SAP Real Estate Management
SAP Real Estate Management solution is a mandatory need for all real estate companies and sap consultants today. As the world is changing with every passing day, it is important for us to adapt to the new trends irrespective of whether they are about regulatory changes, economics, technologies, changing business models, or viruses – trends or changes that significantly influence or impact the real estate sector.
Nowadays, technology is considered a critical business factor especially in the real estate sector mainly due to its influence on operation efficiency and lifecycle costs, and it does all this while achieving the desired results. With the use of the right approach and modern SAP compatible technologies such as Artificial Intelligence (AI), digital platforms such as EY’s Intelligent Delivery Platform for SAP, digital twins, Internet of Things (IOT), robotics, virtual reality, blockchain, Artificial Intelligence (AI) chatbots, sensors, etc., any building can get smarter and autonomous.
What is SAP RE-FX?
SAP Flexible Real Estate Management (RE-FX) is a robust fully functional contract management solution designed specifically for real estate businesses. It provides administrative, accounting, and reporting capabilities, and is IFRS 16 and ASC 842 compliant. SAP RE-FX specializes in streamlining a portfolio of assets and offers its users a centralized repository for the collection and validation of data related to leasing contracts.
It is a fully integrated management solution that has been designed for catering to the needs of real estate businesses. This SAP module is available for both SAP S/4 HANA and SAP ERP. Whether you trade, rent or manage buildings/ apartments, SAP RE-FX allows you to map all your business processes and transactions in a holistic way.
With SAP Cloud Platform, management of your real estate portfolio is empowered with future-proof solutions that help users in utilizing cloud analytics and other services with great ease together with continuous updates and rapid implementation as well.
- SAP Cloud for Real Estate Management
It centralizes the management of your real estate assets and uses built-in analytics to monitor as well as optimize the efficiency and effectiveness of the business operations.
- SAP Asset Intelligence Network
It seamlessly integrates with the SAP ERP, SAP Cloud for Real Estate, SAP S/4 HANA, and allows for the extension of the digital twin to each asset within your building.
- SAP Project Intelligence Network
It provides a common data environment for digitalizing the exchange of information and connect with a digital twin.
Who Might Need It?
In addition to companies that deal in buying and selling of real estate assets, this module can be used by the following:
- Agricultural companies
- Oil & gas upstream, downstream, and transportation
- Banks, insurance companies, and financial institutions
- Leasing companies
- Utility companies
- Marketing companies
- Manufacturing companies
- Public services
- Retail companies
- Real estate management companies
- Transport services like railways, airlines, shipping companies
- Telecom companies
Key Capabilities of SAP RE-FX
Management of Real Estate Objects
- Provides access to a dual view of master data, with a usage view as well as an architectural view to building a building register, building pass, building informational model
- Create, monitor, and manage all types of real estate objects, including land, building, business entity, rental unit, rental space, and rental space objects
- Manage objects that are owned by others
Management of Contracts
- Manage all the contracts that are related to your real estate portfolio, including lease-in and lease-out contracts, vendor contracts, customer contracts, and other service contracts
- Assign any rental object from any business entity or buildings to anyone contract by long-term seating arrangements and room reservations
- Search for rental objects that are vacant and find suitable and appropriate prospects for these objects
Credit-side View of Lease In Processes
- Control cash flows through a credit side view of the lease-in process
- Organize posting of expenses
- Distribute costs of managing and running the building among the tenants as service charges for a particular period
Space Management and Optimization
- Account for architectural structures, technical features, and usage considerations
- Define spaces flexibly and rent them, extracting the spaces from a larger available space
- Plan and track your moves and relocations
- Optimize your internal room and occupancy
Centralized Business Processes
- Integrate postings and reports related to managing real estate assets
- Fully integrated into CO, FI-GL, FI-AP, FI-AR, FI-AA, PS-CD, PS, TR, MM, PM/CS, DMS, and others
- Planning and controlling of a new building, maintenance, and modernization projects
- Manage purchase order processing and commitments for real estate maintenance
- Documenting all the management functions gives you control over all the correspondence and documents related to the business processes
- Ready to deploy the country-specific functions for Austria, Czech Republic, France, Germany, Hungary, Italy, Netherlands, Portugal Spain, Slovakia, Switzerland, and other countries.
The real Estate Management module connects all the business processes across all the departments to ensure better management of your real estate assets.
Compliance with IFRS 16
SAP RE-FX is fully compliant with the International Financial Reporting Standard (IFRS) 16, ASC 842, and other related guidance.
Lease accountants can evaluate the impact of each lease contract on the financial reports and generate validation postings in the accounting software according to the requirements of the new standards. With the present value of a leased asset calculated by the system, a lease liability, and corresponding Right-Of-Use (ROU) asset are automatically created. The system will recognize depreciation of the leased assets on a monthly basis as well as separate the principal and interest portions of the lease payment. The lease will be revalued by the system in case of any rate changes such as an increase in the consumer price index (CPI), the user will have visibility over incremental differences and track all calculations and postings for a given period.
- A fully integrated system to map all business transactions in real estate management
- Reduction of operating costs with improved transparency in expenses
- Single source of truth regarding real estate portfolios and contracts
- More informed decisions based on constantly updated and harmonized data
- Comprehensive document management
- Increased efficiency in the overall management of the real estate
- Reallocate investments to optimize your return on assets (ROA)
- Optimize utilization of workspaces and improve employee productivity
- Comply with new lease accounting standards with native integration into SAP Finance
Push Digits Global is one of the leading SAP consultants in the UAE. We not only provide consulting services but also provide ABAP Developers for your customization needs. Each case is unique and might require individual solutions. Let’s start with a conversation. You will get an individual assessment for your REM processes and REM digitalization strategy.