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Finance and Controlling – Day 1
Introduction to SAP
-3-
Business without ERP
CustomersCustomers
Customer
Calls to
place order
for a Car
1
Sales
office/Inventory
contacts PP
3
Sales office
contacts
Inventory
2
ProductionProduction
PlanningPlanning
InventoryInventory
3
4
PP contacts
Purchasing for
raw material
PurchasingPurchasing
SalesSales
-4-
Business without ERP (Contd..)
Lets add some more Business Processes
-5-
Business without ERP (Contd..)
PurchasingPurchasing
CustomersCustomers
VendorsVendors
Shop floorShop floor
ProductionProduction
PlanningPlanning
InventoryInventory
FinanceFinance
Where is my
car
Whom to
contact for
status?
What is this
confusion
What is
Cost and
profit
What to
manufactur
e??
SalesSales
-6-
Lets Deliver the end product to customer..
SalesSales
Dear Sir,
Your Order…
I did not order
for a
TRUCK!!!!
-7-
Business without ERP (Contd..)
I AM NOT TAKING
DELIVERY AND WILL
NEVER DEAL WITH YOU!
SalesSales
We are
SORRY Sir
-8-
Overall Picture
Production
Planning
PurchasingPurchasing
CustomersCustomers
VendorsVendors
InventoryInventory
A/RA/R A/PA/P
Shop FloorShop Floor
ExecutionExecution
GeneralGeneral
LedgerLedger
SalesSales
-9-
Why Enterprise Architecture
• Why Enterprise Architecture ?
– Numerous disparate information systems
– Integrating the data becomes costly
• Time
• Money
• Resources
– Inconsistencies and duplication of data
– Lack of timely information
– Required: Central enterprise definitions
– Required: Centrally controlled business change
-10-
Enterprise Structure – Integrating Business
PP
GL
Plants
Shop
Floor
Sales
HR
FA
AP
AR
Purchasing
Partner
Systems
Payroll
Treasury
Marketing
Mfg.
-11-
-12-
Enterprise Architecture - Benefits
• Eliminates the duplication, discontinuity and redundancy in data
• Increases the return on investment made on IT implementations
• Delivers quality information designed for the Enterprise as a whole
• Faster and cheaper
• Delivers quality information to produce a quality enterprise
• Satisfying Partners/Customers
• Reducing required manpower
E R P
-13-
Quiz Time
• What is the full form of SAP?
• When was SAP founded?
-14-
Quiz Time
• What is the full form of SAP?
Systems Applications and Products in Data Processing
• When was SAP founded?
Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira
– Renamed in 1977
– Before 1977 : Systems Analysis and Program Development (German :
Systemanalyse und Programmentwicklung)
-15-
History of SAP
• Systems Applications and Products in Data Processing
– German : Systeme, Anwendungen, Produkte in der Datenverarbeitung
• Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira
– Renamed in 1977
– Before 1977 : Systems Analysis and Program Development (German :
Systemanalyse und Programmentwicklung)
• SAP is both the name of the Company as well as their ERP Product
• SAP system comprises of a number of fully integrated modules, which
covers virtually every aspect of the business
• Three systems developed : R/1, R/2, R/3
-16-
Steps to Strategic ERP
Enterprise Resource Planning
is evolved through these stages …
Total
Company
Value
Evolution of ERP
CreateCreate
StrategicStrategic
ValueValue
Efficiency andEfficiency and
ControlControl
AutomationAutomation
80’s R/280’s R/2 90’s R/390’s R/3 Today mySAP ERP
Inter-Enterprise
Co-operation
Inter-Enterprise
Co-operation
Enterprise Resource
Planning
Enterprise Resource
Planning
Collaborative
Business
Collaborative
Business
-18-
Evolution of SAP
-19-
Quiz Time
• SAP R/3 client server architecture evolved in
year___________.
• Which is the latest SAP product?
– mySAP ERP
– mySAP Business Suite
– mySAP.com with one step business
-20-
Quiz Time
• SAP R/3 client server architecture evolved in year
1992
• Which is the latest SAP product?
– mySAP ERP
– mySAP Business Suite
– mySAP.com with one step business
SAP R/3 Architecture
-22-
3 Tier Client / Server Architecture
• The SAP R/3 architecture is based on a 3-tier client/server
principle
– Presentation Server
– Application Server
– Database Server
• Dedicated Servers are linked by Communication Networks
• Perform tasks without sacrificing data integration and processes
within the system, as a whole
-23-
SAP R/3 System Architecture (Contd...2)
-24-
Overview of Presentation & Database Servers
• The Presentation Server
– GUI only
– At workstation
– Very light
– Sends requests to application server
– Obtains screens from application server and displays
• The Database Server
– Interface between application server and RDBMS
– Also holds the vendor specific DB driver
-25-
SAP R/3 Conceptual Areas
SAP Conceptual Areas
Application Area
(Initiate and execute
SAP transactions)
(Functional)
Basis Area
(The technical
administration of
the system)
(Authorizations/Ids/etc)
Development Area
(1. A developer’s
workbench
2. Create & Test
ABAP/4 programs)
(Technical)
-26-
Systems in R3
Development
System
(DC)
Quality
System
(QC)
Production
System
(IC)
Client
110
100 etc..
Transport Request
-27-
Clients in R/3
• The Logon Client
– 3 digit number ( 000 to 999)
– Helps maintain independent sets of data within the same R/3 system
• Client mechanism and handling
-28-
Clients in R/3
R/3 Technology Environment
DB2 forDB2 for
OS/390OS/390
ADABAS DADABAS D
DB2 for AIXDB2 for AIX
INFORMIX-OnLineINFORMIX-OnLine
ORACLEORACLE
Windows 3.1, Windows 95, Windows NT,Windows 3.1, Windows 95, Windows NT,
OSF/Motif *, OS/2 Presentation Manager (PM),OSF/Motif *, OS/2 Presentation Manager (PM),
Macintosh *, JavaMacintosh *, Java
ADABAS DADABAS D
MS SQL ServerMS SQL Server
INFORMIX-OnLineINFORMIX-OnLine
ORACLEORACLE
ABAP/4, C, C++, HTML, JavaABAP/4, C, C++, HTML, Java
DB2 forDB2 for
OS/400OS/400
OS/390OS/390
AIXAIX
Digital UNIXDigital UNIX
HP-UXHP-UX
ReliantReliant
UNIX (SINIX)UNIX (SINIX)
SOLARISSOLARIS
Windows NTWindows NT OS/400OS/400
HardwareHardware Bull/ZenithBull/Zenith
CompaqCompaq
Data GeneralData General
......
NCRNCR
SequentSequent
SNISNI
DigitalDigital
HP (Intel)HP (Intel)
IBM (Intel)IBM (Intel)
BullBull
DigitalDigital
HPHP
IBMIBM
SNISNI
SUNSUN
UNIX SystemsUNIX Systems
IBMIBM
AS/400AS/400
OperatingOperating
systemssystems
DialogDialog
SAPGUISAPGUI
LanguagesLanguages
DatabasesDatabases
IBMIBM
S/390S/390
-30-
Platforms and Databases supported by R/3
Operating Systems Supported Hardware Supported Front ends Supported Databases
AIX SINIX IBM SNI SUN Win 3.1/ 95 / NT DB2 for AIX
SOLARIS HP-UX Digital HP OSF / Motif Informix – Online
Digital Unix Bull OS/2
Macintosh
Oracle 7.1
ADABAS D
Windows NT AT&T Compaq
Bull / Zenith
HP (Intel) SNI
IBM (Intel)
Digital (Intel)
Data-General
Win 3.1 / 95 / NT
OSF / Motif
OS/2
Macintosh
Oracle 7.1
SQL Server 6.0
ADABAS D
OS/400 AS/400 Win 95 OS/2 DB2/400
-31-
Client Server Benefit
-32-
Quiz Time
Match the following
Presentation Server Windows
Application Server Basis
3 Digit number Quality System
Client Testing/ UAT GUI
Unix Systems Oracle
Authorizations Client
Business
Administration
-33-
Quiz Time
Match the following
Presentation Server GUI
Application Server Business
Administration
3 Digit number Client
Client Testing/ UAT Quality System (QC)
Unix Systems Windows
Authorizations Basis
SAP R/3 Modules
-35-
SAP Modules
SAP R/3SAP R/3
FIFI
WFWF
PSPS
PMPM
WMWM
PPPP
MMMM
SDSD
HRHR
AMAM
COCO
QMQM
PP – Production Planning
WM – Warehouse
Management
PM – Plant Maintenance
AM – Asset Management
PS – Project System
MM – Materials
Management
SD – Sales and Distribution
QM – Quality Management
WF – Workflow
HR – Human Resources
CO – Controlling
FI – Financial Accounting
-36-
• Financial accounting (FI)
• Controlling (CO)
• Asset management (AM)
• Materials management (MM)
• Sales and Distribution (SD)
• Production Planning (PP)
• Quality management (QM)
• Plant maintenance (PM) & Customer Service (CS)
• Project system (PS)
• Human resources (HR)
• Workflow (WF)
SAP R/3 Application Modules
-37-
MM
Material Procurement
Inventory Management
Batch Management
Goods inspection
Invoice Verification
PP
BOM/Work Center/Routing
MRP
Capacity Evaluations
Production Orders
QM in production
SD
Inquiry processing
Sales Order Processing
Delivery Processing
Billing
FI
General Ledger
Accounts Payable
Accounts receivable
Cash management
CO
Cost Center Accounting
Product Costing
Order Contribution Analysis
Module Functionalities
-38-
Quiz Time
Match the following
Financial Accounting Inventory Management
Controlling Shop Floor Control
Materials Management Financial Reporting
Sales & Distribution Profit center Accounting
Production Planning Billing
Project System Activity monitoring
Asset Management
-39-
Quiz Time
Match the following
Financial Accounting Asset Management
& Financial Reporting
Controlling Profit center Accounting
Materials Management Inventory Management
Sales & Distribution Billing
Production Planning Shop Floor Control
Project System Activity monitoring
-40-
• External reporting of
• General ledger
• Accounts receivable/payable
• Sub-ledger accounts
with a user-defined Chart of Accounts
• Key elements
• General ledger
• Accounts payable
• Accounts receivable
• Asset Management
• Special Purpose Ledger (FI-SL)
• Legal consolidation
• Accounting Information System
Module FI – Financial Accounting
-41-
ConsolidationConsolidation
Extended General LedgerExtended General Ledger
PayablesPayables
ReceivablesReceivables
BankBank
accountsaccounts
General LedgerGeneral Ledger
Cash managementCash management
and forecastand forecast
Foreign exchangeForeign exchange
managementmanagement
ManagementManagement
of securetiesof secureties
and loansand loans
Finance informationFinance information
systemsystem
BankBank
InvoiceInvoice
verificationverification
AccountsAccounts
payablepayable
CreditCredit
managementmanagement
AccountsAccounts
receivablereceivable
Financial Accounting
-42-
• Represents the flow of cost and revenue
• Instrument for organizational decisions
• Key elements of the CO application module include :
• Cost center accounting
• Product cost Planning
• Product Costing
• Profitability analysis
• Profit center accounting
• Activity based costing
• Enterprise controlling
Module CO – Controlling
-43-
• Optimize tasks/activities in
• Sales
• Delivery
• Billing
• Key elements of the SD application module include :
• Pre-sales support
• Inquiry processing
• Quotation processing
• Sales order processing
• Delivery processing
• Warehouse management
• Billing
• Credit Management
• Sales Information system
Module SD – Sales and Distribution
-44-
Sales and Distribution Processing
MATERIALSMANAGEMENT
F I N A N C I A L A C C O U N T I N G
Sales
activity
SALESINFORMATIONSYSTEM
Sales Support
Sales
Shipping
Billing
Subsequent
delivery free
of charge
Inquiry
Quotation Contract
Delivery
free of
charge
Sales
order
Returns
Scheduling
agreementUSD
Delivery
InvoiceDebit memo Credit memo
-45-
• Supports
• Procurement
• Inventory
• Key elements
• Materials procurement (purchasing)
• Inventory management
• Invoice verification
• Material valuation
• Vendor evaluation
• External Services management
• Purchasing Information System (PurchIS)
• Inventory Controlling Information system
Module MM – Materials Management
-46-
Materials Management
Service /
spare parts
Material
Special stock
Batch
Vendor/one-time
customer
Purchasing
info record
Service
specifications
Workflow
Optical archive
Texts
Mail
Communication
Classification
Documents
Conditions
BASIC DATA
Purchasinginformationsystem
Vendorevaluation
 Purchase requisition
PURCHASING
 MRP
 Direct requisition
 Release procedures
 RFQ/Quotation
 Material/service
 Price comparisons
 Price comparison list
 Purchasing
 Purchase orders
 Outline agreements
 Scheduling agreements
 Goods receipt/issue
 Transfer posting
 Quantities and values
 Physical inventory
 Storage bins
 Check and post
 Price update
INVENTORY MANAGEMENT
INVOICE VERIFICATION
SDSD
PPPP
PMPM
QMQM
FIFI
AMAM
COCO
PSPS
Third-party
order
Requirements
Inspection lot
Fixed assets
Cost center /
Budget
Project
G/L accounts
Cash management
and forecast
Service/
Spare Parts
-47-
• To plan and control the manufacturing activities
• Key elements
• Bill of Material (BOM)
• Routings
• Work Centers
• Sales and Operations planning (SOP)
• Master Production Scheduling (MPS) – Capacity Planning
• Materials Requirement Planning (MRP)
• Shop Floor Control (SFC)
• Production orders
• Product costing, activity-based costing
• Work in process
• Kanban
• Production planning for process industries (PP-PI)
• Repetitive Manufacturing
Module PP – Production Planning
-48-
FIFI COCO HRHR
CostCost
accountingaccounting
FinancialFinancial
accountingaccounting
HumanHuman
resourcesresources
ProjectProject
NetworksNetworks
MaintenanceMaintenance
RepairsRepairs
PlantPlant
maintenancemaintenance
Inbound RawInbound Raw
MaterialMaterial
Finished GoodsFinished Goods
Sales and OperationsSales and Operations
PlanningPlanning
Demand management /Demand management /
MPSMPS
Material requirementsMaterial requirements
planningplanning
Detailed Schedeling andDetailed Schedeling and
PlanningPlanning
Capacity planningCapacity planning
Shop floor controlShop floor control
CostingCosting
Information systemInformation system
PurchasingPurchasing
WarehouseWarehouse
InvoiceInvoice
verificationverification
SalesSales
ShippingShipping
BillingBilling
CustomersCustomers
VendorsVendors
SDSDPPPP
SDSDSDSD
SDSDMMMM SDSDQMQM
SDSDPMPM
SDSDPSPS
Production Planning
-49-
• Supports
• Quality planning
• Inspection
• Control for manufacturing
• Costing
• Procurement
• Key elements
• Quality planning
• Quality during procurement, production, distribution
• Quality Management Information - Quality inspection
• Information System (QMIS))
Module QM – Quality Management
-50-
• PS – Project Systems
• Support planning, control, & monitoring of long term highly complex projects
with defined goals
• Key elements
• Project WBS – Plan
• Budget & Monitor
• Network Management
• Activity monitoring, Material Planning, Milestones, Capacities Scheduling
• Project Management Information System
• HR – Human Resource
• Key elements
• Recruitment
• Payroll & Time management
• Travel Expense accounting & Benefits
• Workforce planning & Training administration
• Organization management
Module PS – Project System & HR – Human Resource
-52-
Quiz Time
• Is Industry solutions an SAP module like FI/CO/MM etc?
• True/False
– PP Supports procurement and Inventory
– FI Handles project budgeting and monitoring
– WF management is a support tool for all modules
-53-
Quiz Time
• Is SAP - Industry solutions a module like FI/CO/MM etc?
NO
• True/False
– PP Supports procurement and Inventory
(False – MM Supports these functions)
– FI Handles project budgeting and monitoring
(False – PS handles these functions)
– WF management is a support tool for all modules
(True)
-54-
• Combines SAP R/3 application modules to additional industry-
specific functionality
• Result of the research by industry Centers expertise (ICOE)
IS – Industry Solutions
-55-
mySAP Industry Solutions (Some Examples)
• SAP for Aerospace & Defense
• SAP for Media
• SAP for Automotive
• SAP for Mill Products
• SAP for Banking
• SAP for Mining
• SAP for Chemicals
• SAP for Oil & Gas
• SAP for Consumer Products
• SAP for Pharmaceuticals
• SAP for Engineering, Construction &
Operations
• SAP for Professional Services
• SAP for Healthcare
• SAP for Public Sector
• SAP for High Tech
• SAP for Retail
• SAP for Higher Education &
Research
• SAP for Service Providers
• SAP for Industrial Machinery &
Components
• SAP for Telecommunications
• SAP for Insurance
• SAP for Utilities
SAP Product Overview
-57-
Evolution of SAP products
R/3
R/3
Enterprise
SAP NetWeaver
mySAP ERP
Solutions
mySAP CRM
mySAP SCM
mySAP HR
mySAP PLM
………..
mySAP
Business
Suite
Web AS
•Easing Upgrade Plans & Providing Transition Options
•Bringing benefits of SAP Netweaver into installed base
•New Customers have more entry options & receive world –class ERP
-58-
Evolution of SAP products
SAP R/3
my SAP
Solutions
my SAP
Business
Suite
-59-
Operations
Corporate Services
HR
Financials
SAP R/3
-60-
Operations
Corporate Services
mySAP HR
mySAP Financials
Adaptive Business Solutions SAP R/3
mySAP SCMmySAP PLM
mySAP SRM
mySAP CRM
mySAP Solutions
-61-
mySAP PLM mySAP SCM
mySAP mySAP
SRM CRM
Operations
Corporate Services
mySAP HR
mySAP Financials
Application Platform ( Web As)
People Integration (Portal)
Information Integration( BI,MDM)
Process Integration (XI)
SAP NetWeaver
my SAP Business Suite
-62-
mySAP Solutions & Netweaver
• mySAP CRM
• mySAP SRM
• mySAP SCM
• mySAP PLM
• SAP Netweaver
My SAP Customer Relationship
Management (CRM)
-64-
CRM Solution Map
-65-
CRM – Holistic view
-66-
Where does a CRM solution fit?
WhoWho Sales ServiceMarketing Executives
What Service
Transact
Fulfill
Engage
Which wayWhich way Internet Mobile Telephony
HowHow Operational CollaborativeAnalytical
Workplace
Use a CRM
Solution to
complete
the Cycle
-67-
CRM Component Landscape
OLTP
R/3 System
BW
APO
Mobile Clients
Internet
mySAP.com
Portal Users
As one big
logical box
CRM System
Telephone
Callers
-68-
CRM Internet Sales
B2C Scenario Consumer
BBP Scenario Business Partner
B2R Scenario Reseller
Internet-
selling
Enterprise
-69-
Service module within CRM
• Service Planning
• Proactively engage customers with the correct resources at the most
beneficial times
• Customer Care
• Provide customer with 24/7 accessibility from all communication channels
with precise and consistent informationon
• Installed Base Management
• Maintain an accurate, up-to-date record of a customer’s products and
installations to facilitate service and anticipate customer requirements
-70-
Mobile Sales module within CRM
• Suite of tools tailored to the needs of the
offline mobile sales force
– Provides an integrated view of customers, prospects, products,
services, competitors, activities, opportunities, quotations,
orders, etc.
– Heavy cross-referencing for easy navigation
• Facilitates the sales process by
– Effectively managing customers and prospects
– Providing appropriate customer, product and competitive information
– Determining product and pricing configurations
– Managing sales projects across sales teams
– Generating presentation and proposals
-71-
Quiz Time
• What is the latest version of mySAP CRM
• Name the three service modules with in CRM
-72-
Quiz Time
• What is the latest version of mySAP CRM
(Version 5.0)
• Name three service modules with in CRM
– Service Planning
– Customer care
– Installed base management
My SAP Supplier Relationship
Management (SRM)
-74-
SRM Solution Map
-75-
Key Components of mySAP SRM
mySAP SRM – eProcurement mySAP SCE
Supplier Collaboration Engine
• Enterprise Buyer Prof 3.5
• Business Inf. W’house 3.0B
• Requisite Bugs Eye 3.5
• Requisite eMerge 3.5
• Enterprise Portal 5.0
• Supplier self services 1.0
• Bidding Engine 3.5
• User Management 3.0
Exchange Infrastructure Content Integrator
-76-
Key Components of mySAP SRM
• Strategic Sourcing
•Sourcing analytics: Helps provide analytics based on supplier location, line of
business
•Supplier evaluation: Helps you evaluate the supplier base within the organization
systems and external market places to identify and select supplier to ensure reliable &
uninterrupted supply
•Request for quotation and auctions: Provides electronic auctioning and bidding tools
to compress sourcing cycle times
•Contract management: Helps create and manage value and quantity contracts
• Operational Procurement
•Self-service procurement: Enables decentralizing procurement process within
organization, without diluting the control
•Plan-driven procurement: Enables automatic purchase order generation for stock
materials across the integrated supply chain
•Services procurement: Enables service procurement process to be managed
online
-77-
Key Components of mySAP SRM….Contd.
• Supplier Enablement
•Supplier portal: Provides portal features for suppliers to manage their product data
and orders
•Supplier connectivity: Provides capability to connect multiple suppliers through XM_-
based document exchange
• Content Management
•Content consolidation: Provides capability to consolidate product and vendor
information
•Catalog content management: Provides capability to manage OCI compatible catalog
with tools for data import, data edit and a search engine
-78-
Quiz Time
• Name any one key component of mySAP SRM Solution map
-79-
Quiz Time
• Name any one key component of mySAP SRM Solution map
– Following are the three key components of mySAP SRM
• Strategic Purchasing & Sourcing
• Operational Procurement
• Supplier Collaboration
My SAP Supply Chain Management
(SCM)
-81-
SCM – Solution Map
-82-
mySAP SCM
SAP APO (Advanced Planning and Optimizing)
Flexible and Adaptive Planning, Integration with CRM, SRM and PLM
SAP ICH (inventory Collaboration Hub)
Collaboration with Suppliers
SAP EM (Event Management)
Monitor, alert and resolve exceptions
-83-
Core Interface
Typical SAP SCM Solution-scape
SAP R/3
Dominant source of
Master Data in SAP
SCM, destination of
transaction data like
planning outputs or
Availability Checks for
Execution systems
Planning system where
selective Master data
maintained and sourced
from R/3
SAP SCM
Planning Outputs
include Forecasts, SNP
or PPDS Planned
Orders, Stock
Transfers and
Production Orders
Module includea
Demand Planning, SNP
& Deployment, PPDS,
GATP, TPVS and TLB
Transaction Data
Master Data
Legacy
Systems
BAPI
SAP CRM,
SAP SRM
and
SAP PLM
Core interface
-84-
One-on-One comparison
i2 Technologies
(Tradematrix SCM)
SAP SCM ORACLE APS Manugistics
(Networks SCM)
Forecasting Demand
Planner/Demand
Management
Demand Planner Oracle Demand
Planner
Demand
Management
ATP and Fulfillment Demand Fulfillment SAP GATP (Global
ATP)
Oracle GOP (Global
Order Promising)
Fulfillment
Management
Material and
Resource planning
Supply Chain
Planning
SAP SNP (Supply
Network Planning)
Oracle ASCP
(Advanced SCP)
Master Planning
Manufacturing
Planning
Factory Planning PP/DS (Production
Planning and
Detailed Scheduling)
Oracle Manufacturing
Scheduling
Manufacturing
Planning and
Scheduling
Transportation TMS (Transportation
Management
Solutions)
TP/VS
(Transportation
Planning/Vehicle
Scheduling)
Oracle
Transportation
Logistics
Management
Solutions
mySAP Product Life Cycle Management (PLM)
-86-
PLM Solution Map
SAP Netweaver
-88-
A Roadmap for Web Services
-89-
Services are changing SAP’s Product portfolio
-90-
From Basis to WAS
-91-
Document Mgmt
E-sales
E-procurement
PLM
Technical
systems
Trading
Call Center
ERP
Market
Analysis
SCM
Business Drivers
Extended Value Network
Increased Market Dynamics
Integration costs are high
Long integration projects
IT environments become increasingly rigid
Lots of heterogeneous systems
Pressure on IT increases
Must leverage existing investments
Must support new business processes
quicker
Must reduce total cost of ownership (TCO)
Integration is the Key Challenge
-92-
Document Mgmt
Market
Analysis
SCM
E-sales
E-procurement
PLM
Technical
systems
Trading
Call Center
ERP
Reduce Complexity
• Minimize the number of connections
through hubs
•Use only one platform to integrate all
people, information, and systems
Reduce Cost Integration
•Deliver .NET and J2EE interoperability
•Deliver adaptors for ISV products
•Deliver products, not projects
Increase company
performance
•Increase ease of use, scalability and
adaptability
•Increase business process flexibility
by using an Enterprise Services
Architecture
How to Address the Integration Challenge
-93-
The fundamental Web services standards are supported by the Web
Application Server (Web AS), which is the basis for all other
NetWeaver components
-94-
Unifies and aligns people,
information and business
processes
Integrates across technologies
and organizational boundaries
A safe choice with full .NET and
J2EE interoperability
The Business foundation for
SAP and partners
 Powers business-ready solutions
that reduce custom integration
It’s Enterprise Services
Architecture increases business
process flexibility
SAP NetWeaver
The integration and application platform for lower TCO
-95-
SAP NetWeaver
People Integration
Application Platform
Process Integration
Information Integration
Multi-channel Access
Portal Collaboration
Master Data Management
Bus. Intelligence Knowledge Mgmt
Integration
Broker
Business Process
Management
Multi-channel Access
J2EE ABAP
CompositeApplicationFramework
LifecycleManagement
SAP Mobile Infrastructure
Tight coupling and alignment with SAP business solutions
SAP Enterprise Portal
Business packages
Collaboration
SAP Business information Warehouse
Business content
Tight integration to Sap
Open architecture (Crystal, Accential )
Master Data Management
Coming in 2003
SAP Exchange Infrastructure
Proxy generation and mapping tools
Integration directory
SAP’s ability to execute
SAP Web Application Server
Proven, scalable, comprehensive toolsets
Leverage existing infrastructure/skillets
SAP NetWeaver in Detail (SAP Internal View)
Product components and killer features
-96-
SAP Solutions Powered by SAP NetWeaver
Business content makes the business foundation
SAP Organizational units
-98-
Business Scenarios – Main Elements
-99-
Human ResourcesControlling
ClientClient
Company
Code
Purchasing
Organization
Personnel
Area
Production Planning
Sales and Distribution Materials Management
Financial Accounting
Sales
Area
Controlling
Area
Plant
Organizational Structure in SAP
-100-
Company Code
-101-
Organizational Structure - Levels
-102-
Organizational Structure – Business Functions
-103-
Enterprise Structure - Technology
-104-
ClientClient
Chart ofChart of
AccountsAccounts
DistributionDistribution
ChannelChannel
SalesSales
Organ.Organ.
SalesSales
OfficeOffice
SalesSales
GroupGroup
DivisionDivision
PurchasingPurchasing
GroupGroup
PlantPlant
ShippingShipping
PointPoint
StorageStorage
LocationLocation
CompanyCompany
CodeCode
LoadingLoading
PointPoint
PurchasingPurchasing
Org.Org.
SAP Organizational Structure: Cardinality
-105-
-106-
Quiz Time
• Which is not a part of SAP Business Scenario main Elements
– Master Data
– Organizational Unit
– Transaction
– Document
– All the above
• Answer True or False
– One Chart of accounts can be assigned to many Company Codes
– A plant can be assigned to many Company codes
-107-
Quiz Time
• Which is not a part of SAP Business Scenario main Elements
– Master Data
– Organizational Unit
– Transaction
– Document
– All the above
• Answer True or False
– One Chart of accounts can be assigned to many Company Codes
(True)
– A plant can be assigned to many Company codes
(False)
Organizational Elements in FICO
-109-
Organizational Units in R/3 FI
-110-
Overview: Organizational Elements in Accounting
Organizational Elements in Logistics
-112-
Overview: Organizational Elements in Logistics
-113-
-114-
-115-
Quiz Time
• State True/False
– Company is obligatory in an organization structure
• Fill in the blank
– Unit responsible for procurement of materials/services and negotiating
with vendors is called ____________.
-116-
Quiz Time
• State True/False
– Company is obligatory in an organization structure
(False – Company code is obligatory)
• Fill in the blank
– Unit responsible for procurement of materials/services and negotiating
with vendors is called Purchasing Organization
Organizational Elements in Sales
-118-
-119-
-120-
-121-
-122-
-123-
-124-
Quiz Time
Fill in the blanks
• Sales area is a combination of _____________, ________________
and _______________.
-125-
Quiz Time
Fill in the blanks
• Sales area is a combination of
– Sales Organization,
– Division and
– Distribution Channel
Navigation
-127-
Logging on to SAP System
Logon pad with
different systems
-128-
-129-
-130-
Adding to favorites
Steps to add transaction to favorites
Step I: Select the transaction you want to add to
favorites
Step II: Right click on the transaction you want to
add to favorites
Step III: Select Add to favorites.
-131-
-132-
-133-
-134-
General Settings
-136-
• Variants
• Calendar
– Public Holidays
– Holiday Calendar
– Factory Calendar
• Unit of Measurements
• Currencies
– Currency codes
– Conversions (quotations)
– Exchange Rate Type
– Rates
– Rounding rules
Global Settings (at Country level)
-137-
The Variant Principle
-138-
• Define Public Holidays
• Define Holiday Calendar
– A combination of a yearly 12-month calendar and a list of all public holidays that fall
within a calendar year.
– Gives an overview of all working days and all days off for a calendar year. It can be
created to cover a validity period of several years.
– Can be defined according to the country or region in which they are to be
implemented, and adapted to suit individual business requirements
Calendar
-139-
Calendar
• Define Factory Calendar
– Calendar in which working days are numbered sequentially.
– Defined on the basis of a public holiday calendar.
– Validity period of a factory calendar must be within the validity period of the
public holiday calendar.
– The weekdays that are working days must also be specified in this calendar.
– Examples:
• Monday through Friday are working days.
• Saturday, Sunday and public holidays are non-working days.
-140-
• Enables calculations with quantities and physical units.
• Units of measurement are needed for internal conversions (such
as kilogram <-> gram, but also centimeter <-> inch).
• The international system of units (SI) is used for this.
• UOMs are held centrally in the SAP System for all applications.
• Conversion factors are stored in the system with a unique
internal key.
• Unit of measurement can be created according to requirements.
• CAUTION: Extra care to be taken for any creation as this global
setting can affect the whole system performance
Unit of measurement
-141-
Currencies
• Legal means of payment in a country.
• You can manage ledgers in two parallel currencies in addition to the
local currency
-142-
• Currency codes
– SAP maintains about 187 currencies. If any transaction in a
new currency will happen for the organization, that currency
to be maintained
• Standard quotation
– Can specify direct or indirect quotation. System by default
will take direct quotes.
• Conversion factors
– Mention the conversion for currency to currency. For
example, INR To Yen will 1:100
• Rounding rules
– ensures that the amounts in this currency are always
rounded to this unit
Currency settings
-143-
• Exchange Rate Type is used for different business purposes
where multiple rates can be maintained for a pair of currencies
• The following exchange rate types exist
– Buying rate (G)
– Bank selling rate (B)
– Average rate (M)
– Historical exchange rate
– Key date exchange rate
• Default exchange rate types can be maintained in document
types
• For posting and clearing, the system uses the exchange rate
type M (average rate). This exchange rate type must be entered
in the system and you must also enter the exchange rates for
this type.
Exchange Rate Type
-144-
• Exchange rates in the system for the following purposes
– Posting and Clearing
– To translate amounts posted or cleared in foreign currency, or to
check a manually entered exchange rate during posting or clearing.
– Exchange Rate Differences
– To determine gains or losses from exchange rate differences.
– Foreign Currency Valuation
– To valuate open items in foreign currency and foreign currency
balance sheet accounts as part of the closing operations.
– Valuation of Purchase Documents, Sales documents and
Commitments
• Exchange rates maintained for a exchange rate type for an
effective date between two currencies
Exchange Rate
-145-
Quiz Time
• Fill in the blank
– The difference between ____________ and
____________ is called spread.
– SAP maintains ___________ number of currencies.
-146-
Quiz Time
• Fill in the blank
– The difference between Buying rate and Selling rate is
called spread.
– SAP maintains 187 number of currencies.
Thank You!

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Sap infosys fico

  • 3. -3- Business without ERP CustomersCustomers Customer Calls to place order for a Car 1 Sales office/Inventory contacts PP 3 Sales office contacts Inventory 2 ProductionProduction PlanningPlanning InventoryInventory 3 4 PP contacts Purchasing for raw material PurchasingPurchasing SalesSales
  • 4. -4- Business without ERP (Contd..) Lets add some more Business Processes
  • 5. -5- Business without ERP (Contd..) PurchasingPurchasing CustomersCustomers VendorsVendors Shop floorShop floor ProductionProduction PlanningPlanning InventoryInventory FinanceFinance Where is my car Whom to contact for status? What is this confusion What is Cost and profit What to manufactur e?? SalesSales
  • 6. -6- Lets Deliver the end product to customer.. SalesSales Dear Sir, Your Order… I did not order for a TRUCK!!!!
  • 7. -7- Business without ERP (Contd..) I AM NOT TAKING DELIVERY AND WILL NEVER DEAL WITH YOU! SalesSales We are SORRY Sir
  • 9. -9- Why Enterprise Architecture • Why Enterprise Architecture ? – Numerous disparate information systems – Integrating the data becomes costly • Time • Money • Resources – Inconsistencies and duplication of data – Lack of timely information – Required: Central enterprise definitions – Required: Centrally controlled business change
  • 10. -10- Enterprise Structure – Integrating Business PP GL Plants Shop Floor Sales HR FA AP AR Purchasing Partner Systems Payroll Treasury Marketing Mfg.
  • 11. -11-
  • 12. -12- Enterprise Architecture - Benefits • Eliminates the duplication, discontinuity and redundancy in data • Increases the return on investment made on IT implementations • Delivers quality information designed for the Enterprise as a whole • Faster and cheaper • Delivers quality information to produce a quality enterprise • Satisfying Partners/Customers • Reducing required manpower E R P
  • 13. -13- Quiz Time • What is the full form of SAP? • When was SAP founded?
  • 14. -14- Quiz Time • What is the full form of SAP? Systems Applications and Products in Data Processing • When was SAP founded? Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira – Renamed in 1977 – Before 1977 : Systems Analysis and Program Development (German : Systemanalyse und Programmentwicklung)
  • 15. -15- History of SAP • Systems Applications and Products in Data Processing – German : Systeme, Anwendungen, Produkte in der Datenverarbeitung • Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira – Renamed in 1977 – Before 1977 : Systems Analysis and Program Development (German : Systemanalyse und Programmentwicklung) • SAP is both the name of the Company as well as their ERP Product • SAP system comprises of a number of fully integrated modules, which covers virtually every aspect of the business • Three systems developed : R/1, R/2, R/3
  • 16. -16- Steps to Strategic ERP Enterprise Resource Planning is evolved through these stages … Total Company Value Evolution of ERP CreateCreate StrategicStrategic ValueValue Efficiency andEfficiency and ControlControl AutomationAutomation 80’s R/280’s R/2 90’s R/390’s R/3 Today mySAP ERP Inter-Enterprise Co-operation Inter-Enterprise Co-operation Enterprise Resource Planning Enterprise Resource Planning Collaborative Business Collaborative Business
  • 18. -19- Quiz Time • SAP R/3 client server architecture evolved in year___________. • Which is the latest SAP product? – mySAP ERP – mySAP Business Suite – mySAP.com with one step business
  • 19. -20- Quiz Time • SAP R/3 client server architecture evolved in year 1992 • Which is the latest SAP product? – mySAP ERP – mySAP Business Suite – mySAP.com with one step business
  • 21. -22- 3 Tier Client / Server Architecture • The SAP R/3 architecture is based on a 3-tier client/server principle – Presentation Server – Application Server – Database Server • Dedicated Servers are linked by Communication Networks • Perform tasks without sacrificing data integration and processes within the system, as a whole
  • 22. -23- SAP R/3 System Architecture (Contd...2)
  • 23. -24- Overview of Presentation & Database Servers • The Presentation Server – GUI only – At workstation – Very light – Sends requests to application server – Obtains screens from application server and displays • The Database Server – Interface between application server and RDBMS – Also holds the vendor specific DB driver
  • 24. -25- SAP R/3 Conceptual Areas SAP Conceptual Areas Application Area (Initiate and execute SAP transactions) (Functional) Basis Area (The technical administration of the system) (Authorizations/Ids/etc) Development Area (1. A developer’s workbench 2. Create & Test ABAP/4 programs) (Technical)
  • 26. -27- Clients in R/3 • The Logon Client – 3 digit number ( 000 to 999) – Helps maintain independent sets of data within the same R/3 system • Client mechanism and handling
  • 28. R/3 Technology Environment DB2 forDB2 for OS/390OS/390 ADABAS DADABAS D DB2 for AIXDB2 for AIX INFORMIX-OnLineINFORMIX-OnLine ORACLEORACLE Windows 3.1, Windows 95, Windows NT,Windows 3.1, Windows 95, Windows NT, OSF/Motif *, OS/2 Presentation Manager (PM),OSF/Motif *, OS/2 Presentation Manager (PM), Macintosh *, JavaMacintosh *, Java ADABAS DADABAS D MS SQL ServerMS SQL Server INFORMIX-OnLineINFORMIX-OnLine ORACLEORACLE ABAP/4, C, C++, HTML, JavaABAP/4, C, C++, HTML, Java DB2 forDB2 for OS/400OS/400 OS/390OS/390 AIXAIX Digital UNIXDigital UNIX HP-UXHP-UX ReliantReliant UNIX (SINIX)UNIX (SINIX) SOLARISSOLARIS Windows NTWindows NT OS/400OS/400 HardwareHardware Bull/ZenithBull/Zenith CompaqCompaq Data GeneralData General ...... NCRNCR SequentSequent SNISNI DigitalDigital HP (Intel)HP (Intel) IBM (Intel)IBM (Intel) BullBull DigitalDigital HPHP IBMIBM SNISNI SUNSUN UNIX SystemsUNIX Systems IBMIBM AS/400AS/400 OperatingOperating systemssystems DialogDialog SAPGUISAPGUI LanguagesLanguages DatabasesDatabases IBMIBM S/390S/390
  • 29. -30- Platforms and Databases supported by R/3 Operating Systems Supported Hardware Supported Front ends Supported Databases AIX SINIX IBM SNI SUN Win 3.1/ 95 / NT DB2 for AIX SOLARIS HP-UX Digital HP OSF / Motif Informix – Online Digital Unix Bull OS/2 Macintosh Oracle 7.1 ADABAS D Windows NT AT&T Compaq Bull / Zenith HP (Intel) SNI IBM (Intel) Digital (Intel) Data-General Win 3.1 / 95 / NT OSF / Motif OS/2 Macintosh Oracle 7.1 SQL Server 6.0 ADABAS D OS/400 AS/400 Win 95 OS/2 DB2/400
  • 31. -32- Quiz Time Match the following Presentation Server Windows Application Server Basis 3 Digit number Quality System Client Testing/ UAT GUI Unix Systems Oracle Authorizations Client Business Administration
  • 32. -33- Quiz Time Match the following Presentation Server GUI Application Server Business Administration 3 Digit number Client Client Testing/ UAT Quality System (QC) Unix Systems Windows Authorizations Basis
  • 34. -35- SAP Modules SAP R/3SAP R/3 FIFI WFWF PSPS PMPM WMWM PPPP MMMM SDSD HRHR AMAM COCO QMQM PP – Production Planning WM – Warehouse Management PM – Plant Maintenance AM – Asset Management PS – Project System MM – Materials Management SD – Sales and Distribution QM – Quality Management WF – Workflow HR – Human Resources CO – Controlling FI – Financial Accounting
  • 35. -36- • Financial accounting (FI) • Controlling (CO) • Asset management (AM) • Materials management (MM) • Sales and Distribution (SD) • Production Planning (PP) • Quality management (QM) • Plant maintenance (PM) & Customer Service (CS) • Project system (PS) • Human resources (HR) • Workflow (WF) SAP R/3 Application Modules
  • 36. -37- MM Material Procurement Inventory Management Batch Management Goods inspection Invoice Verification PP BOM/Work Center/Routing MRP Capacity Evaluations Production Orders QM in production SD Inquiry processing Sales Order Processing Delivery Processing Billing FI General Ledger Accounts Payable Accounts receivable Cash management CO Cost Center Accounting Product Costing Order Contribution Analysis Module Functionalities
  • 37. -38- Quiz Time Match the following Financial Accounting Inventory Management Controlling Shop Floor Control Materials Management Financial Reporting Sales & Distribution Profit center Accounting Production Planning Billing Project System Activity monitoring Asset Management
  • 38. -39- Quiz Time Match the following Financial Accounting Asset Management & Financial Reporting Controlling Profit center Accounting Materials Management Inventory Management Sales & Distribution Billing Production Planning Shop Floor Control Project System Activity monitoring
  • 39. -40- • External reporting of • General ledger • Accounts receivable/payable • Sub-ledger accounts with a user-defined Chart of Accounts • Key elements • General ledger • Accounts payable • Accounts receivable • Asset Management • Special Purpose Ledger (FI-SL) • Legal consolidation • Accounting Information System Module FI – Financial Accounting
  • 40. -41- ConsolidationConsolidation Extended General LedgerExtended General Ledger PayablesPayables ReceivablesReceivables BankBank accountsaccounts General LedgerGeneral Ledger Cash managementCash management and forecastand forecast Foreign exchangeForeign exchange managementmanagement ManagementManagement of securetiesof secureties and loansand loans Finance informationFinance information systemsystem BankBank InvoiceInvoice verificationverification AccountsAccounts payablepayable CreditCredit managementmanagement AccountsAccounts receivablereceivable Financial Accounting
  • 41. -42- • Represents the flow of cost and revenue • Instrument for organizational decisions • Key elements of the CO application module include : • Cost center accounting • Product cost Planning • Product Costing • Profitability analysis • Profit center accounting • Activity based costing • Enterprise controlling Module CO – Controlling
  • 42. -43- • Optimize tasks/activities in • Sales • Delivery • Billing • Key elements of the SD application module include : • Pre-sales support • Inquiry processing • Quotation processing • Sales order processing • Delivery processing • Warehouse management • Billing • Credit Management • Sales Information system Module SD – Sales and Distribution
  • 43. -44- Sales and Distribution Processing MATERIALSMANAGEMENT F I N A N C I A L A C C O U N T I N G Sales activity SALESINFORMATIONSYSTEM Sales Support Sales Shipping Billing Subsequent delivery free of charge Inquiry Quotation Contract Delivery free of charge Sales order Returns Scheduling agreementUSD Delivery InvoiceDebit memo Credit memo
  • 44. -45- • Supports • Procurement • Inventory • Key elements • Materials procurement (purchasing) • Inventory management • Invoice verification • Material valuation • Vendor evaluation • External Services management • Purchasing Information System (PurchIS) • Inventory Controlling Information system Module MM – Materials Management
  • 45. -46- Materials Management Service / spare parts Material Special stock Batch Vendor/one-time customer Purchasing info record Service specifications Workflow Optical archive Texts Mail Communication Classification Documents Conditions BASIC DATA Purchasinginformationsystem Vendorevaluation  Purchase requisition PURCHASING  MRP  Direct requisition  Release procedures  RFQ/Quotation  Material/service  Price comparisons  Price comparison list  Purchasing  Purchase orders  Outline agreements  Scheduling agreements  Goods receipt/issue  Transfer posting  Quantities and values  Physical inventory  Storage bins  Check and post  Price update INVENTORY MANAGEMENT INVOICE VERIFICATION SDSD PPPP PMPM QMQM FIFI AMAM COCO PSPS Third-party order Requirements Inspection lot Fixed assets Cost center / Budget Project G/L accounts Cash management and forecast Service/ Spare Parts
  • 46. -47- • To plan and control the manufacturing activities • Key elements • Bill of Material (BOM) • Routings • Work Centers • Sales and Operations planning (SOP) • Master Production Scheduling (MPS) – Capacity Planning • Materials Requirement Planning (MRP) • Shop Floor Control (SFC) • Production orders • Product costing, activity-based costing • Work in process • Kanban • Production planning for process industries (PP-PI) • Repetitive Manufacturing Module PP – Production Planning
  • 47. -48- FIFI COCO HRHR CostCost accountingaccounting FinancialFinancial accountingaccounting HumanHuman resourcesresources ProjectProject NetworksNetworks MaintenanceMaintenance RepairsRepairs PlantPlant maintenancemaintenance Inbound RawInbound Raw MaterialMaterial Finished GoodsFinished Goods Sales and OperationsSales and Operations PlanningPlanning Demand management /Demand management / MPSMPS Material requirementsMaterial requirements planningplanning Detailed Schedeling andDetailed Schedeling and PlanningPlanning Capacity planningCapacity planning Shop floor controlShop floor control CostingCosting Information systemInformation system PurchasingPurchasing WarehouseWarehouse InvoiceInvoice verificationverification SalesSales ShippingShipping BillingBilling CustomersCustomers VendorsVendors SDSDPPPP SDSDSDSD SDSDMMMM SDSDQMQM SDSDPMPM SDSDPSPS Production Planning
  • 48. -49- • Supports • Quality planning • Inspection • Control for manufacturing • Costing • Procurement • Key elements • Quality planning • Quality during procurement, production, distribution • Quality Management Information - Quality inspection • Information System (QMIS)) Module QM – Quality Management
  • 49. -50- • PS – Project Systems • Support planning, control, & monitoring of long term highly complex projects with defined goals • Key elements • Project WBS – Plan • Budget & Monitor • Network Management • Activity monitoring, Material Planning, Milestones, Capacities Scheduling • Project Management Information System • HR – Human Resource • Key elements • Recruitment • Payroll & Time management • Travel Expense accounting & Benefits • Workforce planning & Training administration • Organization management Module PS – Project System & HR – Human Resource
  • 50. -52- Quiz Time • Is Industry solutions an SAP module like FI/CO/MM etc? • True/False – PP Supports procurement and Inventory – FI Handles project budgeting and monitoring – WF management is a support tool for all modules
  • 51. -53- Quiz Time • Is SAP - Industry solutions a module like FI/CO/MM etc? NO • True/False – PP Supports procurement and Inventory (False – MM Supports these functions) – FI Handles project budgeting and monitoring (False – PS handles these functions) – WF management is a support tool for all modules (True)
  • 52. -54- • Combines SAP R/3 application modules to additional industry- specific functionality • Result of the research by industry Centers expertise (ICOE) IS – Industry Solutions
  • 53. -55- mySAP Industry Solutions (Some Examples) • SAP for Aerospace & Defense • SAP for Media • SAP for Automotive • SAP for Mill Products • SAP for Banking • SAP for Mining • SAP for Chemicals • SAP for Oil & Gas • SAP for Consumer Products • SAP for Pharmaceuticals • SAP for Engineering, Construction & Operations • SAP for Professional Services • SAP for Healthcare • SAP for Public Sector • SAP for High Tech • SAP for Retail • SAP for Higher Education & Research • SAP for Service Providers • SAP for Industrial Machinery & Components • SAP for Telecommunications • SAP for Insurance • SAP for Utilities
  • 55. -57- Evolution of SAP products R/3 R/3 Enterprise SAP NetWeaver mySAP ERP Solutions mySAP CRM mySAP SCM mySAP HR mySAP PLM ……….. mySAP Business Suite Web AS •Easing Upgrade Plans & Providing Transition Options •Bringing benefits of SAP Netweaver into installed base •New Customers have more entry options & receive world –class ERP
  • 56. -58- Evolution of SAP products SAP R/3 my SAP Solutions my SAP Business Suite
  • 58. -60- Operations Corporate Services mySAP HR mySAP Financials Adaptive Business Solutions SAP R/3 mySAP SCMmySAP PLM mySAP SRM mySAP CRM mySAP Solutions
  • 59. -61- mySAP PLM mySAP SCM mySAP mySAP SRM CRM Operations Corporate Services mySAP HR mySAP Financials Application Platform ( Web As) People Integration (Portal) Information Integration( BI,MDM) Process Integration (XI) SAP NetWeaver my SAP Business Suite
  • 60. -62- mySAP Solutions & Netweaver • mySAP CRM • mySAP SRM • mySAP SCM • mySAP PLM • SAP Netweaver
  • 61. My SAP Customer Relationship Management (CRM)
  • 64. -66- Where does a CRM solution fit? WhoWho Sales ServiceMarketing Executives What Service Transact Fulfill Engage Which wayWhich way Internet Mobile Telephony HowHow Operational CollaborativeAnalytical Workplace Use a CRM Solution to complete the Cycle
  • 65. -67- CRM Component Landscape OLTP R/3 System BW APO Mobile Clients Internet mySAP.com Portal Users As one big logical box CRM System Telephone Callers
  • 66. -68- CRM Internet Sales B2C Scenario Consumer BBP Scenario Business Partner B2R Scenario Reseller Internet- selling Enterprise
  • 67. -69- Service module within CRM • Service Planning • Proactively engage customers with the correct resources at the most beneficial times • Customer Care • Provide customer with 24/7 accessibility from all communication channels with precise and consistent informationon • Installed Base Management • Maintain an accurate, up-to-date record of a customer’s products and installations to facilitate service and anticipate customer requirements
  • 68. -70- Mobile Sales module within CRM • Suite of tools tailored to the needs of the offline mobile sales force – Provides an integrated view of customers, prospects, products, services, competitors, activities, opportunities, quotations, orders, etc. – Heavy cross-referencing for easy navigation • Facilitates the sales process by – Effectively managing customers and prospects – Providing appropriate customer, product and competitive information – Determining product and pricing configurations – Managing sales projects across sales teams – Generating presentation and proposals
  • 69. -71- Quiz Time • What is the latest version of mySAP CRM • Name the three service modules with in CRM
  • 70. -72- Quiz Time • What is the latest version of mySAP CRM (Version 5.0) • Name three service modules with in CRM – Service Planning – Customer care – Installed base management
  • 71. My SAP Supplier Relationship Management (SRM)
  • 73. -75- Key Components of mySAP SRM mySAP SRM – eProcurement mySAP SCE Supplier Collaboration Engine • Enterprise Buyer Prof 3.5 • Business Inf. W’house 3.0B • Requisite Bugs Eye 3.5 • Requisite eMerge 3.5 • Enterprise Portal 5.0 • Supplier self services 1.0 • Bidding Engine 3.5 • User Management 3.0 Exchange Infrastructure Content Integrator
  • 74. -76- Key Components of mySAP SRM • Strategic Sourcing •Sourcing analytics: Helps provide analytics based on supplier location, line of business •Supplier evaluation: Helps you evaluate the supplier base within the organization systems and external market places to identify and select supplier to ensure reliable & uninterrupted supply •Request for quotation and auctions: Provides electronic auctioning and bidding tools to compress sourcing cycle times •Contract management: Helps create and manage value and quantity contracts • Operational Procurement •Self-service procurement: Enables decentralizing procurement process within organization, without diluting the control •Plan-driven procurement: Enables automatic purchase order generation for stock materials across the integrated supply chain •Services procurement: Enables service procurement process to be managed online
  • 75. -77- Key Components of mySAP SRM….Contd. • Supplier Enablement •Supplier portal: Provides portal features for suppliers to manage their product data and orders •Supplier connectivity: Provides capability to connect multiple suppliers through XM_- based document exchange • Content Management •Content consolidation: Provides capability to consolidate product and vendor information •Catalog content management: Provides capability to manage OCI compatible catalog with tools for data import, data edit and a search engine
  • 76. -78- Quiz Time • Name any one key component of mySAP SRM Solution map
  • 77. -79- Quiz Time • Name any one key component of mySAP SRM Solution map – Following are the three key components of mySAP SRM • Strategic Purchasing & Sourcing • Operational Procurement • Supplier Collaboration
  • 78. My SAP Supply Chain Management (SCM)
  • 80. -82- mySAP SCM SAP APO (Advanced Planning and Optimizing) Flexible and Adaptive Planning, Integration with CRM, SRM and PLM SAP ICH (inventory Collaboration Hub) Collaboration with Suppliers SAP EM (Event Management) Monitor, alert and resolve exceptions
  • 81. -83- Core Interface Typical SAP SCM Solution-scape SAP R/3 Dominant source of Master Data in SAP SCM, destination of transaction data like planning outputs or Availability Checks for Execution systems Planning system where selective Master data maintained and sourced from R/3 SAP SCM Planning Outputs include Forecasts, SNP or PPDS Planned Orders, Stock Transfers and Production Orders Module includea Demand Planning, SNP & Deployment, PPDS, GATP, TPVS and TLB Transaction Data Master Data Legacy Systems BAPI SAP CRM, SAP SRM and SAP PLM Core interface
  • 82. -84- One-on-One comparison i2 Technologies (Tradematrix SCM) SAP SCM ORACLE APS Manugistics (Networks SCM) Forecasting Demand Planner/Demand Management Demand Planner Oracle Demand Planner Demand Management ATP and Fulfillment Demand Fulfillment SAP GATP (Global ATP) Oracle GOP (Global Order Promising) Fulfillment Management Material and Resource planning Supply Chain Planning SAP SNP (Supply Network Planning) Oracle ASCP (Advanced SCP) Master Planning Manufacturing Planning Factory Planning PP/DS (Production Planning and Detailed Scheduling) Oracle Manufacturing Scheduling Manufacturing Planning and Scheduling Transportation TMS (Transportation Management Solutions) TP/VS (Transportation Planning/Vehicle Scheduling) Oracle Transportation Logistics Management Solutions
  • 83. mySAP Product Life Cycle Management (PLM)
  • 86. -88- A Roadmap for Web Services
  • 87. -89- Services are changing SAP’s Product portfolio
  • 89. -91- Document Mgmt E-sales E-procurement PLM Technical systems Trading Call Center ERP Market Analysis SCM Business Drivers Extended Value Network Increased Market Dynamics Integration costs are high Long integration projects IT environments become increasingly rigid Lots of heterogeneous systems Pressure on IT increases Must leverage existing investments Must support new business processes quicker Must reduce total cost of ownership (TCO) Integration is the Key Challenge
  • 90. -92- Document Mgmt Market Analysis SCM E-sales E-procurement PLM Technical systems Trading Call Center ERP Reduce Complexity • Minimize the number of connections through hubs •Use only one platform to integrate all people, information, and systems Reduce Cost Integration •Deliver .NET and J2EE interoperability •Deliver adaptors for ISV products •Deliver products, not projects Increase company performance •Increase ease of use, scalability and adaptability •Increase business process flexibility by using an Enterprise Services Architecture How to Address the Integration Challenge
  • 91. -93- The fundamental Web services standards are supported by the Web Application Server (Web AS), which is the basis for all other NetWeaver components
  • 92. -94- Unifies and aligns people, information and business processes Integrates across technologies and organizational boundaries A safe choice with full .NET and J2EE interoperability The Business foundation for SAP and partners  Powers business-ready solutions that reduce custom integration It’s Enterprise Services Architecture increases business process flexibility SAP NetWeaver The integration and application platform for lower TCO
  • 93. -95- SAP NetWeaver People Integration Application Platform Process Integration Information Integration Multi-channel Access Portal Collaboration Master Data Management Bus. Intelligence Knowledge Mgmt Integration Broker Business Process Management Multi-channel Access J2EE ABAP CompositeApplicationFramework LifecycleManagement SAP Mobile Infrastructure Tight coupling and alignment with SAP business solutions SAP Enterprise Portal Business packages Collaboration SAP Business information Warehouse Business content Tight integration to Sap Open architecture (Crystal, Accential ) Master Data Management Coming in 2003 SAP Exchange Infrastructure Proxy generation and mapping tools Integration directory SAP’s ability to execute SAP Web Application Server Proven, scalable, comprehensive toolsets Leverage existing infrastructure/skillets SAP NetWeaver in Detail (SAP Internal View) Product components and killer features
  • 94. -96- SAP Solutions Powered by SAP NetWeaver Business content makes the business foundation
  • 97. -99- Human ResourcesControlling ClientClient Company Code Purchasing Organization Personnel Area Production Planning Sales and Distribution Materials Management Financial Accounting Sales Area Controlling Area Plant Organizational Structure in SAP
  • 100. -102- Organizational Structure – Business Functions
  • 103. -105-
  • 104. -106- Quiz Time • Which is not a part of SAP Business Scenario main Elements – Master Data – Organizational Unit – Transaction – Document – All the above • Answer True or False – One Chart of accounts can be assigned to many Company Codes – A plant can be assigned to many Company codes
  • 105. -107- Quiz Time • Which is not a part of SAP Business Scenario main Elements – Master Data – Organizational Unit – Transaction – Document – All the above • Answer True or False – One Chart of accounts can be assigned to many Company Codes (True) – A plant can be assigned to many Company codes (False)
  • 111. -113-
  • 112. -114-
  • 113. -115- Quiz Time • State True/False – Company is obligatory in an organization structure • Fill in the blank – Unit responsible for procurement of materials/services and negotiating with vendors is called ____________.
  • 114. -116- Quiz Time • State True/False – Company is obligatory in an organization structure (False – Company code is obligatory) • Fill in the blank – Unit responsible for procurement of materials/services and negotiating with vendors is called Purchasing Organization
  • 116. -118-
  • 117. -119-
  • 118. -120-
  • 119. -121-
  • 120. -122-
  • 121. -123-
  • 122. -124- Quiz Time Fill in the blanks • Sales area is a combination of _____________, ________________ and _______________.
  • 123. -125- Quiz Time Fill in the blanks • Sales area is a combination of – Sales Organization, – Division and – Distribution Channel
  • 125. -127- Logging on to SAP System Logon pad with different systems
  • 126. -128-
  • 127. -129-
  • 128. -130- Adding to favorites Steps to add transaction to favorites Step I: Select the transaction you want to add to favorites Step II: Right click on the transaction you want to add to favorites Step III: Select Add to favorites.
  • 129. -131-
  • 130. -132-
  • 131. -133-
  • 132. -134-
  • 134. -136- • Variants • Calendar – Public Holidays – Holiday Calendar – Factory Calendar • Unit of Measurements • Currencies – Currency codes – Conversions (quotations) – Exchange Rate Type – Rates – Rounding rules Global Settings (at Country level)
  • 136. -138- • Define Public Holidays • Define Holiday Calendar – A combination of a yearly 12-month calendar and a list of all public holidays that fall within a calendar year. – Gives an overview of all working days and all days off for a calendar year. It can be created to cover a validity period of several years. – Can be defined according to the country or region in which they are to be implemented, and adapted to suit individual business requirements Calendar
  • 137. -139- Calendar • Define Factory Calendar – Calendar in which working days are numbered sequentially. – Defined on the basis of a public holiday calendar. – Validity period of a factory calendar must be within the validity period of the public holiday calendar. – The weekdays that are working days must also be specified in this calendar. – Examples: • Monday through Friday are working days. • Saturday, Sunday and public holidays are non-working days.
  • 138. -140- • Enables calculations with quantities and physical units. • Units of measurement are needed for internal conversions (such as kilogram <-> gram, but also centimeter <-> inch). • The international system of units (SI) is used for this. • UOMs are held centrally in the SAP System for all applications. • Conversion factors are stored in the system with a unique internal key. • Unit of measurement can be created according to requirements. • CAUTION: Extra care to be taken for any creation as this global setting can affect the whole system performance Unit of measurement
  • 139. -141- Currencies • Legal means of payment in a country. • You can manage ledgers in two parallel currencies in addition to the local currency
  • 140. -142- • Currency codes – SAP maintains about 187 currencies. If any transaction in a new currency will happen for the organization, that currency to be maintained • Standard quotation – Can specify direct or indirect quotation. System by default will take direct quotes. • Conversion factors – Mention the conversion for currency to currency. For example, INR To Yen will 1:100 • Rounding rules – ensures that the amounts in this currency are always rounded to this unit Currency settings
  • 141. -143- • Exchange Rate Type is used for different business purposes where multiple rates can be maintained for a pair of currencies • The following exchange rate types exist – Buying rate (G) – Bank selling rate (B) – Average rate (M) – Historical exchange rate – Key date exchange rate • Default exchange rate types can be maintained in document types • For posting and clearing, the system uses the exchange rate type M (average rate). This exchange rate type must be entered in the system and you must also enter the exchange rates for this type. Exchange Rate Type
  • 142. -144- • Exchange rates in the system for the following purposes – Posting and Clearing – To translate amounts posted or cleared in foreign currency, or to check a manually entered exchange rate during posting or clearing. – Exchange Rate Differences – To determine gains or losses from exchange rate differences. – Foreign Currency Valuation – To valuate open items in foreign currency and foreign currency balance sheet accounts as part of the closing operations. – Valuation of Purchase Documents, Sales documents and Commitments • Exchange rates maintained for a exchange rate type for an effective date between two currencies Exchange Rate
  • 143. -145- Quiz Time • Fill in the blank – The difference between ____________ and ____________ is called spread. – SAP maintains ___________ number of currencies.
  • 144. -146- Quiz Time • Fill in the blank – The difference between Buying rate and Selling rate is called spread. – SAP maintains 187 number of currencies.

Notas del editor

  1. Enterprise Architecture Let us see what an enterprise Architecture is, why we need such an architecture and what its benefits are. Why Enterprise Architecture? Most companies have had numerous information systems that were developed individually over time. For e.g., The Accounting, Purchasing, Shipping, Logistics, Human Resources and Sales departments etc of a company might have independent information systems built for their own internal purposes. Now, Integrating the data from these disparate systems costs a great deal of time and money. The inconsistencies and duplication of data in distinct systems leaves management with uncertain answers to key business questions. Lack of timely information in the fast-paced competitive business world, had many managements reevaluating the benefits of their technology investments. Evidently, the need for a single integrated system was felt as the only and very essential solution. This in effect gave birth to such a system, which we call as an Enterprise Architecture.
  2. Benefits of Enterprise Architecture As we see, an Enterprise Architecture Eliminates discontinuity and redundancies of data in the enterprise systems, making it useful for management purposes. Delivering quality information designed for the Enterprise as a whole, proves to be faster and cheaper. In effect, an Enterprise Architecture Delivers quality information to produce a quality Enterprise. An enterprise architecture is also popularly called as an ERP solution, as an enterprise architecture in itself is an offshoot of the concept of Enterprise Resource Planning.
  3. History of SAP. SAP is the leading ERP software package. SAP was the first to integrate a corporation&amp;apos;s worldwide functions tightly into one application. SAP, translated from its original German name, stands for Systems Applications and Products in Data Processing. Five former IBM programmers founded SAP AG in Germany, and released the first version of their software, SAP R/2, in 1979. SAP renamed itself in 1977, prior to which it was called as Systems Analysis and Program Development. Its domination of the market occurred during the 1980s, expanding first throughout Europe (early 1980s) and then North America (1988). SAP R/3, an advanced, client-server based version of the popular R/2 product, was released in 1992 and sparked a stunning takeover of America&amp;apos;s largest businesses. SAP is both the name of the company and their ERP product SAP system comprises of a number of fully integrated modules, which virtually covers every aspect of the business management Using SAP&amp;apos;s products, companies can now integrate their accounting, sales, distribution, manufacturing, planning, purchasing, human resources, analysis and other transactions into one application. SAP applications thus provide an environment where &amp;quot;transactions are synchronized throughout the entire systems.&amp;quot; With 56,000 installations serving 10 million users at 18,800 organizations in 120 countries across the globe, SAP ranks as the world&amp;apos;s third-largest independent software provider. So far, there have been 3 systems developed by SAP. namely, R/1, R/2, R/3.
  4. ERP is not new to the marketplace. In fact, SAP created ERP over 30 years ago. 30 years ago the private sector was looking to streamline the business process, eliminate redundancy and frankly reduce the number of systems required to run the business. ERP was the answer. Many organizations we able to significantly reduce systems, cycle time, reconcilation processes etc. With ERP, we were able to reduce cost, simplify the IT landscape, and most importantly impact the operation of the business. During those times, most organizations were able to achieve headcount reduction, inventory reduction, reduction of close time etc. In the late 80’s and into the 90’s companies started to embrace decision support. Many companies embraced the data warehouse concept. It was primarily used for reporting. Sap initially embedded many reports into our solution set. Today, not only is operational excellence and decision support necessary to survive but we must do more. In fact, we must create value in order to survive and effectively compete. Today, organizations are focused on business performance, collaboration and innovation. Look at the President Bush’s management agenda. Technology can not only reduce cost but it can definitely impact the operation. ERP is part of the solution In fact, we have many choices for efficiency and control – business process outsourcing, hosting etc. Yet we know that the data captured in our transactional systems is the exact data that is needed to provide transparency across the enterprise. It is the analysis of this data that gives organizations the opportunity to make much better decisions. Not only can we make those decisions but we can see the impact on the business and the performance of the business.
  5. SAP is the inventor of REAL TIME ERP solutions. This is what originally made SAP unique, and it is still a major strength. SAP became the industry standard; we have remained the yardstick ever since. In the 90‘s, dot.com madness took over and the spotlight fell on eBusiness for a while. Now the spotlight is firmly on ERP. And SAP is becoming the standard for collaborative business applications.
  6. SAP stands for “Systems, Applications &amp; Products in data processing”. Head-quartered in Waldorf, Germany, SAP is the recognized leader in providing collaborative business solutions for all types of industries and for every major market Over the course of three decades, SAP has evolved from a small, regional enterprise into a world-class international company. Today, SAP is the global market leader in collaborative, inter-enterprise business solutions. SAP Snapshot: 1.1 Leader in providing collaborative e-business solutions 1.2 Solutions for all types of industries and for every major market 1.3 Greater market-share than any other business software organization 1.4 Strong ecosystem allows for continued growth, thought leadership and ability to meet all customer requirements
  7. The picture here illustrates a typical R/3 system. Multiple presentation layers from multiple computers communicate with the application servers over the local or wide area network. For a single R/3 system, there may be multiple application servers in order to balance the operational load. All these application servers interact with a single database server. And as the picture illustrates, the database server acts as the interface between the external RDBMS and the application servers. A single database, the R/3 database server that accesses it and the set of one or more application servers and their processes, that govern the business administration and the data sent and received from the database server… all these components that constitute a logically single R/3 system, is called as an R/3 instance.
  8. Overview of Presentation &amp; Database Servers Let us now have a very brief overview of the presentation layer and the database server. The presentation server is simply a GUI that is running at the user’s workstation. It is a very light component, called as a thin client in common terminology. It is capable of sending requests to the application server, receiving the requests back and displaying the screen back to the user. Multiple instances of presentation servers can execute in the same work station. And generally the presentation layers are, to a good extent, downward compatible with the application servers, in terms of the version. For e.g., A “4.6 C” version GUI would be able to communicate with a “4.5 B” version application server. The messages exchanged between the presentation layer and the application server are in a SAP proprietary format. The presentation layer is capable of accepting the screen information sent from the application server, format and generate the screens appropriately for the platform it is running on. The database server, as we saw earlier, acts as an interface between the application server and the RDBMS. As we know already, the R/3 system does not include the RDBMS. In other words, R/3 is independent of the RDBMS. R/3 is operational on a number of commercial RDBMSs. The vendor specific DB driver resides in the database server.
  9. SAP R/3 Conceptual Areas The R/3 system, as an application, is conceptually divided into 3 areas. Namely the application area, the basis area and the development area. This is in being synonymous to the 3 main type of users. Viz., the application users or the end users, the admin users, popularly called as the basis people and the developers. The application area is where users initiate and execute transactions of the various functional areas of R/3 like Accounting, Human Resources, Logistics etc. The basis area is where the basis people or the admin users execute transactions that are used for monitoring the R/3 system like performance, database administration, scheduling etc. The development area is where tools and transactions are available for developers and programmers to create and test ABAP/4 programs. This is referred to as a developer’s workbench.
  10. Basic SAP R/3 and ABAP/4 concepts We will now brush through a few basic concepts of the R/3 System The Logon Client The term “logon client” has nothing to with the Client/Server terminologies. A client in R/3, is a 3 digit number which enables one to maintain multiple independent sets of data within the same R/3 system. Within the same R/3 system we can have client with range 000 to 999. The client id is also supplied along with user id and password at the time of login. This means that each client will have an independent set of data. For e.g., when a person logs into client 800, the data he sees, for e.g., purchase orders or vendor details etc., will not be available when he logs into client 700. Client mechanism and handling The client concept is implicitly handled within the same R/3 system. In the figure illustrated, when a user logs on to client 800 and runs a program that selects the field LIFNR from the table LFA1, the result of that selection would only be two rows though there are 6 rows available in the table. Similarly, had the user logged on to client 700, the selection would have yielded only 4 rows. As we see, the client concept is handled using an extra field MANDT in the table to store the client. We need to note here that the table illustrated here is client-dependent. Which means that the data stored within the table is dependent on the logon client. But however, an R/3 table can also be client independent i.e., the MANDT field would not be present in the table and the data contained in the table is same across all clients. The SAP client concept allows you to map each customer to one client, without having to install and administer a separate systems for each customer. This makes it possible for the provider to install a small number of SAP Systems, but still cater to a large number of customers. Costs are not only saved by sharing hardware and software, multiple customers also use the same application solution, including administration and support. But however, to guarantee the secure and reliable co-existence of customers under a common system umbrella, certain rules and guidelines must be followed.
  11. Clients are used to divide data in a SAP System into various data areas for various purposes. If a company, for example, wants to use its SAP System for both test and training purposes, a client is created for each purpose. A client is identified via a three character code. Data can be moved via transports and corrections from one client to another. When logging on to the system, the user has to select a client in which he/she wants to work. The user can then only access data in this client.
  12. When you use R/3, you are free to choose your technical infrastructure. You determine which hardware, operating systems, or databases you want to use. The entire gamut of offerings from the leading international vendors is open to you; you can even plan your IT strategy with various systems from different manufacturers. Most importantly, the openness of R/3 protects your investment for the long term. As your company grows, R/3 grows with you. And if you change your hardware environment, R/3 stays with you on your path of change without jeopardizing your software investment. Infinitely expandable The number of workstations you include with the R/3 in your client/server solution is determined solely by your individual need. R/3 is infinitely expandable, and can be used just as well in client/server architectures with 30 seats as in installations with 3,000 end-users. This scalability ensures that R/3 can always grow with your requirements. We offer total solutions for qualified client/server information processing that combines a variety of products and services in a smoothly functioning communication network. R/3 incorporates not only system management, database recovery, and print management, but also network administration and backup solutions. Our partnerships with hardware manufacturers, database providers, and technology and service companies play a significant role here. Everything is possible... The benefit: Cooperative client/server processing distributes applications and computing capabilities almost at will across a number of levels, and systematically takes advantage of the strengths of different hardware and software components. Whether you use R/3 in two- or three-tier client/server architectures, locally or worldwide,
  13. Platforms and Databases supported by R/3 The R/3 Application server can be installed on multiple operating systems including Solaris HP – Unix, Windows NT and OS/400. And for each of these operating systems, multiple hardware platforms are also supported. The presentation layer GUI is also supported in many operating system which includes Win 95, Win NT, OS/2 and Macintosh. The R/3 database server can also be implemented of various RDBMS including DB/2, Informix, Oracle and SQL Server.
  14. The R/3 System architecture allows you to separate application from the presentation and the database. This is the prerequisite for distributing load onto several application servers in client/server configurations. Therefore, the system can be distributed, in hardware terms, at three different levels. This architecture means that the installed host service can be adjusted without any problems (scalability), especially where load profiles have changed as a result of increasing user numbers, or because additional components have been used. R/3 System scalability provides you with flexibility when choosing hardware and software. Examples of R/3 System scalability: . Brewery - 20 users . Small Telecom company - 415 users . Large Software Company - 2000 users . Oil &amp; Gas Company - 2500 users . Large Engineering Company- 3200 users . Large Telecom Company- 5800 users
  15. Let us see a few of the R/3 Modules in brief Financial Accounting Financial Accounting is designed for automated management and external reporting of general ledger, accounts receivable, accounts payable and other sub-ledger accounts with a user defined chart of accounts. As entries are made relating to sales production and payments journal entries are automatically posted. This connection means that the &amp;quot;books&amp;quot; are designed to reflect the real situation. Controlling Controlling represents the company&amp;apos;s flow of cost and revenue. It is a management instrument for organizational decisions. It is also automatically updated as events occur. Assets Management Asset Management is designed to manage and supervise individual aspects of fixed assets including purchase and sale of assets, depreciation and investment management. Sales and Distribution Sales and Distribution helps to optimize all the tasks and activities carried out in sales, delivery and billing. The key elements are; pre-sales support, inquiry processing, quotation processing, sales order processing, delivery processing, billing and sales information system. Materials Management Materials Management supports the procurement and inventory functions occurring in day-to-day business operations such as purchasing, inventory management, reorder point processing, etc. Production Planning Production Planning is used to plan and control the manufacturing activities of a company. This module includes; bills of material, routings, work centers, sales and operations planning, master production scheduling, material requirements planning, shop floor control, production orders, product costing, etc Quality Management Quality Management is a quality control and information system supporting quality planning, inspection, and control for manufacturing and procurement. Plant Maintenance In a complex manufacturing process, maintenance means more than sweeping the floors. Equipment must be services and rebuilt. These tasks affect the production plans. Plant Maintenance module supports and supervises these maintenance. Warehouse Management Warehouse Management provides flexible, automated support to assist in processing all goods movements and in maintaining current stock inventories in the warehousing complex. Human Resources Human Resources is a complete integrated system for supporting the planning and control of personnel activities. Workflow Workflow is a solution which has been integrated fully in the R/3 System and which enables customer-specific business process flows to be coordinated and controlled on a cross-application and cross-workplace basis. Project System Project System is designed to support the planning, control and monitoring of long-term, highly complex projects with defined goals.
  16. Industry solution is the latest value proposition of SAP to customer. Industry solutions are aimed at addressing the specific business process areas of different industries differently, hence pre-customizing the package for generic industry purpose. Through its industry solutions, SAP addresses the unique core processes of more than 25 distinct industries. Combined with industry-specific applications and best business practices, all industry solution sets use and build upon mySAP™ Business Suite solutions, powered by the SAP NetWeaver™ platform. SAP currently around 27 Industry solutions. Some of the key verticals are listed below: 1. Manufacturing Industries SAP for Automotive SAP for Chemicals SAP for Consumer Products SAP for Engineering, Construction &amp; Operations (SAP for EC&amp;O) SAP for High Tech SAP for Oil &amp; Gas (SAP for O&amp;G) 2 Service Industries SAP for Media SAP for Professional Services SAP for Retail SAP for Telecommunications SAP for Utilities 3 Public Services SAP for Healthcare and SAP for Public Sector 4 Financial Services SAP for Banking, SAP for Financial Service Providers and SAP for Insurance
  17. Business partner master data is the building block for the whole customer interaction cycle. Business partner master data is not restricted to customers but reflects also competitors, partners and employees that may be involved in the sales or service cycle.
  18. Description of each offereing and what this means Please do not clutter the slides....
  19. It is a comprehensive integration and application platform, SAP NetWeaver works with your existing IT infrastructure to enable and manage change. With SAP NetWeaver, you can flexibly and rapidly design, build, implement, and execute new business strategies and processes. The platform enables you to drive innovation throughout your organization by recomposing existing systems while maintaining a sustainable cost structure. You can also add innovative, industry-specific business processes with reduced risk to existing systems and a strong return on investment. SAP NetWeaver unifies integration technologies into a single platform and is preintegrated with business applications, reducing the need for custom integration. The platform is based on industry standards and can be extended with commonly used development tools such as Java 2 Platform, Enterprise Edition (J2EE); Microsoft .NET; and IBM WebSphere. SAP NetWeaver makes change sustainable by helping you contain costs and reduce risk as you evolve your business. The platform is the technical foundation of mySAP Business Suite solutions, SAP xApps composite applications, partner solutions, and custom-built applications -- including composite applications -- providing the best way to integrate all systems running SAP or non-SAP software. It also enables Enterprise Services Architecture, SAP&amp;apos;s blueprint for service-oriented business solutions. Finally, SAP NetWeaver is the technology foundation that powers SAP solutions.
  20. Business Scenario: Business-related grouping of business processes localized in a specific organizational area that share some similar goals in an enterprise, such as purchasing, services, balance sheet preparation, production, personnel administration, and so on. Organizational Unit: Organizational grouping of enterprise areas which, for legal reasons or for other specific business-related reasons or purposes, are grouped together. Organizational units include legal company entities, sales offices, and profit centers. Master Data: Data which is used long-term in the R/3 System for several business processes. Examples include customers, materials, and vendors. Transactions: Application programs which execute business processes in the R/3 System such as creating a customer order, posting an incoming payment, or approving a leave request. Document: A data record that is generated when a transaction is carried out. Reports: Program which reads certain data elements and displays them in a list.
  21. Client :- In commercial, organizational and technical terms, a self-contained unit in an R/3 System with separate master records and its own set of tables. Company code :- The smallest organizational unit of Financial Accounting for which a complete self-contained set of accounts can be drawn up for purposes of external reporting. This includes recording of all relevant transactions and generating all supporting documents required for financial statements. Plant :- In Logistics a plant is an organizational unit for dividing an enterprise according to production, procurement, maintenance, and materials planning. A place where materials are produced, or goods and services are provided. Controlling Area :- An organizational unit within a company, used to represent a closed system for cost accounting purposes. A controlling area may include single or multiple company codes that may use different currencies. These company codes must use the same operative chart of accounts. All internal allocations refer exclusively to objects in the same controlling area. Sales Area :- A combination of sales organization, distribution channel, and division Purchasing Organization :- An organizational unit in Logistics, subdividing an enterprise according to the requirements of Purchasing. Purchasing Organization :- A purchasing organization procures materials and services, negotiates conditions of purchase with vendors, and is responsible for such transactions. You specify the form of procurement by assigning purchasing organizations to company codes and plants. Possible forms are: Enterprise-wide: One purchasing organization procures for all the company codes of a client - that is, for all companies belonging to a corporate group Company-specific: One purchasing organization procures for one company code Plant-specific: One purchasing organization procures for one plant Mixed forms are possible. These are replicated in the system using reference purchasing organizations. A purchasing organization can access and use the most favorable conditions and centrally agreed contracts of the reference purchasing organization assigned to it. Personnel Area :- An organizational unit representing an area in an enterprise delimited according to personnel administration, time management, and payroll accounting criteria.
  22. A company code is an independent accounting entity (the smallest organizational element for which a complete self-contained set of accounts can be drawn up). An example is a company within a corporate group. It has a unique, four character key. The general ledger is kept at the company code level and is used to create the legally required balance sheets and profit and loss statements. A company code designation is required for every financially based transaction entered into R/3. This is done either manually or automatically by deriving the company code from other data elements.
  23. The highest-level element of all organizational units is the client. The client can be an enterprise group with several subsidiaries. All of the enterprise data in an R/3 System implementation is split into at least the client area, and usually into lower level organizational structures as well. Flexible organizational units in the R/3 System enable more complex enterprise structures to be represented. If there are many organizational units, the legal and organizational structure of an enterprise can be presented in different views. By linking the organizational units, the separate enterprise areas can be integrated and the structure of the whole enterprise represented in the R/3 System.
  24. An enterprise is structured in the SAP R/3 System according to business functions that must correspond to the functionality assigned to the organizational units. Examples: . A Company Code is a unit included in the balance sheet of a legally-independent enterprise. It is the central organizational element of Financial Accounting. . The Controlling Area is the business unit where Cost Accounting is carried out. Usually there is a 1:1 relationship between the controlling area and the company code. For the purpose of companywide cost accounting, one controlling area can handle cost accounting for several company codes in one enterprise. . In the context of Sales and Distribution, the Sales Organization is central organizational element that controls the terms of sale to the customer. Distribution Channel is the element that describes through what channel goods and/or services will be distributed to the customer. . In the context of Production Planning and Control, the Plant is the central organizational unit. A plant is the place of production or simply a collection of several locations of material stocks in close physical proximity. A Storage Location is a storage area comprising warehouses in close proximity. Material stocks can be differentiated within one plant according to storage location (inventory management).
  25. An enterprise structure is mapped to SAP applications using organizational units. Organizational units handle specific business functions. Organizational units may be assigned to a single application (such as a sales organization assigned to Sales and Distribution, or to several applications (such as a plant assigned to Materials Management and Production Planning).
  26. The client is the highest level in the R/3 system hierarchy. Specifications or data which shall be valid for all organizational units in all R/3 applications are entered at the client level, eliminating the need to enter this information more than once (e.g. exchange rates). Each client is a self-contained unit which has separate master records and a complete set of tables and data. Users must enter a client key and have a user master record in the client in order to log on to the system. Main FI-units: . Company: A group of statutory entities for consolidating results . Company code (external purposes) A Company Code represents an independent balancing/legal accounting entity. An example would be a company within a corporate group. Balance sheets and profit/loss statements required by law, can be created at the company code level. Therefore, a company code is the minimum structure necessary in R/3 FI. In an international business, operations are often scattered across numerous countries. Since most government and tax authorities require the registration of a legal entity for every company, a separate company code is usually established per country. . Business area (internal purposes) Business areas represent separate areas of operation within an organization and can be used across company codes. They are balancing entities which are able to create their own set of financial statements for internal purposes. The use of business areas is optional.
  27. Organizational unit Client Obligatory Company Optional Company code Obligatory
  28. Plant The site at which value addition to the production happens and stocks are handled. A Plant is a place where either materials are produced or goods &amp; services are provided Storage Location A location where a group of materials are physically handled Purchasing Organisation Unit responsible for procurement of materials and services and negotiates with vendors Purchase Groups Buyers responsible for purchases who handles specific group of materials or vendors
  29. External: Sales Organisation - represents the unit responsible for selling Distribution Channel – defines different ways of reaching customer Division – Segment responsibility of products Sales Area – the combination of Sales Org/DC/Division Credit Control Area - Area of an organization grouped from credit perspective Internal: Sales District – Sales territories in an organisation Sales Office – method of representing internal subdivions Sales Groups – further internal divisions of people in sales office Sales Employee - an employee carrying out sales Shipping Point – location in a plant from where deliveries happen Loading Point – Part of a shipping point where physical delivery is handled
  30. The R/3 System is a client system. The client concept enables the joint operation, in one system, of several enterprises that are independent of each other in business terms. During each user session you can only access the data of the client selected during the logon. A client is, in organizational terms, an independent unit in the R/3 System. Each client has its own data environment and therefore its own master data and transaction data, assigned user master records and charts of accounts, and specific customizing parameters. A user master record linked to the relevant client must be created for users to be able to log on to the system. To protect access, a password is required for logon. The password is hidden as you type (you only see asterisks). n SAP systems are available in several languages. Use the Language input field to select the logon language for each session. Multiple logons are always logged in the system beginning with Release 4.6. This is for security as well as licensing reasons. A warning message appears if the same user attempts to log on twice or more. This message offers three options: . Continue with current logon and end any other logons in the system . Continue with current logon without ending any other logons in the system (logged in system) . Terminate current logon
  31. SAP Easy Access is the standard entry screen displayed after logon. Using the menu path Extras® Set start transaction you can select a transaction of your choice to be the default entry screen after logon. You navigate through the system using a compact tree structure that you can adapt to your own specific requirements. Use the menu path Extras® Settings to change your view of the tree structure. You can use this to display technical names (transaction codes). You can also create a Favorites list of the transactions, reports, files and Web sites you use most. You can add items to your favorites list using the Favorites menu option or by simply dragging &amp; dropping them with the mouse.
  32. Command field: You can use the command field to go to applications directly by entering the transaction code. You can find the transaction code either in the SAP Easy Access menu tree (see next slide) or in the relevant application under System® Status. Menu bar: The menus shown here depend on which application you are working in. These menus contain cascading menu options. Standard toolbar: The icons in the system function bar are available on all R/3 screens. Any icons that you cannot use on a particular screen are dimmed. If you leave the cursor on an icon for a moment, a small flag will appear with the name (or function) of that icon. You will also see the corresponding function key. The application toolbar shows you which functions are available in the current application. Title bar: The title bar displays your current position and activity in the system. Check boxes: Checkboxes allow you to select several options simultaneously within a group. Radio buttons: Radio buttons allow you to select one option only. Status bar: The status bar displays information on the current system status, for example, warning and error messages. A tab provides a clearer overview of several information screens. Options: You can set your font size, list colors, and so on here.
  33. You can select system functions in the following ways: Use the mouse to choose . Menu options . Favorites . Other options in the tree structure (tree control) Use the keyboard (ALT + the underlined letter of the relevant menu option) Enter a transaction code in the command field: . A transaction code (T-Code) is assigned to each function in R/3 (not each screen). . You can access the assigned transaction code from any screen in the R/3 System. . You can find the transaction code for the function you are working in under the Status option of the System menu. . For example, to display Accounts receivable master data, enter “/n” and the appropriate transaction code (in this case “/nfd03”). . Other possible entries: “/n” ends the current transaction. “/i” ends the current session. “/osm04” creates a new session and goes to the transaction specified (SM04). . You can also use the keyboard to get to the command field. Use the CTRL + TAB key combination to make the cursor move from one (input) field group to the next. Use TAB to move between fields within a group.
  34. A role describes a set of logically linked transactions. These transactions represent the range of functions users typically need at their workstations. Activity groups (user roles) have to be set up using the Profile Generator so that users of the SAP System can work with user-specific or position-related menus. The authorizations for the activities listed in the menus are also assigned to the users using activity groups. With Release 4.6, predefined activity groups (user roles) from all application areas are included in the standard system. Users who have been assigned to an activity group can choose between the user menu and the SAP standard menu. The above screen shows the role -based user menu for the “Accounts Receivable Supervisor” as an example. You can find other roles that are supplied in the standard SAP System with the corresponding activity groups using the Other menu pushbutton in the SAP Easy Access initial screen.
  35. Use F1 for help on fields, menus, functions and messages. F1 help also provides technical information on the relevant field. This includes, for example, the parameter ID, which you can use to assign values to the field for your user. Use F4 for information on what values you can enter. You can also access F4 help for a selected field using the button immediately to the right of that field. If input fields are marked with a small icon with a checkmark, then you can only continue in that application by entering a permitted value. You can flag many fields in an application to make them either required entry fields or optional entry fields. You can also hide fields using transaction or screen variants or Customizing.
  36. The variant principle is a widely used method in R/3 to assign special properties to one or more R/3-objects. For example using creating a company code as an example; 1. Define the variant: K4 is our fiscal year variant 2. Populate the variant with values: we define the properties of K4 to be “calendar year” 3 Assign the variant to R/3 objects: we assign K4 to multiple company codes that use that calendar The main advantage for using variants is that it is easier to maintain properties which are common among several business objects.