Real Estate Management : Concept : Prereq : Version : Home Builder Scenario

Real Estate Management module is more robust in managing Real Estate properties for activities and processes like leasing, property maintenance like managing repairs etc (when attached to Plant Maintenance module). You can also use it for Lease in’s. (Caution: please associate ‘renting’ wherever lease is mentioned, not to get confused with lease of machinery or financial lease etc.)


The main master data in RE are like Business Entity, Property, Buildings, Rental Units and Lease out. These are called RE-Objects and they are also controlling objects. For example let’s take Big Shopping Mall and you are the owner. The whole Mall will be a Business Entity. The land in there will be created as a Property and the building structure as Building. The several floors or the individual rentable portions will be created as Rental Units. When ‘Mc Donalds’ approaches you to rent one of the floors, you create a Lease out with reference to one of the Rental Unit.


The system automatically creates a schedule of periodic rentals called cash flow and it has the capabilities to debit the customer ‘Mc Donalds’ account with the rent due, etc.


You can also maintain information to land through Land Register.


Prerequisite for Using RE: You need to have FI and CO knowledge before you can use REM.


Version details : 4.5B onwards RE was introduced as a Industry specific module under FI. It became as a part of FI from 4.6B December 1999. The RE-FX came into effect from Enterprise version.


You can continue to use RE Classic even in later releases. But once you activate the RE-FX you can no longer user Classic. There is a switch to start using RE-FX.


RE for Construction : RE is good for post construction and the property is operative. You can use Project system for construction period and settle it to RE objects. By this way, you have the most apt module address the construction process. Subsequently RE module, which is good in capturing the master data of completed construction, can be used for management.


Home Builder:


It"s right for a new customer you should never use RE (classic). Please start with RE-FX.
There is no difference between the home builder solution and RE(-FX).


For construction usually the PS module is used. Create a WBS structure that is based on your construction requirements:


- Land
- Preparation of the land
- frame work
- installations
- architects and engineers

You can use a tree structure for details.

Which module is used in which phase:


(1) Acquire land –> PS
(2) construction –> PS
(3) construction is finished; sell the object –> SD
(4) construction is finished: rent the object –> RE-FX
(5) maintenance of the object –> PM


FI and CO is always required. MM can be used.


source: sdn.sap.com