Configuring Service Charge Settlement in Flexible Real Estate Management (RE FX)

Transcription

1 Configuring Service Charge Settlement in Flexible Real Estate Management (RE FX) Applies to: Any consultant who wants to configure the Service Charge Settlement settings for user requirements in SAP flexible real estate management (RE FX) module (SAP ECC 6.0 / 4.7). Summary This article gives detailed descriptions of the configurations required for Service Charge Settlement functionality in RE-FX. It can be used as a ready reference for configuring the REFX module in SAP. Author: Swapnoneel Mukherjee Company: Infosys Technologies Ltd. Created on: 11 February 2011 Author Bio Swapnoneel Mukherjee has done his MBA(PGDM) in finance. He is currently working as a senior consultant in SAP FICO/REFX in Infosys Technologies Ltd. He has been associated with SAP FICO/REFX for around 5 years SAP AG 1

2 Table of Contents Service Charge Settlement in Real Estate Sector... 3 Pre-Requisites to configuring Service Charge Settlement... 4 Introduction to Service Charge Settlement in SAP... 7 Configurations in Service Charge Settlement in RE-FX... 7 Set Service Charge Keys... 8 Default Values for Distribution Rule of Settlement Unit... 9 Settlement Variants... 9 Tenancy laws Heating Days Define Default Values for Current Occupancy Principle Dialogs and BADI Field Groups Field Status Views Screens Screen Sequences Events Tables Implement Enhancements (BAdI) Usage Types for Service Charge Settlement Define Measurement Types Define Characteristics and Measuring Point Category Condition Types for Advance Payments and Flat Rates Define Characteristics and Measuring Point Category Assign Condition Type to Service Charge Key/Group Define Default Values for Settlement Participation per Service Charge Key Dialogs and BADI Define Settlement Parameters Define RE-Specific Account Properties Define Accounts Allowed for Individual Service Charge Keys Define Accounts Allowed for Individual Service Charge Keys Assign Clearing Accounts to Cost Account Assign Non-Deductible Input Tax Revenue Account to Net Revenue Account Assign Default Condition Type to Service Charge Key Assign Reference Flow Types for Receivables/Credit from SCS External Settlement Adjustment of Conditions Related Content Disclaimer and Liability Notice SAP AG 2

3 Service Charge Settlement in Real Estate Sector In Real estate sector, service charges are various charges which are levied for the service provided for the use and maintenance of real estate properties. Managers act as a mediary between the service provider and the tenant. The charges are usually passed on to the tenant occupying the space from the service provider through the manager. The service charge settlement process is used to distribute apportionable costs which are service charges to tenants for a particular settlement period, using individual control mechanisms: Categorizing of service charges incurred Time-dependent apportioning of costs based on flexible measurements (fixed values, consumption, percentage share etc) or based on conditions in the contract Time-dependent settlement participation of objects with the ability to exclude individual objects when assigning higher-level objects Clearing of costs that are not apportionable to the tenant (entering a percentage landlord share, or a definition of maximum costs, or settlement of non-apportionable service charges) Apportionment of vacancy costs However before settlement a contract needs to be created between the real estate property manager, tenant and the service provider. The settlement process is also dependent on legal requirements of particular regions. The usual process is as follows: SAP Flexible Real Estate Management provides fully automated, accurate and transparent cost charge-back processes to ensure efficient service charge settlement processing. The process involves best practices and covers almost all the scenarios. SAP RE-FX can help manage services, maintenance, and repairs for a particular organization s properties and also for organization s customer s properties because it is integrated with enterprise asset management functionality and its customer service counterpart in mysap ERP Operations. In SAP all the service charges are generally settled through settlement units, which have to be defined for each service charge that needs to be settled. A new settlement unit has to be created for each type of service charge that is defined in the service charge key and that participates in the settlement. The next step involves creation of service charge key, which are the types of expenses that occur in real estate properties. Some of them are apportionable and some are not apportionable. E.g. Property tax, water supply, elevator etc. The 3rd step will be to apportion the service charges. In RE - FX, you apportion service charges based on the measurements defined in the rental objects. It can be done in following ways: Apportionment according to fixed values Apportionment according to consumption values Apportionment according to condition types Apportionment according to percentage shares 2011 SAP AG 3

4 Equal apportionment Apportionment for vacant rental objects After the apportionment, next is the service charge settlement, which generally happens through contracts and invoices. The tenants and service providers are entered into the system as Business partners. The contracts are raised with the business partners and are managed by contract management system in RE FX and the invoice are raised and posted as RE FX is integrated with SAP FICO. Pre-Requisites to configuring Service Charge Settlement To enable use of RE-FX, the following configuration is required to be set-up at the enterprise level. Define: Company Code Controlling Area 1. To enable use of RE-FX, the following configuration is required to be set-up at the enterprise level: 2. Activate the Financial Extension (Application Indicator EA-FIN) Within the SAP R/3 Enterprise Extension Set 3. Activate the BTE Application (RE) Active: This is essential to ensure Business transactions events (BTE) related to other modules. 4. Activate the Real Estate Extension 5. To enable use of RE-FX, the following configuration is required to be set-up at the company code level: 6. Various company codes can be created an example is given below: 1. R3-FI has been activated as the Financial Accounting System. 2. Uniqueness of Object Assignment 2011 SAP AG 4

5 It states that whether uniqueness of object is to be maintained or not. Functional Location Multiple By checking, multiple real estate objects can be set in the same time in the same period for a Functional Location. Asset Assignment- By checking, multiple real estate objects can be set in the same time in the same period for the assets. WBS Multiple- By checking, multiple real estate objects can be set in the same time in the same period for the WBS. Order Assignment- By checking, multiple real estate object can be set in the same time in the same period for the order. Asset Mandatory By checking, it is mandatory to assign the Fixed Asset to the Real Estate Object. 3. Default units of measurement Area Unit It specifies the unit of measurement for the area per company code as a default value on the business entity. Volume Unit It specifies the unit of measurement for the volume per company code as a default value on the business entity. Unit of Length It specifies the unit of measurement for the length per company code as a default value on the business entity. 4. Under Rental Accounting Company Code Opts If this indicator is set, it means that option rates are to be determined. Residual Item It specifies when there is an incoming payment and that does not clear the entire open item, then how will that be treated. If this indicator is set then the remaining amount becomes a residual item that the system treats as a new receivable (open item). Fill Assignment If this indicator is set the assignment in document line item field is automatically filled. Item Summarization-If this indicator is set then there will be summarization of line items. Tax Line Item Summarization- If this indicator is activated then there will be summarization of the tax line items based on certain specified criteria like Underlying Tax Code, Tax Jurisdictions SAP AG 5

6 To enable use of RE-FX, the following configuration is required to be set-up also: Activation of Real Estate Management Also, along with the configurations given above the necessary configurations for Master Data and contract management needs to be completed before configurations for Service Charge Settlement can be done SAP AG 6

7 Introduction to Service Charge Settlement in SAP SAP service charge settlement is a part of SAP commercial real estate management in SAP flexible real estate management module. The service charge settlement part is able to handle the functions of all types service charges related to real estate management. The service charge keys determine the type of expenses and the settlement units determine the various service charges that need to be settled. Configurations in Service Charge Settlement in RE-FX The Flexible real estate module comes under the accounting part in SAP and can be accessed in easy access and SPRO as given in screenshots below: 2011 SAP AG 7

8 Service Charge Settlement configurations are available in SPRO under: IMG Path: IMG Flexible Real Estate Management Service Charge Settlement Set Service Charge Keys IMG Path: IMG RE-FX Service Charge Settlement Master Data of Settlement Unit Service Charge Keys Purpose: To define the service charge keys for settlement. The specification applies for the company code entered. There are some standard settings already present, they can be chosen or can be deleted based upon the requirements. Also, new entries can be defined if required. To enter a new entry, user has to enter an internal key and enter details of the key. Then the operating cost indicator needs to be checked as per requirement. The next step would be to enter the measurement details and checking the heating value day s indicator. Also default values can be set for service charge keys SAP AG 8

9 Default Values for Distribution Rule of Settlement Unit IMG Path: IMG RE-FX Service Charge Settlement Master Data of Settlement Unit Default Values for Distribution Rule of Settlement Unit Purpose: To specify default values for settlement unit. Though default values can be mentioned in Service Charge Keys link, however for some service charge keys which need complex rules the above method is not enough. Hence this link is provided by SAP to enter default values. When a settlement unit in created, the system first checks if an entry was made here for the given service charge key. If there is no entry, then the system defaults the measurement type that was entered in the characteristics of the service charge key. Settlement Variants IMG Path: IMG RE-FX Service Charge Settlement Master Data of Settlement Unit Settlement Variants Purpose: To specify the period for various settlements as for eg. Operating expenses settlement, heating settlement, sales based rent settlement. An accounting variant is created here in which the periods for the settlement is mentioned. The variant can be a single period valid for 12 months or can be various settlement periods. A settlement variant can also be transferred to the following year if the total of the periods is more than 12 months. Users can create, edit, display and delete settlement variants from the link SAP AG 9

10 Below is given an example of one particular settlement variant A001. UM corresponds to the month, UD to the day, AD to the annual displacement which is used to determine the settlement year depending on the value date of a document for the service charge settlement SAP AG 10

11 Tenancy laws IMG Path: IMG RE-FX Service Charge Settlement Master Data of Settlement Unit Settings Dependent on Tenancy Law: Apportion Vacancy and Reg. Location Key Purpose: To specify the rules to determine whether part of tenancy cost will be passed to tenants or want the sap system to interpolate consumption using the regional locations. Heating Days IMG Path: IMG RE-FX Service Charge Settlement Master Data of Settlement Unit Heating Days Purpose: This section is used to distribute the heating expenses as per regional location or distribute it as per percentage of heating area. User needs to select the period and the percentage of the value of the expenses. For using this feature user has to first define the regional locations SAP AG 11

12 Define Default Values for Current Occupancy Principle IMG Path: IMG RE-FX Service Charge Settlement Master Data of Settlement Unit Define Default Values for Current Occupancy Principle Purpose: To specify the default settings for each service charge key which should be valid for new settlement units based on the current occupancy criteria. Dialogs and BADI IMG Path: IMG RE-FX Service Charge Settlement Master Data of Settlement Unit Dialog IMG RE-FX Service Charge Settlement Master Data of Settlement Unit BADI Purpose: To define the field status, screen sequences, field status groups the Dialog link is used. To define any substitutions, validations which would be required in master data for participation groups the BADI link is used. Field Groups IMG Path: IMG RE-FX Service Charge Settlement Master Data of Settlement Unit Dialog Screen Layout Field Groups Field Groups Purpose: These are the specifications for how the fields are grouped into field groups for the Business Data Toolset. You should make changes only if you want to add your own new fields to the master data dialog Configurations: Following is the screenshot of some of the configurations. Field Status IMG Path: IMG RE-FX Service Charge Settlement Master Data of Settlement Unit Dialog Screen Layout Field Groups Field Status Purpose: Allows the client to customize the fields that are displayed and the associated actions required for each SAP AG 12

13 Views IMG Path: IMG RE-FX Service Charge Settlement Master Data of Settlement Unit Dialog Screen Layout Views Purpose: To specify which field groups are grouped together into a view (part of a screen, technically a sub screen). User should group together the field groups that necessarily belong together during a check. Screens IMG Path: IMG RE-FX Service Charge Settlement Master Data of Settlement Unit Dialog Screen Layout Screens Purpose: To specify which tab pages appear in the dialog, and which sections make up these tab pages. There are two activities; defining the screens and defining the sections that go in it. If you require custom tab pages they should be created here along with specifying where the tab pages appear in the dialog, and which sections make up these tab pages 2011 SAP AG 13

14 Screen Sequences IMG Path: IMG RE-FX Service Charge Settlement Master Data of Settlement Unit Dialog Screen Layout Screen Sequences Purpose: To specify which screen sequences should appear in dialog. A screen sequence consists of different screens, and each screen is equivalent to a tab page. There are three activities; defining the screen sequence, defining the screens that go in it and assigning a screen sequence category. It Specifies the tab pages, and their order, that will be used. Events IMG Path: IMG RE-FX Service Charge Settlement Master Data of Settlement Unit Dialog Screen Layout Events Purpose: This dialog is required only if some complex modifications to the standard dialog are to be made. Tables IMG Path: IMG RE-FX Service Charge Settlement Master Data of Settlement Unit Dialog Screen Layout Tables Purpose: This dialog is required only if some complex modifications to the standard dialog are to be made. SAP recommends leaving the settings delivered here unchanged SAP AG 14

15 Implement Enhancements (BAdI) IMG Path: IMG RE-FX Service Charge Settlement Master Data of Settlement Unit Implement Enhancements (BAdI) Number Assignment, Validation, Substitution Purpose: The Business Add-In assists you in enhancing the standard functions of real estate contracts without having to make changes to the code. Create a BAdI implementation and implement the methods needed for your particular enhancement. Then activate the BAdI implementation. This is pending for the Contract enhancements. Usage Types for Service Charge Settlement IMG Path: IMG RE-FX Service Charge Settlement Settings for Rental Objects and Contracts Participating in Settlement Usage Types for Service Charge Settlement Purpose: The section is used to define all rental objects for which the service charge settlement can be performed. User needs to define all usage types which would need service charge settlement to be performed on them. If a particular usage type is not mentioned here, service charge settlement would not be performed on the same. Rental objects are in turn assigned to usage types through participation groups. Define Measurement Types IMG Path: IMG RE-FX Service Charge Settlement Settings for Rental Objects and Contracts Participating in Settlement Define Measurement Types Purpose: The section is used to define different measurement types for rental objects. It is similar to master data section measurement type s definition. The user defines the measurement type identifier, which can be a number or an alphanumeric character. Then the user needs to enter the details of the measurement area ( eg. Gross Area, Total Area etc). The next column helps the User in determining whether the area will be a total area or an area which needs manual input. Also the default unit of measurement for measurement types is mentioned in the section, eg. FT2, M2, ST Etc. Define Characteristics and Measuring Point Category IMG Path: IMG RE-FX Service Charge Settlement Settings for Rental Objects and Contracts Participating in Settlement Apport. by Consumption: Define Characteristics and Measuring Point Categ. Purpose: The section is used to define meters for measurement point categories. This section is useful for rental object whose characteristics are consumption dependent characteristics. Eg. water usage in a building. User first needs to define the characteristic and then create measure point categories for the same. To define measuring point categories User has to refer to plant maintenance module SAP AG 15

16 Condition Types for Advance Payments and Flat Rates IMG Path: IMG RE-FX Service Charge Settlement Settings for Rental Objects and Contracts Participating in Settlement Condition Types for Advance Payments and Flat Rates Purpose: The section is used to define various condition types for advance payments or flat rates for payments. Eg. The following condition groups are configured as below: User needs to select on each condition group and click on the assignments in the left tab as given below: The following screen is displayed where user enters the condition type, the sequence, the conditional purpose which can be: 2011 SAP AG 16

17 And the adjustment rule which will apply to the condition type, which is mostly Service charge settlement in this case, eg.: Users can also create own adjustment rule and assign the same to the condition types. Define Characteristics and Measuring Point Category IMG Path: IMG RE-FX Service Charge Settlement Settings for Rental Objects and Contracts Participating in Settlement Assign Default Condition Type to Service Charge Key Purpose: The section is to specify the default condition type for each service charge key. The User selects the condition type against each condition type. The configurations will be as follows: 2011 SAP AG 17

18 Assign Condition Type to Service Charge Key/Group IMG Path: IMG RE-FX Service Charge Settlement Settings for Rental Objects and Contracts Participating in Settlement Generating of Settlement Participation (for Contract) Assign Condition Type to Service Charge Key/Group Purpose: The section is used to define a relationship between contract conditions and service charge keys. The following fields need to be filled by the user: Condition Type Service Charge Key Condition Type Text Short Text Service Charge Category Operating Costs Indicator for costs which can be apportioned Indicator for Directly Posted Cost User can define the condition in two ways: 1. User assigns the condition to a service charge group and leaves the service charge key field empty in that case a condition type is settled to all service charge keys in a service charge group. 2. User makes an entry for condition type for each service charge key; in that case a condition type is settled against the specified service charge key. Define Default Values for Settlement Participation per Service Charge Key IMG Path: IMG RE-FX Service Charge Settlement Settings for Rental Objects and Contracts Participating in Settlement Generating of Settlement Participation (for Contract) Define Default Values for Settlement Participation per Service Charge Key Purpose: The section is used to define default settling rule for a service charge key that has no condition type assigned to it. Here user can either define that either costs incurred in those contracts are not to be settled or the costs will be settled in the form of final settlement. Dialogs and BADI IMG Path: IMG RE-FX Service Charge Settlement Master Data of Participation Group Dialog IMG RE-FX Service Charge Settlement Master Data of Participation Group BADI Purpose: To define the field status, screen sequences, field status groups the Dialog link is used. To define any substitutions, validations which would be required in master data for participation groups the BADI link is used SAP AG 18

19 Define Settlement Parameters IMG Path: IMG RE-FX Service Charge Settlement Settlement Process Define Settlement Parameters Purpose: This section is used to define parameters for settlement. This benefits the users as they need not define parameters on their own. The following indicators need to be set for each parameter: Active: The parameters can be used for selection only if the Active checkbox is checked. Standard: If user wants any parameter block to be picked up as default for settlement the standard indicators should be checked. Open AP: Open AP indicator determines how advance payments which were agreed upon but not paid will be settled. Country-Specifics: Legal requirements of each country make it mandatory for settlements to be done in particular way. Hence it is always advisable that user created individual settlement parameter for each country. Post Balance: If requirement is to balance the receivable with the down payments received this indicator needs to be checked. Tenant Service Charge Settlement: If requirement is to settle rental agreements and rental units with the current occupancy principle indicator in service charge this checkbox needs to be checked. Leave Unpaid Advance Payments Open (Planned Principle): If requirement is not to clear unpaid advance payments in settlements, the indicator needs to be checked. Print Separate: If requirement is to print correspondence manually this indicator is checked, if correspondences need to be printed automatically, this indicator needs to be unchecked SAP AG 19

20 Define RE-Specific Account Properties IMG Path: IMG RE-FX Service Charge Settlement Settlement Process Accounting: Account Determination and Accounts for Apportionable Costs Define RE-Specific Account Properties Purpose: This section is used to define the particular accounts which can be used for real estate objects. The accounts assignment is however dependent on account groups. Accounts which for which no further settings are made can be used by for all real estate objects however direct postings for service charge settlements cannot be used in such accounts. The following settings are needed as given below: Account Properties: Key identifying the properties of an account. Name of Account Property Indicator for Applicable for Business Entity Indicator for Applicable for Property Indicator for Applicable for Building Indicator for Rental Object with the following options: Indicator for Contract with the following options: Indicator for Settlement Unit with the following options: Service Charge key Service Charge key name Direct Cost Postings Define Accounts Allowed for Individual Service Charge Keys IMG Path: IMG RE-FX Service Charge Settlement Settlement Process Accounting: Account Determination and Accounts for Apportionable Costs Define Accounts Allowed for Individual Service Charge Keys Purpose: This section is used to define that certain accounts can be used for settlement units with specific service charge keys. However before doing this activity, account properties must be set. The following settings are needed as given below: Account Properties: Key identifying the properties of an account. Name of Account Property Service Charge key Short Text 2011 SAP AG 20

21 Here one has to specify all service charge keys for which posting has to be done in particular account properties. Define Accounts Allowed for Individual Service Charge Keys IMG Path: IMG RE-FX Service Charge Settlement Settlement Process Accounting: Account Determination and Accounts for Apportionable Costs Assign RE-Specific Properties to G/L Account Purpose: This section is used to assign the particular accounts which can be used for real estate objects as defined in point no 7.25, to G/L Accounts. The following settings are needed as given below: Chart of Accounts G/L Account No. G/L Account Long Text Account Property Key: As defined in step no User needs to select the account property keys from the selection box against each G/L Account. Assign Clearing Accounts to Cost Account IMG Path: IMG RE-FX Service Charge Settlement Settlement Process Accounting: Account Determination and Accounts for Apportionable Costs Assign Clearing Accounts to Cost Account Purpose: This section is used to define which clearing accounts and credit accounts are to be used for the cost accounts. Only condition is that the accounts need to be created as cost elements. The following configurations as given below in the screenshot are required for a new entry to the above table: 2011 SAP AG 21

22 Assign Non-Deductible Input Tax Revenue Account to Net Revenue Account IMG Path: IMG RE-FX Service Charge Settlement Settlement Process Accounting: Account Determination and Accounts for Apportionable Costs Assign Non-Deductible Input Tax Revenue Account to Net Revenue Account Purpose: This section is used to set revenue accounts which will be used to post non deductible input tax. Configurations required are as below: Net rev.account: The Revenue account which will be used for posting RevAcctDInpTax: The revenue non deductible input tax 2011 SAP AG 22

23 Assign Default Condition Type to Service Charge Key IMG Path: IMG RE-FX Service Charge Settlement Settlement Process Accounting: Account Determination and Accounts for Apportionable Costs Assign Default Condition Type to Service Charge Key. Purpose: This section is used to assign a condition type to a service charge key. The SAP system uses this condition type to set the flow type if in case either explicit settlement participation for a contract has not been defined or there is no condition defined for settlement units in a contract. This setting is used also in the case a settlement unit contains more than one object. The configurations are required as given below: SCK : Service Charge Key CTyp: Condition Type 2011 SAP AG 23

24 Assign Reference Flow Types for Receivables/Credit from SCS IMG Path: IMG RE-FX Service Charge Settlement Settlement Process Accounting: Account Determination and Accounts for Apportionable Costs Assign Reference Flow Types for Receivables/Credit from SCS Purpose: This section is used to assign reference flow types to flow types required for settling service charges. The configurations are required as given below: Relation: In the relation field the drop box is used to select various relations between the flow type and the reference flow types. The relations can be as below: RefFlwTyp: User can specify the reference flow type in this field, which will allow the system to refer to this flow type and follow the process as mentioned in this flow type SAP AG 24

25 External Settlement IMG Path: IMG RE-FX Service Charge Settlement External Settlement Characteristics of External Settlement Companies IMG RE-FX Service Charge Settlement External Settlement Define Cost Elements of Settlement Company IMG RE-FX Service Charge Settlement External Settlement Fuel Types Purpose: This section is used to define external settlement procedures. The user needs to define the characteristics and the cost elements for external settlements. Also the user needs to define the fuel types for external settlement to happen. Adjustment of Conditions IMG Path: IMG RE-FX Service Charge Settlement Adjustment of Conditions Different Calculation of Service Charge Condition IMG RE-FX Service Charge Settlement Adjustment of Conditions Define Cost Calculation of Adjustment Date Purpose: This section is used to define advance payments against each service charge key. This is useful when tenants move into the rental object shortly near to the settlement period and this result in settlement amount to be wrongly calculated if it is only based upon measurement amount usage. In that case this setting comes in handy SAP AG 25

26 Related Content help.sap.com (RE FX Flexible Real Estate Management) 2011 SAP AG 26

27 Disclaimer and Liability Notice This document may discuss sample coding or other information that does not include SAP official interfaces and therefore is not supported by SAP. Changes made based on this information are not supported and can be overwritten during an upgrade. SAP will not be held liable for any damages caused by using or misusing the information, code or methods suggested in this document, and anyone using these methods does so at his/her own risk. SAP offers no guarantees and assumes no responsibility or liability of any type with respect to the content of this technical article or code sample, including any liability resulting from incompatibility between the content within this document and the materials and services offered by SAP. You agree that you will not hold, or seek to hold, SAP responsible or liable with respect to the content of this document SAP AG 27