Introduction to SAP Real Estate Management
Christian MnichSolution Manager, SAP AG
Rome, October 11, 2006
Outlook & Further Information
Real Estate Market Challenges & Trends
Solution Overview
Customer Cases & References
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Real Estate Business Processes
Construct
Create architectural designPrepare and organize construction workBuy construction services and material…
Develop
Buy landFind investorsPrepare development planRequest building permitsEnsure funding…
Operate
Maintain and repair buildings and equipmentsManage lease and service contractsPlan modernization and refurbishment…
Use
Organize space and move managementAssign employees to roomsManage events and meeting room reservation...
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Improving Core Business of Professional Real Estate Managers
Shopping Center Managers
HousingCompanies
Office Center Managers
Real Estate Investment Trusts (REITs)Land Developers
FacilityManagers
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Professional Real Estate Managers: Pain Points
Facility ManagersOptimize offer handling & standardize service processesReduce administrative costs & issue invoices promptly
Housing AuthoritiesStandardize and manage contracts safelyAutomate communication with tenants, service provider & banks
Real Estate Investment TrustsPortfolio transparency & detailed performance measurementSupport multiple national legal regulations
Shopping and Office Space ManagersOptimize customer relationshipsIncrease efficiency of administrative processes
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Professional Real Estate Managers: Key Challenges & Trends
Key Challenges*Adapt technologyImprove workforce developmentFace business competitionOptimize risk management
Market Trends Augmented portfolio diversity through market globalizationIncreased market consolidationHigher dependency on capital marketsHigher awareness for legal compliance
* Source: IREM Institute of Real Estate Management: Transforming Real Estate Management: Four Strategic Issues 2006
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Optimize Corporate Real Estate Management
Oil & Gas
Telecommunication
Insurance
Postal Services
Public Services
RetailersRailways
Energy SuppliersBanking
Airports
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Corporate Real Estate Managers: Pain Points
AirportsManage plenty of percentage rent agreementsRepair & maintain highly-technical facilities
Financial ServicesManage headquarters and local affiliates
Public ServicesCreate portfolio transparency & complete master dataOptimize space utilization & reduce service costs
Retail CompaniesProfessionalize land development & transaction managementIncrease level of process automation
Telecommunications and Utilities CompaniesOptimize lease-in of facilities for technical infrastructure
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Corporate Real Estate Managers: Key Challenges & Trends
Key Challenges *)Provide optimized real estate servicesIncrease space utilizationRaise revenues with third partiesDecrease operative costs
Market TrendsHigher interest for real estate management at c-levelIncreased need to integrated to other corporate departmentsDemand for space changes more oftenIncreased cost pressure
* Source: Feedback from SAP customers
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Pain points
Recent economic developmentHigh vacancy levels in many commercial propertiesIncreased pressure to lower internal space costsNeed to offset declining results in other business areas
Market globalizationExpansion of subsidiary network to new marketsManage more complex property portfolios and real estate activitiesMergers and/or redistribution of property portfolios according to changes in company structure
Emphasis on capital market in decision makingBenchmarking of maintenance and service charges between propertiesIncreased need to compare return on investment (ROI) of propertyNecessity to achieve competitive risk-return ratio
Outlook & Further Information
Real Estate Market Challenges & Trends
Solution Overview
Customer Cases & References
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What is SAP Real Estate Management?
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
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Real Estate Solution Map, Edition 2006
Solution Map – SAP Real Estate Management
Clear representation of core processesExtensive application integration:
– 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), Computer-
Aided Design (CAD)/Computer-Aided Facility Management (CAFM)– Dynamic reporting possibilities (SAP Information System and SAP BI)
Comfortable user interfaceCustomizing (flexibility)Easy add-on development
Portfolio Management Real Estate Analytics Master Data Management Partner Management Transaction Management
Commercial Real Estate Management
Real Estate Search
Lease Management
Condition Adjustment Percentage Rent Cost Recovery Third Party
ManagementLegal Compliance
Corporate Real Estate Management Space Management Room Reservation Move Management
Technical Real Estate Management Construction Modernization &
Refurbishment Maintenance & Repair Service Management
Support Processes Accounting Controlling Tools Integration to SAP Industry Solutions
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Portfolio Management
Portfolio Management helps you define your business' real estateinfrastructure 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 decisionsStandard reports on costs, revenues, vacancies, measurements, contracts, conditions, maintenance and service costs and moreDefining 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
Portfolio Management Real Estate Analytics Master Data Management Partner Management Transaction Management
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Commercial Real Estate Management
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 isto make technological adaptation work.
SAP Real Estate Management provides them with:
Matching vacant properties to prospect tenantsCreating contract offersManaging lease and vendor contractsMonitoring lease deadlines and renewal optionsCarrying out rent adjustmentsManaging percentage rent agreementsCalculating chargeable expenses, balances, advance payments, and adjustmentsTracking settlement resultsHandling correspondence for rental processesHandling mandates and management contractsSupporting country specific legal requirements
Commercial Real Estate Management
Real Estate Search
Lease Management
Condition Adjustment Percentage Rent Cost Recovery Third Party
ManagementLegal Compliance
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Corporate Real Estate Management
Corporate Real Estate Managers such as Airports, Retailers and Public Services want to integrated the very important area of propertymanagement in the overall processes such as Controlling, Reporting and Financials. Their key challenge is to increase the space utilization, preventbudget violations, and user-friendly service management.
SAP Real Estate Management provides them with:
Comprehensive space managementManaging corporate portfoliosAssigning resources to spacesManaging framework agreementsReservation of objects and booking of additional servicesEfficient move managementImproved options of cost allocation
Corporate Real Estate Management Space Management Room Reservation Move Management
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Technical Real Estate Management
Technical Real Estate Management supports all processes related to building operations, including maintenance on rental objects, servicemanagement, the administration of available spaces, and buildingoperations.
SAP Real Estate Management can help you do the following:
Conducting scheduled and unscheduled maintenance on your rental objectsDisplaying costs in integrated reportsAssigning services to externalsMonitoring modernization and maintenance tasksHandling malfunctions and problems reported via phonePreparing and procuring good and external servicesManaging available spacesMaintaining space and rooms as graphical representations with CAD/CAFM systems
Technical Real Estate Management Construction Modernization &
Refurbishment Maintenance & Repair Service Management
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Support Processes
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 objectsTenant account maintenancePlanning 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 systemsAdditional tools to adapt and enhance the SAP Real Estate Management solution to external systems and servicesIntegration to SAP Industry Solutions such as Public Sector Management
Support Processes Accounting Controlling Tools Integration to SAP Industry Solutions
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SAP Real Estate Management can support you in…
Commercial Real Estate Management
Lease Management Condition AdjustmentsCost recoveryPercentage rentagreements
Project ManagementPlanningBudgetingExecutionSettlement
Technichal Real Estate Management
Service Management Modernization and RefurbishmentMaintenance and Repair
Controlling ProcessesComprehensive Real Estate Controlling
AccountingExpediting procedure foroverdue itemsIncoming paymentsPeriodical postings
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OperateOperate
AnalyzeAnalyze
ManageManageMeasureMeasure
Analyze performance
Develop and optimize real estate portfolio
Control, analyze, and evaluate data and
key figures
Perform operative and strategic planning of costs and revenues
Master DataManagement
Correspondence
Contract Management
Rental Accounting
Service Charge Settlement
Revise strategies and (re)evaluate portfolio
and investments
Optimize operational efficiency across all functions to improve overall business performance
Collect and analyze data
Business Partner Management
Technical Facility Management
Project Management
Condition Adjustment
Real Estate Lifecycle
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Flexible object structureUsage viewArchitectural viewTechnical view
Dynamic rental spacesPooled space Rental spaceRental unit
Graphical link to CAD/CAFM systems
Different usage scenariosInternal/external usage or rentalMultiple usageCommon usage
Grouping for easy handling and administration
Master Data Management
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Master Data Management: RE Navigator
ONE central transaction – unified handlingFor all real estate objects (architecture, usage, contracts)For creating, displaying, and editingFor resubmissionFor reporting
User-specific viewsWorklistUser-dependent object listFavorites list
Explorer functionsDisplay of the hierarchical dependenciesDirect call, context-sensitive direct link (forward, backward)History of previously selected objects
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FlexibilityUse contract as vendor and customer contractUse contract for lease and non-lease real estate activitiesAssignment of various rental objects to one contractGenerate rental objects when contract is created
Comprehensive date and deadline managementPredefined rules
Flexible conditions and calculation rulesDependent conditionsCondition purpose (actual, vacancy, market rent)
IntegrationAssignment of Central Business Partnerto Accounting and Controlling
Contract Management
Livingroom
Bedroom1
Bedroom2
Scale1:75 Livingroom
Bedroom1
Bedroom2
Scale1:75
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Lease-in (vendor)Lease-in (vendor)
Contract - cleaning (vendor)Contract - cleaning (vendor)
Building 1
Contract - elevator maintenance (vendor)Contract - elevator maintenance (vendor)
Building 1
ContractsObjects
Contract Management: Transparency
Rental object 1
Rental object 2
Sub-lease (customer)Sub-lease (customer)
Building 1
Sub-lease (customer)Sub-lease (customer)
Rental object 3
Internal lease (cost center)Internal lease (cost center)
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Cost center/order/projectCost center/order/project
Livingroom
Bedroom1
Bedroom2
Scale1:75 Livingroom
Bedroom1
Bedroom2
Scale1:75
Contract Management
Real estate object
PartnersPartners
Debit positionPaymentOpen item management DunningReal estate controlling
Debit positionPaymentOpen item management DunningReal estate controlling
ProcessesProcesses
ACTIVATEACTIVATE
Term ConditionsNotice/renewalKey dates and diaryfunctionsDistributionAdjustment rulesService chargesDocument management
Term ConditionsNotice/renewalKey dates and diaryfunctionsDistributionAdjustment rulesService chargesDocument management
LeaseLease
Signature Date
Correspondence
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Real Estate Processes
Automated processesPeriodic Posting of contract conditionsAdjustment of Conditions Service Charge SettlementSales-Based Rent SettlementCorrespondence
Rule-based Conditions can be dependent on existing conditionsCondition adjustment rules can be predefined and reused
Mass executionPeriodic postings and payments are generated and integrated in Accounting and ControllingSales-based rent settlement and service charge settlement can be executed for many contracts simultaneouslyProcesses can be simulated and executed step-by-step and reversedCorrespondence can be generated for all objects or contracts
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Reporting in SAP Real Estate Management
Information SystemFor operative purposesReporting for
– Master Data, Measurements, Conditions, Contracts, Business Partners– Service Charge Settlement, Sales-Based Rent and Controlling
Business Information WarehouseFor management and cross-application reportingInfo cubes, roles, queries and workbooks Reporting for
– Portfolio Performance, Occupancy and Vacancy Rates, Partner Performance– Costs and Revenues, Rent Revenue, Cash Flow
Flexible reportingEasy to adaptEasy access and exploration of informationSupport on strategic, tactical and operational decisionsReduction of costs through quicker decisions
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Integration to mySAP ERP SAP Business Information WarehouseSAP AccountingSAP ControllingSAP Business PartnerSAP Plant Maintenance/Customer ServiceSAP Project SystemSAP SmartForms/Adobe SAP Document Management System/Records ManagementSAP Workflow
InterfacesCAD, CAFM and GIS systemsBuilding control systems
Integration
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How Can You Manage Your Real Estate More Efficiently Using mySAP ERP?
SAP Real Estate ManagementSTRATEGIC BUSINESS INSIGHT
Increased transparency in your real estate portfolio helps you optimize your investment decisions.Key figures and benchmarking increase efficiency in assessing performance.
DIFFERENTIATIONFOR TOP LINE GROWTH
Leasing vacant space becomes simpler and faster.Risk of lost rent revenue is reduced.
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LINE GROWTH
Automation of contract management saves time and money.User satisfaction increases while administrative costs in service management are reduced.
FLEXIBILITY TO ACT TODAY
Management processes become more efficient thanks to ability to visually display complex real estate data.
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STRATEGIC BUSINESS INSIGHT
Optimized Decision-Making
Contract Management and Land Use Management,together with Business Information Warehouse,allow you to fully track your real estate portfolio.
Your AdvantagesProvides 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.
Our SolutionManagement 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.
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Improved Performance Measurement
By determining key performance indicators you can measure portfolio performance and benefit from benchmarking.
Your AdvantagesKey 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.
Our SolutionStatistical 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.
STRATEGIC BUSINESS INSIGHT
Source: DID Deutsche Immobilien Datenbank GmbH (Germany)
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Efficiency in Performance Assessment
Key indicators provide you with input for benchmarking and performance management.
Our SolutionStatistical 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.
STRATEGIC BUSINESS INSIGHT
Your AdvantagesKey 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.
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Higher Flexibility For Controlling Reports
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.
STRATEGIC BUSINESS INSIGHT
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More Secure Rent Revenues
Active partner management increases the security of rent revenues.
Marketplace
OfferedObject
RE SearchRequest
CreditCheck
ContractOffer
Real EstateSearch
SAP Netweaver
SAP R/3 SAP R/3
CreditProtection
Agency
SAP R/3
Your AdvantagesImproved security for rent revenues.
DIFFERENTIATIONFOR TOP LINE GROWTH
Our SolutionEfficient partner management with links to Accounts Receivable and contract management.Data can be exchanged with credit protection agencies.
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Automatic Contract Management
Using comprehensive contract management, youcan map complex contracts and handle follow-on processes efficiently.
Out SolutionFull 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.
Specify contract conditions
Execute periodicposting
Your AdvantagesCentral 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.
Processopenitems
Postincomingpayments
Clear items
Analyzetenant account
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LINE GROWTH
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Active Service Management
Automatic service management assists you in optimizing processes, reducing costs and increasing user satisfaction.
Our SolutionPurchasing 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 managementBudget planning, costs controlling, order monitoring
Your AdvantagesStandardizing 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.
CreateServiceAgreement
RequestService Create
OrderAcceptOrder
Report &Confirm
Activities
SettleOrder
Receive ServiceCharge
Settlement
ReceiveCredit Memo
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LINE GROWTH
Tenant/User Real estate manager Service provider
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Visual Display of Complex Data
Integration with CAD/GIS systems increases the efficiency of real estate management by making it possible to visually display complex data.
FLEXIBILITY TO ACT TODAY
A B
DC
Contract 2
Contract 1
Contract 3
Architectural or Cadastral Data Contract Structure Your Advantages
Visual display of complex data for controlling processes, reporting and analyses
Our SolutionManagement of architectural and cadastral dataContract and area managementBidirectional interfaces with open standard
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Reduced Amount of Vacant Space
Vacancy reports and the Real Estate Searchassist you in reducing periods of vacancies.
Your AdvantagesIncreased transparency for contract terms and vacancies.Earlier and faster re-rental of properties.Automatic update of real estate data when contract signed.
Our SolutionActive vacancy managementReal 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.
DIFFERENTIATIONFOR TOP LINE GROWTH
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Process Example: Optimized Space Management
Your AdvantagesFaster response to space requestsSave time & resources in contract managementComplete portfolio transparency
Our SolutionComprehensive Master Data ManagementReal Estate SearchContract ManagementCentral Business Partner ManagementCost Allocation in Controlling
FrameworkAgreement
SpaceRequest
SpaceSearch
ContractOffer
ExpenseLease
RentPayment
CostAllocation
SpaceAssign-
ment
User Corporate Real Estate Manager Owner
DIFFERENTIATIONFOR TOP LINE GROWTH
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Your AdvantagesComplete overview about vacancy periodsFaster re-rentalProcess automation
Process Example: Reduced Vacancies and Faster Lease-Out
Our SolutionFull process supportAutomatic transfer of contract offers to contract management
Request
Vacant space
Search Contract offer Lease-out contract
DIFFERENTIATIONFOR TOP LINE GROWTH
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One-Time Postings: Interface
Easy-to-use interfaceComplexity of postings not visible to end userTemplates in CustomizingGreat amount of flexibility
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LINE GROWTH
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Input Tax Treatment for Controlling Objects
Input tax distribution for costs related to real estate, where the costs were posted to other objects such as, functional locations, CO orders, etc.
PrerequisitesThe 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.
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LINE GROWTH
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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
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LINE GROWTH
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Easier Integration to Industry Solution for Public Sector
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.
ProcessesContract 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
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LINE GROWTH
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Simplified Management through Vizualizuation
Integration with CAD/GIS systems increases the efficiency of real estate management by making it possible to visually display complex data.
FLEXIBILITY TO ACT TODAY
A B
DC
Contract 2
Contract 1
Contract 3
Architectural or Cadastral Data Contract Structure Your Advantages
Visual display of complex data for controlling processes, reporting and analyses
Our SolutionManagement of architectural and cadastral dataContract and area managementBidirectional interfaces with open standard (Business Application Programming Interfaces)
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Easier and Faster Adaptation of Solution via Standard Tools
Your advantagesEasy and fast adaptation and enhancements tocustomer-specific needs without modification
Our SolutionEasy adaptation of user interface to role-specific needs via Business Data Toolset (BDT)Modification-free implementation of specific methods such as for calculation of conditions and other enhancements via Business Add In(BAdI)Standardization of folder structures and management of various records per folder via SAP Records ManagementEasy management of all types of documents related to your property via SAP Document Management SystemHigh-performing mass print for all types of application data via Adobe IntegrationComfortable creation of single print documents or CO-Planning via Microsoft Office Integration
FLEXIBILITY TO ACT TODAY
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Flexible Calculation of Contract Management Conditions
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.
FLEXIBILITY TO ACT TODAY
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Correspondence
Starting with this Release, Adobe is the standard tool for correspondence. The following forms are available as PDF-based 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 SettlementSales-Based Rent SettlementCondition AdjustmentEtc.
Old Forms as SAP Smart FormsAs 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.
FLEXIBILITY TO ACT TODAY
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Auditing: DART and AIS
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-FXAIS 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.
FLEXIBILITY TO ACT TODAY
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System 2: Project and Test System
ProjectStart
Automatic Migration in mySAP ERP 2005
Classic RELive System
System 1: Live
Upgrade of Project System
Classic RE mySAP ERP 2005Migration Programs,DecisionsRE-FX
mySAP ERP 2005
Upgrade(Downtime) Classic RE /
on mySAP ERP 2005
Upgrade of Live System
Copy of Live System (e.g. 4.6C)
ProjectEnd
Migration(Downtime)
Live System RE-FX on
mySAP ERP 2005
Import of Migration Decisions, Start Migration
Time
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Automatic Migration: Constraints
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 follow-on 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.)
Outlook & Further Information
Real Estate Market Challenges & Trends
Solution Overview
Customer Cases & References
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Customer Case: IVG Immobilien AG/Europe
Key ChallengeImplement a flexible, internationally usable software platform
Project ObjectivesReplace central, homegrown legacy solutionAchieve global rollout
Key BenefitsIntegrated business processesConsistent data basisAccelerated processes and data flowsDecentralized contract managementAbility to react more flexibly to future market requirements
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“Having a complete end-to-end 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
Key ChallengesConsolidation of 2 parts of business –funds and corporate real estateOutsourced property managementAllocation of occupancy expenses and management of external tenants
Implementation HighlightsExpansion 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
Key BenefitsIncreased improvements in business efficiency and reportingDeployment of system to external partners and clients
Customer Case: Colonial First State Property
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Customer Case: Wells Fargo Corporate Properties Group/USA
Key ChallengesStreamline and automate management of extensive real estate portfolioImprove visibility into building and space utilization at building levelEnhance effectiveness of lease administration and occupancy trackingIncrease charge-back capabilities for business units to bare cost of building expenses
Key BenefitsIncreased awareness by business units of expenses, resulting in cost reductionsImproved utilization of assets and enhanced revenue opportunitiesGreater 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
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Customer Case: Toronto District School Board/Canada
Key ChallengesCreate central support for external leasing of unused spaceIntegrate leasing processes of the seven regional boards
Key BenefitsIncreased revenue from external leasing of unused spaceStreamlined property maintenanceStandardized real estate management processesIntegrated real estate processes with other departments and systemsImproved support for long-term goals
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Airports
Banks
Energy suppliers
Harbors
Insurance companies
Postal services
Public sector
Railways
Retailers
More References
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Facility Managers
Housing companies
REITs
Real estate companies
Shopping center managers
Professional Real Estate Manager References
Outlook & Further Information
Real Estate Market Challenges & Trends
Solution Overview
Customer Cases & References
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Important SAP Notes
443311 Release Strategy517673 Functions and Features771098 Country Availability690900 User Specific Enhancements828160 Migration Tools
Notes regarding SAP Real Estate Management can be downloaded via http://service.sap.com/notes
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Education
Two standard trainings are availableAC 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
© SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 62
Country Availability with mySAP ERP 2005
For more information on the availability of SAP Real Estate Management for specific countries please check http://service.sap.com/re availability and read SAP Note 771098.
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Country Availability and Localization
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.
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Legal Compliance for More Countries
AustriaCondition adjustment– “main rent statement” for residential contracts– “fifteenths” for commercial contracts
Summarization of tax lines
ItalyImposta Comunale sugli Immobili (county tax)Imposta di Registro (registration tax)Imposta di Bollo (stamp tax)Summarization of tax lines
SwitzerlandCorrespondence based on Swiss tenancy lawExternal heating expenses settlementLease-in with ISRCalculation of fuel consumptionRent adjustment according to Swiss law
Portugal/SpainWithholding tax
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Languages and Releases
SAP Service Marketplace: service.sap.com/re Availability
Please also read note: 771098
© SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 66
mySAP ERP 2005 Is the Go-To ReleaseProvides a long-term foundation for excellence and innovation
Enterprise services enabled
Delivers 28 configurable industry solutions
Continuous Innovation
300+ functional enhancements
Dramatic user experience improvements
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2006 20102007 2008 2009
Introducing… Enhancement PackagesMore innovation, more quickly, more accessible to customers
Industry-specific capabilities
Talent Management
EnterpriseServices
Financial Collaboration
Optional Adoption
Areasof
innovation
Functional enhancementsTechnical enhancementsEnterprise services
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Enhancement PackagesDelivering new capabilities along with critical updates
Legal/Tax Changes, Corrections
Enhancement Packages
Support Packages
New/Improved Functionality
Switch Framework
Enterprise Services
Mandatory
Optional
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New Release StrategyStabilizing the core while delivering continuous innovation
mySAP ERP 2005 is the Go-To Release for SAP R/3 Customers.
2006 2007 2008 2009 2010
mySAP ERP 2005
SAP NetWeaver
Enhancement Packages NextMajorERPRelease
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Release Strategy SAP Real Estate Management
SAP R/3 4.6c
SAP R/3 Enterprise4.7*1.10
SAP R/3 Enterprise4.70*2.00
mySAP ERP 2005
mySAP ERP 2004
End of availability
Pilots
Basics
Commer-cial Use
Residen-tial Use
CorporateUse
Migration Migration
Flexible Real Estate
Classic Real Estate
Start of availability
EnhancementPackages für mySAP ERP
2005
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This strategy is also valid for all Industry Add-Ons based on the releases above.
2011 20122002 2003 2004 2005 2006 2007 2008 2009 2010
mySAP ERP2004
SAP R/3 Enterprise
SAP R/3 4.6C
SAP R/3 3.1I – 4.6B
mySAP ERP2005
Mainstr. Maint.
Dec
Dec
Mainstream Maintenance
ExtendedMaint.
(17% + 2%)
Dec
Dec
Ramp-Up
Mar
Dec Mar
ExtendedMaint.
(17% + 2%)
ExtendedMaintenance(17% + 4%)
ExtendedMaintenance(17% + 4%)
Mar
2014M
ar
Mar
Ramp-Up Mainstream Maintenance
Mainstream Maintenance
Mainstream Maintenance
2013
Customer-SpecificMaintenance
Dec
Customer-SpecificMaintenance
ExtendedMaint.
(17% + 2%)
ExtendedMaintenance(17% + 4%)
Customer-SpecificMaintenance
Mar
Mar
ExtendedMaint.
(17% + 2%)
ExtendedMaintenance(17% + 4%)
Customer-SpecificMaintenance
ExtendedMaint.
(17% + 2%)
ExtendedMaintenance(17% + 4%)
Customer-Specific
Maintenance
Ramp-Up
Maintenance Strategy
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SAP Real Estate Management – Future Highlights
Portfolio Management Real Estate Analytics Master Data Management Partner Management Transaction Management
Commercial Real Estate Management
Real Estate Search
Lease Management
Condition Adjustment Percentage Rent Cost Recovery Third Party
ManagementLegal Compliance
Corporate Real Estate Management Space Management Room Reservation Move Management
Technical Real Estate Management Construction Modernization &
Refurbishment Maintenance & Repair Service Management
Support Processes Accounting Controlling Tools Integration to SAP Industry Solutions
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Outlook
Commercial Real EstateDifferent currency in contract conditionsRent adjustment according to cost efficiency analysis **)Correction items for input tax distribution **)
Corporate Real Estate ManagementMultiple use of common spaceMove ManagementRoom Reservation
IndustriesPublic Sector Integration*
IntegrationFirst steps towards Enterprise Service ArchitectureCAD/GIS InterfacesDUET – 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
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Increased Value to Your Property Portfolio - Executive Summary
SAP Real Estate Management supports professional real estate managers as well as corporate real estate managers.
With mySAP ERP SAP Real Estate Management provides important enhancements for more usability, enhanced process integrationand additional scenario support.
SAP Real Estate Management in mySAP ERP - Why should you upgrade now?
More efficiency and productivityIncreased transparencyEnhanced process integrationDifferentiation in competitionIncreased value of property portfolio
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Contacts
Franz Wilhelm KehreinSolution ManagerSAP Real Estate Management
Christian MnichSolution ManagerSAP Real Estate Management
Christian KrämerDirector Solution ManagementSAP Real Estate Management
International Contacts (service.sap.com /re Contacts)
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Public Webwww.sap.com/realestate
Training courses: AC 295 Flexible Real Estatewww.sap.com/education
ContactChristian Mnich, SAP AG ([email protected])
Further Information
SAP Service Marketplace (log-on required)service.sap.com/re
Documentation and Release Noteshttp://help.sap.comDocumentation / mySAP ERP / ECC 6.00 / SAP ERP Central Component / Financials / Flexible Real Estate Management (RE-FX)
ASUG/DSAG: Real Estate Solution Industry Group www.asug.com / www.dsag.de