Business Process FX-RE

©SAP AG 2005

SAP Real EstateManagement

Solution Management,SAP AGSeptember, 2005

Business Maps

© SAP AG 2005

SAP Business Maps for SAP Real Estate Management

Solution Map

Business MapsInternal Space ManagementManaging Contracts Adjustment of ConditionsNoticeSales-based Rent SettlementService Charge SettlementThird Party Management Handling of Service and Repair Requests for Real Estate Objects

© SAP AG 2005

Real Estate Solution Map, 2005

Property Acquisition & Disposal Trading Build Lease

Portfolio Management Analytics Architecture Usage Partners Land Use Management

Property Management Real Estate Search Contract Management

Condition Adjustment Sales-Based Rents Service Charge

SettlementThird Party Management

Technical Management Building Operations Maintenance & Repair Modernization & Refurbishment

Support Processes Accounting Controlling Correspondence Tools

© SAP AG 2005

Real Estate Solution MapProperty Acquisition & Disposal

SAP Product Available

SAP Product Available with Future Releases

Future Focus

Partner Product Available

Partner Product Available with Future Releases

Collaborative Business Map Available

Sxx, Vxx, Bxx SAP Product & Service Pxx Partner Product

For more information see: http://www.sap.com

Trading

Purchase Contract (S201, S60) Asset Acquisition (S60) Sales Contract (S201, S60) Asset Retirement (S60) Property Evaluation (S201, B12, S60)

Build

Project Management (S62) Bid Invitation, Award & Invoicing (S63) Cash Management (S60)

Lease

Lease-in (S201, S59) Lease-out (S201, S60)

© SAP AG 2005



Future Focus




Sxx, Vxx, Bxx SAP Product & ServicePxx Partner Product


Real Estate Solution MapPortfolio Management



Future Focus






Analytics

Operative Reporting (S201)

Management Reporting (S60, S160, S201) Key Performance Indicators(S60, S160, S201)

Architecture

Architectural Structure (S201)

Functional Location (S62)

Equipment (S62) CAD/CAFM Support (P14, S201, S62, S60) Data Transfer (S201, B9, S60, S62)

Usage

Business Entity (S201, S60)

Land (S201, S60) Building (S201, S60) Rental Objects (S201, S60)

Fixed Asset (S60) Data Transfer (S201, B9, S60)

Partners

Partners & Roles (S201, S60)

Addresses (S201, S60)

Land Use Management

Parcel of Land (S201, S60)

Parcel Update (S201, S60)

Land Register (S60, S201)

Other Public Registers (S201, S60) Notice of Assessment (S60, S201) Geographic Information System (P36, S201, S60) Available in Germany only

© SAP AG 2005



Future Focus




Sxx, Vxx, Bxx SAP Product & ServicePxx Partner Product


Real Estate Solution Map

Link to Business Scenario Map

Property Management



Future Focus






Real Estate Search

Offered Objects (S60, S201) Real Estate Search(S201, S60) Contract Offer (S60, S201)

Contract Management

Contract Data (S201)

Date Management(S201) Renewal (S201) Notice (S201) Framework Agreement(S201) Security Deposit (S201)

Contract Amendments(S201) Own Use (S201)

Condition Adjustment

Adjustment Process(S201) Adjustment Methods(S201)

Sales-Based Rents

Calculation (S201) Sales Reports (S201)

Sales Settlement & Adjustment (S201) Key Figures & Sales Statistics (S201)

Service Charge Settlement

Apportionment Rules(S201) Cost Collection (S64, S201) Settlement (S201) Advance Payment Adjustment (S201) Settlement with External Providers (S201)

Third Party Management

Privatization (S201, S60)

Mandate Accounting(S201, S60) Management Contract(S201, S60) Condominium Owners' Associations (S201, S60)Available in Germany only

© SAP AG 2005

Real Estate Solution MapTechnical Management



Future Focus






Building Operations

Space Management (S201, S62) Occupancy Planning (P14, S201)

Key Management (V42)

Security Management (S61, P75) Services (S63, S64) Fire Safety (S62)

Maintenance & Repair

Maintenance Plans & Requests (S62) Scheduling and Resource Planning (S62) Incoming Malfunction Reports via Internet & Handhelds, Pervasive Computing Devices (S62)

Link to Service Companies (V42) Cost Monitoring (S201, S62) Date Monitoring (S201, S62) Customer Interaction Center (S14) Framework Agreement (S64) Procurement of External Services (S64, S63)

Building Control Systems (S62, V42)

Modernization & Refurbishment

Cost Monitoring (S62) Link to Service Companies (V42)

Modernization Measures (S201, S62) Rent Adjustment (S201)

© SAP AG 2005

Real Estate Solution MapSupport Processes



Future Focus






Accounting

Periodic Postings (S201, S60) One-Time Postings (S201, S60) Payment Transactions (S60) Dunning (S201, S60) Input Tax Opting (S201, S60) Accrual & Deferral (S201, S60) Appreciation & Depreciation (S60, S201)

Controlling

Cost & Revenue Planning (S201, S60)

Direct Costs & Revenues (S201, S8)

Activity Allocation (S201, S60) Settlement (S201, S60) Activity-Based Costing (S60, S201)

Correspondence

Correspondence (S201, S60) Document Management (S201, P24, S60) Records Management (S65, S60, S201) Optical Archive (S201, S60)

Tools

Data Archiving (S201, S60) Business Data Toolset (BDT) (S201, S60) Business Add-In (BAdI) (S201, S60)

Business Application Programming Interface (BAPI) (S201, S60) Enterprise Services Architecture (ESA)(S201, S60)

© SAP AG 2005

Solution Product Table

Solution Map Partner Interface Table

Solution Map Tables

Key Description

P3 Activity Based Costing Interface

P14 Computer Aided Design

P36 Geographical Information Systems

P75 Time and Attendance

Key Description

B9 Data Transfer and Migration Tools

B12 SAP NetWeaver Business Intelligence

S8 SAP Financial Supply Chain Management (applies to mySAP ERP)

S14 mySAP Customer Relationship Management

S59 SAP R/3 Enterprise / mySAP ERP / mySAP Customer Relationship Management

S60 SAP R/3 Enterprise / mySAP ERP / mySAP ERP Financials

S61 SAP R/3 Enterprise / mySAP ERP / mySAP ERP Human Capital Management

S62 SAP R/3 Enterprise / mySAP ERP / mySAP Product Lifecycle Management

S63 SAP R/3 Enterprise / mySAP ERP / mySAP Supplier Relationship Management

S64 SAP R/3 Enterprise / mySAP ERP / mySAP Supply Chain Management

S65 SAP Records Management

S201 SAP Real Estate Management

V42 SAP Consulting Solution of SAP Subsidiary Germany (LGD)

© SAP AG 2005

SAP Business Maps for SAP Real Estate Management

Solution Map

Business MapsInternal Space ManagementManaging Contracts Adjustment of ConditionsNoticeSales-based Rent SettlementService Charge SettlementThird Party Management Handling of Service and Repair Requests for Real Estate Objects

© SAP AG 2005

Real Estate Related Maps in mySAP ERP Solution Map

© SAP AG 2005

Business Scenario Maps for Real Estate

The following Business Scenario maps have been developed for SAP Real Estate Management and are available in SAP Solution Composer:

Internal Space Management

Managing Contracts - NEW

Adjustment of Conditions

Notice

Sales-based Rent Settlement


Third Party Management - NEW

Handling of Service and Repair Requests for Real Estate Objects

© SAP AG 2005

Internal Space Management

Roles User of SpaceReal Estate ManagerProvider of Space

Business Process

The scenario demonstrates:How the internal department requests additional space and how the real estate manager manages space requirements and maps contractual agreements with the external space provider and the internal department.How the real estate manager has a complete overview of his real estate portfolio and is able to respond to all contractual obligations.By streamlining acquisition, technical and rental management processes, corporate managers are able to better align their company's real estate activities with its general business policies and goals.

© SAP AG 2005

Internal Space ManagementBusiness Benefits User of Space Real Estate

Manager Provider of Space Business Benefits

Make better use of available resources, cut costs, and respond quickly to needs

Flexible space and room management with integration to CAD/CAFM systems

Real estate portfolio transparency

Transparent cost allocation

Record all contractual details

Efficient date tracking

Complete overview of payments made & payments due

Define framework agreement

Negotiate contract & lease space

Assign building to real estate portfolio

Update framework agreement

Controlling & management of

framework agreementContract management

Request for space

Perform space & occupancy planning

Business View(Level 1)

© SAP AG 2005

Managing Contracts

Roles TenantReal Estate Manager

Business Process

The scenario demonstrates:How contracts can be managed in SAP Real Estate Management. How the real estate manager can match vacant properties to specific rental requests submitted by prospects. How the offer and contract management processes are mapped. How the real estate manager negotiates the contractual agreements for rent with the tenant, including start and end dates, rental charges and payment details, notice and renewal clauses, as well as participation in service charge costs. How the real estate manager manages all objects and contracts in his portfolio, and carries out the relevant activities related to these objects. With this process you are able to manage and control the complete real estate contract lifecycle. Information transparency and operation efficiency are enhanced as all relevant data is stored centrally against the contract. The real estate manager has a better overview of his portfolio and tenant relations are improved.

© SAP AG 2005

Managing Contracts

Business Benefits Prospect/Tenant Real Estate Manager Business Benefits

Simple entry of request for property

Documented administration procedures

Improved customer satisfaction

Shorter processing

Minimize frequency and duration of vacancies

Optimize rental process

Optimize portfolio transparency

Accurate mapping and recording of lease

Automated processes

Complete overview of payments due

Make better use of resources and respond quickly to needs


Submit rental search request

Search for offered objects

Create contract offer

Accept contract offer

Create contract

Create RE search request

Manage offered objects


Print and send contract

Sign contract

© SAP AG 2005

Managing Contracts

Business Benefits Prospect/Tenant Real Estate Manager Business Benefits

Activate signed contract

Make periodic postings for contract

and vacancy

Process open items

Monitor key dates

Renew contract

Submit notice

Give or record notice

Analyze reports for contracts

© SAP AG 2005



Business ProcessThe scenario demonstrates:

How the real estate manager performs the adjustment of conditions process. Interaction takes place between the tenant occupying the space and the real estate manager, who rents the space to the tenant. Activities include:

concluding a lease with a tenantentering adjustment parametersperforming the condition adjustmentgenerating correspondenceactivating new condition valuescarrying out financial postings based on new values

You use the adjustment of conditions process to make calculated changes to condition amounts that are charged for the rental or services of real estate objects. The result is a more accurate and timely condition adjustment, saving both time and money, improving operational efficiency.

© SAP AG 2005


Business Benefits Tenant Real Estate Manager Business Benefits

Information transparency

Receive accurate & timely adjustments

Documented administration procedures

Accurate mapping & recording of lease

Seamless integration


Standard adjustment processing based on pre-defined rules

Optimize rent revenue

End-to-end processing

Create contract & define adjustment

rules

Communicate calculated condition

adjustment

Confirm condition adjustment amount

Enter approval (if applicable)

Activate adjustment

Sign contract

Simulate possible adjustments

Make periodic posting with new condition

amounts

Generate follow-up postings


© SAP AG 2005

Notice


Business Process

The scenario demonstrates:A typical notice processing scenario to terminate a lease contract. The collaboration between a tenant and a real estate manager. How the real estate manager can respond quickly and efficiently to the tenant's notice and need to vacate the real estate object he is currently occupying. The definition of the notice procedure and rules at the time of contract conclusion clarifies what needs to be done, by whom, at the right time. The documented process means that the tenant is aware of the procedure, and the real estate manager is able to provide an optimal service to his tenant. Results include increased responsiveness and higher customer satisfaction.

© SAP AG 2005

Notice


Saves money - no payment of additional rent


Increased customer satisfaction


Automated processes

Reduced administration costs


Optimized rental process

Submit notice

Confirm notice

Vacate rental object

Inspect rental object

Release contract deposit

Check notice rules in contract

Check open items

Receive rental deposit

Advertise vacant space


© SAP AG 2005

Sales-based Rent Settlement


Business Process

The scenario demonstrates:Collaboration between two business partners - the tenant and the real estate manager. The tenant rents commercial space, e.g. a store, from the real estate manager. The real estate manager negotiates the lease agreement with the tenant. how sales-based rent provides functions for settling sales-based rent agreements in a real estate contract based, on the sales reports of commercial tenants. Terms and conditions for the sales-based rent settlement and adjustment are defined in the contract. how sales and reporting rules are defined. The process describesthe extensive functions for sales-based rent settlement and adjustment, and supports the mapping of the most complex sales-based agreements. Benefits include complete transparency and simplified handling for both the tenant and the real estate manager.

© SAP AG 2005

Sales-Based Rent Settlement



Efficient reporting of sales



Simplified handling of all sales relevant contracts

Complete overview of all sales reports entered, missing sales reports & settlements

Negotiate contract, define sales-based

rent parameters

Report sales amounts

Check for missing sales reports

Enter missing sales & correct existing sales

amounts

Analyze sales results & correct values

Carry out sales-based rent settlement

Sign lease

Make periodic postings


© SAP AG 2005

Sales-Based Rent Settlement (2)


Communicate settlement results to

tenant

Receive correspondence &

check results

Pay outstanding amount / Receive

credit note

Adjust advance payments

Analyze sales results and determine key

figures

Success-dependent rent calculation

Accurate forecasting

Easy definition of key performance indicators (KPIs)


© SAP AG 2005


Roles TenantReal Estate ManagerService Provider

Business Process

The scenario demonstrates:How costs for the use and maintenance of real estate objects can be accurately calculated and passed-on to the tenants occupying the space, according to a number of different parameters. The interaction between three business partners - the tenant, real estate manager and service provider. The tenant rents space from the real estate manager. The real estate manager manages lease and facility management processes that concern his real estate portfolio. A number of services are provided for the maintenance and service of the real estate objects. These include janitorial services, gardening, cleaning, maintenance and repair etc. The real estate manager negotiates the contractual agreements for these services with the individual service providers. The service charge settlement, or charge-back process ensures that operating costs for services are accurately determined and billed. The system automatically calculates chargeable expenses, balances advance payments, calculates any resulting adjustments and tracks settlement results. The result is an automated process with correct allocation of expenses to the tenants who are incurring the services. The real estate manager is also able to manage all contractual relationships effectively with both tenants and service providers.

© SAP AG 2005

Service Charge SettlementBusiness Benefits Tenant Real Estate

Manager Service Provider Business Benefits

Accurate cost allocation for services received

Improve information transparency

Reduce administration costs, improve business processes & enhance operational efficiency

Complete overview of costs & revenues

Negotiated contract terms

Collaborate with business partners


Increased transparency

Negotiate contract for services

Sign lease

Make periodic postings

Make payments for rental charges and

operating costsCarry out service

(gardening, cleaning etc)

Define service contract

Define contract & service charge

settlement parameters

Send invoice for services

Enter & pay invoice

Receive paymentBusiness View(Level 1)

© SAP AG 2005

Service Charge Settlement (2)Business Benefits Tenant Real Estate


Collect all apportionable costs

Carry out service charge settlement

Adjust advance payments for

operating costs

Communicate SCS results to tenant

Receive correspondence &

check results

Pay outstanding amounts / Receive

credit note

Activate new condition amounts


© SAP AG 2005


Roles TenantReal Estate ManagerOwner

Business Process

The scenario demonstrates:How the real estate manager manages real estate objects on behalf of owners, and maps his relationship with both the owner and the tenants occupying the property. How you can use this business process to manage real estate holdings for third parties. A management contract is used to map the contractual relationship between the owner and the real estate manager. The real estate manager and the owner are represented in the system as two companies, each one having a distinct company code. This ensures proper accounting as well as transparency in the business since the two company codes ensure that there is a distinction made in accounting between expenses and revenues of the manager and those of the owner.A management contract is used to map the contractual relationship between the real estate manager and the owner. The management fees (conditions) that the owner pays to the real estate manager are calculated using flexible calculation methods.

© SAP AG 2005


Business Benefits Tenant Real Estate

Manager Owner Business Benefits


Record all contractual details between owners and tenants

Direct calculation and allocation of management fees

Optimized rental processes

Transparency of expenses and revenues

Reduced administration costs

Automated processes


Give mandate to manage real estate

objects

Create objects and contracts in mandate

Create management contract

Sign management contract

Manage real estate objects and business

partners

Create mandate

Activate mandate

Create lease-out

© SAP AG 2005

Third Party Management (2)

Tenant Real Estate Manager Owner

Sign contract

Perform periodic postings

Pay rental charges Pay management fees

Analyze reports for contracts

© SAP AG 2005

Handling Service & Repair Requests for Real Estate Objects

Roles TenantReal Estate ManagerService Provider

Business ProcessThe scenario demonstrates:

how the real estate manager can manage the services and repairs required for objects in his portfolio.Collaboration between three business partners, the tenant, real estate manager and service provider.The real estate manager is responsible for lease and building administration. He therefore manages all service and repair requests for his buildings. The tenant occupies the space and requests services and repairs such as catering or he reports a fault in his rental object (malfunction report). Due to the fact that many real estate companies do not have these services in-house, and they are needed on a regular basis, the real estate manager outsources the services to service providers. Standard service descriptions and prices are entered in a framework agreement. Seamless integration between the parties involved helps reduce process costs and increases operational efficiency. .

© SAP AG 2005

Handling Service & Repair Requests for Real Estate Objects

Business Benefits Tenant Real Estate


Simple entry of request for service & repair


Accurate mapping and recording of services

Optimize maintenance planning & control

History of all maintenance tasks with error locations, causes, costs etc

Accurate cost recovery through complete integration

Optimization of prices, services, availability

Direct allocation of responsibilities, costs etc

Integrated procurement of services & repairs

Documentation of costs according to maintenance type

More accurate forecasting of services required

Define services required

Create service order

Accept service order

Confirm activities

Accept activities

Receive credit note

Define service agreement

Request service or repair for real estate

object

Settle service order

Receive invoice or SCS results

© SAP AG 2005

Business Scenario Maps for Real Estate

The Interaction View (Level 2) has been defined for all Real Estate Business Scenario maps. This provides:

Consistent modeling (process flow, document flow)Link to employee rolesLink to SAP Solution Map

Example: Internal Space Management

Interaction View(Level 2)

Employee Role

Document Flow

© SAP AG 2005

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Business Process FX-RE

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