Valuation Contract Conditions

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Why is it necessary to check the valuation part of the contract after any modification on the conditions?

Because the due date can't be changed to a date prior to the latest unposted valuation time slice.

What is the primary objective of the C2 General training session for employees in Lease Accounting?

To cover how to add/close a condition and how to change unit price and due date in a contract.

What is the main difference between Actual Rent and Invoice Recurring in Condition purpose?

Actual Rent is related to contract-based payment and can be paid without an invoice, while Invoice Recurring is related to invoice-based payment and can only be paid when an invoice copy is received.

What is the prerequisite for attending the C2 General training session?

Basic knowledge on lease accounting processes, especially on contract creation and modification. Signup and view all the answers

What happens if the modified condition due date falls before the latest unposted valuation time slice?

The condition with the previous date will move into special flow, hitting the P&L. Signup and view all the answers

Under what circumstances can a condition be modified?

If it is requested by the local market/third party, or when you receive the invoice with a different amount after approval from the local market/third party. Signup and view all the answers

What is the minimum passing rate required to complete the training course?

80% Signup and view all the answers

When is a condition unable to be modified?

During the freeze period during Month end closing & Year End Closing. Signup and view all the answers

What are the key takeaways covered in the 'Summary' section of the training?

Key takeaways and frequently asked questions and answers. Signup and view all the answers

What is the purpose of conditions in the system?

To create planned records for postings that are generated later (cash flow). Signup and view all the answers

What is the consequence of changing the currency of a contract?

A new contract must be created. Signup and view all the answers

Who should employees contact if they have questions or need feedback about the training?

Local SPoCs or the Lease Accounting Question Channel. Signup and view all the answers

What step should be taken when adding a new condition for the CPI?

Select the new index condition reason Signup and view all the answers

What is the importance of simulating the cashflow when adding a new condition?

To review the debit/credit changes, partner, frequency, validity of payment, and amount Signup and view all the answers

What is the requirement when adding a valuation-related condition?

A valuation time slice must be created using Valid date and SOC date as the first day of the current month Signup and view all the answers

What should be done after making changes to a condition?

Contracts must be sent to workflow for approval Signup and view all the answers

What is the procedure to close an existing condition?

Insert the requested end date in the 'Valid to' slot and press enter Signup and view all the answers

What should be done after closing an existing condition?

Simulate to check the cashflow Signup and view all the answers

What is the purpose of using the RE80 or RECN transaction code?

To add or close conditions. Signup and view all the answers

What should be considered when changing the currency of a contract?

If the contract is valuation-relevant, the currency cannot be changed, and a new contract must be created. Signup and view all the answers

What is the restriction on changing the due date for unposted conditions related to valuation?

The due date cannot be set to a date earlier than the latest unposted time slice (Valid from and SOC date). Signup and view all the answers

What is the importance of noting if a condition is valuation-related or not?

To guide on the valuation parameters. Signup and view all the answers

What is the purpose of the Enhancement tab when adding, changing, or modifying a condition?

To identify the reason of change when reviewing the approval workflow. Signup and view all the answers

What is the term used to describe the process of entering account assignments, such as to a profit center or business area?

Organizational assignment. Signup and view all the answers

Why is it essential to note whether a condition is valuation-related or not?

To guide the valuation parameters and ensure accurate financial reporting. Signup and view all the answers

What are the possible condition purposes that can be selected when creating a new condition?

Actual rent, One Time Posting, or Invoice Recurring. Signup and view all the answers

What happens when the due date is changed to a date before the valuation time slice?

The modified amounts are reflected on the 'special flow' and will hit the P&L, requiring correction before month-end closing. Signup and view all the answers

What is the purpose of assigning conditions in processing rental objects or real estate contracts?

To create planned records for postings. Signup and view all the answers

What information can be contained in conditions?

Validity period, calculation formula, and distribution formula. Signup and view all the answers

What is the importance of checking the valuation part of the contract after modifying conditions?

To ensure that the changes are approved through the workflow and to avoid any discrepancies in the valuation. Signup and view all the answers