Assigning Conditions and their Frequency to the Contract

Objectives

After completing this lesson, you will be able to:

  • Assign conditions and their frequency to the contract

Conditions and Frequency

In addition to the condition types, there are also condition groups. Only condition types of the condition group that is assigned to the contract type are available for a contract of a certain contract type. Contract conditions can also be relevant for the balance sheet valuation of lease contracts.

Examples of condition groups are:

  • Commercial Lease-in or Lease-out.
  • Residential Lease-in or Lease-out.
  • Service Charges.
  • Deposit contract.

You can maintain contract conditions either manually or with an automatic condition adjustment run. To add a new condition to a contract, you must choose the condition type, the condition purpose, validity dates, unit price, and calculation and distribution data. Remember that you must change the validity end date of the previous condition of the same condition type and condition purpose first before you enter a new condition. If you copy an existing condition (and change the validity begin date and the unit price of the condition), the system automatically terminates the previous condition.

There are several ways to change contract conditions. You can also define the validity end date (December 31 of last year) of the previous condition manually before creating a new condition that starts from January 1st of this year. Another way is to create graduated conditions using the Generate Grading function.

Data on the frequency of posting and organizational assignments is noted on the Posting Parameters tab page. The system automatically assigns the condition to the standard terms (Postings, Frequency, Organizational Assignment). If you want to assign a condition to a different term (not the standard term), you must assign it manually.

In this exercise, you will change and maintain contract conditions.

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