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Author's profile photo Amar Kumar

Rent Adjustment for contracts in bulk – Custom & Index Method

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.

For Index method, select the options as shown in below screen shot.

Second tab is Processing Parameters

Note: For index method, no input needed in Processing parameter tab.

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.

Note: For Index method also, same checkbox to be 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.

Note: For Index method also, the same input values will work.

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 for Custom method

Output of the report for Index method

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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      7 Comments
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      Author's profile photo S David
      S David

      Hi Amar,

       

      Good post!

      For me its not allowing to activate the adjustments. Any solution for that ? I have replicated the same steps as mentioned.

       

       

      Author's profile photo Amar Kumar
      Amar Kumar
      Blog Post Author

      Hi David,

      Sorry for delay in reply. Please check in the below screen shot of the t-code REAJPR or alternatively send me screen shot of the Activity status tab and I will look into it.

      Activity%20Status

      Activity Status

      Author's profile photo Jhon Fung Chua
      Jhon Fung Chua

      Hi David,

      You have to activate the adjustment, try tcode REAJCH.

      Hope helpful.

      Author's profile photo Amar Kumar
      Amar Kumar
      Blog Post Author

      On the output screen, when you execute the transaction REAJPR in update mode. You will see the activate icon on the screen. Select the contracts and click on the activate icon.

      Adjustment%20Activation

      Adjustment Activation

      Author's profile photo Jhon Fung Chua
      Jhon Fung Chua

      Hi Amar,

      Nice share & very helpful.

      I follow the step to do adjustment -50% for basic rent (start from 01.04.2020), the adjustment run successfully but why the rent adjustment not appear in the contract ?

      Did I miss something?

      Thanks.

      Before%20adjustment

      Before adjustment

       

      Execute%20Adjustment

      Execute Adjustment

       

      Activity%20Status

      Activity Status

       

      After%20adjustment

      After adjustment

       

      Rent%20adjustment%20not%20appear%20in%20the%20contract

      Rent adjustment not appear in the contract

      Author's profile photo Amar Kumar
      Amar Kumar
      Blog Post Author

      Dear Jhon,

      I am not 100% sure, but just double check with your authorization consultant, whether you have the requisite authorization for the same. If contract conditions are adjusted, it certainly has performed the rent adjustment at contract level.

      Amar

      Author's profile photo Sreehari Venugopal
      Sreehari Venugopal

      Hi Amar,

      Could you please share the configuration steps of Rent adjustments?

       

      Thanks,

      sreehari

      Email:- sreeharitv36@gmail.com