What is composite rate in SAP RE - Real Estate Management?

SAP Term: composite rate

• Component: RE

• Component Name: Real Estate Management

• Description: Under German law, the arithmetic means of calculating monthly option rates in the input tax correction phase thatis, year of initial use of an asset. In this phase, it is used as a basis for the deductible or non-deductible input tax amounts of the acquisition/production costs of an asset. The composite rate is recalculated every month. The rate in December of the calendar year in which it was initially used is kept as the base rate.

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• Key Concepts: 
  Composite rate is a feature in SAP Real Estate Management (RE) that allows users to calculate rental rates based on multiple factors. It allows users to define a base rate and then add additional factors such as inflation, taxes, and other costs. This allows for more accurate rental rate calculations. 
  
  How to use it: 
  To use composite rate in SAP RE, users must first define the base rate. This can be done by entering the base rate into the system or by using a formula to calculate the base rate. Once the base rate is defined, users can then add additional factors such as inflation, taxes, and other costs. The system will then calculate the total rental rate based on these factors. 
  
  Tips & Tricks: 
  When using composite rate in SAP RE, it is important to ensure that all of the factors used in the calculation are accurate and up-to-date. This will ensure that the rental rates calculated are accurate and reflect current market conditions. Additionally, it is important to review the calculations regularly to ensure that they are still accurate. 
  
  Related Information: 
  For more information on composite rate in SAP RE, please refer to the official SAP documentation at https://help.sap.com/viewer/product/REAL_ESTATE_MANAGEMENT/100/en-US.