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Adjustment of Conditions

Contents:
 Procedure
 Adjustment methods
 Country-specific methods in Austria and Switzerland

NOTE:
The topic of rent adjustment has many country-
specific characteristics. Therefore, the topics
presented may not always be relevant in all
countries where this course is conducted.

 SAP AG 2008

© SAP AG RE200 4-1

0.2
Adjustment of conditions: 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 4-2

0.3
Adjustment of Conditions: Unit Objectives

At the conclusion of this unit, you will be able to do
the following:
 Describe the adjustment procedure.
 Describe possible adjustment methods.
 Describe country-specific adjustment methods.
 Explain the most important Customizing settings
(for example, for index-based rent adjustment).

 SAP AG 2008

© SAP AG RE200 4-3

0.4
Adjustment of Conditions: Business Scenario

 You want to adjust the condition amounts for your
contracts.
 Depending on the contract, you select the free
adjustment or the index-based adjustment.
 You have to make adjustments for your rental
objects in Austria and Switzerland.

 SAP AG 2008

© SAP AG RE200 4-4

0:  Graduated rent  Free adjustment  Adjustment with index  Adjustment based on a representative list of rents  Adjustment based on comparative apartments  Adjustment on the basis of an adjustment measure  Adjustment of advance payments during service charge settlement  Adjustment using BAdI technology  In Enhancement Package 2 you can also activate the Cost Efficiency Analysis subfunction.0:  Graduated rent  Free adjustment  Index-linked rent adjustment  Adjustment measure  Adjustment of advance payments (through service charge settlement)  Country-specific adjustment methods  Adjustment based on a representative list of rents  Adjustment based on comparative rent  Cost-efficiency analysis  15th adjustment according to Austrian law  Rent Adjustments According to Swiss Law  SAP AG 2009  The following adjustment methods are available in Release ERP 6.0. This adjustment method is especially used to adjust conditions for publicly subsidized apartments in Germany.5 Adjustment Methods  The following adjustment methods are available in SAP ERP 6. © SAP AG RE200 4-5 .

 You can define the adjustment using an adjustment measure so that the rule does not have to be explicitly assigned to the condition. rent For example. is already activated with the option of performing another adjustment. you can. AP operating costs Manual For example. exists but is defective.0.  You can combine adjustment methods in order to adjust a condition with various adjustment methods. etc. © SAP AG RE200 4-6 . which means that the individual conditions can be adjusted using the same method. you can decide which conditions should be explicitly included. check for each condition type whether an adjustment has already been performed and what the current status of the adjustment is (exists but is not activated. When performing the adjustment. parking space rent Manual Contract AP adjustment term For example.6 Adjustment Term Conditions Conditions Index adjustment term Rental object For example.).  You can assign several conditions to one adjustment term.  In the contract. at any time. AP heating costs Current status of the adjustment for the corresponding condition  SAP AG 2008  Adjustment terms are defined in the contract and assigned conditions.

and planned adjustments can be viewed in the contract dialog. After the cause of the error has been removed. if correspondence necessary Approval Enter. a complete log and results report are created for the steps.  Various steps must be performed individually for each adjustment run.7 Process for Adjusting Conditions Processing in the application Check and change.  The individual steps are:  Determine and process adjustments  Generate correspondence for approval. © SAP AG RE200 4-7 . If a step is interrupted during the update run. Capping rules must be defined in Customizing and assigned to the individual adjustment methods. if necessary (if permitted) List of Simulate calculated Save adjustment adjustments adjustment Data Adjustment run • Header (ID) • Adjustment records Check and Notification • Log change. The simulation generates a list of possible changes. If the simulation matches the requirements. You can change the values in the list depending on how the adjustment term has been defined in the contract. this is logged with reference to the respective activity. enter approval or rejection  Activate adjustments  Generate correspondence for adjustment  Where possible. the adjustment must be restarted at this point. Activate Lease-out if necessary Data new Adjustment conditions Rental run object  SAP AG 2008  If you want to adjust conditions.  Rent adjustments that are subject to approval (dependent on how the adjustment term is defined in the contract) can only be activated after the approval has been entered. defective.0.  Successful.  The system takes into account any periods and limitations that are set by law. you can first simulate the adjustment. it can be used in the update run. if they were defined in Customizing.

): Predefined rule: • Adj.8 Interaction Between Customizing and Application Contract Customizing Adjustment rule 01 (free adj. rule 02 • Store rent Store 1 € 10.000 monthly Adj. You can also exclude individual fields from changes. rate: 5% • Adj.000 monthly Adj. rule 02 • Warehouse rent Warehouse 1 € 10. you define adjustment clauses that you can assign in the application.  SAP AG 2009  In Customizing.0. rate: 3% • Frequency 12 months • Frequency 12 months • Earliest adjustment • Earliest adjustment Adjustment rule 02 (index): Predefined index rule: • Index type: CPI • Index type: CPI • Base year 1991 = 100 • Base year 1991 = 100 • Index increase 4 points • Index increase 5% • Pass-on rate 75% • Pass-on rate 100% • Frequency 12 months • Frequency 12 months • Earliest adjustment • Earliest adjustment Contract conditions: • Office rent Office 1 € 2.000 monthly Adj. © SAP AG RE200 4-8 . rule 01 • .. it is therefore possible to define an adjustment term that is not displayed to the user in the characteristics because this term cannot be changed. For example.  Adjustment terms can be controlled on an individual basis and users can be given access for changes..

Example The contract contains a rent condition of € 1. As a result.9 Free Adjustment Adjustment methods FREE Absolute adjustment: Percentage adjustment: With € 37 / unit of the measurement type By 10% Internal flow of the adjustment:  Determination of adjustments  Adjustment editing  Approval correspondence  Approval or rejection  Activation of adjustments  Adjustment correspondence  SAP AG 2008  In the free adjustment method.0. you can generate a new condition or change an existing condition. A percentage transfer could unfold such that 30% of the € 1.000 would generate a new operating costs advanced payment condition.000. Starting from an existing condition.  Method-specific settings must be configured for the adjustment run.  It can also be a transfer. This means that you can generate new conditions using the free adjustment function.  You can transfer values when using the free adjustment function. you can change condition amounts in terms of a percentage or an absolute amount (whole or by measurement unit). a 30% rent reduction and a new operating costs advanced payment including the corresponding 30% are in the contract starting from the effective from date. © SAP AG RE200 4-9 .

© SAP AG RE200 4-10 . you can define a minimum change in both percentage and points.  For the adjustment term. the index and the relevant base year are already defined in the contract. The adjustment is made based on these entries and based on the index points maintained in Customizing. A contract condition is not adjusted unless the corresponding rules in the contract (for the condition) allow it.0.10 Adjustment with Index Adjustment Methods INDEX Contract 1: Contract 2: Index type CPI Index type CPI Only increase > 5% Only increase > 4 points Amount passed on 100% Amount passed on 75% Internal flow of the adjustment:  Determination of adjustments  Adjustment editing  Approval correspondence  Approval or rejection  Activation of adjustments  Adjustment correspondence  SAP AG 2009  In the adjustment process with index.

0. as well as the crediting provisions. The following adjustment methods exist:  BADI Free with BadI technology  CH01 Adjustment for Switzerland  COMP Comparative apartment  FREE Free  INDX Index  RLRA Representative list of rents  SALE Sales-based settlement  SCSE Service charge settlement  TASK Adjustment measure  The adjustment reason defines the minimum and maximum increase amounts for an adjustment rule. © SAP AG RE200 4-11 .  In the adjustment block you define blocking reasons for the conditions that are to be excluded from the adjustment for a specific period of time. surcharges for each adjustment rule Procedure-specific Customizing Index Representative Comparative Adjustment adjustment list of rents apartments measure Modify standard calculation rules  SAP AG 2009  Each adjustment rule is based on an adjustment method.11 Customizing Independent of the Procedure Define adjustment rule Combined adjustment rule (optional setting) Define adjustment reason Procedure-independent Customizing Define adjustment lock Runtime-dependent parameters Reasons for change. These are predefined in the standard system and can also be combined.

In some cases. © SAP AG RE200 4-12 . Runtime-dependent parameters control the maximum increase that may be possible for a specific rule within a defined period of time. These can be predefined by legal regulations (capping provisions). it may be necessary to include additional conditions for the calculation.  Reasons for change and surcharges for adjustment rules define how and which conditions are to be included for adjustment according to a specific rule. for example. when an appreciation surcharge defined as a separate condition should be included in the basic rent.

 In order to carry out procedure-dependent Customizing.  In the adjustment rule for comparative apartments.0. you first have to define a corresponding adjustment rule in procedure-independent Customizing. © SAP AG RE200 4-13 . You assign them to the contract as a term on the Adjustment tab.  Comparative Apartment:  In order to use the adjustment method based on comparative apartments.12 Procedure-Dependent Customizing Representative Index Adjustment List of Rents Comparative Apartments Adjustment Measure Define Define fixtures and Define rules for Define field status parameters for fittings characteristics determining comparative variants index rule rents Define Define field status representative Define index list of rents rebasing factors Define parameters for Define basic values adjustment rule for representative Define index list of rents levels Cost structuring Define special regulations for adjustment based on representative list of rents Modify standard calculation rules  SAP AG 2008  There are individual Customizing options for each rent adjustment method. and by the German Federal Statistical Offices. you define (among others) Which comparative group can be used for the comparison How the average rent should be determined  To do this.  Index-linked rent adjustment:  You have to define indexes with the corresponding index bases and index levels for index-linked rent adjustment. you have to define a group of comparative apartments. The indexes are published by housing and real estate organizations. you must have first defined a corresponding adjustment rule in the procedure- independent part of Customizing.  Adjustment based on representative list of rents:  Here you can define various representative lists of rents for various communes or regions.

 First you define the option fields using field status variants that are to be available for the selection of adjustment parameters in the application. © SAP AG RE200 4-14 .  Then you define the required parameters that are to apply to the corresponding adjustment rule. Adjustment measures:  This type of rent adjustment can be triggered by modernization measures or expert opinion.

 Index classes 5 and 6 in standard Customizing are intended for the real estate industry.0. before you can configure the index series. index series with base year day and index value  SAP AG 2008  Index classes form the basis for further definition of adjustment indexes. cost of living. without base year day and index value Definition of the base years for which Base years for index series index series are to be set. consisting of year.  Index series are mathematical series for the description or calculation of price increase rates. consisting of year. the consumer price index for Germany Alternative 1 Index points for index series Index series.  Index class 6 is intended for general index adjustment. Alternative 2 Index points for Index series.  When you work with index series based on base years.13 Index: Customizing  You can define index levels for the index adjustment Definition of the most important properties: Index classes  Depending on age  Depending on year  Historical indexing Index series For example. month.  Index series can be set up with or without a base year. © SAP AG RE200 4-15 . Both variants can be mapped.  Index class 5 is intended for operating costs settlement according to the operating costs index for Switzerland. you have to define the necessary base years first. month.  The real estate industry uses price increase rates (for example. consumer price index) as the basis for index-linked rent adjustment.

 Example: If the frequency is 1. . 1 t  Flexible Adjustment delay in months (for instance 2) Case 1: Rent adjustment run = Oct.14 Frequency and Delay Frequency (for instance 3) of rent adjustment (RA) Rental start RA RA Flexible Jan. 1 Apr. 1 Oct. 1 Oct. If the entry for the flexible adjustment frequency is Earliest.  Adjustment frequency: If the entry in the flexible adjustment frequency field is Earliest. In our example. 1 t  Backwards Index data Date that adjustment is valid from = Date of rent adjustment run Case 2: Rent adjustment run = Aug. From date). The difference is the date assigned to the rent adjustment run. 1.  SAP AG 2008  You enter the adjustment frequency and delay for the index adjustment data of the adjustment term. adjustments can be made at any time. the next possible adjustment is not possible until three months after an adjustment. adjustments can only be made every three months. . 1 May 1 June 1 July 1 Aug. Aug. the index for August is available and the new date for the conditions is Oct. Backwards Aug. 1. 1. adjustments can be made any time after three months (as long as this is after the First adjust.0. the frequency is taken to mean the minimum duration. 1 July 1 t Rental start RA RA RA RA RA . 1 Apr. Jan. 1 t Index data Date that adjustment is valid from Date of rent adjustment run In both cases. If the frequency is 3. © SAP AG RE200 4-16 . Otherwise adjustments can only be made with the specified frequency.

2006 retroactively to August 1. the adjustment is subject to a delay. 2007. 2007 retroactively to November 1. the system would check for the index level of 08/01/2006 whether the required minimum change has been reached and raise the rent (if necessary) on November 1. provided the required minimum change has been reached. provided the required minimum change has been reached. For an adjustment delay of -3 months. Adjustment delay: As index data is always issued with a delay and the rent adjustment normally applies to a date in the future. For an adjustment delay of -3 months. the adjustment would be made on the basis of the index level of November 1. 2006. 2006. 2005 Adjustment frequency: 12 months Flexibility: fixed Desired adjustment date: November 1. the system would check for the index level of November 1. You have the following options:  Example: Last adjustment: November 1. the adjustment would be made on the basis of the index level of February 1. 2006. 2006 For an adjustment delay of 3 months. 2006 whether the required minimum change has been reached and raise the rent (if necessary) on February 1. © SAP AG RE200 4-17 . 2006 For an adjustment delay of 3 months. Flexibility: earliest Desired adjustment date: November 1.

Certain index series are no longer used.0 “Old” 1 2003 CPI 2 2003 104.1 “Old” 5 2003 CPI … 2003 … “Old” … 2003 CPI 10 2004 106.6 “Old” 3 2003 CPI 4 2003 104.  A conversion table is provided for the transitional period.3 “Old” 4 2003 CPI 5 2003 104.  SAP recommends permanently converting contracts that are value guaranteed by “expired” indexes.15 Rebasing the Index (Customizing) Index Month Year Value Index Month Year Value CPI 1 2003 104. but on the basis of the new index calculations. Index series that are no longer valid are continued. © SAP AG RE200 4-18 .5 “Old” 2 2003 CPI 3 2003 104. all indexes used previously have been standardized.2 “Old” 10 2004 Determination of new index values for finished index series  Rebasing  SAP AG 2008  With the introduction of a new base year for consumer price indexes.0.

16 Adjustment Measure Adjustment Rental object Contract measure 1 Rental object Contract Rental object 2 Assignment of Costs item Costs1item the relevant 3 Contract group rental objects / Costs2item group contracts 3 group 3 Data for the measure: Parameters for the procedure:  Validity period  Rent capping according to legal specifications  Cost structure  Waiver condition  Partners  Objects  Order/WBS element  Reminder rules  SAP AG 2008  You can use the adjustment measure to process the Modernization.  You can define legal rules in Customizing. (For example.  You first have to enter a measure as the master record. that are to apply to the increase.0. Expert Opinion and Custom Measure procedures.)  You can automatically set a waiver condition for the object/contract. which shows the difference of the capped amount to the calculated value. © SAP AG RE200 4-19 . to this measure. in Germany you can only pass on a maximum of 11% of the modernization measure to the tenant.  You then assign the relevant rental objects.

in the case of a modernization or a remodelling It is optional and it is assigned to a partial cost analysis.17 Adjustment Based on Cost Efficiency Analysis Main cost analysis (optional) Partial cost Additional cost analysis 3 analysis Partial cost Data for: analysis 2  Objects Assignment of Partial cost the relevant analysis 1  Measurements rental Data for:  Costs of the objects/contracts  Objects measure  Measurements  Financing  Costs of the measure Optional  Financing Rental object Contract  Groups together several partial and 1 additional cost analyses Rental object Contract  Does not contain any adjustment-relevant Rental object 2 data 3 Contract 3  SAP AG 2009  The adjustment based on a cost efficiency analysis (CEA) is designed only for publicly subsidized apartments.  The cost efficiency analysis is a special type of adjustment measure. amenities level factors (which specify the relative desirability of rental objects due to location) are also considered. for example. for example. In addition.  The cost efficiency analysis follows the cost coverage principle. the cost rent and operating costs should cover the costs for the landlord. you create a cost efficiency analysis in the menu tree under "Adjustments".  The cost efficiency analysis is divided into the measure types: partial cost analysis. they should not be profit-maximizing. It is also optional. the RE Navigator (RE80).0. however. and is used only in Germany. and main cost analysis.  In the application. investment costs.  Main cost analysis: Groups together several partial and additional cost analyses and does not contain any data relevant for the adjustment. that is.  Partial cost analysis: Defined total costs and the financing plan for all objects involvedAdditional cost analysis: Contains subsequent basic data for the analysis. © SAP AG RE200 4-20 .  During the adjustment. current expenses and financing plans are taken into account. additional cost analysis.

The method-specific part is in a separate IMG node under the "Adjustment Measure" node . You can set up the adjustment rule in the cross-method part. The prerequisite is that the adjustment term "cost efficiency analysis" is assigned to the conditions in the contract or the rental object.  You can define the adjustment method "cost efficiency analysis" in Customizing. You can make an adjustment after the CEA for rental objects and contracts. © SAP AG RE200 4-21 .

00 4. fixture and fittings category.00 98.points Min. which contains surcharge and reduction classes. size class) are specified.00 70. location 95.26 4. location 100. 1912 June 30.  Since the representative list of rents of the individual cities can have not only very different values.00 … … Value table Building age from July 1. 1948 to June 30.00 102. there are BAdIs and comprehensive control tables which you can use to enhance the common methods.  When you perform an adjustment using a representative list of rents.00 96. © SAP AG RE200 4-22 .00 3 Good location July 1.. 1948 June 30. influences Resid.48 3.64 4. location Def.00 2 Basic to average resd.  If a representative list of rents.18 5.00 3 Avrge resd.00 …  SAP AG 2009  The representative list of rents is defined in Customizing according to structure: parameters relevant for the adjustment (building age category. only the fixtures and fittings characteristics that are assigned to the rental object and the relevant representative list of rents are taken into account.points 1 Basic resid. location 1 Basic fixtures and fittings June 30.00 3. location Misc.35 3.18 Adjustment Based on a Representative List of Rents Building Age Categories Location classes Fixt.22 4. you can assign the corresponding characteristics to these classes. 1974 Location 3 Good resid.85 Characteristic categories Fixtures and fittings Surcharges/reductions Example: Resid.00 98..00 96.96 70. … 70.0. 1974 . location class. location 2 Medium-range fixt.points Max.69 50.00 50.00 70.00 2 Avrge resd. location 97.  The system uses the structure parameters to generate a value table that you fill with the current values from the representative list of rents.00 94. but also very different structures.00 90.00 90. location Fixtures and fittings 3 Good fixtures/fittings Size From area to area From amount To amount Mean 20. 1912 20.00 50./fittings July 1./Fittings Categories Size Classes From date Valid to From area To area 1 Basic resid. is defined.00 2. 1948 3 Good fixtures/fittings 50.

© SAP AG RE200 4-23 . which are used internally. You must also define whether the new rent amount should be used as an average amount for all assigned objects or if the n-highest entry should be used.  Your own comparative apartments.10/m2 3 rooms  SAP AG 2009  You can assign each rental object to comparative groups.80/m2 with residential Basic rent: 3 rooms space 150 m² Adjust 2000 € 3 rooms = € 13.50/m2 3 rooms Third-highest amount: Comparative apartment 5 Residential space: 150 m2  Adjustment to € 14.19 Adjustment Based on Comparative Apartments Adjustment rule: comparative apartments Company code: 0001 Number of comparative apartments: 3 Average: NO Measurement type: residential space (m²) Condition purpose: comparative rent Comparative apartment 1 Residential space: 150 m2 Basic rent: € 14. Assign Residential space: 150 m2 space 150 m² Basic rent: € 13. you must make settings as to whether rental objects.30/m2 3 rooms Rental unit 4711 Comparative Comparative apartment 3 Residential group 1111.33/m² Comparative apartment 4 Residential space: 150 m2 Basic rent: € 14. are not considered. This comparative group contains a legally- defined minimum number of comparative apartments (defined in Customizing). should be considered.  Your own comparative apartments and external comparative apartments can be used for the comparative group.0. which are vacant at the time of adjustment.  In Customizing.28/m2 3 rooms Comparative apartment 2 Residential space: 150 m2 Basic rent: € 13.10 Basic rent: € 14.

.6 to 107.250 – 500)/15*2 = € 600 Main rent: € 500 Index point: 102..250  SAP AG 2008  The adjustment by fifteenths is the incremental increase of the main rent to the appropriate main rent within 15 years from the 1st of January following the sale. © SAP AG RE200 4-24 .8 points Appropriate main rent = 1..6 * 107. Third year = 500 + (1.35 – 500)/15*3 = € 662...313..250 / 102. This increase is subject to the value guarantee index.20 Austria: Adjustment by Fifteenths Calculation of the Condition Amounts Lease-Out First year = 500 + (1.6 Index increase from 102. Appropriate main rent = € 1.313..250 – 500)/15*1 = € 550 Second year = 500 + (1.35.0.66 .  It can be used to guarantee the value of office space rent according to the regulations of the tenancy law when an immediate increase is not permitted and instead must be distributed across a time span of 15 years..8 = € 1.

250.35 A fifteenth is 813.8 = € 1.00. A fifteenth of this difference is therefore € 50.8 This results in a value-guaranteed appropriate main rent in the amount of 1.313.250.00 Index adjustment: CPI = 107.6 x 107.313. The adjustment by fifteenths is supported as an enhancement of the existing adjustment methods.35 – 500 = € 813.35 / 15 = € 54.66 (3/15) = € 662.35 The difference after the value guarantee is (at this point in time) 1.00 Appropriate main rent € 1. First year of increase: 500 + 50 (1/15) = € 550.22 This results in an adjustment for the third year to: 500 + 162. The calculation procedure is implemented using the BAdI technology for rent adjustment.00 Value guarantee basis: CPI 2000 = 102.00 Second year of increase: 500 + 100 (2/15) = € 600.6 (5% threshold) This produces a difference of € 750.00 / 102.00.66 © SAP AG RE200 4-25 . Example Old main rent € 500.

000  SAP AG 2008  You use the rent adjustment according to Swiss law to adjust the net rent conditions due to the following changes:  Relative factors A change in the rent due to a mortgage rate change is calculated based on the legal rate of change for the difference between the mortgage rate based on the current rent and the mortgage rate that should be enforced.21 Switzerland: Rent Adjustment According to Swiss Law Relative Factors Absolute Factors  Mortgage rate  Insufficient net/  General operating gross ROI and maintenance  Prevailing rent costs  General inflation Lease-Out Net rent: CHF 1.  General inflation (purchasing power protection for risk-bearing capital) The system first determines the National Consumer Price Index at the time of the last rent increase.  General operating and maintenance costs For calculations the system uses only the flat rates applied in practice for each year for the reasons for cost increase. and then the authoritative index that supports the new increase. These flat rates correspond to the locally different percentage rates. The value of 40% is defined as a computational factor in Customizing and can thus be adjusted in accordance with legal changes. © SAP AG RE200 4-26 . each of which applies to one year. The resulting difference in points is converted to percentages and the result of this computation is multiplied by 40%.0. The mortgage rate corresponds to the mortgage rates of the cantonal bank of the canton in which the business entity is located. These percentage rates are recorded centrally in the system and assigned to the relevant adjustment rule.

branch to following path in the menu tree: Adjustment of Conditions → Modify Standard Calculation Rules for Adjustment → Implement Enhancements for Condition Adjustment (BAdI)  An overview screen will then appear.  For more information on adjustment methods for Austria and Switzerland.  Choose Display Implementation to display the details of the BAdI.  From there.0. Select the BAdI that you want to activate. see the following notes:  Note 890267 – Adjustment by fifteenths (Austria)  Note 912290 – Adjustment according to Swiss law © SAP AG RE200 4-27 . go to Customizing using transaction “RECACUST”. Procedure : Adjustment of conditions (rent adjustment) Modify standard calculation rules for the adjustment Implement enhancements for the rent adjustment (BAdI) Adjustment by fifteenths Adjustment rule according to Swiss law BADI_REXC_AJ_ADJM_AT_15 BADI_REXC_AJ_ADJM_CH01  SAP AG 2009  To implement the BAdIs.22 Adjustment in Austria / Switzerland: Customizing  The adjustment methods are mapped using a BAdI implementation. with a list of the available BAdIs.  The implementation is made in Customizing.  Activate the desired BAdI by setting the flag in the Active(IMG) column.

23 Adjustment: Summary In this unit you have learned about the following:  The adjustment methods that can be used in Flexible Real Estate Management  The range of functions that the individual adjustment methods have  The procedure you use in Customizing  Which country-specific methods are mapped  SAP AG 2008 © SAP AG RE200 4-28 .0.

then make any changes necessary. representative list of rents. You also need to assign the Office Basic Rent condition. index adjustment. Convert the simulation to an update run and save it. you will be able to do the following:  Use the different rent adjustment methods. Assign the adjustment rule Index adjustment with suggestion to the first commercial lease out (Exercise 3. 1-4 Activate the adjustment. Check the condition amount change again and the change to the adjustment status for your contract in the RE Navigator. Select your business entity 1000/1##. perform only the activities determine adjustments and processing of adjustments. 1 Adjustment with an index 1-1 Check the adjustment rule of your first commercial contract. Run the simulation and check the results for your internal contract. © SAP AG RE200 4-29 . Switch the minimum change in points to 1 point and set the adjustment frequency to earliest. The exercise marked with an asterisk (*) is optional. Adjustments should be made as soon as possible and include occupancy contracts that are both subject to approval and not subject to approval. enter approval and activate. First. Contract Management). 1-2 Simulate and execute the index adjustment for your contract. or adjustment measure. Lease-outs can be adjusted using the free adjustment. 1-3 Check your contract for changes in the adjustment status and check for changes that have already been made to the condition amount. comparative apartment. Exercises Unit: Adjustment of Conditions Topic: Performing the Steps Required to Adjust Conditions At the conclusion of these exercises. Select a lease-out as your adjustment object. simulate and convert to an update run. You need to carry out the following steps: Check the adjustment terms in the contract/object.

2-5 Check the condition amount change and the change to the adjustment status for your contract in the RE Navigator. This includes the following: The representative list of rents assigned in the master record for the business entity The construction year and the location class in the master record for the building The size class. 2-3 Simulate and execute the representative list of rents adjustment for your residential contract. Adjustments should be made as soon as possible and include occupancy contracts that are both subject to approval and not subject to approval. © SAP AG RE200 4-30 . Activate and save the adjustment. as determined by the assigned area of the rental unit 2-2 Check the adjustment rule of your residential lease out. Convert the simulation to an update run and save it. 2-4 Enter the approval by editing the adjustment that was previously executed. perform only the activities determine adjustments and processing of adjustments. Select only the contracts for YOUR business entity 1000/1##.2 Adjustment using a representative list of rents 2-1 Check the various data that is necessary for the adjustment of the representative list of rents. First. Assign the adjustment rule Residential rental for the Basic rent condition.

The resulting adjustment should take effect on January 1 of the current year. Assign the name GR##. The modernization should be carried out from July 1 to December 31 of the previous year. The modernization is carried out on your residential building. Enter any costs for the cost items facade and window. First. © SAP AG RE200 4-31 .3* Adjustment using an adjustment measure 3-1 Creating an adjustment measure Start the RE Navigator and enter a modernization as an adjustment measure. Convert the simulation to an update run and save it. Adjustments should be made as soon as possible and include occupancy contracts that are both subject to approval and not subject to approval as well as vacant rental objects. 3-3 Check the condition amount changes and the change to the adjustment status for your vacant apartment in the RE Navigator. Enter a date for informing the tenant in your apartment about the planned measure. You should therefore assign both apartments as relevant objects. Activate the adjustment. 3-2 Simulating and carrying out an adjustment through modernization Select only the contracts for YOUR business entity 1000/1## and carry out an adjustment with your modernization measure GR##. perform only the activities determine adjustments and processing of adjustments.

Save the contract by choosing either Ctrl+S or (Save).000 and the Flexible Freq. 1-2 Simulating and executing an index adjustment In the SAP menu. Click (Create Term) and select the term Index adjustment with suggestion. In the lower screen area. Change Pts entry to 1. change the display to My Objects and choose . Double-click the number of your first commercial lease out (Exercise 3. choose: Accounting  Flexible Real Estate Management  Master Data  RE Navigator (RE80) In the navigation area of the RE Navigator. Go to the method-specific sub-tab (Index adjustment with suggestion). select the entry Office Basic Rent and press to continue. Go to the Adjustment tab page. choose: Accounting  Flexible Real Estate Management  Adjustment of Conditions  Adjustment  Specify Adjustments (REAJPR) Enter the following data: Field Name or Data Type Values Company Code 1000 Site for Contract 1## Ensure that Simulate Adjustment Run appears in the Mode field. Choose (Unlink from Customizing) to break the link to Customizing and to be able to make changes. Double-click the line entry in the Condition column. Change the Min. As before. click (Expand) to expand the sub-tab. Contract Management) and then choose (Changes Between Display <-> Change). © SAP AG RE200 4-32 . Solutions Unit: Adjustment of Conditions Topic: Performing the Steps Required to Adjust Conditions 1 Adjustment with an index 1-1 Checking the adjustment rule Start the RE Navigator. On the Adjustment tab page. In the SAP menu. In the following pop-up. select the Index field. field to Earliest. Expand the Real Estate Contracts entry by pressing the icon on the left of the entry. go to the sub-tab Conditions.

Next to the Occupancy Contracts text. Go to the lower screen area. Execute the Edit Adjustments program. Go to the Activity Parameters tab page. 1-3 Checking the contract for changes Start the RE Navigator. Exit the log and the adjustment dialog screen by choosing (Back) twice. Press the icon on the left of the Real Estate Contracts entry to expand it. In the SAP menu. Double-click the number of your internal lease-out and then go to the Adjustment tab page. Choose (Execute). Select Enter. select the Next Possible Valid-From and Occupancy Contracts fields. © SAP AG RE200 4-33 . Go to the Activities tab page and make sure that only the Determine Adjustments and Processing of Adjustments entries are selected. change the entry in the Subject to Approval field to Both. to the Conditions tab page. Select the displayed line and choose to activate the adjustment. The condition amount has not yet changed. and click the Inactive Adjustment Exists entry. Go to the Conditions tab page for the contract. choose: Accounting  Flexible Real Estate Management  Adjustment of Conditions  Adjustment  Edit Adjustments (REAJCH) Place the cursor in the Identification field and call the input help. Select Copy in the display to bring your adjustment entry into the selection screen. Enter your user name in the Entered By field. 1-4 Activating the adjustment In the SAP menu. Select the line for your internal contract and choose (Show detail). Confirm the data by choosing (Continue) and accept the simulation by clicking Change from Simulation to Update Mode. choose: Accounting  Flexible Real Estate Management  Master Data  RE Navigator (RE80) In the navigation area of the RE Navigator. Exit the results screen by choosing (Continue). Deselect all other entries. Save the update run by choosing (Save). change the display to My Objects and choose .

change the display to My Objects and choose . In the SAP menu. Go to the Additional Data tab page and check the Location Class (3—good residential location). Double-click the number of your residential contract. Exit the log and the adjustment dialog screen by choosing (Back) twice. In the SAP menu. To check for changes. Save the activation by choosing (Save). choose: Accounting  Flexible Real Estate Management  Master Data  RE Navigator (RE80) In the navigation area of the RE Navigator. Double-click your business entity and go to the Reference factors tab page. On the Dates tab page. check whether the Basic Rent condition type has been assigned. The representative list of rents M-2007 was assigned here. click the Active Adjustment Exists entry. Expand Business Entities by pressing the icon on the left of the entry. Go to the Adjustment tab page. Double-click the number of your internal lease-out and then go to the Adjustment tab page. Expand the Buildings entry in the RE Navigator by clicking on the left of the entry. Go to the Conditions sub-tab. Go to the Conditions tab page for the contract. 2 Adjustment using a representative list of rents 2-1 Checking the adjustment parameters Start the RE Navigator. Expand the Rental Objects entry in the RE Navigator by clicking on the left of the entry. Exit the results screen by choosing (Continue). double-click the line entry in the Condition © SAP AG RE200 4-34 . 1980). change the display to My Objects and choose . If it has not been assigned. 2-2 Expand the Real Estate Contracts entry in the RE Navigator by clicking on the left of the entry. choose: Accounting  Flexible Real Estate Management  Master Data  RE Navigator (RE80) In the navigation area of the RE Navigator. Click (Create Term) and select the term Residential rents. In the lower screen area. Change the management of time slots (window in the upper screen area) to Display all periods. In the sub-tab Conditions. Double-click your residential building (1000/1##/2). You will find a summary of all the data that is relevant to the representative list of rents here. check the entries for the construction year (January 1. Double-click your janitor’s apartment and go to the Additional Data tab page. restart the RE Navigator. Press the icon on the left of the Real Estate Contracts entry to expand it.

© SAP AG RE200 4-35 . select the entry Basic Rent and press to continue. column. In the following pop-up.

Choose (Approve). Select the displayed line and choose (Show Detail). Save the adjustment by choosing (Save). Go to the Activity Parameters tab page. Highlight your recent entry. select the Next Possible Valid-From field and the Occupancy Contracts field. Exit the results screen by choosing (Continue). In the lower screen area. change the entry in the Subject to Approval field to Both. Confirm today’s date by choosing (Continue). select the Representative List of Rents field. © SAP AG RE200 4-36 . 2-4 Entering the approval and activating the adjustment of the representative list of rents: In the SAP menu. 2-3 Simulating and executing an adjustment of the representative list of rents In the SAP menu. Select Copy in the display to bring your adjustment entry into the selection screen. Select Enter. choose: Accounting  Flexible Real Estate Management  Adjustment of Conditions  Adjustment  Edit Adjustments (REAJCH) Place the cursor in the Identification field and call the input help. Click (Activate Adjustment) and save the adjustment by choosing (Save). Choose (Execute). Accept the simulation by choosing (Go from simulation to update run). Next to the Occupancy Contracts field. Exit the log and the adjustment dialog screen by choosing (Back) twice. Select the line and choose (Show Detail). Go to the Activities tab page and make sure that only the Determine Adjustments and Processing of Adjustments entries are selected. choose: Accounting  Flexible Real Estate Management  Adjustment of Conditions  Adjustment  Specify Adjustments (REAJPR) Enter the following data: Field Name or Data Type Values Company Code 1000 Site for Contract 1## Ensure that Simulate Adjustment Run appears in the Mode field. Enter your user name in the Entered By field. Execute the Edit Adjustments program.

Exit the log and the adjustment dialog screen by choosing (Back) twice. © SAP AG RE200 4-37 .

change the display to My Objects and choose . © SAP AG RE200 4-38 . enter an amount of your choice in the Costs as Basis for Increase field. choose: Accounting  Flexible Real Estate Management  Master Data  RE Navigator (RE80) In the navigation area of the RE Navigator. then click the right-hand mouse button and choose Create  Modernization. Enter the following data: Field Name or Data Type Values Adjustment measure GR## Name >Any< Start on July 1 of the previous year End on December 31 of the previous year Activated on January 1 of the current year Go to the Costs tab page and choose (Activate Costs Items). In the lower screen area. change the display to My Objects and choose . select the entries Façade and Window and confirm your selection by choosing (Continue). Select Adjustment Measures. Double-click the number of your residential contract and then go to the Adjustment tab page. 3* Adjustment using an adjustment measure (exercise is optional) 3-1 Creating an adjustment measure In the SAP menu. restart the RE Navigator. Go to the Conditions tab page for the contract. Exit the results screen by choosing (Continue). Go to the Conditions tab page on the lower part of the screen and click Active Adjustment Exists. choose: Accounting  Flexible Real Estate Management  Master Data  RE Navigator (RE80) In the navigation area of the RE Navigator. Press the icon on the left of the Real Estate Contracts entry to expand it. Change the management of time slots (window in the upper screen area) to Display all periods. In the Costs hierarchy. Choose Yes to continue. 2-5 To check for changes. In the SAP menu.

change the entry in the Subject to Approval field to Both. Occupancy Contracts. click (Add New Entry). Staying in the Costs tab page. Select all entries and choose (Activate Adjustment). Save your modernization measure by choosing (Save). Select both objects and transfer them by choosing (Transfer). 3-2 Simulating and executing an adjustment In the SAP menu. Exit the log and the adjustment dialog screen by choosing (Back) twice. Create one for the adjustment date by entering January 1 of the previous year in the Calculated Fr-Date field. the Usage Type 1 and choose (Start Search) to execute the selection. Go to the Activities tab page and make sure that only the Determine Adjustments and Processing of Adjustments entries are selected. Save the adjustment by choosing (Save). Click the Rental object entry. Go to the Window entry in the upper screen area and enter an amount of your choice as the basis for the increase here too. © SAP AG RE200 4-39 . Go to the Activity Parameters tab page. Accept the simulation by choosing (Go from simulation to update run). select the Modernization field. Enter the Company Code 1000. select your Business Entity 1##. In the lower screen area. choose: Accounting  Flexible Real Estate Management  Adjustment of Conditions  Adjustment  Specify Adjustments (REAJPR) Enter the following data: Field Name or Data Type Values Company Code 1000 Site for Contract 1## Ensure that the Mode field is filled with Simulate Adjustment Run. Choose (Execute). Exit the detail screen by choosing (Continue). select the Next Possible Valid-From. Next to the Occupancy Contracts field. and Vacant Rental Objects fields. Go to the Processing Parameters tab page and enter the value GR## in the Adjustment Measure field. Select the line for your residential contract and choose (Show Detail).

Go to the Conditions tab page of the contract. Exit the results screen by choosing (Continue). Go to the Adjustment tab page and select the residential rental line in the upper area of the screen. Expand the Rental Objects entry by choosing on the left of the entry. 3-3 To check for changes. Change the management of time slots to Show all time periods. restart the RE Navigator. choose: Accounting  Flexible Real Estate Management  Master Data  RE Navigator (RE80) In the navigation area of the RE Navigator. © SAP AG RE200 4-40 . Double-click the number of your vacant apartment. change the display to My Objects and choose . Go to the Conditions tab page on the lower part of the screen and click the Active Adjustment Exists entry. In the SAP menu.

© SAP AG RE200 4-41 .