All-rounder for all legal requirements – solution for cooperatives in use for the first time
In the context of housing construction, cooperatives are becoming increasingly important as an alternative form of organisation. Housing cooperatives are based on the principle of self-help and the communal use of living space, meaning that they pursue not only economic but also social goals. Cooperative law, which regulates the structure and actions of these organisations, forms an essential basis for their operational processes.
In this context, housing cooperatives are faced with numerous requirements derived from the provisions of cooperative law. From the obligation to prepare reports for members to the procedure for the withdrawal of members and the distribution of profits, housing cooperatives are confronted with numerous tasks that are not covered by standard real estate management software. For this reason, PROMOS has developed a special solution that takes into account all legal requirements and provides process-orientated digital support for day-to-day operations. In line with the new ready-to-use approach, the solution can be delivered and used immediately by any housing cooperative.
Basics of the solution
The new solution for cooperatives is accessed via task-specific tiles. In line with the user-oriented approach of Fiori®, each employee is only shown exactly the tiles that are required for the respective task field or for which he or she is authorised.
Clustering according to processes and topics, such as annual financial statements or postings, is useful because it greatly increases clarity. At the same time, it can be customised for each individual company (see Figure 1). In principle, the solution is technically structured in such a way that a membership contract is assigned to each rental contract, as each tenant must also be a member of the cooperative. This link simplifies the maintenance and processing of data thanks to the exact assignability and the simple option to jump to the rental contract and back to the business partner – at the touch of a button! This assignment forms the logical basis of the solution.
Figure 1: The membership contract contains all information about the cooperative member.
From joining to leaving – fulfilment of all requirements during the course of a membership
To become a member of a housing cooperative, the interested party must submit a written application. This is then reviewed by the cooperative’s management board. The amount of the shares to be paid is determined on the basis of various factors, e.g. by the articles of association themselves, the value or size of the allocated property or by democratic decision of the members. The membership process is supported digitally by the cooperative solution and membership is documented.
Numerous practical functions in the solution not only simplify the entire process, but also increase payment security and efficiency. The subscribed shares and the member’s actual credit balance can be clearly viewed at any time on the “Shares” tab of the membership contract. The tool can also be used to record and precisely map members’ share movements. The solution also supports the simultaneous admission of several new cooperative members. If the rental contract is terminated, the member generally leaves the cooperative. The shares are paid out. However, if there are outstanding claims against the member, a payment block can be set up in SAP®. If the member wishes to retain their shares, the link between the rental and membership contract is severed.
Annual financial statements and dividend distribution
Depending on the business objectives of the respective cooperative, the cooperative solution can support both asset-building and non-asset-building activities. For example, the solution maps the entire process of dividend distribution to members. From managing exemption orders and calculating church tax to setting up dividend blocks, the solution offers all processing options – clearly and conveniently via the Fiori® Launchpad. The solution also supports the preparation of annual financial statements. A particularly convenient feature is that transfers can easily be made after the preparatory work for the annual financial statements has been completed, for example in the event that a member leaves.
Figure 2: The “Shares” tab of the membership contract clearly lists share movements, subscribed share capital and information on dividend distributions.
Figure 3: In the Fiori® Launchpad, all important applications of the cooperative administration can be called up in a task-oriented manner.
Documentation and evaluation
The cooperative solution maps the legally required maintenance of a register list. The members themselves, information on admission or termination, share movements and a lot of additional data are recorded and documented there. This means that employees can quickly call up all important information directly in SAP® using separate tiles. A broad-based information system also provides a wide range of data at the touch of a button, such as a list of electoral districts, membership lists and financial information.
Ready-to-use solution with customisation options
The newly developed cooperative solution for SAP Fiori® is designed as standard to optimally map all the obligations of cooperative housing companies. It is ready for immediate delivery and has already been in use in its current form in a German housing cooperative since the beginning of the year. On request, the solution can be customised according to the respective processes. Fields can also be pre-assigned during customising.
The clear access via the Fiori® Launchpad and the integration of all necessary tasks in the cooperative working environment are unique on the market to date and make life much easier for users. The solution’s high level of integration avoids the need for additional solutions or Excel spreadsheets of any kind – meaning no media discontinuities or additional work. In addition, transparency is significantly increased through simple access and jump options to information and comprehensive documentation. The required information can be called up and processed with a single click. It’s a modern solution that’s very impressive!
redaktion@openpromos.de