What is index clause in SAP RE - Real Estate Management?

SAP Term: index clause

• Component: RE

• Component Name: Real Estate Management

• Description: Under German law, an agreement between landlord and tenant on the rent adjustment for index-linked rents based on the cost of living inflation rate.

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• Key Concepts: 
  Index clause is a feature in SAP Real Estate Management (RE) that allows users to define the indexing of rental payments. This feature allows users to define the indexing of rental payments based on a specific index, such as inflation or a market index. The index clause also allows users to define the frequency of the indexing, such as annually or quarterly. 
  
  How to use it: 
  To use the index clause feature in SAP RE, users must first create an index clause in the system. This can be done by navigating to the “Index Clause” tab in the RE menu and selecting “Create”. From there, users can enter the details of the index clause, such as the type of index, frequency of indexing, and any other relevant information. Once the index clause is created, it can be applied to rental contracts. 
  
  Tips & Tricks: 
  When creating an index clause in SAP RE, it is important to ensure that all relevant information is entered correctly. This includes entering the correct type of index and frequency of indexing. Additionally, it is important to ensure that all relevant fields are filled out correctly before saving the index clause. 
  
  Related Information: 
  For more information on using the Index Clause feature in SAP RE, please refer to SAP Help documentation at https://help.sap.com/viewer/product/SAP_RE/latest/en-US/index_clause_overview.html