What is irrecoverable debt in SAP RE - Real Estate Management?

SAP Term: irrecoverable debt

• Component: RE

• Component Name: Real Estate Management

• Description: Rent receivables open items that cannot be collected due to certain circumstances such as death or bankruptcy of the tenant.

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• Key Concepts: 
  Irrecoverable debt is a term used in SAP Real Estate Management (RE) to refer to a debt that cannot be recovered from a tenant. This could be due to the tenant's insolvency, or because the tenant has moved out of the property and cannot be located. 
  
  How to use it: 
  In SAP RE, irrecoverable debt is recorded in the system as a negative value in the tenant's account. This negative value is then used to offset any future payments that the tenant may make. 
  
  Tips & Tricks: 
  When recording irrecoverable debt in SAP RE, it is important to ensure that all relevant information is included in the system. This includes the amount of debt, the date it was incurred, and any other relevant details. 
  
  Related Information: 
  Irrecoverable debt is a common issue for landlords and property managers. To learn more about how to manage this type of debt, please refer to our guide on managing irrecoverable debt in SAP RE.