Real Estate Management (RE) 

Purpose

The Real Estate Management scenario describes the processes involved in managing and renting real estate. The main activities are:

The Real Estate Management component is integrated with the following components: Financial Accounting, Cash Management, Controlling, Asset Accounting, Plant Maintenance and Project System.

Prerequisites

To use the SAP RE (SAP Real Estate) component, you need to install the following R/3 components:

Depending on the functions you require, you may install the following additional components:

Required function

Required component/subcomponent

Planning and execution of planned or unplanned maintenance, modernization measures or new development in the real estate area

Plant Maintenance (PM)

Ordering materials required for plant maintenance tasks on real estate objects

Materials Management (MM)

Planning complex maintenance and investment measures with high risk factors

Project System (PS)

Value-based management and treatment of fixed assets

Asset Accounting (FI-AA)

Internal control function via profit center

Profit Center Accounting (EC-PCA)

Process Flow

  1. Create the master data required, such as business entity, building, property and rental unit. Determine the master data required for service charge settlements.
  2. The rental process covers all activities involved, from receipt of the rental request through automatic assignment to vacant rental units and creating an offer up to the lease-out itself. Here you have to differentiate between internal and external usage.
    If you opt for sales tax for your commercial real estate, the system automatically determines the input tax and divides it into deductible and non-deductible portions during input tax processing.
  3. You use the lease-in processes if the objects you are renting are not entirely in your own real estate portfolio. Using the lease-in, you map the agreed recurring or one-time payments. You can assign other vendor contracts defining, for instance, suppliers and services to lease-ins. Resubmission rules help you check the contract structure once or periodically (for example, three months before contract end or once a year).
  4. Rental accounting incorporates processes related to posting activities. The main functions here are the debit position (for lease-outs) and periodic posting (for lease-ins), incoming payments, dunning and account maintenance.
  5. You carry out the service charge settlement. Apportionable operating and heating expenses are settled against the advance payments made and then adjusted accordingly. If heating expenses are settled using an external company, data is exchanged by means of DME tapes.
  1. You then plan the implementation of rent adjustments. The system supports your rent adjustments with the generally used adjustment methods as well as your own user-defined adjustments:
  1. The system supports your balance sheet preparations by offering accrual/deferral functions for selected periods.
  2. If you manage the rented object on behalf of a third party, a management contract regulates the relationship between you, as manager, and the owner. The related processes are mapped in the third-party management function.

Result

SAP RE is a tool that helps you manage your real estate activities successfully.