What is capping provision in SAP RE-FX - Flexible Real Estate Management?

SAP Term: capping provision

• Component: RE-FX

• Component Name: Flexible Real Estate Management

• Description: Maximum increase of condition amounts per adjustment rule and time period. Normally it is set by law. Example The maximum increase allowed within twelve months is ten percent and within 36 months is 25 percent.

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• Key Concepts: 
  Capping provision is a feature of SAP RE-FX Flexible Real Estate Management that allows users to set a maximum amount of money that can be spent on a particular real estate transaction. This feature helps to ensure that the transaction does not exceed the budget set by the user. 
  
  How to use it: 
  To use the capping provision feature, users must first set a maximum amount of money that can be spent on a particular real estate transaction. This can be done in the “Capping Provision” tab of the RE-FX Flexible Real Estate Management system. Once the maximum amount has been set, any transaction that exceeds this amount will be blocked and will not be allowed to proceed. 
  
  Tips & Tricks: 
  It is important to remember that the capping provision feature only applies to real estate transactions and not to other types of transactions. Additionally, it is important to keep in mind that the capping provision feature does not guarantee that all transactions will stay within the budget set by the user; it only serves as an additional safeguard against overspending. 
  
  Related Information: 
  For more information about SAP RE-FX Flexible Real Estate Management and its features, please visit the official SAP website at www.sap.com. Additionally, there are many online resources available that provide detailed information about how to use this system and its features.