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

The system automatically creates a business entity as an internal Controlling object; in other words the business entity is also an account assignment object.

Properties, buildings and the rental objects derived from them are 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 (in other words, they should be built according to the same construction engineering standards with the same construction method and have the same fixtures and fittings).
• They should be used for similar purposes.

However the user is free to group business entities as required; the system does not impose any technical restrictions.

You make assignments to administrative structures, location descriptions, profit center and business area, the valid tenancy law and the units of measurement that apply.

The parameters for calculating deductible input tax (option rates) in the rental process are based on German law.

In the partner management screen (SAP Business Partner), you make assignments between owners and the relevant people for the business entity, such as the responsible administrator, technician, or manager.

Using the Real Estate objects, you can map rental processes (objects in your own portfolio) as well as lease-in processes (externally owned objects). A time-dependent indicator controls which objects are available for which processes.

The link to the Plant Maintenance (PM) component lets you create functional locations.

It is possible to link a business entity with an architectural object that already exists in the system.