What is clearing rule in SAP RE - Real Estate Management?

SAP Term: clearing rule

• Component: RE

• Component Name: Real Estate Management

• Description: Contract management A part of the sales-based rent agreement in a commercial real estate contract. A clearing rule is required if advance payments for s ales-based rent, or minimum rent already paid, must be offset in the sales-based settlement.

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• Key Concepts: 
  A clearing rule in SAP Real Estate Management (RE) is a set of criteria used to determine how a tenant’s payments are allocated to their various rental obligations. It is used to ensure that all payments are correctly applied to the correct rental obligations and that any remaining balance is correctly accounted for. 
  
  How to use it: 
  Clearing rules can be set up in the RE system by entering the criteria for each tenant’s payment allocation. This includes the order in which payments should be applied, the amount of each payment that should be allocated to each rental obligation, and any other conditions that should be taken into account when allocating payments. Once the clearing rule has been set up, it can be applied to all future payments made by the tenant. 
  
  Tips & Tricks: 
  When setting up a clearing rule, it is important to ensure that all criteria are clearly defined and that all conditions are taken into account. This will help ensure that all payments are correctly allocated and that any remaining balance is correctly accounted for. 
  
  Related Information: 
  For more information on setting up clearing rules in SAP Real Estate Management, please refer to the official SAP documentation.