RERAPP which contract end date is calculated

[uchrist]

I’ve the question how RERAPP will calculate then term of a contract and how the contract end date is determined. In RECEEP we’ve the probable end date.

In my case we’ve a contract which is in the status: in repeating reneval optionand the PED Date is the 31^st of August.

The PED is calculated with the next contract end date (f.e. 31^st of August) , but the RERAPP takes all possible renevals till 2050. And has already booked for the whole year.

Cause the PED is mid of the year not all already booked conditons via RERAPP are considered in the valuation (in the clearing postings). Cause of this behavior we’ve differences. Is this behavior correct/SAP standard?

Does someone know how the RERAPP calculates the Contract Enddate? Or exist a documentation about RERAPP Calculation?

Thanks a lot for every hint

Kr

Ursula

[andre_nakratzas]

Hi Ursula,

In RERAPP the program will look at the "end of term" date, however please check the following. If you go into the "Renewal" on the "Term" tab and click on the "Simulation" button you can see the details of the renewal cycle. In there you'll see a renewal rule and probably that is set to "Automatic", which means there is not manual intervention to renew and the system just automatically renews the contract until the end of the cycle.

RERAPP will pick up whatever is calculated in the Conditions cashflow. It also depends what the frequency is of your condition because normally the condition will be picked up monthly, unless you have an annual condition frequency. If it is annual it will pick up the annual amount and will not calculate a pro-rata amount until 31 August.

Regards, Andre