SAP Real Estate Beneficios

SAP Real Estate
Management 101
Heike Fiedler-Phelps
Platinum Consultant, SAP America
Rome, October 11, 2006

Introductions
Functional Overview
Key Benefits of SAP Real Estate
Management
A successful project

© SAP America 2006, SAP Real Estate 101 / Heike Fiedler-Phelps
Introductions
Platinum Consultant
SAP Real Estate Management
SAP America, Inc.
M +1/206/370 1618
E heike.fiedler-phelps@sap.com

Tell us…
Who you are
What your professional background isHow much you’ve worked with SAP
What real estate area you’re in (commercial, public sector, residential, corporate)
What your expectations are for this workshop
and
What you want to take home

The ground rules
This workshop is for you and all other participants.
Ask the questions that you have.
Everyone can and should ask questions.
Don’t hesitate to ask for clarification. For most of us, English is a
second language.
Respect the questions others have.
This is a beginner’s workshop. Everyone is new to SAP Real Estate.
Don’t be intimidated by the knowledge others have. You have
knowledge they don’t have.
There will be a lot of information to absorb today. You may want to
revisit your notes and material later, and find you have more
questions. You will find out today whom you can ask later.
This is a unique networking opportunity, make use of it.

SAP Real Estate Management is available:
mySAP ERP (ECC Core) -> Classic Real Estate Management
You can continue to use the known functions of SAP Real Estate
Management in SAP R/3 4.6C. The system upgrade to SAP R/3
Enterprise is technical only, with no change in any of the functions
and interfaces of SAP Real Estate Management
mySAP ERP ECC Extension Set -> Flexible Real Estate
Management
You can take advantage of the new functions by activating the SAP
R/3 Enterprise Financials Extension to explore new dimensions of
integration and flexibility in real estate management
The functions and the user interfaces of the existing components
(such as FI, CO, PM) in your system are not changed in any way (this
means no extra training courses or documentation)
You can also implement other extensions that SAP provides for R/3
Enterprise

Release Strategy SAP Real Estate & mySAP ERP
SAP NetWeaver
Technology
SAP Basis
SAP R/3
Enterprise
SAP R/3
4.6B
RE Classic
SAP R/3
4.6C
SAP R/3
Core
SAP R/3
Ext. Set
1.10
SAP R/3
Enterprise
Ext. Set
2.00
mySAP ERP
2004
mySAP ERP
2005
SAP ECC 5.0
Ext. Set
SAP ECC …
Ext. Set
SAP R/3
Core
SAP ECC 5.0
Core
SAP ECC …
Core
Application
SAP Basis SAP Web
Application
Server
People
Integration
Information
Integration
Process
Integration
08/2002 09/2003 Mitte 2004 2005
SAP Web
Application
Server
SAP Web
Application
Server
SAP NetWeaver
People
Integration
Information
Integration
Process
Integration
SAP Web
Application
Server
Migration
RE-FX
*Fkt. - Funktionality

Why SAP Real Estate Management?
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
Management
Legal
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
Real Estate Solution Map, Edition 2006

Professional Real Estate Managers: Key Challenges & Trends
Key Challenges*
Adapt technology
Improve workforce development
Face business competition
Optimize risk management
Market Trends
Augmented portfolio diversity through market globalization
Increased market consolidation
Higher dependency on capital markets
Higher awareness for legal compliance
* Source: IREM Institute of Real Estate Management: Transforming Real Estate Management: Four
Strategic Issues 2006

Optimize Corporate Real Estate Management
Banking
Insurance
Airports
Energy Suppliers
Public Services
Oil & Gas
Postal Services Telecommunication
Retailers
Railways

Corporate Real Estate Managers: Pain Points
Airports
Manage plenty of percentage rent agreements
Repair & maintain highly-technical facilities
Financial Services
Manage headquarters and local affiliates
Public Services
Create portfolio transparency & complete master data
Optimize space utilization & reduce service costs
Retail Companies
Professionalize land development & transaction management
Increase level of process automation
Telecommunications and Utilities Companies
Optimize lease-in of facilities for technical infrastructure

Corporate Real Estate Managers: Key Challenges & Trends
Key Challenges *)
Provide optimized real estate services
Increase space utilization
Raise revenues with third parties
Decrease operative costs
Market Trends
Higher interest for real estate management at c-level
Increased need to integrated to other corporate departments
Demand for space changes more often
Increased cost pressure
* Source: Feedback from SAP customers

Pain points
Recent economic development
High vacancy levels in many commercial properties
Increased pressure to lower internal space costs
Need to offset declining results in other business areas
Market globalization
Expansion of subsidiary network to new markets
Manage more complex property portfolios and real estate activities
Mergers and/or redistribution of property portfolios according to
changes in company structure
Emphasis on capital market in decision making
Benchmarking of maintenance and service charges between properties
Increased need to compare return on investment (ROI) of property
Necessity to achieve competitive risk-return ratio

Why you are here today…
Corporate vs public vs professional portfolio
Expense management vs property overview vs revenue stream
Leases vs easements vs space utilization
….

SAP Real Estate Management can support you in…
Commercial Real
Estate Management
Lease Management
Condition Adjustments
Cost recovery
Percentage rent
agreements
Project Management
Planning
Budgeting
Execution
Settlement
Controlling Processes
Comprehensive Real
Estate Controlling
Technichal Real
Estate Management
Service Management
Modernization and
Refurbishment
Maintenance and Repair
Accounting
Expediting procedure for
overdue items
Incoming payments
Periodical postings

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 Data
Management
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

Master Data Management
Flexible object structure
Usage view
Architectural view
Technical view
Dynamic rental spaces
Pooled space
Rental space
Rental unit
Graphical link to CAD/CAFM systems
Different usage scenarios
Internal/external usage or rental
Multiple usage
Common usage
Grouping for easy handling and administration

Master Data Management: RE Navigator
ONE central transaction – unified handling
For all real estate objects (architecture, usage, contracts)
For creating, displaying, and editing
For resubmission
For reporting
User-specific views
Worklist
User-dependent object list
Favorites list
Explorer functions
Display of the hierarchical dependencies
Direct call, context-sensitive direct link (forward, backward)
History of previously selected objects

Contract Management
Flexibility
Use contract as vendor and customer contract
Use contract for lease and non-lease real estate activities
Assignment of various rental objects to one contract
Generate rental objects when contract is created
Comprehensive date and deadline management
Predefined rules
Flexible conditions and calculation rules
Dependent conditions
Condition purpose (actual, vacancy, market rent)
Integration
Assignment of Central Business Partner
to Accounting and Controlling
Living
room
Bedroom
1
Bedroom
2
Scale1:75 Living
room
Bedroom
1
Bedroom
2
Scale1:75

Contract Management: Transparency
Lease-in (vendor)Lease-in (vendor)
Contract - cleaning (vendor)Contract - cleaning (vendor)
Building 1
Contract - elevator maintenance (vendor)Contract - elevator maintenance (vendor)
Building 1
Contracts
Objects
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)

Contract Management
Cost center/
order/project
Cost center/
order/project
Living
room
Bedroom
1
Bedroom
2
Scale1:75 Living
room
Bedroom
1
Bedroom
2
Scale1:75
Debit position
Payment
Open item management
Dunning
Real estate controlling
Debit position
Payment
Open item management
Dunning
Real estate controlling
ProcessesProcesses
ACTIVATEACTIVATE
Term
Conditions
Notice/renewal
Key dates and diary
functions
Distribution
Adjustment rules
Service charges
Document management
Term
Conditions
Notice/renewal
Key dates and diary
functions
Distribution
Adjustment rules
Service charges
Document management
LeaseLease
Signature Date
CorrespondenceReal estate object
PartnersPartners

Real Estate Processes
Automated processes
Periodic Posting of contract conditions
Adjustment of Conditions
Service Charge Settlement
Sales-Based Rent Settlement
Correspondence
Rule-based
Conditions can be dependent on existing conditions
Condition adjustment rules can be predefined and reused
Mass execution
Periodic postings and payments are generated and integrated in
Accounting and Controlling
Sales-based rent settlement and service charge settlement can be
executed for many contracts simultaneously
Processes can be simulated and executed step-by-step and reversed
Correspondence can be generated for all objects or contracts

Reporting in SAP Real Estate Management
Information System
For operative purposes
Reporting for
– Master Data, Measurements, Conditions, Contracts, Business Partners
– Service Charge Settlement, Sales-Based Rent and Controlling
Business Information Warehouse
For management and cross-application reporting
Info cubes, roles, queries and workbooks
Reporting for
– Portfolio Performance, Occupancy and Vacancy Rates, Partner Performance
– Costs and Revenues, Rent Revenue, Cash Flow
Flexible reporting
Easy to adapt
Easy access and exploration of information
Support on strategic, tactical and operational decisions
Reduction of costs through quicker decisions

Integration
Integration to mySAP ERP
SAP Business Information Warehouse
SAP Accounting
SAP Controlling
SAP Business Partner
SAP Plant Maintenance/Customer Service
SAP Project System
SAP SmartForms/Adobe
SAP Document Management System/Records Management
SAP Workflow
Interfaces
CAD, CAFM and GIS systems
Building control systems

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

Solution Map – SAP Real Estate Management
Management
Real Estate
Search
Lease
Management
Condition
Adjustment
Third Party
Management
Legal
Compliance
Management
Management
Construction
Modernization &
Refurbishment
Solutions
Real Estate Solution Map, Edition 2006
Clear representation of core processes
Extensive 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 interface
Customizing (flexibility)
Easy add-on development

Portfolio Management
Portfolio Management helps you define your business' real estate
infrastructure 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 decisions
Standard reports on costs, revenues, vacancies, measurements, contracts,
conditions, maintenance and service costs and more
Defining 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

Commercial Real Estate Management
Management
Real Estate
Search
Lease
Management
Condition
Adjustment
Third Party
Management
Legal
Compliance
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 is
to make technological adaptation work.
SAP Real Estate Management provides them with:
Matching vacant properties to prospect tenants
Creating contract offers
Managing lease and vendor contracts
Monitoring lease deadlines and renewal options
Carrying out rent adjustments
Managing percentage rent agreements
Calculating chargeable expenses, balances, advance payments, and adjustments
Tracking settlement results
Handling correspondence for rental processes
Handling mandates and management contracts
Supporting country specific legal requirements

Corporate Real Estate Management
Management
Corporate Real Estate Managers such as Airports, Retailers and Public
Services want to integrated the very important area of property
management in the overall processes such as Controlling, Reporting and
Financials. Their key challenge is to increase the space utilization, prevent
budget violations, and user-friendly service management.
SAP Real Estate Management provides them with:
Comprehensive space management
Managing corporate portfolios
Assigning resources to spaces
Managing framework agreements
Reservation of objects and booking of additional services
Efficient move management
Improved options of cost allocation

Technical Real Estate Management
Management
Construction
Modernization &
Refurbishment
Technical Real Estate Management supports all processes related to
building operations, including maintenance on rental objects, service
management, the administration of available spaces, and building
operations.
Conducting scheduled and unscheduled maintenance on your rental objects
Displaying costs in integrated reports
Assigning services to externals
Monitoring modernization and maintenance tasks
Handling malfunctions and problems reported via phone
Preparing and procuring good and external services
Managing available spaces
Maintaining space and rooms as graphical representations with CAD/CAFM
systems

Support Processes
Solutions
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.
Periodic postings for real estate contracts and objects
Tenant account maintenance
Planning 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 systems
Additional tools to adapt and enhance the SAP Real Estate Management solution
to external systems and services
Integration to SAP Industry Solutions such as Public Sector Management

How Can You Manage Your Real Estate More Efficiently
Using mySAP ERP?
STRATEGIC
BUSINESS
INSIGHT
Increased
transparency in
your real estate
portfolio helps
you optimize
your investment
decisions.
Key figures and
benchmarking
increase
efficiency in
assessing
performance.
DIFFERENTIATION
FOR 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.

Optimized Decision-Making
STRATEGIC
BUSINESS INSIGHTContract Management and Land Use Management,
together with Business Information Warehouse,
allow you to fully track your real estate portfolio.
Your Advantages
Provides 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 Solution
Management 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.

Improved Performance Measurement
STRATEGIC
BUSINESS INSIGHTBy determining key performance indicators you
can measure portfolio performance and benefit
from benchmarking.
Your Advantages
Key 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 Solution
Statistical 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.
Source: DID Deutsche Immobilien Datenbank GmbH (Germany)

Efficiency in Performance Assessment
STRATEGIC
BUSINESS INSIGHTKey indicators provide you with input for
benchmarking and performance management.
Your Advantages
Key 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 Solution
Statistical 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.

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

More Secure Rent Revenues
DIFFERENTIATION
FOR TOP LINE
GROWTHActive partner management increases the
security of rent revenues.
Marketplace
Offered
Object
RE Search
Request
Credit
Check
Contract
Offer
Real Estate
Search
SAP Netweaver
SAP R/3 SAP R/3
Credit
Protection
Agency
SAP R/3
Your Advantages
Improved security for rent
revenues.
Our Solution
Efficient partner management with links to
Accounts Receivable and contract
management.
Data can be exchanged with credit
protection agencies.

Automatic Contract Management
Using comprehensive contract management, you
can map complex contracts and handle follow-on
processes efficiently.
Out Solution
Full 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
periodic
posting
Your Advantages
Central 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.
Process
open
items
Post
incoming
payments
Clear
items
Analyze
tenant
account
PRODUCTIVITY
AND EFFICIENCY
FOR BOTTOM LINE
GROWTH

Active Service Management
PRODUCTIVITY
AND EFFICIENCY
FOR BOTTOM LINE
GROWTH
Automatic service management assists you in
optimizing processes, reducing costs and increasing
user satisfaction.
Tenant/User Real estate manager Service provider
Create
Service
Agreement
Request
Service
Create
Order
Accept
Order
Report &
Confirm
Activities
Settle
Order
Receive Service
Charge
Settlement
Receive
Credit
Memo
Our Solution
Purchasing 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 management
Budget planning, costs controlling, order
monitoring
Your Advantages
Standardizing 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.

Visual Display of Complex Data
FLEXIBILITY TO
ACT TODAYIntegration with CAD/GIS systems increases the
efficiency of real estate management by making it
possible to visually display complex data.
A B
DC
Contract2
Contract 1
Contract 3
Architectural or
Cadastral Data Contract Structure
Your Advantages
Visual display of complex
data for controlling
processes, reporting and
analyses
Our Solution
Management of
architectural and
cadastral data
Contract and area
management
Bidirectional interfaces
with open standard

Reduced Amount of Vacant Space
DIFFERENTIATION
FOR TOP LINE
GROWTHVacancy reports and the Real Estate Search
assist you in reducing periods of vacancies.
Your Advantages
Increased transparency for
contract terms and vacancies.
Earlier and faster re-rental of
properties.
Automatic update of real estate
data when contract signed.
Our Solution
Active vacancy management
Real 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.

Process Example: Optimized Space Management
Your Advantages
Faster response to space requests
Save time & resources in contract management
Complete portfolio transparency
Our Solution
Comprehensive Master Data Management
Real Estate Search
Contract Management
Central Business Partner Management
Cost Allocation in Controlling
Framework
Agreement
Space
Request
Space
Search
Contract
Offer
Expense
Lease
Rent
Payment
Cost
Allocation
Space
Assign-
ment
User Corporate Real Estate Manager Owner
DIFFERENTIATION
FOR TOP LINE
GROWTH

Process Example: Reduced Vacancies and Faster Lease-Out
Your Advantages
Complete overview about
vacancy periods
Faster re-rental
Process automation
Our Solution
Full process support
Automatic transfer of contract
offers to contract management
DIFFERENTIATION
FOR TOP LINE
GROWTH
Request
Vacant space
Search Contract offer Lease-out contract

One-Time Postings: Interface
PRODUCTIVITY
AND EFFICIENCY
FOR BOTTOM LINE
GROWTH
Easy-to-use interface
Complexity of postings not visible to end user
Templates in Customizing
Great amount of flexibility

Input Tax Treatment for Controlling Objects
PRODUCTIVITY
AND EFFICIENCY
FOR BOTTOM LINE
GROWTH
Input tax distribution for costs related to real estate, where the
costs were posted to other objects such as, functional
locations, CO orders, etc.
Prerequisites
The 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.

Accrual/Deferral
PRODUCTIVITY
AND EFFICIENCY
FOR BOTTOM LINE
GROWTH
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

Easier Integration to Industry Solution for Public Sector
PRODUCTIVITY
AND EFFICIENCY
FOR BOTTOM LINE
GROWTH
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.
Processes
Contract 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

Simplified Management through Vizualizuation
FLEXIBILITY TO
ACT TODAYIntegration with CAD/GIS systems increases the
efficiency of real estate management by making it
possible to visually display complex data.
A B
DC
Contract2
Contract 1
Contract 3
Architectural or
Cadastral Data Contract Structure
Your Advantages
Visual display of complex
data for controlling
processes, reporting and
analyses
Our Solution
Management of
architectural and
cadastral data
Contract and area
management
Bidirectional interfaces
with open standard
(Business Application
Programming Interfaces)

Easier and Faster Adaptation of Solution via Standard Tools
Your advantages
Easy and fast adaptation and enhancements to
customer-specific needs without modification
Our Solution
Easy 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 Management
Easy management of all types of documents related to your property via
SAP Document Management System
High-performing mass print for all types of application data via Adobe
Integration
Comfortable creation of single print documents or CO-Planning via
Microsoft Office Integration
FLEXIBILITY TO
ACT TODAY

Why SAP Real Estate Management?
Streamlines and automates end to end processes
within enterprise wide system
Provides extensive, integrated reporting
and data consistency
Seamlessly integrates the activities of corporate real
estate management into the company’s overall
business strategy
Offers visibility to assist in Sarbanes-Oxley
compliance, and full analytics for cost reporting
Maximizes lease and portfolio efficiency and allows cost
overview and chargeback for any costs (even from other SAP
areas, such as PM, MM, HR, AA)

Why SAP and not a point solution?
Point Solutions
New Purchase PLUS
implementation
New IT competence needed
Interfaces and frequent upgrade of
interfaces needed
No integrated reporting
Higher transaction costs
Data in various systems (CRE,
Financial, Reporting)
Point solution implementer does
not know SAP and how to integrate
SAP Real Estate
Management
Integrated system
Leverages IT investment
No licenses needed
IT competence already in house
No interfaces necessary
End to end processes in one
system
Reduced transaction cost
Consistent data
Experienced RE consultants
know ERP system and CRE
business

Group Exercise
List the most compelling benefits of SAP Real Estate Management
for your companies to your team mates
Discuss the challenges that you anticipate or may have had
internally to get buy in for the implementation. List what area they
come from (c level, IT, business, end users).
Build a business case for your organizations to receive IT or
business buy in, to receive budget, or to get the end users on board.
Present your findings to the other teams in 5 minutes
Time: 45 minutes for exercises, 15 for presentation of results.

Customer Case: IVG Immobilien AG/Europe
Key Challenge
Implement a flexible, internationally
usable software platform
Project Objectives
Replace central, homegrown legacy
solution
Achieve global rollout
Key Benefits
Integrated business processes
Consistent data basis
Accelerated processes and data flows
Decentralized contract management
Ability to react more flexibly to future
market requirements

Customer Case: Colonial First State Property
Key Challenges
Consolidation of 2 parts of business –
funds and corporate real estate
Outsourced property management
Allocation of occupancy expenses and
management of external tenants
Implementation Highlights
Expansion 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 Benefits
Increased improvements in business
efficiency and reporting
Deployment of system to external
partners and clients
“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

Customer Case: Wells Fargo Corporate Properties Group/USA
Key Challenges
Streamline and automate management of
extensive real estate portfolio
Improve visibility into building and space
utilization at building level
Enhance effectiveness of lease
administration and occupancy tracking
Increase charge-back capabilities for
business units to bare cost of building
expenses
Key Benefits
Increased awareness by business units of
expenses, resulting in cost reductions
Improved utilization of assets and
enhanced revenue opportunities
Greater 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

Customer Case: Toronto District School Board/Canada
Key Challenges
Create central support for external
leasing of unused space
Integrate leasing processes of the
seven regional boards
Key Benefits
Increased revenue from external
leasing of unused space
Streamlined property maintenance
Standardized real estate management
processes
Integrated real estate processes with
other departments and systems
Improved support for long-term goals

More References
Airports
Banks
Energy suppliers
Harbors
Insurance companies
Postal services
Public sector
Railways
Retailers

Professional Real Estate Manager References
Facility Managers
Housing companies
REITs
Real estate companies
Shopping center managers

SAP Real Estate
Management
Customer Business Case 1
Principal Consultant, SAP America

Current Situation (Corporate space)
Utilization of Space
– Inefficient utilization of office space due to lack of knowing vacant office space at any time -
need to easily locate/report/assign office/residential space as quick as possible. Space
capturing is done manually (via physical survey) rather than having a reliable database
– CB&OS does not manage/have total control of office spaces- office spaces is assigned
directly to the proponent organizations to manage. No true checks and balances.
– Charging back the usage of space to the proponent is impossible (there was never an
appropriate mechanism in place); as a result, the proponent subconsciously do not pay
attention of utilizing the office space efficiently.
Space Planning
– Manually collecting office space requirements in a annual basis – too many people from
various organizations involved, time consuming, often inaccurate.
– Buildings owned by different groups, no consolidated tracking across ownership borders.
This results in inaccurate space need communication.
– Lack of graphical planning tools based on architectural view model makes allocating and
assigning space a long, inefficient process
– Not being able to utilize the corporate strategic manpower planning software (SAP SEM) for
short/long term planning for space. No inclusion of space planning into corporate strategic
planning. Results in uncoordinated decision making, operational rather than strategic focus.

Current Situation – Continued
Multiple systems/applications
– Continued use of obsolete solutions
– Fragmented and not integrated systems and databases. They are not easy to maintain.
Many technologies (and skills) to support (current development environment conflicts with
IT strategic direction). Corporate direction: IT will provide, maintain, and support solutions.
$$$$$$$$$$$$
– Lack of database integration to the CAD systems requires to load the architecture
information of new properties manually or develop new interfaces. Not accessible by other
departments, requires additional administrative effort, resulting in multiple databases and
disconnected processes.
– Only partial information of properties is maintained in each system.
– The current applications/systems do not automate the whole business processes of CB&OS
(no end to end process flow, disconnected and fragmented processes). Critical business
processes are still performed manually or using excel spreadsheet (violates auditing
requirements).
– Only provide very simple/basic operational/management reports
– Do not provide reports to other groups/proponent organizations without involving CB&OS,
adding to administrative workload of CB&OS.
– Decommission of mainframe will threaten current operations (CB&OS still relies on EIS and
other legacy systems)
– Data redundancy such as employee address, location names

Current situation corporate cont’d
– No integration to ERP areas / SAP systems such as
- Human Resources
- Finance
- Logistics (Maintenance, MM, PS)
- Business Warehouses
(no leveraging of existing infrastructure, skills, licenses, and technology).
Following the corporate directions

Current Situation
Residential Properties
– No accurate stocking and inventorying of residential units, currently extracted
from three different systems. Reconciliation problem (manual control and
monitoring required).
– Inaccurate billing to employee (rent collection often delayed)
Current operation
– Requires manual verification and validation
– Time intensive, skill intensive - requires experienced staff (time intensive) that
can properly handle the needs
– No capturing in any system on current status (employee housing or housing
unit)
– Discontinued process flow in various systems, no consolidated
overview/information source
– High operational expenses w/o possibility to monitor or allocate
What is your real estate strategy? How does it tie in with your corporate strategy?

Current Situation
Reporting
Reporting is expensive as extensive interfaces are needed
Integrated reporting not available
Reports cannot be distributed automatically to other departments,
resulting in additional effort for CB&OS

Benefits
Centralized, consolidated, integrated single database
– One financial view
Automation of business processes
– Posting (renting +payment
– Adjustments (rent increase)
– Rent calculation
– Vacancy changes
Replace manual processes
– Ensure audit
Potential to apply rent that represent actual operational expenses

New -
Charge back operation expenses and track them (service charge
settlement)
Control vacancy
Visibility of space + space utilization
– Strategic RE vs. restrict RE operation
Allow the end-use to reserve, assign, free space

OTHERS:
More than 70 systems - now replaced by one
No global oversight - One global database for immediate reporting
access
No ability to close books and understand gov’t assets – Complete
financial oversight and balance sheet per building on acquisition,
disposal, maintenance, and operational costs
Manual journal entries of lease payments, no

Your project
Tips and Tricks
Before
During
After
Extras

Before you begin…
What do you want to do?
Property Portfolio, Posting Engine, Comprehensive Real Estate Management?
What’s your objective and expected outcome?
Continue legacy or improve processes / data quality?
TOOL: DESIGN CHECKLIST
What do you have?
Data quality and data migration
Chunk it right
– Portfolio size, number of objects assigned to contracts
– Translate into SAP data modelling
What does it mean?
Learning more about SAP and SAP Real Estate
– From SAP: AC295, Service Marketplace
– From your peers: ASUG, site visits, reference calls
– From your system implementers

The team - Checklist
Your project team is key to your success!
Are all areas represented?
Your real estate business areas
Your IT / SAP teams
Your change management and education teams
Executive sponsorship
Integration areas
– Finance (AP, AR, Assets…), Maintenance, Procurement…
Is your team ready to execute?
Knowledgeable on SAP and SAP Real Estate Management
Access to all tools and documents
Relieved from their previous full time duties
Access to an RE sandbox
Does everyone share the same project goals?

Methodologies
Different system integrators and organizations use different
methodologies.
Regardless of methodology, there should be:
Existing real estate best practices to start with
Requirement analysis
Process description
Blueprint document(s) which translates all of the above into
configuration and RICEF needs
Project plan with schedule, resourcing, change management,
training, and reviews

Tools of the Trade - SAP Solution Manager
Supporting Function (Basic Configuration and Settings)
Managing Property Portfolio (ERP037)
Business Processes
Managing Contracts in SAP RE (ERP078)
Managing Sales-Based Leases (ERP079)
Service Charge Settlement (ERP080)
Adjustment of Conditions (ERP077)
IMPORTANT: These processes have been defined under the Product
Context mySAP ERP 2004 (Settings Products and Systems
mySAP ERP 2004)
SAP Solution Manager Version for mySAP ERP 2004 - ST ICO 140
Also: Roadmap Composer, Solution Composer

General tips
Don’t rush the design
Pick the right release
Get all team members trained up
Have system ready
Prototype and validate
Explore all alternatives, and their impact
Document all decisions
Use Solution Manager
Identify delta, and look to use toolsets provided

Making the right decisions
Architecture vs Usage
Measurement types
Contract types
Usage types
Condition types
Best practices

Usage and Architectural View
Usage View
Ownership view
Financial view
Tied into organizational elements
within SAP
Seamlessly integrated into SAP
Financials, especially Controlling
Linked to contractual relationships
BAPIs for graphical integration / data
upload
Links to facility management
components (use only if architecture is
not available)
Architectural View
Exact physical description of real
estate
Flexible hierarchy, naming, and
structure
Great for technical real estate
management / facility management
Provides overview if multiple company
codes share one facility
Allows for technical roles
BAPIs for graphical integration
Links to facility management
components – great mapping of actual
structure of facility
OPTIONAL

Measurement types
All dimensions (ft2, # of people, USD…)
Industry standards (ANSI, BOMA)
Anything you want to count
Dependent on object types, usage type
Can be used for calculation formulas
– Examples: Property Tax

Example for using configuration: Property Tax solution
Scenario:
The customer has to pay property tax for all owned
properties or buildings on a regular basis
Assumptions
The city fixes the property tax for each building / property
The fixed amount is valid until the city sends a new tax notification
Idea
Use the contract and the calculation of conditions (instead of recurring
documents) to calculate and post the property tax
Make the system handle the resulting periodical
postings:
Customizing:
Set up a contract type “Property Tax”. Main Partner Role Contract Partner is the
city (vendor)
Set up a measurement type “Tax Base” valid for property and/or buildings
Set up a condition type “Property tax” which is for vendor postings. Calculation
rule is “Measurement” with fixed measurement type “Tax Base”

Contract types – possible uses
Incoming and outgoing leases – commercial, residential, public sector
Internal billing
Retail / percentage rent
Occupancy tracking (no postings)
Easements, right of ways
Environmental liabilities
Sale, purchase
Security deposit
Service agreement
Posting engine
Dependency: usage type, measurement types, role types, object types
Settings – offerer / user, internal / external / GL, partner, screen design, objects,
condition group, number range

Condition type examples
Multiple vendors / payees:
Main condition (12 000 USD/month)
Vendor 1: 15%
Vendor 2: 35%
Vendor 3: 30%
Vendor 4: 20%
Condition purpose “Statistical”
Condition purpose “Actual”
3,600
2,400
Dependent
conditions
4,200
1,800

Usage types
Determines measurements, contract types, screen design, condition
group, field status…
Use them creatively!
Dependent usage types:
Pooled space
General Admin
RS
Office
RS
Storage
RS
Meeting room
RS
Training Area

What can help – Tools of the Trade
Service Marketplace
SAPspeak 101
Helpful transactions
Helpful notes
Ideas of your own
BAdIs, BDT, BAPIs
RE-FX Tables

Tools of the Trade - Service Marketplace
Notes and Tickets
Quicklinks:
– /re All you ever wanted to know about RE
– /bdt Business Data Toolset – Developer’s Manual
– /ides IDES Demo system content and scripts
– /rkt RampUp Knowledge Transfer
– /erp mySAP ERP
– /soa Sarbanes Oxley Act
– /ais Audit Information System
– /releasenotes Release Notes
SAP Education – AC295 Flexible Real Estate Management
Events
http://service.sap.com

Tools of the Trade - how to learn SAPspeak fast
SAPTerm
Online and in-system access
All SAP terminology as created and maintained by SAP terminology
professionals
Use for your own project
What does it mean in which solution?
http://help.sap.com
-> Additional Information
-> Terminology
-> Glossary
OR
Transaction STERM

Tools of the trade – Helpful Transactions
RE-FX Menus:
RECAMENUAPPL Application menu
RECAMENUDEV Technical menu
RECACUST IMG for RE-FX
BAPIs: BAPI, then select filter "ALL" (also unreleased) for general list
BDT exits / function modules:
TA RECACUST, under "DIALOG" for each object, then "Events“
Or under RECAMENUDEV -> Technical Customizing -> BDT Technical Data -> Application Specific
BADIs: SE18
Function Modules (-> APIs -> BAPIs): SE37
Roles: PFCG
BW data sources for RE-FX: RSA5, then go to REFX_ROOT

Tools of the trade - Helpful SAP Service Notes
443311 Enterprise Extension: SAP Real Estate, technical basics
628208 How to activate RE-FX
517673 Release restrictions
771098 Countries, release restrictions for RE-FX
782947 Programming interfaces for RE-FX (for custom dev/ enhancements)
858209 Data retrieval, customer enhancement -> Add. Fields for master data
734981, 681951 Upgrade from 470x200 to ERP2004, New tables for ERP2004
860896 Workaround for accruals and deferrals < ERP2004
842488 RE-FX and Funds Management
842259 Due date before start of condition
784567 RE-FX and new GL
567815 Real Estate: BDT enhancements via application method
Consulting solutions:
739860 Data migration from legacy system
827025 Classic: Multiple vendor solution

Tools of the Trade – for Ideas of Your Own
Your advantages
Easy and fast adaptation and enhancements to
customer-specific needs without modification
Our Solution
Easy 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 Management
Easy management of all types of documents related to your property via
SAP Document Management System
High-performing mass print for all types of application data via Adobe
Integration
Comfortable creation of single print documents or CO-Planning via
Microsoft Office Integration
FLEXIBILITY TO
ACT TODAY

BAPIs, BAdIs, BDT, and what else is new?
BDT
used to put the dialogs together, tying Function Modules, Field Groups together to form
views, screens, screen sequences etc. and is found under “dialog” in the RE Flex IMG for
each object. Create your own screen sequences, using the standard Field Groups to produce
your own displays.
Also associated with BDT are lower level code-building tools referenced as Events and
Tables in the IMG “Dialog” section. These are for custom routines and are technical in
nature.
BAdI
used to build Substitutions and Validations and UDF Fields in the standard tables or append
structures to the standard tables, and is found under “Implementation Enhancements “ in the
IMG under each RE object. Changes using the BADI Builder (SE18) would be similar to User
Exits in that they are guaranteed to be upgrade compatible by SAP.
BAPIs
Interfaces to get data into the system, out of the system, and to exchange data. This can be
done with external systems, but you can also address the BAPIs via internal programs (SAP
programs, or customer specific ones).
RICEF: Reports Interfaces Conversions Enhancements Forms

The system is live…
Tools during production
Tips for end users
The project team leaves – what now?
Networking
How to get help – SAP 911

Tools during productive system use
Worklist – RECACARG
Analyze logs – RECALA
Sets – RE80 or REEXSET
Critical dates – RECARS
Report on notes – RECATM
Update cash flow – RECDCGOL
Change person responsible…
RECACUST for a variety of information
Use SCHEDULEMANAGER for larger jobs
Remember:
• Update cash flow regularly
• Generate new dates regularly
• Archive old transaction data
• Check your logs

Tips for end users
Central transaction for all master data and most reporting: RE80
Check your worklist regularly
Keep data consistent – measurements (architecture-usage)
Use F1 and http://help.sap.com
Share your Lessons Learned with others
Ask for documentation, training material, etc.
Participate in all networks available
Use the IDES system (if available)
Use Sets

The project team leaves – what now?
Ensure all decisions and configuration settings are documented
Prepare knowledge transfer
Have resources available to support when needed
Alternatives: ASM, On Spot Consulting
Don’t depend on others
RE-FX is a rare skill set – acquire it for yourself

Networking
ASUG RE SIG
Your industry peers
Industry events and ASUG groups
Your SAP account team can help you reach out to others
Other industries, similar scenarios
Events
ASUG
SAP account team
System implementers
SAP – SAPPHIRE, TechEd, SAP Real Estate events
service.sap.com/re -> Events

How to get help – SAP 911
SAP
http://service.sap.com (Customer Service Network)
/note , /message
Your SAP account team:
CP/CEM/GSM, TQM, AE, EAM
Your SAP consultants
Your system implementer
Consultants and account team
Your peers
ASUG Discussion Forum
Personal relationships
1) Log off, log back on
2) Call helpdesk
3) Search for Note
4) Log ticket
5) Panic

Group Exercise
Draft a project plan that includes:
Schedule
Resource requirements
Process overview
– Local vs regional vs global processes
– Public vs corporate vs commercial vs residential
– Tool: Design checklist, project plan template, process topics
Your team will have different project plan requirements. Establish
one template but be prepared to discuss where you have
identified different needs
Present your plan to others, and share with them.
Time: 45 minute for group exercise, 15 minute for group
presentation.

Appendix
More useful information…

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.

Education
Two standard trainings are available
AC 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

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.

Legal Compliance for More Countries
Austria
Condition adjustment
– “main rent statement” for residential contracts
– “fifteenths” for commercial contracts
Summarization of tax lines
Italy
Imposta Comunale sugli Immobili (county tax)
Imposta di Registro (registration tax)
Imposta di Bollo (stamp tax)
Summarization of tax lines
Switzerland
Correspondence based on Swiss tenancy law
External heating expenses settlement
Lease-in with ISR
Calculation of fuel consumption
Rent adjustment according to Swiss law
Portugal/Spain
Withholding tax

Languages and Releases
Please also read note: 771098
SAP Service Marketplace: service.sap.com/re Availability

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