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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

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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

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Adjustment Methods

 The following adjustment methods are available in

SAP ERP 6.0:
 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:

 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. This
adjustment method is especially used to adjust conditions for publicly subsidized apartments in
Germany.

© SAP AG RE200 4-5

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Adjustment Term

Conditions
Conditions
Index adjustment term
Rental
object For example, rent
For example, parking space rent
Manual

Contract
AP adjustment term

For example, AP operating costs Manual

For example, 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.

 You can assign several conditions to one adjustment term, which means that the individual
conditions can be adjusted using the same method. When performing the adjustment, you can decide
which conditions should be explicitly included.
 You can combine adjustment methods in order to adjust a condition with various adjustment
methods.
 You can define the adjustment using an adjustment measure so that the rule does not have to be
explicitly assigned to the condition.
 In the contract, you can, at any time, 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,
exists but is defective, is already activated with the option of performing another adjustment, etc.).

© SAP AG RE200 4-6

0.7
Process for Adjusting Conditions

Processing in the application Check and

change, if
necessary
(if permitted)

List of
Simulate calculated Save
adjustment adjustments adjustment

Data
Adjustment
run
• Header (ID)
• Adjustment records
Check and Notification
• Log
change, if correspondence
necessary

Approval
Enter,
Activate Lease-out
if necessary
Data
new
Adjustment conditions Rental
run object
 SAP AG 2008

 If you want to adjust conditions, you can first simulate the adjustment. The simulation generates a
list of possible changes. You can change the values in the list depending on how the adjustment term
has been defined in the contract. If the simulation matches the requirements, it can be used in the
update run.
 Various steps must be performed individually for each adjustment run.
 The individual steps are:
 Determine and process adjustments
 Generate correspondence for approval; enter approval or rejection
 Activate adjustments
 Generate correspondence for adjustment
 Where possible, a complete log and results report are created for the steps. If a step is interrupted
during the update run, this is logged with reference to the respective activity. After the cause of the
error has been removed, the adjustment must be restarted at this point.
 The system takes into account any periods and limitations that are set by law, if they were defined in
Customizing. Capping rules must be defined in Customizing and assigned to the individual
adjustment methods.
 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.
 Successful, defective, and planned adjustments can be viewed in the contract dialog.

© SAP AG RE200 4-7

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Interaction Between Customizing and Application

Contract Customizing
Adjustment rule 01 (free adj.): Predefined rule:
• Adj. rate: 5% • Adj. 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. rule 02
• Store rent Store 1 € 10,000 monthly Adj. rule 02
• Warehouse rent Warehouse 1 € 10,000 monthly Adj. rule 01
• ...

 SAP AG 2009

 In Customizing, you define adjustment clauses that you can assign in the application.
 Adjustment terms can be controlled on an individual basis and users can be given access for
changes. For example, 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. You can also exclude individual
fields from changes.

© SAP AG RE200 4-8

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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, you can change condition amounts in terms of a percentage or an
absolute amount (whole or by measurement unit).
 Method-specific settings must be configured for the adjustment run.
 You can transfer values when using the free adjustment function. This means that you can generate
new conditions using the free adjustment function.
 It can also be a transfer. Starting from an existing condition, you can generate a new condition or
change an existing condition.

Example
The contract contains a rent condition of € 1,000. A percentage transfer could unfold such that 30%
of the € 1,000 would generate a new operating costs advanced payment condition. As a result, 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

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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, 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.
 For the adjustment term, you can define a minimum change in both percentage and points. A
contract condition is not adjusted unless the corresponding rules in the contract (for the condition)
allow it.

© SAP AG RE200 4-10

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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, 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. These are predefined in the standard system
and can also be combined. 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,
as well as the crediting provisions.
 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.

© SAP AG RE200 4-11

 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).
 Reasons for change and surcharges for adjustment rules define how and which conditions are to be
included for adjustment according to a specific rule. In some cases, it may be necessary to include
additional conditions for the calculation, for example, when an appreciation surcharge defined as a
separate condition should be included in the basic rent.

© SAP AG RE200 4-12

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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.
 In order to carry out procedure-dependent Customizing, you first have to define a corresponding
adjustment rule in procedure-independent Customizing.
 Index-linked rent adjustment:
 You have to define indexes with the corresponding index bases and index levels for index-linked
rent adjustment. The indexes are published by housing and real estate organizations, and by the
German Federal Statistical Offices.
 Adjustment based on representative list of rents:
 Here you can define various representative lists of rents for various communes or regions. 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, you have to define a
group of comparative apartments.
 In the adjustment rule for comparative apartments, you define (among others)
Which comparative group can be used for the comparison
How the average rent should be determined
 To do this, you must have first defined a corresponding adjustment rule in the procedure-
independent part of Customizing.

© SAP AG RE200 4-13

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

© SAP AG RE200 4-14

0.13
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, the consumer price index

for Germany

Alternative 1 Index points for index series Index series, consisting of year, month,
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.

Alternative 2 Index points for Index series, consisting of year, month,

index series with base year day and index value

 SAP AG 2008

 Index classes form the basis for further definition of adjustment indexes.
 Index classes 5 and 6 in standard Customizing are intended for the real estate industry.
 Index class 5 is intended for operating costs settlement according to the operating costs index for
Switzerland.
 Index class 6 is intended for general index adjustment.
 Index series are mathematical series for the description or calculation of price increase rates.
 The real estate industry uses price increase rates (for example, cost of living, consumer price index)
as the basis for index-linked rent adjustment.
 Index series can be set up with or without a base year. Both variants can be mapped.
 When you work with index series based on base years, you have to define the necessary base years
first, before you can configure the index series.

© SAP AG RE200 4-15

0.14
Frequency and Delay

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

Rental start RA RA
Flexible
Jan. 1 Apr. 1 July 1 t

Rental start RA RA RA RA RA . . .

Jan. 1 Apr. 1 May 1 June 1 July 1 Aug. 1 t

 Flexible

Adjustment delay in months (for instance 2)

Case 1: Rent adjustment run = Oct. 1.

Aug. 1 Oct. 1 t
 Backwards

Index data Date that adjustment is valid from

= Date of rent adjustment run
Case 2: Rent adjustment run = Aug. 1.

Backwards
Aug. 1 Oct. 1 t
Index data Date that adjustment is valid from
Date of rent adjustment run

In both cases, the index for August is available and the new date for the conditions is Oct. 1.
The difference is the date assigned to the rent adjustment run.
 SAP AG 2008

 You enter the adjustment frequency and delay for the index adjustment data of the adjustment term.
 Adjustment frequency: If the entry in the flexible adjustment frequency field is Earliest, the
frequency is taken to mean the minimum duration. Otherwise adjustments can only be made with the
specified frequency.
 Example: If the frequency is 1, adjustments can be made at any time. If the frequency is 3,
adjustments can only be made every three months. If the entry for the flexible adjustment frequency
is Earliest, adjustments can be made any time after three months (as long as this is after the First
adjust. From date). In our example, the next possible adjustment is not possible until three months
after an adjustment.

© SAP AG RE200 4-16

 Adjustment delay: As index data is always issued with a delay and the rent adjustment normally
applies to a date in the future, the adjustment is subject to a delay. You have the following options:
 Example:
Last adjustment: November 1, 2005 Adjustment frequency: 12 months
Flexibility: fixed Desired adjustment date: November 1, 2006
For an adjustment delay of 3 months, 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, 2006.
For an adjustment delay of -3 months, the adjustment would be made on the basis of the index level
of February 1, 2007 retroactively to November 1, 2006, provided the required minimum change has
been reached.

Flexibility: earliest Desired adjustment date: November 1, 2006

For an adjustment delay of 3 months, the system would check for the index level of November 1,
2006 whether the required minimum change has been reached and raise the rent (if necessary) on
February 1, 2007. For an adjustment delay of -3 months, the adjustment would be made on the basis
of the index level of November 1, 2006 retroactively to August 1, 2006, provided the required
minimum change has been reached.

© SAP AG RE200 4-17

0.15
Rebasing the Index (Customizing)

Index Month Year Value Index Month Year Value

CPI 1 2003 104.0 “Old” 1 2003
CPI 2 2003 104.5 “Old” 2 2003
CPI 3 2003 104.6 “Old” 3 2003
CPI 4 2003 104.3 “Old” 4 2003
CPI 5 2003 104.1 “Old” 5 2003
CPI … 2003 … “Old” … 2003
CPI 10 2004 106.2 “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, all indexes used previously
have been standardized. Certain index series are no longer used.
 SAP recommends permanently converting contracts that are value guaranteed by “expired”
indexes.
 A conversion table is provided for the transitional period. Index series that are no longer valid are
continued, but on the basis of the new index calculations.

© SAP AG RE200 4-18

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, Expert Opinion and Custom
Measure procedures.
 You first have to enter a measure as the master record.
 You then assign the relevant rental objects, that are to apply to the increase, to this measure.
 You can define legal rules in Customizing. (For example, in Germany you can only pass on a
maximum of 11% of the modernization measure to the tenant.)
 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

0.17
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, and is used only in Germany.
 During the adjustment, investment costs, current expenses and financing plans are taken into
account. In addition, amenities level factors (which specify the relative desirability of rental objects
due to location) are also considered.
 The cost efficiency analysis follows the cost coverage principle, that is, the cost rent and operating
costs should cover the costs for the landlord, however, they should not be profit-maximizing.
 The cost efficiency analysis is a special type of adjustment measure.
 The cost efficiency analysis is divided into the measure types: partial cost analysis, additional cost
analysis, and main cost analysis.
 Partial cost analysis: Defined total costs and the financing plan for all objects involvedAdditional
cost analysis: Contains subsequent basic data for the analysis, for example, in the case of a
modernization or a remodelling It is optional and it is assigned to a partial cost analysis.
 Main cost analysis: Groups together several partial and additional cost analyses and does not contain
any data relevant for the adjustment. It is also optional.
 In the application, for example, the RE Navigator (RE80), you create a cost efficiency analysis in
the menu tree under "Adjustments".

© SAP AG RE200 4-20

 You can make an adjustment after the CEA for rental objects and contracts. 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 set up the
adjustment rule in the cross-method part. The method-specific part is in a separate IMG node under
the "Adjustment Measure" node .

© SAP AG RE200 4-21

0.18
Adjustment Based on a Representative List of
Rents

Building Age Categories Location classes Fixt./Fittings Categories Size Classes

From date Valid to From area To area
1 Basic resid. location 1 Basic fixtures and fittings
June 30, 1912 20.00 50.00
2 Avrge resd. location 2 Medium-range fixt./fittings
July 1, 1912 June 30, 1948 3 Good fixtures/fittings 50.00 70.00
3 Good location
July 1, 1948 June 30, 1974 ... … 70.00 90.00
… …

Value table
Building age from July 1, 1948 to June 30, 1974
Location 3 Good resid. location
Fixtures and fittings 3 Good fixtures/fittings
Size From area to area From amount To amount Mean
20.00 50.00 4.18 5.26 4.69
50.00 70.00 3.22 4.48 3.96
70.00 90.00 2.64 4.35 3.85

Characteristic categories Fixtures and fittings

Surcharges/reductions Example: Resid. location Misc. influences

Resid. location Def.points Min.points Max.points

1 Basic resid. location 95.00 94.00 96.00
2 Basic to average resd. location 97.00 96.00 98.00
3 Avrge resd. location 100.00 98.00 102.00
…
 SAP AG 2009

 The representative list of rents is defined in Customizing according to structure: parameters relevant
for the adjustment (building age category, location class, fixture and fittings category, size class) are
specified.
 If a representative list of rents, which contains surcharge and reduction classes, is defined, you can
assign the corresponding characteristics to these classes.
 When you perform an adjustment using a representative list of rents, only the fixtures and fittings
characteristics that are assigned to the rental object and the relevant representative list of rents are
taken into account.
 The system uses the structure parameters to generate a value table that you fill with the current
values from the representative list of rents.
 Since the representative list of rents of the individual cities can have not only very different values,
but also very different structures, there are BAdIs and comprehensive control tables which you can
use to enhance the common methods.

© SAP AG RE200 4-22

0.19
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: € 14.28/m2
3 rooms
Comparative apartment 2
Residential space: 150 m2
Basic rent: € 13.30/m2
3 rooms Rental unit 4711
Comparative
Comparative apartment 3 Residential
group 1111, Assign
Residential space: 150 m2 space 150 m²
Basic rent: € 13.80/m2 with residential Basic rent:
3 rooms space 150 m² Adjust
2000 €
3 rooms = € 13.33/m²
Comparative apartment 4
Residential space: 150 m2
Basic rent: € 14.50/m2
3 rooms
Third-highest amount:
Comparative apartment 5
Residential space: 150 m2  Adjustment to € 14.10
Basic rent: € 14.10/m2
3 rooms
 SAP AG 2009

 You can assign each rental object to comparative groups. This comparative group contains a legally-
defined minimum number of comparative apartments (defined in Customizing).
 Your own comparative apartments and external comparative apartments can be used for the
comparative group.
 Your own comparative apartments, which are vacant at the time of adjustment, are not considered.
 In Customizing, you must make settings as to whether rental objects, which are used internally,
should be considered. 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.

© SAP AG RE200 4-23

0.20
Austria: Adjustment by Fifteenths

Calculation of the
Condition Amounts
Lease-Out
First year = 500 + (1,250 – 500)/15*1 = € 550

Second year = 500 + (1,250 – 500)/15*2 = € 600

Main rent: € 500

Index point: 102.6 Index increase from 102.6 to

107.8 points
Appropriate main rent
= 1,250 / 102.6 * 107.8
= € 1,313.35.

Third year = 500 + (1,313.35 – 500)/15*3 = € 662.66

.........
Appropriate main rent =
€ 1,250

 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. This increase is subject to the value
guarantee index.
 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.

© SAP AG RE200 4-24

 The adjustment by fifteenths is supported as an enhancement of the existing adjustment methods.
The calculation procedure is implemented using the BAdI technology for rent adjustment.

Example
Old main rent € 500.00
Appropriate main rent € 1,250.00
Value guarantee basis: CPI 2000 = 102.6 (5% threshold)

This produces a difference of € 750.00. A fifteenth of this difference is therefore € 50.00.

First year of increase: 500 + 50 (1/15) = € 550.00

Second year of increase: 500 + 100 (2/15) = € 600.00

Index adjustment: CPI = 107.8

This results in a value-guaranteed appropriate main rent in the amount of
1,250.00 / 102.6 x 107.8 = € 1,313.35

The difference after the value guarantee is (at this point in time) 1,313.35 – 500 = € 813.35
A fifteenth is 813.35 / 15 = € 54.22

This results in an adjustment for the third year to: 500 + 162.66 (3/15) = € 662.66

© SAP AG RE200 4-25

0.21
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 1,000

 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. The mortgage rate corresponds to the mortgage rates of the cantonal bank of
the canton in which the business entity is located.
 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. These flat rates correspond to the locally different percentage rates,
each of which applies to one year. These percentage rates are recorded centrally in the system
and assigned to the relevant adjustment rule.
 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, and then the authoritative index that supports the new increase. The resulting difference
in points is converted to percentages and the result of this computation is multiplied by 40%. 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

0.22
Adjustment in Austria / Switzerland: Customizing

 The adjustment methods are mapped using a BAdI

implementation.
 The implementation is made in Customizing.

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, go to Customizing using transaction “RECACUST”.

 From there, 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, with a list of the available BAdIs. Select the BAdI that you
want to activate.
 Activate the desired BAdI by setting the flag in the Active(IMG) column.
 Choose Display Implementation to display the details of the BAdI.
 For more information on adjustment methods for Austria and Switzerland, see the following notes:
 Note 890267 – Adjustment by fifteenths (Austria)
 Note 912290 – Adjustment according to Swiss law

© SAP AG RE200 4-27

0.23
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

 Exercises

Unit: Adjustment of Conditions

Topic: Performing the Steps Required to Adjust
Conditions
At the conclusion of these exercises, you will be able to do the following:
 Use the different rent adjustment methods.

You need to carry out the following steps:

Check the adjustment terms in the contract/object, simulate and convert
to an update run, then make any changes necessary, enter approval and
activate.

Lease-outs can be adjusted using the free adjustment, index adjustment,

representative list of rents, comparative apartment, or adjustment
measure.
The exercise marked with an asterisk (*) is optional.

Select a lease-out as your adjustment object.

1 Adjustment with an index

1-1 Check the adjustment rule of your first commercial contract.
Assign the adjustment rule Index adjustment with suggestion to the first
commercial lease out (Exercise 3, Contract Management). You also need to assign
the Office Basic Rent condition.
Switch the minimum change in points to 1 point and set the adjustment frequency
to earliest.
1-2 Simulate and execute the index adjustment for your contract.
Select your business entity 1000/1##.
First, perform only the activities determine adjustments and processing of
adjustments.
Adjustments should be made as soon as possible and include occupancy contracts
that are both subject to approval and not subject to approval.
Run the simulation and check the results for your internal contract.
Convert the simulation to an update run and save it.
1-3 Check your contract for changes in the adjustment status and check for changes
that have already been made to the condition amount.
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.

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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. 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, as determined by the assigned area of the rental unit
2-2 Check the adjustment rule of your residential lease out.
Assign the adjustment rule Residential rental for the Basic rent condition.
2-3 Simulate and execute the representative list of rents adjustment for your residential
contract.
Select only the contracts for YOUR business entity 1000/1##.
First, perform only the activities determine adjustments and processing of
adjustments.
Adjustments should be made as soon as possible and include occupancy contracts
that are both subject to approval and not subject to approval.
Convert the simulation to an update run and save it.
2-4 Enter the approval by editing the adjustment that was previously executed. Activate
and save the adjustment.
2-5 Check the condition amount change and the change to the adjustment status for
your contract in the RE Navigator.

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3* Adjustment using an adjustment measure
3-1 Creating an adjustment measure
Start the RE Navigator and enter a modernization as an adjustment measure.
Assign the name GR##. The modernization should be carried out from July 1 to
December 31 of the previous year. The resulting adjustment should take effect on
January 1 of the current year.
Enter any costs for the cost items facade and window.
The modernization is carried out on your residential building. You should therefore
assign both apartments as relevant objects.
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##.
First, perform only the activities determine adjustments and processing of
adjustments.
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.
Convert the simulation to an update run and save it.
Enter a date for informing the tenant in your apartment about the planned measure.
Activate the adjustment.
3-3 Check the condition amount changes and the change to the adjustment status for
your vacant apartment in the RE Navigator.

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 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.
In the SAP menu, choose: Accounting  Flexible Real Estate Management 
Master Data  RE Navigator (RE80)
In the navigation area of the RE Navigator, change the display to My Objects and
choose . Expand the Real Estate Contracts entry by pressing the icon on the
left of the entry.
Double-click the number of your first commercial lease out (Exercise 3, Contract
Management) and then choose (Changes Between Display <-> Change).

Go to the Adjustment tab page. Click (Create Term) and select the term Index
adjustment with suggestion.
Go to the method-specific sub-tab (Index adjustment with suggestion). As before,
click (Expand) to expand the sub-tab.

Choose (Unlink from Customizing) to break the link to Customizing and to be able
to make changes.
Change the Min. Change Pts entry to 1.000 and the Flexible Freq. field to Earliest.
On the Adjustment tab page, go to the sub-tab Conditions. Double-click the line
entry in the Condition column. In the following pop-up, select the entry Office
Basic Rent and press to continue.
Save the contract by choosing either Ctrl+S or (Save).

1-2 Simulating and executing an index adjustment

In the SAP menu, 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.
In the lower screen area, select the Index field.
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 Go to the Activities tab page and make sure that only the Determine Adjustments
and Processing of Adjustments entries are selected. Deselect all other entries.
Go to the Activity Parameters tab page, select the Next Possible Valid-From and
Occupancy Contracts fields. Next to the Occupancy Contracts text, change the
entry in the Subject to Approval field to Both.
Choose (Execute).

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.

Save the update run by choosing (Save).

Exit the log and the adjustment dialog screen by choosing (Back) twice.

1-3 Checking the contract for changes

Start the RE Navigator.
In the SAP menu, choose: Accounting  Flexible Real Estate Management 
Master Data  RE Navigator (RE80)
In the navigation area of the RE Navigator, change the display to My Objects and
choose . Press the icon on the left of the Real Estate Contracts entry to
expand it.
Double-click the number of your internal lease-out and then go to the Adjustment
tab page.
Go to the lower screen area, to the Conditions tab page, and click the Inactive
Adjustment Exists entry.
Exit the results screen by choosing (Continue).

Go to the Conditions tab page for the contract. The condition amount has not yet
changed.
1-4 Activating the adjustment
In the SAP menu, 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.
Enter your user name in the Entered By field.
Select Enter.
Select Copy in the display to bring your adjustment entry into the selection screen.
Execute the Edit Adjustments program.
Select the displayed line and choose to activate the adjustment.

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 Save the activation by choosing (Save). Exit the log and the adjustment dialog
screen by choosing (Back) twice.

To check for changes, restart the RE Navigator.

In the SAP menu, choose: Accounting  Flexible Real Estate Management 
Master Data  RE Navigator (RE80)
In the navigation area of the RE Navigator, change the display to My Objects and
choose . Press the icon on the left of the Real Estate Contracts entry to
expand it.
Double-click the number of your internal lease-out and then go to the Adjustment
tab page.
Go to the Conditions sub-tab. In the lower screen area, click the Active Adjustment
Exists entry.
Exit the results screen by choosing (Continue).

Go to the Conditions tab page for the contract. Change the management of time
slots (window in the upper screen area) to Display all periods.

2 Adjustment using a representative list of rents

2-1 Checking the adjustment parameters
Start the RE Navigator.
In the SAP menu, choose: Accounting  Flexible Real Estate Management 
Master Data  RE Navigator (RE80)
In the navigation area of the RE Navigator, change the display to My Objects and
choose . Expand Business Entities by pressing the icon on the left of the entry.
Double-click your business entity and go to the Reference factors tab page. The
representative list of rents M-2007 was assigned here.
Expand the Buildings entry in the RE Navigator by clicking on the left of the
entry. Double-click your residential building (1000/1##/2). On the Dates tab page,
check the entries for the construction year (January 1, 1980). Go to the Additional
Data tab page and check the Location Class (3—good residential location).
Expand the Rental Objects entry in the RE Navigator by clicking on the left of
the entry. Double-click your janitor’s apartment and go to the Additional Data tab
page. You will find a summary of all the data that is relevant to the representative
list of rents here.
2-2 Expand the Real Estate Contracts entry in the RE Navigator by clicking on the
left of the entry.
Double-click the number of your residential contract.
Go to the Adjustment tab page. Click (Create Term) and select the term
Residential rents.
In the sub-tab Conditions, check whether the Basic Rent condition type has been
assigned. If it has not been assigned, double-click the line entry in the Condition
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 column. In the following pop-up, select the entry Basic Rent and press to
continue.

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 2-3 Simulating and executing an adjustment of the representative list of rents
In the SAP menu, 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.
In the lower screen area, select the Representative List of Rents field.
Go to the Activities tab page and make sure that only the Determine Adjustments
and Processing of Adjustments entries are selected.
Go to the Activity Parameters tab page, select the Next Possible Valid-From field
and the Occupancy Contracts field. Next to the Occupancy Contracts field, change
the entry in the Subject to Approval field to Both.
Choose (Execute).

Select the displayed line and choose (Show Detail).

Exit the results screen by choosing (Continue).

Accept the simulation by choosing (Go from simulation to update run).

Save the adjustment by choosing (Save). Exit the log and the adjustment dialog
screen by choosing (Back) twice.

2-4 Entering the approval and activating the adjustment of the representative list of
rents:
In the SAP menu, 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.
Enter your user name in the Entered By field.
Select Enter.
Highlight your recent entry.
Select Copy in the display to bring your adjustment entry into the selection screen.
Execute the Edit Adjustments program.
Select the line and choose (Show Detail). Choose (Approve). Confirm today’s
date by choosing (Continue).

Click (Activate Adjustment) and save the adjustment by choosing (Save).

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 Exit the log and the adjustment dialog screen by choosing (Back) twice.

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 2-5 To check for changes, restart the RE Navigator.
In the SAP menu, choose: Accounting  Flexible Real Estate Management 
Master Data  RE Navigator (RE80)
In the navigation area of the RE Navigator, change the display to My Objects and
choose . Press the icon on the left of the Real Estate Contracts entry to
expand it.
Double-click the number of your residential contract and then go to the Adjustment
tab page.
Go to the Conditions tab page on the lower part of the screen and click Active
Adjustment Exists.
Exit the results screen by choosing (Continue).

Go to the Conditions tab page for the contract. Change the management of time
slots (window in the upper screen area) to Display all periods.

3* Adjustment using an adjustment measure (exercise is optional)

3-1 Creating an adjustment measure
In the SAP menu, choose: Accounting  Flexible Real Estate Management 
Master Data  RE Navigator (RE80)
In the navigation area of the RE Navigator, change the display to My Objects and
choose . Select Adjustment Measures, 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). Choose Yes to
continue.
In the Costs hierarchy, select the entries Façade and Window and confirm your
selection by choosing (Continue).
In the lower screen area, enter an amount of your choice in the Costs as Basis for
Increase field.

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 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.
Staying in the Costs tab page, click (Add New Entry). Click the Rental object
entry. Enter the Company Code 1000, select your Business Entity 1##, the Usage
Type 1 and choose (Start Search) to execute the selection. Select both objects
and transfer them by choosing (Transfer).

Save your modernization measure by choosing (Save).

3-2 Simulating and executing an adjustment
In the SAP menu, 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.
In the lower screen area, select the Modernization field.
Go to the Processing Parameters tab page and enter the value GR## in the
Adjustment Measure field.
Go to the Activities tab page and make sure that only the Determine Adjustments
and Processing of Adjustments entries are selected.
Go to the Activity Parameters tab page, select the Next Possible Valid-From,
Occupancy Contracts, and Vacant Rental Objects fields. Next to the Occupancy
Contracts field, change the entry in the Subject to Approval field to Both.
Choose (Execute).

Accept the simulation by choosing (Go from simulation to update run).

Select the line for your residential contract and choose (Show Detail).

Create one for the adjustment date by entering January 1 of the previous year in
the Calculated Fr-Date field. Exit the detail screen by choosing (Continue).

Select all entries and choose (Activate Adjustment). Save the adjustment by
choosing (Save).

Exit the log and the adjustment dialog screen by choosing (Back) twice.

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 3-3 To check for changes, restart the RE Navigator.
In the SAP menu, choose: Accounting  Flexible Real Estate Management 
Master Data  RE Navigator (RE80)
In the navigation area of the RE Navigator, change the display to My Objects and
choose . Expand the Rental Objects entry by choosing on the left of the entry.

Double-click the number of your vacant apartment. Go to the Adjustment tab page
and select the residential rental line in the upper area of the screen.
Go to the Conditions tab page on the lower part of the screen and click the Active
Adjustment Exists entry.
Exit the results screen by choosing (Continue).

Go to the Conditions tab page of the contract. Change the management of time
slots to Show all time periods.

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