
and how to manage your real estate
portfolio.
The integration with other applications is
also explained.
You will also learn how to make basic
system settings.

© SAP AG 1999
Course Objective(s)

At the conclusion of this course, you will be


able to describe:
Master data
Rental
Rental agreement management
Correspondence
Rental accounting
Operating and heating expenses settlement
Rent adjustment
General contract (tenant rental)
Integration (FI-AA, EC-PCA, CO, PM, PS)
Information system
Customizing
© SAP AG 1999
Course Content

Introduction

Unit 1 Master Data Unit 8 General Contract


(Tenant Rental)
Unit 2 Rental
Unit 9 Controlling
Unit 3 Correspondence
Unit 10 Integration
Unit 4 Rental Accounting Asset Accounting/
Plant Maintenance/
Unit 5 Rent Adjustment Project System
Unit 6 Service Charge Settlement Unit 11 Taxes
Unit 7 Sales-Based Rent Unit 12 Cross-Application
Settlement Functions
Appendix
Exercises
Solutions
© SAP AG 1999
Course Overview

Master Data

General
Rental
Contract
(Tenant Rental)
Rental Accounting Settlement

Rent Adjustment
Correspondence Cross-
Application
Functions
Controlling § Taxes
Information
Integration System

© SAP AG 1999

You use the R/3 Real Estate Management component to manage your real estate portfolio, incorporating
integrated processes.
The main functions involve entering data for, managing and controlling tasks that involve revenues and
handling the business processes related to rentals and settlements:
Rental, application management, offers
Rent collection, payment transactions, dunning
Rent adjustment
Service charge settlement
Tenant rental agreement
Controlling
Main Business Scenario

The IDES company manages real estate


IDES implements the R/3 System
You are a member of the implementation team
You map the following business processes
Rental
Rent collection, payment transactions, dunning
Rent adjustment
Service charge settlement
Management contract and owner settlement

© SAP AG 1999
Integration of Real Estate Management in R/3

Co
s
R •Imputed costs ts
en ts (vacancy)
se
tb •Profit center
oo •Payment (FI)
k As •Dunning (FI) •Cost and revenue planning
•Depreciation(FI-AA) •CO settlement
•Internal activity assignment

Real Estate Management


•Planning, budgeting
and control
of investments
•Plant maintenance and construction
•Malfunction reports projects
•Purchase orders
•External services (maintenance,
•Internal services redecoration, Ne
ce

renovation, w
an

•Material master bu
modernization)
en

•Service specifications ild


in
nt

g
ai
M

© SAP AG 1999

SAP Real Estate Management is fully integrated with the Financial Accounting and Controlling
application components in the R/3 System. You need to install these components to be able to use Real
Estate Management.
The basic configuration can be extended according to your requirements; in particular Profit Center
Accounting, Plant Maintenance, Project System, Asset Accounting and Materials Management are
closely linked to Real Estate Management.
Course Material and Additional Information

A Application is described C Customizing is described


in the application documentation in the Implementation Guide (IMG)

Create a rental agreement What numbers are assigned to


the rental agreements?

Post service charges Which service charge keys are


permitted?

Make a settlement To which accounts are the


settlement results posted?

Menu: Menu:
Accounting Tools
Real Estate Management Business Engineer
Customizing

© SAP AG 1999

This graphic shows the difference between the application and Customizing.
Tips and Tricks

When the hourglass is displayed


Create Session (4.5)
Stop Transaction (4.5)

Click here

© SAP AG 1999
Help! Emergency!

Error scenario Solution

Long text error message


1. Online documentation

2. Implementation
Guide (IMG)

3. Online Service System:


Search for note

Online Service System:


4. Error message

© SAP AG 1999
Checklist for Online Service System Messages

Concise short text


Long text:
How did I get here? (menu path, transaction, report)
What has gone wrong?
Where was I? (System? Client? Company code? Rental agreement?
Object? Report variant? Spool number for saved dumps or lists?)
Are there similar cases? Does the error only occur in certain cases?
What is the error message?
Release (for 4.0A and later Releases, system status. Use transaction FZ04 for
Releases prior to 4.0A)
Assign application area: Real Estate from 1st half 2000 RE* (before that IS-RE*)
Priority:
Very high: System breakdown (live system, critical project phase)
High: Breakdown of important applications
Middle: Breakdown of individual programs, less important problems
Low: Interface, documentation,...
If necessary:
Can we log on to your system?
Client? User? Password?

© SAP AG 1999

SAP defines priorities as follows:


Very high:
Breakdown of a live system or a system that is going live and is in a critical project phase
High:
Breakdown of important applications, subprograms, live system or a system that is going live
Middle:
The system is still working. A transaction or a program does not work (causing problems without
severe consequences)
Low:
User interface, documentation or requests for information
Master Data

Contents:
Object data
Partner data
Customizing
Introduction to Information System

© SAP AG 1999

(C) SAP AG AC290 1-1


Master Data: Unit Objectives

At the conclusion of this unit, you will be able


to:
List the master data used
Explain the relationship between the
individual master data objects
Explain the effect of the usage type of a
rental unit
Explain the concept of the business partner

© SAP AG 1999

(C) SAP AG AC290 1-2


Course Overview / Master Data

Master Data

General
Rental
Contract
(Tenant Rental)
Rental Accounting Settlement

Rent Adjustment
Correspondence Cross-
Application
Functions
Controlling § Taxes
Information
Integration System

© SAP AG 1999

(C) SAP AG AC290 1-3


Master Data: Business Scenario

You create the master data that is essential for


the rental and settlement processes

© SAP AG 1999

(C) SAP AG AC290 1-4


R/3 Organizational Structures

The following organizational elements are


used to portray the business processes of
external and internal accounting that are
relevant for Real Estate Management:
Company code
Business area
Controlling area

Each of these elements belongs to the client.

© SAP AG 1999

The R/3 organizational structures such as company code, business area and controlling area are defined
in FI or CO and not in Real Estate Management.

(C) SAP AG AC290 1-5


Overview of Organizational Structure

Controlling Controlling
area 1 area 2
Company code

Cost centers

Profit center

Business areas

© SAP AG 1999

The organizational structures of internal and external accounting are subject to dependencies on each
other as shown in the above graphic.
Note:
More than one company code can belong to a controlling area.
Business areas are independent of company code and controlling area.

(C) SAP AG AC290 1-6


Master Data of Real Estate Objects

Company code

Business entity

Property Building

Land Rooms
register
Rental unit Rental unit

© SAP AG 1999

The most superior element in the hierarchy of Real Estate objects is the business entity. The business entity is
assigned uniquely to a company code. The business entity comprises Real Estate objects that are handled in the
same way. The business entity is usually made up of a group of buildings and properties sharing the same utilities
and subject to the same tax regulations.
The number of buildings and/or properties belonging to a business entity are unlimited. The assignment of numbers
to buildings and properties is only unique within the business entity itself (for internal number assignment). You
can create a hierarchy of buildings (for instance one building part for each floor).
The rental unit represents the object that can be rented (buildings, properties, rooms and business entities
CANNOT be rented). The number assignment of rental units is unique within the business entity. Rental units can
be assigned to buildings or properties. The usage type is used to differentiate between rental units.
You can assign rental units to any building, including the higher-level ones in the hierarchy. However, we
recommend that you only assign rental units to the lowest level in the hierarchy as this helps to maintain a clear
overview.
You can keep a list of rooms available in a building. All rooms except common rooms can be assigned to rental
units.
"Property in R/3 Real Estate refers to the land only and not the buildings on it. Land register data can be compiles
for the properties.
Rental units with internal usage type 04 and 05 (parking spaces) do not have to be assigned to a property or a
building.

(C) SAP AG AC290 1-7


Master Data (Organizational Structures)
Relationship to Related Applications

Adr BusAr PC CCtr Asset FL/WBS

BE x x x x

PR/BU x x x x x
Vacancy
RU x x x x x
Own
RA usage
x x x
Adr Address
x Attribute maintenance of objects possible BusAr
PC
Business area
Profit center
CCtr Cost center
FL Functional location
LOGICAL inheritance: If no entry is maintained for an object that is WBS Work breakdown structure
a lower-level object in the hierarchy, the entry for the higher-level object is BE Business entity
taken for evaluation PR Property
BU Building
PHYSICAL copying: If an entry is not explicitly made, the entry for the higher- RU Rental unit
RA Rental agreement
level object is taken

© SAP AG 1999

You can reduce master data maintenance with the logical inheritance. Logically inherited attributes do
not have to be maintained for lower-level objects. We do not recommend individually maintaining the
same attributes since this means that all changes must also be maintained individually. This could result
in data inconsistency.
Physical copying is only possible when you create objects. If entries belonging to higher-level objects
are changed at a later date, the lower-level object is not changed.

(C) SAP AG AC290 1-8


Relationship Between RE Master Data and PM

Assignment of functional locations to Real Estate


objects
Business entity
Property
Building
Rental unit
Options
Assignments may be made but are not automatically
updated
Functional location is created automatically
Functional location is created and updated automatically
It is possible to restrict the assignment to 1:1 for each
object type
© SAP AG 1999

The assignment of Real Estate objects (business entity, property, building and rental unit) to functional
locations can be restricted to a 1:1 relationship for each object type. Every time you assign a functional
location to a Real Estate object, the system checks to see if a relationship already exists between this
functional location and another Real Estate object.
It is still possible to create functional locations for Real Estate objects automatically. You may specify if
the system should simply create and assign a functional location or if it should be updated each time the
Real Estate object is changed. Example: If you choose to make automatic assignments, the system takes
account of the Real Estate object hierarchy; this means that the functional location hierarchy is adapted
accordingly; if you now change the assignment of a building or you change the building hierarchy itself,
the functional location hierarchy is updated automatically.
Menu path in Customizing: Real Estate → Basic Settings → Set Link to Plant Maintenance →
Determine Link
See also the unit on Integration.

(C) SAP AG AC290 1-9


Availability

Time-dependent attributes that describe


the availability

Objects: In own portfolio


Business entity Tenant-rented
Building Not available
Property Partly unavailable
Rental unit
Available

3 2 1

© SAP AG 1999

You can display and change the availability of Real Estate objects (business entity, building, property,
rental unit).
Note how availability affects the rental function: you can only rent objects with status "In own
portfolio", "Tenant-rented" or "Available". You cannot rent objects that are "Not available" or "Partly
unavailable".
See also the unit on "General Contract - Tenant Rental".

(C) SAP AG AC290 1-10


Rental Unit

Usage Type (controls field status)


Description Building
Address Property
Notes Location on floor

Owner
Fixt.&
Fixt.& Fittings
Partner Scale 1:75 Living
Rooms
room

Bed-
Nursery
room
Conditions
Areas
Rental unit

Apportionment Status
units Occupancy type
Vacancy reasons
Meters

© SAP AG 1999

The rental unit represents the object that can be rented. It is the basis for concluding the rental
agreement. A rental unit cannot be assigned to a building and a property at the same time.
You must specify the usage type when you create a rental unit. Usage types can be customized and they
always refer to a usage category: "commercial", "residential" or "mixed usage".
The usage type specifies which screens and fields must/can be maintained for the rental unit. (Field
status control)
The usage type can specify which area types are permitted and those that are obligatory.
The usage type specifies whether a particular rental unit participates in the service charge settlement or
not.
The "category" of the usage type (commercial, residential, mixed usage) specifies the adjustment types
and rental agreement types that are permitted for the contracts of this rental unit.
You can create notes for the rental unit. You can also use the "Send object with note" function for rental
units, as for all other master data objects (see also unit on "Cross-Application Functions".

(C) SAP AG AC290 1-11


Mass Change of Rental Units

Mass Change of Rental Units


Individual values (without default value)
RU1: Business area 1000
RU2: Business area 2000
RU3: Business area 3000

One universal value (with default value)


RU1: Business area 1000
RU2: Business area 1000
RU3: Business area 1000

© SAP AG 1999

Mass change allows you to change existing values and maintain new ones for a select group of rental
units.
If there are already values for the field that you want to maintain by mass change, these values are pre-
assigned to the processing list where you can modify them.
In this case, we recommend working without default values as these default values would be used for
pre-assignment.
If you enter a default value, all entries are pre-assigned this value. If there are no values for the field, we
recommend using this method.

(C) SAP AG AC290 1-12


Partner Management

Roles:
Tenant
(private)

Organization Tenant
(com.)

Guarantor
Business partner
Natural
person

© SAP AG 1999

Business partners can be natural persons or organizations.


In an application, a partner always appears in the form of a partner role, for instance:
Caretaker of a building
Owner of a rental unit
Tenant of a rental agreement
If a partner already exists in the system with a partner role (for instance, caretaker) and you want to
assign another role to this partner (for instance, tenant with customer account), you do not create another
business partner but add the required role to the existing partner.
The partner roles must be assigned to the respective application area (rental unit, rental agreement,
building, and so on).

Example: Application Role


Rental unit Authorized occupant
Rental agreement Tenant with/without customer account
Land register Land registry
Owner management Owner

(C) SAP AG AC290 1-13


Partner Information

Role: Relationship to Relationship Addresses


applications between partners
Tenant of rental Spouse of ... Address types
agreement Shareholder ... Time-dependent
Caretaker of building assignment
Manager of BE
Owner of the owner
management Home address
until 03/31/96
Natural person
Business address

17 Church Street
Churchtown
Partner PA 12345
USA

Organization Home address


from 04/01/96

© SAP AG 1999

Roles are used to express the relationships of partners to objects. The system provides role categories
(for example, master tenant with customer account, tenant, owner). You can define more precise role
types for role categories (such as master tenant with customer account in shared apartment, master tenant
with customer account as married couple...).
Creating role types facilitates correspondence.
Each partner must have at least one address. You can use any address types such as home addresses or
business addresses. The assignment of addresses is time-dependent.
All the addresses stored in the system are filed in an address file to avoid duplicating entries.
You can define relationships between partners.

(C) SAP AG AC290 1-14


Customizing Master Data

C
Number ranges Pre-assigned description, interval is freely selectable

Central master data Customizing


Area types Reference areas private/commercial, SCS
Fixtures/fittings characteristics
User fields
User status Controls business activities
Conditions See following units
Attributes of individual objects (location, regional location ...)
External usage type
Field status control
Partner roles for each object type

© SAP AG 1999

Customizing settings are necessary for creating master data.


The attributes entered in the master data are checked against the corresponding Customizing tables.
Customizing settings needed for the individual master data objects are described in the Implementation
Guide.
Some master data attributes have a controlling effect on other business processes such as rent
adjustment.
Internal or external number ranges can be used. User exits on the basis of BTE (Business Transaction
Event) for assigning numbers for the following objects is also available: business entity, building,
property, rental unit (for rental agreement see the corresponding unit).
You can use user fields for all master data, including rental agreements. Other fields for business entity,
building, property, rental unit and rental agreement can be created in addition to the standard ones, for
which BTE can be used.
User exists are not considered to be a modification.

(C) SAP AG AC290 1-15


Customizing Partner Management

General data
- Address
Number range C
Business partner
- Legal form number
- Credit standing
- Relationships

Partner use Addresses


in individual - Default value
applications address ID

Customizing Partner

Default values
- Customer
account groups
Field status Extras - Field contents
control - For user-defined customer master
use record
Role view Notes
- Note categories
and use
© SAP AG 1999

Before creating partners, you have to define number ranges for business partners. You can also define a
default value for an address ID.
The system designates the partner role categories and the user cannot change these. You can
differentiate various role categories by creating role types.
You perform the field status control, and this is contingent on the role category.
You have to specify the applications to which role categories can be assigned. You could, for instance,
specify that data relative to clerks is only maintained on the business entity level and not on the building
level.
When you create a business partner and edit a field in the customer view, the system automatically
creates a customer. Example: The reconciliation account of the master tenant with customer account has
been designated a required field, and data is filled automatically or manually, which means that a
customer is created automatically. Customers existing in FI can be assigned to business partners.
You can create general partner attributes such as form of address, legal form of organization, credit
standing codes.
You can save texts containing additional information on partners under "Additional data" or under
general or role-dependent notes.

(C) SAP AG AC290 1-16


Master Data Reports

Master Data
Rental unit/rental agreement overview
Business partner
Land registers
Business entities
Properties
Buildings
Rental units
Areas by
Rental units
Properties (history)
Buildings (history)

© SAP AG 1999

Call up the following reports for maintained data:


Master Data/Agreements - Master Data - Rental Unit/Rental Agreement Overview
Master Data/Agreements - Master Data - Rental Units
Master Data/Agreements - Master Data - Business Partners (Roles)
Master Data/Agreements - Overviews - Areas - One Area Unit - Rental Units.

(C) SAP AG AC290 1-17


Sets for Real Estate Objects

SETS FOR REAL ESTATE OBJECTS


Let you use the same selection for different reports

Consist of a number of similar Real Estate objects

Can be created for the following object types:


Business entities
Properties
Buildings
Rental units
Rental agreements
Management contracts
Settlement units

© SAP AG 1999

Standard report selection uses report variants. It is not possible to use the same variant for different
reports as variants are always related to a particular report. This is particularly inconvenient in Real
Estate Management because the user often requires different reports for the same group of Real Estate
objects.
The set function lets you use your own selections as often as required.
Before executing a report, enter your data for the set in the selection screen of the report.
Sets are homogeneous, and thus only contain one type of Real Estate object.

(C) SAP AG AC290 1-18


List Structure

Key Figures

Characteristic

Business Basic rent Basic area


entity
Characteristic

Park Street $ 15,250 2,587 m²


attributes

Reid Square $ 20,780 3,547 m²

Church Place $ 48,435 5,456 m²

© SAP AG 1999

Reports evaluate a data set according to all the characteristics in the data description. Characteristics
preassign the classification possibilities of a data set.
The organizational structures such as company code, controlling area, the hierarchical structure of R/3
Real Estate Management (business entity, building or rental unit) are good examples of characteristics.
The characteristics form the report rows.
Any key figure can be used as a description for this inter-active reporting. Key figures are data needed
for evaluation. These can be quantities (number of vacancies during a certain period...), values (costs,
sales, revenue, condition amount) or calculations (contribution margin, sale per employee...). More than
one object can be displayed for a key figure and an object can have several key figures. The key figures
appear in the report columns.

(C) SAP AG AC290 1-19


Navigation

Report list
Office
Usage type

Occupancy
Garage

type
Vacant
Res.

Own usage
Third-party use
Park Reid Church
Street Square Place

Business entity
© SAP AG 1999

Convenient functions are available in the list for navigation such as:
Next step
Next object in a step
Hide a step
Detail list/drilldown list
You have additional functions for editing a list such as:
Sorting
Ranking
Parts of the data set are in the list. The parts listed are contingent on the drilldown sequence.
The drilldown sequence is in the list header.

(C) SAP AG AC290 1-20


Editing Reports

Word

Ex c
el

List Graphic Note Export


List

© SAP AG 1999

As well as the list functions (display settings etc.), you can also use the following diverse functions such
as:
Inserting a note for a report
Call up diverse graphics
Export and send reports

(C) SAP AG AC290 1-21


Master Data: Unit Summary

You are now able to describe:

Master data objects and how they relate to each


other
The effect of the usage type of a rental unit
The role concept of the business partner and
the relationship between application and roles.
The link between Real Estate master data and
other components (Example: Building to asset
(FI-AA))

© SAP AG 1999

(C) SAP AG AC290 1-22


Exercise Data
Key to Icons in Exercises and Solutions
Exercises

Solutions

Objectives

Business Scenario

Tips and Tricks

Warning or Caution

Note: There may not be sufficient time to work through all the exercises during the
course. The exercises should be considered as supplementary examples that can be
used as required and time permitting during the course. Participants can also use
these exercises after the course to consolidate what they have learned.
ONLY USE THE DATA YOU HAVE CREATED YOURSELF.
THANK YOU!

Data Used in Exercises


Type of Data Data in Training System
System Ask instructor
Client Ask instructor
## Your group number
User AC290-##
Password init
Company code 1000
Controlling area 1000

(C) SAP AG AC290 1-23


Business area 9900
Business entity 100 + ## = 1##
Building 1
Profit center 1410 RE APARTMENTS
1430 RE RETAIL
1450 RE OFFICES
1480 RE OTHERS

Business Scenario
You are an employee of the company IDES AG, company code 1000.
Your company owns real estate in Philadelphia consisting of offices
and apartments. Some of the rental objects are rented to third parties.
The rest of the objects are used by your own company. These objects
are rented internally to a cost center.
Profit Center Accounting is used.

(C) SAP AG AC290 1-24


Master Data Exercises

Unit: Master Data


Topic: Creating Master Data

At the conclusion of this exercise, you will be able to:


• Create or change master data in Real Estate Management
• Check the relationship of Real Estate objects to each other
• Create a business partner and assign the partner to your building
• Use the Information System for master data
Your company purchased property on January 1 of the previous calendar
year. Use the R/3 System to manage the property. The service charge
settlement is made once a year.
First of all, you have to create the master data.

1-1 Create Business entity 1## for your group. Enter your business area, tenancy law and
address.

1-2 Create a building for your business entity (there are no required-entry fields).

1-3 Create rental units for your business entity. Enter profit centers for your rental units.
1-3-1 Create a rental unit with usage type 01 for building 1. The apartment has 100
m², and the following conditions types have been arranged:
Basic rent
Air-conditioning
Advance payments for operating costs

(You can decide on the cost of each condition. The conditions come into effect
on January of the previous calendar year.)

Specify the conditions and the areas of the rental objects as well as the room
types available and the fixtures and fittings characteristics.
1-3-2 Create another rental unit with usage type 05. Specify a basic rent and a flat rate
for operating costs.
(C) SAP AG AC290 1-25
1-3-3 Create another rental unit with usage type 01 by using the "Copy from..."
function and copying the rental unit from 1-1-1.

1-4 Enter the area size for your building. The area of the building must be the same as the
total area size of your rental units.

1-5 Create a partner for your building with the role of caretaker.

1-6 Display the following report without restricting the business entities:
Master Data/Agreements - Master Data - Rental Unit/Rental Agreement Overview
1-6-1 Format the columns by double-clicking on them.
1-6-2 Use the Current display variant to delete all the fields apart from business
entity, rental unit and related texts, usage type and related texts, and rental unit
basic rent. Arrange the columns the way you want them.
1-6-3 Total the "Basic rent" field.
1-6-4 Sort according to the "Usage type" field.
1-6-5 Make sub-totals from the "Usage type" field.

1-7 (*) Send a note to yourself for one of your rental units (the user under which you are
logged on) Check the date in the send options.

1-8 (*) Change the name of your rental units with the "Mass change" function.

(C) SAP AG AC290 1-26


Master Data Solutions

Unit: 1 Master Data


Topic: Creating Master Data

General remarks:
You can call up a function in the following ways:
Pushbuttons
Menu functions
Shortcuts (F5, Shift+F8...)
If you position the cursor on the pushbutton, a "yellow box" appears with an explanatory text.
In this section, pushbuttons are in bold letters and menu paths are in italics.
Generally speaking, the paths are indicated in full. You do not normally have to return to the top
level.
The data you create for some of the exercises is sometimes used as a basis in the exercises that
follow.

1-1 Accounting → Real estate management → Master data → Objects → Business entity →
Create
Field name or Data type Values
Company code See "Exercise Data"
Business entity 1##

1-2 Accounting → Real estate management → Master data → Objects → Buildings/parts of


→ Create

1-3 Accounting → Real estate management → Master data → Objects → Rental unit →
Create
1-3-1 Enter the following data:
• Company code
• Business entity 1##
• Usage type (01)

(C) SAP AG AC290 1-27


The number of the rental unit is automatically assigned.
Use the profit center specified in the "Exercise Data".
Enter data for area, conditions, room types and fixtures and fittings under the
respective tab.
Enter a valid-from date for the conditions of 1/1 of the previous year.
Delete the condition types that are not required. To maintain other condition
types, use the Insert new condition type icon (for instance, air-conditioning).
Choose Display +, if necessary.
Enter data in the required-entry fields (for Fixtures and Fittings, these are
"Floor" and "Location in floor") and specify your fixtures and fittings
characteristics.
1-3-2 Create the data as in 1-3-1. Instead of an advance payment, use a flat rate for
the operating costs.
1-3-3 Use the Copy from... pushbutton
Change the area and the condition amounts.

1-4 Accounting → Real estate management → Master data → Objects → Buildings/parts


of → Change
Field name or Data type Values
Building 1

Areas tab

1-5 Accounting → Real estate management → Master data → Objects → Buildings/parts


of → Change

Field name or Data type Values


Building 1

Partner pushbutton
Then the Create partner pushbutton.
Choose the role of caretaker.
Enter your partner data, confirm it, choose the Person pushbutton and save.

You can also create partners as follows:


Accounting → Real estate management → Master data → Business
partner

(C) SAP AG AC290 1-28


1-6 Accounting → Real Estate Management → Information System → Master
Data/Agreements → Master Data
1-6-1 Position your cursor in the title line between two columns. You can format the
column to the best size by double-clicking. You can also change the width of
the columns.
1-6-2 Choose Current display variant. If you choose Hide all fields, you can
deselect all fields, sort them in the window on the right and then choose the
fields you require with Show selected fields to create the current display
variant.
1-6-3 Select the "RE basic rent" column and choose Display sum.
1-6-4 Select the "Usage type" column and choose Sort in ascending order.
1-6-5 Select the "Usage type" column and choose Subtotal.

1-7 Accounting → Real estate management → Master data → Objects → Rental unit →
Display
Confirm by pressing Enter.
Choose System → Workflow → Send object with note
Enter the recipient and check the transmission options.
Choose the Send icon. Return to the SAP menu and choose
Office → Workplace
Inbox → Unviewed documents
Branch to the document by double-clicking on the title.
Click on the attachment. The system calls up the rental unit that was sent.

1-8 Accounting → Real estate management → Tools → RU mass change


Choose the "Rental unit - Master data" table (VIMI01).
Choose the "Rental unit text" field (VIMI01-XMETXT).
Choose Execute and restrict the data records to be changed to your business entity.
Enter the news texts and save your entries.

(C) SAP AG AC290 1-29


Rental

Contents:
Rental application and offer
Rental agreement
Conditions
Tenant changeover
Tenant information

© SAP AG 1999

(C) SAP AG AC290 2-1


Rental: Unit Objectives

At the conclusion of this unit, you will be able


to:
List and describe the steps involved in the
rental process
Describe the roles of the business partner
during the rental process
Explain the difference between condition
types, condition groups and condition
categories

© SAP AG 1999

(C) SAP AG AC290 2-2


Course Overview

Master Data

General
Rental Contract
Tenant Rental

Rental Accounting Settlement

Rent Adjustment
Correspondence Cross-
Application
Functions
Controlling § Taxes
Information
Integration System

© SAP AG 1999

(C) SAP AG AC290 2-3


Rental: Business Scenario

You have a rental request and you want to


make an offer and draw up a rental agreement.
You have to define the conditions and the
notice rules.
The tenant calls to ask for information on a
rental agreement
The tenant gives notice on a rental agreement

© SAP AG 1999

(C) SAP AG AC290 2-4


Rental

Rental req. Correspondence


from/to $ List of vacant Rental offer
# Rooms rental units
# Persons Contract data Offer
Location Prices
List of rental Conditions
requests

Vac. RU Contract
Rooms Rntl agrmnt Signature
Location ...
Fixt.& fitt. Contract data
Prices Contract
Conditions Signature
xxx
Activate

© SAP AG 1999

The rental process begins with an application and then proceeds to the selection of a rental unit, an offer
and is completed when the rental agreement is concluded.
You use the Application function to enter applicant data and the rental request. The rental request
contains the usage type (such as office, retail, or apartment) and the details (such as number of rooms) of
the requested rental object.
Procedure:
- Create applicant or take the partner number of an existing partner (applicant)
- Create rental application (header data for a list of rental requests)
- Create one or more rental requests
You can use the selection program for matching up rental units (vacant or soon-to-be vacant) that meet
in part or in full the criteria in the rental request. You can then create offers from the list display. If you
use this method, applicant data is automatically transferred to the offer.
You can print offers and contracts using the Correspondence function. Refer to the unit on
Correspondence for additional information.
You have to activate the rental agreement when you have a legally valid (signed) contract. This ensures
that the system can begin creating debit positions (rent bills) for this rental agreement.

(C) SAP AG AC290 2-5


Partner Roles in the Rental Process

Application Application Offer RA Active RA


Partner role Applicant Applicant Tenant with Tenant with
cust.account cust.account

Comparison of Transfer Activate


vacant RU/ to contract Individually
rental requests Mass

© SAP AG 1999

The system can automatically transfer role categories between applications. Typical situation: when you
create a rental agreement from an offer, the partner is assigned the role of tenant with customer account.
The Customizing settings determine what data is transferred.
A third-party rental agreement can only be activated if a tenant with a customer account is available.
Effect of activating a rental agreement: an account assignment can be made on the rental agreement and
the rental agreement is taken into account in the debit position run (you have to enter the date of the first
debit position run).

(C) SAP AG AC290 2-6


Conditions in the Rental Process

Application Offer Rental Active rental


Rental agreement agreement
Conditions
request Conditions

Taken from:
Taken from:
•Rental unit
•Rental unit
•Offer
•Offer
•Reference offer
•Contract
•Rental agreement

© SAP AG 1999

The conditions of a rental agreement are transferred from the rental unit or the previous contract (setting
in Customizing). If an offer is transferred to a contract, the offer conditions are transferred as well.
The conditions of an offer are
- Transferred from the rental unit (RU) if there is no rental agreement (RA) before or on the date
given in the Rental start field. (Example: first RA for the RU with rental start 01/05/99, offer for
RU with rental start 01/01/99 => the conditions from the rental unit are transferred).
- Or, in other cases: transferred from the rental agreement that is valid before or on the date given in
the rental start field.
When you are making an offer by assigning rental requests to vacant rental units, a reference offer can
be used as a template. You identify an offer as a reference offer by setting the corresponding status in the
offer.
If you use the Change offer function, an offer can be directly transferred to a rental agreement.

(C) SAP AG AC290 2-7


Rental Agreement

Partners Settlement participation Status User fields Notes / Addit. text

Header data: Rental agreement number - Collective RA number - Business entity - Rental unit - Tenant

General data Payment data Conditions Rental collateral Apportionmnt units

Contract type Debit position Basic rent Deposit type Area 1


data
Adjustment Heating expenses Amount Area 2
type Pymt methods advance payment
Due date Persons
Contract Account Flat-rate
termination Bank procedure operating costs Intererest rate or
data interest reference
Tax Rent reduction
Renewal data treatment Place of deposit
Roomer subsidy
Dunning and
Contract term complaint data (Payment form,
frequency, taxes
per condition item
possible)

© SAP AG 1999

The graphic shows the key data of the rental agreement.


Rental agreements can only be created for rental units. You enter basic data such as the contract validity
period, adjustment type and period of notice in General data. Rental agreements for rental units must not
overlap in time.
You enter the rent amount in Conditions. You enter the adjustment data such as "graduated", "sales-
based" or "index-based" (for every condition type) depending on the adjustment type. Conditions can be
defined either as absolute figures or they can be based on area units.
Rental can either be external or internal. You define the type of rental in Payment data. If the rental
agreement is for internal use, you must enter the cost center that will be renting the unit. You also
specify information about payment methods, dunning procedures and tax treatment.
If the rental agreement is an external one, you must enter the main contractual partner with the partner
role "Master tenant with customer account". A customer account is created for this partner and all
relevant postings are made to it. The role category "Tenant" is suitable for entering data about other
people occupying the rental unit (tenant without a customer account...); this category is not used for the
main contractual partner as it is for partners without a customer account. Example: A rental agreement
has been made with the married couple, Mr and Mrs Smith. You must enter "Married couple Smith" as
the master tenant with customer account in the rental agreement. Husband and wife can be assigned the
role "tenant" for informational purposes or for the correspondence.

(C) SAP AG AC290 2-8


Contract-Specific Additional Data

Additional texts
Categories with default texts
Can be printed in the correspondence
In the info system ...
Notes
For internal use
Not generally available in correspondence
User fields
Can be printed in the correspondence
Can be evaluated in the info system ...

© SAP AG 1999

You can enter texts specific to a rental agreement (or offer) for the categories you have defined in
Customizing by choosing the menu option Extras -> Additional text. These texts could include details of
the tenant's obligations or additional provisions of a rental agreement.
You can print out the additional texts in the rental agreement or offer.
Apart from the categories defined in Customizing, you can also choose category 000 which contains
additional texts that were used in Releases up to and including 4.6A.
You can choose default texts for each category.
You can also enter notes for internal use. These are not generally available in the correspondence
function.
The user fields (including the customer add-ons) are available for the correspondence and information
system.

(C) SAP AG AC290 2-9


Number Assignment for Rental Agreements

C
Number range
with...

External number Internal number assignment


assignment (sequential numbers)

Manual entry by Automatic


user assignment

Customizing User exit using


number system BTE with any
(seq. BE, RU...) rules

© SAP AG 1999

You can make the number assignment internally or externally.


You can differentiate between a manual entry and an automatic assignment for external assignment.
You have 13 characters including separators available for a rental agreement number.

(C) SAP AG AC290 2-10


Collective Rental Agreement

Prerequisite:
All rental agreements in a collective rental agreement have
to share the same main contractual partner.

Individual agreements can have different contract periods


Incoming payments can be made to the collective rental agreement
Number/name of the collective rental agreement is freely selectable
(unique in the company code)
No account assignment object
(account assignment is still made to individual rental agreements)

Collective rental agreement number in the "Assignment" field of the document


(Customizing)
View in document/report:
3/0815.0001.001 C/4711.0001.001
Contract number: 0815.0001.001 Collective RA: 4711.0001.001

© SAP AG 1999

You can use the collective rental agreement (CRA) function to group together logically connected rental
agreements belonging to one main contractual partner. This simplifies the billing, debit positions,
incoming payments, payment blocks and reporting.
You can create or assign a CRA in one of the following ways:
When you create a new rental agreement, you can either
- Generate a new CRA, or
- Assign the contract an existing CRA

If you do not assign a number or a name in the CRA field, the CRA is assigned the number of the
original rental agreement.
You can generate a new CRA for a rental agreement when you are editing an existing RA by either
creating a new rental agreement or assigning an existing rental agreement.
In this case, the number of the collective rental agreement is the number of the original rental agreement.
You can directly assign existing rental agreements to a CRA.

Additional functions:
You can rename the collective rental agreement.
You can remove particular rental agreements from the CRA.

(C) SAP AG AC290 2-11


Condition Types

A
Rental unit Scale 1:75 Living
room

Bed- Rental agreement Rental agreement


Nursery room

Conditions
- Basic rent $1000
- AP Heating expenses $ 100 Conditions
- AP Operating costs $ 50 - Basic rent $1000
- AP Heating expenses $ 100
Object-related conditions - Flat-rate oper.costs $ 45
(conditions that maintained on the RU) - Surcharges
....
Subject-related conditions
(conditions that are maintained on the RA)

© SAP AG 1999

Condition types are needed for periodical postings in the debit position of rental agreements, rental units
and management contracts.
When you create a new rental agreement for a rental unit, the conditions already stipulated for the rental
unit or the conditions of the most recent active rental agreement are proposed by the system
(Customizing). In Customizing, you can also determine whether the conditions of a rental agreement are
transferred to the rental unit on termination of the rental agreement.
Condition types belong to condition groups that determine which conditions are permitted for each
application (rental unit, rental agreement, or management contract). Consequently, conditions that are
permitted for a rental agreement but not for one particular rental agreement are not, in this case,
transferred to the rental unit.
When you create a new rental agreement by accepting the offer, the conditions of the offer are the ones
that are used in the rental agreement.
For each condition you can specify: the amount, valid-from date, taxes, payment method, payment
frequency (quarterly...), payment form (advance, medium term or at end of period).
The conditions are time-dependent and can be transferred, changed and deleted.
You can enter remarks for each condition type in the rental agreement and offer (for instance, reasons for
change).
The system can translate the condition amounts into other currencies on a set date.

(C) SAP AG AC290 2-12


Notice

Noticegiven
Notice givenby
by
Rejection Reversal
landlord
landlord
Rental agreement

Correspondence

Notice given by Approval Activation


tenant

as per ...

Rental unit inspection

Release of rental deposit

Notice can be given on one single rental agreement or a large number

© SAP AG 1999

You use the tenant changeover function when you receive or give notice to terminate a rental agreement.
The system automatically checks the validity of the period of notice.
The notice reason contains a code to indicate whether the tenant or the landlord gave notice.
The rental unit is given a date as of when it will be available for rent. When you activate the notice, the
system status of the rental unit is VACANT from the day after the notice date up to the start of the next
rental agreement.
More than one notice can be given on a rental agreement since the notice may be withdrawn and
resubmitted at a later date.
Notice can only be given on an "active" rental agreement.
You have to activate the notice.
You can log the rental unit handover activity in the system.

(C) SAP AG AC290 2-13


Periods of Notice

Periods of notice
in rental agreement

Period regulation Deadline regulation

Reference to rule Specific rule in the Reference to rule Specific rule in the
in Customizing rental agreement in Customizing rental agreement

Period or deadline regulation is entered depending on the term of the


contract and the date on which the contract was received.

Periods Time up to date on Deadlines Date on which notice takes


which notice takes effect effect

© SAP AG 1999

You have the following options for creating notice rules on rental agreements:
Do not define a notice rule
Period regulation: for instance, notice at end of month with a three-month period of notice
Deadline regulation: for instance, notice on 30 June provided notice received by 1 April of same year
To create notice rules in Customizing, choose a name for the notice key and the contract type for which
the notice key applies.
For period regulations, you also have to enter the following data:
The type of period end (end of month, end of quarter, and so on): this is determined by "Number of
months" (yearly -> enter 12, per quarter -> enter 03, monthly -> enter 01,...)
The period (in months - 3 in this example - and, if required, in days)
The notice type "Period regulation" and the notice key in the rental agreement
For deadline regulations, you also have to enter the following data:
The date on which the notice was received and the date the notice takes effect, using the same notice
key for each deadline
The notice type "Deadline regulation" and the notice key in the rental agreement
For the deadline regulation, you can use relative values to signify the year (for instance "Receipt year"
blank, "Notice year" 1 => next year).

(C) SAP AG AC290 2-14


Changing Tenant with Customer Account in Active
Rental Agreements

Valid from:
System date
Tenant 1 Tenant 2

Transfer open items

© SAP AG 1999

You can change the master tenant with customer account without creating a new contract (in the case of
a divorce or death, for example). The change affects the existing rental agreement; in other words the
new tenant takes on all the rights and obligations of the contract.
However it is still necessary to create a new contract in the case of a real tenant changeover.
The system date is used as the date of change.
All the postings that are made after the change of master tenant are carried out in the new customer's
account.
When the tenant with customer account changes, you can transfer the new, unsettled items of the old
partner, especially those that cannot be settled such as advance payments for service charges, to the new
partner on a key date.
The service charge settlement only takes account of the items of the master tenant with customer account
on the date of the settlement. The system issues a reminder for any items that were overlooked by the
transfer posting.
The manual incoming payments and account maintenance transactions as well as the OI and balance lists
also display the old master tenants with customer account. On the other hand, automatic incoming
payment transactions (electronic account statement entry) only take account of the current master tenant.
The correspondence only takes account of the current master tenant.

(C) SAP AG AC290 2-15


Tenant Information

SEARCH BY DATA OTHER ACTIVITIES

Name Rental agreement Change RA

Birthday Pymnt/dunn.data Print RA

Address Partner/customer Tenant acct sheet

Rental agreement Rental unit Notice

Rent adjustment RU inspection

© SAP AG 1999

The tenant information transaction displays all data relevant to the tenant.
You can search for data with the following criteria:
Rental agreement number, name, date of birth, postal code, town, street, cost center (for own usage)
Apart from displaying data, you can also carry out the following activities:
Change rental agreement
Print rental agreement
Process notices
Create tenant account sheet
Simulate rent adjustment (representative list of rents, comparative group, index rent)
Rental unit inspection
Correspondence functions
Groups of conditions that are valid on a key date are displayed in the conditions overview screen. You
can also display the condition details.
There is also a screen to display miscellaneous data, such as technical details.

(C) SAP AG AC290 2-16


Rental Agreement Life Cycle

Create rental agreement


Change offer --> transfer to rental agreement
Create rental agreement
Change rental agreement
Activate
Change rental agreement
Change rental agreement - active agreements
Create a rental reduction
Change by rent adjustment runs (conditions)
Adjust advance payments
Change customer (new tenant enters existing rental agreement)
Tenant information
End of rental agreement
Notice/renewal of contract
Rental unit inspection
Release rental collateral

© SAP AG 1999

(C) SAP AG AC290 2-17


Customizing Rental Application and Offer

Number ranges for rental application and offer


Field selection
Permitted partner categories
Partner category-view assignment
Rules for transferring partners
From the rental application to the offer
From the offer to the rental agreement

© SAP AG 1999

(C) SAP AG AC290 2-18


Customizing Rental Agreement

Number range
Rules for creating rental agreement number
Conditions and account determination
Permitted partner categories
Field selection
Contract types
Adjustment types
Deposit types

© SAP AG 1999

(C) SAP AG AC290 2-19


Customizing Conditions

Condition
Condition C
category
category
Condition group Condition
Condition
category
category
Condition group
Condition
Condition
category
category
Example:
Rental unit
Rental agreement Condition type Example:
Management contract Basic rent
General contract Surcharges
Condition type Advance payments
Determine: Flat rates
Permitted condition types of Grouping for reporting
product type (rental unit,
offer, rental agreement, Condition type Determine:
management contract) Compatibility of condition
types
Number of conditions
Contract in a condition group

© SAP AG 1999

Three classifications are needed for customizing the condition types:


Condition type, condition group, condition category
Condition type
Appears as a condition on rental agreements, rental units and management contracts.
Condition group
Determines the condition types that can be used in rental agreements, rental units and management
contracts.
Condition category
Controls the number and compatibility of conditions (there are four ways of specifying the number of
conditions possible: exactly, minimum, maximum, one, any number. Example: exactly one condition
is permitted of "basic rent" category and any number of "surcharges" category). With regard to the
compatibility of conditions, you can prevent a rental agreement having a gross rent as well as service
charges.
There is no limit to the number of condition categories you create. There are five options for your
"internal condition category" entry: no entry, advance payment, flat rate, can be adjusted, grouping for
reporting (used for information system and tenant information).

(C) SAP AG AC290 2-20


Rental Reports

Vacancies
Period evaluation
Key date analysis according to
usage
Rental requests Key date analysis according to
Rental agreements usage (%)

Rental unit/rental agreement Key date analysis according to


overview reason for vacancy

Conditions Occupancy history according to


rental units
Rental agreements
Rental agreements
maximum/minimum conditions
Rental units/agreements per
area unit/apportionment unit

© SAP AG 1999

Call up the following reports for maintained data:


Master Data/Agreements - Master Data - Rental Unit/Rental Agreement Overview
Master Data/Agreements - Contracts - Rental Agreements
Master Data/Agreements - Overviews - Conditions - Rental Agreements
Master Data/Agreements - Overviews - Vacancies - Period Evaluation

(C) SAP AG AC290 2-21


Rental: Unit Summary

You are now able to:

List the stages of the rental process and


explain the relationship between rental
request, offer and rental agreement
Describe the roles of the business partner
during the rental process
Explain the two different types of notice
rules
Name typical condition types and
categories for rental agreements and
describe the relationship between
condition types, groups and categories
Describe the prerequisites for a collective
rental agreement

© SAP AG 1999

(C) SAP AG AC290 2-22


Rental: Exercises

Unit: Rental
Topic: Rental Request, Offer, Rental Agreement

At the conclusion of this exercise, you will be able to:


• Create a rental request
• Find suitable vacant rental units for a rental request
• Create an offer
• Create, print and activate a rental agreement
• Call up rental agreement reports in the Information System
• Give notice on a rental agreement and reverse the notice
Your company rents out the rental units you created in the exercises of
Unit 1 as of 1 January of the previous calendar year. Map the various
processes in the system starting from the application, through rental, to
giving notice on the rental agreement.

2-1 Create an application for your first rental unit.

2-2 Find a suitable rental unit for your application. Create an offer for rental unit 1.

2-3 Rental unit 1 is rented to the applicant from 1 January of the previous year. Create
and activate a rental agreement.

2-4 Rent your rental units 2 and 3 with rental start and activation date 1 February and 1
March respectively of the previous year. Choose contract type 2 and adjustment type 5.

2-5 Call up the following reports:


2-5-1 Master Data/Agreements - Overviews - Conditions - Rental Agreements
2-5-2 Master Data/Agreements - Overviews - Vacancies
2-5-3 Master Data/Agreements - Master Data - Rental Unit/Rental Agreement
Overview, and filter the report using the "Status" field by specifying the
"vacant" status.

(C) SAP AG AC290 2-23


2-5-4 Master Data/Agreements - Business Partners - Business Partner Analysis
Switch the breakdown to "Name", hide the business entity, building, property,
rental unit and rental agreement fields and display the fields that relate to the
address.

2-6 (*) Maintain a set for your business entity and call up the reports again using the set.

2-7 (*) The tenant of rental unit 2 gives notice on the rental agreement.
2-7-1 Enter and activate the notice.
2-7-2 Display the dates and status in the rental agreement.
2-7-3 How is the rental unit affected?
2-7-4 Reverse the notice.

(C) SAP AG AC290 2-24


Rental Solutions

Unit: Rental
Topic: Rental Request, Offer, Rental agreement

2-1 Accounting → Real estate management → Rental → Application → Private →


Create
Create a partner using Create applicant.
You can create an application (general data that is valid for several other rental
requests) or a rental request (specific data) with
Master data or New rental request.

In the screen "Create Private Application: Rental Request - Object", enter the following
data:

Field name or Data type Values


Company code See "Exercise Data"
Business entity 1##

2-2 Menu path: Accounting → Real estate management → Rental → Application →


Assign → Rental request → Search for rental request
Choose Find rental units (F8).
Select the rental unit required and create an offer using the Create offer pushbutton.

2-3 Create rental agreement.


1. Either create a new rental agreement (without an offer)
Accounting → Real estate management → Rental → Rental agreement → Create
2. Or transfer an offer to a rental agreement
Accounting → Real estate management → Rental → Offer → Change, convert to
RA
Enter the number of the offer that you want to transfer to the rental agreement.

(C) SAP AG AC290 2-25


Press the pushbutton Transfer to RA or choose
Offer → Transfer to RA.

Activate the rental agreement by following the path:


Accounting → Real estate management → Rental → Rental agreement → Change
→ Rental agreement master data
Enter RA number → ENTER button → Rental agreement → Activate and save
Or
Accounting → Real estate management → Rental → Rental agreement → Activate
→ Residential agreement

2-4 Create rental agreements for rental units 2 and 3 as described in solution 2-3 (1st
option).

2-5 Reports
2-5-1 Accounting → Real Estate Management → Info System → Master
Data/Agreements → Overviews → Conditions → Rental Agreements
2-5-2 Accounting → Real Estate Management → Info System → Master
Data/Agreements → Overviews → Vacancies → Period Evaluation
2-5-3 Accounting → Real Estate Management → Info System → Master
Data/Agreements → Master Data → Rental Unit/Rental Agreement Overview
Press Set filter and choose "Status", confirm and choose the "vacant" status.
2-5-4 Accounting → Real Estate Management → Info System → Master
Data/Agreements → Master Data → Business Partners → Business Partner
Analysis
Press Switch drilldown and choose "Name". Hide or display the fields by
pressing Choose key figures.

2-6 Choose a report. Press the pushbutton Selection via sets. Enter a name for the set and
choose Create new set. Enter a set description and choose Maintain set. Choose
Choose objects for set. Enter your business entity in the next selection screen and
choose Execute. Save your set.

You can now call up reports using this set. Proceed as follows: In the selection screen
of the report, choose Selection via sets. Enter the name of the set and press the Save
icon. You now return to a selection screen for the report where you can enter further
selections. Choose the Execute icon to call the report.

(C) SAP AG AC290 2-26


2-7 Giving notice on rental agreements

You can only reverse active rental agreements. Check that the rental
agreement you want to give notice on is active; and if not, activate it.

2-7-1 Accounting → Real estate management → Rental → Tenant changeover →


Notice on rental agreement
Enter the RA number and choose New notice.
Enter the notice data and activate the notice.
2-7-2 Accounting → Real estate management → Rental → Rental agreement →
Display
The notice date is transferred to the rental agreement. The status is VACANT.
2-7-3 The apartment is identified as being vacant as from the date of notice so that a
new rental can be made.
Display the occupancy type history:
Accounting → Real estate management → Master data → Objects → Rental
unit → Display
Under the General data tab, double-click on Occupancy type.
2-7-4 Accounting → Real estate management → Rental → Tenant changeover →
Notice on rental agreement
Choose Edit notice, confirm your entry and choose Reverse notice.

(C) SAP AG AC290 2-27


Correspondence

Contents:

Correspondence activities
Correspondence groups
Letters
Text modules

© SAP AG 1999

(C) SAP AG AC290 3-1


Correspondence: Unit Objectives

At the conclusion of this unit, you will be able


to:
Explain the procedures for creating letters
and
Describe the meaning and use of the
following terms:
Letter
Correspondence activity
Correspondence group

© SAP AG 1999

(C) SAP AG AC290 3-2


Course Overview

Master Data

General
Rental
Contract
(Tenant Rental)
Rental Accounting Settlement

Rent Adjustment
Correspondence Cross-
Application
Functions
Controlling § Taxes
Information
Integration System

© SAP AG 1999

(C) SAP AG AC290 3-3


Correspondence: Business Scenario

You want to send letters to business partners


related to an application such as a rental
agreement, rent adjustment or service charge
settlement.

© SAP AG 1999

(C) SAP AG AC290 3-4


Correspondence - Overview

Correspondence reports
for applications Print rental agreement Application

• Rental agreement Real Estate object selection


• Offer
• Service charge settlement Business entity 1 Application-
• Rent adjustment related
Rental unit 12
• Notice selection
• .... parameters

Application-related
data retrieval Additional
Print date 01/10/99 parameters
• Partner data
• Object data
• Contract data
• Adjustment data
• ...

© SAP AG 1999

The standard correspondence is written with SAPscript. It can be stored in archives.


You have a wide choice of reports that retrieve and print data for a specific correspondence application.
Refer to the report documentation to determine what data can be retrieved and printed.

(C) SAP AG AC290 3-5


Layout and Content

The layout
Page setup

Window for header


and footer
Window for
additional text

The content
Text module
Text / paragraph and
character format

© SAP AG 1999

(C) SAP AG AC290 3-6


Letter Layout in SAPscript

A letter consists of the following parts: Editing in the R/3 System:


Page setup Layout definition using transaction
A4, US letter, portrait, landscape... SE71 (editing forms):
Window for header and footer Texts that must appear in a certain
position, such as the letter header for
These can be positioned in any size and any place in the company code, should be inserted
the page setup. directly in the form. You do not have to
Additional text windows create separate text modules for the
letters in Customizing.
Any number of these can be positioned in any place
and can be any size in the page setup.

Text modules
Any number of these can be positioned in the window; a) You can specify paragraph and
Texts are language-dependent so that letters can be character formats using transaction
created in the language of the recipient; SE72 (editing styles).
Graphics such as your company logo can also be
b) Text formulations are made in RE
added;
Customizing;
You use program symbols in text modules to print
You select paragraph and character
data from the R/3 System (tenant name, address,
format by assigning a style.
rental agreement number and so on).

© SAP AG 1999

This graphic illustrates the structure of a letter in the R/3 System.


The RE correspondence is based on SAP's own word processing component SAPscript.
You use the SAPscript editor to create the text.
You can define company code-dependent texts for the headers and footers.

(C) SAP AG AC290 3-7


Correspondence Activities

Tenant
Letter A
Partner Contract
Correspondence +
activity = Letters

Correspondence
Guarantor
application
Letter B
Contract

Rental agreement

© SAP AG 1999

Correspondence activities are defined for individual applications.


A correspondence activity contains the following details:
The application in connection with which a correspondence partner is addressed
The partner to whom the correspondence is sent
The letters that the partner is to receive
Example: You want to send a rental agreement with accompanying letter and a collection authorization
form to the tenant. You also want to send a letter to the social welfare office at the same time to certify
the amount of rent paid.
You create correspondence activity "4711" with the following data:
Seq.no. Partner role Letter
1 Tenant RA accompanying letter
2 Tenant Rental agreement
3 Tenant Collection authorization
4 Soc.welf.office Certification of rent amount
For each correspondence application, you have to identify a default value for a correspondence activity.

(C) SAP AG AC290 3-8


Example of Correspondence Role Type Usage

Role category Role types for role category


Company
Master tenant with Master tenant, general
customer account Company
Managing director Married couple
Silent partner
Tenant Wife
Husband
Managing director
Silent partner

Correspondence activities can refer to role categories or role types

1000 Rental agreement for Role category


Master tenant with customer account

1100 Rent adjustment letter for Role types


Wife
Husband
Managing director
Silent partner
© SAP AG 1999

Correspondence activities can be defined for role categories or role types.


We recommend creating role types if you want to send letters in a role category to certain partners only
or if you want to send letters in certain specific cases only.
If you have created role types, the partners are always directly maintained in the Partner dialog box in
the role type and not in the role category. However, the system recognizes the partner role category
internally.
You can decide which partner (with role category or role type attributes) receives which letters by using
the correspondence activities.
If no partner exists for the contract with the role in the correspondence activity (for instance social
welfare office), no letter will be created.

(C) SAP AG AC290 3-9


Correspondence Group / Correspondence Activity

Correspondence group: an element used to structure groups of assignments


between correspondence applications and correspondence activities

The correspondence group lets you use


•Different correspondence activities for each contract type, as well as
•Different correspondence activities for each object
when you print correspondence.

Determining
Determiningthe
thecorrespondence
correspondenceactivity
activityfor
foreach
eachapplication
applicationobject
object

1. Search for correspondence group


a) Correspondence group assigned directly to contract or
b) Default correspondence group of contract type or
c) Empty correspondence group

2. Determine correspondence activity


a) Using correspondence group/application/activity assignment or
b) Default correspondence activity of correspondence application

© SAP AG 1999

Example of use of different correspondence group: you want to use a different correspondence group for
commercial rental agreeement xyz instead of the normal correspondence activity that is determined for
this contract type by the default correspondence group. You have to specify the different correspondence
group in the master data of rental agreement xyz.
If you want to print a correspondence activity, the procedure is as follows:
System searches for correspondence group directly assigned to the object (rental agreement), and if
one exists the correspondence activity is derived from it. If no correspondence group exists, the
default correspondence group of the contract type is used and the correspondence activity derived
from it. If there is also no default correspondence group of the contract type, the system tries to use the
correspondence activity assigned to the empty correspondence group. (Correspondence activity
always refers to respective correspondence application.)
If no data exists for the cases described above, the last selection criterion used is the default
correspondence activity of the correspondence application.
The correspondence group facilitates mass print. In previous releases you had to make detailed
selections to be able to use the required correspondence activities for the rental agreements.

(C) SAP AG AC290 3-10


Letters

C
Rental agreement
1. Detail: Letter attributes
Letter key consists of
Document group Tenant details
Letter name

Rental object details


Print report transfers the
data contained in the retrieval
report from the ABAP memory to Conditions
the form

Form for determining layout Signature

2. Assignment of text modules

© SAP AG 1999

You create the letters and text modules in Customizing.


The letter key comprises the document group and letter name. You have to use one of the standard
document groups, but you can assign any letter name.
The letters are made up of text modules that can be used in any letter. This makes it easier to maintain
data because frequently recurring phrases in the text modules can be capsuled.
You should note, however, that changes to a text module will affect all the letters in which it is used. A
tool is available in Customizing to find out where the text modules are used in letters.
SAP provides sample letters and sample text modules. You have to copy the templates from the delivery
client to the Customizing client.

(C) SAP AG AC290 3-11


Text Modules

C
1. Detail: Attributes 2. Editor: Text maintenance

Rental object
Text module name For rent ...
consisting of &VIRUADRS-STRAS(C)&
Name of text object in <G>&VIRUADRS-
Text name PSTLZ(C)&
&VIRUADRS-ORT01(C)&
Program with subroutine
that retrieves data for table output

Checkboxes
Selection indicator
Mandatory

STYLE FORM

© SAP AG 1999

The text modules for a letter are printed in the order of their sequence number. SAP supplies standard
text objects, but customers can also create additional ones.
If the "selection dialog box for text modules" indicator is set for a letter, when you start the print report
the system displays the permitted text modules and you choose the ones you require. Other indicators
can be set for each text module: "Print mandatory" and "Selection indicator". You have to use "Print
mandatory" if you always want to print this text module; the indicator is set in the selection dialog box
and you cannot enter any data. If the "Selection indicator" is set, selections for this text module are
preassigned in the selection dialog box, but they can be changed.
If the text module is to output a table with several lines, such as a list of the apartment's fixtures and
fittings characteristics or a list of conditions, a special form routine is required. You have to define the
name of the form routine to be used and the report name in Customizing.

(C) SAP AG AC290 3-12


Example: Correspondence

What do I do? What does the printout look like?

a) Select the text module for editing for the The printout for a selected
requested letter. rental agreement:

b) Specify the technical name of the


fields that can be printed (see below).

c) Enter the technical names of the text module


as follows:

Landlord Landlord

&VIBKADR-NAME1& IDES Holding Inc.


&VIBKADR-STRAS& Washington Square 25
&VIBKADR-PSTLZ& &VIBKADR-ORT01& New York, NY 10022
Tenant
Tenant
&MIETERADR-LINE0& Systems Inc
&MIETERADR-LINE1& Primrose Avenue 25
&MIETERADR-LINE2& New York, NY 10025
&MIETERADR-LINE3&

© SAP AG 1999

Selection of fields that can be printed (DDIC fields)


(You may have to change the setting of the editor to PC mode.)
1. In the text module editing mode, choose Include -> Symbols -> Program systems or (Ctrl + F3).
The system displays the assigned print programs for the specified form.
2. Select the print program (report) you require and press the DDIC field pushbutton.
The table structure of the report is displayed.
3. Double-click the table with the field you require. All the fields in the table are displayed.
4. Double-click the field you require to copy it to the text module.

Note: Not all the fields offered can be printed. To find out which fields can be printed, refer to the
documentation of the print program (you can display this in the selection screen of the print program by
choosing Help -> Application help).

(C) SAP AG AC290 3-13


Useful Functions

• LETTER OVERVIEW
Overview of all letters, from where you can branch to the
text module overview

Double-click in the text module overview to branch to the


SAPscript editor to process text modules

• TEXT MODULE WHERE-USED LIST


Double-click for a list of letters in which the text modules
are used

You can edit, copy, delete, or transport large numbers of


text modules simultaneously.

© SAP AG 1999

(C) SAP AG AC290 3-14


Overview of Terms Used in Correspondence

Document
The smallest unit of correspondence is generated by
executing a correspondence program in which
a letter and the corresponding layout template
are linked to application data
Example: Letter to Mr. Smith on rental agreement 1464.0001.001

Form
Defines a layout template; it can be assigned to
any number of letters
Example: SAPscript form „FVVI_WMVA“ is used as a layout template for rental agreement
letter

Letter
Element used to structure correspondence, consisting of a form, a print program
and x number of text modules
Example: Letter "SAP_RE-RT-RC012" for rental agreement letter with assigned form
"FVVI_WMVA" and print program "RFVIWA02" as well as several text modules

© SAP AG 1999

(C) SAP AG AC290 3-15


Overview of Terms Used in Correspondence

Correspondence activity
Determines on the basis of role/letter assignments
which documents have to be created for which business partners
Example: the following documents have to be created
with correspondence activity "commercial rental agreement"
To master tenant: - Letter with rental agreement
- Rental agreement
- Form for collection authorization
To service provider: - Information on new tenant

Correspondence group
An element used to structure groups of assignments
between correspondence applications and
correspondence activities

• Object-related selection of correspondence activities


• Default correspondence group for each contract type

© SAP AG 1999

(C) SAP AG AC290 3-16


Correspondence: Unit Summary

You are now able to describe:


The layout of a letter
A correspondence activity
A correspondence group and how to use it

© SAP AG 1999

(C) SAP AG AC290 3-17


Correspondence Exercises

Unit: Correspondence

At the conclusion of this exercise, you will be able to:


• Print the correspondence for a particular correspondence
activity

Print a rental agreement and a general letter. Create a spool


request for the rental agreement letter. Display the general letter
in the print preview directly after executing the print function.

3-1 Check the entries in your user profile. Enter the output device specified by your
instructor. Do not flag the "Output immediately" checkbox! Save your changes.

3-2 Print the correspondence for your rental agreement. The rental agreement was printed
as a spool request. Display the spool request.

3-3 Use the "More correspondence" function to print the general letter to the tenant
(correspondence activity 1001). The letter is displayed in the print preview.

3-4 (Optional) Check in Customizing why the system calls up the print preview function
for the general letter.

(C) SAP AG AC290 3-18


Correspondence Solutions

Unit: Correspondence

3-1 System - User profile - Own data - Defaults tab

3-2 SAP menu - Accounting - Real estate management - Rental - Rental agreement -
Display
Enter your rental agreement number and confirm with Enter.
Rental agreement - print
Optionally, you can print the rental agreement using "More correspondence".

3-3 SAP menu - Accounting - Real estate management - Rental - Rental agreement -
Display
Enter your rental agreement number and confirm with Enter.
Rental agreement - More correspondence
Select the line for correspondence activity 1001 and press the Print icon.

3-4 SAP menu - Tools - AcceleratedSAP - Customizing - Project Management

Choose SAP Reference IMG.


Implementation Guide for R/3 Customizing (IMG) – Real Estate – Correspondence –
Correspondence Groups and Correspondence Activities – Define Correspondence
Activities – Define Correspondence Activities

Select correspondence activity 1001 and choose Assign Partners and Letters.

The Print preview checkbox is selected.

(C) SAP AG AC290 3-19


Rental Accounting

Contents:
Debit position for third-party and owner usage
Debit position for vacancy
Account determination
Payment, dunning, account overview
CO objects - Real Estate Management

© SAP AG 1999

(C) SAP AG AC290 4-1


Rental Accounting: Unit Objectives

At the conclusion of this unit, you will be able


to:
Describe the relationship between conditions, flow
types, debit position (third-party usage, own
usage, vacancy) and automatic account
determination
Explain the difference between tenant with a
customer account, subsidizer and alternative
payer
List the options for manual and automatic
incoming payments
Describe the prerequisites for dunning and the
dunning process

© SAP AG 1999

(C) SAP AG AC290 4-2


Course Overview

Master Data

General
Rental Contract
(Tenant Rental)

Rental Settlement
Accounting

Rent Adjustment
Correspondence Cross-
Application
Functions
Controlling § Taxes
Information
Integration System

© SAP AG 1999

(C) SAP AG AC290 4-3


Rental Accounting: Business Scenario

You post a debit position for your rental


agreements and clear open items from tenants
using manual as well as automatic incoming
payments
You make a dunning run for the due items
You analyze the revenues on the rental
agreements in the information system

© SAP AG 1999

(C) SAP AG AC290 4-4


Integration of RE in FI

RE FI
R/3 Real Estate Management R/3 Financial Accounting

Rental accounting = Financial accounting


Tenant = Customer

• 1:1 relationship between tenant with customer


account and customer
• Open item accounting
• Items assigned to a contract
© SAP AG 1999

The rental accounting in R/3 Real Estate Management is fully integrated in R/3 Financial Accounting.
A tenant is defined as a customer. The relationship of a tenant with a customer account in the business
partner administration to a customer in FI is 1:1.
The R/3 Accounts Receivable is managed on an open item (OI) basis. If a tenant has several rental
agreements, all of them are kept on the same customer account.
The items are assigned to a contract.

(C) SAP AG AC290 4-5


Rental Accounting Processes

Debit position Vacancy debit position


Same for third party and own (imputed costs)
usage Automatic follow-up postings
Automatic follow-up postings for backdated changes
for backdated changes Automatic posting to
Automatic posting to Financial Accounting and
Financial Accounting and Cost Accounting
Cost Accounting

One-time postings

Incoming payments Account maintenance

© SAP AG 1999

You use the debit position, vacancy debit position and one-time posting processes to generate open
items. The debit position is also the basis for rental billing. You clear items with incoming payments or
account maintenance processes.

(C) SAP AG AC290 4-6


Partner with Customer Account

Normal case: Third-party usage Master tenant


Tenant with Master tenant customer account
with customer
customer account account
1000

Special case 1: Third-party usage Master tenant


Alternative payer Master tenant customer account
with customer
Affects all account
1000 Alternative payer
conditions +
Alternative in the document
100% payer

Master tenant Subsidizer


Special case 2: Third-party usage
customer account customer account
Subsidizer Master tenant
with customer
Per condition account
700 300
+
Percentage or Subsidizer

absolute share

© SAP AG 1999

In addition to the master tenant with a customer account, you can use other debit roles in the rental
agreement:
- Alternative payer, if 100% of the rent is paid by another business partner
- Subsidizer, if a part of the rent is paid by others
In the case of an alternative payer, you still post to the master tenant's account. For technical reasons,
you need to create a customer master record for the alternative payer. The address and bank data is
transferred automatically from this customer master record to the document.
If an alternative payer takes part in the bank collection procedure, the payment method you use for the
rental agreement must have the same Customizing settings as collection authorization. However, the
payment method chosen must be one that does not require the indicator Collection authorization in
connection with the bank details, as this indicator cannot be transferred to the document.
Subsidizers are always related to condition types. Always maintain the subsidizer's share in the
Conditions screen. Unlike the alternative payer where postings are made directly, no postings are made
directly to the subsidizer's customer account.

(C) SAP AG AC290 4-7


Debit Position Postings

Subledger General ledger

Reconciliation
Balance sheet
Customer Receivables Bank

account
(1) 500 (1) 500

account
P/L accounts

Basic rent revenue

500 (1)

Basic rent $500


© SAP AG 1999

Example: Posting the basic rent


Posting record 1:

Customer to basic rent revenue

The customer is in the subledger. At the same time, the general ledger assigns receivables to the
reconciliation account specified in the customer master record.

When you create a rental agreement, the cash flow is generated from the conditions.

(C) SAP AG AC290 4-8


Incoming Payment Postings

Subledger General ledger

Reconciliation
Balance sheet
Customer Receivables Bank

(2) 500

account
(1) 500 500 (2) (1) 500 500 (2)

account
P/L accounts

Basic rent revenue

500 (1)

Basic rent $500 Incoming payment $500


© SAP AG 1999

Example: Posting the basic rent


Posting record 1:

Customer to Basic rent revenue

Posting record 2:

Bank (cash receipt) to customer

The same applies here:

The customer is in the subledger. At the same time, the general ledger automatically assigns receivables
to the reconciliation account.
Incoming payments clear the open item.

(C) SAP AG AC290 4-9


Cash Flow
Follow-up posting ind. Plan/actual If ind. I
Receivable +
indictor => Debit pos. ID
Credit -

Due date Loc.curr.aTax Lcr FTyp R. Flow type name P Calc. from Debit pos. ID

02/01/1998 6900.00 900.00 UNI 1000 Basic rent I 28.02.1998 000000251999MVSO


02/01/1998 575.00 75.00 UNI 2000 AP Operating costs I 28.02.1998 000000251999MVSO
02/01/1998 345.00 45.00 UNI 2100 AP Heating expenses I 28.02.1998 000000251999MVSO
02/01/1998 115.00- 15.00- UNI 5001 Foll.-up posting.. I 28.02.1998 000004961999MVSO
03/01/1998 6900.00 900.00 UNI 1000 Basic rent P 31.03.1998
03/01/1998 575.00 75.00 UNI 2000 AP Operating costs P 31.03.1998

Click on the debit position


ID to branch to the
documents
ALV:
•Configures columns (to show/hide, define length)
•Sorts
•Filters
•Subtotals
•and so on

© SAP AG 1999

The cash flow forms the basis of the debit position and contains the planned records for the postings. If
you have entered conditions in the contract, the system generates a cash flow (payment plan) that
generates periodic planned records for the debit position postings for each condition type for a defined
number of years, depending on the settings made in Customizing. The planned records are identified by
a P. The planned records due in active rental agreements are posted with the debit position, and are thus
changed to actual records identified by an I.
When conditions on rental agreements are changed, the cash flow is changed accordingly. A date for the
necessary follow-up postings must be entered for active rental agreements (the current date is the default
value). When the next debit position, for which these items are due, is posted, these items are taken into
account.
You CANNOT ascertain from the cash flow if the items have been cleared. To do so, you have to refer
to the tenant's open items or tenant account sheet.
You can configure the list as you require. For instance, you can display only the flow type or also the
accounts.
The cash flow is generated up to the following date: Number of years defined in Customizing plus the
number of months up to the end of the half/full year as of the system date.
The cash flow has to be regenerated on a regular basis (at least every six months). The update is
generally done as a batch job.
The cash flow is also generated for rental units, the general contract and management contract.

(C) SAP AG AC290 4-10


Debit Position Reversal

Entire debit position


reverse in rental accounting
Individual documents from the debit position
reverse in Financial Accounting
If already cleared:
Reverse clearing beforehand
Effect: Adjustment of cash flow (actual positions
revert to planned positions)

Debit position reversal: Not usually required because...


... backdated condition changes are taken into account during the next
debit position. In any case, debit positions can be posted at any time.

© SAP AG 1999

(C) SAP AG AC290 4-11


Rental Units: Usage and Debit Position

Debit position for external usage

Activity Debit position Vacancy debit position

Rental agreement - Rental agreement - Vacancy


Condition
rented externally rented internally rental unit

Account: External
accounting view (FI) External Internal Vacancy
Posting record

Account assignment Customer Cost center Respons. cost center


object: Internal
Receivables
accounting view (CO)
500
Costs Revenue Imputed costs Imputed revenue
Account RA revenue Own usage Own usage Vacancy Vacancy
Account RA Cost center RU Respons. CCt. or RU Rental unit
Customer
assignment
object 500 500 500 500 500 500

© SAP AG 1999

Own usage: Rental agreements can be made with cost centers belonging to your own company
(company code) but this does not apply to external partners. Rental agreements for own usage do not
have a master tenant with customer account. The tenant in this case is a cost center in the company with
payment data defined in the rental agreement.
The same condition types (basic rent, advance payment operating costs and so on) are used. The debit
position postings for own usage are transferred to different accounts.
Posting is: Debit "Costs own usage" with auxiliary account assignment to the cost center that is
renting the rental unit
Credit "Revenue own usage" with auxialiary account assignment to the rental agreement
Vacancy: It is possible to post a vacancy debit position for rental units that are not rented.
Posting is: Debit “Imputed costs vacancy”
Credit “Imputed revenue vacancy”
The auxiliary account assignment for the revenue posting is the rental unit. A vacancy cost center that
must be defined by you in the rental unit is used as an auxiliary account assignment for the imputed
costs. If you do not maintain a vacancy cost center in the rental units, the imputed costs are assigned
directly to the rental unit.

(C) SAP AG AC290 4-12


Controlling (CO) View

Process RE account Account assignment


assignment object object in CO standard
External
rental Rental agreement Internal rental
One-time PC
postings
Cost center
PC
Vacancy debit Vacancy
Rental unit
position PC

Service charge Settlement unit


settlement PC
Business entity/
Purchase building/
orders/
property/
Invoices
for example for plant rental unit
maintenance, PC
invoices for service
charges

© SAP AG 1999

In Financial Accounting, you have to create a cost element for a cost account in Controlling.
If you post to cost accounts during a posting procedure, the corresponding cost elements are assigned at
the same time. This results in documents in both FI and CO.
The costs of internal rental are assigned to a cost center defined in the rental agreement. The (imputed)
vacancy costs are assigned to the rental unit; these may be assigned to a cost center if required; in this
case the cost center for vacancy has to be defined in the rental unit.

(C) SAP AG AC290 4-13


Account Determination Debit Position

With flow type and reference flow type C


Starting point:
The automatic postings of the debit positions are made using the condition types.
The condition types (basic rent, advance payment operating costs and so on) are
independent of usage (third-party usage, own usage, vacant).
Each usage type should have a different account.

Solution:
Each condition type refers to a flow type (Customizing).
The flow type determines the account determination.
If there is no third-party usage, the postings can be transferred to other accounts. The
original flow type is allocated a further flow type (reference flow type) using a
relationship key.

Remember!!
Condition type Flow type (Reference flow type) Account determination

© SAP AG 1999

The automatic postings of the debit positions are made using the condition types. Each condition type
refers to a flow type (Customizing).
Each flow type is assigned a posting scheme containing the document type, posting key and, if
necessary, the special G/L indicator and symbolic accounts.
The symbolic accounts are assigned a G/L account for each chart of accounts used.
The account symbol * is used for customer postings. Customer postings are posted to a customer account
(subsidiary ledger) with a customer posting key. At the same time, the receivables reconciliation
account, which is defined in the master data, is updated in the general ledger.
If you set the special G/L indicator, the system makes the posting to the special G/L account that is
assigned to this reconciliation account. (Specified in FI Customizing).
The account determination is contingent on:
- flow type
- partner membership to the corporate group (corporate indicator)
- main usage type of the object
- a fourth freely definable account assignment value (field in the rental unit/rental agreement).
"+" can be used as a wildcard character.
The main usage type is an attribute of the building or property to which the rental unit belongs and is
derived from the asset class if Asset Accounting data has been maintained.

(C) SAP AG AC290 4-14


Account Determination Debit Position - Procedure

With flow type and reference flow type


Condition type 10 basic rent (BR)
C
Starting situation
assign
Customizing
Condition type flow type 1000 basic rent, external (reference flow type) acct assgmt
Other influences on the account assignment:
main usage type, corporate group ID, 4th account assignment value
Maintain document type, posting key and account symbol

Activity Debit position Vacancy debit position

Rental agreement - Rental agreement - Rental unit -


Condition
rented externally rented internally vacant

Reference flow
None 1004 BR own usage 1003 BR vacancy
type
Account: External Vacancy
accounting view (FI)
External Internal
Posting record

Account assignment Customer Cost center Respons. cost center


object: Internal
Receivables
accounting view (CO)
500
Costs Revenue Imputed costs Imputed revenue
Account Customer RA
RA revenue
revenue Own usage Own usage Vacancy Vacancy
Customer Rental
RA Cost center RA Respons. CCt. or RU Rental unit
Assignment object
agreement
500 500 500 500 500 500

© SAP AG 1999

Own usage: The account assignment is made with a reference flow type that is assigned to the original
flow type. The debit position is thus transferred to other accounts.
Vacancy: As is the case with the account assignment for own usage, the vacancy account assignment is
made with one of the reference flow types assigned to the original flow type.
If no reference flow type is available for the vacancy, no posting is made.
Austria/tenant service charge settlement: Reference flow types have to exist for the advance payment
conditions of the service charges.

(C) SAP AG AC290 4-15


Account Determination Without Condition
Reference
Activity-related account determination

Realized by flow categories


→ automatic determination of the flow type

Example for overpayment


Flow category Flow type Account determination

3UAN 8000 Posting rule

Customer Receivable Incoming payment


1000 1000 1000 1000 1200
200 200

© SAP AG 1999

You can find several flow types for specific purposes in so-called flow categories.
Example: A tenant has an open receivable of $1,000, but makes a payment of $1,200. The open item has
to be cleared and the overpayment registered as a payment on account. The posting rules for the
overpayment are determined as follows:
A flow type is defined for flow category 3UAN, which has account determination rules.
In the case of overpayment, account determination rules for credit postings are required.
The flow type is determined via a flow category in the following cases:
- unqualified down payments
- underpayments
- installment agreements
- writing off bad debts
- cash deposits
- percentage surcharges for service charge settlements (as shown here)
- service charge settlements for internal usage (see Service Charge Settlement)
- tenant service charge settlement, Austria (Service Charge Settlement, see IMG)

(C) SAP AG AC290 4-16


Account Maintenance

Unqualified
Receivable
down payment (flow category 3UNT)
(flow category 3UAN)

Open Items

Installment payment Bad debts


(flow category 3RAT) (flow category 3UNB)

© SAP AG 1999

The account maintenance enables you to:


- Group open items together in one open item
- Group several unqualified down payments in one down payment amount
- Write off open items that cannot be collected as bad debts on an expense account
- Calculate an installment payment (according to number of installments or amount per installment)

The account determination is made with a flow type (activity-related account assignment without
condition reference).

(C) SAP AG AC290 4-17


One-Time Postings in Rental Agreements

A
Transaction: One-time postings

RE
Entries: C
• Document header
• Amount and tax Flow type for one-time postings
• Flow type Account determination
• Posting text

FI
Financial accounting generates document on
master tenant's customer account

© SAP AG 1999

With the one-time postings function, you can make account assignments directly to rental agreements.
The system generates the posting records based on the flow type entered at the time of postings.
You need to define the flow types as flow types for one-time postings; the flow type groups also have to
be maintained.

(C) SAP AG AC290 4-18


Account Determination: Application and Procedure

One-time posting Derived directly Flow type


Posting rules

Debit position Derived directly Flow type


Third-party usage from condition type Posting rules

Own usage, Derived indirectly Flow type +


from condition type process
Vacancy, Ref.flow type
Follow-up posting... Posting rules
Activity-related Derived from Flow category
flow category Flow type
postings
Posting rules
(installment payment,
overpayment...)
© SAP AG 1999

This graphic shows the various account determination procedures we have examined so far.

(C) SAP AG AC290 4-19


Reference Flow Types
C

Condition type Flow type Reference flow type

Activity Relationship key


• Own usage 039
• Follow-up postings
• backdated condition increase 002
• backdated condition reduction 032
• Vacancy 038
• Service charge settlement
• posting of settlement results 004
• credit from settlement (only own usage) 003
• Accruals
• deferred debits (rent paid in advance) 005
• deferred credits (rent paid in advance) 007
• accrued debits (rent paid in arrears) 006
• accrued credits (rent paid in arrears) 008
• Customer account postings in management contract 033

© SAP AG 1999

Reference flow types are used to determine alternative flow types that result from the original flow
types.
The reference flow types appear in the cash flow.
This graphic shows the individual relationship keys.

(C) SAP AG AC290 4-20


New Condition Type
C
Example
• Starting point:
•New condition type basic rent 10
• Activities to be taken into account:
•Third-party usage
•Own usage
•Vacancy

Required Flow Types:


Third-party usage Flow type Rel.key Ref.flow type
Flow type for basic rent (BR) 1000 - -
Follow-up posting BR (receivable) 1000 → 002 → 1001
Follow-up posting BR (credit) 1000 → 032 → 1002
Vacancy
Basic rent vacancy (BRV) 1000 → 038 → 1003
Follow-up posting BRV (receivable) 1003 → 002 → 1023
Follow-up posting BRV (credit) 1003 → 032 → 1033
Own usage
Basic rent own usage (BRO) 1000 → 039 → 1004
Follow-up posting BRO (receivable) 1004 → 002 → 1024
Follow-up posting BRO (credit) 1004 → 032 → 1034

In the case of advance payments, additional flow types are required (See
IMG documentation)
© SAP AG 1999

This example shows that a reference flow type can also be used as an original flow type.
Create a flow type appropriate for each condition type, even if these are for the same accounts as the
flow type determines the corresponding text in the cash flow and the debit position.
Brief description of how to create new condition types (including flow types and account determination):
Determine which flow types are required for the condition type.
Create flow type (including reference flow types for receivable and credit follow-up postings, own
usage and vacancy).
Assign reference flow types to flow types.
Specify account determination for flow types.
Create condition type and specify flow type.
Assign condition type from the appropriate condition group (for instance, rental agreement).
Assign condition type to a condition category.

(C) SAP AG AC290 4-21


Incoming Payments Processing

RE FI FI RE
Electronic
Manual Payment program
account statement
(e.g. cash payments) (collection)
transfer
Master data
Documents
Electronic
Selection via Parameters
account statement
rental agreement no.
Payment proposal
Evaluation according to
Individual entry Postprocessing
rental agreement nos.
Collective entry
Payment, posting
DME
Posting
Posting
Account statement,
handling of returns Postprocessing

FI FI standard functions

RE RE additional functions
© SAP AG 1999

There are several ways of processing incoming payments, some of which belong to FI and some of
which are additional functions specific to RE.
You have to differentiate between automatic and manual processing.
The automatic processes are subdivided in the payment program (for collection authorization ->
participation in debit memo procedure) and the electronic account statement entry ("bank transfers").
The R/3 System supports all current international standards for account statement formats, such as
MultiCash. It also supports the German bank procedure "BK01", which is a special form of real estate-
specific account statement.
The system assigns bank transfers to open items of customers with the electronic account statement entry
using various criteria. You can also specify if the system is to create residual items for underpayments or
make payments on account. If there is not enough information for an assignment, such documents are
collected on an account for rejected items and can be manually assigned later on.
The Customizing settings made for determining the sequence for clearing open items and residual items
or making payments on account apply equally for electronic account statement entry and for manual
incoming payments.
The system generates the data carrier needed to transfer debit memo information to the corresponding
house banks.

(C) SAP AG AC290 4-22


Payment Program - Collection Authorization
Principle of FI payment program
Payment method for line item
Payment method for customer master data
RE uses the FI functions
Scenario A: Collection authorization by customer
=> Do not define payment methods in rental agreement
=> Use payment methods in customer master record
Scenario B: Collection authorization by rental agreement
Define payment method in rental agreement
Payment method in rental agreement is adopted in document
The customer master record must not include "E".
Payment methods in FI
Total payment
Grouping payments, for instance using the rental agreement number
Individual payment of open items (indicator in customer master record) =>
DO NOT USE FOR CONDITIONS ETC.
© SAP AG 1999

If a payment method has been defined in the rental agreement or condition item, the debit position fills the payment
method in the line item.
Note that you should not use payment option "Individual payment of open items" for RE because with this method
not only a document but a bank posting is generated for each condition!
Also note the following, which often leads to errors:
You have to specify which items are payable for the special general ledger transactions. Special G/L
transactions are used particularly for advance payments on service charges (see section on Service Charge
Settlement).
The special G/L transactions have to be classified as A (down payment).

(C) SAP AG AC290 4-23


Dunning: Starting the FI Program

Basic Current
Master parameters control
parameters Documents
record

- Execution -

Processing

Dunning level
Dunning Dunning block
proposals
Sample printout

- Print -

Dunning Dunning
letters list

© SAP AG 1999

After the debit position run, the documents contain the following information relevant for the dunning
program: payment method, dunning area, dunning block if required, and contract number. The treatment
of documents is the same as in FI. Items subject to dunning are those that:
- Are due (or overdue)
- Do not have a dunning block
- Do not have an incoming payment method in the items or in the customer master record
- Have an incoming payment method but also have a payment block
The system uses the dunning form that you defined in Customizing (standard form) for the dunning area
and assigned dunning procedure.
Dunning letters are only sent to customers (standard FI procedure: does not apply for RE, see next slide)
You generally make your selections by customer accounts, but it is also possible to select customers by
Real Estate object (rental agreement, business entity, and so on). Alternatively, you can use the free
selection function and field name BSID-VERT to select only rental agreements. You can also use the
free selection function by rental agreements in the payment program. An additional log is created in the
dunning program as well as the payment program , which is a useful feature.

(C) SAP AG AC290 4-24


Dunning: Special RE Features

You can define partner roles as being additional


dunning recipients (with a specific dunning level)
The dunning level and date of last dunning is
updated in the rental agreement
Dunnable payment methods

Prerequisite: Dunning groupings by rental


agreement number

© SAP AG 1999

Special handling is used if there is a dunning grouping according to contract numbers in the
customer master record. This grouping must consist of the following fields in this order:
- Contract number VERTN length 13
- Contract type VERTT length 1
Special handling is applied as follows: Apart from those items that are dunned as a routine in FI, all
other items are dunned that:
- have a payment method in the item or in the customer master data that can be dunned
You must define in RE Customizing those payment methods that can be dunned.
If a tenant has several rental agreements with different levels, the dunning level of the customer is the
highest possible dunning level. The dunning levels are updated in the next dunning run.
Partners that are in the dunning program as well as customers can receive dunning letters.

(C) SAP AG AC290 4-25


Rental Accounting Reports

Rental accounting
Rent account
Open items list
Balance list
Incoming payment according to date
Open items for each business entity
Posting log

© SAP AG 1999

Call up the following reports to see what data is stored:


Master Data/Agreements - Contracts - Rental Accounting - Rental Account
Master Data/Agreements - Contracts - Rental Accounting - Open Items by Business Entity

With regard to the "Posting Log" report, you should note that it is possible to select by transaction code
(for instance, FOSA for rental accounting debit position) or by activity (for instance MVSO for debit
position).

(C) SAP AG AC290 4-26


Rental Accounting: Unit Summary

You are now able to:


Carry out the debit position
List the various options for making postings
List the options for incoming payments and
account maintenance
Describe the procedures used for account
determination
Describe the relationship between conditions,
flow types, reference flow types, debit
position and automatic account determination

© SAP AG 1999

(C) SAP AG AC290 4-27


Rental Accounting Exercises

Unit: Rental Accounting


Topic: Debit Position, Incoming Payments,
Vacancy Debit Position, Payment, Dunning, Rent
Reduction
At the conclusion of this exercise, you will be able to:
• Carry out a debit position
• Release Real Estate objects for account assignment
• Make a vacancy debit position
• Manually post an incoming payment
• Check the account information of your tenants
• Fix a rent reduction
• Make an automatic payment run and a dunning run
First create and activate rental agreements, then carry out the debit
position, which generates open items on the tenant accounts. You can run
a manual or an automatic incoming payment.

4-1 Simulate the debit position and make the debit position for your business entity for
January of the previous year.
Display the following:
Tenant account sheet
Tenant customer account
OI list
Posting log

Test the posting log functions.

4-2 The tenant pays the previous month's rent in cash.


4-2-1 Post the incoming payment (manual incoming payment),
account number 100.000.
4-2-2 Display the customer account or the tenant account sheet.

(C) SAP AG AC290 4-28


4-3 A limited rent reduction has been fixed with the tenant for February of the previous
year. Enter the rent reduction and then make a debit position for February of the
previous year.

4-4 Make a vacancy debit position for your business entity. First release your rental units
for account assignment.

4-5 (*) Make a dunning run and check that the dunning level has been updated in the rental
agreement and customer account.

4-6 (*) Enter an account for the tenant using collection authorization. Carry out an
automatic debit with the payment program (payment method E). Check before the
payment run that the tenant has open items and afterwards that they have been cleared.

(C) SAP AG AC290 4-29


Rental Accounting Solutions

Unit: Rental Accounting


Topic: Debit Position, Incoming Payments,
Vacancy Debit Position, Payment, Dunning, Rent
Reduction

4-1 Accounting → Real estate management → Rental accounting → Postings → RA


debit position → Simulate
Or
Accounting → Real estate management → Rental accounting → Postings → RA
debit position → Execute
Display tenant account sheet, customer account, open items list:
Accounting → Real estate management → Rental → Rental agreement → Display
Enter number of rental agreement and confirm.
Environment → Tenant account sheet or Tenant: open items or Display customer
account
Posting log:
Accounting → Real estate management → Rental accounting → Postings → Posting
log

4-2 Incoming payment


4-2-1 Accounting → Real estate management → Rental accounting → Incoming
payments/account maintenance → Individual document manual incoming
payment

Enter the date, account (100 000) and account assignment amount.

Choose Edit account. Choose Open items and select the required items in the
next screen or choose OI automatic allocation RA.
If the amount entered is either more or less than the open items, an advance
payment or a receivable has to be made.
4-2-2 See solution 4-1.

4-3 Accounting → Real estate management → Rental → Rental agreement → Change


→ Rent reduction
Enter the rental agreement number and confirm.

(C) SAP AG AC290 4-30


Double-click the condition type to be reduced (basic rent) and choose a rent reduction
condition type in the dialog box, confirm your entry and maintain the rent reduction in
the next screen.

Carry out the debit position as in 4-1.

4-4 Release rental units for account assignment (mass processing)


Accounting → Real estate management → Tools → Account assignment → Account
assignment release

Release objects for account assignment (single processing)


Accounting → Real estate management → Master data → Objects → Rental unit →
Change
Enter the rental unit number and confirm.

Choose Edit → Release

Vacancy debit position:


Accounting → Real estate management → Rental accounting → Postings →
Vacancy debit position → Execute

4-5 Accounting → Financial accounting → Accounts receivable → Periodic processing


→ Payments
In the initial screen, enter a self-defined identification and maintain the parameters.

Field name or Data type Values


Company code See "Exercise Data"
Customers Your customers
Documents posted up to "Today"

Select the appropriate log for your customers so that you can see the detail log.

Schedule the dunning run (Schedule dunning run). (Start immediately, no printer).
Press ENTER repeatedly until you have the status “Dunning selection is complete”.
Choose View dunning list.
Start the Sample printout.
When the Sample printout is complete, start the Dunning print.
Finally check that the dunning level in the rental agreement (Payment data tab) and in
the tenant with customer account (Company code → Dunning data) has been
updated.

(C) SAP AG AC290 4-31


4-6 Accounting → Real estate management → Rental → Rental agreement → Change
→ Rental agreement master data

Enter the rental agreement number and confirm.


Choose Partners.
Choose Choose partner for the master tenant with customer account.
Choose Goto → Central data → Bank details.
Flag the field "CollectAuth".
Choose Goto → Company code data → Automatic payment transactions.
Enter E in the "Payment methods" field.

Check if the tenant has any open items.


Accounting → Real estate management → Rental → Rental agreement → Display
Choose Open items.
Carry out the debit position if required.

Execute the bank collection by using this path:


Accounting → Financial accounting → Accounts receivable → Periodic processing
→ Payments
In the initial screen, enter a self-defined identification and maintain the parameters.

Field name or Data type Values


Company codes See "Exercise Data"
Payment methods E
Customers Your customers
Documents entered up to "Today"

Select the additional log for your customers so that you can see the detail log.

Press Schedule proposal. Select Start immediately.


The status is updated by double-clicking Status.
Press Display proposal and Display proposal log.
Press Schedule payment run. Select Start immediately.
The status is updated by double-clicking Status.
Check if the tenant's open items have been cleared.
Accounting → Real estate management → Rental → Rental agreement → Display
Press Open items.

(C) SAP AG AC290 4-32


Rent Adjustments

Contents:
Procedure
Adjustment methods

© SAP AG 1999

(C) SAP AG AC290 5-1


Rent Adjustment: Unit Objectives

At the conclusion of this unit, you will be able


to:
Explain the procedures used for rent
adjustment
Describe the rent adjustment methods

© SAP AG 1999

(C) SAP AG AC290 5-2


Course Overview

Master Data

General
Rental
Contract
(Tenant Rental)
Rental Accounting Settlement

Rent Adjustment
Correspondence Cross-
Application
Functions
Controlling § Taxes
Information
Integration System

© SAP AG 1999

(C) SAP AG AC290 5-3


Rent Adjustment: Business Scenario

You want to change the rent on your rental


agreements
Select the method needed for the rental
agreement and the situation

© SAP AG 1999

(C) SAP AG AC290 5-4


Rent Adjustment Methods

Free adjustment
Index
Representative list of rents
Comparative apartments
Comparative method
Expert opinion
Construction measures
Any conditions
Area change
Amount transfer from rental unit to rental
agreement
Adjustment advance payments / flat rates
Country-specific
Cost-efficiency analysis
Switzerland
© SAP AG 1999 Customer-specific methods

You must define at least one adjustment type for a rental agreement.
The adjustment type determines the adjustment methods that are permitted (settings in Customizing).
You can also restrict the condition types that can be used with certain adjustment methods.
Combinations of adjustments are possible (for example, an indexed sales-based rent).
In the rent adjustment run, you can choose to take account of the increase percentage rate defined for the
rental object.
Certain adjustment methods used for residential rental agreements take into account the rent cap
(methods: representative list of rents, comparative apartments, free adjustment - residential).
You generally use the amount transfer method when different conditions exist in the rental agreements
and rental units and you want to adjust these uniformly in the future. The amount transfer creates the
required basis.
Country-specific rent adjustment: note in particular the Swiss rent adjustment (takes into account the rent
reserve based on absolute factors (rent in accordance with locality, marginal gross yield) and relative
factors (standard of living index, mortgage loan rate, maintenance and operating costs).

(C) SAP AG AC290 5-5


Rent Adjustment Process

Check and
change,
if necessary

List of
Simulate Fix adjustment
calculated
adjustment adjustments
Adjustment
run data

• Header (ID)
• Adjustment records
Correspondence Remind that
Check and • Log
notification approval required,
change,
if necessary
if necessary
Enter
approval
Activate Rental agreement
new
Adjustment
conditions Rental unit
run data

© SAP AG 1999

If you want to make a rent adjustment, you can first simulate the adjustment. The simulation generates a
list of the possible rent adjustments. You can change the values in the list and if the results of the
simulation fulfill the requirements, you can save the simulation.
“Simulate rent adjustment” + Save = “Calculate rent adjustment”.
The procedure “Calculate rent adjustment” is useful for planning a rent adjustment run (as a background
job). You may still change the data saved (before activation and approval, by choosing the “Activate”
menu path in the detailed screen).
The system creates a log listing the reasons as to why a particular adjustment does not work for every
adjustment run.
The system takes into account any periods and limitations that are set by law.
Rent adjustments that are subject to approval can only be activated after the approval has been entered.
Methods that are subject to approval are defined in a system table that cannot be edited. The approval is
maintained in the application using the “Activate” menu option.
Calculated rent increases can be partially passed on to the tenant. The reasons for reducing the rent
increase and the percentage rate of the amount that is passed on to the tenant are maintained in the rental
unit.
Rent adjustments that have been made and those that are planned can be viewed in the master data dialog
of the rental agreement.

(C) SAP AG AC290 5-6


Rent Adjustment Data
Relevant For Master Data Objects

Object Fields Effect


Business entity Tenancy law Rent cap
Time between
two rent adjustments

Building Construction year/location Representative list of rents

Rental unit Areas


Fixtures and fittings category
Surcharges/reductions Representative list of rents
Modernization date
Usage type Permitted
adjustment methods
Percentage rate of increase
Adjustment amount

© SAP AG 1999

Some master data fields have an effect on the rent adjustment for residential apartments.
The tenancy law that is maintained for the business entity determines the legal requirements that affect
the rent adjustment for residential apartments.
The construction year that is maintained for the building determines the building age class relevant for
the representative list of rents.
The location class used in the representative list of rents is the one belonging to the building. A
representative list of rents that uses location classes must be maintained for the business entity for
“location class” field to be displayed and maintained.
Data relevant to the representative list of rents is maintained for the rental unit:
Area
Fixtures and fittings categories
If necessary, you can also enter surcharges and reductions.
If a date for modernization has been entered in the rental unit, this overrides the construction year
entered for the building.

(C) SAP AG AC290 5-7


Free Adjustment, Adjustment of Any Conditions,
Garage Rent

Enter adjustment values at program


start
Increase per area unit
Relative increase in percentage
Residential
Total increase
New amount per area unit
Commercial
Total new amount

Garage

© SAP AG 1999

The “Free adjustment”, “Adjustment of any conditions” and “Garage rent adjustment” methods adjust
rent based on the values defined at the start of the program.
Possible values:
- Absolute
- Relative
Use “Free adjustment” when there is no other suitable method. The “Free adjustment residential” applies
a rent cap.
No rent cap is applied for “Any condition”. Note the exceptional case for this type of adjustment that the
condition types to be adjusted have to be determined in the "Adjustable conditions" Customizing table.

(C) SAP AG AC290 5-8


Generate New Conditions - Example of Usage

Starting point:
• Rent reduction affects a group of rental
agreements (for example, noise from
construction sites)
• There is no "Rent reduction" condition on
the rental agreement

Procedure:
• Rent adjustment method "Any conditions"
• Select the rental units
• Select "Rent reduction" condition
• Select the parameter "Generate new conditions"

© SAP AG 1999

New condition types can be generated for each object with "Any conditions" and "Amount transfer".
The "Amount transfer" method can only be used when the corresponding conditions are already defined
for the original object. When "Any conditions" is used, the conditions for the rental agreements and
rental units can be generated from scratch.

(C) SAP AG AC290 5-9


Index-Linked Rent Adjustment

Index Increase
1985 Percentage
7000 Points
Pass-on percent
Base year 1985
Index series 7000
Indexing date

Base year 1985


Index series 7000 Cost of living index of all
Index levels private households
Index date Index number
... . . . .
05 1994 127,400
04 1994 126,900
03 1994 126,600
02 1994 125,500
01 1994 124,500
12 1993 123,900
11 1993 123,600
... . . . . ...

© SAP AG 1999

An index-linked adjustment type must be maintained for index-based rental agreements. The adjustment
is made using the specified index series and index points maintained in Customizing.
When individual indexes increase or decrease, the possible rent adjustments are determined. The
adjustment dates and increase quotas that are fixed in each agreement are taken into consideration.
The basic rent increases in proportion to the index points, and this increase can be further weighted by
the pass-on percentage rate. The index must have increased by a minimum amount of points or a
minimum percentage rate.
The year and month of the index value used is determined by:
- Date of first adjustment
- Adjustment delay
- Adjustment frequency
If an index clause has been fixed for the rental agreement, no approval is necessary for rent adjustments.
However, payment provisions do need approval.

(C) SAP AG AC290 5-10


Frequency and Delay

Frequency (for instance 3) of rent adjustment (RA)


Rental start RA RA
Flexible
1.1. 4.1. 7.1. t

Rental start RA RA RA RA RA . . .
Flexible
1.1. 4.1. 5.1. 6.1. 7.1. 8.1. t

Adjustment delay in months (for instance 2)


Case 1: Rent adjustment run = 10.1.

Backwards
8.1. 10.1. t
Index data Date that adjustment is valid from
= Date of rent adjustment run

Case 2: Rent adjustment run = 8.1.

Backwards
8.1. 10.1. t
Index data Date that adjustment is valid from
Date of rent adjustment run

In both cases, the index data for August is available and the new date for the conditions is 10.1.
© SAP AG 1999
The difference is the date assigned to the rent adjustment run!

You enter the adjustment frequency and delay for index adjustment data in the rental agreement.
Adjustment frequency:
If the "Flexible" field is flagged, the frequency is taken to mean the minimum duration. Otherwise adjustments can
only be made with the specified frequency.
Example of frequency:
If the frequency is 1, adjustments can be made at any time. If the frequency is 3, adjustments can only be made
every three months. If the "Flexible" field is flagged, adjustments can be made any time after three months (as long
as this is after the date of first adjustment).
Adjustment delay:
As index data is always issued with a delay and the rent adjustment normally applies to a date in the future, the
adjustment is subject to a delay. You have the following option:
Case 1: The date of the rent adjustment run is the same as the new valid-from date for condition items. Here, the
"Backwards" flag also has to be flagged for the number of months delay. (The index data must exist on the "Rent
adjustment date - adjustment delay in months".)
Case 2: Index data is available for the date entered for the rent adjustment run. The delay in months is added to
this date to calculate the new date for the conditions.
The difference is the date assigned to the rent adjustment run!

(C) SAP AG AC290 5-11


Representative List of Rents
C
Building age classes Location classes
Valid from Valid to Description
12/31/1930 Basic residential location
01/01/1931 12/31/1945 Average residential location ...
01/01/1946 12/31/1955
Fixtures and fittings classes
Size classes 1 Basic
From area To area 2 Medium-range .. .
Surcharge/reduction classes
20,00 49,00
50,00 69,00 1 Surcharge 1
70,00 ... 2 Reduction 2 . . .

Value table

Building age from 01/01/1995 to 12/31/1995


Fixt.& fittings Basic
Location Basic
Area From: To: From amount To amount Mean value
20.00 50.00
50.00 70.00
© SAP AG 1999
70.00 ...

You have to select a representative list of rents for a business entity to make an adjustment based on a
representative list of rents. The representative list of rents is defined in Customizing according to
structure: parameters relevant for the adjustment (building age class, location class, fixture and fittings
class, size class) are specified. The surcharge/reduction classes must be assigned characteristics. So-
called characteristics categories are derived from these classes.
The system uses these structure parameters to generate a value table that you fill with the current data
from the representative list of rents.
The system determines the permitted rent as stipulated by the representative list of rents by using the
characteristics of the rental unit (building age, building location, fixtures and fittings as a basis).
Only the fixtures and fitting characteristics assigned to the rental unit and the representative list of rents
are taken into account for a rent adjustment made using the representative list of rents.
In Customizing, you maintain legal requirements about rent such as rent capping and adjustment
frequency. The adjustment takes these requirements into account. You can also adjust rental agreements
that have not yet been activated. These rental agreements are not capped.
You can choose the value (from, to, mean value) to be used in the adjustment.
You can map rent tables that cannot be mapped with the existing classes with a control table that uses
conditions and activity rules to define the calculation base.

(C) SAP AG AC290 5-12


Comparative Apartments and Groups (1)

Comparative apartment 1
Living area: 150 m2
Basic rent: $14.28/m2
3 rooms Scale 1:75 Living
room

Comparative apartment 2 Nursery Bed-


Living area : 150 m2 room

Basic rent : $13.30 /m2


3 rooms
Comparative Rental unit 4711
Comparative apartment 3
Living area : 150 m2 group 1111, Assign Living area 150 m2
Basic rent : $13.80 /m2 with living Basic rent:
3 rooms area of 150 m2 Adjust $2000
3 rooms = $13.33 / m2
Comparative apartment 4
Living area : 150 m2
Basic rent : $14.50 /m2
3 rooms Minimum number 3:
Adjustment to $14.10
Comparative apartment 5
Living area: 150 m2
Basic rent: $14.10 /m2
3 rooms

© SAP AG 1999

Only rental units that are assigned to a comparative group of apartments can be subject to a rent
adjustment using comparative rent. The apartments in the comparative group can be used to calculate the
new rent.
Apartments from internal stock (rental units) as well as external apartments can belong to a comparative
group of apartments.
A minimum number of comparative apartments is necessary for the adjustment. The minimum number
of comparative apartments is specified in Customizing.
This minimum number also determines which comparative apartments are used for determining the
adjustment. If the minimum number "5" is entered, the rent adjustment is based on the fifth most
expensive apartment in the comparative group.

(C) SAP AG AC290 5-13


Comparative Apartments and Groups (2)

Assignment Maintain comparative group of


Rental unit ⇔ Comparative group apartments

Compar. apartment Apartment X

Comparative group Comparative group

Apartment X Apartment X

Apartment X is part of the


The rent adjustment for comparative group
apartment X uses the values No statement about the
of the comparative group assignment

© SAP AG 1999

Your own comparative apartments and external comparative apartments can be used for the comparative
group.
You must enter the external comparative apartments with the relevant data.
A rental unit can be a part of a comparative group of apartments and assigned to the same comparative
group of apartments.
CAUTION. When the rent of an apartment is adjusted, the rent of this apartment is not included in the
calculation.

(C) SAP AG AC290 5-14


Expert Opinion

Expert opinion: 4711


Company code: 0001 SAP AG case company
Date of exp.opinion: 01/31/1995
Surch/reduct.
New amount 17.0 $ / m2

Reasons for surcharge/reduction Participating rental units


Mildew in bathroom / shower BE from RU to RU
Windows in need of repair 0001 1234 1238
... 7777 4711 4717
... ... ...

Scale 1:75 Living


room

Bed-
Nursery room

© SAP AG 1999

If you are going to make a rent adjustment using an expert opinion, then you first have to enter the data
for the expert opinion in the system:
Specify surcharges, reductions or a new amounts.
In the expert opinion, you can also enter the reasons for a surcharge/reduction as defined in
Customizing.
You assign rental units that are subject to adjustment to the expert opinion. An expert opinion can be
made for any number of rental units from one upwards.
The amount of increase is added to the basic rent. You define a reference to the expert opinion in the
rental agreements.
This type of rent adjustment is subject to approval.

(C) SAP AG AC290 5-15


Construction Measures: Modernizations

Planned costs Construction


Actual costs
measures

Apportionment
Rental units
Adju
stme
nt

N ot
ific
atio
n
Change rental agreement
Conditions

© SAP AG 1999

If you are planning modernization measures, you have to create "Construction measures". This describes
the modernization measures, the rental units being modernized and the planned costs.
The apportionment of modernization costs can be entered directly or made using the apportionment units
to be maintained on the participating rental units.
The increase amount is usually calculated directly into the basic rent or passed on using a separate
condition (such as "Surcharge for improvements").
After you have simulated the rent adjustment using the planned costs, you can inform the tenant of
his/her share of the costs in a notification letter. This type of rent adjustment is NOT subject to approval.
The percentage increase of the costs to be passed on yearly is defined in Customizing.
You enter the actual costs once the modernization is completed in "Construction measures". The actual
costs are used to update the data of an adjustment run that has already been made. The actual costs are
needed for activating the rent adjustment.

(C) SAP AG AC290 5-16


Area Change

From date

Prerequisite:
The area of the rental unit has changed on the key date
and conditions of rental unit or rental agreement
are now based on area

© SAP AG 1999

If you have agreed on conditions for the rental unit or rental agreement that are based on area and the
reference area of the rental unit has changed, the systems prompts you to say whether adjustment records
are to be generated. If you confirm this with "Yes", the dialog of the adjustment simulation has default
entries (for example, if you have defined area-based conditions for the rental agreement only and not for
the rental unit, there will be a default entry for adjustment objects reading "Only rental agreements").
You finally have to activate the adjustment records.
If you answer the "'Generate adjustment records" dialog with "No", you can initiate the adjustment at a
later date using the rent adjustment menu option.

(C) SAP AG AC290 5-17


Parameter Overview

A C
Basic object (relevant for adjustment General parameters
of RU and RA) Adjustment parameter for tenancy law

Separate calculation
Adjustment parameter for company code
Rental unit
Rental agreement Combination of adjustment type and adjustment
method
RU/RA parameters
Only adjustment increases Combination of adjustment type and
RU usage type
Takes account of RU percentage rate
Adjustable condition types
Includes surcharge for increase in value
Default condition type
Adjusts subsequent conditions (for example,
graduations) Rounding rules
RA parameters
Reasons for adjustment block
Also adjusts inactive RA
Generates new conditions Parameters and values for reminders for
approval
RU parameters
Text for adjustment letter
Also caps RU amount
Only adjusts RU when vacant
Generates new conditions
© SAP AG 1999

In some cases, not all application parameters are available for one particular adjustment method.

(C) SAP AG AC290 5-18


Customizing Rent Adjustment

General parameters
Adjustment parameter for tenancy law
Adjustment parameter for company code
Combination of adjustment type and adjustment method
Combination of adjustment type and RU usage type
Adjustable condition types
Default condition type
Rounding rules
Reasons for adjustment block
Parameters and values for reminders for approval
Text for adjustment letter

Representative list of rents (basic data, value table, control table)


Comparative apartments - number range
Expert opinion - reasons
Index
Cost efficiency analysis (specific to Germany)
Rent adjustment for Switzerland

© SAP AG 1999

(C) SAP AG AC290 5-19


Rent Adjustment: Unit Summary

You are now able to:


List the rent adjustment methods
Describe the rent adjustment process

© SAP AG 1999

(C) SAP AG AC290 5-20


Rent Adjustment Exercises

Unit: Rent Adjustment


Topic: Rent Adjustment – Different Methods

At the conclusion of this exercise, you will be able to:


• Use different rent adjustment methods

You will take the following steps:


Prepare, simulate, save, enter approval for a rent adjustment, then
finally activate it

There are many methods available to adjust rental agreements.

Do the exercises in the order that best suits your own requirements.

5-1 Make a rent adjustment of the type “Any conditions" by changing the condition for
"Air-conditioning". Use the residential rental agreement that you have already created.
5-1-1 Simulate the adjustment.
5-1-2 Save the adjustment.
5-1-3 Print the letter (print preview).
5-1-4 Enter the tenant's approval and activate the rent adjustment.
5-1-5 Display the rent adjustment in the rental agreement.

5-2 (*) Simulate a rent adjustment of the type "Expert opinion" for rental unit 2.
5-2-1 Create an expert opinion.
5-2-2 Simulate the adjustment.

5-3 (*) Simulate a rent adjustment of the type "Comparative apartments" for rental unit 3.
5-3-1 Create five comparative apartments.
5-3-2 Make a comparative group for the apartments.
(C) SAP AG AC290 5-21
5-3-3 Assign your rental unit to the comparative group.
5-3-4 Simulate the rent adjustment for the comparative apartment.

5-4 (*) Simulate an index-linked rent adjustment.


5-4-1 Create a new rental unit.
5-4-2 Create a rental agreement for this rental unit starting 1 January of the previous
calendar year with adjustment type "index-linked rent"; activate the rental
agreement.
5-4-3 Simulate the adjustment.

(C) SAP AG AC290 5-22


Rent Adjustment Solutions

Unit: Rent Adjustment


Topic: Rent Adjustment – Different Methods

These exercises are easier to do if you assign a user identification for the simulation run in the rent
adjustment selection screen.

5-1 Rent adjustment "Any conditions" – Rental unit 1


5-1-1 Accounting → Real estate management → Rent adjustment → Rent
specifications → Any conditions → Simulate
Under the "Amounts" tab, enter an absolute or a percentage value. Press
"Execute".
5-1-2 Save the result.
5-1-3 Accounting → Real estate management → Rent adjustment → Rent
specifications → Any conditions → Print → Adjustment letter
Press "Execute". A log is generated.
Choose System → Own spool requests. Flag the spool number and choose
Display contents.
5-1-4 Accounting → Real estate management → Rent adjustment → Rent
specifications → Any conditions → Activate
Enter your user identification and press "Execute".
Flag the rental agreement number and press Details. Enter the approval date.
Choose Activate.

You may also enter a proposal for the approval date.

5-1-5 Accounting → Real estate management → Rental → Rental agreement →


Display
"Conditions" tab. A new condition item exists.

5-2 (*) Rent adjustment "Expert opinion" - Rental unit 2


5-2-1 Accounting → Real estate management → Rent adjustment → Rent
calculation → Expert opinion → Expert opinion → Create
(C) SAP AG AC290 5-23
Enter a surcharge/reduction or a new amount.
Assign your rental unit 2 to the expert opinion using Rental units.

5-2-2 Accounting → Real estate management → Rent adjustment → Rent


calculation → Expert opinion → Simulate

5-3 (*) Rent adjustment "Comparative apartments" - Rental unit 3


5-3-1 Accounting → Real estate management → Rent adjustment → Rent
calculation → Comparative group → External comparative apartment →
Create
If necessary, use the "Copy from" function.
5-3-2 Accounting → Real estate management → Rent adjustment → Rent
calculation → Comparative group → Comparative group → Maintain

Field name or Data type Values


Comparative group 1##

5-3-3 Accounting → Real estate management → Rent adjustment → Rent


calculation → Comparative group → Assign rental unit
Enter the selection criteria for your rental unit and press Execute.
Flag the rental unit number and choose Assign comparative group.

The assignment determines the comparative group to be used as a basis.


However the apartment DOES NOT BECOME part of the comparative group.
You have to maintain the comparative group for the apartment to become part
of the group. If a rental unit is not assigned to a comparative group, the rent
cannot be adjusted.
You can also assign the comparative group by choosing
Change rental unit → Edit → Assign comparative group.
5-3-4 Accounting → Real estate management → Rent adjustment → Rent
calculation → Comparative group → Simulate

Choose Log to display information on the simulation. You can expand the log
to display additional levels of detail.

(C) SAP AG AC290 5-24


5-4 Rent adjustment "Index" - New rental unit
5-4-1 See the solutions to the "Master Data" unit.
5-4-2 Specify the rental to start on 1 January of the previous calendar year.
Choose the index-linked adjustment type.
Press "Multiple selection".
Press Adjustment data.

Field name or Data type Values


Index series 1
Base year 1991
Index start Same as rental start
Adjustment frequency 1
1st adjustment from 01/01/2000
Adjustment delay 1
Backwards X
Activate the rental agreement.
5-4-3 Accounting → Real estate management → Rent adjustment → Rent
calculation → Index → Simulate

(C) SAP AG AC290 5-25


Service Charge Settlement

Contents
Operating cost settlement
Heating expense settlement

© SAP AG 1999

(C) SAP AG AC290 6-1


Service Charge Settlement: Unit Objectives

At the conclusion of this unit, you will be able


to:
Describe the service charge settlement
process. Individual steps in this process are:
Creating the infrastructure
Posting vendor invoices
Implementing the service charge settlement
Adjusting the advance payments

List the factors influencing the service


charge settlement
Describe the relevant postings

© SAP AG 1999

(C) SAP AG AC290 6-2


Course Overview

Master Data

General Contract
Rental (Tenant Rental)

Settlement
Rental Accounting (Service Charge
Settlement)

Rent Adjustment
Correspondence Cross-Application
Functions

Controlling § Taxes
Information
Integration System

© SAP AG 1999

(C) SAP AG AC290 6-3


Service Charge Settlement: Business Scenario

Carry out the process required for the service


charge settlement. This involves the following
steps:
Creating the infrastructure for the service
charge settlement
Posting apportionable costs
Making the actual service charge settlement
Adjusting advance payments

© SAP AG 1999

(C) SAP AG AC290 6-4


Overview: Service Charge Settlement

Purchase orders/
contracts/
agreements

Invoice

Data entry

Settlement unit

Elevator Water Gardening

Settlement

Rntl agrmnt RA1 Rntl agrmnt RA2 Rental unit 1 Rental unit 2

© SAP AG 1999

Expenses that arise in a period are entered in the form of invoices in FI. The invoices are assigned to the
relevant settlement units during the posting.
You have to have the correct time assignment and contents assignment to post the costs (time
assignment: reference date, contents assignment: settlement unit).
The function "Complete settlement" is used to settle costs to the relevant objects - rental units, rental
agreements. The settlement apportions costs to the tenants or, if the costs cannot be apportioned to the
rental agreements, to the rental units (for the purpose of cost controlling).

(C) SAP AG AC290 6-5


Participation ID of SCS

1 2 3

4 5 6

(Participation ID)
Participation ID
for elevator (1, 2, 3)
for garden (4, 5, 6)

Participation ID
for property tax, water, ... (all)
© SAP AG 1999

You use the participation ID to group together rental units participating in a service charge settlement.
You can use the participation ID as a reference for the service charge settlement and address each group
of rental units individually.
Example: The garden costs only apply to the rental units 4, 5 and 6. You create a participation ID with
exactly these rental units.

(C) SAP AG AC290 6-6


Structure of Service Charge Settlement

Rental unit Participation ID Service charge key

1
Ground floor Garden
2

3
All Water

5
Upper floor Elevator

© SAP AG 1999

Rental units are assigned to service charges by means of participation IDs and service charge keys.

(C) SAP AG AC290 6-7


Settlement Unit

Service charges Invoice

WHAT? WHO? generate


Cost collector 1 Cost collector 1
Service charge Participation ID 1998 = released for generated
key account assignment

900 Cleaning GF RE1, RU2 Cost collector 2 Cost collector 2


1999
not generated

WHEN? HOW? Cost collector 3 Cost collector 3


Settlement variant Apportionment 2000 not generated
factor
"Period" •Basic area . . .
annually •Persons . . .
from 01/01/98

© SAP AG 1999

The settlement unit is used to collect the costs for a specific service charge key, a specific participation
ID and a specific settlement period. An apportionment factor defines how the costs are to be divided up
for each settlement period.
A participation ID can contain rental units from different business entities.
A cost collector is generated for each settlement period in the settlement unit. This cost collector is a CO
object.
The costs collected for a settlement unit during the settlement period are settled between the rental units
belonging to a participation ID for the service charges. You have to specify the date from which a
settlement unit is valid. This date and the settlement variant comprise the settlement period.
The "Settlement participation" function in the rental agreement can be used to specify which service
charges can be apportioned to the tenant and how much, if any, can be apportioned to the landlord. The
settlement participation is a relationship between the conditions for the rental agreement (advance
payments, flat rates) and the service charge keys (and, hence, the settlement units). When settlement
units are created after the settlement participation, you have to regenerate the settlement participation in
the rental agreement.

(C) SAP AG AC290 6-8


Master Settlement Unit (Master SU)

Master SU
(street-cleaning
and garbage)

Distribution by:
• Apportionment unit
• Equivalence figures
• Formula for calculating the hot water share

Settlement unit Settlement unit


(street-cleaning) (garbage)

© SAP AG 1999

The vendors lump together various service charges affecting different settlement units and bill them in
one invoice, for instance heating expenses and hot water costs. The costs then have to be distributed to
the correct settlement units according to a certain key. You have to define special settlement units for
this pre-distribution of costs, and these are called "master settlement units". You can collect (post) costs
on a master settlement unit and define the calculation base for distributing these costs to the correct
participating settlement units.
Examples of calculation bases:
Apportionment unit
Equivalence figures
A country-specific formula for calculating the hot water share
The service charge settlement uses the corresponding calculation basis to post the costs to the
participating settlement units and allocate them proportionately. This creates a transparent cost situation
down to the level of the individual settlement units. To distribute costs from the master SU to the
participating SUs, you have to specify in Customizing for Real Estate a "Master SU credit account" and
a "Master SU receiving account" for the cost element that was originally posted.

(C) SAP AG AC290 6-9


Account Determination Keys:
Settlement Unit and Participation ID

Settlement unit Participation ID


Key Key
• Company code • Company code
• Business entity • Business entity
• Service charge key • Name of participation ID
• Name of settlement unit

Other keys Other keys


• Valid-from date of SU • Valid-from date of participation ID
• Valid-to date of SU • Valid-to date of participation ID
• Participation ID assignment with • Assigned rental units with
valid-from date valid-from/to date
• Apportionment unit
• Settlement variant

© SAP AG 1999

Note that for invoice account assignments to a cost collector, you have to specify ALL elements of the
account assignment key apart from the reference date. If, for instance, you do not specify the business
entity, the settlement unit is valid for all business entities.

(C) SAP AG AC290 6-10


Account Determination Keys for the Settlement

Additional keys
Account determination keys
rental agreement / rental unit
for settlement unit (maintained manually)

Validity period Settlement Settlement type

Settlement participation
participation is
Participant automatically • Advance payment
generated • Flat rates
• Participation ID • Final settlement
• Period of assignment • No participation

Apportionment unit Percentage share of


tenant
• Per settlement period
• Several apportionment Maximum costs per SCK
units with percentage and per condition type
share

Apportionment factor
(value of apportionment
unit)
Validity period of rental
agreement
© SAP AG 1999

Settlement participation in the rental agreement is automatically generated by the settlement


participation infrastructure. You can use the function "Settlement Participation" to view, manually
change or specify more precisely the data concerning the apportionment of service charges to any
particular tenant (for instance, the landlord's share of costs, maximum costs per condition type or
maximum costs per service charge key).
Settlement participation is a relationship between the conditions (advance payment, flat rates) on the
rental agreement and the settlement units (and, hence, service charge keys).
If the infrastructure of the existing rental agreements is changed at a later date (for example, a settlement
unit is created), the settlement participation of the agreements affected by this change have to be
regenerated.
The landlord bears a share of the costs if the pass-on percentage rate (tenant share) that has been fixed
for the service charge key is not allowed to exceed more than 100%. The landlord also bears any costs
that exceed the maximum costs as stipulated in the contract.

(C) SAP AG AC290 6-11


Posting Service Charges

Invoice Document type: CR


Company C Vendor account - $1,000
Easiclean RE
D Service charge costs - $1,000
Cleaning
Hallway
17 Forest Av. $1,000
Vendor Service
charges
1000 1000

Auxiliary account assignment to CO object:


BE: 815, 17 Forest Av.
SCK: 7000 Cleaning
Settlement unit: All
Reference date: 07/23/98

© SAP AG 1999

Service charges are recorded as invoices in Financial Accounting (Accounts Payable).


Posting record: Service charges account to vendor.
You enter the settlement unit in the posting line of the service charges account as the auxiliary account
assignment. When the posting is made, the reference date serves as a link to a particular settlement
period.
For entering Real Estate account assignments, we recommend that you set up appropriate entry screens
in Customizing for Financial Accounting. See the Implementation Guide for further information.
Costs accumulated in a settlement unit for a settlement period can be evaluated using the Information
System.

(C) SAP AG AC290 6-12


Full Settlement

Simulation
Entry
Entry
CoCd 0001 Error No error
BE: 2072
Error analysis Check results
SC key: 300
Correct
Settlement unit: 1
Repeat
Begin settl. Period: ... -> Update run
End settl. Period: ...

Update run
Post settlement Transfer advance
documents payments

Letter
Adjust advance Activate
payments

© SAP AG 1999

The following activities are carried out in the service charge settlement:
Determining the total costs for the settlement period for each settlement unit
Distributing the costs to the rental agreements and rental units
Determining the surcharges (management costs surcharge or apportionment loss risk)
Posting the costs share to the tenant accounts (customer receivables)
Determining advance payments (actual payments) made by the tenant and making a credit transfer
(batch input)
Determining the new advance payments/flat rates based on actual costs and taking into account any
percentage surcharges and minimum amounts for an increase or decrease of the advance payments
Subsequent steps:
Activating the advance payment/flat rate adjustment
Printing the correspondence

(C) SAP AG AC290 6-13


Example: Occupancy of a Rented Object

Settlement period
7/1/97 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 30/6/98
Days 31 31 30 31 30 31 31 28 31 30 31 30

Rental unit 1
Mr Jones to 10/8/97 Mrs Smith
AP elevator AP op.costs Flat rate heating exp.
AP op.costs + heating exp. from 10/17/97
100 days 8 days 257 days

Rental unit 2
Mr Miller AP operating costs AP heating expenses

Rental unit 3
Miss Taylor Flat rate Oper.costs to 2/28/98
243 days Vacancy 122 days

© SAP AG 1999

Service charges are apportioned to rental agreements on the basis of settlement factors (such as by area
or by the number of antenna sockets) and on the length of occupancy . The length of occupancy is
automatically determined by data on the rental agreement (rental end, notice); varying lengths of months
and leap years are also taken into account.

(C) SAP AG AC290 6-14


Example: Costs

Invoice

Posting date

Reference date

Cost collector Cost collector Cost collector


until 06/30/97 07/01/97-06/30/98 from 07/01/98

Reference date
04/01/97 $ 1000 Pest elimination
07/01/97 - 06/30/98
Settlement period

07/07/97 $ 520 Thorough cleaning of stairs


09/1297 $ 120 Hall cleaning
03/04/97 $ 455 Staircase cleaning
07/05/98 $ 250 Hall cleaning

Costs of the settlement period: $1,095


07/01/97 to 06/30/98
© SAP AG 1999

Costs accumulated for a particular settlement period can be evaluated using the Information System
(settlement unit postings).

(C) SAP AG AC290 6-15


Example: Calculation

Settlement Length of Reference Costs per


factor occupancy factor (RF) RA/RU
Living area No. of days = RF x 0.01
RU1 Mr Mayer 100 x 100 = 10,000 100.00
Miss Smith 100 x 257 = 25,700 x 0.01 257.00
RU2 Mr Miller 50 x 365 = 18,250 182.50
RU3 Miss Taylor 150 x 243 = 36,450 364.50
Vacancy RU1 100 x 8 = 800 8.00
RU3 150 x 122 = 18,300 183.00
Total 109,500

Total costs: $ 1095.00


Costs per reference unit: 1095.00 : 109.500 = 0.010

© SAP AG 1999

The costs per rental unit/ rental agreement are calculated from the following factors:
Apportionment factor
Length of occupancy
Accrued costs
The reference factor is made up of apportionment units and length of occupancy in the posting period of
the settlement period. The total of all reference factors is set in relation to the costs and results in the cost
factor per reference factor unit.
The specification whether and to what extent the costs determined can be passed on to the tenant is in the
"Settlement participation" in the rental agreement.
If reference is made to consumption factors, the apportionment is made using the calculated
consumption.
If consumption for the heating expense settlement is not known (if, say, there has been a tenant
changeover and the meter has not been read), the regional location key can be used. This is also referred
to as degree day coefficient, heating value days, heating value percentage rates, heating value days, ETH
key (Switzerland).

(C) SAP AG AC290 6-16


Posting Procedures - Service Charge Settlement

Subsidiary ledger General ledger

Bal. sheet
accounts
Vendors

Payables Receivables
Vendor
1095.- (1)
1095.- (1)
Reconciliation accts

Mayer
Expense Credit account
(1) 1,095 SU
Smith
RU clearing account
Customers

RA clearing account RU clearing account or passed on costs


P/L accounts

Miller

Revenues

Taylor

© SAP AG 1999

1. Posting of service charges incurred


When the service charge settlement is being made, the first costs to be determined are those posted to the
settlement unit.

The text in italics represents account assignment of the particular account assignment object. CO account
assignment is the same as for the FI postings (a debit posting always triggers a debit account
assignment). This is not clearly indicated in subsequent slides due to lack of space.

(C) SAP AG AC290 6-17


Posting Procedures - Service Charge Settlement

Subsidiary ledger General ledger

Bal. sheet
accounts
Vendors

Payables Receivables
Vendor
1095.- (1)
1095.- (1)
Reconciliation accts

Mayer
Expense Credit account
(1) 1,095 SU 1,095(2) SU
Smith
RA clearing acct or
Customers

RA clearing account passed-on costs RU clearing account


P/L accounts

(2a) 100 RA Mayer (2b) 364.50 RA Taylor (2c) 8 RU 1


(2a) 257 RA Smith (2c) 183 RU 2
Miller (2a)182.50 RA Miller

Revenues

Taylor

© SAP AG 1999

1. Posting of costs incurred


2. Settlement unit credit and cost element
a) further allocation to rental agreements
b) no further allocation but result of rental agreements (flat rate)
c) rental agreements cannot be assigned (vacancy)

Credits are made from a credit account to a cost account and cost collector of the settlement unit.
The offsetting entries are a result of the distribution determined by the settlement and are posted in the
following manner:
Costs that are to be passed on to the tenant are assigned to the rental agreements and posted to an
account "Rental agreement clearing account".
Costs resulting from rental agreements (flat rates, percentage transfer to landlord) that are not to be
passed on are also assigned to the rental agreements but posted to an account "Clearing account for
rental agreements without passed-on costs".
Costs that have nothing to do with rental agreements (vacancy) are assigned to rental units and posted
to an account "Rental units clearing account".

(C) SAP AG AC290 6-18


Posting Procedures - Service Charge Settlement

Subsidiary ledger General ledger

Bal. sheet
accounts
Vendors

Payables Receivables
Vendor
1095.- (1) (3) 100 RA Mayer
1095.- (1) (3) 257 RA Smith
Reconciliation accts (3)182.50 RA Miller

Mayer
(3) 100.- Expense Credit account
(1) 1,095 SU 1,095(2) SU
Smith
RA clearing acct or
Customers

(3) 257.- RA clearing account passed-on costs RU clearing account


P/L accounts

(2a) 100 RA Mayer (2b) 364.50 RA Taylor (2c) 8 RU 1


(2a) 257 RA Smith (2c) 183 RU 2
Miller (2a)182.50 RA Miller
(3) 182.50
Revenues
100 (3) RA Mayer
Taylor
257 (3) RA Smith
182.50 (3) RA Miller

© SAP AG 1999

1. Posting of costs incurred


2. Settlement unit credit and cost element
a) further allocation to rental agreements
b) no further allocation but result of rental agreements (flat rate)
c) rental agreements cannot be assigned (vacancy)

3. Debit to tenant

Costs that can be passed on to the tenant are posted in the subsidiary ledger to the tenant account and
posted as receivables in the general ledger.
The offsetting entry is in the revenue postings on the rental agreements.

(C) SAP AG AC290 6-19


Debit Position and Incoming Payments (with SC)

Subledger General ledger

Receivables Cash receipt

Reconciliation
Customer

account
500 500 650

Balance sheet
500 500

account

Reconciliation
Reconciliation
AP requests Advance payments

account
account
J 150 150 J J 150 150 J 150 K

150 K

Basic rent revenue

500

Basic rent $500 AP Operating costs $150 Incoming payments $650


© SAP AG 1999

Only special G/L transactions that are indicated "payable" are offset for incoming payments. (In this
example, the special G/L transaction "J"). The offsetting entries (special G/L transaction K) remain open
(as received advance payments) and are only cleared in the settlement (service charge settlement, sales-
based rent settlement) with the settlement results. Thus the K items are not for settlement.
The special G/L indicators in the subsidiary ledger update the special G/L account to which the indicator
and the original reconciliation account have been assigned.
Note the following:
Special G/L transaction J must be executed as a payable transaction, whereas K must not be
executed.
Special G/L transactions have to be classified as A (down payment).

(C) SAP AG AC290 6-20


Clearing Advance Payments (1)

Tenant has paid all the the advance payments (before transfer posting)
Subledger General ledger

Receivables Cash receipt

Reconciliation
Customer
150

account
527

Balance sheet
150
527
150

account

Reconciliation
Reconciliation
AP requests Advance payments
J 150 150 J

account
account
J 150 150 J J 150 150 J 150 K
J 150 150 J J 150 150 J 150 K
J 150 150 J 150 K
150 K
150 K
accounts

150 K
SCS revenue

527
P/L

Receivables from SCS $527


AP Operating costs 3 x $150
Paid AP $450
© SAP AG 1999

The graphic shows the account balance after the debit position and the incoming payments of the
advance payments. The tenant has paid the advance payments in full. The tenant share of the service
charges is $527.

(C) SAP AG AC290 6-21


Clearing Advance Payments (2)

Tenant has paid all the the advance payments (before transfer posting)
Subledger General ledger

Receivables Cash receipt


Customer
527 450 150

Balance sheet
150
527 450
150

account
Balance
AP requests Advance payments
J 150 150 J
J 150 150 J J 150 150 J Balance 150 K Balance
J 150 150 J =0 450 K 150 K = 0
J 150 150 J
J 150 150 J 150 K
150 K
450 K 150 K
accounts

150 K
SCS revenue

527
P/L

Receivables from sttl 527


Credits from transfer
Receivables from SCS $527 posting - 450-
AP Operating costs 3 x $150 Balance for tenant: 77
Paid AP $450
© SAP AG 1999

The graphic shows the account after the transfer posting.


The tenant has paid the advance payments in full and no open items are remaining in the advance
payments.
The balance resulting from the service charge settlement is the amount that the tenant still has to pay or
the amount that the landlord has to pay to the tenant.

In this example:
Service charge share: $527, credit from transfer posting $450, balance for tenant $77

(C) SAP AG AC290 6-22


Clearing Advance Payments (3)

Tenant has NOT paid all advance payments (before transfer posting)
Subledger General ledger

Receivables Cash receipt

Balance sheet account

Reconciliation
Customer
527 300 150

account
150
527
Balance

Reconciliation
AP requests Advance payments
J 150 150 J
J 150 150 J 150 K

account
J 150 150 J
J 150 J 150 150 J 150 K
J 150 150 K
150 K
150 K
150 K SCS revenue

527

Receivables from SCS $527


AP Operating costs 3 x $150
Paid AP 300
© SAP AG 1999

The graphic shows the account balance after the debit position and the incoming payments of the
advance payments. The tenant has NOT paid the advance payment in full. The tenant share of the
service charges is $527.

(C) SAP AG AC290 6-23


Clearing Advance Payments - Actual Principle
Tenant has NOT paid all advance payments and
settlement is based on actual advance payments (after transfer posting)
Subledger General ledger

Receivables Cash receipt

Balance sheet account


Customer
527 300 150
150
527 300
Balance
AP requests Advance payments
J 150 150 J
J 150 150 J J 150 150 J 150 K
J 150 150 J J 150 150 J 450 K 150 K
150 K J 150 150 J 150 K
450 K 150 K
150 K
SCS revenue

527 Receivables from sttl 527


Planned AP Credits from transfer
posting - 300 -
Receivables from SCS $527 No open items (AP)
AP Operating costs 3 x $150 Balance for tenant: 227
Paid AP 300
© SAP AG 1999

The graphic shows the account after the transfer posting.


The tenant has not paid the advance payments in full and there are no open items in the advance
payments.
The transfer posting of the service charge advance payment is the amount that the tenant has actually
paid in advance payments (actual principle). The indicator "Settlement due to planned advance
payments" is not set.
The balance resulting from the service charge settlement is the amount that the tenant still has to pay or
the amount that the landlord has to pay to the tenant.

In this example:
Service charge share: $527, credit from transfer posting 300, balance for tenant 227

(C) SAP AG AC290 6-24


Clearing Advance Payments - Planned Principle
Tenant has NOT paid all advance payments and
settlement is based on planned advance payments (after transfer posting)
Subledger General ledger

Receivables Cash receipt


Customer
527 450 150

Balance sheet
150
527 450

account
Balance
AP requests Advance payments
J 150 150 J
J 150 150 J J 150 150 J 150 K Balance
J 150 150 J 450 K 150 K =0
J 150
J 150 150 K
150 K
450 K 150 K
150 K SCS revenue
Receivables from sttl 527
527 Credits from transfer
Planned AP
posting - 450 -
Receivables from SCS $527 Open items (AP) 150
AP Operating costs 3 x $150 Balance for tenant: 227
Paid AP 300
© SAP AG 1999

The graphic shows the account after the transfer posting.


The tenant has not paid the advance payments in full and there are no open items in the advance
payments.
The transfer posting of the service charge advance payment is made according to the planned principle.
The indicator "Settlement due to planned advance payments" is set.
We recommend this method if advance payments that are in arrears are not to be cleared by the
settlement (for example, for external heating expense settlement if incoming payments are still expected
after the M/L tapes have been created).
We also recommend this method for the operating costs and sales settlement if legal proceedings have
already been initiated for advance payments that are in arrears and for this reason the payments are not to
be cleared in the settlement.

The balance resulting from the service charge settlement is the amount that the tenant still has to pay or
the amount that the landlord has to pay to the tenant.

In this example:
Service charge share: $527, credit from the transfer posting $450, open items in the advance payment
$150, balance for tenant $227

(C) SAP AG AC290 6-25


Settlement Variant

Y.dep. Sttl.year TM TD AD Sttl.per

12 31 1 01/01 - 12/31 Annually

6 30 -1 1 07/01 - 06/30 Annually

6 30 1 01/01 - 06/30 and Half-yearly


12 31 2 07/01 - 12/31

1999 12 31 1 Start of SU Year-dep.


- 12/31/99

Y.dep. Year-dependent
Sttl. year Settlement year
TM To month
TD To day
AD Annual displacement
Sttl.per Settlement period
© SAP AG 1999

A year-dependent settlement variant has to be selected for the year of the first usage.
Example: First usage of real estate: 05/01/99
=> Settlement variant "12/31" Year 1999
You choose 05/01/99 as the "Valid from" date of the settlement unit.

For a settlement variant that is not year-dependent and has a "Valid-from" date of 01/01, the first four
months are interpreted as vacant and the costs apportioned to the owner.

(C) SAP AG AC290 6-26


Customizing Service Charge Settlement

C
Settlement variants
Service charge keys
Apportionment units
Areas from which apportionment factors are derived
Meters: characteristics
Regional location key for heating value days
Account determination
Assignment of service charge key/condition types
Condition categories (advance payments, flat rates)
Flow types/flow categories
Rules for the adjustment
Minimum amounts
Rounding rules
Country-specifics
Austria: tenant service charge settlement

© SAP AG 1999

According to the Austria-specific tenant service charge settlement, the tenant who is renting the object at
the time that the tenant service charge settlement is due is obliged to pay. Any advance payments paid by
the previous tenant are credited to the current tenant with the corresponding tax code.

(C) SAP AG AC290 6-27


Account Determination for
Service Charge Settlement

Credit Debit tenant Transfer posting


SU RU/RA RA Receivables AP received
Source cost element Condition type Service charge Flow category
avance payment key 3UAN
Final
settlement
Flow type Flow type

Customizing
Reference flow type
receivables from settlement

Credit account for cost


element Account determination for Account determination
Clearing account RA reference flow type for flow type
Clearing account RA without (customer to revenue account)
passed-on costs
Clearing account RU
Revenue account n.d. input tax
Credit account n.d. input tax for revenue account
Clearing acct n.d. input tax
© SAP AG 1999

(C) SAP AG AC290 6-28


Service Charge Groups

Attributes of service charges key


corresponds to
Service charge key Operating costs service charge groups
100 Property tax yes
700 Elevator yes 1 or 3
1200 Chimney sweeping no 1 or 3
2 or 3

Allocate service charge keys to condition type

Condition type Service charge group Service charge key

AP Operating costs 1 Operating costs


Flat rates OC 1 Operating costs
AP Heating exp. 2 Heating expenses
AP OC and HE 3 General service charges

AP Street cleaning + garbage 700 Garbage


800 Street cleaning

© SAP AG 1999

The allocation of the conditions for advance payments and flat rates to service charge groups or service
charge keys is the basis for generating the service participation of a rental agreement.
Example: The condition type "Advance payment operating costs" has been defined in the rental
agreement. In the settlement for a service charge key or a group of service charge keys, costs have been
determined for this rental agreement. All service keys to which the operating costs are assigned are
settled against the advance payment for operating costs.
All service charges that are to be included in the heating expenses are settled with the condition type in
the rental agreement that belongs to service charge group 2.
If there is only a condition type belonging to service charge group 3 in the rental agreement, the
settlement as well as the operating costs and the heating expenses are offset against this condition type.
With this method, the service charges are grouped and offset against one condition type.
If you only want to specify certain service charges against particular condition types, you do not assign a
condition type to a service charge group. Instead, you assign one or more service charge keys to the
condition type.

(C) SAP AG AC290 6-29


External Heating Expenses Settlement

Business Business Business


entity entity entity

Heating system Fuel Heating system


e.g. Oil
Gas
...
7777 Coal 1111
...

Settlement Settlement Settlement Settlement


unit unit unit unit

Settlement Company
© SAP AG 1999

You can make the heating expenses settlement internally or externally. If you handle it internally, the
same program procedure applies as for operating costs settlement.
External heating expenses settlement means: a service company is responsible for carrying out the
settlement. The service company receives information on the costs posted and the occupancy data of the
objects.
To make the external heating expenses settlement, you enter master data for heating systems in the
system.
The heating system combines a group of settlement units that are jointly handled during a settlement run.
It also has a settlement unit where the settlement result is recorded; this is the "credit-side settlement
unit".
The data that is stored in connection with a heating system can be used for automatic data medium
exchange with settlement companies.

(C) SAP AG AC290 6-30


External Heating Expenses Settlement DME

External settlement
company

A-tape D-tape
Comparison of Settlement
evaluation groups results
(consumer numbers)
Adjustment of
M/L-
M/L-tape advance payments
Tenant/owner data and flat rates

Settlement period
Conditions
Advance payment
and flat rate totals

© SAP AG 1999

The exchange of information with a settlement company takes place via data medium exchange.
A-tape The system performs a comparison of evaluation groups using the A-tape produced by the
settlement company. The consumer numbers of your company (for example rental agreement number,
tenant number) are assigned to equivalent evaluation groups of the settlement company. You pass on
your consumer numbers to the settlement company beforehand in the form of standardized forms.
M/L-tape At the end of each settlement period, you prepare the tenant/property tape and pass it on to the
settlement company. The tape contains all the relevant data that the settlement company needs for the
heating expenses settlement. The data is taken from the master data of the rental agreement, rental unit
and heating system. The data structure is based on the business entities that are assigned to the heating
system. The costs per heating system are passed on separately.
D-tape The settlement company provides you with the settlement results on the D-tape. You then import
this data into the system. You receive a complete settlement per heating system as well as individual
settlements which can be passed on to the tenants.
Report on heating costs A report is available showing the heating costs for each heating system that can
be configured by the user and passed on to the settlement company as a printed list or an electronic file.

(C) SAP AG AC290 6-31


Carrying out the Settlement

Heating expenses
settlement
External settlement D-tape
company Calculate
and activate
adjustment of
Post settlement: advance payment

•Credit-side SU
Heating system
•Debit RU/RA
•Debit tenant
Credit-side SU
•Transfer posting AP
AE1 Costs
AE2 Costs
AE3 Costs

© SAP AG 1999

Each heating system has a credit-side settlement unit.

(C) SAP AG AC290 6-32


Service Charge Settlement Reports

Distribution of settlement result


Credit/receivable RA
Balance list rental agreements
Allocation per tenant
Apportionment units
Posting log for settlement
Rental units/agreements
Non-cumulative values
Rental agreements
by tenant By settlement unit

Rental units by tenant By service charge key

Service charge/heating expenses By cost element


settlement Cumulative values
Overview of external heating Actual line items
expenses
Commitment line items
Itemization for settlement units
Settlement result (apportionment
result by SU or by RA)
© SAP AG 1999

Call up the following reports to see what data is stored:


Master Data/Contracts - Overviews - Apportionment Units - Rental Units/Agreements
Controlling/Settlements - Service/Heating Cost Settlement - Settlement Unit Postings - By Settlement
Units
Controlling/Settlements - Service/Heating Cost Settlement- Settlement Result (Apportionment Result)
Controlling/Settlements - Service/Heating Cost Settlement - Distribution of Settlement Result
(Reference Factors)
Controlling/Settlements - Service/Heating Cost Settlement - RA Credit/Receivables

(C) SAP AG AC290 6-33


Service Charge Settlement: Unit Summary

You are now able to:


Explain the service charge settlement process with
the following steps:
Creating the infrastructure
Posting vendor invoices
Implementing the service charge settlement itself
Adjusting advance payments

List the factors influencing the settlement unit and


rental agreement
Describe the relevant postings

© SAP AG 1999

(C) SAP AG AC290 6-34


Service Charge Settlement Exercises

Unit: Service Charge Settlement


Topic: Service Charge Infrastructure, Service Charge
Settlement

At the conclusion of this exercise, you will be able to:


• Create the infrastructure necessary for the service charge settlement
Simulate and execute the service charge settlement

Due to the use of your property, service charges are incurred (water
consumption, heating expenses, gardening costs, garbage collection and
so on). Your tenants make advance payments or flat-rate payments, which
form part of the service charge settlement. You apportion the costs
between the tenants according to various apportionment factors (area or
number of persons).

Note that service charge settlements can only be made for periods of time that started and finished
prior to the date on which you want to post the service charge settlement.

6-1 Change your business entity by entering a predefined value that is a settlement variant
to be used in your settlement units.

6-2 Create a participation ID (valid from 1 January of the previous year) that contains two
of the rental units and another participation ID that contains all three rental units.

6-3 Create a settlement unit (valid from 1 January of the previous year) for property tax
and assign this settlement unit to the first participation ID. The costs should be
apportioned according to living and usable area (settlement period 1/1 to 12/31).

6-4 Create a settlement unit for street cleaning and garbage collection and assign this
settlement unit to the second participation ID. The costs should be apportioned
according to the number of people (same settlement period as above).

6-5 Generate the cost collectors for the settlement units for the period 1/1 to 12/31.

6-6 Post the invoices for the previous year to the G/L account 470400 and make an
auxiliary account assignment to the settlement units. Use vendor accounts 3450 (tax
office) and 3457 (garbage).

(C) SAP AG AC290 6-35


6-7 Change the rental agreements for your rental units by postgenerating the settlement
participation and, if required, maintain the apportionment units (persons).

6-8 Make a debit position for December of the previous year and post the incoming
payments to the three rental agreements.

6-9 Enter the data for the simulation and save the values as a variant. Simulate the service
charge settlement for the previous year and check the logs.

6-10 Carry out a full settlement with the "Adjust advance payments?" indicator flagged.

6-11 Process the session with the transfer postings.

6-12 Display the results in the tenant account sheet or on the customer account.

6-13 Display the "Settlement result" report.

6-14 (*) Activate the advance payment adjustments.

6-15 (*) Print the correspondence and display the spool request.

(C) SAP AG AC290 6-36


Service Charge Settlement Solutions

Unit: Service Charge Settlement


Topic: Service Charge Infrastructure, Service Charge
Settlement

You can use the rental units you created in Exercise 3 for this
exercise. Make sure that your rental units have been released for
account assignment (status REL). Otherwise proceed as in the
solutions for the "Rental Accounting" Unit, Exercise 4 "Vacancy
Debit Position".

6-1 Accounting → Real estate management → Master data → Objects → Business entity
→ Change

Reference factors tab

Field name or Data type Values


Predefined operating costs Yearly (1/1 to 12/31)

6-2 Accounting → Real estate management → Master data → SCS infrastructure →


Participation ID → Maintain

Or:
Accounting → Real estate management → Service charge settlement → SCS
infrastructure → Participation ID → Maintain

6-3 Accounting → Real estate management → Service charge settlement → SCS


infrastructure → Settlement unit → Create

Use the first participation ID (apportionment unit living and usable area)

6-4 Same as 6-3

Use the second participation ID (apportionment unit persons).

(C) SAP AG AC290 6-37


6-5 Individual processing:
Accounting → Real estate management → Service charge settlement → SCS
infrastructure → Settlement unit → Change
Press Cost collector. Select the cost collector for the required settlement period and
choose Generate.

Generate the cost collectors for both settlement periods.

Collective processing:
Accounting → Real estate management → Service charge settlement → SCS
infrastructure → Generate cost collector
Select your business entity and enter the start and end dates for the settlement period.
Select the cost collector and choose Generate.

6-6 Accounting → Financial accounting → Accounts payable → Document entry→


Invoice

Enter the vendor (3450 or 3457), invoice date and amount.


Select the screen variant or account assignment template AC290.
Enter an amount for the debit posting.
Fill the following fields:
• Business entity
• Settlement unit
• Service charge key
• Reference date
Simulate the document (Document → Simulate).
Press "Post".

6-7 Single processing


Accounting → Real estate management → Rental → Rental agreement → Change
→ Rental agreement master data
Choose Settlement participation. Choose Bulk regenerate.

Collective processing
Accounting → Real estate management → Service charge settlement → SCS
infrastructure → Postgenerate settlement participation

Regenerating (postgenerating) is necessary for the training course as


the rental agreements are created before the service charge
settlement infrastructure. Usually, regeneration is not necessary as
the infrastructure does not usually change and the settlement
participation is automatically generated when a rental agreement is
created.

(C) SAP AG AC290 6-38


6-8 Debit position for December of the previous year
Accounting → Real estate management → Rental accounting → Postings → RA
debit position → Execute

Incoming payment
Accounting → Real estate management → Rental accounting → Incoming
payments/account maintenance → Individual document manual incoming payment
Bank account 100 000

6-9 Accounting → Real estate management → Service charge settlement → Service


charge settlement → Operating costs → Simulate
Field name or Data type Values
Business entity 1##
Start of settlement period Same as generated cost
collectors
End of settlement period Same as generated cost
collectors
Doc.type G/L account doc. SA
Doc.type customer doc. DR
Calculate credit/receivables X
Adjust advance payments? X
Press Save as variant.
Enter the variant name and description.
Save your entries.
You can call this variant by entering Get variant.

Make sure that the "Start of settlement period" and "End of


settlement period" fields have exactly the correct number of days
(according to the cost collectors).

6-10 Accounting → Real estate management → Service charge settlement → Service


charge settlement → Operating costs → Execute

6-11 System → Services → Batch input → Sessions


Select the session and choose Process session.
Choose Background and press Process.
Press Enter to update the status of the session until the status is "Processed".
(C) SAP AG AC290 6-39
6-12 Note: Processing the batch input beforehand can be a lengthy process and you should
take this into account for the transfer posting of the advance payments.

Accounting → Real estate management → Rental → Rental agreement → Display


Enter the rental agreement number and confirm.
Environment → Tenant account sheet or Display customer account

6-13 Accounting → Real Estate Management → Info System → Controlling/Settlements


→ Service/Heating Cost Settlement → Settlement result

6-14 (*) Accounting → Real estate management → Service charge settlement → Service
charge settlement → Operating costs → Adjust advance payment/flat rate → Activate
advance payment adjustment

6-15 (*) Accounting → Real estate management → Service charge settlement → Service
charge settlement → Correspondence → Settlement
Select the rental agreement and press Settlement (indiv.)

Display the spool request (System → Own spool requests).

(C) SAP AG AC290 6-40


Sales-Based Rent and Sales-Based Rent
Settlement

Sales-based rental agreement


Sales-based reports
Sales-based rent settlement

© SAP AG 1999

(C) SAP AG AC290 7-1


Sales-Based Rent: Unit Objectives

At the conclusion of this unit, you will be able


to:
Explain the options available for a sales-
based rental agreement
List the steps required to carry out a sales-
based rent settlement
Explain the similarity between sales-based
rents and the posting logic applied for
advance payments of service charges

© SAP AG 1999

(C) SAP AG AC290 7-2


Course Overview

Master Data

Third-
Rental Party
Management
Sales-Based Rent/
Rental Accounting Sales-Based Rent
Settlement

Rent Adjustment
Correspondence Cross-
Application
Functions
Controlling § Taxes
Information
Integration System

© SAP AG 1999

(C) SAP AG AC290 7-3


Sales-Based Rent: Business Scenario

You have made sales-based rental agreements


accompanied by the appropriate conditions
with your tenants. The tenants report back their
sales in periodic intervals.
When a sales-based rent settlement is being
used, payments are settled with the settlement
result. In this case, there might be an advance
payment adjustment.

© SAP AG 1999

(C) SAP AG AC290 7-4


Sales-Based Rental Agreement

Rental agreement
Adjustment type:
Sales-based rent
Adjustment data:

Variant 1 Variant 2

0 20,000 2.00% 0 20,000 2.00%


0 30,000 2.10% 20,000 30,000 2.10%
0 40,000 2.20% 30,000 40,000 2.20%
0 0 2.40% 40,000 0 2.40%

Example: Sales $35,000

$35.000 * 2.20% = $770 $20,000 * 2.00% = $400


+ $10,000 * 2.10% = $210
+ $5,000 * 2.20% = $110
$35,000 $720

© SAP AG 1999

You can define multiple sales types for each rental agreement.
The sales terms and conditions can be maintained in a time-dependent manner.
The reporting intervals and settlement variants can be freely defined.
You can also make so-called "zero-conditions". That means you can define an advance payment of $0.
The settlement is made according to the actual sales at the end of the settlement period.
Sales conditions can be fixed for minimum sales for each reporting interval and minimum rents for each
settlement period.
You can also specify a minimum rent for each graduation.
The sales gradings can be interpreted as amounts (money) or abstract figures (units of measure).

(C) SAP AG AC290 7-5


Sales-Based Rental Agreement with Several Sales
Types and Sales According to Quantity

Minimum

Up to 180 HL 6% $4100
AP sales-based rent beer Over 180 HL 8%
and so on...
AP sales-based rent food
Up to $42000 9% $3590
AP sales-based rent alcohol
Over $42000 10 %
AP sales-based rent tobacco and so on...

Up to $6000 18 % $1030
Over $6000 20 %
and so on...
Up to $7500 1.5 % $105
Over $7500 2.0 %
and so on...

Adjustment data for the


Sales reports for
adjustment type
each condition type
sales-based adjustment

© SAP AG 1999

If you would like to define the rent for rental agreements based on different levels of sales, you need to
create different conditions for sales-based rent advance payments. You can agree on individual amounts
or units (such as hectolitres, dollar amount, units) for each sales-based rent advance payment.

(C) SAP AG AC290 7-6


Overview of Sales-Based Rent Settlement

Sales-based
Sales reports 4711
rental agreement
4711agreement 01/98 1,000,000
Rental
02/98 1,200,500
1. Enter 03/98 985,000
... ...
sales
report
Settlement
Advance results
payments for 2. Implement posting
RA 4711
Signature sales
settlement
Condition
change
3. Adjust advance AP sales
payments

© SAP AG 1999

You have to enter the tenant's sales reports for sales settlement. You can enter values for several
reporting intervals at the same time.
You can also make settlements for several settlement periods at the same time.
If you have not entered the sales data for a sales interval, a memo acts as a reminder.
After a settlement has been made, you cannot enter any more sales reports.
You can adjust the advance payments during sales-based rent in the same way as you do for advance
payments for service charges.

(C) SAP AG AC290 7-7


Example Sales-Based Rental Agreement

Agreements:
Rent: $1000 month sales-based rent
Reporting interval: Every quarter
Settlement variant: Yearly (1/1 - 31.12.)
Agreed sales gradings:
(Yearly, based on Up to 12,000 10 %
settlement variant ) From 120,000 12 %

Reports:
1st Quarter 30,000
2nd Quarter 40,000
...

Total 130,000

Settlement:
Payable 130,000 * 12 % = 15,600
Paid 2,000 (12 + 1000 AP sales-based rent)

Remainder to pay 3,600

© SAP AG 1999

The above example shows the relationship between conditions, sales interval, sales gradings agreed upon
and settlement period, defined by means of the settlement variant.
Note that the sales gradings agreed upon are dependent on the settlement period and not on the
frequency that has been agreed upon for the payment of conditions or for the sales reports.

(C) SAP AG AC290 7-8


Clearing Advance Payments

Subledger General ledger

Balance sheet accounts

Reconciliation
Receivables Cash receipt
Customer
1000

account
3527 3000
3527 3000 1000
1000
Balance
AP requests AP Sales-based rent
J 1000 1000 J
J 1000 1000 J J 1000 1000 J 1000 U
J 1000 1000 J J 1000 1000 J 3000 U 1000 U
J 1000 1000 J 1000 U
1000 U
3000 U 1000 U
accounts

1000 U
Revenues

3527
P/L

Receivables from sttl $3527


Credits from transfer
Receivables from sales reports $3527 posting - 3000
AP sales-based rent 3 x $1000 No open items (AP)
Paid AP 3000 Balance for tenant: 527
© SAP AG 1999

The transfer posting for sales-based rent settlement is made in the same way as for the service charge
settlement.
The graphic shows the account after the transfer posting.
The tenant has paid the advance payments in full and there are no open items in the advance payments.
As is the case with the service charge settlement, the transfer posting for the advance payments can be
made according to the actual or planned principle. You have to set the "Transfer posting of AP
receivable?" indicator as needed.
The balance of sales-based settlement and the advance payments made is the amount that the tenant has
to pay or the amount that the landlord has to pay the tenant.
(In this example:
Receivables from settlement $3527, credit from transfer posting 3000, balance for tenant $527)

(C) SAP AG AC290 7-9


Sales-Based Rent Settlement Reports

Rental agreements
Sales
Sales per year
Sales history

© SAP AG 1999

Call up the following reports to see what data is stored:


Master Data/Agreements - Contracts - Sales - Sales per Year
Master Data/Agreements - Contracts - Sales - Sales History

(C) SAP AG AC290 7-10


Sales-Based Rent Settlement: Unit Summary

You are now able to:


Describe the possibilities of defining sales
gradings in a sales-based rental agreement
List the steps required to carry out a sales-based
rent settlement
Explain the similarity between sales-based rents
and the posting logic applied for advance
payments of service charges

© SAP AG 1999

(C) SAP AG AC290 7-11


Sales-Based Rent Exercises

Unit: Sales-Based Rent and Sales-Based Rent


Settlement
Topic: Sales Based Rental Agreement, Sales
Settlement
At the conclusion of this exercise, you will be able to:
• Create a sales-based rental agreement
• Maintain sales reports
• Carry out a sales-based rent settlement

• You have made sales-based rental agreements with your


tenants. The tenants report back their sales in periodic
intervals. You carry out a sales-based rent settlement at the
end of the settlement period. In the sales-based rent settlement,
incoming payments are cleared against the settlement result
(derived from the fixed sales gradings and the sales reports).

7-1 Create a new rental unit and rental agreement with adjustment type graduated rent. Specify a
condition type for "advanced payment sales-based rent" of $ 1000 per month, a yearly
settlement variant, a six-monthly reporting interval and graduated sales as follows: up to
120,000 - 10%, over 120,000 - 12%. Activate the rental agreement.

7-2 Carry out the debit position for the previous calendar year and post the incoming payment.
Take account of taxes in the incoming payment.

7-3 Generate sales reports for the settlement period for a total amount of $ 130,000.

7-4 Simulate the sales settlement and check the result.

(C) SAP AG AC290 7-12


Sales-Based Rent Solutions

Unit: Sales-Based Rent and Sales-Based Rent


Settlement
Topic: Sales-Based Rental Agreements, Sales
Reports, Sales Settlements

7-1 Create rental unit:


Choose a commercial usage type.
Menu path: See the solutions to the "Master Data" unit.
Create rental agreement:
Menu path: See the solutions to the "Rental" unit.
Insert condition type "advance payment sales-based rent " ($ 1000). Branch to the sales
settlements.
Enter the following values in the "Sales from/upto" fields: first sales grading: 0 and 120
respectively, second sales grading: 0 and 0 respectively.

7-2 See "Rental Accounting" unit.

7-3 Accounting → Real estate management → Rental accounting → Sales-based rents


→ Rent reports → Maintain

7-4 Accounting → Real estate management → Rental accounting → Sales-based rents


→ Sales settlement → Simulate
Enter data in the business entity, rental unit, sales types and start/end of settlement
period fields.
Check the result calculated by the system.

(C) SAP AG AC290 7-13


General Contract

Contents:
General contract maintenance (tenant rental)
Resubmission
Costs distribution
Relationship between object availability and tenant
rental
Periodic postings

© SAP AG 1999

(C) SAP AG AC290 8-1


General Contract: Unit Objectives

At the conclusion of this unit, you will be able to:

Create a tenant rental agreement with the


respective partners, conditions and deadlines
Define resubmission
Specify the distribution of costs incurred on the
contract
Carry out the periodic posting for your contract
Execute the contract renewal

© SAP AG 1999

(C) SAP AG AC290 8-2


Course Overview/General Contract (Tenant Rental)

Master Data

General Contract
Rental
(Tenant Rental)

Rental Accounting Settlement

Rent Adjustment
Cross-
Correspondence
Application
Functions
Controlling § Taxes
Information
Integration System

© SAP AG 1999

(C) SAP AG AC290 8-3


General Contract: Business Scenario

You tenant-rent real estate objects from a third


party. The system helps you to manage and monitor
all the related tenant rental agreements. You first
create a tenant rental agreement and define the
resubmission rules so that the system reminds you
on certain dates to check the contract and renew it
if necessary. You also specify how to distribute the
costs incurred on the contract to subobjects.
Carry out a periodic posting.
Renew the contract.

© SAP AG 1999

(C) SAP AG AC290 8-4


Overview of Contract Data

Partner Objects
Landlord with vendor account Assignment of explicitly tenant-rented objects
(main contractual partner)
Hierarchical subobjects are also implicitly tenant
Partner with a vendor account rented)
Administrators and so on
Conditions
General data Preassignments
Contract type (vendor) Periodic conditions
Date of contract conclusion One-time conditions
Main contract Due date
Adjustment type Partner or cost center per condition type
Term Resubmission
Contract start and end date Resubmission rules
Renewal option Resubmission reasons
Notice type and notice rule Start date
Payment data Costs distribution
Date of first posting Distributed to objects
Business area According to equivalence number
Profit center
Currency (local, contract, display Notes
currency) Send object with note
© SAP AG 1999

(C) SAP AG AC290 8-5


Conditions and Periodic Postings

Defining contract conditions


Default conditions
Periodic conditions
One-time conditions
Due date
Partner or cost center per condition type

Cash flow

Periodic postings
© SAP AG 1999

You may use the default values when you create new condition items.
You can specify one-time conditions as well as periodic conditions.
You can specify an exact due date for each condition item. Note that the due date you choose has to lie
within the validity period.
Example Frequency 1, month of January => Possible due date from 01/01 to 01/31 ! The system
automatically calculates the next due dates.
For each condition type, you can assign a partner or, in the case of in-house rental, a cost center.
The cash flow is generated from the condition items.
The planned records that are due become open items in the periodic posting run.

(C) SAP AG AC290 8-6


Resubmission

Resubmission
Resubmissionrules
rules
Examples
Examples
&1
&1months/&2
months/&2days
daysbefore
beforecontract
contractend
end
As
Asof
ofdate
date&2
&2every
every&1
&1months
months
&1
&1months/&2
months/&2days
daysbefore
beforerenewal
renewal
Resubmission
Resubmission on contractstart
on contract startdate
date

Parameters Resubmission
Resubmissiondate
date
Parameters
Date,
Date,year,
year,month
month
Figures
Figures
Boolean
Booleanvalues
values

Resubmission
Resubmissionreasons
reasons
Examples
Examples
General
Generalresubmission
resubmission
Check
Checkrenewal
Check
renewal Report
Checkregional
regionallocation
location
Check
Checkconditions
conditions

Start
Startdate
date
© SAP AG 1999

You can define your own rules for resubmitting contracts. For instance, you can check all the contracts
in the system in which the contract terms are due to expire. A report selects these contracts on a specific
date and displays them to the user. To do so, the system uses the settings defined in the contract master
data, such as the contract term and notice dates (period or deadline regulation) and checks the
resubmission dates. You can assign several rules to each contract, such as a renewal rule or a check of
conditions.
This function supports the following business processes:
Contract renewals
Contract processing (for instance checking conditions, rent adjustment)
Giving notice on contracts
After processing the particular business process, you can mark the resubmission as being completed.

(C) SAP AG AC290 8-7


Contract Renewal

Renewal
Renewaloptions
options
Example: "Any number of times by one year"

Settings
Settings
Changeable
Changeable
Own
Ownapproval
approvalrequired
required
Partner's
Partner's approvalrequired
approval Renewal
required Renewaldata
data

Date
Date
New
Individual Report
Newcontract
contractend
enddate
date
processing

© SAP AG 1999

(C) SAP AG AC290 8-8


Distribution

Equivalence no. of distribution


If not equal to 0, then costs
If 0, then all costs distributed to objects
distributed
Conditions
to contract Objects
Contract Building 10

Rental unit 40

Rental unit 40

Total 10 Total 90

Freely definable base equivalence numbers (e.g. 100)


© SAP AG 1999

For each condition type, you can decide if costs are to be distributed to the objects, and the respective
cost share per object. This lets you distribute costs correctly to the objects according to where they are
incurred. This also lets you post costs to a settlement unit and to pass these on to the various rental units
and contracts in the service charge settlement.
The following functions are available:
Generate distribution: the costs are distributed evenly to the assigned objects (each cost has the same
equivalence number)
Simulate distribution: overview of posting results
Distribution overview: overview of the object and contract share
You can specify a time limit for the distribution date.
If you change the distribution, no subsequent postings are made. If the costs distribution was incorrect,
you have to cancel the periodic postings or the single documents. (If conditions are changed
retroactively, follow-up postings are made in the same way as the debit position.)

(C) SAP AG AC290 8-9


Contract Hierarchy - Schematic Display

Tenant rental agreement (vendor)

Subcontract - cleaning (vendor)

Building 1

Subcontract - elevator maintenance (vendor)

Building 1

Business entity 0815

Building 1

Rental unit 1

Rental agreement 1

Rental unit 2
Contracts
Rental agreement 2
Objects

© SAP AG 1999

You can use the contract hierarchy to assign different contracts to a main contract.
The hierarchy displays the contracts that exist for each Real Estate object. If a building should come up
for sale, it is easy to check if a contractual obligation exists on the planned selling date.
You can also see at a glance if any dependencies exist between contracts; for instance, you can
immediately recognize if contracts have to be terminated on a certain date.

(C) SAP AG AC290 8-10


Tenant Rental and Availability

Time-dependent attributes that describe


the availability
If an object is tenant-rented, the "tenant-rented" attribute
is automatically set for this object and all its subobjects
in the object hierarchy

Attributes:
In own portfolio
Tenant-rented
Objects: Not available
Business entity Partly unavailable
Building Available

Property
Rental unit
3 2 1

© SAP AG 1999

You can display and change the availability of Real Estate objects (business entity, building, property,
rental unit).
If the object, or a superior object in the hierarchy, is tenant-rented, the system automatically sets the
availability status to "tenant-rented". You can only change the status indirectly when you create or
change the tenant rental agreements.
If a newly created object (that first receives the attribute "In own portfolio for whole period") is included
in a tenant rental agreement, the object is automatically identified as being "Tenant-rented" for the tenant
rental period as well as being "Not available" for the rest of the period.
Note how availability affects the rental process: you can only rent objects with status "In own portfolio",
"Tenant-rented" or "Available". You cannot rent objects that are "Not available" or "Partly not
available".

(C) SAP AG AC290 8-11


Relationship Between Availability and Tenant Rental

Example
01/01/1999 07/01/1999 10/31/2008 12/31/2013

Assign tenant rental


Create object Buy object Sell object
agreement

Set manually Automatically Set manually Set manually


to set to to St
to at
us

Unavailable Tenant-rented In own portfolio Unavailable

Pe
pr r m
oc itt
es ed
se
Tenant rental Rental Rental / Tenant rental s
internal/external external/internal tenant rental internal/external

Ow
re ne
lat rs
i o hi p
ns
hi
Third-party Third-party
Ownership
Third-party p
ownership ownership ownership

© SAP AG 1999

The following factors affect the availability of a Real Estate object with regard to tenant rental and
rental:
Change of ownership
Construction work
Change of contract term
There is also a "mixed" availability status. This can be used for objects that have at least two different
statuses (for instance, a business entity has "mixed" status since lower level buildings are 1/3 owned and
2/3 tenant-rented.
The status of the object directly affects the permitted rental process. The function guarantees that an
object can only be rented as long as it belongs to the landlord or is tenant-rented (in other words,
available). The object availability function helps the user to manage the Real Estate objects. The object
availability function helps the user to process and manage the Real Estate objects.

(C) SAP AG AC290 8-12


Tenant Rental Overview

Tenant
Tenant rental
rental agreement
agreement

Business
Business entities
entities Conditions
Conditions General
General
Buildings
Buildings •• one-time
one-time contract
contract
Contract
Contract
Properties
Properties •• periodic
periodic
Rental
Rental units
units (recurring)
(recurring)

Distribution
Distribution Partner
Partner

Vendor
Vendor

Cost
Cost center
center

© SAP AG 1999

You use the "general contract" with a vendor view to map the tenant rental process.
The tenant rental agreement may be the main contract for other general vendor contracts.
You create a business partner for the contract and assign a vendor to the partner. In the case of internal
tenant rentals, a cost center is used instead of a business partner.
You assign Real Estate objects to the tenant rental agreement.
The conditions can either be agreed on periodically (recurring) or on a one-time basis.
You can define how costs are distributed to lower level objects in the object hierarchy.

(C) SAP AG AC290 8-13


General Contract Overview

General
General contract
contract

Business
Business entities
entities General
General
Conditions
Conditions
Buildings
Buildings contract
contract
Contract
Contract
•• one-time
one-time
Properties
Properties •• periodic
periodic (recurring)
(recurring)
Rental
Rental units
units
NOTE!!
You cannot map the complete
Partner
Partner rental process of Real Estate
Distribution
Distribution objects with the customer view
of the general contract as some
key functions, such as the
Vendor
Vendor service charge settlement and
application and offer
management, are not supported.
Customer
Customer You still have to use the rental
agreement object for these
functions.
Cost
Cost center
center

© SAP AG 1999

The general contract is a flexible contract that supports different rental views:
Vendor (tenant rental)
Customer (for instance the hiring of rights, such as rights of way)
Vendor/creditor (for instance tenant rental with subsequent hiring of rights)
The different views are defined by the contract type.
The rental agreement only maps customer rental processes. The general contract can map customer AND
vendor rental processes.

(C) SAP AG AC290 8-14


General Contract & Rental Agreement - Differences

Tenant rental agreement Rental agreement


Contractual relationship between BE, Contractual relationship with RU only
BU, PR, RU
References exactly one rental unit at any
Several objects can be assigned in same one time
period
Tenant is customer
Landlord is creditor
Debit positions
Periodic postings
Receivables - incoming payments
Payables - outgoing payments
Rent reduction by contract partner
Rent reduction by R/3 user
Resubmission
Enhanced resubmission
Renewal
Enhanced renewal
Notice
Rent adjustment
Service charge settlement

© SAP AG 1999

How does a general contract differ from a rental agreement?


The contractual relationship is not limited to the rental unit. Relationships can exist with other objects,
such as the business entity.
A rental agreement references one rental unit only. A general contract may reference several objects.
A rental agreement "occupies" a rental unit in the sense that at any one time only one rental agreement
can exist for a rental unit. This does not apply to the general contract: at any one time several contracts
can exist for one and the same object. General contracts can map different legal relationships of the
object (such as tenant rental, a contract with a property security company or certain rights that have been
assigned with regard to the object).
As with the debit position for the rental agreement, periodic postings can be carried out on the general
contract. Vendor or customer postings can be made. It is also possible to make a G/L account posting
and distribute the costs to the objects involved. The rules for distributing the costs are defined in the
contract.
The general contract has enhanced functions to monitor deadlines and to define renewal options.
Resubmission dates can be defined for the general contract. This ensures that certain activities defined
in the contract (such as notice) are processed in good time.

(C) SAP AG AC290 8-15


General Contract: Unit Summary

You are now able to:


Create a tenant rental agreement and make the
necessary settings for subsequent processes
(contract renewal, resubmission, notice, periodic
postings)
Carry out the above processes

© SAP AG 1999

(C) SAP AG AC290 8-16


General Contract Exercises

Unit: General Contract


Topic: Tenant Rental

At the conclusion of this exercise, you will be able to:


• Create a tenant rental agreement with conditions and
deadlines
• Define resubmission rules
• Specify the distribution of costs and revenues incurred on the
contract
• Carry out a periodic posting for your contract
• Renew the contract

You tenant-rent real estate objects from a third party. The system
helps you to manage and monitor all the related tenant rental
agreements.
First create a tenant rental agreement and define the resubmission
rules so that the system reminds you on certain dates to check the
contract and renew it if necessary.
Specify how to distribute the costs incurred on the contract to
subobjects.
Carry out a periodic posting.
Renew the contract.
8-1 Preparation: Create the landlord from whom you are renting the real estate object as a
vendor. Copy the vendor from 100100.
Create a tenant rental agreement and carry out the following steps:

8-1-1 Name the contract and enter the contract start date and adjustment type (free
adjustment).

8-1-2 Set the rental start for 01/01/1999 and rental end for 12/31/2000. Choose the renewal
option "three times by 1 year, any number of times by 4 months".

8-1-3 Assign the contract to a business entity.

(C) SAP AG AC290 8-17


8-1-4 Enter data for the vendor that you created and the tax indicator (V1). Agree on a
credit-side basic rent.

8-1-5 Enter resubmission rule R01 ("As of date &1 every &2 months") where &1 =
"Exactly a month ago" and &2 =1.

8-1-6 Distribute the costs and revenues equally among all the subobjects.

8-1-7 Save your contract. Activate the contract.

8-2 Generate the open items with the periodic posting.


8-3 Resubmit your contract. Branch to the contract display and set the status of the resubmission
to complete.
8-4 Renew your contract.

(C) SAP AG AC290 8-18


General Contract Solutions

Unit: General Contract


Topic: Tenant Rental Agreement

8-1 Accounting – Financial Accounting – Accounts Payable – Master Data –


Create
Field name or Data type Values
Company code See "Exercise Data"
Account group Vendor
Reference vendor 100100
Reference company code 1000

Enter the name and address of the vendor and save your entries.
Note the number of the vendor that you have created.

8-1-1 Accounting – Real estate management –Real estate general contract -


Contract – Create

Field name or Data type Values


Contract type Tenant rental agreement
(vendor)
Company code See "Exercise Data"

Press Enter.
Enter a contract name.
8-1-2 Term tab
8-1-3 Objects tab
8-1-4 Conditions tab
8-1-5 Resubmission tab
8-1-6 Distribution tab. First press Expand object and then Generate distribution.
8-1-7 Press Save. Call up the contract in the change mode and press Activate
contract.

(C) SAP AG AC290 8-19


8-2 Accounting – Real estate management –Real estate general contract - Contract –
Postings - Periodic postings
First simulate the activity and, if the result is correct, do an update run.

8-3 Accounting – Real estate management –Real estate general contract - Contract –
Processes – Resubmission
Press Display (contract).
Mark your selected entry as being complete.

8-4 Accounting – Real estate management –Real estate general contract - Contract –
Processes – Renewal
Mark the required entry, choose Execute renewal, and save your data.

(C) SAP AG AC290 8-20


Controlling

Contents
Enterprise Controlling ⇒ Profit center
Controlling ⇒ Cost centers and Real Estate
objects as cost objects

© SAP AG 1999

(C) SAP AG AC290 9-1


Controlling: Unit Objectives

At the conclusion of this unit, you will be able


to:
List the Controlling objects used in R/3 Real
Estate Management
Describe the relationship between Real
Estate objects and profit centers
Explain how to carry out cost and revenue
planning on Real Estate objects
Describe how to settle Real Estate objects on
other account assignment objects

© SAP AG 1999

(C) SAP AG AC290 9-2


Course Overview

Master Data

General
Rental
Contract
(Tenant Rental)
Rental Accounting Settlement

Rent Adjustment
Correspondence Cross-
Application
Functions
Controlling § Taxes
Information
Integration System

© SAP AG 1999

(C) SAP AG AC290 9-3


Controlling: Business Scenario

In your Controlling object, you want to plan


costs and revenues, compare them with the
actual values and commitment values.
You make an actual posting (for example, in
Plant Maintenance or Materials Management)
with Real Estate account assignment and
internal cost allocation.
You want to make a settlement from individual
Controlling objects to others (for example, from
maintenance orders to a building).
You use Profit Center Accounting for your
Enterprise Controlling.

© SAP AG 1999

(C) SAP AG AC290 9-4


CO Objects in Real Estate Management

RE objects
(cost and revenue recipient)
MM CO • Business entity
Order • Building
• Properties
PM FI • Rental unit
• Rental agreement
• General contract
PS • SU cost collector
• Management contract

RE
Standard CO objects
RA revenue • Cost center (cost recipient only)
• Order

© SAP AG 1999

Cost and revenue objects belong to internal Controlling; they are referred to as CO objects or account
assignment objects. These may also be Real Estate objects, in addition to the "classic" Controlling
objects (cost center, order).
The link between internal accounting (Controlling) and external accounting (Financial Accounting) is
established by assigning cost elements and revenue elements to accounts.
You update the costs and revenues on Real Estate objects by entering postings in Financial Accounting
with auxiliary account assignment on a Real Estate object in the same way as for other postings with
account assignment.

(C) SAP AG AC290 9-5


Planning

Object Controlling Scenario


1. Cost and revenue planning

(m) manual / (a) automatic planning


Building
Plan Commit Actual
Plant maint. (m) 10000

Non-apport. (m) 5000


serv.charges

Dir. int. AA (a) 3500


(gardener) Job
planning
Rent (m) 25000 50 h gardener

© SAP AG 1999

You plan costs (plant maintenance, administration, service charges, and so on), revenues (rent) and
activities for each Real Estate object and cost element.
You generally enter plan values manually. However, in the case of activity allocation, these may also be
automatically derived from the number of hours entered for a particular activity type.
You can use MS EXCEL to support your planning activities. To do so, you have to flag "Integrated
Excel" for the planning layout in question. If you then call up the planning activity you require with the
respective planning layout, MS Excel is automatically launched. Alternatively, you can do your planning
offline and upload the data into the system.

(C) SAP AG AC290 9-6


Direct Actual Posting

Object Controlling Scenario Enterprise


Controlling
2. Direct actual posting/account assignment Profit Center
Accounting

Building
Plan Commit Actual

Non-apport. MM 5500 6000


Update
serv.charges

Profit center

Rents -24500
RU A (RA a) -7000
RU B (RA b) RE -8000
RU C (RA c) -9500

© SAP AG 1999

The actual values are derived from postings with account assignment on Real Estate objects.
If Real Estate account assignment has been specified for an order, the system generates a commitment.
Costs and revenues of the Real Estate objects are aggregated in reporting on the highest hierarchical
level applicable (Rental agreement -> Rental unit -> Building/Property -> Business entity).
(The graphic illustrates that rent revenue resulting from rental agreements can be displayed as
cumulative values on the level of the building.)
If the Real Estate objects are assigned to profit centers, these are updated when postings are made.

(C) SAP AG AC290 9-7


Direct Internal Activity Allocation

Object Controlling Scenario Enterprise


Controlling
Profit Center
3. Direct internal activity allocation Accounting

Building
Plan Commit Actual

Update

CO 60 h
Dir. int. AA (3) 4200
(e.g. gardener) Profit center

© SAP AG 1999

The actual costs on the objects are derived from the activity consumption that is entered in CO activity
allocation, for which a sender cost center and a receiver Real Estate object have to be specified.

(C) SAP AG AC290 9-8


Settlement

Object Controlling Scenario Enterprise


Controlling
4. Settlement function Profit Center
Accounting

Building
Plan Commit Actual
Plant maint. PM 8000
500
Update

Profit center

Rents
RU A (RA a)
RU B (RA b) 500
RU C (RA c)

© SAP AG 1999

Costs collected for an object can be settled on other CO objects.


In the CO settlement, you can periodically settle costs collected on Real Estate objects to one or more
CO account assignment object.
Settlement rules must be clearly defined for each object. You can define equivalence figures, percentage
rates or absolute amounts. Settlements can be made on several objects; not all costs have to be settled
completely.
Apart from settling Real Estate objects to other account assignment objects (such as from a building to a
cost center (RE -> CO)), you can also settle costs from other CO objects to Real Estate objects (such as
from a PM order to a building or rental agreement (PM -> RE)). In the latter case, you have to define the
settlement rule in the PM objects.
The graphic illustrates the settlement of costs from PM to RE. A PM order for USD 8000 (say, for
painting the exterior of a building) is settled on the building, and another PM order for USD 500 is
settled on the rental agreement for carrying out repairs for which the tenant is responsible.
The graphic also illustrates that the costs settled between the PM order and the rental agreement are not
only displayed on the rental agreement but also on the building.

(C) SAP AG AC290 9-9


Real Estate Controlling - Overview

Object Controlling Scenarios Enterprise


1. Cost and revenue planning Controlling
2. Direct actual posting Profit Center
3. Direct internal activity allocation Accounting
4. Settlement function

(m) manual / (a) automatic planning


Building
Plan Commit Actual
Plant maint. (m) 10000 PM 8000
500
Non-apport. (m) 5000 5500 6000
MM Update
serv.charges (4)

CO 60 h
Dir. int. AA (3) (a) 3500 4200
(e.g. gardener) Profit center
Job planning
Rents (m) 25000 50 h gardener -24500
RU A (RA a) -7000
RU B (RA b) RE -8000
(2) 500
RU C (RA c) -9500
© SAP AG 1999

(C) SAP AG AC290 9-10


Real Estate Profit Center (PC)

Standard profit center hierarchy


Business entities

Offices Retail Residential

Offices Retail Residential


New York New York New York

Offices Retail Residential


Washington Washington Chicago

Retail
Chicago
Alternative profit center hierarchy
Business entities

New York Washington Chicago

Offices Offices Retail


New York Washington Chicago

Retail Retail Residential


New York Washington Chicago

Residential
New York

© SAP AG 1999

A profit center is a subarea of a company responsible for its own results. Information about the success
of this company subarea is available in Profit Center Accounting.
The assignment of profit centers to Real Estate objects ensures that the assigned profit centers are
automatically updated for all postings to these Real Estate objects.
If no assignment has been made for the account assignment object, the assignment for the superior object
in the hierarchy is used.
The profit center reports can be displayed in a standard hierarchy and also in alternative profit center
hierarchies.

(C) SAP AG AC290 9-11


Controlling Reports

Profit Center Accounting


Planned/actual comparisons
Period comparisons
Real Estate Controlling objects ROI key figures
(by objects/tenants/owners/cost elements) Line items - display
Period overview actual or commitment or planned Statistical key figures
Period comparison actual or commitment or planned Master data index
Year overview actual or commitment or planned Diverse list-oriented reports
Year comparison actual or commitment or planned
Actual/commitment/planned/deviation
Actual/area unit
Actual/apportionment unit

Line items actual or commitment


or planned

© SAP AG 1999

Call up the following reports to see what data is stored:


Controlling/Settlements - Controlling RE Objects - Non-Cumulative Values - One Currency - By
Objects - Actual: Period Comparison
Controlling/Settlements - Controlling RE Objects - Non-Cumulative Values - One Currency - By Cost
Element - Actual: Period Comparison
Controlling/Settlements - Controlling RE Objects - Cumulative Values - Actual Line Items
Profit Center - PC Reporting - Reports for Profit Center Groups - Actual Data - Actual Comparison
Report
Profit Center - PC Reporting - Profit Center Reports - Actual in 2 Time Periods

(C) SAP AG AC290 9-12


Controlling: Unit Summary

You are now able to:


List the Controlling objects used in R/3 Real
Estate Management
Describe the relationship between Real Estate
objects and profit centers
Explain how to carry out cost and revenue
planning on Real Estate objects
Describe how to settle Real Estate objects on
other account assignment objects

© SAP AG 1999

(C) SAP AG AC290 9-13


Controlling Exercises

Unit: Controlling
Topic: Profit Center, Costs and Revenues on Real Estate
Objects

At the conclusion of this exercise, you will be able to:


Evaluate Controlling and Profit Center reports

You want to evaluate periodic reports by Real Estate object and by cost
element. You also want to implement exception reporting.
Your company intends to implement Profit Center Accounting. You use
the information system to view the effect of postings on the profit center.

9-1 Display the following reports in the information system:


9-1-1 Controlling - Non-cumulative values - Structure-oriented - Actual period
overview
Enter the selection criteria for your business entity; call up the report via a set if
possible.
Branch to the CO and FI documents on which the revenues from your rental
agreements are posted.
Make a selection of all business entities if you want to evaluate a large dataset.
Navigate from the object view to the cost element view. Display the report
subdivided into cost element groups.

9-1-2 Controlling - Cumulative values - Actual line items


Branch to the FI documents.
9-1-3 (*) Create an exception for the report "Actual: Period Overview" for January
1998. Specify that objects with revenues of at least X appear green and
revenues below Y appear red. Choose the values for X and Y in such a way that
the values are either marked red or green or not. Expand the hierarchy.
Change to a display with no hierarchy.

(C) SAP AG AC290 9-14


9-2 (*) Post costs to your Real Estate objects. Use accounts of account group 4 and
accounts 4150000 (External proc. costs), 451000 (Building maintenance), 470800 (RE
Rental admin.). Call up the "Actual: Period Overview" report again by cost elements
this time.

9-3 What profit centers are assigned to your rental units?

9-4 View the profit center reports:


List-Oriented Reports - Profit Center Group: Quarterly Comparison of Actual Data

(C) SAP AG AC290 9-15


Controlling Solutions

Unit: Controlling
Topic: Profit Center, Costs and Revenues on Real Estate
Objects

9-1
9-1-1 Accounting → Real Estate Management → Info System →
Controlling/Settlements → Controlling RE Objects → Non-Cumulative
Values → One Currency → By Objects → Actual: Period Overview
Selection via sets, see Solutions to Exercise 6, "Rental" Unit.
Branch to the documents: Place your cursor on a revenue of a rental agreement
item and press Call up report. Choose Document to display the FI document
and Detail to display the line item.
Double-click on Cost element (in the navigation field) and then on Object to
change the view. Press the hierarchy and then choose the value RE_ALL as
Cost element group.
9-1-2 Accounting → Real Estate Management → Info System →
Controlling/Settlements → Controlling RE Objects → Cumulative Values →
Actual Line Items
9-1-3 Call up the report.
Mark the "January" column and choose Extras -> Create exception. Flag
"Column" and press Enter. Define your own text for the exception in the next
screen and determine the threshold conditions:
Lower threshold Upper threshold
Active Active
Threshold value X Y
Color Green Red
Condition Lesser than or equal to Greater than or equal to

Press Expand.
Press Hierarchy, then Hierarchy selection and then No hierarchy.

Note:

(C) SAP AG AC290 9-16


If you save your report definition, the exception and the hierarchy display are
also saved and can be used every time you call up reports.

9-2 Accounting → Financial accounting → General ledger → Document entry→ G/L


account posting

9-3 Accounting → Real estate management → Master data → Objects → Rental unit →
Display

9-4 Accounting → Real Estate Management → Info System → Profit Center Accounting
→ List-Oriented Reports → Profit Center Group: Quarterly Comparison of Actual
Data

Field name or Data type Values


Controlling area 1000
Fiscal year 1999
Profit center or value(s) 1410 - 1480

(C) SAP AG AC290 9-17


Integration

Contents:
Plant Maintenance ⇒ using functional locations
Project System ⇒ projects (project structure elements)
Materials Management ⇒ Orders with account assignment on
Real Estate objects
Asset Accounting ⇒ assets and depreciation

© SAP AG 1999

Refer to the following units for other aspects of integration:


Profit centers -> Enterprise Controlling -> Controlling unit
Cost centers and Real Estate objects as account assignment objects -> Controlling unit
General ledger and auxiliary ledger accounting -> Financial Accounting -> Rental Accounting unit
Document link -> Cross-Application Functions unit

(C) SAP AG AC290 10-1


Integration: Unit Objectives

At the conclusion of this unit, you will be able


to:
List the components and the related
elements (apart from FI and CO) that are
integrated with Real Estate Management
Describe where to find these integrated
elements and how to process them

© SAP AG 1999

(C) SAP AG AC290 10-2


Course Overview

Master Data

General
Rental
Contract
(Tenant Rental)
Rental Accounting Settlement

Rent Adjustment
Correspondence Cross-
Application
Functions
Controlling § Taxes
Information
Integration System

© SAP AG 1999

(C) SAP AG AC290 10-3


Integration: Business Scenario

You are planning maintenance tasks for your


Real Estate objects on the basis of a
maintenance plan. You now have to enter the
unscheduled maintenance tasks arising from a
matter such as an unanticipated maintenance
request.
You order material or labor for the maintenance
task.
You are planning a new development or
extensive maintenance tasks.
You want to use the Asset Management
function for your Real Estate objects.

© SAP AG 1999

(C) SAP AG AC290 10-4


Link to Master Data

Adr BusAr PC CCtr Asset FL/WBS

BE x x x x

PR/BU x x x x x
Vacancy
RU x x x x x
Own
RA
x x x usage
Adr Address
x Attribute maintenance of objects possible BusAr Business area
PC Profit center
CCtr Cost center
LOGICAL inheritance: If no entry is maintained for an object that is FL Functional location
a lower-level object in the hierarchy, the entry for the higher-level object is WBS Work breakdown structure
BE Business entity
taken for evaluation
PR Property
BU Building
PHYSICAL copying: If an entry is not explicitly made, the entry for the RU Rental unit
higher-level object is taken RA Rental agreement
© SAP AG 1999

This graphic gives you an overview of the linking and integration possibilities existing in the master
data.

(C) SAP AG AC290 10-5


Functional Process in PM System

Unscheduled maintenance Scheduled maintenance


Direct
PM requirement/
order PM planning
creation notifications

Malfunction reports Maintenance plans

PM orders

Resources
Internal External
Material
activities activities

Reports

PM history
© SAP AG 1999

The PM maintenance functions support regular maintenance work as well as tasks arising from
malfunction reports.
For detailed information, refer to Course LO100.

(C) SAP AG AC290 10-6


Plant Maintenance (RE ⇔ PM)

RE PM
Business Func.
entity loc.

BU Func.

Completion confirmation
loc PM order

Rental Func. Func. Planned


unit loc. loc.
Func.
Actual
loc.
Func.
loc.
Rental Func.
unit loc.

© SAP AG 1999

The administrative aspect of the maintenance task settlement is made in the PM component. The
structure of the plant maintenance objects has to be established according to the plant maintenance view.
The Real Estate objects have to be appropriately linked to functional locations. The individual
maintenance tasks are represented by orders for functional locations.
You can plan the costs for the maintenance order.
When you create a PM order (for instance, a malfunction report), the planned costs are automatically
generated from the estimated duration of the task for the required activity type.
The completion confirmation triggers the change of planned costs to actual costs.
The orders appear in Real Estate Management reports.

(C) SAP AG AC290 10-7


Relationship Between RE Master Data and PM

Assignment of functional locations to Real Estate


objects
Business entity
Property
Building
Rental unit
Options
Assignments may be made but are not automatically
updated
Functional location is created automatically
Functional location is created and updated automatically
It is possible to restrict the assignment to 1:1 for each
object type
© SAP AG 1999

The assignment of Real Estate objects (business entity, property, building and rental unit) to functional
locations can be restricted to a 1:1 relationship for each object type. Every time you assign a functional
location to a Real Estate object, the system checks to see if a relationship already exists between this
functional location and another Real Estate object.
It is still possible to create functional locations for Real Estate objects automatically. You may specify if
the system should simply create and assign a functional location or if it should be updated each time the
Real Estate object is changed. Example: If you choose to make automatic assignments, the system takes
account of the Real Estate object hierarchy; this means that the functional location hierarchy is adapted
accordingly; if you now change the assignment of a building or you change the building hierarchy itself,
the functional location hierarchy is updated automatically.
Menu path in Customizing: Real Estate → Basic Settings → Set Link to Plant Maintenance →
Determine Link
See also the unit on Integration.

(C) SAP AG AC290 10-8


Project System Integration (RE ⇔ PS)

Construction project Extensive maintenance


RE obj. (BE) WBS BE

Plan costs,
budgeting WBS WBS BU
and posting

WBS WBS WBS RU


Project

Settlement

Increase in
value Other
Asset under
CO object
construction
Cost center Asset
RE object
Finished asset RE
obj.
© SAP AG 1999

Project System is very useful for new developments and extensive maintenance tasks.

Construction projects are usually entered as an acquisition in Asset Accounting when they are complete
and then they are linked with a Real Estate object.
A possible scenario is that the master data has already been created in the system before completion of
the object to ensure a smooth start-up.
You can activate costs for extensive maintenance measures by making a settlement to the asset. You can
assign depreciation on the asset to an internal order. Depreciation appears in reporting by assigning the
Real Estate object to the order.

(C) SAP AG AC290 10-9


Asset Accounting Integration (RE ⇔ AA)

RE AA
Depreciations
Reporting

Building Asset

Acquisition and net


Business
book value
entity

Property Asset

Acquisition
(= net book value)

Cost Settlement
center (either/or)
Order
© SAP AG 1999

You manage Real Estate assets (acquisition and retirement, transfer postings, depreciations,
appreciations) in Asset Accounting (R/3 FI-AA). The asset structure is determined from the accounting
point of view. Assets can be assigned to buildings and properties. In this case, you denote the asset class
as "real estate". You can assign several assets to a property or a building. If an asset is identified as being
a leading asset, the asset super number of this asset has to be the number of the business entity. (The
main usage type that can be used in account assignment is based on the main usage type of the leading
asset.)
Corresponding reports are available for the asset values in the information system.
Depreciation incurred on an asset is assigned to an internal order. This depreciation appears in reporting
if you assign the Real Estate object to the order.
You can settle the internal order that has the depreciation to the building or to a cost center.

(C) SAP AG AC290 10-10


Continuous Process: From MM to FI

Commitment
Purchase requisition increase
(possibly w/o acct assgnmt)
Account
assignment
Reference Entry
to
Order
Real Estate
Goods receipt Goods receipt
evaluated? not evaluated? Commitment
object:
increase
Business entity
Building
Reference Property
Rental unit
Cmmt reduction
Goods receipt Rental agreement
(for evaluated
goods receipt Cost collector
+ actual values)
Reference
Invoice receipt Cmmt reduction
(for evaluated
goods receipt
+ actual values)
© SAP AG 1999

When you create a purchase requisition or order, you can also carry out account assignment on the Real
Estate objects.
The commitments of the Real Estate object are updated when the order data is entered.
When an invoice is entered with the purchase order, the account assignment is transferred from the order
to the invoice. The commitment is cleared and replaced by the actual data.
You can evaluate commitment data for Real Estate objects in the Real Estate Management information
system.

(C) SAP AG AC290 10-11


Integrated Reporting

Asset Accounting Real Estate Management Plant Maintenance

Asset Business
Func.
super number loc.
entity

Func. Func.
Asset Asset Property Building loc. loc.

Depreciation

Rental Rental Rental Rental Func. Func.


Order Order
unit unit unit unit loc. loc.

Order Order Order


Report
RE object
- .........
- .........
- .........

© SAP AG 1999

Orders can be assigned to Real Estate objects.


In the reporting system, costs posted to orders are analyzed as well as those costs assigned directly to the
account of objects, reflecting the hierarchical structure of Real Estate.

(C) SAP AG AC290 10-12


Integration Reports

Depreciations
Absolute/relative depreciations
Percentage depreciation
Acquisitions/retirements
Controlling objects in Real Estate Management
(by objects/tenants/owners/cost elements)
Period overview: actual, commitments, plan
Period comparison: actual, commitments, plan
Year overview: actual, commitments, plan
Year comparison: actual, commitment, plan
Actual/commitments/plan/variances
Actual/area unit
Actual/apportionment unit

© SAP AG 1999

Call up the following reports to see what data is stored:


Controlling/Settlements Controlling RE Objects - Non-Cumulative Values - One Currency - By
Objects - Actual/Commitments/Plan/Variances

A commitment comes from an order (MM integration). You can view data from Asset Accounting if the
depreciation of an asset is assigned to an internal order. The asset has to be assigned to a property or a
building. If a maintenance order exists and the functional location that is assigned to this maintenance
order is also assigned to an object, the costs of a maintenance task can also be viewed in reporting.

(C) SAP AG AC290 10-13


Integration: Unit Summary

You are now able to:


List the components and the related elements
(apart from FI and CO) that are integrated with
Real Estate Management
Describe where to find these integrated elements
and how to process them

© SAP AG 1999

(C) SAP AG AC290 10-14


Integration Exercises

Unit: Integration
Topic: Link to Plant Maintenance, Malfunction
Reports
At the conclusion of this exercise, you will be able to:
• Create a malfunction report in tenant information and display
the report of the resulting planned values in the information
system
• Create an order, carry out account assignment on a Real Estate
object and check the resulting commitment values in the
information system

A tenant calls you to report a malfunction. You create a


malfunction report.
You then enter an order for paint and assign the costs to the
building.

10-1 In tenant rental, create a malfunction report for the respective rental unit.

Create a PM order out of the malfunction report. Choose main work center
ELECTRIC.

10-2 Display the actual/commitments/plan/variances report. Choose report selection Orders


for functional location.

(C) SAP AG AC290 10-15


Integration Solutions

Unit: Integration
Topic: Link to Plant Maintenance, Malfunction
Reports

10-1 Accounting → Real estate management → Rental → Tenant information

Enter the name of your tenant.


Choose Goto → Display rental unit.
Open the Plant maintenance tab.
Press Malfunction report.
Enter a text for the malfunction report and choose Create order.

Field name or Data type Values


Business area 9900
Main work center Electric

Enter 2 (hours) for the work effort of the main work center.
Save your data. The system calculates the planned costs on the basis of the specified
work effort and the activity type.

10-2 Accounting → Real Estate Management → Info System → Controlling/Settlements


→ Controlling RE Objects → Non-Cumulative Values → One Currency → By
Objects → Actual/Commitments/Plan/Variances
Make sure that the fiscal year is correct. Expand the hierarchy if necessary. Planned
costs are displayed for the PM order.

(C) SAP AG AC290 10-16


Taxes

Contents
Output tax commercial rental agreements
Input tax processing
Option rate determination
Input tax distribution

© SAP AG 1999

(C) SAP AG AC290 11-1


Taxes: Unit Objectives

At the conclusion of this unit, you will be able


to explain:
The different ways of calculating option rates
and name the objects that use option rates
The difference between actual and planned
principle
The process (monthly activities) for rentals
that are subject to sales tax
Why you may have to make adjustment
postings in the service charge settlement

© SAP AG 1999

(C) SAP AG AC290 11-2


Course Overview

Master Data

Vermietung General
Rental
Contract
(Tenant Rental)
Rental Abrechnung
Settlement
Accounting
Mietanpassung
Rent Adjustment
Cross-
Correspondence Application
Functions

Controlling
§§ Steuern
Taxes

Information
Integration System

© SAP AG 1999

(C) SAP AG AC290 11-3


Taxes: Business Scenario

You are managing rental units that are being


used for commercial purposes and are liable
for sales tax
You opt for sales tax for these agreements in
order to reduce the input tax

© SAP AG 1999

If you manage commercially used Real Estate objects, you must make the appropriate setting in
Customizing so that the company codes affected are opted.

(C) SAP AG AC290 11-4


Debit Position for Rentals Liable for Sales Tax
(Output Tax) - Planned Principle

Planned principle
Value-added tax for the advance payments is posted when
the debit position is made
SGL* Tax

J Customer Bank
K +G
J 110
110 K

VAT allocation AP requests Advance payments

K 10 J 110 110 K

Output tax
Debit position
10 K

*SGL = Special general ledger

© SAP AG 1999

The service charge advance payment can be posted in accordance with the planned or actual principle.
This is dependent on the tax category setting of the special G/L account to which the posting is to be
made.
Planned principle:
The output tax is posted at the same time as the debit position.
Actual principle:
The output tax is posted at the same time as the incoming payment.
(a balance-neutral posting is made beforehand.)
In the case of “Planned principle”, the special G/L accounts for the special general ledger have to be set
as follows:
Planned principle: Special G/L account for payment request (I): not tax relevant
Special G/L account for advance payments made (K): + G (gross)
The basic rent is always posted according to the actual principle.

(C) SAP AG AC290 11-5


Debit Position and Incoming Payment for Rental
Liable to Tax - Planned Principle

Planned principle
VAT for the advance payments is posted at the same time as the debit position

SGL Tax

J Customer Bank
K +G
J 110 110 J
110 K 110

VAT allocation AP requests Advance payments

K 10 I 110 110 J 110 K

Output tax
Debit position
10 K
Incoming payment

© SAP AG 1999

Information about the tax treatment used for rental agreements is in the payment data:
- No rental liable to tax
- Rental liable to tax with the appropriate tax indicator
- Indicator for opting
- Opting reason

Different tax rates can be defined for each condition item.

(C) SAP AG AC290 11-6


Debit Position for Rental Liable to Tax (Output Tax)
- Actual Principle

Actual principle
VAT for the advance payments is posted at the same time as
the incoming payment
SGL Tax

Customer Bank J +G
J 110
K +G
110 K

AP requests Advance payments VAT allocation


K 10 10 J
J 110 110 K

Output tax
Debit position
J 10 10 K

© SAP AG 1999

In the case of “Actual principle”, the special G/L accounts for the special general ledger have to be set
as follows:
Actual principle: Special G/L account for payment request (I): +G (gross)
Special G/L account for advance payments made (K): + G (gross)

(C) SAP AG AC290 11-7


Debit Position and Incoming Payment for Rental
Liable to Tax - Actual Principle

Actual principle
VAT for the advance payments is posted at the same time as the
incoming payment
SGL Tax

Customer Bank J +G
J 110 110 J
K +G
110 K 110

AP requests Advance payments VAT allocation


K 10 10J
I 110 110 J 110 K
J 10

Output tax
Debit position
Incoming payment J 10 10 K
10 J

© SAP AG 1999

(C) SAP AG AC290 11-8


Option Tax - Input Tax

Rental liable to tax


Option rate =
Total rental

Objects:
Settlement Reference factors
unit
Business
entity Area Volume Others
Property (= enclosed area)

Can be determined Maintain


Building
automatically manually

Correction items

© SAP AG 1999

In some countries, the rental of real estate and the sale of property is exempt from sales tax. Any input
tax arising from tax-free sales cannot be charged to the company.
An option rate is valid for a calendar month. The key date principle (the rates applicable on the key date
are the basis for calculation) is used for the automatic calculation. You have to enter the key date for
online calculations. For batch runs, the key date is the date on which the batch run is made.
On the key date, the rental units of the calculation objects are analysed. Rental units are opted in the
following cases:
- RU with an active rental unit and an indicator set for input tax opting
- RU has a preliminary contract (status Commercial preliminary contract CPC) with the indicator for
the input tax opting:
- Preliminary contract is concluded
- Date of contract conclusion predates key date for calculation
- Rental begin is after the first day of the month used for calculation
- RU is vacant and has the indicator Opt for vacancy
The following applies to properties: If the property does not have its own rental units, the option rate of
the buildings assigned to the property is transferred as long as the property is assigned a building at
100%.

(C) SAP AG AC290 11-9


Input Tax Treatment (Specific to Germany)

Account assignment Procedure


objects with option rate Post document with deductible
Business entity input tax
Building Monthly determination of the
option rate
Property
Monthly distribution of input tax
Settlement unit in deductible and non-deductible
parts
For settlement units: Tax posting
is adjusted by service charge
settlement

© SAP AG 1999

(C) SAP AG AC290 11-10


Input Tax Treatment Steps

Program for automatic determination Manual maintenance


of the option rates of the option rates

Details
of
Update of option rates
option rate
determination Log in the master data objects
(values)

Automatic input tax Documents


breakdown

Settlement units
Documents
SCS: Adjustment posting

© SAP AG 1999

Incoming invoices are posted with input tax rate of 100%.


A (batch) program for automatic determination of option rates is started monthly if non-manual option
rates are preassigned.
The program for input tax distribution uses the option rates determined to split the input tax into
deductible and non-deductible shares. Non-deductible shares of the input tax are posted or activated in
the expenses. The posting run can be reversed. You can also reverse individual documents.
The correct input tax distribution for apportionable service charge costs can only be calculated when the
service charge settlement is made. If necessary, adjustment postings are made at this point.

(C) SAP AG AC290 11-11


Tax Breakdown - Controlling the Postings

Posting possibilities for non-deductible input tax:


1. A target account of non-deductible input tax for each original accnt
2. A target account of non-deductible input tax for all cost elements
3. To original account Non-deductible input tax
for all cost elements

Cost element A Deductible input tax


20 2
40 2
300 30
20 3 Non-deductible A
60
20 1
Cost element B 20 1
40 1
200 20 2
Non-deductible B
40 3 40 2
20 3 40 1
40 3
Option rate 33%

© SAP AG 1999

Depending on the Customizing settings, the breakdown postings are made to accounts for non-deductible
input tax. This maintains the search sequence given above. We do not recommend variant 3 (posting to
the original cost account) as the gross expenses for this procedure do not appear separately in
Controlling.
Objects that have an option rate in the given month with the option type "0 no calculation" are not taken
into account for the tax breakdown.

(C) SAP AG AC290 11-12


Input Tax Distribution Adjustment by
Service Charge Settlement

Gross expenses PA Deductible input tax (I.T) Credit account Credit N.D*. input tax
500 50 15 500 20
Deductible input tax N.D. input tax RA clearing N.D input tax clearing
50 15 200 Residential 20
300 Commercial Tax treatment
Starting situation Monthly I.T distribution Credit posting SCS Credit posting

Deductible I.T Receivables SCS revenue


50 15 220 Residential
5 500
330 Commercial
N.D. input tax Output tax N.D input tax revenue
15 30 20
5
Tax adjustment Customer posting of
posting SCS

*N.D = Non-deductible

© SAP AG 1999

The option rate of the settlement unit is determined at 70% - the commercial share of the object is 70%.
The input tax distribution is made using this value as a base (70% * 50 = 35 or N.D. input tax: 30% * 50
= 15). (The example is simplified by taking a tax rate of 10%).
The breakdown of gross costs for the commercial and residential tenant is made in the framework of the
service charge settlement with the result that 40% of the costs are due from the residential tenants and
60% of the costs are due from the commercial (opting) tenants. The adjusted option rate is determined at
60%.
A credit posting for the settlement unit and the operating costs account is made with the breakdown ratio
that has been specified. This posting contains the adjusted breakdown of the taxes in a deductible and
not-deductible share.
An adjustment posting is made due to the difference between the original breakdown (70%) and the
adjusted breakdown (60%).
The debit posting to the commercial tenants uses the output tax rate of 10% (according to this example)
as defined in the rental agreement.

(C) SAP AG AC290 11-13


Tax Reports

Taxes
Input tax distribution
Option rates
Option rate changes
Rental units/agreements changes
BE/PR/BU option rates

© SAP AG 1999

Call up the following reports to see what data is stored:


Other - Taxes - Option Rates - Option Rates BE/PR/BU
Other - Taxes - Input Tax Distribution

(C) SAP AG AC290 11-14


Taxes: Unit Summary

You are now able to explain:


The different ways of calculating option rates
and name the objects that use option rates
The difference between actual and planned
principle
The process (monthly activities) for rentals that
are subject to sales tax
Why you may have to make adjustment
postings in the service charge settlement

© SAP AG 1999

(C) SAP AG AC290 11-15


Cross-Application Functions

Workflow
ASAP
Archiving
Authorizations
Validation and Substitution
Document management/optical archiving

© SAP AG 1999

(C) SAP AG AC290 12-1


Cross-Application Functions Unit Objectives

At the conclusion of this unit, you will be able


to:
Describe the cross-application functions and
relevant application examples
Name the tools used

© SAP AG 1999

(C) SAP AG AC290 12-2


Course Overview

Master Data

General
Rental
Contract
(Tenant Rental)
Rental Accounting Settlement

Rent Adjustment
Correspondence Cross-
Application
Functions
Controlling § Taxes
Information
Integration System

© SAP AG 1999

(C) SAP AG AC290 12-3


Cross-Application Functions: Business Scenario

You want to implement the Real Estate


Management component using ASAP. You can
limit the size of your dataset by using archiving.
You want to support your business processes
by validation/substitution or workflow. The
individual processes are subject to an
authorization concept. You want to store
documents about your Real Estate objects. You
want to store the correspondence that the
system prints in the optical archive.

© SAP AG 1999

(C) SAP AG AC290 12-4


Workflow

Business Object Repository (BOR)


objects
Business entity, property, building, land
register, rental unit, room, application,
offer, rental agreement, general
contract, management contract,
settlement unit
Sample workflow for
Rental end/notice
Link to maintenance for master data
Resubmit/send in time for deadline
(master data, rental agreement)

© SAP AG 1999
© SAP AG

Workflow controls processes according to a predefined model and is especially suited for structured and
working organizations. Processes can be flexibly automated by workflows.
Twelve Business Object Repository objects (BOR) are supplied with the standard delivery that form the
basis for workflows:
Business entity, building, property, land register, rental unit, room, application, offer, rental agreement,
general contract, management contract, settlement unit
You can send the individual objects to a user on the required date with a note (in the object required,
select System -> Workflow -> Send object with note).
Two sample workflows are supplied:
One workflow generates a workflow item when a rental unit is created and this work item creates the
necessary functional location. Once the functional location has been created, this is automatically
assigned to the rental unit (WS 20000215).
The other work flow triggers workflow items at the rental end of a contract and this triggers other
workflow items (termination notification, rental unit inspection -> release rental collateral, rent
adjustment -> compare vacant rental units with applications -> message for new rental (WS 20000197)).
The sample workflows are not activated on shipment - you must activate them. In addition to this, you
have to have an agent assignment. You will usually assign tasks, positions, work stations and
organizational units rather than an actual user.

(C) SAP AG AC290 12-5


Workflow - Editor

© SAP AG 1999

You can display and edit the workflow definition in the graphical editor.
Training course BC600 provides an introduction to workflow.

(C) SAP AG AC290 12-6


ASAP for RE

Question and answer database (Q&Adb)

Assignment of IMG activities to processes

Assignment of transactions to processes


Assignment of Business Object Repository
to processes
Graphical modeling

© SAP AG 1999

(C) SAP AG AC290 12-7


Process

Process
rental unit

Create
infrastructure
of SCS
settlement
Process path
Event
Operator
Function
Enter Enter validity
Assign date for
participation
rental units
ID and name participation ID

Rental units Navigate with the process path


assigned to
part. ID Test the assigned transaction
Read the documentation on the
Process
settlement units
transaction

© SAP AG 1999

The process model is represented by event-driven process chains (EPCs).


The following modeling elements are available on the process level:
- Events
- Functions
- Operators (and, or, exclusive or)
- Process path
You navigate with the process path, test the transactions assigned and call up the documentation
assigned.

(C) SAP AG AC290 12-8


Archiving

C
Set deletion A
Object +
flag

Residence time C
Obj. with DLFL +
(Deletion indicator)

Residence time C
Obj. with del.ID +
(Archiving)

Obj. archived

© SAP AG 1999

Archiving is used to delete data that is no longer needed so that the amount of data is reduced and the
system has less to deal with.
Up to Release 4.0B, rental agreements, applications and offers could be archived. Effective with Release
4.5A, business entities, properties, buildings, rental agreements, settlement units and management
contracts can also be archived.
Activity: Set a deletion flag on the object you want to archive. A residence time for this indicator has
been defined in Customizing. Once this residence time has elapsed, a deletion indicator is set on the
relevant objects. After an additional residence time of the archiving (also defined in Customizing), the
objects with the deletion indicator are activated during an additional archiving run. During an archiving
run, objects can be archived and deleted, or simply archived.

(C) SAP AG AC290 12-9


Validation and Substitution

Validation: Substitution:
Process of testing values Process of replacing values
and combinations of values that the that the standard system accepts.
standard system accepts.
The system tests the values entered
A Boolean statement has to be using a user-defined Boolean
defined in Customizing for testing the statement.
truth value.
If the statement is for the values is
If the truth value test result is "False", true, they are replaced.
a user-defined error message is
issued. This substitution is made before the
data is sent to the database.
The message category informs you
about data - if it can be saved or if a
posting can be made.

© SAP AG 1999

Substitution example:
The usage type of a rental unit determines the business area of a rental agreement. In Customizing, rules
have been defined that result in the Business area field in the rental agreement being filled out
automatically. This is dependent on the usage type of the rental unit. If you cannot change these
automatically maintained values, use the field status control to set this field to display.
Validation example:
The usage type of a rental unit determines the permitted values for a business area of a rental agreement.
In Customizing, rules have been defined that result in the testing of values in the Business area field in
the rental agreement. If the values entered do not fulfill the defined rules, the values are rejected and the
rental agreement cannot be saved with these values in the Business area field.

(C) SAP AG AC290 12-10


Document Management/Optical Archive

Document management:
Use: Create an external document -> Assign to
system objects (such as rental unit)
Create document (for instance, location plan)
A
Assign document type to Real Estate objects
C

Optical archive:
Use: Manage the correspondence generated in the
system

Print (for instance, rental agreement, SCS A


correspondence)
C
Set indicator for link to optical archive

© SAP AG 1999

Document management:
You want to link an external document to your Real Estate objects. You create the document in Logistics
(central functions). In addition, you also have to make assignments between the document types and the
applications (business entity, rental unit, rental agreement) in Customizing in "Cross-Application
Functions".
Optical archive:
You want to archive the SAP R/3 printed correspondence with a link to the respective object. In
Customizing, you have to set the "Optical archive installed" indicator located in "Correspondence".

(C) SAP AG AC290 12-11


Authorizations

C
User

Typical Accountant
Composite user
Profile 1 Profile 2
profile A

Profile 3 Profile 4 Necessary


authorization

Authorization a Authorization b Authorization c Tool:


Profile Supports
gene- profile
Fixed authorization Variable generation
rator
fields authorization field
Company code
Authorization group
Ex. Business entity
RA Activity
Profile
Values Values
1000 1 - 25 100 - 500
Create, change,
display
User Mr Brown

© SAP AG 1999

A user has one or more individual or composite profiles in the master data.
A user has all the authorizations contained in the profile.
The authorizations are derived from the criteria. As of Release 4.5, you can define a variable criteria in
addition to the fixed criteria. You can, for example, define a business area as a criterion in addition to the
fixed criteria, company code, business entity and activities for the rental agreement. You have to enter
the business area in the Authorization group field.
You have to enter values in the criteria.
The "Profile generator" tool supports you in a dialog-oriented manner with the generation of profiles
(from Release 4.0B).
Changes to an authorization or a profile affect all users with this authorization/profile.

(C) SAP AG AC290 12-12


Cross-Application Functions: Unit Summary

You are now able to:


Describe the cross-application functions
available
Describe how to use these cross-application
functions
Name the tools used

© SAP AG 1999

(C) SAP AG AC290 12-13


Appendix

This section contains additional material


intended for reference purposes
This material does not form a part of the
standard course
As this material is complementary to the
course, the course instructor might not use it

© SAP AG 1999

(C) SAP AG AC290 13-1


Appendix Overview

Sample accounts in the standard system account plan

Tips for the Customizing project

Posting procedures
Tax treatment advance payments

Accrual/deferral

Cash deposit

Service charge settlement for own usage

Input tax treatment fixed assets

Overview: Periodic activities

© SAP AG 1999

(C) SAP AG AC290 13-2


Accounts Used in Standard System

Account 2

Account 1
Account n

196900 Advance payment receivables- operating costs 841000 Revenue from third-party usage rent
196910 Advance payment- operating costs 841050 Other rental revenue (third-party/own usage)
196920 Advance payment- sales-based rent 841070 Revenue from operating costs-flat rates
196930 Rental deposit 841080 Revenue from rent-own usage
220050 Rental deposit interest expenses 841090 Revenue from writing back AP operating costs
470400 Apportionable operating costs 841099 Clearing advance payment operating costs
470499 Clearing-apportionable operating costs 841100 Advance payment receivable update OC
470500 Settlement-rental agreements operating costs 841110 Advance payment update operating costs
470510 Settlement-rental agreements operating costs 841120 Advance payment update sales-based rent
w/o clearing 841130 Update rental deposit
470520 Settlement-rental units operating cost 841500 Revenue from third-party usage OC stt. usage
470580 Settlement-own usage operating costs 841580 Revenue from rent-own usage
470590 Clearing-advance payment operating costs 841680 Rent paid in arrears (accrued)
470700 Imputed expense vacancy rent 841690 Rent paid in advance (deferred)
470750 Clearing- vacancy OC advance payment 841700 Imputed revenue vacancy rent
470800 Expenses for management of rental objects 841750 Revenue from vacancy costs AP
470850 Clearing-real estate rental management revenue 841800 Rental from management of rental objects
470900 Expenses for non-deductible input tax 841850 Real estate credit service cost revenue
470950 Settlement-OC non-deductible input tax 841900 Revenue from non-deductibe input tax SC stt.
470999 Clearing-OC non-deductible input tax 841910 Revenue from deductibe input tax/fixed assets
888900 Rental sales deduction (third party/own)

© SAP AG 1999

(C) SAP AG AC290 13-3


IMG Functions

Views
(Attributes generated,
for example, all mandatory
activities ,or selected
Project manually)
Filters IMG
(RE sub-project)
Filters
Development
SAP Client
Company
Reference
IMG
IMG
Views
(see above)
Project
IMG
(FI sub-project...) Customizing
Status

Customizing Customizing
Transactions Documentation
© SAP AG 1999

1. The SAP Reference IMG consists of all Customizing activities for all the R/3 application components.
2. The Enterprise IMG is generated by choosing the country, application component and functions.
3. Customizing projects are created and added to the IMG structure as a means of controlling the R/3 implementation. The
Project IMG is created by selecting country, application component and functions on the basis of the Enterprise IMG.
4. To reduce the number of steps required for implementation, views of the Project IMG can be generated for every
project, for instance a view for "All mandatory activities".
You create the views automatically based on the attributes or by manual selection.
•The attribute (mandatory activity, critical activity, country specifics) are predefined by SAP.
•You can define a status for the various activities, such as "In process", "For review", "Completed" and track the history
of each activity.
•You can arrange the project view display in such a way that the title of the particular Customizing activity appears along
with its status.
•You can also document the Customizing activities (by creating comments and notes), plan resources and then carry out
evaluations based on planned and actual man-days
•You can choose a transport type for the activity. You can set the option for "automatic", "manual" or "no" transport.
•You can display a documentation for all IMG activities and print it along with all the subnodes (for instance, at the outset
of a project). For detailed information, refer to Course BC080.

(C) SAP AG AC290 13-4


Deferral: Rents Paid in Advance

Rent in advance: 3 months rent paid per quarter in the first month
Customer Revenue
1 3000 3000 1
- -
- -

Deferred income Reserve advance rents Cons. reserve advance


rents
- 2000 2 2 2000
3 1000 1000 3
1000 4
4 1000

1 Debit position 1st month: 3 months rent


2 Deferral 1st month
3 Deferral 2st month
4 Deferral 3rd month
© SAP AG 1999

You can use the deferral function for expected revenues from sales-based rental agreements. Different
deferral methods are available.

(C) SAP AG AC290 13-5


Accrual: Rent Paid in Arrears

Rents paid in arrears: 3 months rent paid in 3rd month of quarter


Customer Revenue
- -
- -
4 3000 3000 4

Other receivables Reserve rent arrears Cons. reserve rent


arrears
1 1000 - 1000 1 - -
2 1000 - 1000 2 - -
- 2000 3 3 2000 -
1Accrual 1st month
2 Accrual 2st month
3 Accrual 3rd month
4 Debit position 3rd month
© SAP AG 1999

(C) SAP AG AC290 13-6


Cash Deposit

Flow category Flow type Calculation type Posting


A Cash deposit AA 1 Debit position, 1a inc. pymnt
Rental agr.
TC Int. clrg cash deposit ZV 2a, 2b Interest expense (J1, J2)
Cash dep.
TZ Cash deposit interest TZ 3 Transfer posting interest
Interest TT Return of cash deposit TT 4 Transfer posting cash deposit
4a payment

Customer Receivables Bank


1 1000 1000 1a 1 1000 1000 1a 1a 1000
76.25 3 76.25 3 1076.25 4a
4a 1076.25 1000. 4400 4a 1076.25 1000 4

Cash deposit Interest expense


4 1000.00 1000.00 1
3 76.25 50.00 2a 4 1000 1000 1 2a 50
26.25 2b 3 76.25 50 2a 2b 26.25
26.25 2b

Special general ledger indicator C


© SAP AG 1999

Special flow categories are used for account determination of cash deposit postings. You have to
assign special calculation categories to the flow types so that the interest calculations and postings
are handled correctly. You also have to create condition types for the flow types.
The debit position posting for cash deposits is derived from the flow type with calculation category
AA. The offsetting entry is made using the special general ledger transaction (C) in the customer
account.
At the end of an interest period, an interest clearing posting is initiated by the debit position. The
flow type with flow category ZV is used for this.
At the end of the contract, the system calculates the interest and credits this in the debit position to
the customer account (calculation type TZ). The prorated interest settlement is also carried out.
The flow category and settlement category have to be assigned in the detail screen for flow types.
(Flow types used in standard Customizing: 6000 Cash deposit, 6100 Cash deposit interest clearing,
6200 Cash deposit interest, Cash deposit repayment)
Example: Rental agreement 01/01/1997-06/30/1998 with cash deposit of USD 1000, 5% interest,
12-monthly according to 360/360 rule, interest calculation on 12/31.
Posting of 5% of USD 1000 = USD 50 made on 12/31/1997 - interest calculation on 06/30/1998:
5% of USD 1000 for half year = USD 25, 5% of USD 50 for half year = USD 1.25, total USD
26.25.
Total interest: USD 50 for 1997, 26.75 for 1998, total USD 76.25.

(C) SAP AG AC290 13-7


Posting Activities - Own Usage (1)

Subsidiary Ledger General ledger


Commitments
Vendor
Balance Reconciliation
Vendors

accounts account

Rent expense own App. costs expense


usage
(1) Cctr 1000
(1) Cctr 100

Own usage clearing OC


RA clearing expenses Credit account
Customers

Revenue rented space own Clearing AP OC own usage


usage

1000 RA (1) 100 RA (1)

Clearing AP OC own usage Revenue rented space own


usage operating costs

© SAP AG 1999

(C) SAP AG AC290 13-8


Posting Activities - Own Usage (1a)

Subsidiary Ledger General ledger


Commitments
Balance Reconciliation
Vendor 250 (1a)
Vendors

accounts account
250 (1a)
Rent expense own App. costs expense
usage
(1) Cctr 1000 (1a) SU 250
(1) Cctr 100

Own usage clearing OC


RA clearing expenses Credit account
Customers

Revenue rented space own Clearing AP OC own usage


usage

1000 RA (1) 100 RA (1)

Clearing AP OC own usage Revenue rented space own


usage operating costs

© SAP AG 1999

1. Debit position
1a. Posting service charges incurred
The service charges incurred are posted to an appropriate account, with account assignment on the
relevant settlement unit.

(C) SAP AG AC290 13-9


Posting Activities - Own Usage (2)

Subsidiary Ledger General ledger


Commitments
Balance Reconciliation
Vendor 250 (1a)
Vendors

accounts account
250 (1a)
Rent expense own App. costs expense
usage
(1) Cctr 1000 (1a) SU 250
(1) Cctr 100
Own usage clearing OC
RA clearing expenses Credit account
Customers

(2) RA 250 250 SU (2)

Revenue rented space own Clearing AP OC own usage


usage

1000 RA (1) 100 RA (1)

Clearing AP OC own usage Revenue rented space own


usage operating costs

© SAP AG 1999

1. Debit position
1a. Posting service charges incurred
2. Credit settlement unit
The cost account and the cost collector of the settlement unit are credited by means of a credit
account. Offsetting entries are generated as a result of the distribution determined by the settlement.
These are posted as follows:
Costs to be allocated to cost center (this is the tenant in the case of third-party usage) are assigned
to the rental agreements and posted on a "Rental agreement clearing" account.

(C) SAP AG AC290 13-10


Posting Activities - Own Usage (3)

Subsidiary Ledger General ledger


Commitments
Balance Reconciliation
Vendor 250 (1a)
Vendors

accounts account
250 (1a)
Rent expense own App. costs expense
usage
(1) Cctr 1000 (1a) SU 250
(1) Cctr 100

Own usage clearing OC


RA clearing expenses Credit account
Customers

(2)RA 250
(3) Cctr 250 250 SU (2)

Revenue rented space own Clearing AP OC own usage


usage
100 RA (1)
1000 RA (1)

Clearing AP OC own usage Revenue rented space own


usage operating costs
250 RA (3)

© SAP AG 1999

1. Debit position
1a. Posting service charges incurred
2. Credit settlement unit
3. Debit cost center
Finally the costs that can be allocated to cost center are posted to an appropriate general ledger
account as expense.
The offsetting entry is a revenue posting assigned to account of the corresponding rental
agreements.

(C) SAP AG AC290 13-11


Posting Activities - Own Usage (4)

Subsidiary Ledger General ledger


Commitments
Balance Reconciliation
Vendor
250 (1a)
Vendors

accounts account
250 (1a)
Rent expense own App. costs expense
usage
(1) Cctr 1000 (1a) SU 250
(1) Cctr 100

Own usage clearing OC


RA clearing expenses Credit account
Customers

(2)RA 250 (3) Cctr 250 250 SU (2)

Revenue rented space own Clearing AP OC own usage


usage
(4) RA 100 100 RA (1)
1000 RA (1)

Clearing AP OC own usage Revenue rented space own


usage operating costs

100 Cctr (4) 250 RA (3)

© SAP AG 1999

1. Debit position
1a. Posting service charges incurred
2. Credit settlement unit
3. Debit cost center
4. Transfer advance payments

When you transfer advance payments, the costs are charged to cost center.

(C) SAP AG AC290 13-12


Account Assignments of the Posting
Activities
CO View

Settlement unit SU
General ledger
(1a) 250
Rent expense own App. costs expense 250 (2)
usage
(1) Cctr 1000 (1a) SU 250 ⇒ Distribute costs
(1) Cctr 100
Rental agreement RA
Own usage clearing OC 1000 (1)
RA clearing expenses Credit account
100 (1)
(2)RA 250 (3) Cctr 250 250 SU (2) (2) 250
250 (3)
(4) 100
Revenue rented space own Clearing AP OC own usage
usage
100 RA (1) ⇒ Revenue 1000
1000 RA (1) (4) RA 100
Cost center CCtr
(1) 1000
Clearing AP OC own usage Revenue rented space own (1) 100
usage operating costs
(3) 250
100 Cctr (4) 250 RA (3) 100 (4)

⇒ Debit CCtr
1250

© SAP AG 1999

(C) SAP AG AC290 13-13


SCS Account Determination Own Usage

Credit Debit renting cost centers Transfer posting


SU RU/RA RA Receivables Advance payment
Condition type Service charge
Advance payment key
Original cost End
element settlement Flow category
Flow type 3UES

Reference flow type Flow type


Receivables from settlement

Credit account for the cost Acct determination


element Reference flow type for flow type
Clearing account RA own usage
Clearing account RA without
passed on costs
Clearing account RU Account assignment for the
Credit account n.d. input tax reference flow type
Clearing account n.d. input tax

© SAP AG 1999

(C) SAP AG AC290 13-14


Periodic Tasks

Periodic Closing Event-driven


Tasks Tasks Tasks
Debit position Service charge Application and offer
settlement Tenant changeover
Rental agreements
Heating expenses One-time postings
Vacancy
settlement
Periodic posting Repair
Owner settlement
(general contract) Events in management
Management costs contract
Incoming payment
settlement
Dunning
Sales-based rent
Account statement settlement
processing
CO settlement
Accrual/deferral
Scheduled maintenance
(Plant Maintenance)
Tools
Generate cash flow
Set RU status from
occupancy status

© SAP AG 1999

The status of the rental unit has no time-dependency. However if you need to update the rental unit
status, we recommend running report

RFVIBL00.

This report sets the status of the rental unit on the basis of the (time-dependent) occupancy status.

(C) SAP AG AC290 13-15