What is deferred income in SAP RE - Real Estate Management?

SAP Term: deferred income

• Component: RE

• Component Name: Real Estate Management

• Description: Revenues that are allocated in part, or in full, to an accounting period subsequent to the periods in which they are received. Such revenues must be deferred to guarantee a correct income statement. In , the "Deferred Income" process is applicable to customer contracts with the condition type "rent paid in advance."

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• Key Concepts: 
  Deferred income in SAP RE Real Estate Management is a type of income that is not recognized in the current period, but instead is recognized in a future period. This type of income is typically associated with long-term contracts or leases, where the tenant pays rent in advance for a period of time. The income is then recognized over the duration of the contract or lease. 
  
  How to use it: 
  In SAP RE Real Estate Management, deferred income can be recorded by creating a deferred income account and entering the amount of income received in advance. This amount will then be recognized over the duration of the contract or lease. The deferred income account can also be used to track any changes in the amount of deferred income due to changes in the contract or lease terms. 
  
  Tips & Tricks: 
  When recording deferred income in SAP RE Real Estate Management, it is important to ensure that all relevant information about the contract or lease is accurately recorded. This includes the start and end dates, as well as any changes to the terms of the contract or lease. This will ensure that the correct amount of deferred income is recognized over the duration of the contract or lease. 
  
  Related Information: 
  For more information on deferred income in SAP RE Real Estate Management, please refer to SAP Help documentation on Deferred Income and Deferred Income Accounts.