What is allocation rule in SAP RE-FX - Flexible Real Estate Management?

SAP Term: allocation rule

• Component: RE-FX

• Component Name: Flexible Real Estate Management

• Description: Service charge settlement Rule that has to be entered on the settlement unit per service charge key in order for services charges to be apportioned. The rule contains the purpose of the apportionment such as landlord/tenant apportionment, the percentage of service charges from the settlement unit, the measurement type, and the vacancy percentage rate charged to the landlord.

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• Key Concepts: 
  An allocation rule in SAP RE-FX Flexible Real Estate Management is a set of criteria used to determine how costs and revenues are allocated among different properties or tenants. It is used to ensure that the costs and revenues associated with a particular property or tenant are accurately reflected in the financial statements. 
  
  How to use it: 
  Allocation rules can be created in SAP RE-FX Flexible Real Estate Management by defining the criteria for allocating costs and revenues. This includes specifying the type of cost or revenue, the period of time it applies to, and the percentage of the total cost or revenue that should be allocated to each property or tenant. Once an allocation rule has been created, it can be applied to any transaction related to a property or tenant. 
  
  Tips & Tricks: 
  When creating an allocation rule, it is important to consider how the costs and revenues associated with a particular property or tenant will be allocated over time. For example, if a tenant is responsible for a portion of the utility costs associated with a property, it may be beneficial to create an allocation rule that allocates those costs over multiple periods. This will ensure that the tenant’s portion of the utility costs is accurately reflected in the financial statements. 
  
  Related Information: 
  For more information on creating and using allocation rules in SAP RE-FX Flexible Real Estate Management, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed instructions on how to create and use allocation rules in SAP RE-FX Flexible Real Estate Management.