How to handle realestate casualties using RE-FX?
Would you please give me an advice how can I handle some RE casualty using RE-FX?
Here is the scenario:
leased are building and rental objects
we have a contract created in RE-FX
casualty happened at the meddle of the contract term (fire) the building is partially destroyed and some of the rental objects are fully destroyed.
The question is how we can handle such scenario from best practices point of view and what we do with already destroyed objects?
Thank you in advance!
Subbarao Narnei replied
As suggested in above reply you can do that also please try to consider below points.Based on the situation your tenancy contract may get closed if renovation period is too long.
Regarding the insurance you can manage the details in Building master data --> Values TAB ( Standard fields are available for insurance data) --> no separate settlement process, as needed you can deal with Direct FI postins. or
If you want a entries from RE-FX then can create a new contract with informational Tick( at Objects Tab) only to manage the insurance related transactions by giving a new condition as Insurance claim and Business partner will be your insurence company and post the invoice and payments receipts accordingly, so that your entries will be up to date in RE-FX and FI point of view also.
If you are closing the existing contracts : At Rental object level Occupancy tab manage the period of maintenance by giving the vacancy reason "Renovation due to Fire" (Status for future reporting purpose).
If you are not closing the existing contracts : Then you can adjust the contract conditions for the given period with a required rental values or you can manage this period as a separate condition with condition purpose Statistical, so that rent will not be calculated for this period as well as it will be recorded in your books.
Also Conditions Tab - MEMO (Sub tab) use for maintain for some description related to this.
If number of contracts are less do this by manual, if its many then try to use the ADJUSTMENTS option to change the conditions values.( Here you can do it for multiple contracts at a time).
Also one more option is if you don't want to disturb the existing conditions in any contract then you can pass a new condition as Discount (to tenants) and give the amount and valid dates & frequency are as required by your business based on the period of renovation so that there will not be any gap in financial books as well.