7.
Description of Improvements
It is important to outline where the business will realize benefits of implementation. Both in its
use of software, and streamlined business processes.
Process standardization and uniformity across the SAS Region
Improved visibility and accuracy, functionalities for early warning system (especially
for those currently not using a structured system)
One single system to carry out all RE-Management related processes
Integrated solution on SAP
In support of OsA Guidelines in terms of Process Integration and Standardization
8. Solution in SAP.
Describe how this process will be addressed in the product.
The above process will be addressed by flexible real estate component of SAP –
1. Business Partner –
Real estate business partners will be maintained by assigning relevant business
partner roles which allow different views of the business partner depending on
the business function
These business partners can be created from existing customer / Vendor master
records according to the requirement
These business partners can also be created in flexible real estate and linked to
customer / vendor master records
2. Master Data –
Business Entities –
Business entities which contains groupings of Individual real estate objects,
depending on their purpose and/ or geographical location will be mainatined
These business entities are assigned to relevant company codes and relevant
profit centers
Property needs to be mainatined – It forms part of business entity and refers
Only to land and does not Include buildings on it. This object forms the basis for
renting land or parts thereof for ex:- parking spaces, storage spaces etc
Buildings needs to be maintained – It also forms part of business entity. This is
the object on which rooms or areas are rented. Buildings or their parts are the
basis for renting units like for ex:- apartments,warehouses, stores etc
The following rental objects will be maintained –
Rental unit – A rental unit can only be created and rented as a complete object
Pooled space – A pooled space cannot by itself be leased out as an Independent
object. It is a space from which partial spaces are extracted for leasing
Rental space – It is a flexible, rentable space that is to be extracted from a pooled
space for the purpose of renting it
Contracts will be maintained depending on the contract type - A contract
contains Term, rental objects etc. Once a contract is activated, posting and other
relevant processes can be performed
Condition types – Conditions are required for periodic postings from real estate
contracts and are the basis to make postings in FI. Conditions contain the object,
validity period, calculation formula and distribution formula
3 . Business Processes –
Commercial Lease –In :- This process covers the lease-in of commercial rental
objects
Necessary master data as mentioned above will be maintained in the system
On Identification of suitable property contract will be created containing the
terms and conditions for leasing. The contracts under these contract types can be
assigned to all permitted objects
Vendor gives possession of the rental object
Authorized person activates the contract, the contract is released for FI postings
Commercial Lease – Out :- This process covers the lease –out of commercial rental
objects
Necessary master data as mentioned above will be maintained in the system
On Identification of suitable property contract will be created containing the
terms and conditions for leasing. The contracts under these contract types can
Only be assigned to rental object types Rental unit and Rental space
Possession of rental object is handed over to the tenant/customer
Authorized person activates the contract, the contract is released for FI postings
Internal Lease – Out :- This process covers the Internal lease out of rental objects to
different business units
Necessary master data as mentioned above will be maintained in the system.
However, no contractual partner is assigned as it is for own use, instead, an
organizational unit (cost center, Order, WBS element etc) is assigned
The contract is created under the contract type attribute Internal contract
Possession is handed over to the respective business unit
Authorized person activates the contract and the contract is released for FI
postings
Operating Lease :- This process covers operating leases
Leases based on rentals will be represented by rental objects for ex: laptops,
computers etc.,
Necessary master data will be maintained in the system
Contract will be created containing the terms and conditions for leasing
Possession is taken/given by the customer/Vendor
Authorized person activates the contract and the contract is released for FI postings
4 . Periodic Activities –
Postings in FI and CO :- This activity covers periodic postings arising from contracts
Authorized person in accounting center executes periodic postings
FI documents gets posted for the leases (either lease –in or lease – out) depending
on the account determination
CO postings are made automatically once an accounting document is posted. The
system identifies the objects assigned to the contract and transfers the cost/revenue
from the contract to these objects based on distribution rule maintained
Assessment/Distribution cycles would be maintained as per business requirement
for transferring cost
Renewals :- This periodic activity covers contract renewals
Renewal rules are defined for contracts with fixed term
Two alternatives will be provided in the contract a) Option b) Automatic renewal
In case of Option – The contractor / contractee must give a written approval before
effective date
In case of Automatic renewal – No need to approve or activate the renewal
Both the renewal rules can be maintained in one contract if required
When a renewal option is opted, new contract end date is calculated according to
relevant renewal rule
Once renewal is accepted, authorized person activates the contract
Notices :- This activity covers notice rules for contracts
Depending on the data provided in the contract for giving notice and for processing
notice periods, the notices will be generated
Notices can be on objects or on contracts
When notice is received for a contract, the end date for the contract is calculated
When notice is received for a object, the valid–to date on the object is adjusted
