Manage Your Real Estate for Greater Profitability, Compliance, and Sustainability

Transcription

1 SAP Solution in Detail SAP Business Suite SAP Real Estate Management Manage Your Real Estate for Greater Profitability, Compliance, and Sustainability

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3 Table of Contents 4 Quick Facts 5 Real Estate Lifecycle Management A Key Driver of Success Driving the Need for Change 6 Integrated Solutions to Make Better Use of Your Real Estate Portfolio Office, Retail, Industrial, Residential, and Land Property Supported Real Estate Lifecycle Processes 9 Investment and Construction Management Make Real Estate Investment Decisions and Monitor Projects 11 Sales and Marketing Reduce Vacancies and Accelerate Time to Lease 12 Lease and Space Management Improve Lease Performance and Increase Space Utilization 14 Maintenance and Repair Manage Maintenance Costs and Energy Consumption 16 A Wide Range of Business Benefits Drive Revenue and Growth Find Out More

4 Quick Facts Summary SAP offers solutions for real estate lifecycle management that can help you run your office, retail, residential, industrial, and land property more profitably; safeguard compliance; and help ensure sustainability. The software supports key processes from investment planning, sales and marketing, and lease and space management to maintenance and repair. It helps you manage leasing, handle tenant relationships, make compliant accounting postings, process work orders, and track energy consumption. Business Challenges Optimize investment decisions Limit risk and reduce overhead Solidify tenant relationships Safeguard compliance Track key dates Control energy consumption Optimize workspace utilization Key Features Investment and construction Analyze your portfolio, track investment decisions, bid and award construction services, monitor projects and contractors, and manage cash Sales and marketing Advertise vacant space, qualify leads, track opportunities, and provide lease abstracts and offers Lease and space management Calculate rents based on lease terms, post leases according to financial accounting standards, escalate rents, settle sales-based rents and service charges, track workplace occupancy, and automate moves and room reservations Maintenance and repair management Monitor budgets, measure energy consumption, recover expenses from common-area maintenance, and handle maintenance, repair, and service orders Business Benefits Better decision making on investments for increased profitability Lower construction project risks Cut in administrative overhead for work orders Stronger tenant relationships Improved contract and financial reporting compliance Full awareness of critical dates and energy consumption Increased control of workspace utilization For More Information To learn more, call your SAP representative or visit

5 Real Estate Lifecycle Management For many companies, real estate costs are the second largest expenditure after payroll. Consequently, CFOs are keen to optimize real estate management processes to improve revenue and reduce the overall risk position of the company. SAP solutions help you accomplish these goals by enabling you to integrate your real estate lifecycle management processes into your business strategy and more effectively comply with financial reporting standards. A Key Driver of Success To succeed in a complex and competitive global business environment, companies are looking to manage their real estate assets more effectively. To maximize the potential benefits of your real estate portfolio, real estate lifecycle processes have to be optimized within the organization and aligned with compliance and sustainability goals. Standardizing and automating real estate processes across your extended enterprise helps to reduce administrative overhead costs, improve the quality of decisions, and optimize lease performance. It also helps to reduce the risk of exceeding construction and maintenance budgets and maximize your customer focus. To manage key real estate processes more effectively, you need to comply with lease terms, service-level agreements, and financial standards. You also need to simplify complex lease calculations, such as rent escalation and contingent rent, and manage payments made in multiple currencies. You also have to make financial postings that result from lease management according to the local standards for each country, especially related to taxes. For example, operational leases have to be accrued according to U.S. GAAP. In the future, it will become crucial to assess leases for the balance sheet once the planned new International Financial Reporting Standards (IFRS) for leases are deployed. Energy consumption is another highprofile requirement for real estate managers. Real estate operations contribute greatly to an organization s carbon footprint. Therefore, real estate managers need to track energy consumption of commercial buildings, allocate costs for energy consumption to tenants, and report not only energy consumption but also the progress of energy-saving activities to stakeholders. Driving the Need for Change What do these business requirements mean for your real estate operations? It means new processes must be put in place to align operations and improve investment decisions, reduce project risks, and increase lease performance. These processes must also help you safeguard compliance, meet sustainability standards, and improve tenant relationships so you can run your operations more efficiently. But because most real estate managers rely on manual business processes or different software solutions per department, alignment can be difficult to achieve. Real estate operations often struggle with many issues, such as a lack of customer focus, poor process visibility, and inefficient process flows. Without transparent investment planning processes and consistent lease, maintenance, and repair processes, costs and risks can quickly get out of control. To make informed decisions that maximize the profitability of your real estate portfolio, you need to ensure full visibility across your entire portfolio. SAP Solution in Detail Manage Your Real Estate for Greater Profitability, Compliance, and Sustainability 5

6 Integrated Solutions to Make Better Use of Your Real Estate Portfolio Office, Retail, Industrial, Residential, and Land Property There is good news: SAP solutions can help you optimize your real estate lifecycle management processes for all types of properties, including office, retail, industrial, and residential properties as well as land. The solutions leverage reliable, scalable SAP Business Suite software and can be deployed incrementally. By establishing an integrated solution landscape that leverages the following software, you can manage complex portfolio mixes more effectively: SAP Real Estate Management application SAP Portfolio and Project Management application SAP Supplier Relationship Management application SAP Customer Relationship Management application SAP ERP Financials solution SAP Enterprise Asset Management solution SAP Common Area Maintenance Expense Recovery application (available in North America and Australia) SAP software helps you streamline and optimize business activities such as investment planning, construction project management, sales and marketing, lease and space management, and maintenance and repair as well as a variety of essential support processes (see table). It also aligns essential real estate management processes, connecting them across departments to help you make better use of your real estate portfolio (see Figure). By running integrated software, you benefit from a centralized database of property information, combined with robust analytical tools and powerful functions for property-related processes and decision making across your enterprise. Supported Real Estate Lifecycle Processes Area Process Example Investment and construction Sales and marketing Investment planning Property acquisition Construction project management Master data management Asset accounting Project accounting Campaign support Lead management Projected cost and revenues Calculation of the potential return of various investment alternatives Approval tracking Contractual agreements with vendors Related payments and terms Work breakdown structure with tasks, budgets, and timelines Purchase orders for construction services and material Data on real estate usage, architecture, and land Documents and optional visualization in geographical information systems (GIS) and computer-aided design (CAD) software Capitalization of acquired land and completed construction projects Depreciation Planning and monitoring of budgets Promotion of vacant space to the real estate market Identification of potential leads for later lease negotiations Identification and qualification of potential tenants

7 Sales and marketing Lease and space management Maintenance and repair Opportunity management Lease abstract Real estate search Lease offer Lease management Contingent rent management Rent escalation Space management Move management Room reservation Cost accounting Accounts receivables and payables Service charge settlement Master data management Work order handling Energy reporting Budget accounting Accounts payables Cost accounting Generation of opportunities for later lease agreements Projection of contract volume and contract closure probability Concise information about the offered lease to prospective tenants Support for real estate offers and demand Matching of offers and demand Creation of lease offer Issuing of lease after obtaining necessary approvals Handling of all lease details Management of tenant and landlord information; rental fees; assigned stores, offices, and apartments; and reminders of critical dates Calculation and invoicing of rental fees that depend on retail revenue Automated adjustment of rental fees according to consumer price index (CPI) changes and representative lists of rental prices Assignment of employees to corporate workspace Cost allocation for space usage to cost centers of employees Reassignment of employees to corporate workspace One-time and recurring meetings with service ordering Cost allocation to cost centers of employees using meeting rooms Invoicing to external users Planning, settling, allocating, and monitoring of cost and revenue Creation of open items on customer accounts (income leases) and vendor accounts (expense leases) Invoice creation Clearing of open items against incoming payments and dunning Creation of installments and withdrawal of open item Cost collection by periods and cost types based on vendor invoices Settlement to tenants by time, area, and consumption, which create debits and credits in accounts receivable Data management of functional locations and equipment, maintenance plans and work plans, and meters Notifications, work orders, and assignments to technicians Framework agreements with service providers Meter structure per energy type Creation of measurement documents Creation and monitoring of budgets by maintenance type Invoice verification for maintenance services and assignments to budget items Cost collectors for service charge settlement Cost planning, allocation, settlement, and monitoring of cost and revenue SAP Solution in Detail Manage Your Real Estate for Greater Profitability, Compliance, and Sustainability 7

8 Figure: Connecting Processes to Optimize Your Real Estate Portfolio Investment and construction Sales and marketing Lease and space management Maintenance and repair Construction Investment planning Property acquisition Construction project Sales and marketing Campaign Lead Opportunity Lease administration Master data Lease abstract Real estate search Lease offer Lease Contingent rent Rent escalation Service charge settlement Facility management Space management Move management Room reservation Master data Work order Energy reporting Accounting Asset accounting Project accounting Cost accounting Accounts receivables Budget accounting Accounts payables Cost accounting Our solutions for real estate management leverage reliable, scalable SAP Business Suite software and can be deployed incrementally. By establishing an integrated solution landscape, you can manage complex portfolio mixes more effectively.

9 Investment and Construction Management Make Real Estate Investment Decisions and Monitor Projects Overseeing acquisition and construction projects means deciding whether, where, and when to buy, construct, or lease property and then monitoring the budget, completion times, and scope of your project. Automating collaboration with suppliers, including the bidding and award process, can save time and keep you on top of key project dates. SAP Real Estate Management helps asset managers keep acquisitions and construction projects of all sizes on track while helping executives align projects with corporate strategy. The software links investment planning and property acquisition with construction project management and the procurement of related materials and services. In addition to capturing and analyzing data to assess all investment alternatives and proposals, you can: Run analytical reports about investment alternatives or actual projects, including their key data and approval status Manage all property acquisition contract details as well as documents, postings, payments, and workflows regarding property acquisition Track bid and award processes and monitor project budgets, milestones, and deliverables Control all property information including architectural, usage, and land data Gain full support for project and asset accounting With the SAP Portfolio and Project Management application, you can gain total insight into your property portfolio, including all investment alternatives and their approval status. With SAP Supplier Relationship Management, you can save time and effort in supplier collaborations and gain full control of bidding and acquisition processes. SAP Real Estate Management helps you to track all acquisition and disposal agreements. Investment Planning Cultivate all of your investment planning processes for acquisition, construction, and modernization projects in one place. SAP Portfolio and Project Management enables you to maintain all aspects of your investment proposal, including the creation of investment programs and ideas, cost and revenue planning in all relevant variants, and analysis of key criteria such as return on investment and net present value. You can use the software to send your proposal to decision makers through an approval workflow and track the approval process. Once approved, you can monitor your investment by creating a project based on the approved variant of the appropriation request. You can then transfer cost and revenue plans into a budget, monitor progress, and analyze deviations from plan. Property Acquisition Support your property acquisition processes by collecting all acquisition-related documents, such as maps, static information, and experts opinions, in one location. SAP Real Estate Management enables the creation of acquisition contracts, specification of payment terms, and assignment of master data, including related site, building, and land, plus work breakdown structure (WBS) elements. The software helps you manage a contract s approval status and create a reminder list so you don t miss important dates. You can also use the software to send the contract for approval to decision makers and then activate the approved contract. Finally, the software helps you execute postings and payments. You can post the contract and pay open items through vendor accounting processes and assign financial asset and plan depreciation. When it comes to managing your real estate assets, SAP solutions enable increased visibility and collaboration to help real estate managers make better investment decisions, bring construction projects under control, and increase lease performance. SAP Solution in Detail Manage Your Real Estate for Greater Profitability, Compliance, and Sustainability

10 Construction Project Management Plan and monitor construction, modernization work, and refurbishments with specialized project management tools. With SAP Portfolio and Project Management, you can set up your project structure with WBS elements; assign budgets, resources, and milestones; and create work packages using a WBS element or activity. You can use SAP Supplier Relationship Management to send out bid invitations on construction materials and services and then compare, weight, score, and evaluate responses. You can also track bids you ve accepted or rejected and then award and monitor winning bids. The software helps you manage procurement processes like generating purchase orders on construction services and materials and monitoring delivery. You can also monitor all aspects of the project, including budget utilization and percentage of completion. The software also helps you analyze critical-path aspects of the job and enables you to update the project based on progress and required changes. Master Data Management Manage all of the master data for your real estate property. SAP Real Estate Management enables you to maintain architectural data, including hierarchy of buildings as well as parts of buildings, floors, and rooms. You can define measurements and object assignments and build an interface to vector data in computer-aided design (CAD) software. To help you manage usage data, you can create sites, buildings, and pieces of land in the software and assign company codes, posting terms, measurements, and objects. You can also structure space into rental units and pooled spaces and include default rental conditions, all of which you can then analyze as needed. The software supports data management for land owned by your company. You can create parcels of land on a smallest-unit level and maintain ownerships, space, parcel updates, usage, and encumbrances. The software provides an interface with geographical information systems (GIS) vector data to connect a physical location to the data. Asset Accounting Gain support for asset accounting. With SAP ERP Financials, you can create new assets, including the capitalization of acquisition contracts and construction projects. The solution also supports asset depreciation calculations and posting or withdrawal of the asset when it is sold. Project Accounting Post vendor invoices against budgets. SAP ERP Financials simplifies your efforts to post invoices in accounts payables and assign WBS elements. You can pay open items or run a payment program and automate it as a batch job if desired. You can then settle the project and capitalize the investment in asset accounting. Our solutions can optimize lease administration by reducing the time and effort involved in handling recurring procedures, meeting legal requirements, and elevating tenant retention rates and related lease revenues.

11 Sales and Marketing Reduce Vacancies and Accelerate Time to Lease In quickly growing markets and highly competitive environments, real estate managers have to effectively market and advertise available space. They must identify and qualify prospective tenants, cross-sell to existing tenants, negotiate and prepare leases, and match the right space to prospective tenants. You must be able to carefully track these steps from the initial campaign to the lease signing. SAP Customer Relationship Management and SAP Real Estate Management help you accomplish all of these tasks and provide a comprehensive way to: Plan campaigns for promoting vacant space Track prospective tenants as leads Manage actual opportunities to close a lease Summarize the details of a potential lease to the prospective tenant Match rental contract offers and real estate requests in a real estate search Create a lease offer With this support, you can consistently promote your retail, office, and residential space. The software can help you more easily develop the right offer, provide fully consistent lease abstracts, and create a validated, detailed lease offer. By leveraging analytics and reporting functions in the software, you can make the entire leasing process more transparent and optimize relationships with both prospective and existing tenants. The software can help you realize these benefits through the following sales and marketing processes. Campaign Management Manage sales campaigns to promote vacant space to the real estate market and identify potential leads for a later lease agreement. SAP Customer Relationship Management helps you set up a campaign calendar, schedule activities, and assign prospects. It also helps you execute your campaign by enabling you to define campaign elements for automated follow-up activities and track campaign execution. Follow-up activities enabled by the software include collecting feedback from the market via , surveys, or other channels. You can also create leads for leases automatically based on the campaign plan and defined criteria. Lead Management Follow up on leads more effectively. Use SAP Customer Relationship Management to set up the initial qualification level and assign prospective tenants and the person responsible for following up on prospects using , telephone, or customer visits, for example. You can also update the qualification level after interacting with prospective tenants and generate opportunity for leases. Opportunity Management Track potential leases and assess their likelihood and the estimated lease contract volume. SAP Customer Relationship Management enables you to assign prospective tenants and employees responsible for pursuing the opportunity. You can then follow up on opportunities by updating the status of lease activities and the probability of a contract closure. You can also track interactions with prospective tenants that you can conduct by , telephone, or visits to the offered property, for example. Lease Abstract Prepare a concise display of the real estate offered to prospective tenants. You can use SAP Real Estate Management to manage real estate offers and define items such as fixtures and fittings, price, size, and rental or purchase conditions. You can then create a lease abstract, assign pictures and floor maps to the offered property, and send an offer as an electronic file, such as an Adobe PDF or an SAP smart form file. Real Estate Search Transform vacant rental space into offers. You can do this by creating a search request that specifies the location, size and price, fixtures and fittings, and prospective tenant data. You can execute a search for corresponding prospective tenants and offered objects and establish a hit list by maintaining favorites, acceptances, and rejections. You can then select an object and create a lease offer or a lease. Lease Offer Support the negotiation process by creating a detailed offer to the prospective tenant. With SAP Real Estate Management, you can select an offered object, assign a rental unit or extract rental space from a pool, and assign the prospective tenant as a business partner. You can then define conditions or copy default values from the rental object. When you re ready to send the offer, use the software to create a print version or send the offer as an Adobe PDF or an SAP smart form file. You can then track acceptance or rejection of the offer. SAP Solution in Detail Manage Your Real Estate for Greater Profitability, Compliance, and Sustainability 11

12 Lease and Space Management Improve Lease Performance and Increase Space Utilization To ensure compliance with lease terms and financial reporting standards, it is particularly important that you handle all leases properly. It is equally important for your bottom line to minimize lease expenses, meet lease deadlines, maximize lease income, and fully occupy corporate workspace. To improve lease performance and increase space utilization, you must carefully track space utilization, plan and monitor costs and revenues, and view critical dates in real time. You must also streamline key lease and space management processes as much as possible. SAP Real Estate Management provides lease and space management support and enables a comprehensive way to: Administer all income and expense leases, including critical-date monitoring, renewals, and notice for termination Automate calculation and settlement of contingent rents Automate rent escalation based on a consumer price index (CPI) or other criteria Assign employees to a workspace, plan moves and reserve rooms, and allocate cost for workspace utilization Integrate processes into accounts receivable and payable and cost accounting With this support, you can accelerate lease outs, lower costs from expense leases, increase revenues from income leases, and improve space utilization while complying with financial legal requirements. By leveraging analytics and reporting functions in the software, you can make better lease and space management decisions that optimize the performance of your portfolio. SAP Real Estate Management can help you realize these benefits through the following lease and space management processes. Lease Management Enable better lease performance through timely postings and monitoring of critical close dates. To help you manage relevant lease details, you can assign rental objects and parcels of land and link the lease to CAD software. With SAP Real Estate Management, you can create leases that include terms, payments, and posting rules. The software enables you to collaborate with business partners and vendors for the leased property and assign the lease to rental objects. In addition, you can initiate the approval process and release the property once approved. To monitor critical dates, you can set up rules for renewal, termination, and rent escalation, and add other timesensitive terms relevant to the lease. You can then update the critical-date status after related tasks have been completed. Contingent Rent Set up contingency terms for rental agreements when the rental rate is based on a percentage of sales or on a unit price per quantity of products sold. This feature supports income as well as expense leases. With SAP Real Estate Management, you can define sales-based contingencies. You can define minimum and maximum rent and advance payments rules as well as reporting rules and frequency. The software also helps you track sales reports so you can collect sales information on units per product assortment by day, week, month, quarter, or year. You can update reported sales using real-time data with links to point-of-sale data management systems. You can then calculate the percentage of sales or the amount of units sold and create an invoice. Sales-based rent can be settled by posting a credit or debit to a customer s or vendor s account and making adjustments for advance payments. Rent Escalation Adjust rents in a timely, accurate, and efficient manner according to different criteria, such as a consumer price index, a representative list of rents, a servicecharge settlement result, a sales-based rent settlement, or other criteria. You can do this by maintaining rent escalation rules in your leases and collecting Although the real estate lifecycle looks the same in all industries, our solutions for real estate lifecycle management are flexible enough to handle different real estate scenarios such as retail, office, industrial property, and land worldwide.

13 escalation-relevant data from index values or representative lists of rents. You can then execute escalation runs by selecting relevant leases and running a rent adjustment program or by manually updating the proposed adjustments. Finally, you can print correspondence related to the adjustment and activate it. Space Management Ensure full transparency on how corporate workspace is used within the organization. First, you need to define architectural space as a workspace. You can then assign employees as business partners to the workspace, including cost object assignment. You can also assign contractors as business partners and include contractor data, such as contractual framework agreements. You can then allocate costs to internal cost objects or charge contractors via the agreedupon framework agreement. Move Management Manage moves with full transparency and control. To create your move plan, specify who will move and to where, plan the occupants of the target rooms, and enter individual move dates if you wish. You can also visualize the move plan in CAD software. When the time comes, initiate the move plan by activating the released entries in the list of target rooms and visualize new occupancies in CAD software. Room Reservation Coordinate room reservations while ensuring high space utilization and keep track of deviations. SAP Real Estate Management enables you to create and maintain room data in the architectural view, manage room availability for meetings, and determine prices for usage and services. You can maintain data on who is authorized to book a room as a business partner. You can also create framework agreements as real estate contracts so you can charge external parties for room use. You can create room reservations by selecting the room type, defining the time and recurrence of use, and selecting an available room. You can then assign who will attend the meeting and specify required services. To allocate costs, you can assign one or more account assignment objects or use the cost center assigned to the entered business partner. You can then allocate the costs to cost objects in management accounting and charge external parties for using rooms by creating debit postings on their accounts receivables. Cost Accounting Perform management accounting for all lease and space management processes. You can plan costs, input activities, track actual cost and revenues, and calculate key statistical figures. You can also monitor and repost costs, revenue, and line items. The software allows you to allocate activities internally and execute cost settlements and assessments. You can then distribute costs and revenues, execute periodic reposting, and share key statistical figures. Accounts Receivables and Payables Ensure the correct calculation of rent settlements and enable comprehensive cost and revenue monitoring. With SAP Real Estate Management, you can execute periodic accounts receivables and payables postings in SAP ERP Financials. You can print invoices for tenants and credit notes for landlords, clear open items, and execute dunning procedures. You can also execute one-time postings by selecting relevant posting procedures and then specifying the appropriate vendor or customer. You can enter the amount and the tax type and execute the posting. To maintain tenant accounts, you can create installments, withdraw irrecoverable debts, and execute direct debits. The software supports improved decision making through the use of automated reports based on such key performance indicators as vacancies, utilization rates, costs, and revenues. SAP Solution in Detail Manage Your Real Estate for Greater Profitability, Compliance, and Sustainability 13

14 Maintenance and Repair Manage Maintenance Costs and Energy Consumption Effective maintenance and repair management can help you avoid budget overruns that cut into your margins and bottom line. Automating manual, paperbased processes for repairs and maintenance saves time and money. The right support can also help you accurately track energy consumption across your facilities. SAP Enterprise Asset Management, SAP Real Estate Management, and SAP Common Area Maintenance Expense Recovery help you integrate, streamline, and automate facilities operations and increase process and spending visibility, making it easier to: Plan and monitor budgets via sophisticated reporting and alerts Automate the exchange of maintenance, repair, and service orders and confirmations Automate vendor invoice processing Create, process, and monitor maintenance and repair orders Measure and report energy consumption Recover expenses for common-area maintenance from tenants Armed with integrated functionality and timely insight, you can proactively keep projects within budget, lower processing overhead costs, consistently fulfill servicelevel agreements, and allocate energy consumption by location. SAP Enterprise Asset Management supports the following maintenance and repair processes. Service Charge Settlement Service charge settlement functionality helps ensure full cost allocation to related properties according to energy consumption and space usage. SAP Real Estate Management and in the case of tenant-individual agreements, as is the case in North America SAP Common Area Maintenance Expense Recovery support service charge settlement. The software enables you to create master data where you can define settlement units with periods, settlement rules, and cost collectors. You can assign rental objects to participation groups and assign meters to rental objects and settlement units. Tenant-specific agreements can then be defined on the lease. To prepare a settlement, you can assign vendor invoices to service charge keys and cost collectors and collect information on energy consumption during the operational period. The software supports the creation of leases with rental object assignments, advance payments, and exceptions from settlement rules. To execute a settlement after the operational period is over, you can calculate the portion of service charges based on time, space, and consumption. You can also calculate the portion owed by the tenant based on time of occupancy and deduct advance payments. You can print the settlement and post the settlement result on the customer s account. Master Data Management Master data management ensures full tracking of all technical building details relevant for maintenance, repair, and services. You can create equipment and maintain key criteria of the equipment in a classification system. You can assign equipment to functional locations and plan maintenance by defining preventive maintenance strategies for both the functional locations and equipment assigned. To accomplish this, SAP Enterprise Asset Management enables you to set up a technical hierarchy within a building. For example, you define floors and rooms Different stakeholders are interested in seeing your organization achieve various key performance indicators. To align your reporting strategy with their goals, you must understand their needs and answer their questions.

15 as functional locations and maintain their key criteria, such as square and cubic footage, using a system of classifying locations. You can link master data to real estate objects and interface with CAD software. Work Order Handling Provide a higher level of service by standardizing maintenance and repair processes. SAP Real Estate Management supports the creation of work orders based on ad hoc requests or maintenance plans with reference to internal and external service providers. You can use existing framework agreements, integrate purchase requests, or refer to defined maintenance and work plans. To expedite work order processing, the software facilitates the receipt of order confirmations from internal and external resources. It also streamlines order settlement and cost collection for later recovery from internal and external space users and includes automated cost allocation. You can also use the software to monitor work orders, including the status, completion time, and costs, and then check budget utilization by committed and actual costs. Energy Reporting Keep tabs on energy usage by creating and assigning meters to functional locations, sites, buildings, land, rental objects, and settlement units. You can use SAP Enterprise Asset Management or SAP Real Estate Management to measure consumption by energy type and building and create measurement documents. You can use this information to report on energy consumption and analyze actual consumption. Optionally, you can allocate energy consumption expenses via service charge settlements with SAP Real Estate Management. Budget Accounting Control budgets and avoid budget overruns through extensive monitoring functionality. SAP Portfolio and Project Management provides tools to create budgets for facilities management activities with full integration to finance. You can also process requests for budget approval via an integrated workflow system. You can monitor budgets by defining thresholds for budget consumption that create automated alerts. The process is streamlined further when you set up automated posting of maintenance and repair orders against budgets. To facilitate monitoring, you can create or enhance reports and dashboards to suit individual needs. Accounts Payables Facilitate vendor accounting by allocating operational costs and automating vendor invoice processing. SAP ERP Financials enables you to streamline vendor accounting processes with automatic processing of invoices, including postings and payments. Cost Accounting Help ensure full management accounting for all maintenance and repair processes. SAP ERP Financials supports your efforts to plan costs, input activities, track revenue, and prepare key statistical figures. You can also monitor and repost costs, revenue, and line items. The software allows you to allocate activities internally and execute cost settlements and assessments. You can then distribute costs and revenues, execute periodic reposting, and prepare key statistical figures. SAP solutions provide complete support for managing the lifecycle of all types of real estate. You can extend the standard functionality with add-on solutions available through the SAP Consulting organization and SAP partners. SAP Solution in Detail Manage Your Real Estate for Greater Profitability, Compliance, and Sustainability 15

16 A Wide Range of Business Benefits Drive Revenue and Growth When it comes to managing your real estate assets, SAP solutions enable increased visibility and collaboration to help real estate managers make better investment decisions, bring construction projects under control, and increase lease performance. The software helps your extended enterprise reduce overhead costs, report on sustainability efforts, and comply with lease and financial reporting standards. The solutions can also optimize lease administration by reducing the time and effort involved in handling recurring procedures, meeting legal requirements, and elevating tenant retention rates and related lease revenues. This plus increased customer satisfaction and decreased administrative costs can enhance bottom-line growth. In addition, these real estate lifecycle management solutions can make costs more visible and controllable for any type of property you manage. You gain further control of expenses by automating business processes and optimizing maintenance, repairs, and building services. There is also support for improved decision making through the use of automated reports based on such key performance indicators as vacancies, utilization rates, costs, and revenues. For managers in the corporate workplace, the software can provide full transparency into space utilization and the allocation of costs and revenues by department. Find Out More SAP solutions provide complete support for managing the lifecycle of all types of real estate. The software is being broadly adopted by leading real estate managers across industries in more than 70 countries. It leverages reliable, scalable SAP Business Suite software and can be deployed incrementally. You can extend the standard functionality with addon solutions available through the SAP Consulting organization and SAP partners. To shorten your time to value, the SAP Real Estate Management rapiddeployment solution streamlines the implementation process, bringing together software, best practices, and services in a fixed-scope offering that you can expand as your business requirements change. For more information on how to get the greatest value from your real estate assets, contact your SAP representative or visit us on the Web at Flexibility for Industry-Specific Requirements Solutions offered by SAP for real estate lifecycle management are flexible enough to handle organizations in various industries, such as: Airports that earn a large portion of their revenue from leasing out retail space, warehouses, hangars, and concourses Banks that must manage their headquarters as well as networks of local banking offices and often hold and manage real estate as a capital investment using separate companies Building services firms that provide comprehensive property management services in a highly competitive market Energy suppliers that manage properties for power plants, transformers, and customer centers in addition to administrative buildings Facilities managers that handle office space for a company s private use and provide optimum working conditions for its employees Harbors that lease out offices, terminals, sheds, and container facilities to trading companies and shipping and forwarding agents Housing authorities that manage multiple standardized leases as cost-effectively as possible Insurance companies that deal with long-term investments in real estate Manufacturers that lease property to outside contractors and suppliers while managing their own production facilities, warehouses, and offices Office-space managers that emphasize the attractiveness of properties and the satisfaction of tenants to meet the goal of full occupancy Postal services that depend heavily on a highly efficient network of branch offices, logistics centers, and distribution centers Public sector organizations that manage large real estate holdings of government and nonprofit organizations while complying with unique legal and budgetary requirements Railways that increasingly treat their train stations like shopping centers, while managing their track systems, warehouses, and maintenance facilities Real estate investment trusts that are expected to realize the highest possible returns for investors while minimizing risk Retailers that require a perfectly functioning infrastructure of attractive branch stores, modern warehouses, and strategically positioned distribution centers Shopping center managers that must entice shoppers and meet the service expectations of their tenants Telecommunications firms that lease sites for antennas and other infrastructure components

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