Real Estate Management Introduction

What is the scope of Flexible Real Estate Management?
Management of real estate

The dual view of master data (architectural view and usage view) lets you easily create and manage all types of real estate objects (business entity, land, building, rental unit, rental space, rental room).

Contract management

  The real estate contract lets you manage all contracts related to your real estate portfolio:

Real estate contracts of the lease-in category (such as, commercial, internal, residential)

Real estate contracts of the lease-out category (such as, commercial, internal, residential)

General customer contracts (such as, service contracts with the tenant)

General vendor contracts (such as, maintenance contracts with a service provider)

G/L account contracts (such as, for posting reserves for service charges)

Security deposit agreements

Space management

Space and room management takes account of unusual architectural structures, usage considerations, as well as technical amenities and features. You can define spaces flexibly and rent them (extracting them from a larger available space). In addition, data exchange with external graphic systems allows you to visually represent your real estate objects.

Lease-in

The credit-side view of the lease-in process lets you control cash flows to the landlord and posting of expenses.

Why flexible? What is the difference between Classic and Flexible Real Estate Management?

Flexible Real Estate Management module is more advanced and refined module by SAP. It rules over Classic version with following benefits:-

•          Architectural/ Usage view of rental objects

•          Flexibility to assign number of rental objects/ WBS elements/ buildings in one single contract

•          Browser based flow of information in master data

•          RE navigator to look at all master data in one transaction

However you might find screens to be complex as there are number of information tabs with numerous fields available to store different set of information. But unwanted fields can be done away with to give a clean and relevant look to the tabs

INTEGRATION

Financial Accounting (FI) enables you to create all required financial statements

Controlling (CO) provides a planning and control instrument for all quantity and values flows in Real Estate Management. Controlling also supports general cost accounting procedures from absorption costing to activity-based costing.

Profit Center Accounting (EC-PCA) provides tools for internal control functions and profitability analysis using profit centers.

Asset Accounting (FI-AA) allows you to manage the valuation of fixed assets for accounting purposes.

Plant Maintenance (PM) and Customer Service (CS) help you plan and implement scheduled and non-scheduled maintenance work, reconstruction, or new development in the real estate area

Materials Management (MM) facilitates purchase order processing of materials as part of planned repair tasks related to heating, ventilation, and air conditioning, as well as general building maintenance.

Project System (PS) assists you with planning complex maintenance and investment projects, while taking constant risk factors into account.

Document Management SAP Records Management (BC-SRV-RM), Document Management (CA-DMS), and optical archiving (BC-SRV-ARL) give you an overview of all documents and correspondence associated with business processes

MASTER DATA

Usage View:

commercial and accounting view with fixed master data objects:

Business Entity/Site

means of forming coherent groupings of individual real estate objects, depending on their purpose and/or geographical location

Land/Property

as the term is used in Flexible Real Estate Management, refers only to the land itself; it does not include the buildings on it. Land is a part of a business entity

Building

An object on the basis of which rooms or areas (for instance apartments, warehouses, stores) are rented. A building is part of a business entity.

Rental Object

The following rental objects are available in the system:

Pooled spaced

Rental space

Rental unit

TRANSACTIONS:

Processing Contract Offers and Real Estate Contracts

You can create contract offers from an RE search request or an offered object and use them to create real estate contracts. You create a contract offer to make a binding offer to a prospect concerning conditions for a rental object. You can create this contract offer first and convert it into a real estate contract later. If you enter all data relevant for a contract in the contract offer, then the system adopts this data later in the real estate contract when you create it

Creating a Contract Offer

Using a contract offer, you can make an offer to a prospect relating to a rental object. The contract offer already contains the conditions that are intended for the real estate contract. The prospect can accept or reject the offer. If the contract offer is accepted, you can convert it into a contract

Real Estate Search 

Using this component, you can search for vacant rental objects and find suitable prospects for rental objects, or vice versa

Periodic Postings

 Periodic postings means processing the transaction with respect to  contracts and

 This can be of following types.

Ø   Periodic posting  of contracts

Ø   Vacancy for Rental Objects

Ø   Reversal of Periodic Posting for Contracts

Ø   Reversal of Periodic Posting for Vacancy

Accrual/Deferral Postings

Ø  Accrual/Deferral: Contracts

Ø  Display Accrual/Deferral Results

Ø  Reversal of Accrual/Deferral Postings

Document Management

     You have three options for storing and managing documents for real estate objects:

—  Records Management

—  Document Management (DMS)

—  Business Document Navigator

INFORMATION SYSTEM

Reports for Master Data

In the Flexible Real Estate Management component, reports exist for the following master data:

•           Business entities

•           Buildings

•           Land

•           Rental objects

•           Occupancy of rental objects

•           Architectural objects

•           Object assignment 

Reports for Real Estate Contracts 

In the Flexible Real Estate Management component, reports for real estate contracts exist for the following characteristics:

•           Overview

•           Term

•          Security deposit agreements

•          Critical dates with reason

•          In the Flexible Real Estate Management component, the following reports for service charge settlement are available:

•           Current Settlement Periods per Settlement Unit

•           Itemization for Settlement Units

•           Meters for Settlement Units

•           Meters for Rental Objects

•           Reports for Settlement

•          Reports for Land Use Management

•          There are various reports available for Land Use Management (LUM) in the Flexible Real Estate Management (RE-FX_)_ component: You can run reports on the following master data objects:

•           Parcel

•           Parcel update

•           Land register

•           Joint liability

•           Notice of assessment 
Architecture View :

Technical view with master data based on architectural object types that you can define in Customizing.

RE Navigator

The RE Navigator serves as a single entrance for processing functions for all activities relevant to Flexible Real Estate Management