SAP Real Estate Management 101 PDF
SAP Real Estate Management 101 PDF
SAP Real Estate Management 101 PDF
Management 101
Heike Fiedler-Phelps
Platinum Consultant, SAP America
Functional Overview
Key Benefits of SAP Real Estate
Management
A successful project
Introductions
Heike Fiedler-Phelps
Platinum Consultant
M +1/206/370 1618
E heike.fiedler-phelps@sap.com
How much you’ve worked with SAP What your professional background is
What real estate area you’re in (commercial, public sector, residential, corporate)
Functional Overview
Key Benefits of SAP Real Estate
Management
A successful project
SAP Real Estate Management
mySAP ERP
mySAP ERP
Application
RE Classic
SAP NetWeaver SAP NetWeaver
SAP Basis SAP Basis SAP Web SAP Web SAP Web SAP Web
Application Application Application Application
Server Server Server Server
Technology
People People
Integration Integration
Information Information
Integration Integration
Process Process
Integration Integration
Portfolio Management Real Estate Analytics Master Data Management Partner Management Transaction Management
Commercial Real Estate Real Estate Lease Condition Third Party Legal
Percentage Rent Cost Recovery
Management Search Management Adjustment Management Compliance
Key Challenges*
Adapt technology
Improve workforce development
Face business competition
Optimize risk management
Market Trends
Augmented portfolio diversity through market globalization
Increased market consolidation
Higher dependency on capital markets
Higher awareness for legal compliance
* Source: IREM Institute of Real Estate Management: Transforming Real Estate Management: Four
Strategic Issues 2006
Airports
Insurance
Banking
Energy Suppliers
Public Services
Oil & Gas
Airports
Manage plenty of percentage rent agreements
Repair & maintain highly-technical facilities
Financial Services
Manage headquarters and local affiliates
Public Services
Create portfolio transparency & complete master data
Optimize space utilization & reduce service costs
Retail Companies
Professionalize land development & transaction management
Increase level of process automation
Key Challenges *)
Provide optimized real estate services
Increase space utilization
Raise revenues with third parties
Decrease operative costs
Market Trends
Higher interest for real estate management at c-level
Increased need to integrated to other corporate departments
Demand for space changes more often
Increased cost pressure
* Source: Feedback from SAP customers
Market globalization
Expansion of subsidiary network to new markets
Manage more complex property portfolios and real estate activities
Mergers and/or redistribution of property portfolios according to
changes in company structure
….
User-specific views
Worklist
User-dependent object list
Favorites list
Explorer functions
Display of the hierarchical dependencies
Direct call, context-sensitive direct link (forward, backward)
History of previously selected objects
Flexibility
Use contract as vendor and customer contract
Use contract for lease and non-lease real estate activities
Assignment of various rental objects to one contract
Generate rental objects when contract is created
Integration
Assignment of Central Business Partner
to Accounting and Controlling
Lease-in
Lease-in (vendor)
(vendor)
Contract
Contract -- cleaning
cleaning(vendor)
(vendor)
Building 1
Contract
Contract -- elevator
elevator maintenance
maintenance(vendor)
(vendor)
Building 1
Building 1
Rental object 1
Sub-lease
Sub-lease(customer)
(customer)
Rental object 2
Sub-lease
Sub-lease(customer)
(customer)
Rental object 3
Contracts
Objects Internal
Internallease
lease(cost
(costcenter)
center)
Lease
Scale1:75 Living
room
Bedroom Bedroom
z Term
z Conditions
2 1
z Notice/renewal
z Key dates and diary
Real estate object functions
Correspondence
z Distribution
Partners z Adjustment rules
ACTIVATE
z Service charges
Cost center/ z Document management
order/project
Signature Date
Processes
z Debit position
z Payment
z Open item management
z Dunning
z Real estate controlling
Automated processes
Periodic Posting of contract conditions
Adjustment of Conditions
Service Charge Settlement
Sales-Based Rent Settlement
Correspondence
Rule-based
Conditions can be dependent on existing conditions
Condition adjustment rules can be predefined and reused
Mass execution
Periodic postings and payments are generated and integrated in
Accounting and Controlling
Sales-based rent settlement and service charge settlement can be
executed for many contracts simultaneously
Processes can be simulated and executed step-by-step and reversed
Correspondence can be generated for all objects or contracts
© SAP America 2006, SAP Real Estate 101 / Heike Fiedler-Phelps
Reporting in SAP Real Estate Management
Information System
For operative purposes
Reporting for
– Master Data, Measurements, Conditions, Contracts, Business Partners
– Service Charge Settlement, Sales-Based Rent and Controlling
Flexible reporting
Easy to adapt
Easy access and exploration of information
Support on strategic, tactical and operational decisions
Reduction of costs through quicker decisions
Interfaces
CAD, CAFM and GIS systems
Building control systems
Functional Overview
Key Benefits of SAP Real Estate
Management
A successful project
What is SAP Real Estate Management?
Portfolio Management Real Estate Analytics Master Data Management Partner Management Transaction Management
Commercial Real Estate Real Estate Lease Condition Third Party Legal
Percentage Rent Cost Recovery
Management Search Management Adjustment Management Compliance
Portfolio Management Real Estate Analytics Master Data Management Partner Management Transaction Management
Commercial Real Estate Real Estate Lease Condition Third Party Legal
Percentage Rent Cost Recovery
Management Search Management Adjustment Management Compliance
STRATEGIC
Contract Management and Land Use Management, BUSINESS INSIGHT
STRATEGIC
By determining key performance indicators you BUSINESS INSIGHT
STRATEGIC
Key indicators provide you with input for BUSINESS INSIGHT
STRATEGIC
The new Controlling reports were created using SAP Query. BUSINESS INSIGHT
SAP Netweaver
Credit
Marketplace Protection
Agency
FLEXIBILITY TO
Integration with CAD/GIS systems increases the ACT TODAY
Con
A B tra ct 1 data for controlling
C on processes, reporting and
trac
analyses
C D
t2
Contract 3 Our Solution
Management of
architectural and
cadastral data
Contract and area
management
Bidirectional interfaces
with open standard
Vacancy reports and the Real Estate Search FOR TOP LINE
GROWTH
Our Solution
Comprehensive Master Data Management
Real Estate Search
Contract Management
Central Business Partner Management
Cost Allocation in Controlling
DIFFERENTIATION
Vacant space
Request
FLEXIBILITY TO
Integration with CAD/GIS systems increases the ACT TODAY
Con
A B tract 1 data for controlling
Con processes, reporting and
trac
analyses
C D Our Solution
t2
Contract 3
Management of
architectural and
cadastral data
Contract and area
management
Bidirectional interfaces
with open standard
(Business Application
Programming Interfaces)
FLEXIBILITY TO
Your advantages ACT TODAY
Our Solution
Easy adaptation of user interface to role-specific needs via Business
Data Toolset (BDT)
Modification-free implementation of specific methods such as for
calculation of conditions and other enhancements via Business Add In
(BAdI)
Standardization of folder structures and management of various records
per folder via SAP Records Management
Easy management of all types of documents related to your property via
SAP Document Management System
High-performing mass print for all types of application data via Adobe
Integration
Comfortable creation of single print documents or CO-Planning via
Microsoft Office Integration
Key Challenge
Implement a flexible, internationally
usable software platform
Project Objectives
Replace central, homegrown legacy
solution
Achieve global rollout
Key Benefits
Integrated business processes
Consistent data basis
Accelerated processes and data flows
Decentralized contract management
Ability to react more flexibly to future
market requirements
Key Challenges
“Having a complete end-to-
Consolidation of 2 parts of business – end solution is a significant
funds and corporate real estate
gain, which consequently
Outsourced property management
leads to reduced costs,
Allocation of occupancy expenses and advance data integrity and
management of external tenants
greater profits.”
Implementation Highlights
Expansion of software to manage Mr. B. Nicholls, Systems
consolidation of property expenses, Executive, Colonial First State
revenues and incomes of Australian Property - Australia
funds, the Commonwealth Bank, and
property and fund management of its
New Zealand business
Key Benefits
Increased improvements in business
efficiency and reporting
Deployment of system to external
partners and clients
Key Benefits
Increased awareness by business units of
expenses, resulting in cost reductions
Improved utilization of assets and
enhanced revenue opportunities
Greater visibility into corporate physical
assets
© SAP America 2006, SAP Real Estate 101 / Heike Fiedler-Phelps
Customer Case: Toronto District School Board/Canada
Key Challenges
Create central support for external
leasing of unused space
Integrate leasing processes of the
seven regional boards
Key Benefits
Increased revenue from external
leasing of unused space
Streamlined property maintenance
Standardized real estate management
processes
Integrated real estate processes with
other departments and systems
Improved support for long-term goals
Airports
Banks
Energy suppliers
Harbors
Insurance companies
Postal services
Public sector
Railways
Retailers
Facility Managers
Housing companies
REITs
Heike Fiedler-Phelps
Principal Consultant, SAP America
Current Situation (Corporate space)
Utilization of Space
– Inefficient utilization of office space due to lack of knowing vacant office space at any time -
need to easily locate/report/assign office/residential space as quick as possible. Space
capturing is done manually (via physical survey) rather than having a reliable database
– CB&OS does not manage/have total control of office spaces- office spaces is assigned
directly to the proponent organizations to manage. No true checks and balances.
– Charging back the usage of space to the proponent is impossible (there was never an
appropriate mechanism in place); as a result, the proponent subconsciously do not pay
attention of utilizing the office space efficiently.
Space Planning
– Manually collecting office space requirements in a annual basis – too many people from
various organizations involved, time consuming, often inaccurate.
– Buildings owned by different groups, no consolidated tracking across ownership borders.
This results in inaccurate space need communication.
– Lack of graphical planning tools based on architectural view model makes allocating and
assigning space a long, inefficient process
– Not being able to utilize the corporate strategic manpower planning software (SAP SEM) for
short/long term planning for space. No inclusion of space planning into corporate strategic
planning. Results in uncoordinated decision making, operational rather than strategic focus.
Multiple systems/applications
– Continued use of obsolete solutions
– Fragmented and not integrated systems and databases. They are not easy to maintain.
Many technologies (and skills) to support (current development environment conflicts with
IT strategic direction). Corporate direction: IT will provide, maintain, and support solutions.
$$$$$$$$$$$$
– Lack of database integration to the CAD systems requires to load the architecture
information of new properties manually or develop new interfaces. Not accessible by other
departments, requires additional administrative effort, resulting in multiple databases and
disconnected processes.
– Only partial information of properties is maintained in each system.
– The current applications/systems do not automate the whole business processes of CB&OS
(no end to end process flow, disconnected and fragmented processes). Critical business
processes are still performed manually or using excel spreadsheet (violates auditing
requirements).
– Only provide very simple/basic operational/management reports
– Do not provide reports to other groups/proponent organizations without involving CB&OS,
adding to administrative workload of CB&OS.
– Decommission of mainframe will threaten current operations (CB&OS still relies on EIS and
other legacy systems)
– Data redundancy such as employee address, location names
Residential Properties
What is your real estate strategy? How does it tie in with your corporate strategy?
Reporting
Reporting is expensive as extensive interfaces are needed
Integrated reporting not available
Reports cannot be distributed automatically to other departments,
resulting in additional effort for CB&OS
Functional Overview
Key Benefits of SAP Real Estate
Management
A successful project
Your project
During
After
Extras
Before
During
After
Extras
Requirement analysis
Process description
Business Processes
Managing Contracts in SAP RE (ERP078)
Managing Sales-Based Leases (ERP079)
Service Charge Settlement (ERP080)
Adjustment of Conditions (ERP077)
SAP Solution Manager Version for mySAP ERP 2004 - ST ICO 140
Architecture vs Usage
Measurement types
Contract types
Usage types
Condition types
Best practices
OPTIONAL
Scenario:
The customer has to pay property tax for all owned
properties or buildings on a regular basis
Assumptions
The city fixes the property tax for each building / property
The fixed amount is valid until the city sends a new tax notification
Idea
Use the contract and the calculation of conditions (instead of recurring
documents) to calculate and post the property tax
Make the system handle the resulting periodical
postings:
Customizing:
Set up a contract type “Property Tax”. Main Partner Role Contract Partner is the
city (vendor)
Set up a measurement type “Tax Base” valid for property and/or buildings
Set up a condition type “Property tax” which is for vendor postings. Calculation
rule is “Measurement” with fixed measurement type “Tax Base”
Settings – offerer / user, internal / external / GL, partner, screen design, objects,
condition group, number range
RS RS
Office Storage
Pooled space
General Admin RS RS
Meeting room Training Area
Before
During
After
Extras
Service Marketplace
SAPspeak 101
Helpful transactions
Helpful notes
RE-FX Tables
http://service.sap.com
SAPTerm
Online and in-system access
All SAP terminology as created and maintained by SAP terminology
professionals
Use for your own project
What does it mean in which solution?
http://help.sap.com
-> Additional Information
-> Terminology
-> Glossary
OR
Transaction STERM
RE-FX Menus:
RECAMENUAPPL Application menu
RECAMENUDEV Technical menu
RECACUST IMG for RE-FX
BAPIs: BAPI, then select filter "ALL" (also unreleased) for general list
BADIs: SE18
Function Modules (-> APIs -> BAPIs): SE37
Roles: PFCG
BW data sources for RE-FX: RSA5, then go to REFX_ROOT
Consulting solutions:
739860 Data migration from legacy system
827025 Classic: Multiple vendor solution
FLEXIBILITY TO
Your advantages ACT TODAY
Our Solution
Easy adaptation of user interface to role-specific needs via Business
Data Toolset (BDT)
Modification-free implementation of specific methods such as for
calculation of conditions and other enhancements via Business Add In
(BAdI)
Standardization of folder structures and management of various records
per folder via SAP Records Management
Easy management of all types of documents related to your property via
SAP Document Management System
High-performing mass print for all types of application data via Adobe
Integration
Comfortable creation of single print documents or CO-Planning via
Microsoft Office Integration
BDT
used to put the dialogs together, tying Function Modules, Field Groups together to form
views, screens, screen sequences etc. and is found under “dialog” in the RE Flex IMG for
each object. Create your own screen sequences, using the standard Field Groups to produce
your own displays.
Also associated with BDT are lower level code-building tools referenced as Events and
Tables in the IMG “Dialog” section. These are for custom routines and are technical in
nature.
BAdI
used to build Substitutions and Validations and UDF Fields in the standard tables or append
structures to the standard tables, and is found under “Implementation Enhancements “ in the
IMG under each RE object. Changes using the BADI Builder (SE18) would be similar to User
Exits in that they are guaranteed to be upgrade compatible by SAP.
BAPIs
Interfaces to get data into the system, out of the system, and to exchange data. This can be
done with external systems, but you can also address the BAPIs via internal programs (SAP
programs, or customer specific ones).
Before
During
After
Extras
Networking
Central transaction for all master data and most reporting: RE80
Use Sets
ASUG RE SIG
System implementers
SAP
/note , /message
Personal relationships
Released
Languages
Austria
Condition adjustment
– “main rent statement” for residential contracts
– “fifteenths” for commercial contracts
Summarization of tax lines
Italy
Imposta Comunale sugli Immobili (county tax)
Imposta di Registro (registration tax)
Imposta di Bollo (stamp tax)
Summarization of tax lines
Switzerland
Correspondence based on Swiss tenancy law
External heating expenses settlement
Lease-in with ISR
Calculation of fuel consumption
Rent adjustment according to Swiss law
Portugal/Spain
Withholding tax
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be
changed without prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.
Microsoft, Windows, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.
IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iSeries, pSeries, xSeries, zSeries, System i, System i5, System p,
System p5, System x, System z, System z9, z/OS, AFP, Intelligent Miner, WebSphere, Netfinity, Tivoli, Informix, i5/OS, POWER, POWER5, POWER5+, OpenPower and PowerPC are
trademarks or registered trademarks of IBM Corporation.
Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries.
Oracle is a registered trademark of Oracle Corporation.
UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.
Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.
HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology.
Java is a registered trademark of Sun Microsystems, Inc.
JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.
MaxDB is a trademark of MySQL AB, Sweden.
SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered
trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies.
Data contained in this document serves informational purposes only. National product specifications may vary.
The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior
written permission of SAP AG.
This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments,
and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this
document is subject to change and may be changed by SAP at any time without notice.
SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items
contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability,
fitness for a particular purpose, or non-infringement.
SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This
limitation shall not apply in cases of intent or gross negligence.
The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in
these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages.