2.

General Explanations
Any general explanations on the process that relate to the customers business process. This
typically does not include any SAP specific terms, it should relate purely to the business rules.

General processes are :

 Object requirement, selection, application, Lease-In Contract arrangement, renewals and
terminations
Object rental unit arrangements, requirement, selection/ allocations, Lease-Out Contract
arrangement (mostly for internal ABB use)
 Lease-out / recovery rate determinations / calculation, which typically are based on the
Actual Rental and other Operational / Maintenance costs / estimates, with the RE
Management overhead added.
 Rental payments, Lease-In Recoveries
o Lease-In Recoveries includes cost allocations (journals) to Cost Centres occupying
the allocated rental units, also as relevant charge back of residential rentals through
payroll.
o ABB internal Office / Commercial allocations are usually set for the fiscal year,
while for Residentials, tenure will be based on the Lease agreement details
 Maintenance arrangements of RE Objects
 Also due reminder system for key dates such as Renewals, Audits / licenses, so required
actions can be taken in time.

The followings are also key requirements :

 System should cater for owned properties as well (not just leased ones).
 Charges cover not only rent to the tenants but also other Occupancy Costs, so the
system should capture all costs for a property, and the charge-out should be all
occupancy costs. The charges are done periodically (mostly monthly).
 The system should hold tenant allocations i.e. square meters occupied, as well as
common areas allocated back to all tenants. This is used to calculate charge-out to
tenant cost centres (or other cost “buckets” such as Project WBS (Work Breakdown
Structure).
 There should also be the ability to charge external 3rd party tenants if a property or part
of a property is sub-leased.
 There should be a flexible way to calculate the allocation of the other Occupancy
Charges to the rental charges per tenant.
 Requirements to compare (Reports) actual costs to the budgeted cost for each site, as
YTD and Full Year.
 The system needs to be flexible enough to keep track of changes in cost recovery per
site to enable an accurate reconciliation of Actual Cost vs Budget at Year End.
 Need to use the system as Budget tool to advise the tenants of the future rental and other
Occupancy Charges.
 The final budget should be able to be converted into the Charge Out on 1st January each
following year
 Contract-Renewals-In have the following additional requirement to the current Proposed
Solution: -
o Renewal notice for Options need to be generated
o Notice that Rent reviews are due and the type of review
o System needs to be flexible to record and process new commercial arrangements
made when options are exercised
 System should include ability to calculate cost of vacant space.
 System could calculate commitments at year end based on lease dates and annual rental.