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Rent Adjustment for contracts in bulk

Hello Readers, today we are going to understand how rent adjustment functionality in SAP REFX works.

What is Rent adjustment?

Rent adjustment refers to adjustment of a condition value in a contract or a list of contracts. The adjustment may result in increase or decrease of the initial value.

Business Requirement?

Usually business decides to increase the base rent of contract every year and it becomes very cumbersome to do it at each contract level. Sometimes, due to reasons like fire in the building or government rule or epidemic reasons (corono virus), client takes a decision to reduce the rental of all existing tenants by an absolute amount or a percentage.

How to achieve?

SAP REFX module has an out of box solution to upload the rental reduction/increase using the Adjustment of conditions functionality.

Below I have illustrated, how it is achieved using the rent adjustment functionality of bulk adjustment of rentals at required contracts.

 

Use T-Code – REAJPR – Specify Adjustments or

Follow the path:

SAP Easy access–> Accounting–> Flexible Real Estate Management–> Adjustment of Conditions–> Adjustment–> REAJPR – Specify Adjustments

Enter Company code – Desired company code for which rent adjustment needs to be carried out.

Contract – You may do it for certain contracts and not for all contracts under the company code. If requirement is to execute adjustment for few contacts, specify the contracts for which adjustment is intended.

Contract Type – Enter the contract type for which rent adjustment is intended. It filters the contracts under the company code based on the entered contract type.

Adjustment Mode – First execute the adjustment run in simulation mode, verify the results randomly for few contracts and then execute it in production run.

 

First Tab is Procedure – Enter the details as shown below. This is only for reference and may need to be adjusted as per client’s requirement.

I am using Custom method, so ticked the checkbox of Custom as shown below. Select the reason as Standard and Rule will be FREECN.

Second tab is Processing Parameters

Click on the add icon and update the data as shown in above example. For reference purpose, I am adjusting the condition type “Warm Shell Rent” value by increasing it by 10%.

Note: You may reduce the value by entering 10,00- in the Inc% field.

There is an option to enter absolute value instead of percentage, use as per client requirement.

 

Third tab is Activities

Note: Remove the un-necessary checkbox. Keep the processing of adjustments checkbox ticked.

Fourth Tab is Activity parameters

Enter Valid from date – This date should be the date from which you want the rent adjustment to be reflected in system.

Status of Contracts – Active Contracts

You may further choose which all contracts require adjustment, in my scenario I am only executing it for occupancy contract.

Once above details are entered, saved it as variant, so as to use it as a reference in future.

Now the variant is saved. Come back to main screen and execute the transaction code.

Output of the report

Note: Compare the Previous price and Calculated price.

Calculated price represents the new adjusted price.

Verify the output. Once satisfied, go back to previous screen and change the adjustment mode to EXE Perform adjustment run as shown in below screen shot.

Execute the transaction code. The rent adjustment will start appearing in the contract.

Check the contract for which the rent adjustment is performed.

Congratulations – The rent adjustment for contracts in bulk is carried out.

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