SAP RE-FX Overview (Flexible Real estate Management)

Summary

This session offers an insightful overview of SAP REFX, a flexible real estate management module within the SAP suite. It covers the evolution from SAP RD Classic to the current REFX, including IFRS16 functionalities. Ideal for those aiming to enter or advance in SAP real estate careers, the presentation outlines the typical real estate process, contract management, space management, and integration capabilities. The benefits of using SAP REFX are highlighted, along with its applicability across various industries and case studies demonstrating its practical use.

Takeaways

• 😀 SAP REFX is a flexible real estate management module within the SAP suite, evolving from SAP RD Classic to SAP REFX with IFRS16 functionalities.
• 📚 This session is aimed at those interested in SAP Real Estate, whether they are professionals in the field or looking to enter it, highlighting its real-time, easy-to-learn model.
• 🏢 The speaker, Steve, has 10 years of experience in SAP Real Estate, with implementations across geographies like the Middle East, Asia, and North America.
• 🔍 The script covers the typical lease process in the real world, from inquiry to contract signing, and how SAP REFX mirrors these processes in its system.
• 🏡 The example of Steve looking to rent a house illustrates the negotiation and contract process, emphasizing the similarity between real-world and SAP REFX processes.
• 📝 SAP REFX requires master data for properties and parties (tenants/landlords) to initiate contracts, streamlining the process from inquiry to contract processing.
• 📈 REFX offers functionalities like contract management, space management, and land use management, catering to various industries beyond just real estate.
• 🔗 It integrates seamlessly with other SAP systems like Finance, Asset Accounting, and Project Systems, and can connect with external systems and GIS maps.
• 🏭 The benefits of SAP REFX include being an end-to-end solution, standardized processes, reduced administrative costs, and real-time integrations.
• 🌐 REFX has a broad market reach, applicable to residential and commercial real estate, small and retail space management, franchising, shipping, mining, telecom, banking, and government land use.
• 📚 Case studies from different industries demonstrate the versatility of SAP REFX in managing lease agreements, from retail management to franchisee fees.

Q & A

What is SAP REFX and how does it relate to real estate management?

SAP REFX, also known as SAP Real Estate Management, is a module in the SAP suite that has evolved from SAP RD Classic to SAP RDFS and now includes SAP REFX with IFRS16 functionalities. It is designed to manage real estate assets and processes, providing an end-to-end solution for lease management, space management, and other real estate operations.

Who would find the session on SAP REFX useful?

The session is useful for individuals looking to make a career in SAP Real Estate, those who are currently in SAP professions, and anyone interested in entering a SAP profession. It is particularly beneficial for those who want to understand the application of SAP in real estate management.

What is the significance of the transition from SAP RD Classic to SAP RDFS and then to SAP REFX?

The transition signifies the evolution of the software to incorporate more advanced features and functionalities. SAP RD Classic was the base module, which was then enhanced with architectural views and other features in SAP RDFS. SAP REFX is the latest iteration, which includes IFRS16 functionalities, making it compliant with the latest accounting standards.

Can you explain the typical lease process in the real world as described in the script?

The typical lease process starts with an inquiry by a potential tenant, such as Steve looking for a two-bedroom house. He makes inquiries through friends, family, brokers, and online property websites. Once he finds a suitable property, he expresses interest, which leads to an offer from the landlord with rental terms. After negotiations, a contract is signed, and the tenant pays the deposit and advance rental. The tenant then moves in, and lease processing activities such as renewals, terminations, and payments occur regularly.

How does the lease process in SAP REFX mirror the real-world process?

In SAP REFX, the lease process is similar to the real world. It starts with master data entry, such as building and tenant information. An inquiry is made, which leads to an offer and then a contract. The contract is signed, and the system handles lease processing, including rental postings, correspondence, and subsequent measurements like contract renewals and adjustments.

What are the key functionalities covered under SAP REFX?

SAP REFX offers functionalities such as contract management, space management, lease aggregations, run calculations, trend processing, service settlement, utilities calculation, and common area maintenance. It also includes integrations with finance, asset accounting, project systems, and external systems.

What are the benefits of using SAP REFX over other products?

SAP REFX provides an end-to-end solution for real estate management, standardization of processes, real-time integration with SAP ERP ECC, and other systems, precise accounting calculations as per IFRS16 standards, and comes with standard reports and analytics. It reduces administrative costs and enhances operational efficiency.

Which industries can utilize SAP REFX for their operations?

Industries that can utilize SAP REFX include residential and commercial real estate, small and retail space management, franchising businesses, shipping and mining, telecom, banking, principal governments, construction, and transport.

Can you provide an example of how a retail management company might use SAP REFX?

A retail management company, such as a mall, can use SAP REFX for lease management of shops, kiosks, and advertising banners. They can manage fixed and percentage-based rentals, utilities services, and cost distribution over various tenants, all within a centralized system.

What is the typical timeline for implementing SAP REFX in a real estate project?

The implementation of SAP REFX typically takes around four to six months or more, depending on the complexity of the project and the customization required. The timeline is based on development workflows, notification processes, and customer goals.

What are some of the additional services or features that SAP REFX can integrate with?

SAP REFX can integrate with external systems, other ERP systems, property photos, GIS maps, and architectural designs for buildings or real estate properties. This allows for a comprehensive management of real estate assets and operations.

Outlines

00:00

🏢 Introduction to SAP REFX for Real Estate Management

The speaker, Steve, introduces SAP REFX as a flexible real estate management module within the SAP suite. It has evolved from SAP RD Classic to include SAP REFX with IFRS16 functionalities. The session is aimed at professionals or those interested in SAP Real Estate, emphasizing its real-time scenario-based model that is easy to learn. The topics to be covered include the typical real-world process of real estate, contract processes in SAP REFX, functionalities, benefits over other products, industries using SAP REFX, and case studies. Steve's background in SAP Real Estate for over 10 years and his experience with implementations in various geographies are highlighted.

05:01

📝 Real Estate Process and SAP REFX Contract Management

This paragraph delves into the typical lease process in the real world, from inquiry to contract signing, and compares it with the process in SAP REFX. It explains the need for master data and counterparty creation in SAP for contract initiation. The paragraph outlines the steps in contract processing, including rental posting, invoice generation, and correspondence. It also touches on subsequent measurements like contract renewal, adjustment, and termination. The speaker emphasizes the ease of learning SAP REFX due to its real-life correlation and introduces the concept of contract management in SAP REFX, highlighting its capabilities in managing various types of contracts.

10:02

🛠️ SAP REFX Features and Integrations

The paragraph discusses the features of SAP REFX, including contract and space management, and its applicability in various industries. It covers the processes and integrations within the SAP suite, such as lease aggregations, run calculations, service settlements, and utilities calculations. The integration capabilities of SAP REFX with finance, controlling, asset accounting, and other systems are highlighted. The benefits of using SAP REFX, such as being an end-to-end solution, standardization, real-time integrations, and compliance with IFRS16, are outlined. The paragraph also provides examples of industries that can utilize SAP REFX, ranging from residential and commercial real estate to franchising businesses and government entities.

15:02

🌐 Market Reach and Case Studies of SAP REFX

This paragraph explores the market reach of SAP REFX, highlighting its use in real estate and non-real estate companies for managing assets like vehicles and equipment. It presents five case studies from different industries, illustrating how each industry leverages SAP REFX for lease management, periodic billing, and cost distribution. The case studies include retail management for malls, franchisee field for billing franchisee fees, and industries like telecom, shipping, and transportation. The paragraph concludes with an overview of the implementation timeline for SAP REFX projects, which typically takes four to six months, depending on complexity and customization requirements.

Keywords

💡SAP REFX

SAP REFX stands for SAP Real Estate Management by SAP, an advanced module within the SAP suite that has evolved from its base module SAP R/2 to SAP R/3 and now includes IFRS 16 functionalities. It is a crucial part of the video's theme as it is the central system being discussed for managing real estate processes. The script mentions its evolution and functionalities, indicating its importance in the real estate industry.

💡Real Estate Management

Real Estate Management refers to the process of overseeing and controlling the use of land or property, including leasing, maintenance, and financial operations. In the video, it is the overarching theme as the script discusses how SAP REFX facilitates the management of real estate assets, emphasizing its role in career opportunities and professional use.

💡Master Data

Master Data in the context of SAP REFX refers to the core information about the properties, tenants, and landlords that are essential for the system to function. The script explains the necessity of having master data for initiating contracts in the system, highlighting its foundational role in real estate management processes.

💡Contract Management

Contract Management within SAP REFX involves maintaining lease agreements, calculating lease payments, and posting financial transactions. The video script describes it as an end-to-end solution for managing real estate contracts, illustrating its comprehensive nature in handling all aspects of lease agreements.

💡Lease Process

The Lease Process is the sequence of steps taken to rent a property, from inquiry to signing a contract. The script provides a detailed example of a lease process in the real world, which is then mirrored in SAP REFX, showing how the system streamlines and digitizes this process.

💡IFRS 16

IFRS 16 refers to the International Financial Reporting Standard 16, which deals with the accounting treatment of leases. The script mentions that SAP REFX includes IFRS 16 functionalities, indicating its compliance with global financial reporting standards and its relevance for companies operating internationally.

💡Space Management

Space Management in SAP REFX encompasses long-term seating arrangements, move planning, and room reservations. The script describes it as a component of the system that caters to the needs of corporate real estate management, highlighting its utility in organizing and optimizing the use of physical spaces.

💡Integration

Integration in the context of SAP REFX refers to the seamless connectivity of the system with other modules within the SAP suite and external systems. The script mentions integration with finance, controlling, asset accounting, and other ERP systems, emphasizing the system's interoperability and efficiency in managing real estate operations.

💡Case Studies

Case Studies in the video are practical examples of how different industries utilize SAP REFX for their real estate management needs. The script provides examples from retail, franchising, and other industries, demonstrating the versatility and applicability of SAP REFX in various business scenarios.

💡Implementation

Implementation in the video refers to the process of setting up and configuring SAP REFX for a company's specific needs. The script mentions that Steve, the speaker, has experience with over 10 implementations, indicating the complexity and the customized nature of deploying SAP REFX in different organizations.

💡Real-Time Scenario

A Real-Time Scenario implies the system's ability to reflect and manage real-world situations as they occur. The script describes SAP REFX as a model that operates like a real-time scenario, making it easy to learn and use because it mirrors real-life processes, such as lease negotiations and contract signings.

Highlights

Introduction to SAP REFX, a flexible real estate management module within the SAP suite.

Evolution of SAP REFX from SAP RD Classic to SAP RDFS and the inclusion of IFRS16 functionalities.

The session's relevance for professionals in SAP real estate, current SAP professionals, and those aspiring to join the field.

SAP REFX's real-time scenario model, making it easy to learn and apply in real-world situations.

Overview of topics covered, including real-world processes, SAP REFX contract processes, functionalities, benefits, industries, and case studies.

Steve's introduction, with 10 years of experience in SAP real estate across various geographies.

Description of a typical lease process in the real world, from inquiry to contract signing and lease processing.

How SAP REFX mirrors real-world processes, from contract initiation to lease processing.

The importance of master data in SAP REFX for managing buildings, flats, and other real estate objects.

Contract processing in SAP REFX, including rental posting, service settlement, and revenue recognition.

Subsequent measurement in SAP REFX, covering contract renewals, adjustments, and terminations.

SAP REFX's functionalities, including contract management, space management, and land use management.

Integration of SAP REFX with other SAP systems such as finance, controlling, and asset accounting.

Benefits of using SAP REFX over other products, such as end-to-end solutions, standardization, and real-time integration.

Market reach of SAP REFX, applicable to various industries including residential, commercial, and government entities.

Case studies from different industries, illustrating the practical application of SAP REFX in real estate management.

Project timeline for implementing SAP REFX, typically ranging from four to six months depending on complexity.

Transcripts

hello everyone

i welcome you all for overview of sprdfx

flexible real estate management

it is one of the modules in sap suit

sap rdfx has been involved over the

years from

its base module sap rd classic to

sap rdfs and now to sap refx along with

uh ifrs16 functionalities

now this session is useful for those who

want to make career in sap real estate

uh those who are in sap professions at

this moment

or those who want to get into a sap

profession sap real estate is uh

the model itself is like a real time

scenario so you know

it's easy to learn now before we move

uh to our effects let us understand

topics we are going to cover today

so topics are first we are going to

cover what is the typical process

uh of these in a real world what we

really do

second is sap refx contract processes so

how the real world processes

are similar that we follow in sapr

effects

then functionalities that are covered

under rari effects along with the

processes and integrations

the benefits of using sap rdfx over

other products

industries using sapr efx

to understand the market reach

and finally some of the case studies

where how is it the area this is used in

various different industries

okay so let's move ahead so something

about me my name is steve

i've been working in sap real estate for

around 10 years

i have experience in various geographies

like middle east

and in asia and in north america

i have done around 10 plus

implementations of sap

right from re classic to wi-fi

16 okay so let us uh

start with typical lease process in real

world

okay so what we do generally okay let us

assume

the as me okay steve is a person who is

looking

to rent a house and now uh

typically my requirement is i need a two

bedroom house

around a thousand square feet and all

these things

and then i have uh some options to do

inquiry right i do inquiry with my

friends and family

and second i do inquiry with the you

know

brokers in that area and i do inquiry on

the

online photos like you know property

website so in this example we will

consider property website so

the steve has made an inquiry on a

property website so while in

entering his requirements he found one

unit

uh which is fulfilling his requirement

like two bedroom house

along with a thousand square feet of

area

which has a good fittings and pictures

and everything and he expresses interest

so as soon as uh steve expressed the

interest

it goes to the landlord now

the next time he step is landlord you

know provide an

offer to steve and offer will have all

the details you know how much would be

the rental

what will be the security deposit what

will be the terms and conditions and

penalties and everything in the offer

so assume that uh landlord is saying the

rent for the

two bedroom house is around let us say

10 000 a month

but steve feels it's very high for that

particular you know

area and fascinating he's his counter

he want to negotiate so next day it goes

into negotiation now

let us say after a couple of meetings

and negotiations

landlord finally agrees to give uh

you know that particular house amount

and they agree they agree and design the

offer

and which get into a contract a contract

is a legal document of

legal document and the binding okay so

once contract is signed steve will be

paying the

deposit along with the advance rental

and then landlord will handle that so

once he got the key

then he will move in uh to the new house

along with the family

and next is you know lease processing

where you know there will be a regular

attendance of the lease

there might be a renewal termination and

i just want the frontal and all these

activities

okay so this is a typical cycle in a

real world

now when we come to sap real estate or

recipe our effect

is quite similar so just to start a

contract

in the system we need two things first

of all we need remastered data so we

need a building in the

you know system we need all those flats

and the floors and everything

and second is to create any contract we

need another party that is either a

tenant or a landlord

so we assume that in our system there is

a master data so there is one society

society has four buildings every

building has ten floors and every four

there are

let's say five flats now

the first thing is i got an inquiry from

uh applicant or prospect because inquiry

cannot be

uh from the tenant so initially he is a

prospect

now from that inquiry it goes into the

offer

offered to contract once contact is

created we can print the contract we can

sign both the parties and we can send

upload the contacts into the system we

can email all the contract invoice

reminder but he says everything

to the tenant of landlord and then we go

to the contract processing

so in contract processing there are

generally there are three steps one is

contracts processing

which generally happens on a monthly

basis but it

it really depends on company's own

policies

so uh the first is rental posting of a

contract so let's say if the frequency

is on monthly basis then there will be a

monthly posting

of this rental to the finance generation

of invoices and into

the tenant collection of you know

rental then if it is a commercial lease

there will be some sales by settlement

and there are service charges

for example power water supply or

something which is you know provided for

an entire mall

then we have uh revenue and express

recognition

and lastly we have after 16 treatment if

it is

coming at least in type of a contract

second is correspondence you know we can

train we can email

the invoices reminder sellers and other

documents uh

basically it's a communication between

the company and the

tenant or the landlord now second part

is subsequent measurement

so these are the additional transactions

uh once the lease is created so first is

renewal of contract so

again we can have renewable automatic or

manual then adjustment of contract

so adjustment of contract would be on a

multiple level so you know

there is a fixed adjustment increase or

decrease in frontal

or there is a percentage increase in

degrees in the rental every year

if it is a you know long-term contract

and also

there might uh there is a possibility of

index response based on

a particular atm now then there is a

termination of contracts so you know

expiry of the contract and

early determination of the contract and

all such transactions

so what happened in real life uh

lease scenario is the same thing that's

going to happen in sap real estate

and this is where we say it's it's easy

to learn because you know we can

visualize what we do in real life that's

what we are doing in sap our effects

okay so let's move ahead now next is

some information okay so sap or efx

stands for principal real estate

management

and this product has been evolved over

period after time

now sap has released his first realistic

product as sap r classics of realistic

classic

then they come up with second version uh

with architectural view and so many

other functionalities

into sap or vfs now recently

we have sap refx along with ios 16

functionalities

which is uh companies need to be

compliant from the 1st of january 2019

orders

now sap idfs can be used in various

industries provided they have

pleases okay

next is what functionalities do sap

rdfx offer so let's go to the first

so contract management okay so sap or

efx is

end-to-end lease management system where

you know you can maintain your master

data you can maintain all your leases

all your lease calculations can happen

in our effects and all the postings to

finance will be done from our effects

itself

so it's end-to-end solution for real

estate management

so in contract management what kind of

contract we can create

so basically two types of contracts we

have one is these out with your tenants

and second it's business with your

landlord or

property owner and then we can maintain

uh the contracts for non you know re

objects like

equipments and vehicles and all other

iphone 16 releases

also we can have interpolation internal

leases in the company

in the departments we have service and

maintenance thesis with service

providers

and then we have security deposit visas

which you know

which safeguards the maintenance

secondly uh smartfx provide

another model called as space management

which

comprises of three things one is

long-term sitting arrangement you know

where

companies do take

seats on rental it happens

it's called as corporate real estate

management then move planning

and then room reservations then third we

have a land use management which is

generally used by government entities

where you know they have these land

registries parcels and contracts

moving further what uh what are the

processes and integrations that

we can see as a part of sap suit so

lease aggregations

i mean it really depends on what kind of

leases we want to

create so some of the examples are lease

out please

then we have our system these days

security deposit leases

third party leases equipment leases and

services

now run calculations we have run

calculations trend processing for lease

in and result both

we have self-paced rental you know where

the additional

rental is calculated based on the total

sales of processors of a shop

service settlement where services are

provided by the real estate company and

then abortion may

happen or the cost is distributed based

on the use

and the size of the unit utilities

calculation like i say

it's part of service charge itself

common area maintenance and the cost of

functioning

now sapi affects being a part of

sap su it has inbuilt seamless

integration with finance and controlling

asset accounting project systems plant

maintenance

dms and then it can be connected with

external in

systems and other erp system as well as

property photos

and it can be connected with gis maps

along with artifact designs for a

particular

building or let's say real estate

property and consideration

now what are the benefits of sap rdfx or

other products

so first of all sap aria tax is an

end-to-end

solution because it will hold your

master data

and master later all the calculations

all the financial information increases

second now other effects can be used for

re and non-businesses

as well

which have these pieces or operating

lasers for

you know vehicles and equipments and all

these things

now sap refx has a standardization so

you can have

standardization of eases in one system

it's the single point of

you know single point of property

database and use processing

single point point for finance

processing

uh it reduces administrative

administrative costs

and precise accounting calculation has

precise

accounting calculations as per the

standards it follows

16 then is 17 first with 13

standards refx has a real time

integrations with sap erp ecc

and all the enhancements along with us

it has a real-time integration with

autocad and gis as well

can be integrated with third party

website for example properties

sap r efx comes with the standard

reports and analytics as well

now how big is sap

refx market so as we said sap rx is an

influence solution

right now from 2019 onwards

rdfx can be used for real estate as well

as not real estate uh

companies as well now there are

here are a couple of examples of various

industries

the first one is residential and

commercial real estate

second is small and retail uh space

management

third is franchising business for

example you can take

macronutrients for burger king so

they use refx for the calculation of

their quality

shipping and mining uh these two com

these two type of

industries will use are the effects for

you know releasing of their heavy

machineries

and vehicles and all then telecom

or banking they'll be using uh array

effects for the

reason of pleasing of

the rental units for their atms and

branches and

telephone

we can have uh principal governments

will be using land use management

construction and transport so in

transport we have

you know advertising uh spaces in the

train and buses on a bus stop

now let us see five different uh case

studies

from five different industries

okay so let's start with all so

retail management let us assume i'm

always looking for an erp system for

trend management office shops kiosks

holdings

banners cost management and distribution

of cost over chemicals

so basically it's a mall and all want to

have a lease management system

so their challenge is to get a

centralized place for a master data

centralized and standardized process and

concept management

single point of contact

single point for consumable services

spilling and then

to get erp with integration now

how are the fx is used so mon uses are

the effects to put the logo needs

and below is the master data they have

this they have created the fixed

dimension units of the shops

then kiosks they might have a different

dimension but it changes based on the

tenancy requirements floor rentals

advertising banners etc

but this mall has two types of product

one is the fixed rental which they

collect on

everyone's basis but then they have

some percentage rental uh that should be

collected based on the gross

monthly sales of the shop and the mall

has you know apportionment

of your services for the

power utilities

the next is let's say franchisee field

so let's say a franchisee company like

mcdonald's or kfc your burger king

and they want to use rdfx for periodic

billing of franchisee fees right

so basically they don't own any outlet

and realistic property

so what they do is they have created you

know

master data of all these outlets in the

as a contract object

and then they do their sales space uh

billing on a monthly basis so every

outlet process

their sales your monthly

basis sent to variations and then sells

to their ideas for calculations

sizes franchisees telecom the same way

shipping the same way and then

transportation is the same

okay now with respect to real estate

project timeline

so sap refx takes around you know four

to six

plus months depending on complexity and

other processes to cover

uh typically based on development

workflows notification customer goals

um

again depends on the complexity of the

processes and customization required

okay so this is a overview

of real estate as a module what we cover

in it

uh going further we will start with the

uh we'll start deep diving

into sapr vfx stay tuned

see you in the next session