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

SAP Term: option rate

• Component: RE

• Component Name: Real Estate Management

• Description: Under German law, the percentage ratio of rentals liable to sales tax compared to the total rentals of rental units belonging to one business entity. The deductible and non-deductible input tax is calculated on the basis of the option rate. The option rate is determined on a monthly basis.

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• Key Concepts: 
  Option rate is a feature of SAP Real Estate Management (RE-FX) that allows users to set a rate for an option period. This rate is used to calculate the option fee for a lease contract. The option rate is set by the user and can be changed at any time. 
  
  How to use it: 
  In order to use the option rate feature, users must first create a lease contract in SAP RE-FX. Once the contract is created, users can set the option rate by entering the desired rate in the “Option Rate” field. This rate will then be used to calculate the option fee for the lease contract. 
  
  Tips & Tricks: 
  It is important to note that the option rate should be set before any payments are made on the lease contract. If the option rate is changed after payments have been made, it could result in incorrect calculations of the option fee. 
  
  Related Information: 
  For more information on how to use the option rate feature in SAP RE-FX, please refer to the SAP Help documentation. Additionally, there are several online tutorials available that provide step-by-step instructions on how to use this feature.