What is provisional agreement in SAP RE-FX - Flexible Real Estate Management?

SAP Term: provisional agreement

• Component: RE-FX

• Component Name: Flexible Real Estate Management

• Description: A lease-out that is concluded as a provisional agreement during the construction phase of a real estate asset. A provisional agreement is the basis for input tax treatment of the acquisition/manufacture costs of an asset in construction. It must applyto commercially used rental units.

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• Key Concepts: 
  A provisional agreement in SAP RE-FX Flexible Real Estate Management is a contract between a tenant and a landlord that outlines the terms of a rental agreement. It is not legally binding, but it serves as an indication of the parties’ intentions and can be used to help negotiate a final agreement. 
  
  How to use it: 
  In SAP RE-FX, a provisional agreement is created by entering the tenant’s details, the rental period, and any other relevant information. Once the agreement is created, it can be printed or emailed to the tenant for review. If both parties agree to the terms of the provisional agreement, they can then move forward with negotiating a final agreement. 
  
  Tips & Tricks: 
  When creating a provisional agreement in SAP RE-FX, make sure to include all relevant information such as rental rates, security deposits, and any other special conditions. This will help ensure that both parties are on the same page when negotiating a final agreement. 
  
  Related Information: 
  For more information on creating and managing provisional agreements in SAP RE-FX, please refer to the official SAP documentation.