SAP RE-FX Overview (Flexible Real estate Management)
Summary
TLDRThis 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
🏢 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.
📝 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.
🛠️ 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.
🌐 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.
Mindmap
Keywords
💡SAP REFX
💡Real Estate Management
💡Master Data
💡Contract Management
💡Lease Process
💡IFRS 16
💡Space Management
💡Integration
💡Case Studies
💡Implementation
💡Real-Time Scenario
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
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