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You can create, change, and display real estate contracts. Below is a description of how to create a real estate contract.

In the RE Navigator (RE80), choose Real Estate Contract or use the TCode RECN.

You can search for existing contracts in the system according to various criteria, and display and change them.

In the initial screen, enter the contract type and company code.

Depending on the settings in Customizing, the number of the contract can be assigned externally or internally.

General Data Tab

Here you enter a name for the contract and the current tenancy law. You can also make entries for purely informational purposes, such as the industry for commercial contracts.

If you want to settle the condition amounts based on sales, set the Relevant to Sales indicator. The Sales-Based Rent Agreement tab page is displayed, where you can define the reporting rules and sales rules for sales-based rent settlement.

In the Status Display area, you can activate or deactivate the contract and also display the current status.

Partner Tab

Here you assign the role and name of the business partner(s) to the contract. You can assign only one main contractual partner in any given time period (for example, a partner with customer account for a lease-out). However, you can assign main contractual partners consecutively in different time periods.

Term Tab

Here you define the term of contracts, notice period, and renewal rules for fixed-term contracts. The Term and Memo tabs are displayed in the lower part of the screen. Enter the following data:

a)       Start date for open-ended contracts. The contract start date is automatically the default entry for the date of first posting.

b)       In the case of fixed-term contracts, also enter the date the first contract ends.

Contract Measurements Tab

You can also define measurements directly for the contract in case if it is not related to objects which are linked to contracts.

Posting Parameters Tab

Here you define payment terms, terms for payment frequency and organizational assignments (profit center, business area).

Conditions Tab

Here you define condition data for the real estate contract or for the rental objects of the real estate contract.

Adjustment Tab

Here you specify the rules for adjusting conditions. This is editable in case the customization allows in doing so.

Settlement Participation Tab

There are two tables. The first table provides an overview of the rental objects that participate in service charge settlement. These objects are determined by the object assignment in the contract. The periods of rental objects are derived from their assignment to settlement units.

The second table provides an overview of the settlement participation of the object you select. You can change the validity period and the participation type. Changes are identified in the status column by the icon.

Option Rate Methods Tab

Here you specify the option rate method for determining the option rate for the contract. 

Reminders Tab

Here you enter the rules that the system uses for calculating reminder dates.

Overviews Tab

In the dropdown box you can choose various overviews.

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