Business Entity

Business Entity

Definition

The business entity (BE) groups together several factually linked economic goods. The business entity consists of:

One or more properties and/or
One or more buildings and/or
One or more rental units

Use

Properties, buildings, rental units are then ideally grouped together to form business entities if the following material requirements for creating a business entity are met:

They should have a common owner or at least be managed together.
They should be situated directly near each other and form an enclosed area.
There should not be any fundamental differences in their residential or usage value (built according to the same construction engineering standards, the same type or method of construction, and the same fixtures and fittings).
They should be used for similar purposes.

Structure

The business entity manages:

Ownership structure
Assignment to management structures
Responsible clerks, technicians, administrators or other business partners
Location descriptions
Tenancy law
Currency/measurement units

Integration

Asset Accounting (FI-AA)

You make the assignment of one or more assets to a business entity by specifying a common asset super number in the Asset Accounting master data.

Plant Maintenance (PM)

The link between the real estate objects (business entity, property, building and rental unit) is set up by means of the functional locations of Plant Maintenance.

Project System (PS)

You can assign the planned costs of a work breakdown structure to each real estate object (business entity, property, building and rental unit).

Controlling (CO)

You can define by means of a settlement rule how costs are settled.