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Introduction to SAP

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What is SAP?
SAP is the leading Enterprise Information and Management Package worldwide. Use of this package makes it possible to track and manage in real!time sales production finance accounting and human resources in an enterprise. SAP the compan" was founded in Germany in 1972 by five ex-I ! en"ineers# In case "ou#re e$er asked SAP stands for S"steme Andwendungen Produkte in der %aten$erarbeitung which ! translated to English ! means S"stems Applications Products in %ata Processing. So now "ou know& 'eing incorporated in (erman" the full name of the parent compan" is SAP A(. It is located in )alldorf (erman" which is close to the beautiful town of Heidelberg. SAP has subsidiaries in o$er *+ countries around the world from Argentina to ,ene-uela .and prett" much e$er"thing in between/. SAP America .with responsibilit" for 0orth America South America and Australia ! go figure&/ is located 1ust outside Philadelphia PA. 2he original fi$e founders ha$e been so successful that the" ha$e multiplied man" times o$er such that SAP A( is now the third largest software maker in the world with o$er 34 *++ customers .including more than half of the world5s *++ top companies/. SAP emplo"s o$er 64 +++ people worldwide toda" and had re$enues of 74.89 billion and 0et Income of 7*:3 million in ;<+3. SAP is listed in (erman" .where it is one of the 8+ stocks which make up the %A=/ and on the 0<SE .ticker>SAP/. 2here are now 99 *++ installations of SAP in 36+ countries with more then 3+ million users& So what made this compan" so successful? 'ack in 3@4@ SAP released SAP AB6 .which runs on mainframes/ into the (erman market. SAP AB6 was the first integrated enterprise wide package and was an immediate success. ;or "ears SAP sta"ed within the (erman borders until it had penetrated practicall" e$er" large (erman compan". Cooking for more growth SAP eDpanded into the remainder of Europe during the :+5s. 2owards the end of the :+5s client!ser$er architecture became popular and SAP responded with the release of SAP AB8 .in 3@@6/. 2his turned out to be a killer app for SAP especiall" in the 0orth American region into which SAP eDpanded in 3@::. 2he success of SAP AB8 in 0orth America has been nothing short of stunning. )ithin a * "ear period the 0orth American market went from $irtuall" -ero to 99E of total SAP worldwide sales. SAP America alone emplo"s more than 8 +++ people and has added the names of man" of the ;ortune *++ to it#s customer list .: of the top 3+ semiconductor companies 4 of the top 3+ pharmaceutical companies etc/. SAP toda" is a$ailable in 9F countr"!specific $ersions incorporating 6: languages including Gan1i and other double!b"te character languages. SAP also comes in 63 industr"!specific $ersions.

. but brings with it special challenges.inancial Accounting .a confusing name we belie$e/ to head off i6 etc eDtending their solutions with HAM to head off Siebel adding functionalit" to their industr" solutions What !a$es SAP different? 2raditional computer information s"stems used b" man" businesses toda" ha$e been de$eloped to accomplish some specific tasks and pro$ide reports and anal"sis of e$ents that ha$e alread" taken place. 2here is onl" one information s"stem in an enterprise SAP. Honfiguration is the process of ad1usting the settings of these tables to get SAP to run the wa" "ou want it to. cost centers profitabilit" anal"sis etc/ Sales %istribution Manufacturing Production Planning Purchasing Human Aesources Pa"roll etc etc . All applications access common data. SAP are maintaining and increasing their dominance o$er their competitors through a combination of • • • embracing the internet with m"SAP. Each of these s"stems has its own databases and seldom passes information to other s"stems in a timel" manner. 2hink of a radio with 3+ +++ dials to tune and "ou#ll get the picture.unctionalit" included is trul" enterprise wide including> . . Production schedules are dri$en b" sales. . Aeal e$ents in the business initiate transactions. A t"pical compan" has man" separate s"stems to manage different processes like production sales and accounting.g. Jccasionall" some s"stems operate in a Kreal!timeK mode that is ha$e up to date information in them and can be used to actuall" control e$ents. Sales can see when products can be deli$ered.e. SAP takes a different approach. Accounting is done automaticall" b" e$ents in sales and production. EDamples are accounting general ledger s"stems. At the heart of SAP AB8 are about 3+ +++ tables which control the wa" the processes are eDecuted. ..or a full description of the modules included in SAP see the related articles.g.e. general ledger accounts recei$able etc/ Management Accounting .SAP AB8 is deli$ered to a customer with selected standard process turned on and man" man" other optional processes and features turned off. A compan" implementing SAP adapts it operations to it to achie$e its efficiencies and power. 2he process of adapting procedures to the SAP model in$ol$es K'usiness Process Ae! engineeringK which is a logical anal"sis of the e$ents and relationships that eDist in an enterprise5s operations. All of these modules are tightl" integrated which I as "ou will find out I is a huge blessing . 2he whole s"stem is designed to be real! time and not historical. SAP structure embodies what are considered the Kbest business practicesK.

AM Asset Management!!designed to manage and super$ise indi$idual aspects of fiDed assets including purchase and sale of assets depreciation and in$estment management. Jther customi-ing and implementation tools eDist also.SAP A%%&ication !odu&es Home »SAP introduction » SAP Application modules SAP A%%&ication !odu&es SAP has se$eral la"ers. As entries are made relating to sales production and pa"ments 1ournal entries are automaticall" posted. 2hese modules ma" not all be implemented in a t"pical compan" but the" are all related and are listed below> • . PS Pro1ect S"stem!!is designed to support the planning control and monitoring of long! term highl" compleD pro1ects with defined goals. )orkflow!!links the integrated SAP application modules with cross!application technologies tools and ser$ices IS Industr" Solutions!!combine the SAP application modules and additional industr"! specific functionalit". HA Human Aesources!!is a complete integrated s"stem for supporting the planning and control of personnel acti$ities. ). Special techniLues ha$e been de$eloped for industries such as banking oil and gas pharmaceuticals etc. It too is automaticall" updated as e$ents occur. 2he 'asis S"stem is the heart of the data operations and should be not e$ident to higher le$el or managerial users. 2his connection means that the KbooksK are designed to reflect the real situation. HJ Hontrolling!!represents the compan"5s flow of cost and re$enue. • • • • • • • . ELuipment must be ser$ices and rebuilt. It is a management instrument for organi-ational decisions.inancial Accounting!!designed for automated management and eDternal reporting of general ledger accounts recei$able accounts pa"able and other sub!ledger accounts with a user defined chart of accounts. PM Plant Maintenance!!In a compleD manufacturing process maintenance means more than sweeping the floors.I . 2hese tasks affect the production plans. 2he heart of the s"stem from a manager5s $iewpoint are the application modules.

2his module includesN bills of material routings work centers sales and operations planning master production scheduling material reLuirements planning shop floor control production orders product costing etc. Ge" elements areN pre!sales support inLuir" processing Luotation processing sales order processing deli$er" processing billing and sales information s"stem . System-Wide 'eatures . S% Sales and %istribution!!helps to optimi-e all the tasks and acti$ities carried out in sales deli$er" and billing.• MM Materials Management!!supports the procurement and in$entor" functions occurring in da"!to!da" business operations such as purchasing in$entor" management reorder point processing etc. PP Production Planning!!is used to plan and control the manufacturing acti$ities of a compan". MM Mualit" Management!!is a Lualit" control and information s"stem supporting Lualit" planning inspection and control for manufacturing and procurement. • • • Each of these Modules ma" ha$e sub!modules designed for specific tasks as detailed below.

EDternal reporting is reLuired b" go$ernmental units controlling the legal structure of the corporation such as the IAS state taDing authorities SEH etc.istribution    Sales Jrgani-ation %istribution channel %i$ision • !aster . • (ustomi)in"!! is the configuring of the s"stem to represent "our organi-ation5s legal structure reporting reLuirements and business processes. Internal reporting is a managerial tool in the dail" operations.Home »SAP introduction »s"stem wide features System-Wide 'eatures SAP uses certain s"stem wide features that should be understood at the outset. • *r"ani)ationa& +&ements o 'inancia&- c&ient is a legal and organi-ationall" independent unit at the highest le$el in SAP com%any is an independent legal entit" within a client business areas are used to produce profit and loss statements and balanced sheets across marketing lines   o !ateria&s !ana"ement   Purchasing units Plants o Sa&es and .ata is records that remain in the database o$er an eDtended period of time. 2hese are used to logicall" safel" and fleDibl" organi-e the data in a business enterprise. EDamples> o o o Hustomer Master .endor Master Material master .

It is not enough to 1ust reali-e the Sales Production . usiness Processes and SAP 'unctiona&ity In order to understand a s"stem like SAP a thorough understanding of the e$ents and relationships that take place in a business is reLuired. Users are onl" authori-ed to see or change the parts of the s"stem reLuired b" their 1ob responsibilities. 2he eDact details of each action the timing of that action and its interrelationships with e$er" other process must be understood. 'efore an operation can be automated or computeri-ed a thorough stud" of the business must be undertaken.hrou"h . In man" large operations there ma" be no person that has a complete grasp of the situation.o Account Master 2his structure eliminates redundant data and is shared b" all SAP Modules. (&assification is the assignment of ob1ects to a class. Security is administered for ob1ects profiles and authori-ations. It is a critical aspect of the robustness of the s"stem.inance and Accounting ha$e 1obs to do in a business. 2his task is called usiness Process +n"ineerin". Each class has standard characteristics. Se-uentia& Wa&$ . • • • • +m%&oyee Se&f Service-!"our emplo"ees ha$e access to the own HA records o$er the Internet. !atchcodes are Luer" tools used to find specific information using search methods.

. o o o o • Purchasing o AeLuisition!!Jnce the Production manager plans to manufacture something a reLuisition for the raw materials reLuired but not on hand must be prepared.hrou"h • Sales o o Pre!sales acti$it"!!planning and a$ailabilit" support for the sales personnel Sales Jrder!!2he actual entr" of the sales order into the s"stem done b" the salesperson at the point of sales perhaps using a PH and Internet connections. Shop . Planned Jrder!!)hen materials are a$ailable and capacit" eDists this plan is created and then con$erted into a Production Jrder.endor Selection!!made b" the purchasing department Purchase order sent goods receipt increasing in$entor" o o o . %eli$er" Hustomer 'illing Hustomer Pa"ment o o o o • Production o Sales and Jperations Planning SJP where the sales forecasts are used in a production planning model to check feasibilit".loor Hontrol where the actual production takes place and is registered into the s"stem as finished goods. o Master Production Scheduling MPS!!2he actual plan for the whole production process Material AeLuirements Planning MAP!!)here the production plan is actuall" con$erted into raw materials input reLuirements. %etermining where the most efficient source of the ordered product is in in$entor" and shipping it.Home »SAP introduction »seLuential walk through Se-uentia& Wa&$ .

.our of the SAP 0ser Interface 2he SAP AB8 s"stem presents a )indows interface with se$eral of the familiar )indows functions for screen manipulation. /uic$ .o o • In$oice $erification as it is recei$ed from $endor Pa"ment to $endor. . 2he initial screen shows a menubar with the following selections. )hen finished goods are shipped customers should be automaticall" billed at the same instant. 2he apparent simplicit" of the interface hides the power of the menus residing within the menubar at the top of the screen.or eDample when sales are made in$entor" and manufacturing plans should be automaticall" updated.our of the SAP 0ser Interface Home »SAP introduction »SAP user interface /uic$ . Aeal situations are far more compleD than the simple eDplanation abo$e. )hen manufacturing plans are updated raw materials should be automaticall" ordered from $endors. 2he first le$el sub menus are listed below to gi$e "ou an idea of where to start> • Jffice o o o o )orkplace 2elephone Integration Appointment Halendar Aoom Aeser$ations .inance and Accounting o o o o o o o Sales e$ents must be captured at the proper time into the ledger s"stem In$entor" must be ad1usted to match goods shipped In$entor" must be ad1usted to match raw materials recei$ed In$entor" must be ad1usted to mo$e $alue from raw materials to work in process In$entor" must be ad1usted to increase finished goods when the" are produced Accounts Pa"able must be set up for purchases Accounts Aecei$able must reflect goods billed but not "et paid for 'usiness Process Engineering must not onl" identif" all these steps but must also find the most efficient wa" to minimi-e redundant actions.

inancial Accounting 2reasur" Hontrolling Enterprise Hontrol In$estmt Mgt. controlling Pro1ect Management En$ironment Health O Safet" Hentral . Pro1ect management Aeal Estate • Human Aesources o o Managers %esktop Personnel admin.o o Start )orkflow 'usiness %ocuments • Cogistics o Materials Management o o o o o o o o o o o SalesBdistribution Cogistics EDecution Production Production!process Plant Maintenance Hustomer Ser$ice Mualit" Management Cogis.unctions • Accounting o o o o o o o . .

ramework 'usiness )orkflow HHMS )eb %e$elopment SAPScript H"perteDt .o o o o o o • 2ime management Pa"roll 2raining and E$ent Management Jrgani-ational Management 2ra$el Information s"stem Information S"stems o o o o o o o EDecuti$e Information S"stems Cogistics Accounting Human Aesources Pro1ect S"stem Ad Hoc Aeports (eneral Aeport S"stem • 2ools o o o o o o o o o o o o A'APB9 )orkbench Accelerated SAP Administration ACE 'usiness Hommunication 'usiness %ocuments 'usiness .

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