refx

I nt n t r od o d uc uc t i on t o SA P Re a l Es t a t e Management Christian Mnich Solution Manager, SAP AG Rome, October 11, 2006

Real Estate Market Challenges & Trends Solution Overview Customer Cases & References Outlook & Further Information


R e a l Es E s t a t e B u s i n e s s Pr Pr o c e s s e s

Develop



Buy land



Find investors



Prepare development plan



Construct

Ensure funding



…

Use



Create architectural design



Maintain and repair buildings and equipments



Organize space and move management



Prepare and organize construction construction work



Manage lease and service contracts



Assign employees to rooms



Plan modernization and refurbishment



Manage events and meeting room reservation



…



...

Request building permits



Operate





Buy construction services and material …

I m p r o v i n g Co r e B u s i n e s s o f Pr o f e s s i o n a l Re a l Es t a t e M a n a g e r s

Office Center Managers Facility Managers Housing Companies

Land Developers

Real Estate Investment Trusts (REITs)

Shopping Center Managers

Pr o f e s s i o n a l R e a l Es t a t e M a n a g e r s : Pa i n Po i n t s

Facility Managers 

Optimize offer handling & standardize service processes



Reduce administrative costs & issue invoices promptly

Housing Authorities 

Standardize and manage contracts safely



Automate communication with tenants, service provider & banks

Real Estate Investment Trusts 

Portfolio transparency & detailed performance measurement



Support multiple national legal regulations

Shopping and Office Space Managers 

Optimize customer relationships



Increase efficiency of administrative processes

Pr o f e s s i o n a l Re a l Es t a t e M a n a g e r s : K e y Ch a l l e n g e s & T r e n d s

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

Op t i m i ze Co r p o r a t e Re a l Es t a t e M a n a g e m e n t

Airports

Insurance Banking

Public Services

Oil & Gas

Railways

Energy Suppliers

Postal Services

Telecommunication Retailers

Co r p o r a t e Re a l E s t a t e M a n a g e r s : Pa i n P o i n t s

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

Telecommunications and Utilities Companies 

Optimize lease-in of facilities for technical infrastructure

Co r p o r a t e Re a l Es t a t e M a n a g e r s : K e y Ch a l l e n g e s & T r e n d s

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

Pa i n p o i n t s Re c e n t e c o n o m i c d e v e l o pm e n t 

High vacancy levels in many commercial properties



Increased pressure to lower internal space costs



Need to offset declining results in other business areas

M a r k e t g l o b a l i za t i o n 

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

Em p h a si s o n c a p i t a l m a r k e t i n d e c i s i o n m a k i n g 

Benchmarking of maintenance and service charges between properties



Increased need to compare return on investment (ROI) of property



Necessity to achieve competitive risk-return ratio


Wh a t i s SA P Re a l Es t a t e M a n a g e m e n t ?

SAP Real Estate Management .. 

.. is an application that is made specifically for real estate business



.. is part of standard mySAP ERP



.. is made for professional real estate managers as well as for corporate real estate managers



.. includes about 15 years experience of SAP with real estate software



.. is available in it’s new version since mySAP ERP and R/3 Enterprise Extension Set 2.00



.. is already successfully used by customers in about 20 industries in more than 40 countries



.. supports globalization trend and growth into new markets

So l u t i o n M a p – SA P Re a l Es t a t e M a n a g e m e n t Portfolio Management

Commercial Real Estate Management Corporate Real Estate Management Technical Real Estate Management

Support Processes

Real Estate Analytics

Real Estate Search

Lease Management

Master Data Management

Condition Adjustment

Space Management

Partner Management

Percentage Rent Cost Recovery

Transaction Management

Third Party Management

Room Reservation

Legal Compliance

Move Management

Construction

Modernization & Refurbishment

Maintenance & Repair

Service Management

Accounting

Controlling

Tools

Integration to SAP Industry Solutions



Clear representation of core processes



Extensive application integration:

Real Estate Solution Map, Edition 2006

– Accounting processes such as third-party tenant receivables, landlord payables – Corporate cost accounting (Controlling) – Asset accounting, project management, and technical facility management processes (mySAP Product Lifecycle Management) – Integration to external systems – e.g., Graphical Information System (GIS), ComputerAided Design (CAD)/Computer-Aided Facility Management (CAFM) – Dynamic reporting possibilities (SAP Information System and SAP BI) 

Comfortable user interface



Customizing (flexibility)



Easy add-on development

Po r t f o l i o M a n a g e m e n t Portfolio Management



Partner Management


Portfolio Management helps you define your business' real estate infrastructure and manage business partner relationships. SAP Real Estate Management can help you do the following: 

Analytical tools to support you in strategic, tactical and operation decisions



Standard reports on costs, revenues, vacancies, measurements, contracts, conditions, maintenance and service costs and more



Defining flexible object structures according to architecture, usage and building services



Recording of property characteristics, fixtures, fittings and equipments



Entering master data to tailor your real estate infrastructure to accommodate primary business activities



Transparent views of your contractual partners



Mapping of processes concerning the acquisition and disposal of your assets

Co m m e r c i a l Re a l Es t a t e M a n a ge m e n t Commercial Real Estate Management

Real Estate Search

Lease Management




Legal Compliance

Commercial Real Estate Managers such as Shopping Center Managers, Housing Authorities and Facility Managers are looking for a solution to cover their core business based on an ERP solution. Their key challenge is to make technological adaptation work. SAP Real Estate Management provides them with:           

Matching vacant properties to prospect tenants Creating contract offers Managing lease and vendor contracts Monitoring lease deadlines and renewal options Carrying out rent adjustments Managing percentage rent agreements Calculating chargeable expenses, balances, advance payments, and adjustments Tracking settlement results Handling correspondence for rental processes Handling mandates and management contracts Supporting country specific legal requirements

Co r p o r a t e Re a l Es t a t e M a n a g e m e n t Corporate Real Estate Management

Space Management

Room Reservation

Move Management

Corporate Real Estate Managers such as Airports, Retailers and Public Services want to integrated the very important area of property management in the overall processes such as Controlling, Reporting and Financials. Their key challenge is to increase the space utilization, prevent budget violations, and user-friendly service management. SAP Real Estate Management provides them with: 

Comprehensive space management



Managing corporate portfolios



Assigning resources to spaces



Managing framework agreements



Reservation of objects and booking of additional services



Efficient move management



Improved options of cost allocation

T e c h n i c a l Re a l Es t a t e M a n a ge m e n t Technical Real Estate Management

Construction



Service Management

Technical Real Estate Management supports all processes related to building operations, including maintenance on rental objects, service management, the administration of available spaces, and building operations. SAP Real Estate Management can help you do the following: 

Conducting scheduled and unscheduled maintenance on your rental objects



Displaying costs in integrated reports



Assigning services to externals



Monitoring modernization and maintenance tasks



Handling malfunctions and problems reported via phone



Preparing and procuring good and external services



Managing available spaces



Maintaining space and rooms as graphical representations with CAD/CAFM systems

Su p p o r t Pr o c e s s e s Support Processes

Accounting

Controlling

Tools


Support processes help you in rental accounting and controlling activities. Additional processes additional Tools are available to create and manage correspondence and related documents with your business partners. SAP Real Estate Management can help you do the following: 

Periodic postings for real estate contracts and objects



Tenant account maintenance



Planning of costs and revenues



Settlement of costs incurred by real estate objects



Correspondence and document management for all real estate processes



Graphical depiction via integration to CAD/CAFM and GIS systems



Additional tools to adapt and enhance the SAP Real Estate Management solution to external systems and services



Integration to SAP Industry Solutions such as Public Sector Management

SA P Re a l Es t a t e M a n a g e m e nt c a n s u p p o r t y o u i n… Co m m e r c i a l Re a l Es t a t e M an ag em e n t    

Lease Management Condition Adjustments Cost recovery Percentage rent agreements

Pr o j e c t M a n a ge m e n t    

Planning Budgeting Execution Settlement

Co n t r o l l i n g Pr o c e s s e s 

T ec h n ic h a l Re al Es t a t e M an ag em e n t   

Service Management Modernization and Refurbishment Maintenance and Repair

Comprehensive Real Estate Controlling

Accounting   

Expediting procedure for overdue items Incoming payments Periodical postings

Re a l Es t a t e L i f ec y c l e Collect and analyze data

Optimize operational efficiency across all functions to improve overall business performance

Analyze performance

A Annaallyyzzee Revise strategies and (re)evaluate portfolio and investments

Control, analyze, and evaluate data and key figures

Perform operative and strategic planning of costs and revenues

Develop and optimize real estate portfolio

M Meeaassuurree

M Maannaaggee

Service Charge Settlement

Project Management Master Data Management

Technical Facility Management

O Oppeerraattee

Contract Management

Correspondence Condition Adjustment

Business Partner Management Rental Accounting

M a s t e r Da t a M a n a ge m e n t

Flexible object structure 

Usage view



Architectural view



Technical view

Dynamic rental spaces 

Pooled space



Rental space



Rental unit

Graphical link to CAD/CAFM systems Different usage scenarios 

Internal/external usage or rental



Multiple usage



Common usage

Grouping for easy handling and administration

M a s t e r Da t a M a n a g e m e n t : RE N a v i g a t o r

ONE central transaction – unified handling 

For all real estate objects (architecture, usage, contracts)



For creating, displaying, and editing



For resubmission



For reporting

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

Co n t r a c t M a na g em e n t

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

Comprehensive date and deadline management 

Predefined rules

Flexible conditions and calculation rules 

Dependent conditions



Condition purpose (actual, vacancy, market rent)

Integration 

Assignment of Central Business Partner



to Accounting and Controlling

Scale1:75

Bedroom 2

Living room

Bedroom 1

Co n t r a c t M a n a g e m e n t : T r a n s pa r e n c y Lease-in (vendor) Lease-in (vendor) Contract cleaning (vendor) (vendor) Contract-- cleaning Building 1

Contract elevatormaintenance maintenance (vendor) (vendor) Contract-- elevator Building 1 Building 1 Rental object 1

Sub-lease (customer) Sub-lease(customer) Rental object 2

Sub-lease (customer) Sub-lease(customer)

Contracts Objects

Rental object 3

Internal (cost center) center) Internallease lease(cost

Co n t r a c t M a na g em e n t

Lease Scale1:75

Living room

Term  Conditions  Notice/renewal  Key dates and diary functions  Distribution  Adjustment rules  Service charges  Document management 

Bedroom 2

Bedroom 1

Real estate object Partners Cost center/ order/project

Signature

Correspondence

ACTIVATE

Date

Processes Debit position  Payment  Open item management  Dunning  Real estate controlling 

Re a l Es t a t e Pr o c e s s e s

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

Re p o r t i n g i n SA P Re a l Es t a t e M a n a g e m e n t Information System 

For operative purposes



Reporting for Master Data, Measurements, Conditions, Contracts, Business Partners – Service Charge Settlement, Sales-Based Rent and Controlling –

Business Information Warehouse 

For management and cross-application reporting



Info cubes, roles, queries and workbooks



Reporting for Portfolio Performance, Occupancy and Vacancy Rates, Partner Performance – Costs and Revenues, Rent Revenue, Cash Flow –

Flexible reporting 

Easy to adapt



Easy access and exploration of information



Support on strategic, tactical and operational decisions



Reduction of costs through quicker decisions

Integration

Integration to mySAP ERP 

SAP Business Information Warehouse



SAP Accounting



SAP Controlling



SAP Business Partner



SAP Plant Maintenance/Customer Service



SAP Project System



SAP SmartForms/Adobe



SAP Document Management System/Records Management



SAP Workflow

Interfaces 

CAD, CAFM and GIS systems



Building control systems

H o w Ca n Y o u M a n a g e Y o u r Re a l Es t a t e M o r e Ef f i c i e n t l y U s i n g m y S A P ERP ?

SA P Re a l Es t a t e M a n a g e m e n t STRATEGIC BUSINESS INSIGHT

Increased transparency in your real estate portfolio helps you optimize your investment decisions.  Key figures and benchmarking increase efficiency in assessing performance. 

DIFFERENTIATION FOR TOP LIN E GROWTH

Leasing vacant space becomes simpler and faster.  Risk of lost rent revenue is reduced. 

PRODUCTIVITY AN D EFFICIENCY FOR BOT TOM LI NE GROWTH

Automation of contract management saves time and money.  User satisfaction increases while administrative costs in service management are reduced. 

FL EX I B I L I T Y T O ACT T ODAY



Management processes become more efficient thanks to ability to visually display complex real estate data.

Op t i m i ze d De c i s i o n -M a k i n g Co n t r a c t M a n ag e m e n t a n d L an d U s e M an a g em e n t , t o g e t h e r w i t h B u s i n e s s I nf o r m a t i o n Wa r e h ou s e , a l l ow y o u t o f u l ly t r a c k y o u r r e a l e s t a t e p or t f o l io .

STRATEGIC BUSINESS INSIGHT

Y o u r A d v an t a g e s  

 

Provides better overviews of your real estate portfolio. Data is always up-to-date, while precision and verifiability are enhanced. Decision-making processes are faster and more efficient. Your internal and external reporting become more uniform.

Ou r So l u t i o n 



Management of all master data related to valuation, from real estate contracts, the real estate cadastre, and the land register. Comprehensive reporting tools, predefined roles, queries, and workbooks.

I m p r o v e d Pe r f o r m a n c e M e a s u r em e n t B y d et e rm i n i ng k e y pe rf or m a n c e i nd i c a t o r s y ou c a n m e a s u r e p o rt f o l i o pe r f o r m a n c e a n d b e n e fi t f r o m b en c h m a r k i n g .



Key figures for your enterprise can be determined quickly and easily. Improves your ability to compare your own real estate portfolio with data on the real estate market.




Source: DID Deutsche Immobilien Datenbank GmbH (Germany)

Statistical key figures can be determined based on data from Controlling (CO) for real estate and of your real estate portfolio. This data can be tied into an external benchmark system for comparisons with market data.

Ef f i c i e n c y i n Pe r f o r m a n c e A s s e s s m e n t K e y i nd ic a t o rs p ro vi de y ou w i t h i np ut f or b e nc h m a r k i n g an d pe r f or m a n c e m a n a g em e n t .


Key figures for your enterprise can be determined quickly and easily. Improves your ability to compare your own real estate portfolio with data on the real estate market.





Statistical key figures can be determined based on data from Controlling for real estate and of your real estate portfolio. This data can be tied into an external benchmark system for comparisons with market data.

H i g h e r Fl e x i b i l i t y Fo r Co n t r o l l i n g Re p o r t s The new Controlling reports were created using SAP Query.

SAP Query offers a wide range of options for defining individual reports using various forms of reports, such as, basic lists, statistical reports and ranking lists. Using SAP Query, it is easy to adapt existing reports to meet your requirements or define completely new reports.


M o r e Se c u r e Re n t Re v e n u e s A c t i ve p a rt n e r m a na ge m e nt i nc r e as es t h e sec urit y of rent revenues. Offered Object

RE Search Request

Credit Check

Real Estate Search

DIFFERENTIATION FOR TOP LINE GROWTH

Contract Offer

SA P N e t w e a v e r

SAP R/3

Marketplace

SAP R/3

Credit Protection Agency

Y o u r A d v an t a g e s 

SAP R/3

Improved security for rent revenues.




Efficient partner management with links to Accounts Receivable and contract management. Data can be exchanged with credit protection agencies.

A u t o m a t i c Co n t r a c t M a n ag e m e n t U s in g c o m p r eh en si v e c o nt r a c t m a na ge m e n t , y ou c a n m a p c o m p l ex c o n t r a c t s a nd h an d l e f o l lo w -o n p r oc e s se s e f fi c i e nt l y . Specify contract conditions

Execute periodic posting

Process open items


  

Central mapping of relevant contract data, such as term of contract, conditions, posting terms, and option rates. Secure, simple, automated posting. Support for country-specific accounting standards. Simple-to-execute individual postings.

Post incoming payments

Clear items

PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LI NE GROWTH

Analyze tenant account

Ou t So l u t i o n 



 

Full reflection of all real estate contracts in the system, with integrated Account Payable and Accounts Receivable. Management of tenant accounts, including incoming payments, installment agreements, and clearing. Management of sales-based rent and security deposits. Integrated Controlling.

A c t i v e Se r v i c e M an a g e m e n t A u t o m a t i c s e rv ic e m a n ag e m e n t a s s i st s y o u i n o p t i m i zi n g p r o c e s s e s , r e d u c i n g c o s t s a n d i n c r e a s i n g user satisfac t ion. Tenant/User Create Service Agreement

Real estate manager

Request Service

Create Order

Accept Order


  

Standardizing and automating repetitive processes (from requesting service to settlement) increases speed and efficiency in handling services. You can better monitor costs and quality of services provided. Satisfaction of both users and tenants increases. Optimizing the physical facilities of your real estate becomes easier.


Service provider Report & Confirm Activities

Receive Credit Memo

Settle Order

Receive Service Charge Settlement






 

Purchasing management, including framework agreements with suppliers and service providers. Standardized processes using call centers for accepting service and repair requests from users or tenants. Option for fully electronic (paperless) handling of orders, from vendor credit memos to apportioning costs to users. Mobile asset management Budget planning, costs controlling, order monitoring

V i s u a l Di D i s p l a y o f Co C o m p l e x Da t a I n t e g r a t i o n w i t h CA C A D/ D /G I S s y s t e m s i n c r e a s e s t h e e f f ic i c i e n c y o f re re a l e s t a t e m a n a g e m e n t b y m a k i n g i t p o s s ib i b l e t o v i s ua u a l ly l y d i s p l ay ay c o m p l e x d a t a . Architectural or Cadastral Data

A

B

C

D

Contract Structure c t 1 a r r t C o n

Contract

C o n t r a c t 3 2

FLEXIBILITY TO ACT TODAY

Y o u r A d v an an t a g e s 

Visual display of complex data for controlling processes, reporting and analyses

O u r So So l u t i o n 

 

Management of architectural and cadastral data Contract and area management Bidirectional interfaces with open standard

Re d u c e d A m o u n t o f V a c a n t Sp a c e V ac a c a nc n c y r ep e p or o r t s a nd n d t h e Re R e al al E Es s t a t e Se S e ar ar c h a s s i s t y o u i n r e d u c i n g p e r i o ds ds of vacanc ies.


Y o u r A d v a nt nt a g e s   

Increased transparency for contract terms and vacancies. Earlier and faster re-rental of properties. Automatic update of real estate data when contract signed.

Ou r So l u t i o n  

 

Active vacancy management Real estate search functions, with the RE search request, offer, search and contract offer. Automatic transfer of offers to contract management. Option of integration with real estate marketplaces.

P r o c e s s Ex E x a m p l e : O p t i m i ze z e d Sp Sp a c e M a n a g e m e n t DIFFERENTIATION FOR TOP LINE GROWTH

Your Advantages 

Faster response to space requests



Save time & resources in contract management



Complete portfolio transparency User

Framework Agreement

Corporate Real Estate Manager Space Request

Space Search

Contract Offer

Expense Lease

Our Solution 

Comprehensive Master Data Management



Real Estate Search



Contract Management



Central Business Partner Management Management



Cost Allocation in Controlling

Owner Space Assignment

Rent Payment

Cost Allocation

Pr o c e s s Ex a m p l e : Re d u c e d V a c a n c i e s a n d Fa s t e r L e a s e -Ou t

Your Advantages   

Complete overview about vacancy periods Faster re-rental Process automation

Ou r So l u t i o n  


Full process support Automatic transfer of contract offers to contract management

Vacant space

Search

Request

Contract offer

Lease-out contract

On e -T i m e P o s t i n g s : I n t e r f a c e 

Easy-to-use interface



Complexity of postings not visible to end user



Templates in Customizing



Great amount of flexibility


I n pu t T a x T r ea t m e n t f o r Co n t r o l l i ng Ob j ec t s Input tax distribution for costs related to real estate, where the costs were posted to other objects such as, functional locations, CO orders, etc. Prerequisites  

The object must be linked to a real estate object. Examples – Maintenance orders can be linked indirectly to a real estate object by means of a functional location. – Internal orders and projects can be assigned directly to a real estate object.

When you execute input tax distribution for costs related to real estate on these objects, the same rules apply as for real estate objects themselves. You enter an option rate method on the assigned real estate object. The system uses this option rate method to determine the option rates.


Accrual/Deferral Accruals and Deferrals in Flexible Real Estate 

As part of period-end closing, the system uses the Accrual Engine to post accruals and deferrals to the correct periods for expenses and revenues from real estate contracts. (This function is now also available for Release ERP2004.)



The accrual/deferral functions in RE-FX can be used in these instances: – Deferral for vendor contracts with payment of rent in advance – Deferral for customer contracts with payment of rent in advance – Other payables (accruals) for vendor contracts with payment of rent in arrears – Other receivables (accruals) for customer contracts with payment of rent in arrears


Ea s i e r I n t e g r a t i o n t o I n d u s t r y So l u t i o n f o r Pu b l i c Se c t o r

This integration helps you benefit from unified open item accounting in Public Sector using RE-specific processes, while being able to transfer these documents to General Ledger Accounting. Processes 

Contract integration: At account assignment, you can distinguish between the real estate contract and the contract object by using the new sub application indicator.



Integration with partner management: Business partners with the internal role MKK can now be assigned to a real estate contract.



Integration of contract account: Depending on the contract type, you can assign existing contract accounts to the real estate contract, or you can create a new contract account.



Additions to posting term within the posting parameters: Fund, Funds Center, Commitment Item, Functional Area, Grant, and Measure


Si m p l i f i e d M a n a g e m e n t t h r o u g h V i zu a l i zu a t i o n I n t e g r a t i o n w i t h CA D/GI S s y s t e m s i n c r e a s e s t h e e f f ic i e n c y o f re a l e s t a t e m a n a g e m e n t b y m a k i n g i t p o s s ib l e t o v i s ua l ly d i s p l ay c o m p l e x d a t a . Architectural or Cadastral Data

A

B

C

D

Contract Structure c t 1 a r t C o n

Contract

C o n t r a c t 3 2



Visual display of complex data for controlling processes, reporting and analyses


 

Management of architectural and cadastral data Contract and area management Bidirectional interfaces with open standard (Business Application Programming Interfaces)

Ea s i e r a n d Fa s t e r A d a p t a t i o n o f So l u t i o n v i a St a n d a r d T o o l s

Your advantages 


Easy and fast adaptation and enhancements to customer-specific needs without modification

Our Solution 

Easy adaptation of user interface to role-specific needs via B u s i n e s s Da t a T o o l s e t (BDT)



Modification-free implementation of specific methods such as for calculation of conditions and other enhancements via B u s i n e s s A d d I n (BAdI)



Standardization of folder structures and management of various records per folder via SA P Re c o r d s M a n a g e m e n t



Easy management of all types of documents related to your property via SA P Do c u m e n t M a n a g e m e n t Sy s t e m



High-performing mass print for all types of application data via A d o b e Integration



Comfortable creation of single print documents or CO-Planning via M i c r o s o f t Of f i c e I n t e g r at i o n

Fl e x i b l e Ca l c u l a t i o n o f Co n t r a c t M a n a g em e n t Co n d it i o n s

In relation to the management contract, there are new methods for calculating and posting management fees: 

Amount per object, amount by rental status, amount per tenant changeover, share of condition group.



BAdI (Business Add In) for implementing your own custom procedure (RECD_CALC_RULE and RECD_DIST_RULE).



The new methods outlined above were already included in the logic of this BAdI.


Correspondence Starting with this Release, Adobe is the standard tool for correspondence. The following forms are available as PDFbased Adobe forms. 

Master Data and Contract – Master Data Summaries – Notice



Real Estate Search – Lease Abstract – Contract Offer



Accounting – Contract Account Sheet – Invoice – Dunning

   

Service Charge Settlement Sales-Based Rent Settlement Condition Adjustment Etc.

Old Forms as SAP Smart Forms  

As of SAP ECC 6.00, development is not continuing for the sample forms for SAP Smart Forms. However, customers can continue to use the sample forms and self-created forms.


A u d i t i n g : DA RT a n d A I S

Data Retention Tool (DART) for RE-FX 


Income tax laws in some countries require that the taxpayer retains certain financial documents related to the tax return in a sequential file format. – The Data Retention Tool (DART) assists you in meeting these legal requirements. – You can use this tool to extract and display master data and flow data in sequential files. – The data export also makes it possible for the data to be analyzed using external software.



The starting point for the extraction (in relation to RE) is normally the FI document. That means, the RE-specific data is extracted to a document that is suitable for "explaining" the document.

AIS (Audit Information System) for RE-FX   

AIS is a tool that allows an external auditor to check data in the SAP System. In this case, this involves accounting data generated by the Flexible Real Estate Management (RE-FX) component. The auditor receives (read) access to explanatory data related to accounting.

A u t o m a t i c M i g r a t i o n i n m y SA P ERP 2 0 0 5 Sy s t e m 1 : L i v e

Sy s t e m 2 : Pr o j e c t a n d T e s t S y s t e m

Classic RE Live System Project Start

Copy of Live System (e.g. 4.6C) Upgrade of Project System

Classic RE mySAP ERP 2005

Upgrade (Downtime) Migration (Downtime) Project End

Time

Upgrade of Live System

Classic RE / on mySAP ERP 2005 Live System RE-FX on mySAP ERP 2005

Import of Migration Decisions, Start Migration

RE-FX mySAP ERP 2005

Migration Programs, Decisions

A u t o m a t i c M i g ra t i o n : Co n st r a in t s 

Data migration from Classic RE to RE-FX is supported only after an upgrade to mySAP ERP 2005 (or higher) within the same system and the same client.



After the upgrade, you can continue to work with Classic RE until the right time for the actual migration (from your business perspective).



You are not allowed to create RE-FX data before the migration and until after it is completed.



Process data for completed processes is not migrated (such as, old service charge settlements). Only that part of the process data is migrated that is needed for followon processes (such as information on historical rent adjustments). Data from add-ons (COA, LUM, CRE) is excluded from automatic migration. This data can be migrated using BAPIs after the automatic migration. (A solution to be applied by consultants is planned.)


Cu s t o m e r Ca s e : I V G I m m o b i l i e n A G/Eu r o p e e y Ch a l l e n g e 

Implement a flexible, internationally usable software platform

r o j e c t Ob j e c i v e s 

Replace central, homegrown legacy solution



Achieve global rollout

e y Be n e fi t s 

Integrated business processes



Consistent data basis



Accelerated processes and data flows



Decentralized contract management



Ability to react more flexibly to future market requirements

Cu s t o m e r Ca s e : Co l o n i a l Fi r s t St a t e Pr o p e r t y e y Ch a l l e n g e s  Consolidation

of 2 parts of business – funds and corporate real estate

 Outsourced

property management

 Allocation

of occupancy expenses and management of external tenants

I m p l e m e n t a t i o n H i g hl i g h  Expansion

of software to manage consolidation of property expenses, revenues and incomes of Australian funds, the Commonwealth Bank, and property and fund management of its New Zealand business

e y Be n e fi t s  Increased

improvements in business efficiency and reporting

 Deployment

of system to external partners and clients

“Having a complete end-toend solution is a significant gain, which consequently leads to reduced costs, advance data integrity and greater profits.” Mr. B. Nicholls, Systems Executive, Colonial First State Property - Australia

Cu s t o m e r Ca s e : We l l s F a r g o Co r p o r a t e Pr o p e r t i e s G r o u p /U SA

e y Ch a l l e n g e s 

Streamline and automate management of extensive real estate portfolio



Improve visibility into building and space utilization at building level



Enhance effectiveness of lease administration and occupancy tracking



Increase charge-back capabilities for business units to bare cost of building expenses

e y Be n ef i t s 

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

“Wells Fargo will continue to expand aggressively and SAP Real Estate Management is critical to helping us manage that expansion.” Catherine Parkhurst, Business Systems Consultant, Wells Fargo Corporate Properties Group - USA

Cu s t o m e r Ca s e : T o r o n t o Di s t r i c t Sc h o o l B o a r d /Ca n a d a

e y Ch a l l e n g e s 

Create central support for external leasing of unused space



Integrate leasing processes of the seven regional boards

e y Be n ef i t s 

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

M o r e Re f e r e n c e s



Airports



Banks



Energy suppliers



Harbors



Insurance companies



Postal services



Public sector



Railways



Retailers

Pr o f e s s i o n a l R e al Es t a t e M a n a g e r Re f e r e n c e s



Facility Managers



Housing companies



REITs



Real estate companies



Shopping center managers


I m p o r t a n t SA P N o t e s

 443311

Release Strategy

 517673

Functions and Features

 771098

Country Availability

 690900

User Specific Enhancements

 828160

Migration Tools

N o t e s r e g a r d i n g SA P Re a l Es t a t e M a n a g e m e n t c a n b e d o w n l o a d e d v i a h t t p ://s e r v i c e .s a p .c o m /n o t e s

Education

Two standard trainings are available 

AC 290 for Classical Real Estate based on R/3 Enterprise 4.6c (5 days)



AC 295 for Flexible Real Estate based on mySAP ERP 2004 (5 days)



Trainers – Nigel Adams – Dirk Breitinger – Annemiek van Enk (Avecres) – Heike Fiedler-Phelps – Melinda Guppy – Alexander Kraft – Dmitri Miagkov – Leo Sweerts (Smart Solutions) – Sabine Toman – Peter Werner

– Et al. SAP Service Marketplace: http://service.sap.com/education

Co u n t r y A v a i l a b i l i t y w i t h m y SA P ERP 2 0 0 5

For more information on the availability of SAP Real Estate Management for specific countries please check availability http://service.sap.com/re and read SAP Note 771098.

Co u n t r y A v a i l a bi l i t y a n d L o c a l i za t i o n Flexible Real Estate Management is localized on a country basis in an initiative with the responsible SAP Subsidiary. The Flexible Real Estate solution in mySAP ERP 2005 is currently released for the following countries, and available in the following languages. Further localization are planned*. Please read also SAP Note 771098. Released Austria, Belgium, Canada, Germany, Israel, Italy, The Netherlands, Switzerland, United Kingdom, USA Languages German, English, Dutch, French, Czech, Finnish, Italian, Japanese, Portuguese, Russian Current Localization Plans* Japan, Poland, Portugal, Russia, Switzerland * The release planning for delivery of localized functionality is still to be concluded. With this planning SAP is not obliged to complete localization. SAP has the right to change these plans.

L e g a l Co m p l i a n c e f o r M o r e Co u n t r i e s 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

L a n g u a g e s a n d Re l e a s e s

Please also read note: 771098 SAP Service Marketplace: service.sap.com/re

Availability

m y S A P ERP 2 0 0 5 I s t h e G o -T o Re l e a s e Pr o v i d es a l o n g -t e r m f o u n d a t i o n f o r e x c e l l e n c e a n d i n n o v a t i o n



300+ functional enhancements



Enterprise services enabled



Dramatic user experience improvements



Delivers 28 configurable industry solutions

Continuous Innovation

I n t r o d u c i n g … En h a n c e m e n t Pa c k a g e s M o r e in n o v a t i o n , m o r e q u i c k l y , m o r e a c c e s s i b l e t o c u s t o m e r s

2006

2007

2008

2009

2010

Areas of innovation

Enterprise Services

Industry-specific capabilities Talent Management

  

Functional enhancements Technical enhancements Enterprise services

Financial Collaboration

Optional Adoption

En h an c e m e n t Pa c k a g es De l i v e ri n g n ew c a p a b i l it i e s a l o n g w i t h c r i t i c a l up d a t e s

En h an c e m e n t Pa c k a g es Optional

Enterprise Services

Switch Framework New/Improved Functionality

Su p p o r t P a c k a g e s

Legal/Tax Changes, Corrections

Mandatory

N e w Re l e a s e St r a t e g y St a b i l i zi n g t h e c o r e w h i l e d e l iv e r i ng c o n t i n u o u s i n n o v a t i o n

2006

2007

2008

2009

Enhancement Packages

mySAP ERP 2005

2010

Next Major ERP Release

SAP NetWeaver

m yS A P ERP 2 0 0 5 i s t h e Go -To Re l e a s e f o r SA P R/3 C u s t o m e r s .

Re l e a s e St r a t e g y SA P Re a l Es t a t e M a na g e m e n t SAP R/3

SAP R/3

SAP R/3

4.6c

Enterprise 4.7*1.10

Enterprise 4.70*2.00

mySAP ERP 200 4

mySAP ERP 200 5

Enhancement Pa c k a ge s f ür m ySAP ERP 2005

Corporate Use Residential Use

Basics

Commercial Use

Start of availability

Pilots

Flexible Real Estate Migration

Migration

Classic Real Estate End of availability

M a i nt e n an c e St r a t e g y

m ySAP ERP 2005

RampUp

m ySAP ERP

RampUp

2004

SAP R/3 Enterprise

RampUp

SAP R/3 3 .1 I – 4 .6 B

c e D

Extended Maint. (17% + 2%)

2003

Extended Maintenance (17% + 4%)


c e D

2004



Mainstream Maintenance

Mainstr. Maint.

2002




SAP R/3 4.6C

c e D

2005

r a M

2006






CustomerSpecific Maintenance

Customer-Specific Maintenance




c e D

2007

c e D

2008

r a M

2009

c r e a D M

2010

r a M

r a M

2011

2012

This strategy is also valid for all Industry Add-Ons based on the releases above.

r a M

2013

r a M

2014

SA P Re a l Es t a t e M a n ag e m e n t – Fu t u r e H i g hl i g h t s Portfolio Management

Commercial Real Estate Management Corporate Real Estate Management Technical Real Estate Management

Support Processes


Real Estate Search

Lease Management



Space Management

Partner Management


Room Reservation



Legal Compliance

Move Management

Construction



Service Management

Accounting

Controlling

Tools


Outlook

Commercial Real Estate 

Different currency in contract conditions



Rent adjustment according to cost efficiency analysis **)



Correction items for input tax distribution **)

Corporate Real Estate Management 

Multiple use of common space



Move Management



Room Reservation

Industries 

Public Sector Integration*

Integration

*) **)



First steps towards Enterprise Service Architecture



CAD/GIS Interfaces



DUET – Integration of Room Reservation in MS Outlook Meeting Request

Please observe that SAP can not provide any binding statements regarding new features in SAP Real Estate Management in release mySAP ERP 2007 at this time. More precise information will be published at a later date. According to German law only

I n c r e a s e d V al u e t o Y o u r Pr o p er t y Po r t f o l i o - Ex e c u t i v e Su m m a r y

SAP Real Estate Management supports p r o f e s s i o n al r e a l e s t a t e m a n a g e r s as well as c o r p or a t e r e a l es t a t e m a n a g e r s . With mySAP ERP SAP Real Estate Management provides important enhancements for m o r e u s a bi l it y , e n h an c e d p r oc e s s i nt e g r at i o n and a d d i t i o n a l s c e n a r i o s u p p o r t . SAP Real Estate Management in mySAP ERP - Why should you upgrade now? 

M o r e e f f ic i e n c y a n d p r od u c t i v it y



I n c r e a s e d t r a n s p a r en c y



En h a nc e d p r o c e s s i n t e g r a t i o n



Di f f er e n t i a t i o n in c o m p e t i t i o n



I n c r e a s e d v a lu e o f p r o p e r t y p o r t f o l i o

Contacts Christian Krämer Director Solution Management SAP Real Estate Management SAP AG [email protected] Franz Wilhelm Kehrein Solution Manager SAP Real Estate Management SAP AG [email protected]

Christian Mnich Solution Manager SAP Real Estate Management SAP AG [email protected]

I n t e r n a t i o n al Co n t a c t s (s e r vi c e .s a p.c o m /r e



Contacts)

refx

Recommend Documents