What is gross-up in SAP RE-FX-YC - Common Area Maintenance?

SAP Term: gross-up

• Component: RE-FX-YC

• Component Name: Common Area Maintenance

• Description: An adjustment made to operating expenses to account for the occupancy level in a building. When operating expenses are "grossed up", it means that the building's variable expenses have been adjusted upward to the level that those expenses would be incurred if the building were more fully occupied.

Smart SAP Assistant

• Key Concepts: 
  Gross-up is a term used in the SAP Real Estate and Facility Management (RE-FX) module to refer to the process of increasing the amount of a payment to cover additional costs such as taxes or fees. This is typically done when a tenant pays rent or other charges to a landlord. The gross-up process ensures that the tenant pays the full amount due, including any additional costs.
  
  How to use it: 
  In SAP RE-FX, gross-up is used in the Common Area Maintenance (CAM) process. CAM is a process used by landlords to collect payments from tenants for common area maintenance costs such as landscaping, snow removal, and other services. When a tenant pays for CAM charges, the landlord can use the gross-up process to ensure that the tenant pays the full amount due, including any additional costs. 
  
  Tips & Tricks: 
  When using the gross-up process in SAP RE-FX, it is important to ensure that all applicable taxes and fees are included in the calculation. This will ensure that the tenant pays the full amount due and that the landlord does not incur any additional costs. 
  
  Related Information: 
  For more information on SAP RE-FX and Common Area Maintenance, please refer to SAP's official documentation at https://help.sap.com/viewer/product/SAP_REFX/latest/en-US.