Planon Real Estate : RE Assets : Processes : Process settings
Process settings
In the Process overview screen, you can access the Process settings to configure and manage various aspects of your process. Please note that for the Budget process, these settings are not available.
The budget for each asset inherits its settings from the source asset. For more information on authorization settings, see Asset authorizations.
If the process settings are not synchronized with the application settings, the process administrator can edit them. By clicking Update process settings, the process administrator can update all process settings once to match the application settings.
The administrator can choose to update either: only the asset authorization, or all process settings except the asset authorization.
Field
Description
Market risk premium
In the Planon RE Assets application, the Market risk rate is required to calculate the discount rate (%), which serves as input for the Net Present Value (NPV) calculation. The valuation year is displayed.
Risk free rates
In the Planon RE Assets application, the Risk free rate is required to calculate the discount rate (%), which serves as input for the Net Present Value (NPV) calculation. The valuation year is displayed.
Index series
You can specify the following index rates for the year preceding the process reference date and for each year in the forecast period, for all index series created in the application settings.
Defaults
You can set the following defaults for each country and property type combination:
Property defaults
• System strategy
• Valuation method
• Notary costs
• Agent costs
• RETT scheme
• VAT scheme
• Capital value rounding method
• Entry value method
• Terminal value method
• Allocation key
Contract defaults
• Recovery structure
• VAT liable
• Turnover rate
• Relet term
• Rent-free method
• Rent-free term
• Vacancy term
• Rent duration
• Renewal rent type
• Notice period
Contract line defaults
• Contract line type
• Cash flow method
• Cash flow period
• Index methodology
• VAT scheme
• Review rent type
• Review term
• General ledger
Discount rate policy value
This setting enables the configuration of the social discount rate for both DAEB and non-DAEB properties, and the property risk premium applicable to all property types.
EFG deferred maintenance costs
The deferred maintenance costs can be configured per energy label for both independent and non-self-contained dwellings.
When the Basis of value is set to Policy value and the EFG Energy Label Deferred Maintenance Cost System cash flow line is active, the system calculates the configured deferred maintenance costs as of the valuation date for each dwelling. The calculation is based on the energy label assigned to the corresponding rentable unit.
The deferred maintenance costs are only calculated if no monument type is specified for the dwelling.
Clusters
A cluster is a group of assets with the same characteristics. Each cluster can have different settings. You can select one or multiple characteristics to define clusters: Sector, Country, Region, City. An asset cannot belong to more than one cluster.
The following cluster settings are available:
• Financial statement
• Index method renewal rent
• Index method Land value
• Index method vacant possession value
• Index method rebuild value
• Index method tax value
• Index method review rent
• Index method rent cap
• Index method estimated rental value
• Index method revaluation
For a scenario process, each allocated asset forms its own cluster, using the cluster settings of the process from which the asset originates.
Forecasting exchange rates
The Forecasting Exchange Rates screen is available in the Process settings.
When a new process is created, the exchange rates are automatically synchronized with the master data. This synchronization ensures that the process uses the most recent exchange rates available on or before the forecast start date.
If needed, the Process Administrator can enable Edit mode. When Edit mode is set to True, the exchange rates are no longer synced with the master data. This allows the administrator to manually edit the exchange rates within the process.