Sales in Construction

[Former Member]

Hi All

Our Client is into construction. They sell flats. The issue is that how will the sales work here. They will have many flats for one project and many customers. It would be a one time customers and the payer will be different most of the time. Do we have to create material master for each flat separately?

We also have PS integrated and the WBS has to be recorded in the sale order for Milestone billing. Please help.

[jignesh_mehta3]

Hello Adithya, 

Have you explore the option of used Real Estate Sales module supplied as a part of Standard R/3 installation? (IMG - Real Estate & Flexible Real Estate Management (RE-FX))

You can also have a look at below links for further information:

http://scn.sap.com/thread/1925399

http://wiki.sdn.sap.com/wiki/display/ERPFI/INTRODUCTION+-+REAL+ESTATE+MANAGEMENT

http://www.sapphireglobal.biz/sap-real-estate

Thanks,

Jignesh Mehta

[Former Member]

HI Jignesh

Thank you for the information. Do we have any other way to achieve this in SD. Using product hierarchy or anything. The main issue is linking WBS for each order. As we have only one WBS which has milestones for payment.

[jignesh_mehta3]

Hello Adithya,

As a another option I can think of using Material Master Characteristics. Can create a characteristics for Area of the flat, one for number of rooms & another for floor of the flat (for charging floor rise).

Based on the characteristics, you can maintain different condition record & pricing will be determined automatically. Also for each line item in Sales Order you can assign WBS element in Account Assignment Tab.

Thanks,

Jignesh Mehta

[Former Member]

Dear Jignesh

The customer has say around 1000 flats in a project. They have to sell these flats to different customers. Do they have to create 1000 materials or do we have any other option in construction. Please help. Pricing will be manual and so it can be handled easily. The issue is with material creation.

[Former Member]

Hi Adithya,

It is not necessary, customers be one-time customers.  A customer can purchase two flats at different times and there are customers who invest in real estate & also agents. So  you can create customers using normal account groups. There should be a material master for each flat. A unique identity for every flat is required to track your incoming payments during milestone billing.

Karuna

[Former Member]

Hi Karuna,

Thank you for the response. We have one WBS element which governs the Milestone at project level. So I will have to create WBS for each customer or sale order. Is that right?

[Former Member]

Adithya,

WBS elements will be defined for various stages for each project  and last one will be for say Flat construction (with milestones as required). You assign Flat construction WBS element for all sales orders for a project.

Karuna

[Former Member]

Hi Karuna,

When I read few discussions in forum i Understood that we can use one WBS element only once. Is that true or we can use the same WBS element for multiple sale order. Also in the project the WBS elements are not done flat wise but it is stage wise. So the milestone will be same for all customers in a project.