What is input tax adjustment in SAP RE - Real Estate Management?

SAP Term: input tax adjustment

• Component: RE

• Component Name: Real Estate Management

• Description: Under German law, the time period from the first use of an asset for example, April 1996 until the end of that same calendar year December 1996. The input tax amounts of the acquisition/construction costs of an asset have to be adjusted in this phase if there is a change to the option rates.

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• Key Concepts: 
  Input tax adjustment is a feature of SAP Real Estate Management (RE) that allows users to adjust the amount of input tax they have to pay on a purchase. This adjustment is based on the difference between the actual purchase price and the estimated purchase price. The adjustment can be made either before or after the purchase has been made. 
  
  How to use it: 
  In order to use input tax adjustment, users must first enter the estimated purchase price in the system. This can be done either manually or by importing data from an external source. Once the estimated purchase price has been entered, users can then adjust the amount of input tax they have to pay by entering the actual purchase price. The system will then calculate the difference between the two prices and adjust the input tax accordingly. 
  
  Tips & Tricks: 
  It is important to ensure that the estimated purchase price is accurate in order to ensure that the input tax adjustment is correct. Additionally, it is important to keep track of any changes made to the estimated purchase price as this may affect the amount of input tax that needs to be paid. 
  
  Related Information: 
  Input tax adjustment is just one of many features available in SAP Real Estate Management (RE). Other features include lease management, asset management, and financial reporting. Additionally, SAP RE also provides users with access to a variety of tools and resources that can help them manage their real estate investments more effectively.