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.
Field
Description
Market risk premium
Specify the Market risk premium per sector, expressed as a percentage. The market risk premium is used in the calculation of the discount rate. Please note the following:
• If the process settings are synced with the company settings, you cannot edit anything in this screen.
• Only the year of the valuation date is shown.
Risk free rates
Specify the risk-free rate per country, expressed as a percentage. This rate is derived from the yield of long-term (10-year) government bonds with a triple-A rating from a country. It is essential for calculating the discount rate percentage, which is then used as an input for the net present value (NPV) calculation.
Index series
You can specify the following index rates for the past year, the current year and the next 10 years:
• Market rent index rate
• Exploitation cost index rate
• Construction cost index rate
• Sale amount index rate
• Market value index rate
• Liberalized contract index rate
• Regulated contract index rate
Defaults
You can set the following defaults for each country and property type combination:
Property defaults
• Valuation method
• Notary costs
• Agent costs
• RETT scheme
• VAT scheme
• Capital value rounding method
• Entry value method
• Terminal value method
• Allocation key
Contract defaults
• 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
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.
The following cluster settings are available:
• Name
• Financial statement
• Currency
• 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.