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Grace Period at the End of the Contract

May 09, 2017 at 07:50 AM

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Hi,

My Customer has a requirement of Grace Period / rent Free Period at the end of the Contract. For example if the Contract is for 12 months, at the end provide 2 more month extra which will be treated as rent free to the tenant.

How to Map this Scenario in ReFx.

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1 Answer

Franz Posch
May 15, 2017 at 03:26 PM
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Hi Shinas,


It is possible to set an end date for the condition. Thus you can end the condition for example on 31.10.2017 and the contract end date is 31.12.2017.


Best regards,


Franz

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Hi Franz,

Appreciate your valuable Input.

As i have mentioned, the scenario is 1 year Contract and at the end of the contract , on personal request we extend the contract for 2 more months which will be treated as rent free.

Which mean No Periodic Posting, Invoice to Customer for this period, No revenue nonrecognition for this Period.

Its Extension and not shorten.

And as you have mentioned, what i feel extend contract for 2 more months and end the conditions in 12 Period Itself.

for example, jan 2016 to dec 2016 is contract and on dec 2016 extend it on request for 2 more month but condition ends in dec 2016.

Appreciate more suggessions and recomendations..

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Hi Shinas,

thanks for your further explanation.


Referring to your example:

contract end date is 31.12.2016

The contract should be extended for 2 months but condition should end on 31.12.2016.


Please try out the following:

change the contract end date to 28.02.2017

set the condition valid to date to 31.12.2016 to prevent further postings


If this does not help then please provide further explanation about what is expected referring to the example.


Regards, Franz

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Thanks Franz..

I am new to REFX and now testing all The Scanrios.

will revert you back soon.

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Former Member

Hi Franz,

My requirement is rent contract is for 12 months and grace period of 2 months , so in total occupancy is for 14 months. Business requirement is BP should be billed quarterly and payments of 4 cheques should be made against invoices.

But revenue recognisation should be made over 14 months, how to map this scenario.

Thanks & Regards

Gyanendra

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