Hierarchy

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IMG Activity
ID | REFXV_TIVAJMAXINC | Define Adjustment Parameters (Capping Provisions) Dependent on Term |
Transaction Code | S_ALN_01001552 | (empty) |
Created on | 20030220 | |
Customizing Attributes | REFXV_TIVAJMAXINC | Define Maximum Increase per Adjustment Rule |
Customizing Activity | REFXV_TIVAJMAXINC | Define Maximum Increase per Adjustment Rule |
Document
Document Class | SIMG | Hypertext: Object Class - Class to which a document belongs. |
Document Name | REFXV_TIVAJMAXINC |
Use
In this activity, you can specify for each adjustment rule, if a maximum limit is set for an increase. You also specify the how high this maximum is, and the period for which it is effective. When an adjustment is made, the system checks the rules separately for each time period. If the adjustment amount is larger than the smallest amount resulting from the application of all the rules, then the system reduces the adjustment amount accordingly.
The maximum increase is usually set by law.
The maximum increase can be entered using one of the following parameters:
- Absolute per Measurement (Maximum Increase per Measurement)
- Absolute per Condition Amount (Maximum per Condition Increase)
- Percentage (Maximum Increase in %)
If you choose a percentage, then you have to enter the capping basis for it. (Is the percentage multiplied by the unit price or by the condition amount that results from the calculation?)
In addition, you can set an upper limit for the resulting new rent. You also have the option here of entering either the absolute upper limit per measurement or the absolute upper limit for the entire condition amount. If more than one upper limit was entered, then the system satisfies all of the upper limits when the condition amount in the adjustment is reduced.
You can also specify minimum increases. You can use one of the above parameters for a minimum increase as well.
It is also possible to specify minimum increases. The following applies to minimum increases:
- If you enter a value in one (or more) of the minimum increase fields, then the system makes the adjustment only if the increase amount that is determined is at least the same as the value entered in this field. You can make use of this to prevent an adjustment being made for a trivial amount.
- Above and beyond that, you can also use the Increase to Minimum Increase? indicator. This allows you to ensure that the increase is at least the minimum amount that was set, even if the result of the calculation is a smaller value. The increase is then performed as if you had used a free adjustment method (normally useful only if there is at least a minimum interval between two adjustments).
If the minimum amount calculated in this case is smaller than the maxium amount determined based on the upper limit, then the system ignores the minium amount.
Example
For adjustment rule A, you define that the maximum increase within 12 months can be 10%, within 36 months 25%.
The condition history for contract 1 for rent is below. Adjustment rule A is assigned to this condition.
January 1, 2000 500
January 1, 2001 550
January 1, 2002 600
Adjustment rule A calculates a condition amount of 650 for January 1, 2003. For a maximum increase within 12 months this amount is correct, since the rent was 600 euros 12 months before the adjustment date. An adjustment amount of up to 660 euros would be allowed given the maximum allowed increase of 10%.
However, on January 1, 2000, 36 months before the adjustment date, the rent was 500. The maximum allowed increase within 36 months is 25%, which means the maximum amount allowed is 625. The system reduces the original adjustment amount of 650 to 625.
Business Attributes
ASAP Roadmap ID | 203 | Establish Master Data |
Mandatory / Optional | 1 | Mandatory activity |
Critical / Non-Critical | 1 | Critical |
Country-Dependency | A | Valid for all countries |
Assigned Application Components
Documentation Object Class | Documentation Object Name | Current line number | Application Component | Application Component Name |
---|---|---|---|---|
SIMG | REFXV_TIVAJMAXINC | 0 | ALN0000032 | Rent Adjustment |
Maintenance Objects
Maintenance object type | C | Customizing Object |
Assigned objects | ||||||
---|---|---|---|---|---|---|
Customizing Object | Object Type | Transaction Code | Sub-object | Do not Summarize | Skip Subset Dialog Box | Description for multiple selections |
V_TIVAJMINMAXINC | V - View | SM30 |
History
Last changed by/on | SAP | 20040305 |
SAP Release Created in | 200 |