You are on page 1of 37

0

Contract Management

Contents:
 Business scenario
 Contract conditions
 Contract types
 Usage types
 Contract management

 SAP AG 2008

© SAP AG RE200 2-1

0.2
Contract Management: Course Overview Diagram

Course Overview

Summary of the Basics of Course RE010

Contract management

Accounting

Adjustment of conditions

Service Charge Settlement

Sales-Based Contracts and Settlement

Business Integration

Corporate use

Tools

Country Specifics (*)

(*) Not part of the standard course, may not be covered.
 SAP AG 2009

 * This chapter is not part of the standard course and may not be covered

© SAP AG RE200 2-2

1
Contract Management: Unit Objectives

After completing this unit, you will be able to do the
following:
 List and explain the individual steps of contract
management.
 Assign rental space to a contract and maintain
relevant data.
 Explain the relationships among condition types,
condition groups, contract types, and usage types.

 SAP AG 2008

© SAP AG RE200 2-3

2 Lease-in. frequency. etc. commercial lease-outs for office space. such as cleaning services  Lease-outs  You create the following lease-outs:  Lease-out for cafeteria and parking spaces for personnel  Several external.  Notice rules and renewal rules © SAP AG RE200 2-4 .  You perform contract-specific processes. you renew the contract term. such as giving notice. you enter special terms and conditions with your tenants for:  Object assignments  Terms of the contracts (valid-from and valid-to dates) and other dates  Amount of rent. amount agreed on for services  Payment methods. varied contracts with your business partners:  Lease-in for the business park  Maintenance contract  Contracts with external service providers.  SAP AG 2008  You create numerous.  You secure your contracts with a security deposit contract.  You sublease the buildings and parking spaces.  Based on deadline monitoring.and Lease-out Processes: Business Scenario  You lease in an entire locality from an external landlord. presentation space and parking spaces  A lease-out for the board area with parking spaces  In these contracts.

 Based on the RE search request. the requested notice date of the tenant was entered for information purposes only. offered Contract object. you can also create RE search requests without reference to a business partner.  Functional enhancements with Enhancement Package 4:  Before EHP 4.  If a contract is created from the offer. you can create a contract offer. the role changes to that of the main contractual partner (depending on the contract type).  You can first assign a partner with the role TR0640 (applicant) to the RE search request. However. the requested notice date is taken into account in the real estate search.  With EHP 4. When the new contract is created. TR0600 – master tenant with customer account). A customer role is assigned to the business partner (for example. a new tenant is found who wants to rent the object before the period of notice expires.3 Real estate search Contract Offer Applicant  Contract type RE search request  Objects  RE search request  Partner (applicant) Applicant type  Term/Notice Contract  Price (from/to)  Conditions offer  Location  Reminders  Size Search:  Standard search Trans-  Fixtures and fittings  Advanced search fer  Infrastructure  Free text search Characteristic Offered object Lease-out  Price Hit List: Tenant  Contract type  Location  Favorites  Object assignment  m2  Refuse object (RE search  Fixtures and fittings request. © SAP AG RE200 2-5 . rental object Lease and contract offer) abstract  Partner (tenant)  Term  Conditions… Activate  SAP AG 2009  RE search requests contain the criteria that is important for the applicant in the search for an apartment or commercial property. During the real estate search.  You define the settings for the transition of the roles in Customizing. This function helps the user to optimize the vacancy periods. This ensures that the new contract lies before the contractual period of notice of the old contract expires and after the requested notice date of the old tenant.  Vacant rental objects are automatically transferred to offered objects as a basis for the search.  Scenario: The tenant wants to cancel an object of the contract before the period of notice expires. the notice date can be adjusted individually based on the contract offer. You can define rules for this in Customizing.

4 Contract Life Cycle Give notice on a Create contract contract Create Renew contract Activate contract Deadline monitoring Give notice Change Post in Financial Accounting Service charge settlement Account maintenance Perform sales-based Monitor Adjust the settlement conditions Enter sales reports  SAP AG 2008  There are two ways that you can assign numbers for contracts.  2: Internal number assignment  Automatic number assignment by the system  The consecutive numbers (incremental assignment) are managed by the system.  You choose one of these options in Customizing for number ranges.  1: External number assignment  Manual entry by user  The system only checks whether the number already exists so that no duplicates occur and the uniqueness of the number remains intact.  Definition of any numbering rules using BAdI technology © SAP AG RE200 2-6 .

You post the occupancy costs in CO using a separate posting transaction. See Unit 9 for more information. © SAP AG RE200 2-7 . In this case.  The contract type determines the permitted and selectable condition types.5 Contractual Relationships Lease-in Lease-out (landlord with vendor (tenant with customer account) account) Service contract Internal contract (partner with customer (cost center/WBS element/ account or vendor order) account)  SAP AG 2009  The attribute of the contract type determines which processes you can display:  Service charge settlement participation (only for the contract type defined as lease-out)  Processes for lease-out or lease-in (contract type is attributed as customer or vendor)  Own use or third-party use. or G/L account contract (external contract.  The contract type defines the screen sequence and the field status so that the contracts of the different contract types can be attributed differently in the dialog. no contracts are created for the internal rental. you must assign the contract type to be secured another contract type which is defined as a security deposit contract. G/L account contract contract category)  As of Enhancement Package 2. internal contract.  In Customizing. the internal rental area can also be mapped with the functions for room reservation and continuous seating arrangements.

 Next you assign the objects to the contract that are going to be leased in or leased out. you can also define information on the payment method. © SAP AG RE200 2-8 .  You define rules in order to generate dates for reminders.  If the lease-out is an external one. then you can use the ###Create follow-on contract function. along with data on giving notice and on renewing the contract. This contract term includes the start and end dates of the contract.6 Overview: Contract Contract Scale1:75 Living room Bedroom  Term Bedroom 2 1  Conditions  Notice/extension  Date management Correspondence Real estate objects  Distribution  Document management ACTIVATE Partners Signature Date Processes  Periodic posting  Payments  Open item management  Dunning  Real estate controlling  SAP AG 2008  When creating a contract. You make this distinction for the respective contract type in Customizing.  Rentals can either be external or internal. postings and processes that are relevant for this contract can be carried out. After activating . you can activate the real estate contract.  Then you specify the contract term. It is used for posting all relevant receivables/payables.  Once all your data is entered. you first specify the contract type. you must define a main contractual partner in the partner data. A customer or vendor account is created for this partner.  For internal lease-out you have to specify either a cost center.  For external rental. see the unit on “Accounting”).  If a contract is created for an object that already has another contract (that was ended or should be ended).  A distinction is made between the date of the first posting and the validity date of the cash flows (for more details. a project or an order. dunning procedure and tax treatment. You can use the previous contract as a comprehensive “copy template”.

adjustment of conditions and correspondence are possible for all contract types  SAP AG 2009  The attribute of the contract type of an external. This causes these contracts to be interpreted as occupancy contracts. term..  You must assign external lease-outs the Objects are leased-out contract reference. BU. RO. processes option rates Reminders.  External service contracts have the contract reference Other reference or Contract has no objects..  External service contracts have the contract reference Other reference or Contract has no objects. PR.  The attribute of the contract type of an external vendor contract is external contract and userChoose business partner with vendor account as the main contractual partner  You must assign the Objects are leased-in contract reference to lease-ins  All permitted objects can be assigned to contracts belonging to these contract types You can also assign several objects. notice. renewal. a rental object An object can only be assigned can only be assigned to one to one lease-in at any one time. which excludes the objects from being leased out twice. order WBS element Periodic External: Receivables – incoming payments Payable postings Internal: Settlement of costs to cost center.7 Contract Types Lease-Out – Customer Lease-in – Vendor Contract type Lease-out Lease-in Object assignment Rental units. RE-FX partner Tenant Landlord Partners External: Customer Vendor accounting Internal: Cost center. WBS element Special Service charge settlement. There is no occupancy for the assigned objects. You can also assign several objects. lease-out. At any one time.  Choose business partner with customer account as the main contractual partner.  These contract types can only be assigned the rental object types Rental unit and Rental space. order. © SAP AG RE200 2-9 . rental space All – BE. customer contract is external contract and offerer. .

 If there are identical terms (such as notice rules or adjustment rules) that are valid for various objects or conditions. © SAP AG RE200 2-10 .  Collective lease-outs. you only need to create the terms once and then assign them to the object group. 1.. Rental Rentalunit unit1. are therefore no longer required (the collective lease-outs no longer exist in RE-FX).  Reminders  SAP AG 2009  You can assign any number of rental objects to a contract.... refer to the “Business Partner” unit and the documentation in the SAP Library. buildings or company codes.  You assign the main contractual partner on the Partners tab.. such as those used in Classic RE. These rental objects can belong to different business entities.8 Object Assignment SAP Usage View business Real Estate Contract partner Company code  Lease-in/lease-out  Purchasing contracts Business entity  Service and maintenance contracts  Other vendor/customer Property/Building contracts Pooled space 1 Objects/Object groups Rental spaces Pooled space 2 Rental spaces Contract processes/Terms  Term of contract/notice/renewal Pooled space 3  Conditions/payment rules Rental spaces  Adjustment methods  Deposit Rental unit 1.  To process the business partner information.. choose Business Partner Master Data.  Objects that are subject to the same conditions or contract terms can be grouped together to form object groups.  Choose Account to branch to the display of the open and cleared items of the customer.  For more information on business partner management.

If the amounts of this condition are identical for each measurement unit and also always remain identical through adjustments. © SAP AG RE200 2-11 . which in turn must be assigned to the object group. you can reduce the number of conditions in the contract by creating an object group and only creating one condition. You can also extract a new rental space directly with reference to the object group.  SAP AG 2008  You can only create object groups directly in contract processing. you can assign rental objects to several object groups at the same time.  You first create an object group in the contract.9 Object Groups Objects assigned to the contract Objects Object type: Object group Text: Object group office Group number: 1 Valid from: January 1.. space 1 Object Term Office Group Notice on object space 2 Notice type: Standard Notice process: Standard Object assignment: Object group 1 Indoor car park Parking Conditions spaces Calculation object: Object group Condition type: Office basic rent Presentation Condition Purpose: actual rent room Unit price: EUR 20 per m² Valid from: January 1... You cannot distribute costs/revenues to the object group.  Example: You have assigned a contract 10 rental spaces of several pooled spaces.  You can then define a distribution of the costs or revenues to the individual objects of this group. The condition type basic rent is assigned to each of these rental spaces. 2000 Office Valid to: . notice procedure) and contract conditions that are valid for the respective object group.  As of Enhancement Package 2. 2000 Valid to: ..  Then you define the contract terms (for example. After that you define the individual rental objects (rental unit or rental space).

This increases the available capacity of the respective pooled space.  The available capacity of the pooled space is reduced by the extraction of a rental space.  With a standard report you can also end rental spaces for which the contracts have ended. Office 1 Office 2 Office 3 25 m² 30 m² 40 m² IV.10 Extracting Rental Spaces When Creating Contract Pooled space with office space capacity: 3 * 50 m² = 150 m² II. Contract with assigned rental spaces Office 25 m² Pooled space with available office space: 55 m² Office 30 m² Office 40 m² V. © SAP AG RE200 2-12 . I.  SAP AG 2008  Individual rental spaces can be extracted from a pooled space when maintaining master data and also when creating contracts. Contract (commercial rental) Rental spaces III.

tax rate. such as posting rules and frequency of postings. Payment method . These different terms are numbered and can be modified and deleted.000 • Calculation method Condition type per month AP operating AP operating costs € 1.11 Posting Parameters Contract Posting parameters Contract Postings Payment terms • Payment method. business area)  Example: two posting rules with different payment methods.. This means. a standard term is proposed in contract and rental object processing. Assignment per quarter • Date • Business area • Profit center  SAP AG 2008  On the Posting Parameters tab page.. etc. you enter the time-dependent changes to the data in the existing term. etc. Choose Create Term to create different terms for each standard term.  For every term category. The term is then assigned to the relevant condition type.. Instead. © SAP AG RE200 2-13 . Here. Terms can be defined for the following:  Postings (payment method. bank details. Name Condition type Basic office rent Frequency Rental conditions • Frequency Basic office rent € 1. Bank account • Tax. for example. You can change these standard terms.. Bank • Business partner... • Dunning area. you do not have to create a new posting term. using the posting terms. frequency and organizational assignments.. you define time-dependent terms for posting.500 costs Org.  Several rental objects and conditions can be assigned to a contract. Here you would create two posting terms for the collection payment method and cash payment method. that if the payment method changes. bank details. • Bank... but the term cannot be deleted from the table..  You can define terms.)  Frequency (data for the due date of the assigned conditions)  Organizational assignment (profit center. due date. The agreements do not have to be separately maintained for each condition. The conditions are automatically assigned and are noted in the Conditions sub-tab. You can make agreements for the individual conditions regarding the payment method. the conditions must be manually assigned..  Choose New Date to create time-dependent changes for the standard and user-defined terms. so that you do not have to create them again and again for each individual condition..

Basic rent € 2000 Conditions (market rent) from object to contract .AP. actual rent.Basic rent € 1500 . operating costs € 150 .  The condition purpose determines how (periodic or one-time) and whether or not (statistical or to post) a condition is included in periodic posting.  Statistical and one-time statistical – the condition is used for evaluation purposes and is not taken into account in periodic posting. © SAP AG RE200 2-14 .  One-time posting – the condition is entered once in the cash flows and thus only taken into account once in periodic posting.  Conditions that have been stored for rental objects can be called up and assigned to the contract as default conditions (Default Condition(s) button).AP.  In Customizing.  The Periodic Posting for Real Estate Contracts function posts the amounts derived from contract conditions. and so on) and assign an internal condition purpose to it. you specify which condition purpose is proposed for the corresponding condition (within a condition group).12 Condition Types Scale1:75 Living room Bedroom 2 Bedroom 1 Contract Rental object – kiosk Conditions (actual rent) Pass default conditions . operating costs € 150 . The following options for internal condition purposes exist (these cannot be modified):  Posted – the condition is taken into account in periodic posting.  You can determine an external condition purpose (market rent.Parking lot € 45/pc Default Contract-related documents Object-related conditions conditions (conditions that can be maintained in contract (IMG) (conditions that can be maintained on RO) in the contract) Vacancy rent Cost rent Actual rent Market rent Condition Purpose  SAP AG 2009  Conditions are required for periodic postings to real estate contracts and are the basis to make postings in Financial Accounting.  You can store conditions for rental objects and real estate contracts.

This can be necessary if management contracts contain event-based conditions. you have to assign it manually.  You can also define condition amounts for each object. Organizational Assignment). for each tenant changeover.)  Validity period  Calculation formula of the condition amount and  Distribution formula  Data on the frequency of posting and organizational assignments is noted on the Posting Parameters tab page. Frequency. according to the rental status. If you want to assign a condition to a different term (not the standard term). etc. square meter price or amount per parking space). © SAP AG RE200 2-15 .  For each condition you define calculation formulas. The system automatically assigns the condition to the standard terms (Postings. market rent. etc. For example.13 Conditions Contract Conditions Condition • Authorization object • Calculation method • Condition purpose • Valid from – Valid to • Unit price per condition amount Terms Condition Type • Postings • Frequency • Organizational assignment For example:  Basic rent Calculation  AP operating costs • Unit price  Elevator flat rate • Calculation formula  Rent reduction • Measurement type/unit  … Distribution • Distribution formula • Area type/unit  SAP AG 2009  You assign the following data per condition:  Object (or object group) that the condition applies to  Condition purpose (actual rent. the condition amount can be calculated by multiplying the unit price with the values of the measurement of the assigned object (for example. cost rent.

If you choose the calculation formula for measurements. you also have to enter the measurement type and measurement unit. all costs and revenues which are first posted as a cost-accounting-relevant assignment to the contract must be posted (distributed) to the recipient objects.  You can also define distribution formulas for each condition. © SAP AG RE200 2-16 . For correct cost and revenue account assignment. In Customizing. you can predefine calculation formulas or permit an individual entry in the contract.

© SAP AG RE200 2-17 . for instance. you can make changes at any time.  The distribution rule according to object measurement is useful if. you can predefine the assignment of a distribution rule for each condition within a condition group. for instance.  SAP AG 2008  Distribution formulas define how costs and revenues. However. should be distributed to the recipient objects.14 Distribution Contract DISTRIBUTION FORMULA Measurement: Office space Rental conditions Basic office rent € 1000 / month AP operating costs € 300 / month Basic office rent € 1000 per month AP operating costs € 300 per month 60 140 60 + 140 60 + 140 Office space 1 Office space 2 (60 m²) (140 m²) Office rent: € 300 Office rent: € 700 AP operating costs: € 90 AP operating costs: € 210 Distribution is relevant for costs and revenue reporting.  In Customizing. an object group is assigned to the condition and the condition amount should be equally distributed to the individual objects of the object group. commercial space). Manual maintenance is thus no longer required when creating a new condition.  The following internal distribution rules exist:  Divided equally  Object  Object measurement  Contract measurement  Aggregation  Settlement unit  Customer-defined using BAdI technology  The “divided equally” distribution rule is useful if. an object group is assigned to the condition and the condition amount should be distributed to the individual objects according to the measurement relationship (for example. which are first posted as a cost-accounting- relevant assignment to the contract.

You can call up and modify this text in the application.15 Contract Renewal Rules Renewal rules in the contract Without fixed term With fixed term (no renewal rule in contract) (renewal rules in contract) New automatic Automatic Option renewal rules One or more repetitions Repetition of last rule Automatic Written approval from contract renewal partner before effective date Unlimited after this point You can define both kinds of renewal rules on ONE contract. The option must be activated in the system. If the renewal should not be implemented.  You can maintain options and automatic renewals at the same time.  Renewal refusals that result in a contract termination are handled in the Give Notice process. you can create individual text valid for the particular contract. there is no need to enter approval or activate the renewal. If this option is not used. These texts can be printed with the contract. © SAP AG RE200 2-18 . it has to be refused in writing by the contractee or contractor.  You can create a longer text for each renewal procedure in Customizing. the contract is automatically renewed by 12 months.  SAP AG 2009  Renewal rules are only defined for contracts with a fixed term. b) Automatic renewal: For automatic renewals. a) Option: Options must be accepted/issued (explained) in writing by the contractee/contractor in order to become effective. so that the following rule can be stored: “There is the option of renewing the contract twice by X months. for instance. two OPTIONS and one RENEWAL. In the case of individual renewal rules. for example.”.

the contract end date is displayed on the Term tab. as additional information. this reason specifies which procedure will be carried out. If different notice rules are maintained for contractee and contractor in the contract. the notice cannot be activated. according to the relevant notice rules entered in the contract.  When the notice is activated.  The effective notice date is calculated. when the notice is created. The notice reason also contains a record of whether notice was given by the contractee or contractor. The system automatically checks the validity of the period of notice. In case of rejection. 2002 Correspondence Calculated notice: November 30.  You must enter a notice reason when notice is given. 2002 Reason for notice: Restricted use Approval Activation Notice given by: Contractee Approval date: Reverse Rejected date: Activated on: Contract end date Simulate notice Correspondence  SAP AG 2009  You use the notice function when you receive or give notice to terminate a contract.  Notice can only be given on active contracts. © SAP AG RE200 2-19 .  You can also enter reasons for the rejection.16 Notice Process Enter notice rule Create & process notice Rejection Reason for rejection Date of receipt: August 14. 2002 Notice per: November 30.

For standard notice procedures.  When notice is received for a contract.  You can create notice procedures with different notice rules for the contractee and the contractor.  You can combine a period regulation and a deadline regulation for the same party in one contract. © SAP AG RE200 2-20 .  You can assign a standard notice procedure (created in Customizing) or define an individual notice procedure for the respective contract.17 Notice Rules for Contracts. The deadline regulation defines extraordinary notice possibilities..  The process for Notice on objects is the same as that for notice on a contract. In the case of individual notice procedures. Objects and Object Groups Contract Term Term Contract Renewal Term and Conditions Notice Term … Notice Process Renewal … Notice rule 1 Party Notice Landlord: Graduated notice period . Notice rule 2 Party Tenant: Three months to the end of the month … Object assignment: parking lots  SAP AG 2008  You enter data for giving notice and for processing notice periods in the contract. The object (or object group) is no longer assigned to the contract after the valid-to date. you can create individual text valid for the particular contract.  These texts can be printed with the contract. The contract and its other object assignments are still valid.. The next possible notice date is highlighted.  You can create a description for each notice procedure. the end date for the contract is calculated.  When notice is received for a particular contract object (or object group).  Other options:  You can simulate notices.  You can create an internal memo for the notice. you enter the texts as a text module in Customizing.  There are period regulations and deadline regulations. the valid-to date on the object (or object group) is adjusted. There is no change to the contract end date.

year end). a period of notice of three months on May 31 and September 30 (two dates annually). For example. © SAP AG RE200 2-21 .18 Periods of Notice Notice terms No period of Standard notice procedure Individual procedure notice “Customizing” “user-definable in contract” Standard Standard Individual Individual period regulation deadline regulation period regulation deadline regulation Date on which Periods until notice takes effect Deadlines notice takes effect  SAP AG 2008  You have the following options for creating notice procedures on contracts:  No period of notice  Standard notice procedure (Customizing)  Individual notice procedure (defined on the contract)  Standard and individual notice procedures consist of notice rules. The notice must be given by the third work day of the following month. which are either period regulations or deadline regulations. half-year end. which are also periodic. For example. you can use a deadline regulation.  You can use a period regulation for periodic notice rules (month end.  For certain specific notice dates (date). the notice period is 6 weeks before the end of the quarter. quarter end.

condition groups. contract types. and usage types.  Assign rental space to a contract and maintain relevant data.  Explain the relationships among condition types.  SAP AG 2008 © SAP AG RE200 2-22 .19 Contract Management: Summary You are now able to do the following:  List and explain the individual steps of contract management.

Previous yea r Residential space fro m 70 Residential space t o 10 0 Rent exclusive of heating expenses t o 80 0 Service charges t o 25 0 Infrastructure characteristic railway 0. An apartment is sought from February 1 of the previous year. Entering Notices. Enter the following data for your search: Field Labe l Field Content s RE search request tex t <Any > Contract start dat e 01.5 (kilometers statio ) n Create a new partner with the role category Applicant (TRO640). © SAP AG RE200 2-23 . Based on a RE search request. Save your RE search request. Enter the name and address of the partner. you will be able to do the following:  Carry out and explain the contract management process.  Link rental spaces to the contract and enter all required data. you use the contract offer function to create contracts in the system. You also create and maintain various contracts with your business partners:  Lease-in for the whole locality  Lease-outs with external tenants  Lease-out with the organizational units of your company Start the RE Navigator.  List and describe the necessary steps in contract management. 1 Real estate search 1-1 Create an RE search request with Apartment as the search request type. which means that contract start date should be February 1 of the previous year.01. Create this Partner as a person. Performing Renewals and Resubmissions At the conclusion of this exercise. Exercises Unit: Contract management Topic: Creating Contracts.

Call the master record for your partner and maintain a search term and planning group for the partner. 1-3 Creating a contract offer Based on your RE search request. This change requires you to edit the frequency term in the posting parameters. country. Save your contract. and 1000 as the functional area. 1-4 Converting the offer into a contract Convert the offer you made before into a residential apartment contract. create an offer for the rental unit apartment. define 9100 (Real Estate) as the business area. Enter an offer description and assign German tenancy law to it. Assign the contract to the apartment rental (not the janitor’s apartment) and copy the conditions. 1-2 Executing the concordance search Based on the RE search request you have just created. © SAP AG RE200 2-24 . In the organizational assignment of the posting parameters. Save your contract offer. Enter a contract start date of January 1 of the previous year and a term of 120 months. The business partner category for the landlord should be organization. and enter a Name for your contract. language. 1480 (RE-FX Real Estate) as the profit center. address. select German tenancy law in the Tenancy law field. Change the due date of the conditions to the third working day of the month. search for corresponding offered objects. Assign a name and enter data in the fields for search term 1. enter the planning group A1 (domestic payments). and communication. In the company code data. Copy your rental unit apartment with the status applicant favors object. Ignore the warning message that appears. Assign standard renewal rule 1200. Create a partner for your contract with the role of landlord with vendor account. Assign business entity 1000/1## to your contract. Enter 1000 in the Company Code field. 2 Create a real estate contract with a commercial lease-in type. Choose the contract type residential lease-out in company code 1000.

enter the planning group E7 (domestic payments). Define the reminder rule Before Notification of Renewal Option with 2 months.700. Measurements are necessary for determining the price.. Save your contract. Save your contract. Create a partner for your contract with the role of master tenant with customer account. In the company code data. Assign a name and enter data in the fields for search term 1. change the due date of the conditions to the third working day of the month. First floor office right.. The business partner category for the tenant should be organization. and enter a Name for your contract.€ Determined automatically Adv. Define the following conditions: Condition Type Calculation Unit Price Distribution Formula Formula Basic rent (V100) Fixed Amount (A) 24. Ignore the warning message that appears. 3 Create a real estate contract with a commercial lease-out type. Define the profit center 1480 (RE-FX Real Estate) for your contract. language. and then extract 7 parking spaces from the pooled space for parking spaces for your business entity 1##. Enter a contract start date of January 1 of the previous year and a standard notice procedure of 1100. select German tenancy law in the Tenancy law field. Assign the rental space that has already been extracted. Assign the name 7 parking spaces for the new rental space. country. In order for the price for the specified conditions to be calculated. to your lease-out.500. Enter 1000 in the Company Code field. Select any start date and any interval.€ Determined automatically charges (V105) NOTE: You have not entered any measurements for your business entity. © SAP AG RE200 2-25 . The renewal option check is the reason for the reminder (resubmission). pmnt Service Fixed Amount (A) 13. Copy all default conditions from the assigned rental objects. In the Posting Parameters. address. Define a periodically recurring reminder rule with reminder category 20 (Check Location). Enter M001 (Persons) with 21 as the contract measurement for rental space. the formula “fixed amount” must be selected. and communication.

Enter 1480 (RE-FX Real Estate) as the profit center. enter 1480 (RE- FX Real Estate) as the profit center. Extract a further 8 parking spaces from the pooled space for parking spaces (enter the name 8 parking spaces for this new rental space). space (m2) 23. The business partner category for the tenant should be organization. address data. The business partner category for the tenant should be organization. Enter 1000 in the Company Code field. and communication data. Copy the default conditions for the parking space rental and the advance payment conditions. © SAP AG RE200 2-26 . Change the Distribution formula for parking space rental condition to parking space (C). Enter M001 (Persons) with 17 as the Contract Measurement for the 550 m² rental space. search term. Copy the default conditions for basic rent and parking space rental. Change the entry to Residential/usable space (B). Assign a name. Save your contract. Assign the following conditions for your object group: Condition Type Calculation Unit Price Distribution Formula Formula Office basic rent Com.4 Create another commercial lease-out real estate contract for an object group. and enter a Name for your contract. and 200 m² office space from the pooled space Second Floor Office (enter the name Office01 – 2 FL for the new rental space).50 Determined automatically detail (11) View the distribution formula that was determined automatically. Enter M001 (Persons) with 12 as the Contract Measurement for the 200 m² rental space. space 4. Assign the following conditions for your office space: Condition Type Calculation Unit Distribution Formula Formula Price Operating costs Com. On the Posting Parameters tab page under Organizational Assignment. Create an object group with the name entire office space. Extract 550 m² office space from the pooled space First Floor Office for the object group (enter the name Office02 – 1 FL for the new rental space). Enter a contract start date of January 1 of the previous year and assign 3000 as the notice procedure. select German tenancy law in the Tenancy law field.80 Determined flat rate (30) (m2) automatically Save your contract. Create a partner for your contract with the role of master tenant with customer account. Enter M001 (Persons) with 25 as the Contract Measurement for the 750 m² rental space. Create a partner for your contract with the role of master tenant with customer account.

the tenant’s notice is submitted on today’s date. Select your lease-in contract with the reminder category Check renewal option. In this case. Transfer the contract to the navigation area and execute the renewal process. 7 Start the resubmission process to check the validity period of your lease-in and renew it. Approve the notice with today’s date. Then set the deadline to completed and save the renewed contract. Start the process in the RE Navigator. The reason for notice is the non-authorized use of the rented spaces. © SAP AG RE200 2-27 .5 Activate your contracts in the automatically generated worklist in the RE Navigator. Activate and save the notice. View the term data for this contract. Change the automatic filter to All Dates. 6 Enter notice in the RE Navigator (in the future) for your residential contract. by selecting them and setting their status to active.

5 in the Distance column and choose Enter. select Railway Station. Select RE Search Requests. Performing Renewals and Resubmissions Start the RE Navigator in the SAP menu: Accounting  Flexible Real Estate Management  Master Data  RE Navigator (RE80) 1 Real estate search 1-1 In the navigation area of the RE Navigator. Choose (Back) to return to your RE Search Request. For the RE Search Req. In the Search Term 1 field. Type. all country and language fields. enter January 1 of the previous year. Solutions Unit: Contract management Topic: Creating Contracts. enter Applicants. enter 0. Enter a first and last name and fill in the entries for address data.Text column. Click on (Assign New Partner) and choose the default role category Applicants. then right-click and choose Create. choose Apartment and confirm your selection by choosing (Continue). Choose (Continue) to search for a corresponding partner. © SAP AG RE200 2-28 . Create a new partner by choosing Person. Save your RE search request by pressing either Ctrl+S or (Save). Enter the following data: Field Labe l Field Content s RE search request tex t >Any < February 1 of the previous Contract start dat year e Residential space fro m 70 Residential space t o 10 0 Rent exclusive of heating expenses t o 80 0 Service charges t o 25 0 Go to the Object Location tab page and choose (Insert Row). Entering Notices. In the Address Valid From field. In the Infrastructure Char. . Go to the Partner tab page. change the display to My Objects and choose (Display). and the Search Term 1 field.

go to Frequency and enter third working day of the month in the Due Date (+/-) field. choose Master Data. If the following assignments were not transferred from the offer. Save your contract by pressing either Ctrl+S or (Save). accept the Conditions of the rental object (apartment) using . and the value 1000 in the Functional Area field. 1-3 Creating a contract offer Expand the RE Search Request entry by pressing the icon to the left of the entry and double-click your RE search request. In the upper screen area. Copy your selection with (Continue). Enter Residential lease-out – CO02 in the Contract type field and the value 1000 in the Company code field. In the upper screen area. To go to the partner master data. On the Conditions tab page. Choose (Create Offer) to create an offer for this offered object. 1-4 Converting the offer into a contract Expand the Contract Offers entry by pressing the icon on the left of the entry and double-click your contract offer. © SAP AG RE200 2-29 . Choose (Close Messages) to close the message area at the bottom of the screen and go to the Partners tab page. Select your apartment on the left side of the screen and choose (Add to Favorites). Choose (Back) to return to the contract. Go to the Find tab page and choose (Find Offered Objects). Save your contract offer by pressing either Ctrl+S or (Save). 1-2 Executing the concordance search Expand the RE Search Request entry by pressing the icon to the left of the entry and double-click your RE search request. Enter the value 9100 (Real Estate) in the Business Area field. maintain them manually: Switch to the Assignments tab page and use drag and drop to assign your apartment (not the janitor’s apartment). Go to the Find tab page and select the entry under favorite offered object. Enter any description you choose in the Contract Offer Name field and select German Tenancy Law from the dropdown list in the Tenancy law field. Specify a search term and enter Cash Management Group E7 as the Company code data. choose (Create Contract) in order to create a contract. the value 1480 (RE-FX Real Estate) in the Profit Center field. Go to the Posting Parameters tab page and select Organizational Assignment in the upper screen area.

right-click. On the Account Management tab page. Set the validity start date to January 1 of the previous year. choose (Create Reminder Rule). and choose Create  Commercial lease-in. Select the Term tab and enter January 1 of the previous year in the Contract start date field and enter 120 in the Term in months field. choose (Assign). Enter 13. select the line Basic Rent. Enter 1200 in the Renewal Rule field. and language fields. Enter 24. Return to the contract entry screen by choosing .700. In the selection screen. and copy your business entity by choosing (Copy). in the Planning group field. choose German tenancy law from the dropdown list. Then press Company code and enter 1000 as the Company code. In the Tenancy law field. In the upper screen area. change the display to My Objects. and double-click Business Entity. Choose the Real Estate Contracts entry. Since no partners were found.2 Creating a lease-in real estate contract In the RE Navigator. address. Choose (Assign New Partner) and select the role Landlord with vendor account. Save your contract by pressing either Ctrl+S or (Save). Go to the Term tab page. Enter data for Search term 1. © SAP AG RE200 2-30 . Select the entries V100 (basic rent) and V105 (Adv. country. Enter 2 in the Number of Months field and choose (Continue). Enter a text in the Contract name field. create a new landlord by choosing Organization. Go to the Conditions tab page and choose (Insert Condition(s)).500 as the Unit Price and Fixed amount as the Formula.00 as the Unit Price for the AP service charge contract type and Fixed amount as the Formula. Go to the Objects tab page. Enter 1000 in the Company Code field. Create a renewal rule by choosing (Create Term) and then selecting Renewal. confirm your entry by choosing (Start Search). Enter a name and then start the search by clicking (Continue). Go to the Partners tab page. Go to the Reminders tab page. Close the lower message area by choosing (Close Messages). select the proposal. Pmnt Service charges) and continue by choosing (Copy). enter A1 (domestic payments). enter the number of your business entity (1##). and select Before Notification of Renewal Option.

choose (Assign). Enter data for Search term 1. enter 7 parking spaces. Then press Company code and enter 1000 as the Company code. Enter a text in the Contract name field. Return to the contract entry screen by choosing . Enter the number of your business entity (1##) in the selection screen. Enter January 1 of the previous year as the Contract Start date and enter the value 1100 in the Notice Procedure field. Be sure the Notice type is set to "Standard Notice Procedure". Enter a name and choose (Continue). Enter 1000 in the Company Code field. In the list that is displayed. double-click the text <new 1> and. In the Tenancy law field. and enter the following data: Field Value CoCd/BE 1000 / 1## UsageType 10 MeasType M005 Valid from January 1 of the previous year Amt Wanted 7 Start the search by choosing Perform Search. select the rental space that was extracted before. in the lower screen area. On the Objects tab page. This line represents the pooled space found. On the Account Management tab page. In the navigation area. then right-click. country. © SAP AG RE200 2-31 . and select the Rental object entry. select Real Estate Contracts. Double-click the line with the icon . and language fields. Set the validity start date to January 1 of the previous year. Choose (Create Business Partner) next to the Obsolete: Master Tenant with Customer Account field. Transfer the rental space by choosing (Transfer Rental Space(s)) in the bottom left corner.3 Creating a commercial lease-out type real estate contract. choose German tenancy law from the dropdown list. confirm your entry by choosing (Continue). in the Planning group field. choose Extract Rental Spaces. create a new tenant by choosing Organization. To extract the 7 parking spaces. enter E7 (Customer rent received). Since no partners were found. and choose Create  Commercial lease-out. and copy this by choosing (Copy). Select the Term tab. address.

Choose (Add measurement) and select M001 (Room Capacity in Persons). Choose ENTER to check your entries. Enter 21 as the value in the Amount column. Assign your measurement to the rental space First floor office right. Go to the Differing Measurements tab page and assign a new measurement type in the upper area. © SAP AG RE200 2-32 .

Enter the name Entire office space in the lower screen area. Enter January 1 of the previous year as the Contract Start date and enter the value 3000 in the Notice Procedure field. Enter a name and choose (Continue). select the entry Entire office space. Choose (Create Reminder Rule) and select As of date … every … months. Assignment. choose (Assign) and select the Object Group entry. Save your contract by pressing either Ctrl+S or (Save). Enter a text in the Contract name field. Then select all the entries using (Select All) and confirm your selection by choosing (Continue). 4 Creating another commercial lease-out real estate contract for an object group In the navigation area. In the Tenancy law field. Go to the Objects tab page. In the upper screen area. choose (Extract Rental Spaces) and enter the following data: Field Value CoCd/BE 1000 / 1## UsageType 5 MeasType A101 Valid from January 1 of the previous year © SAP AG RE200 2-33 . Since no partners were found. select Real Estate Contracts. Go to the Conditions tab page and choose (Default Condition(s)). December 24. then assign a Start Date (for example. then right-click. Go to the Posting Parameters tab page. Assignment entry and enter 1480 as the Profit Center in the sub-tab Org. year). In the upper screen area. Confirm your entries with (Continue). Choose (Create Business Partner) next to the Obsolete: Master Tenant with Customer Account field. choose German tenancy law from the dropdown list. Go to the Reminders tab page. Enter 1000 in the Company Code field. and choose Create  Commercial lease-out. Close the lower message area by choosing (Close Messages). Fill in the address data and return to the contract entry by choosing . create a new landlord by choosing Organization. 12). select the line Frequency and enter 3 (third working day of the month) in the Due Date (+/-) field. Go to the Org. Change the Reminder Category to 20 (Check Location). and an Interval in Months (for example. To extract the 550 m² and 200 m² office space.

enter Office02 – 1 FL.OG. Transfer the rental space for your object group by choosing (Transfer Rental Space(s)) in the bottom left corner. in the upper screen area. In the Amount column. double-click the text <new 2> and. Amt Wanted 550 Start the search by choosing Perform Search. select the entry IV >NEW< and choose Extract Rental Spaces again. double-click the text <new 1> and. Enter the following data in order to extract the parking spaces: Field Value CoCd/BE 1000 / 1## UsageType 10 MeasType M005 Valid from January 1 of the previous year Amt Wanted 8 Double-click the line with the icon . In the upper screen area. For the second rental space with 200 m² of office space. Then select the parking space rental and advance payment entries and choose (Continue). Transfer the rental space by choosing (Transfer Rental Space(s)) in the bottom left corner. enter 12. enter 17 for the rental space with 550 m². Go to the Posting Parameters tab page. Change the Distribution formula for parking space rental conditions to parking spaces (C). In the list that is displayed. enter Office01 – 1. Double-click the line with the icon that represents your pooled space on the second floor. change the Amt Wanted entry to 200 and press (Perform Search) again. Go to the Differing Measurements tab page and enter your two extracted rental spaces in the upper screen area in the Object ID column. in the lower screen area. enter 8 parking spaces. In the search area. Go to the Conditions tab page and choose (Default Condition(s)). In the list that is displayed. © SAP AG RE200 2-34 . in the lower screen area. select the Organizational Assignment line and enter 1480 in the Profit Center field. Choose ENTER to check your entries. double-click the text <new 1> and. In the list that is displayed. in the lower screen area. Double-click the line with the icon that represents your pooled space on the first floor. Enter M001 in the MeasType column.

© SAP AG RE200 2-35 . To create new conditions for the object group. Save your contract by pressing either Ctrl+S or (Save). Change the entry to Residential/Usable Space (B).50 as the Unit Price and Residential/Usable Space in m² as the Formula. choose (Insert Condition(s)) and double-click Object group in the Object type line. In the lower part of the screen. Enter the 23. go to tab page (Distribution) and analyze the distribution to individual rental objects. Close the lower message area by choosing (Close Messages). Select condition 11 Office basic rent detail and copy it using (Copy).

Select Give Notice on Contract. Expand Real Estate Contracts by pressing the icon on the left of the entry. © SAP AG RE200 2-36 . Exit the screen by choosing (Continue). 6 Entering notice in the RE Navigator for your residential contract (for the future) In the RE Navigator. NOTE: The button will appear only if the contract is active. Double-click the line that contains your rental apartment contract and go to the Term tab page. Right click this entry and choose Overview. change the display to My Objects and choose (Display). Enter the following data: Field Value Entry Date Current date Reason for Notice 11 Approved on Current date Choose (Activate Selected Notice) and save your notice by pressing either Ctrl+S or (Save). Change the status of the contracts by choosing to select all the contracts and then Execute Activity. To enter notice choose (Changes Between Display <-> Change) and then (Create Notice). Choose (Close Messages) to close the message area at the bottom of the screen. change the display to Worklist and choose (Display). Select the entry Non-Active contracts. Choose (Give Notice on Contract). Return to the Term tab page.5 Activating contracts In the navigation area of the RE Navigator.

© SAP AG RE200 2-37 . In the Ap/R (Approved/Rejected) field. then choose to show the renewal as having been completed. select Approved. Choose (Renew Contract) next to the date of the first end of contract. select the first option. Close the lower message area by choosing (Close Messages). Save your renewal by pressing either Ctrl+S or (Save). Choose (Limit Date Display) to change the filter to All Dates. To enter a renewal. choose (Changes Between Display <-> Change) and then go to the Term tab page.7 Start the resubmission process to check the validity period of your lease-in and renew it. First. Choose (Activate Renewal) to activate the contract renewal. start the resubmission process by choosing Reminders in the upper area of the RE Navigator. Go to the Reminders tab page. Use the Notification by date as a guide for the “Decided on” date. Select the object ID of your lease-in with Check Renewal Option as the Reminder Category and go to the Term tab page of your lease-in.