What is reference area in SAP RE - Real Estate Management?

SAP Term: reference area

• Component: RE

• Component Name: Real Estate Management

• Description: The area on the basis of which a number of actions may be performed. These actions include: Rent adjustments as a result of area changes Calculation of the rent per area unit Automatic determination of option rates according to the area ratio German input tax processing

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• Key Concepts: 
  Reference area is a term used in SAP Real Estate Management (RE) to refer to a specific area of a property that is used for comparison purposes. It is used to compare the actual area of a property with the reference area, which is the area that was initially planned or expected. This helps to identify any discrepancies between the actual and expected areas. 
  
  How to use it: 
  In SAP RE, reference areas are used to compare the actual area of a property with the reference area. This comparison helps to identify any discrepancies between the actual and expected areas. The reference area can be set up in the system by entering the expected area of the property in the relevant field. 
  
  Tips & Tricks: 
  When setting up a reference area in SAP RE, it is important to ensure that the expected area is entered accurately. This will ensure that any discrepancies between the actual and expected areas can be identified quickly and easily. 
  
  Related Information: 
  Reference areas are also used in other SAP modules such as Materials Management (MM) and Plant Maintenance (PM). In MM, reference areas are used to compare the actual quantity of materials with the expected quantity, while in PM they are used to compare the actual maintenance costs with the expected costs.