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Sap-Fundamentals: Integrate Financial Information
Sap-Fundamentals: Integrate Financial Information
SAP ( Systems Applications and Products ) is basically an ERP. * : What is ERP ? Answer : ERP is an acronym for "Enterprise Resource Planning". an ERP attempts to integrate all departments and functions across a company onto a single computer system that can serve all those different department's particular needs. E : Enterprise is a huge business Organization. R : Resources are Money ,Material ,Man power ,Machinery ,Methods P : Planning for optimal Utilization of resource for a huge business Organization.
Why ERP ?
Why do Enterprises(Companies) Fix ERP in their Organizations ? There r 5 major reasons Y companies undertake ERP. (1) Integrate financial Information (2) Integrate Customer Order Information (3) Standardize and speed up manufacturing processes (4) Reduce inventory (5) Standardize HR information. (1) Integrate financial Information : As the CEO tries 2 understand D company's overall performance ,he may find many different versions of the truth .Finance has it's own set of revenue numbers, sales has another version and the different business units may each have their own versions of how much they contributed 2 revenues. ERP creates a single version of D truth that cannot be questioned because everyone is using D same system. (2) Integrate Customer order information : ERP system can become D place where D customer order lives from D time a customer service representative receives it until D loading dock ships D merchandise & finance sends an invoice .By having this info in one software system ,companies can keep track of orders more easily and coordinate manufacturing, inventory and shipping among many different locations @ same time. (3) Standardize and speed up manufacturing processes : Manufacturing companies -especially those with appetite 4r mergers & acquisitions often find that multiple business units across D company make D same widget using different methods & computer systems. ERP systems come with standard methods 4r automating some of D steps of steps of a manufacturing process. Standardize those processes & using a single, integrated computer system can save time ,increase productivity & reduce head count.
(4) Reduce inventory: ERP helps D manufacturing process flow more smoothly & it improves visibility of D order fulfillment process inside D company .That can lead 2 reduced inventories of D stuff used 2 make products & it can help users better plan deliveries 2 customers , reducing D finished good inventory @ D warehouse & shipping docs
(5) Standardize HR information - especially in companies with multiple business units, HR may not have a unified, simple method for tracking employees time & communicating with them about benefits and services.ERP can fix that .In D race 2 fix these problems ,companies often lose sight of D ERP packages r nothing more than generic representatives of the eays a typical company does business, While most of packages r exhaustively comprehensive ,each industry has its own qurks that make it unique. Most of the ERP systems r designed 2 be used by discrete manufacturing companies . The ERP programs r modified according 2 D needs of each industry which install them.
Need of ERP
Need Of An ERP :ERP Is used for planning our reources to get maximum profits with minimum Efforts. How to Provide ERP Solutions ? (1) Business Process Analysis (2) Document Analysis (3) Client Sign Off (4) GAP Realization (5) Realization (6) Testing (7) Q.A. ( Quality Analysis ) (8) Go- live (9) End User Training (10) Post Production Support
SAP - HISTORY
HISTORY OF SAP. Founded in 1972,SAP is the recognised leader in providing collabrative business solutions for all types of industries and for every major market. Headquartered in Willdorf,Germnay,SAP is the world's largest inter-enterprise software company,and the world's third largest independent software supplier overall. SAP employs over 28,900 people in more than 50 countries SAP profesionals are dedicated to providing high-level customer support and sevices. 1972 - Five former IBM employees (1) Dietmer Hopp (2) Hans-Werner
(3) Hasso Plattner (4) klaus Tschira (5) Claus Wellenreuther Launch a company called SAP - Systems Analysis and Program Development.later known as SAP - Systems Applications and Products. 1973 - R/1 system is created R stands for Real Time 1 stands for one tier. 1980 - SAP MOVES TO Max-Planck-Strasse in an industrial park in Walldorf,near Heidelberg,Germany. 1981 - SAP R/2 is widely accpeted. R stands for Real time 2 stands for two tier. 1986 - SAP moves outside Germany,Austria.Revenues reach DM 100 million around U.S. $52 million ) earlier than expected. 1988 - SAP GmbH becomes SAP AG.Nov 4 ,1.2 million shares are listed on Frankfurt and Stuttgart stock exchanges. 1992 - SAP R/3 is unleashed in market. 1996 - 1,089 new SAP R/3 customers have been won. 1997 - SAP celebrates it's 25th anniversary and now employs around 12,900 people. 1998 - SAP stocks now trades on New York Stock Exchange (NYSE). 1999 - In May Co-Founder,Co-Chairman and CEO Hassao Plattner announces the mySAP.com stratergy. 2000 - More than 10 million users work with SAP solutions.There are now 36,000 installation
Other major product offerings include Advanced Planner and Optimizer (APO), Business Information Warehouse (BW), Customer Relationship Management (CRM), Supply Chain Management (SCM), Supplier Relationship Management (SRM), Human Resource Management Systems (HRMS), Product Lifecycle Management (PLM), Exchange Infrastructure (XI), Enterprise Portal (EP) and SAP Knowledge Warehouse (KW). The APO name has been retired and rolled into SCM. The BW name (Business Warehousing) has now been rolled into the SAP NetWeaver BI (Business Intelligence) suite and functions as the reporting module. The company also offers a new technology platform, named SAP NetWeaver which replaces SAP Business Connector for Integration/middleware capabilities [5] and offers a systematic approach to Enterprise SOA solutions with a collection of products. While its original products are typically used by Fortune 500 companies, SAP is now also actively targeting small and medium sized enterprises (SME) with its SAP Business One and SAP All-in-One. SAP officials say there are over 100,600 SAP installations serving more than 41,200 companies in more than 25 industries in more than 120 countries. [6]
SAP-Introduction
SAP(Systems applications and products) is an ERP(Enterprise Resource Planning) package,where in the functions of enterprise are planned and performed by the software,I am into ABAP(Advanced Busines Application Programming) module, We program (Change the standard code of SAP),or (Write a new code) According to requirments of Functional People.Functional people will say us their requirements,For example for creating pay rolls of employees,in standard SAP their is no VAT tax deduction,so we modify the standard code. This(ABAP) is the only module through which we can write the code(progamme), there are 12 functional modules,PP- Production planning MM -Material Management SD -Sales and distribution FI -Financial Accounting CO -Controlling AM -Fixed Assest Management PS -Project system WF -Work force IS -Industry Solutions HR -Human resources PM -Plant Maintainance QM -Quality Management The above modules are the basic modules,we will talk about latest modules in near future.
So where does CRM comes? So where does CRM stands in SAP...as there are only about 12 modules which does not feature CRM. Answer:
SAP is a company and a package as well,I mean both have the same name. SAP AG (the company deals with both ERP & CRM),what we are talking in our grp is SAP software which is a kind of ERP. CRM is not an ERP. CLEAR ? C - Customer R - Relation-ship M - Management E - Enterprise R - Resources and P - Products. SAP AG has both the soft wares. ABAP is the only programming language 2 SAP, The one who is working with ABAP is called technical consultant .They write the coding(programs). All others are called Functional consultants. Ex: Let us consider a vehicle. Comparing a vehicle with SAP. Now (1) A Functinal Consultant is like a Driver. (2) A Technical Consultant(ABAPer) is like Mechanic. (3) SAP AG is like The one who manufacture vehicle SAP is the fourth largest software company in the world. It ranks after Microsoft,IBM and Oracle in terms of market capitalization. SAP is the largest Enterprise Resource Planning (ERP) solution software provider.SAP's products focus on ERP, which it helped to pioneer. The company's main product is SAP R/3;the "R" stands for real time data processing and the number 3 relates to a three-tier application architecture: database, application server and client SAPgui.Other major product offerings include (1).Advanced Planner and Optimizer (APO), (2).Business Information Warehouse(BW), (3).Customer Relationship Management(CRM), (4).Supplier Relationship Management(SRM), (5).Human Resource Management Systems(HRMS), (6).Product Lifecycle Management(PLM), (7).Exchange Infrastructure(XI) and (8).Knowledge Warehouse(KW).
Reportedly, there are over 91,500 SAP installations at more than 28,000 companies. SAP products are used by over 12 million people in more than 120 countries."
Functional Modules-Description
Material Management covers the functionality required to (1) purchase goods and services, (2) manage inventory, and (3) inspect incoming materials. The Purchasing function includes creation of requisitions, requisition approval, purchase order generation, and receipt of goods and services. Inventory Management includes issuing and transferring inventory, inventory restocking, and the inventory count and adjustment processes.
Support at SAP home page. SAP R/3 runs on several databases Oracle, Adabas D, Informix, DB2 for UNIX, DB2/400, Microsoft's SQL Server 6.0. For more info...see SAP R/3 Databases at SAP home page. Since R/3 foundation, SAP has made significant development and installed thousands of R/3 systems. Here is the SAP R/3 installations chart by customer class.
*Integrate and optimize business processes. *Eliminate high integration costs and the need to purchase third-party software. *Deploy other SAP Business Suite applications incrementally to improve cash flow and reduce costly borrowing. Gain higher ROI faster *Install SAP ERP using rapid-implementation techniques that cost less than half what traditional approaches cost. *Leverage preset defaults and prepackaged versions available for specific industries. Retain top performers *Retain your top performers through clearly defined career and development plans. *Link employees' performance to compensation programs such as variable pay plans and long-term incentives. Provide immediate access to enterprise information *Give employees new ways to access the enterprise information required for their daily activities.
1. Functional consultant is expected to generate knowledge about the current business process, design current business flows, study current business processes and its complication, in all we can say getting through with current business setup. Flow diagrams and DFD are prepared, most of the time in Vision format, all this forms the part of AS IS document. 2. Everything configured has to be documented as per their categories in the form of predefined templates, these have to be then approved by the team leads or who ever the consultant is reporting to. 3. Mapping and GAP analysis is done for each module, I have seen people defining integration after mapping, gap analysis and configuration is done, but as per my experience in implementation, it is a simultaneous process. 4. Before starting configuring future business processes in SAP, the DFD/ERD are prepared, this documentation is called TO BE, which can be also siad as the result of mapping and gap analysis. 5. Sometimes Functional consultants are also expected to prepare test scripts for testing the configured scenarios. 6. End user manual and user training is also expected from F.Consultants. The project normally starts off with a Kick off meeting in which the team size, team members, reporting system, responsibilities, duties, methodlogy, dates and schedules, working hours which have been predicided are formally defined. ASAP, it won't be possible for me to explain it here, but all I can tell you about it is that it is SAP standard implementation methodology, which SAP prescribes but is not mandatory for any company to follow, such as IBM follow some blue Methodlogy, some companies follow typical SDLC steps, ASAP stands for Accerlated SAP, you can find all the steps on SAP site, through google, reading it from there won't give you a great knowledge about ASAP but will obviously get you to know the definitions of various term.
What is the Difference between Consultant & End users? SAP consultant role is to build the system, changes & modification/updation in currently installed SAP system for the end users. SAP End user only use the SAP system just to fetch some info, or to create new thing. So a end user is just using the final product which it is meant for and consultnat design the product/updation and modification.
Sales and Distribution helps to optimize all the tasks and activities carried out in sales, delivery and billing. Key elements are; pre-sales support, inquiry processing, quotation processing, sales order processing, delivery processing, billing and sales information system. The sales logistics business process scenario in R/3 allows users to manage sales and distribution activities in an effective manner. The business processes include scenarios for sales, shipping, billing, sales support, and sales information. With real time, on line access to sales information, such tasks as order entry, delivery, and billing are all streamlined. In addition, sales and distribution can be integrated with procurement and production planning, improving turnaround time up and down the value chain. The sales function in R/3 utilizes a configurator to select configured products as well as a "conditions" program to manage complex pricing scenarios. The sales order process sends requirements to manufacturing. The R/3 system uses a technology, called Application Linking and Enabling (ALE), to implement distributed solutions such as decentralized shipping. In this approach, special types of business information documents, called Intermediate Documents or IDOCs, are automatically transmitted between communicating systems. This database is used by R/3 to automatically generate the IDOCs used in communicating between the host and remote systems. In the recent years, many of SAP's customers have found that the integration of sales and distribution applications in R/3's logistics chain has improved the performance of their companies.
Modules in R/3
Many people have asked me abt the prior Knowldge required to go fora particular Module,Here r the fields in which U need to be perfect to Have a better understanding of the module in SAP. A brief description of FM's ,what U'll need to learn ? Asset Management(AM) : * Purchase * Sale * Depreciation * Tracking Controlling (CD) : * Cost elements * Cost centres * Profit Centres * Internal Orders * Activity based costing * Product Costing Cross Applications(CA). * Work Flow (WF) * Business Inforamtion Ware house (BW) * Office
* Industry Solutions * Work place * New Dimension products Financial Accounting(FI). : * General Ledger * Book close * Tax * Accounts receivable * Accounts Payable * consolidation * Spcial Ledger Project systems (PS) : * Plant shut downs * Make to order * Third-party billing * Human resouces Plant Maintance (PM) : * Labour * down time & outages * Material Matearial Management(MM) : * Requsitions * Purchase Orders * Accounts Payable * Goods reciept * Inventory Management
Sales and Distribution (SD): * From order to delivery * Shop Floor * Sales orders * Pricing * Picking * Shipping * Packing Quality Management (QM): * Planning * Inspections * Executions * Certificates Prodution planning (PP):
be cumulated in the document management system (DMS), you also have to select the se components.
BIW
Purpose The reporting, analysis, and interpretation of business data, as well as the corporate planning that is based on this data, is of central importance to a company in guaranteeing its competitive edge, optimizing processes, and enabling it to react quickly and in line with the market. With the BI and BI Java usage types, SAP NetWeaver provides the following functionality: Enterprise data warehousing Business intelligence platform for business planning and analytical services Business Explorer suite; a suite of business intelligence tools for enterprise reporting, query and analysis Integration with SAP BI Content Add-On SAP NetWeaver delivers preconfigured, role-based information models and reporting and planning scenarios for SAP BI. These are based on consistent metadata. SAP BI Business Content offers selected roles in a company the information they need to carry out their tasks. The information models delivered cover all business areas and integrate content from almost all SAP applications, as well as selected external applications.
S.D.Module
What is the function of SD( Sales and department) Departement in an Oraganisation ? Sales and Distribution helps to optimize all the tasks and activities carried out in sales, delivery and billing. Key elements are; pre-sales support, inquiry processing, quotation processing, sales order processing, delivery processing, billing and sales information system. How does SAP R/3 help in this ? The sales logistics business process scenario in R/3 allows users to manage sales and distribution activities in an effective manner. The business processes include scenarios for (1) Sales, (2) Shipping, (3) Billing, (4) Sales support and
(5) sales information. With real time, on line access to sales information, such tasks as order entry, delivery, and billing are all streamlined. In addition, sales and distribution can be integrated with procurement and production planning, improving turnaround time up and down the value chain. The sales function in R/3 utilizes a configurator to select configured products as well as a "conditions" program to manage complex pricing scenarios. The sales order process sends requirements to manufacturing. The R/3 system uses a technology, called Application Linking and Enabling (ALE), to implement distributed solutions such as decentralized shipping. In this approach, special types of business information documents, called Intermediate Documents or IDOCs, are automatically transmitted between communicating systems. This database is used by R/3 to automatically generate the IDOCs used in communicating between the host and remote systems. In the recent years, many of SAP's customers have found that the integration of sales and distribution applications in R/3's logistics chain has improved the performance of their companies.
Before going into details U need to be aware of basics of Sales & Distribution. First let us know abt Sales Organisation. what is Sales Organisation ? The sales organization is an organizational unit within logistics, that structures the company according to its sales requirements. what is the Use ? A sales organization is responsible for the sale and distribution of goods and services. It represents the selling unit as a legal entity. It is responsible for product guarantees and other rights to recourse, for example. Regional subdividing of the market can also be carried out with the help of sales organizations. Each business transaction is processed within a sales organization. The sales organization must be specified in all sales documents. It is therefore available for all basic functions of SD (such as pricing, availability, etc.). Structure A sales organization can be subdivided into several distribution chains which determine the responsibility for a distribution channel. Several divisions can be assigned to a sales organization which is responsible for the materials or services provided. A sales area determines which distribution channel can be used to sell the products from one division in a sales organization. Integration
Each sales organization is assigned exactly one company code for which you enter all accounting details of the sales organization. A distribution chain can be active for several plants and the plants can be assigned to different company codes. If the sales organization and plant are assigned to different company codes, an internal billing document is sent between the company codes before the sales transactions are entered for accounting purposes.
intuitive online navigation coupled with its process-oriented data entry provide for speedy and efficient data maintenance. Integrated workflow processes accelerate data entry and streamline the flow of information allowing it to get to where it is needed. Optical archiving links enable scanning of original documents such as employment contracts or employee photographs. Recruitment. Recruitment helps set up an effective recruitment strategy for finding and hiring the right people with the right skills that will contribute to the continued success and competitiveness of the enterprise. Its streamlined processes optimize recruitment procedures and reduce administrative overhead. The Recruitment model provides recruiters and personnel managers with all the necessary data on vacant positions before they can become a threat to productivity - and leverages powerful global functionality and Internet technology to offer the most advanced global recruitment tools and media. Training and Event Management. Training and Event Management enables the planning, managing and evaluation of data on internal and external events. It stores data on event prerequisites, objectives, contents and time schedules. Information on prices, capacity and locations is accessible via easy-to-use functions that support billing and budget planning. Compensation Management. Compensation Management enables the development of compensation policies that can function as strategic management tools for a competitive edge. It provides a powerful toolset for putting together fixed or variable compensation packages. Integration with Organizational Management means that budgets can be assigned to organizational units along the organizational structure. Multiple compensation plans can be developed to reflect company-specific remuneration guidelines, eligibility rules and criteria, as well as calculation regulations for immediate application. Benefits Administration. Benefits Administration has powerful and flexible functions for creating, managing and tailoring every kind of benefits plan, from healthcare to insurance programs or credit plans. Seamless checking and enrollment processes minimize administration work. Integration with Personnel Administration ensures that checks are always carried out against the most up-to-date personnel data. Open enrollment is fully supported. Travel Management. This application streamlines the processing of all aspects of travel administration from the initial travel request through expense posting and taxation to employee reimbursement in multiple currencies and formats. Employees can create and edit travel plans, create variants of these for comparison purposes, and make their selection based on preferred routes or costs as appropriate. Simulation functions let the user determine travel costs in advance. A connection to a global reservation and distribution system such as Amadeus provides added convenience for the person traveling. Personnel Development. Based on a company's individual personnel development strategies, Personnel Development provides active support to recognize, promote and properly exploit the existing potential of employees. It provides a detailed picture of existing and required qualifications in the company and enables personnel
development measures to be tailored to ensure that employees develop in line with company goals while at the same time accommodating individual preferences. HR - Time Management (for Payroll processing) SAP HR Time Management functionality includes time collection, evaluation of time and absence data for payroll, leave management and reporting. It also automatically calculates leave accruals, overtime, shift premiums and bonuses.
Time data is used to process Payroll, internal & external reporting. Payroll needs Time data to process: Hours worked Overtime Shift times Vacation Absence to be paid Time is also used for Internal reporting - by management to evaluate and project costs. External reporting - tracking of time data for Labor Union requirement etc. For eg. Labor union requires statistical data concerning the amount of overtime spent on certain shifts etc. Time data is stored in various infotypes. This data is evaluated according to various rules during time evalution and the processed data is transferred to payroll. Time data is generally collected by a third party recording terminal. Time data is recorded in various ways. eg. Punch cards, Manual time sheets that stores hours worked for each day along with any absenses. All the absence's and attendance in a day are uploaded into SAP and analysed using the pre-defined times in the employees Work Schedule rule. After processing the time events, the system generates wage types and time types based on pre-defined rules within the time evaluation program. These wage types and time types are then used for Interfacing to payroll, reporting etc. Check for Completed and Approved Time Sheets (CAPS): The Time Evaluation process begins after all employees have entered time and supervisor has approved it. This can be done using transaction CAPS. Important Note: When you use the transaction CAPS to approve time, you will be locking the employee records from any changes (i.e. no one else can make changes, enter time, approve time, etc., while you are in this transaction). Therefore, to reduce the number of locked records and improve system performance, perform this step by cost center instead of for the entire personnel area. Once finished, you may then run
the transaction for the entire personnel area to validate completeness. Use Menu Path: Time Management> Time Processing> CAPS-Check for Completed/ Approved Time Sheets.
Transfer Time (CATA): The Transfer Time step take time data that has been entered on the time sheet and moves it to the HR and Controlling databases for further processing (i.e. payroll cannot be processed unless this step is performed correctly). The system transfers time data automatically to HR when time has been approved by the either supervisor or CSR. A batch program that runs nightly will transfer time data to Controlling for further processing. Although this is an automatic process, there are situations where the initial transfer can fail and the time will need to be transferred manually (for example, if the employee record was locked by another user). Therefore, as a matter of precaution, always execute this step before you perform the Review Time Data step. Use Menu Path: Time Management> Time Processing> CATA Transfer Time Use Menu Path: Time Management> Time Processing> CATA Transfer Time Review Time Data: Once the time sheets have been entered, approved and transferred to the HR database, the final step is the validate that the time data has been correctly entered. Check for overtime, public holidays etc. If any check fails, you will have to correct and re-approve (via CAPS) the employees time sheet, transfer the time (CATA) and then review the entries again. Use Menu Path: Time Management> Time Processing> S_AHR_61018659 Review Time Data. Run TIME Evaluation (RPTIME00) for pay period (PT60)
Personal management
(1) Recruitment. Purpose The ability to meet personnel requirements is key for enterprises. The success of an enterprise depends on such factors as the quality and availability of personnel. It is particularly important for the development and success of expanding enterprises that they have quick access to adequate personnel. This component has all the functions you need for working through the entire recruitment
procedure, from creating applicant data to filling vacant positions. The Recruitment component contains an entire range of powerful, flexible functions that you can use to implement an effective and largely automated recruitment strategy. You can use the Recruitment component to recruit human resources according to requirements, at any time. You can increase the number of applicants available to your enterprise, and include them in the selection procedure for vacancies, by advertising for personnel (using job advertisements, for example) or by receiving unsolicited applications. You can store applicants that you have not deemed suitable for a particular vacancy in the Applicant Pool, where they can be considered for other or future vacancies. This component enables you to define a recruitment procedure that suits the needs of your enterprise. You can distribute tasks and responsibilities to different people involved in the recruitment process. Recruitment supports you in dividing and assigning administrative and decision-making task areas. Many tasks can be processed via mass processing. The Recruitment component provides dynamic actions to enable you to automate many processes. For example, when you 1st enter applicant data, the system creates a confirmation of receipt in the form of an applicant activity and a letter confirming receipt of application. This reduces the administrative tasks required of the HR department for applicant correspondence.
Integration If you want to use all of the functions in the Recruitment component, you are advised to implement the following components: Component Provides the Following Extra Functions Personnel Administration Easy transfer of applicant data to Personnel Administration once an applicant is hired Easy transfer of employee data to Recruitment when an internal applicant (employee) submits an application within your enterprise Personnel Development Search for applicants with particular qualifications Profile comparison between applicants qualifications and the requirements for (vacant) positions Organizational Management Vacancies maintained in Organizational Management are automatically available in Recruitment Manager's Desktop Managers can make decisions relating to the selection procedure for vacancies and represent them using the Managers Desktop. Additional administrative steps are forwarded to the HR department via an automatic e-mail connection.
Features SAP Recruitment is made up of the following subcomponents: Workforce Requirements and Advertising Applicant Administration Selection of Applicants Each component supports a different phase of the recruitment process. SAP Recruitment also provides high-performance functions for the Internet and intranet, and in SAP Business Workflow. Workforce Requirements and Advertising Your enterprises workforce requirements are represented in the system by vacancies. You can create vacancies manually in Recruitment. If you have an integrated system, you have access to the vacancies that are maintained in Organizational Management. You can use Recruitment to manage advertising centrally. Advertising enables you to publicize your enterprises workforce requirements. The following functions are provided for workforce requirements and advertising: Create and manage vacancies Manage media and recruitment instruments Manage advertisements and advertisement costs Assign vacancies and applications to advertisements Use a variety of reporting options (for example, the effectiveness of recruitment instruments and publication costs, response rate to advertised vacancies, etc.) (1)Administration of Applicants (2)Applicant administration contains the following subfunctions: (3)Applicant classification