What is SAP RE-FX?
Managing large stocks of real estate is complex. With RE-FX, SAP provides a solution for companies to simplify real estate management significantly.
The Flexible Real Estate Management RE-FX is a fully integrated management software for real estate transactions. The module is available for both SAP ERP and SAP S/4HANA. Whether buying or selling, renting or billing - RE-FX allows you to map all business transactions and processes in real estate management in a holistic way.
What does SAP RE-FX mean?
SAP RE-FX is the module name for "SAP Flexible Real Estate Management" or in German: "SAP Flexibles Immobilienmanagement".
What functions does SAP RE-FX offer?
One of the core activities in real estate management is the management of the respective real estate portfolio. The management and control of real estate-relevant business transactions also play a central role. These include posting and monitoring cash flows (rent, service charge settlement, or security deposit agreements) with the object tenants, as well as the entire area management.
Real estate management in master data management is divided into two views: the architectural view for managing the real estate portfolio, and the usage view for representing the usage of the portfolio. Experts and consultants also refer to the "two-view model". This dual view enables particularly flexible management of all types of real estate.
The architectural view is used to record the architecture of a real estate object - for example, a floor or a shop in a building. It is thus about the individual real estate components in the context of inventory management.
The usage view, on the other hand, represents the actual usage of the real estate stock entered in the architectural view. This is a holistic view of the rental contract of the underlying real estate. Information such as terms, conditions, contractual partners, and contract options is displayed.
What advantages does SAP RE-FX offer?
The advantages of SAP RE-FX are:
- A fully integrated system that can be used to map all business transactions in real estate management
- Reduction of costs and effort in real estate management
- More informed decisions based on constantly updated and harmonised data
- Increased efficiency in the overall management of real estate
- Reporting on the entire property portfolio
- Single source of truth regarding real estate portfolios and their contracts (all data in one place)
- Comprehensive document management
The SAP RE-FX module is fully integrated under SAP S/4HANA into asset accounting, accounts receivable, accounts payable and controlling. In Controlling, this includes cost center and profit center accounting and cost-of-sales accounting.
SAP Contract and Lease Management, which is based on SAP Flexible Real Estate Management, can also be used to process leases.
SAP Contract and Lease Management in RE-FX
SAP Contract and Lease Management is a comprehensive administration and contract management for leases within the SAP RE-FX module. This solution allows you to record and manage both leases and the corresponding contract components - throughout their entire life cycle.
The solution primarily supports companies that act as lessees in leasing agreements. The central functions of the module include the recording of all contract components - for example, terms, contractual objects, payment methods or termination and extension options.
IFRS 16 with SAP RE-FX
The solution also complies with the latest accounting standards IFRS 16 and US-GAAP ASC 842. The functions include the initial valuation of the recorded contract components and the automated periodic subsequent valuation of the right-of-use by applying the underlying depreciation methods. Furthermore, the subsequent valuation of the leasing liability is carried out by posting the repayment and the interest expense.
However, additional functionalities are also available, for example, for dealing with contract modifications within the meaning of IFRS 16, such as the handling of contract modifications (term or scope reduction) or contract reassessments.
SAP Contract and Lease Management also provides standard reports to speed up work on financial statements and provide the necessary information. In addition, detailed evaluations help to analyze the leasing portfolio and - based on this information - to make better and more informed decisions.
Does SAP consider the processes of commercial and technical real estate management integrated or separately?
The advantage of the SAP system lies in its high degree of integration. This enables a fully integrated view of the processes. For example, maintenance costs in commercial rental can be passed on to tenants via the operating costs settlement.