Business Entities
Definition
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.
Use
Business entities form part of the company code and group buildings and/or properties into coherent units.
Properties, buildings and the rental units 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.
Structure
General data / reference factors / values
You make assignments to administrative structures, location descriptions, profit center and business area, the valid tenancy law and the units of measurement that apply.
If you intend to carry out rent adjustments on Real Estate objects on the basis of the representative list of rents, you have to assign a representative list of rent to the business entity.
The parameters for calculating deductible input tax (option rates) in the rental process are based on German law.
Ownership structure
You assign owners to the business entities according to their ownership share. As an alternative, you can make detailed settings for each assigned building or property.
Business partner
In the partner management screen, you assign relevant people to the business entity, such as the responsible administrator, technician, or manager.)
Availability
Using the Real Estate objects, you can represent rental processes (objects in your own portfolio) as well as lease out processes (externally owned objects). A time-dependent indicator controls which objects are available for which processes.
Plant Maintenance / Project System / Controlling
You can influence other factors and values that may be beneficial for managing your real estate by assigning functional locations (Plant Maintenance PM component), elements of a work breakdown structure (Project System PS component) and internal orders (Controlling CO component) to Real Estate objects.