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Land Use Management – Process Flow

To give an overview of functionality of Land Use Management, I have briefly mentioned it in steps trying to explain the process flow.


Step 1 – Creation of master data specific to LUM: Parcel of land is created in system. Assign it to Assets if the need be.


Step 2 – Acquisition of parcel of land using lease in contract. This contract type will change the holdings from old owner to new owner.


Step 3 – Update of parcel of land: Any change in measurement of parcel of land is recorded using this functionality.


Step 4 – You need to update this piece of land (parcel of land) in the land register. It has 3 sections which needs to be updated to parcel of land information.


Step 5 – Other public register (Optional): Contamination/ non-hazardous waste, site protection, easement, development plan are various public register in which you can update parcel of land.


Step 6 – Notice of assessment: This is needed to capture assessed value of the property. This may be referred later for the property tax purpose. You may need to create a Municipality lease in contract to take care of the property tax payable to tax authority.


Step 7 – Creation of lease out and lease in contract for right of way easements.



Step 8 – Creation of sale contract for disposal of parcel of land. This will involve change in holdings from present owner to new owner.



** I will keep updating each step based on queries, if any Regards, Amar

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  • Hi Amare,

    Will you be able to provide configuration screen shots for each steps. I may be needing it in my current project. The process flow looks good, but need more details to get better idea on land use management.

    One more thing, isn't is specific only to Germany?

    Thanks in advance

    • Hi,

      Providing screen shots for each configuration steps will be cumbersome.

      I suggest you to start with the process flow as suggested above and wherever you get any doubt, you may check with me.

      It is primarily for Germany, but clients outside Germany too can use it. SAP will not support any deviation resulting from their local requirements.



      • Hello Amare,

        I am Mumbai based consultant currently working on implementation  project and my client want LUM functionality. So please guide me what are the things need to consider at the time of LUM configuration.

        Your Suggestion and guidance is really appreciable.


        Prashant Nalawade.

        • Hi Prashant,

          LUM is an extension or if I may say detailed version of RE object property (Land).

          Before getting into configuration aspect of LUM, first we have to decide if we really need LUM functionality.

          Now, if you are convinced that you need LUM.

          Step 1 - Activate Sub-function (LM01 & LUM)

          Step 2 - Creation of Parcel : For this you have to first define the hierarchical location structure. Parcel of land will be the lowest level of the hierarchy and country probably will be highest level.

          Step 3 - You need to understand few basic things, like cadastral area, overlays, Parcel Maps, Survey office and its relevance in parcel of land

          Step 4 - Create master data parcel of land (Maintain general data, Administration, Areas, Partner & usage data). Maintain business partner owner and Survey office.

          Step 5 - Check if you need to do acquisition of land in SAP using REFX. If yes, create a contract type (Lease in type, type of holdings will be "change in holdings", BP will be landlord with Vendor)

          Once you reach till step 5, I will proceed further. (TBC)



          Topics to cover:

          1. Update of parcel of land

          2. Land register & Other public register

          3. Assessed value of the property & Property tax paid to government

          4. Lease in & Lease out contract for creating easement rights

          5. Disposal (sale) of parcel of land

          • Thanks for your quick reply.

            I have some doubts on LUM.

            In my client site, client do the mass acquisition and then later they allocated the Land to,

            1) some government schemes

            2) PAP - Project affected people (Land acquired from those people)

            3) Town Planning

            4) Built own constructed residential as well as Commercial Units (individual Flats & Shops)

            5) Plot allocated to private builder, then he will constructed multi floor buildings.

            so, kindly suggest how to integrate the above scenario in LUM.

            Also, give me clarification on Rental Unit and Land Parcel.

            Please tell me the hierarchy of the LUM functionality.

            Here, in REFX BE then Land or Building  then Rental Unit then Customer and later on Contract Lease In/Out.

            IN LUM what is the hierarchy?

            How the Master data flow and syc will be done in SAP REFX LUM functionality?

            Your Suggestion and Guidance is really appreciable.


            Prashant Nalawade.

          • Hi Prashant,

            Let's understand LUM hierarchy.

            Parcel of land is created with respect to Location Key, Tract of Land and Parcel number.

            Location key can be defined as long as 7 levels, starting with Country, State, District, County, Municipality, City district and City section

            I am giving an example of 3 level location key:

            Location key (freely definable): IN-10-0007, where IN is country, 10 is state and 0007 is Local sub-district.

            Tract of land is a piece of land under Local sub-district for example AA

            Parcel of land is the piece of land, master data of land for example - 01.

            So, in system a parcel of land will have this id: IN-10-0007/AA/01.

            Parcel of land do not follow BE and building hierarchy, but yes these can be attached as assignment to parcel of land.



            P.S. - All scenarios related to your client is possible using LUM, but unfortunately I am not allowed to help you with the designing part.

          • Hello Amare,

            Thanks for the suggestion.

            heyy I just want clarity regarding LUM functionality,

            Can we assign Land Parcel to Building master data or just tell me the possible assignment with available master data in SAP REFX?

            difference between Rental Unit and Land Parcel?


            Prashant N

          • Hi Prashant,

            LUM is an extension/detailed version of land.

            Usually to a Parcel of land, you can assign a BE, Building(s) & Assets.

            Land of parcel can be used as a Rental object, but usually for LUM we create easement contracts, example Right of way contracts. Except for added functionality there isn't any difference.

            That's why I wrote to you initially, do you really need LUM and explained you the added functionality of LUM over Property (Land).