Wrong behavior with “possession date from”

[Former Member]

Hello,

Does anybody know if there exists a solution for this wrong behavior with this particular date?

We have contracts that are using “possession date from” as the date from the object is really occupied.  From that date we want to start using some specific conditions.  But many processes have to use the Occupancy view, and for that view the object remains free until the "Contract start date", and that’s not true, because We already have specified that the space is occupied.

So, why could this happen?

Is there something wrong on the way we are using the view or are we missing some configuration items?

To be more specific we attach some screens to show you what we meant.

Thanks in advance.

Maria Gabriela

[JFPC]

Hi Maria,

The possession dates are in the contract to be able to let the tenant use the object outside of the regular contract term. The contract term is used for occupancy and not the possession dates. With these dates however it is possible to invoice the tenant outside of the contract term.

This means that the contract term is used for occupancy and shows the rental object as leased out in this period. The possession dates are used for giving out this rental object to the tenant while it is vacant.

Now it is also possible to let the tenant give notice on a certain day but still invoice him for the regular contract term. The rental object is vacant and can be leased out to a new tenant. If that is the case the possession of the old tenant stops.

So these are different dates.

Regards,

Jeroen

[Former Member]

Hi María,

as Jeroen says.., the contract term is used for occupancy in LO contracts and not the Possesion Dates. The Possesion dates are used for straight-lining functionality according to FAS13 (IAS17).

Regards,

Fernando

[Former Member]

Thanks for your reply.  We agreed with your apreciation, actually, we know that the system is working that way.  But that's not what we are looking for.  We believe that should exist some configuration that fits with the real situation that we are explaning.  Let me present this example:

Every contract starts when the local opens, and the terms of the contract and period starts on that date.

But we need to give the space to the tenant a few months before, so he can build and prepare the space.  On that time the space is occupied for the tenant, working on the preparation, we can´t say the space is empty or free, or ready to negotiate to another tenant.  That's not true, the space is already occupied.

We believe that if we say the possesion date is marked, that should be enough information for the system that implied the space is not empty, don't you agreed?

Thanks in advance,

Maria Gabriela

[Former Member]

Hi Maria,

I understand perfectly the business scenario you describe. But from my understanding, the Possesion Dates are only to calculate the straight line considering a date before the start date of the contract. The Occupancy report is not based in the data you populate in the Possesion date fields, it´s based in the dates that the RO is assigned to a contract, since this report (functionality) works without these Possesion dates (as you known, it is necessary to implement a BADI for FAS 13 and therefore to activate the Possesion dates fields).

I´m afraid you have 2 alternatives:

1 - Send a message to SAP support in order to get any help or any confirmation of the Occupancy report doesn´t work with the Possesion Dates as you desire.

2 - This one will suppose a big impact in your current Contract master data management, because you should update the Contract Start date in your contracts. Consider the Start date of the contract as the date that the customer occupies the space to prepare it, and the 1st Posting date as the Start date of the contract ( in order to bill to the tenant, once the repairs have been done). E.g.:

Business scenario in the real life:

• Space occupied from 01.01.2012 in order to do the repairs (No billing).
• Contract Start Date from 01.04.2012 (Start of billing).

In RE-FX Contract master data:

• Contract Start Date: 01.01.2012
• 1st Posting date: 01.04.2012

Note: Take into account also the RO Valid relationship date to the Contract (in my example, it woul be 01.01.2012).

Additionally, there is another field in General Data tab, 1st Conclusion, you also can use to populate the Contract Start date (01.04.2012 in my example) as informative for Reporting.

Best regards,

Fernando