RE FX Leasing and selling of residential apartments

[Former Member]

Hi Gurus,

We have already implemented RE FX solution in a real estate company which currently deals with leasing of residential apartments and facility management. Now my client is planning to extend with construction and selling of residential apartments.

Our requirement is to create sales unit which is nothing but residential apartment and then to sell those to customers with various pricing condition with different payment plant and all need to be linked with RE FX & PS modules (SD module not yet implemented).

We have explored standard SAP solution for mapping this process. But I am confused between three modules: SD, Home Building Solution & Real Estate Sales (RE Sales)

We trying all the possible option as explained below.

Option – 1: Using SD for sale and REFX for leasing. I believe the sold units will not be leased and leased units will not be sold. In SD u can create every unit as a material and each sale will be represented by a Sales order.

Option – 2: Using REFX for both sale and leasing. In that case there is no need for SD. But here the payment plan and price determination is not happening.

Option – 3: Using the REFX leasing and Home Building Solution for sales, but not sure about various pricing condition with different payment plant

Option – 4: Using the REFX leasing and RE sale for sales, but not sure about various pricing condition with different payment plant.

Please suggest us with a solution to map our scenario for our client which deals with both leasing and selling. If any other alternate better option available, please let me know.

Thanks & Regards,

Elex.

[andre_nakratzas · Accepted solution]

Hi Elex,

I believe you've provided an excellent summary. However it comes back to the requirements you have. Using the RE-FX contract to sell will work but will have limitations regarding automatic price determination and the derivation of billing moments.

Especially if you are using PS it depends if you are using mile stones and based on that expect the system to issue a mile stone billing plan. In this case you would have to use PS in combination with SD but from SD there is no integration to RE-FX.

If the customer is happy to set up a contract type using one-time conditions you can still create a payment plan but this is not set up automatically even if you integrate with PS.

Therefor I think that your solution will be mainly driven depending on the requirements to have an automated process for price determination and the payment plan.

Regards, Andre

[narnei]

Hi Elex,

I Appriciate your interest in giving clarity while posting a thread.

Since you are already using REFX and SD is not implemeted, the best option is go a head with REFX module only.

Try to create a saparate Contract type as "Real Estate RES. Sales" and create various conditions related to "Sales" based on your business requirement, (Because we dont have any special pricing procedure to adopt in this ).

As per my understanding you can use the below conditions as an example :

RE Sale Price

RE Sales  Installment

RE Sales Discount

RE Sales Commission...etc. based on your pricing you can add the conditions.

All the above charges you can make as one time charges based on your business requirement except Sales installment.

Even though rental objectis sold but the propery is located in your premises you mught have provideing some services to the sold property as well, so you can add one more condition type as

RE Common maintenence / Annual maintenence charges( which is recurring ).

Adopting this process in REFX module will be one best advise for RE SALES.

Based on your requirmeent you can integrate the REFX with PS ( for new devolopments / constructions / porjects ) & Pm modules for services.

Since you are already using REFX leasing process its like entention of the existing process.Hope it may helps you.

Regards,

Subbarao.Narne

[Former Member]

Hi Subbarao Narne,

Thanks, you have given good clarification about REFX sales, It is very much useful.

Even I am looking for the same scenario for the customer I am working. Here I am planning to use RE-FX Sales integration with PS and RE-FX Leasing of residential apartments. Based on the comments in the thread I have the following questions.

1. If we create a new contract type for Sale with one time conditions for the full contract amount, how       can we handle the invoice creation when milestones are released from the WBS element?(PS).

    Ex: We create a Sales contract with one time conditions. When the first milestone is approved

    (i.e 10% of the total amount), how can we handle Invoice creation for the contract for that Milestone

    (We expect the invoice has to create for 10% of the contract amount).

2. If Brokers are involved in this process, how do we handle the Brokerage charges and how do we tag      them to the Sales Contracts? 

3. How we can handle the Sales Organization, Distribution Channel and product division in RE sales      any alternatives are available?

Please suggest me.     

Regards,

Dharani.