Setting Up and Managing Homebuilder Management Foundation Information

This chapter provides overviews of homebuilder foundation information and wildcards, lists prerequisites, and discusses how to:

• Set up communities.

• Set up phases.

• Set up lots.

• Set up cost code templates.

• Set up plans for a community.

• Set up options.

• Analyze profitability with the Community Pro Forma program.

Understanding Homebuilder Foundation Information

Before using JD Edwards EnterpriseOne Homebuilder Management, you must set up these components:

An area is typically associated with a single purchasing department or geographic territory. Within an area, you can create communities that can be further divided into construction phases. Communities and phases are logical groupings of lots within an area. After communities and phases are identified, you can associate them with lots and plans. The use of an area as a high-level organizational structure allows multiple communities to be included in inquiries and searches.

Setting up the basic homebuilder information in the JD Edwards EnterpriseOne Homebuilder Management system allows you to:

• Create a flexible organizational structure, which allows you to customize the product offerings at various levels of detail.

• Streamline the setup process and minimize redundant data entry with the use of copying features.

• Simplify the maintenance and management of product lines.

• Analyze the performance of the product lines in several ways, including breakdowns by plan, option, and community.

  The structure of the system allows for this analysis on either a pro forma or an actual basis.

• Separate the construction elements of a house from the sales elements, when appropriate.

Understanding Wildcards

Wildcards can increase the efficiency of data setup and processing. You can use wildcards to set up and maintain option master, supplier assignment, bid detail, and takeoff information. The wildcard character (+) identifies items that apply to all levels of configuration or costing.

For example, when you set up options, you can use wildcards to make a specific option available for multiple plans and elevations. If you want to make an option available for selection regardless of the plan or elevation of the house a buyer has chosen, enter + in the Plan and Elevation fields on the Option Revisions form.

When you select options on the Select Option Package Components form, the system displays all option master records that are specific to the plan and elevation that the buyer chose. The system also displays all options for which you entered a unique plan in the Plan field and + in the Elevation field, all options for which you entered + in both the Plan and Elevation fields, and so on.

Note. The JD Edwards World Homebuilder Management system uses the wildcard character *, and not +. In the JD Edwards EnterpriseOne Homebuilder Management system, * has other meanings so you cannot use it as a wildcard.

Fields and Records in Which Wildcards Are Allowed

This table shows the field and type of record in which you can enter the wildcard character:

Examples of Option Master Records with Wildcards

This table lists examples of option master records that are set up with wildcards:

Prerequisites

Before you complete the tasks in this chapter, you must:

• Set up the area as a user defined code.

• Set up the branch/plant constants.

  See Defining Branch/Plant Constants.

• Add a new job master record for the area.

  See Setting Up Job Master Records.

• Enter cost codes for the new job.

  See Creating Cost Code Structures.

Setting Up Communities

This section provides an overview of communities, lists prerequisites, and discusses how to:

• Set processing options for Community Phase Master (P44H101).

• Set up a community.

Understanding Communities

A community is a distinct grouping of lots that share any number of conditions, such as product offering or geography. You set up a community before you enter any remaining components, such as plans, lots, and options. You can copy community master information from an existing community to a new community that has similar characteristics.

Each community master record that you create has a corresponding job master record. Many fields in the community master record directly correspond to fields in the job master record, including Job Type, Company Number, and Category Codes 1–10. You can enter job master information on the Community Revisions form. If the job master record exists at the time that you create the community master record, you can either accept the common values from the job master record and apply them to the community master record, or you can choose to overwrite the values in the job master record with those that you enter in the community master record.

Prerequisites

Before you complete the tasks in this section, you must:

• Enter income statement and warranty business units or jobs in the JD Edwards EnterpriseOne General Accounting system.

  See Setting Up Business Units.

• Verify that the activity rules and associated construction and sales rule types are set up in UDC 44H0/RT.

  See Setting Up User-Defined Codes.

• Enter tax areas, entities, rates, and reason codes for any applicable taxes that apply to the community location.

Forms Used to Set Up Communities

Setting Processing Options for Community Master (P44H101)

Processing options enable you to specify the default processing for programs and reports.

Defaults

Versions

If you leave any of the following processing options blank, the system uses default version ZJDE0001.

Set Up a Community

Access the Community Revisions form.

Area	Enter a value that represents one or more communities.

General

Tax Info

Cat Codes

Dates

Addresses

Attachments

Enter text or attach information that you want to associate with the community.

Setting Up Phases

This section provides an overview of phases, lists a prerequisite, and discusses how to set up a phase.

Understanding Phases

A phase, which is an optional component, is a subset of lots within a community. Within the same community, phases can have distinct product offerings and pricing. Suppliers and subcontractors might bid phases independently.

In a phase-enabled community, you define plans, bids, takeoffs, and option pricing at the phase level. Phases enable you to:

• Replicate actual construction activities by building lots in separate phases within a community.

• Provide separate pricing and product offerings for each phase.

• Provide separate material and labor costs by phase for bids, takeoffs, item pricing, and supplier assignments.

• Restrict the selection and construction of options by phase within a community.

Prerequisite

Before you complete the tasks in this section, you must verify that the Phase Enabling Flag check box on the Community Revisions form is selected for communities that require phase construction.

Forms Used to Set Up Phases

Setting up Phase Information

Access the Phase Maintenance form.

Many of the fields that appear on the Phase Maintenance form are the same as those fields that appear on the General tab of the Community Revisions form.

See Set Up a Community.

Setting Up Lots

This section provides an overview of lot setup, lists a prerequisite, and discusses how to:

• Set processing options for Lot Master (P44H201).

• Set up a lot.

• Assign multiple lots to a community.

• Release a lot for sale.

Understanding Lot Setup

You use the Lot Master program (P44H201) to set up and maintain the lots within a community and manage the progress of the lots as they move through the various stages of construction. The Lot Master program can track:

• Lot construction information, including start date, completion date, and current construction activity.

• Lot number and street address, as well as the legal description of the lot, including the assessor's parcel number, legal lot, tract, and block designation.

• Lot premiums.

• Unique lot characteristics.

• Lot history information, such as changes to the lot status code, advancement through the construction activity rules, and changes to the plan and elevation.

During the initial setup, you enter only basic information about a lot. As the lot progresses through the configuration and construction process, the system automatically updates additional fields on the Lot Master Revisions form.

A lot must be released for sale before it can be configured with a plan and elevation or sold to a buyer. Lots that the builder controls or unprepared lots, which are lots that have not been committed for sale, can be established in the lot master without making them available for house configuration or sale. When you release a lot for sale, the system updates the lot status in the lot master record and the lot is available to the Sales Workbench program. After you release a lot, you cannot change back the lot to unreleased.

Prerequisite

Before you complete the tasks in this section, you must set up any necessary lot-related user defined codes.

See Setting Up User-Defined Codes.

Forms Used to Set Up Lots

Setting Processing Options for Lot Master (P44H201)

Processing options enable you to specify the default processing for programs and reports.

Defaults

Versions

If you leave any of the following processing options blank, the system uses default version ZJDE0001.

Setting Up a Lot

Access the Lot Master Revisions form.

Buyer Number and Plan/Elev (plan/elevation)	Displays values that are generated by the Sales Workbench program.
Swing	Enter the value that specifies the layout of the house. Values are: Blank: Standard. The garage is on the right. R: Reversed. The garage is on the left and the entire floor plan is reversed.

Lot Master

Select the Lot Master tab.

Note. If you enter values in the Cost Code Template and Schedule Template fields on the Lot Master Revisions form, the values override the values that you entered on the Plan Master Revisions form. If you leave the Cost Code Template and Schedule Template fields blank, the system supplies the values that you entered on the Plan Master Revisions form.

Construction

Select the Construction tab.

House Schemes

Select the House Schemes tab.

The fields on this tab are user defined and can be used to specify color package, type of roof tile, and so on.

Additional Information

Select the Additional Information tab.

Category Codes

Select the Category Codes tab.

Assigning Multiple Lots to a Community

Access the Lot Master Maintenance form.

Releasing a Lot for Sale

Access the Work with Lot Master form.

To release a lot for sale:

1. Enter the number of a specific community in the Community field.

2. Select a lot, and then select Release for Sale from the Row menu.

3. At the warning message, click Yes to continue.

   The system updates the release dates on each lot with today's date. The lot is now available in the Sales Workbench program (P44H500), where a plan and elevation can be configured or the lot can be sold to a buyer.

Setting Up Cost Code Templates

A cost code template is a predefined list of the cost code and budget structure that applies to a plan. You use cost code templates during the Lot Start process to copy cost codes and budgets to lots. The system creates accounts for the lot in the form of cost codes, cost types, and other account category code information, such as trade codes and construction stage codes.

You can set up as many cost code templates as necessary. For example, you might set up different cost code templates and assign them to each plan or lot in a community. Alternatively, you might set up one cost code template and assign it to all communities that use the same cost code structure.

Conversion from JD Edwards World Homebuilder Management

If you converted from Oracle's JD Edwards World Homebuilder Management, be aware of the following:

• The cost code template replaces the plan jobs, also known as P jobs.

• The Plan Master Conversion program populates the Cost Code Template field with the P job number.

• The JD Edwards EnterpriseOne Homebuilder Management system does not require that you embed the community or plan number in a cost code template.

  A cost code template can now span all communities and companies that use the same cost code structure.

• You can create as many cost code templates as your business requires.

See Also

Creating Cost Code Structures

Setting Up Plans for a Community

This section provides an overview of plans for communities, lists prerequisites, and discusses how to:

• Set processing options for Plan Master (P44H301).

• Assigning plans to a community.

• Revise a plan.

Understanding Plans for Communities

A plan represents an architectural design based on an arrangement, a location, and the size of the rooms in a house. A plan typically has a varied façade or exterior look, which is called its elevation.

For reporting and analysis, you can assign specific attributes, such as square feet and the type of product and group to a plan. Additionally, you can assign the cost code template and schedule template at the plan level.

Copying Plans

You can use existing plans to copy information to a new community or phase. You can copy plans in one of these four ways:

• From an existing community to a new community.

• From an existing community to a new phase within another community.

• From an existing phase within a community to a new phase within an existing or new community.

• From an existing phase within a community to a new community that does not have phases.

Note. Plans can be copied only within the same area. You cannot copy plans from a community or phase in one area to a community or phase in another area. The phase to which you copy a plan must already exist.

Prerequisites

Before you complete the tasks in this section, you must:

• Set up areas and communities.

• Set up cost code templates.

  See Setting Up Cost Code Templates.

Forms Used to Set Up Plans

Setting Processing Options for Plan Master (P44H301)

Processing options enable you to specify the default processing for programs and reports.

Versions

If you leave either of these processing options blank, the system uses default version ZJDE0001.

Assigning Plans to a Community

Access the Community Plan Maintenance form.

Plan and Elev (elevation)	Enter values that specify the plan and elevation combinations in a community.
Product Group	Enter a code from UDC 44H3/PG to classify plans by group. For example, you could classify plans according to lot sizes. Or you could classify plans according to the number of stories in the plan, such as a single-story or two-story plan.
Square Feet	Enter a value that represents the square footage of the plan. This measurement can be used in the lot (job) to allow for calculations of costs and revenue per square feet in the JD Edwards EnterpriseOne Job Cost system.
Base Price	Enter the base price of a house. The base price is stored in the Plan Master table (F44H301).
Sales Price Effective Date and Sales Price Expiration Date	Enter the dates that specify when the sales price becomes effective and when it expires. The system compares these dates to the date on which a plan is configured on a lot to determine the sales price.

Revising a Plan

Access the Plan Master Revision form.

Plan Info

Setting Up Options

This section provides an overview of options, list prerequisites, and discusses how to:

• Set processing options for Option Master Maintenance (P44H401).

• Review options.

• Set up an option.

• Set up option packages.

• Update option cost detail.

• Copy options by community.

Understanding Options

Options are features that buyers can add to a base house specification to customize their homes. The successful management of options increases both builder profits and buyer satisfaction.

The JD Edwards EnterpriseOne Homebuilder Management system enables you to either set up each option as a single item or group options together to form an option package. An option package is often purchased at a discount and might contain an option that is not otherwise available. An option that exists only as part of an option package is called a package component. The system tracks the revenue and cost variances between the option package and the sum of individual options, had they been selected individually.

In addition to setting up individual options and options packages, you can also:

• Use wildcards to offer options at multiple levels, including area, community, phase, plan, and elevation.

• Assign prices and cost information for each option and option package at every available level.

• Set up custom options.

• Add unlimited text and attachments, such as photographs of the option or a link to a manufacturer's product catalogue, at every available level.

• Copy selected options, pricing information, and extended data from an existing community or phase to a new community.

  Additionally, you can specify effective and expiration dates for prices to save time if the same options are offered at many or all of the communities that you develop.

Prerequisites

Before you complete the tasks in this section, you must:

• Set up area, community, phase, plan, and elevation information for the options.

• Set up UDCs for the options.

  See Setting Up User-Defined Codes.

Forms Used to Work with Options

Setting Processing Options for Option Master (P44H401)

Processing options enable you to specify the default processing for programs and reports.

Defaults

Versions

Reviewing Options

Access the Work with Options form.

The Work with Options form includes wildcard check boxes for community, phase, plan, and elevation. These check boxes work in conjunction with the Community, Phase, Plan, and Elevation fields in the header area of the form. For example, if you specify a community and do not select the Wildcard Community check box, the system displays only those option records that are available in that specific community. However, if you select the Wildcard Community check box, the system displays all options that are specific to the community, as well as all area-level options.

Setting Up an Option

Access the Option Revisions form.

Option Package	Select this check box if the option is classified as a package option.
Package Component Only	Select this check box if the option is only a component of an option package. A package component only option cannot be sold separately.
Custom Option	Select this check box if the option is a one-time custom option and is not available for general selection. If you select this check box, you must enter a value in the Lot Number field.
Lot Number	Enter the specific lot on which the house will be constructed.
Current Sales Price	Enter the current sales price of the option. The amount is based on the effective date on the Option Cost Detail form.
Previous Sales Price	Enter the previous sales price for the option. You must enter a value in this field if you change the amount in the Current Sales Price field.

General

Setting Up Option Packages

Access the Select Option Package Components form.

To set up an option package:

1. Select each option that is part of the package, and then click Select.

2. On Option Package Maintenance, click Find to review the newly-selected options for the package.

Updating Option Cost Detail

Access the Option Cost Detail form.

Copying Options by Community

Access the Copy Community Options form.

To copy community options:

1. Enter values in the fields that appear in the Copy From, Copy To, and Dates group boxes.

   The fields are described below under the headings Copy From and Copy To, and Dates.

2. Click Find to display the options that meet the criteria in the Copy From fields.

3. If applicable, select only the options in the detail area that you want to copy and select the Selected Options check box.

4. Select the Pricing Information and Extended Data check boxes, if applicable.

   The check boxes are described below under the heading Include.

5. Click Next to access the Options Copy Preview form to review the options that the system will copy.

6. Click Finish to continue with the copy process, or click Cancel to return to the Copy Community Options form.

Copy From and Copy To

Dates

Include

Analyzing Profitability with the Community Pro Forma Program

This section provides an overview of the Community ProForma program, lists prerequisites, and discusses how to work with community proforma information.

Understanding the Community ProForma Program

The costs and risks involved in developing a new community can be significant, given the high cost of land and construction materials. To justify and secure the required capital, it is important to have an initial projection of profitability. Whether you are building massive retail shells, which might contain several unique retailer outlets, or a community of 1,000 homes, you can use the Community ProForma program (P44H102) to forecast projected profits and manipulate key profit-related parameters.

The Community ProForma program:

• Tracks a significant number of revenue and cost variables.

• Performs extensive what if analysis.

  The program derives the base revenue from each plan master that is assigned to the community. You can manipulate plan mix, lot cost assumptions, additional costs, and additional revenue. Based on the revenue and cost assumptions, you can forecast community profitability.

• Overrides costs by a set percentage of the total revenue.

  You can use lot override percentages to associate a cost percentage that is applied to the extended base revenue for all plan line items. The system allows for 10 discrete average cost percentages, and it tracks each separately when it calculates totals. When you enter a lot override percentage, the system updates the associated average other cost on the Community ProForma form.

  For example, if you can build five houses on Plan B for 100,000 USD per house, and these houses include an estimated 10,000 USD in total options, the resulting revenue would be 510,000 USD. If you enter 10.00 in the Average Cost Percentage 1 field, the system applies 51,000 USD (10 percent of 510,000 USD) as a cost in the Average Other Cost 1 field for each Plan B.

The Community ProForma program is an interactive program that allows you to specify revenue and cost parameters for a specific community or phase. Revenue parameters include base house revenue, lot premiums, and options, and company-specific revenue categories. Cost parameters include land costs, direct costs, allocated overhead, indirect costs, and company-specific cost categories.

You can apply the revenue and cost parameters equally to all lots in the community or apply them at a plan and mix level. For example, if the average sales and marketing costs are 500 USD per house, you might add 500 USD to the cost of every house in the community. Alternatively, you might decide that because more expensive floor plans require greater average sales and marketing burden, you will allocate these costs to specific plans so that more expensive plans receive a larger allocation.

The Community ProForma program creates a pro forma contribution analysis for a community or phase. If the initial assumptions of revenue and cost do not result in an acceptable income statement, you can modify key profit-related parameters, including:

• Land and direct costs.

• Overhead and other indirect costs.

• Plan mix.

• Revenue per plan (including lot premiums).

• Option revenue and cost.

• Numerous user-defined cost and revenue variables.

Field Calculations

To update fields in the detail area of the Community ProForma form, the system uses these calculations:

Prerequisites

Before you complete the tasks in this section, you must:

• Set up communities.

• Set up plans and, optionally, phases.

• To project the most accurate cost and revenue estimates, verify that this information is available:

  • Allocated cost estimates, including land and other off-site costs.

  • Direct cost estimates, including base house and option.

  • Overhead cost estimates and the method of allocation.

  • Sales and marketing cost estimates and the method of allocation.

  • Initial plot map.

  • Projections about plan mix.

  • Revenue projections, including base house revenue, lot incentives, and options.

  • Other miscellaneous costs and revenues for which you must account.

Forms Used to Work with Community Pro Forma Information

Working with Community Pro Forma Information

Access the Community ProForma form.

Note. You can define four per-lot revenue and per-lot cost categories to satisfy specific company requirements. For example, you could change Sales Marketing to represent a different cost category, if appropriate.

Per Lot Amounts

Select the Per Lot Amounts tab.

Lot Override Percentages

Select the Lot Override Percentages tab.

ProForma Totals

Select the ProForma Totals tab.

Review the amounts that the system calculates in the header area of the form. Enter values in the detail area fields, as necessary.