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Finance and Controlling – Day 1

Introduction to SAP

Business without ERP
PP contacts
Purchasing for
raw material

Customers

Purchasing
Customer
Calls to place
1 order for a
Car

Sales
office/Inventory
contacts PP

4

Production
Planning

3
3
Sales office
contacts
Inventory

2

Sales

Inventory
-3-

Business without ERP (Contd.) Lets add some more Business Processes -4- ..

.) Where is my car Customers What is this confusion What to manufactur e?? Production Planning Whom to contact for status? What is Cost and profit Sales Shop floor Finance Purchasing Vendors Inventory -5- .Business without ERP (Contd.

. Your Order… Sales -6- . I did not order for a TRUCK!!!! Dear Sir.Lets Deliver the end product to customer.

.Business without ERP (Contd.) I AM NOT TAKING DELIVERY AND WILL NEVER DEAL WITH YOU! We are SORRY Sir Sales -7- .

Overall Picture Vendors Purchasing Sales Customers A/R General Ledger A/P Production Planning Inventory -8- Shop Floor Execution .

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 -9- .

Plants -10- .Enterprise Structure – Integrating Business Payroll FA HR Marketing Partner Systems Treasury GL Shop Floor AP Purchasing Sales PP AR Mfg.

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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 ERP -12- .Benefits • • • • • • • Eliminates the duplication.Enterprise Architecture .

Quiz Time • What is the full form of SAP? • When was SAP founded? -13- .

Hopp. Plattner and Tschira – Renamed in 1977 – Before 1977 : Systems Analysis and Program Development (German : Systemanalyse und Programmentwicklung) -14- . Hector.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.

Produkte in der Datenverarbeitung • Founded in 1972 by Wellenreuther. Hopp. Hector. R/3 -15- . Anwendungen. 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.History of SAP • Systems Applications and Products in Data Processing – German : Systeme.

Steps to Strategic ERP Enterprise Resource Planning is evolved through these stages … Enterprise Resource Planning Collaborative Business Inter-Enterprise Co-operation Create Strategic Value Efficiency and Control Total Company Value Automation 80’s R/2 90’s R/3 Today mySAP ERP Evolution of ERP -16- .

Evolution of SAP -18- .

• Which is the latest SAP product? – mySAP ERP – mySAP Business Suite – mySAP.Quiz Time • SAP R/3 client server architecture evolved in year___________.com with one step business -19- .

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.

SAP R/3 Architecture .

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- .

.SAP R/3 System Architecture (Contd.2) -23- ..

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- .

A developer’s workbench 2. Create & Test ABAP/4 programs) (Technical) .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) -25- Development Area (1.

Systems in R3 Transport Request Development System (DC) Quality System (QC) Client 110 100 etc. -26- Production System (IC) ..

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 -27- .

Clients in R/3 -28- .

. OS/2 Presentation Manager (PM). Windows NT. Java .. Operating AIX Reliant systems Digital UNIX UNIX (SINIX) HP-UX Databases Dialog SAPGUI Digital NCR HP (Intel) Sequent IBM (Intel) SNI Windows NT IBM AS/400 IBM S/390 OS/400 OS/390 DB2 for OS/400 DB2 for OS/390 SOLARIS ADABAS D DB2 for AIX INFORMIX-OnLine ORACLE ADABAS D MS SQL Server INFORMIX-OnLine ORACLE Windows 3. Windows 95. Java Languages ABAP/4. HTML. OSF/Motif *. C++. C. Macintosh *.R/3 Technology Environment Hardware UNIX Systems Bull IBM Digital SNI HP SUN Bull/Zenith Compaq Data General .1.

0 ADABAS D OS/400 AS/400 Win 95 OS/2 DB2/400 -30- .1 SQL Server 6.1 / 95 / NT OSF / Motif OS/2 Macintosh Oracle 7.Platforms and Databases supported by R/3 Operating Systems Supported Hardware Supported Front ends Supported Databases AIX SINIX IBM SNI SUN Win 3.1 ADABAS D Windows NT AT&T Compaq Bull / Zenith HP (Intel) SNI IBM (Intel) Digital (Intel) Data-General 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.

Client Server Benefit -31- .

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- .

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 -33- .

SAP R/3 Modules .

SAP Modules SD – Sales and Distribution FI – Financial Accounting SD MM – Materials Management FI MM PP – Production Planning CO – Controlling CO PP AM – Asset Management AM SAP R/3 HR QM QM – Quality Management WF PM PM – Plant Maintenance WM PS WM – Warehouse Management HR – Human Resources WF – Workflow PS – Project System -35- .

SAP R/3 Application Modules • 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) -36- .

Module Functionalities MM Material Procurement Inventory Management Batch Management Goods inspection Invoice Verification PP BOM/Work Center/Routing MRP Capacity Evaluations Production Orders QM in production FI General Ledger Accounts Payable Accounts receivable Cash management SD Inquiry processing Sales Order Processing Delivery Processing Billing CO Cost Center Accounting Product Costing Order Contribution Analysis -37- .

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- .

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- .

Module FI – Financial Accounting • 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 -40- .

Financial Accounting Bank Foreign exchange management Finance information system Management of secureties and loans Cash management and forecast Accounts payable Bank accounts Payables Accounts receivable Receivables General Ledger Invoice verification Extended General Ledger Consolidation -41- Credit management .

Module CO – Controlling
• 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

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Module SD – Sales and Distribution
• 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
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Sales Support

Sales

Sales
activity
Inquiry
Contract

Quotation

USD

Delivery
free of
charge

Subsequent
delivery free
of charge

Sales
order

Returns

Scheduling
agreement

Shipping
Delivery

Billing
Debit memo

Invoice

Credit memo

FINANCIAL ACCOUNTING
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MATERIALS MANAGEMENT

SALES INFORMATION SYSTEM

Sales and Distribution Processing

Module MM – Materials Management • 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 -45- .

Materials Management  Material Special stock Batch  Vendor/one-time customer  Purchasing info record  Service specifications  Workflow  Optical archive PURCHASING  Purchase requisition       Material/service Price comparisons Price comparison list  Purchasing    PP Third-party order Requirements Purchase orders Outline agreements Scheduling agreements Service/ Spare Parts Service / parts lot Inspection QM spare PM FI INVENTORY MANAGEMENT   Classification   Conditions SD  RFQ/Quotation  Texts Mail Communication  Documents MRP Direct requisition Release procedures Purchasing information system Vendor evaluation BASIC DATA    Goods receipt/issue Transfer posting Quantities and values Physical inventory Storage bins AM CO INVOICE VERIFICATION   Check and post Price update -46- PS G/L accounts Cash management and forecast Fixed assets Cost center / Budget Project .

Module PP – Production Planning • 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 -47- .

Production Planning SD PP Customers SD Sales Shipping Billing Vendors FI Financial accounting MM SD Purchasing Warehouse Invoice verification CO Sales and Operations Planning Demand management / MPS Material requirements planning Detailed Schedeling and Planning Capacity planning Shop floor control Costing Information system PS SD Project Networks PM SD Maintenance Repairs Plant maintenance QM SD Inbound Raw Material Finished Goods HR Cost accounting -48- Human resources .

Module QM – Quality Management • Supports • Quality planning • Inspection • Control for manufacturing • Costing • Procurement • Key elements • Quality planning • Quality during procurement.Quality inspection • Information System (QMIS) -49- . production. distribution • Quality Management Information .

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 -50- . control. & monitoring of long term highly complex projects with defined goals • Key elements • Project WBS – Plan • Budget & Monitor • Network Management • Activity monitoring. Material Planning.Module PS – Project System & HR – Human Resource • PS – Project Systems • Support planning. Milestones.

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 -52- .

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) -53- .

IS – Industry Solutions • Combines SAP R/3 application modules to additional industryspecific functionality • Result of the research by industry Centers expertise (ICOE) -54- .

mySAP Industry Solutions (Some Examples) • SAP for Aerospace & Defense • SAP for Healthcare • SAP for Media • SAP for Public Sector • SAP for Automotive • SAP for High Tech • SAP for Mill Products • SAP for Retail • SAP for Banking • • SAP for Mining SAP for Higher Education & Research • SAP for Chemicals • SAP for Service Providers • SAP for Oil & Gas • SAP for Industrial Machinery & Components • SAP for Consumer Products • SAP for Telecommunications • SAP for Pharmaceuticals • SAP for Engineering. Construction & Operations • SAP for Insurance • SAP for Utilities • SAP for Professional Services -55- .

SAP Product Overview .

. mySAP Business Suite SAP NetWeaver 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 -57- .Evolution of SAP products mySAP ERP R/3 R/3 Enterprise Solutions mySAP CRM mySAP SCM mySAP HR mySAP PLM ……….

Evolution of SAP products SAP R/3 my SAP Solutions -58- my SAP Business Suite .

SAP R/3 Financials HR Corporate Services Operations -59- .

mySAP Solutions mySAP PLM mySAP SCM mySAP Financials mySAP CRM mySAP SRM mySAP HR Corporate Services Operations SAP R/3 Adaptive Business Solutions -60- .

my SAP Business Suite mySAP PLM mySAP SCM mySAP mySAP SRM CRM mySAP Financials mySAP HR Corporate Services Operations SAP NetWeaver Application Platform ( Web As) People Integration (Portal) Information Integration( BI.MDM) Process Integration (XI) -61- .

mySAP Solutions & Netweaver • mySAP CRM • mySAP SRM • mySAP SCM • mySAP PLM • SAP Netweaver -62- .

My SAP Customer Relationship Management (CRM) .

CRM Solution Map -64- .

CRM – Holistic view -65- .

Where does a CRM solution fit? Who What Marketing Sales Service Executives Service Engage Use a CRM Solution to complete the Cycle Fulfill Transact Workplace Which way Internet Mobile Telephony How Operational Analytical Collaborative -66- .

com Portal Users OLTP R/3 System CRM System BW As one big logical box Internet Telephone Callers Mobile Clients -67- APO .CRM Component Landscape mySAP.

CRM Internet Sales Enterprise B2C Scenario Consumer BBP Scenario Business Partner B2R Scenario Reseller Internetselling -68- .

up-to-date record of a customer’s products and installations to facilitate service and anticipate customer requirements -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.

services. product and competitive information – Determining product and pricing configurations – Managing sales projects across sales teams – Generating presentation and proposals -70- . quotations. prospects. opportunities.Mobile Sales module within CRM • Suite of tools tailored to the needs of the offline mobile sales force – Provides an integrated view of customers. products. orders. activities. competitors. – Heavy cross-referencing for easy navigation • Facilitates the sales process by – Effectively managing customers and prospects – Providing appropriate customer. etc.

Quiz Time • What is the latest version of mySAP CRM • Name the three service modules with in CRM -71- .

0) • Name three service modules with in CRM – Service Planning – Customer care – Installed base management -72- .Quiz Time • What is the latest version of mySAP CRM (Version 5.

My SAP Supplier Relationship Management (SRM) .

SRM Solution Map -74- .

5 • Requisite Bugs Eye 3.0 • Requisite eMerge 3.Key Components of mySAP SRM mySAP SRM – eProcurement mySAP SCE Supplier Collaboration Engine • Enterprise Buyer Prof 3.0 • Business Inf.0B • Bidding Engine 3.5 • User Management 3.5 • Supplier self services 1.0 Exchange Infrastructure Content Integrator -75- . W’house 3.5 • Enterprise Portal 5.

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.Key Components of mySAP SRM • Strategic Sourcing •Sourcing analytics: Helps provide analytics based on supplier location. 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 -76- .

Key Components of mySAP SRM…. data edit and a search engine -77- .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.

Quiz Time • Name any one key component of mySAP SRM Solution map -78- .

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 -79- .

My SAP Supply Chain Management (SCM) .

SCM – Solution Map -81- .

Integration with CRM. alert and resolve exceptions -82- . SRM and PLM SAP ICH (inventory Collaboration Hub) Collaboration with Suppliers SAP EM (Event Management) Monitor.mySAP SCM SAP APO (Advanced Planning and Optimizing) Flexible and Adaptive Planning.

TPVS and TLB Core interface SAP CRM. PPDS. SAP SRM and SAP PLM Legacy Systems BAPI -83- Planning Outputs include Forecasts. Stock Transfers and Production Orders . SNP or PPDS Planned Orders. GATP.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 SAP SCM Transaction Data Core Interface Planning system where selective Master data maintained and sourced from R/3 Master Data Module includea Demand Planning. SNP & Deployment.

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 -84- .

mySAP Product Life Cycle Management (PLM) .

PLM Solution Map -86- .

SAP Netweaver .

A Roadmap for Web Services -88- .

Services are changing SAP’s Product portfolio -89- .

From Basis to WAS -90- .

Integration is the Key Challenge Business Drivers Extended Value Network Document Mgmt Call Center Increased Market Dynamics Market Analysis Integration costs are high Long integration projects SCM IT environments become increasingly rigid Lots of heterogeneous systems ERP E-sales Pressure on IT increases Must leverage existing investments Must support new business processes quicker Trading E-procurement Technical systems Must reduce total cost of ownership (TCO) PLM -91- .

scalability and adaptability Trading E-procurement Technical systems PLM -92- •Increase business process flexibility by using an Enterprise Services Architecture . information.How to Address the Integration Challenge Reduce Complexity • Minimize the number of connections through hubs Document Mgmt •Use only one platform to integrate all people. and systems Market Analysis Call Center Reduce Cost Integration SCM ERP •Deliver .NET and J2EE interoperability •Deliver adaptors for ISV products •Deliver products. not projects E-sales Increase company performance •Increase ease of use.

which is the basis for all other NetWeaver components -93- .The fundamental Web services standards are supported by the Web Application Server (Web AS).

information and business processes Integrates across technologies and organizational boundaries A safe choice with full .SAP NetWeaver The integration and application platform for lower TCO Unifies and aligns people.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 -94- .

comprehensive toolsets Leverage existing infrastructure/skillets -95- Life cycle Management Composite Application Framework Collaboration .SAP NetWeaver in Detail (SAP Internal View) Product components and killer features SAP Mobile Infrastructure Tight coupling and alignment with SAP business solutions SAP NetWeaver SAP Enterprise Portal Business packages People Integration SAP Business information Warehouse Business content Tight integration to Sap Open architecture (Crystal. Intelligence Knowledge Mgmt Master Data Management Process Integration Integration Broker Business Process Management Application Platform J2EE SAP Web Application Server Collaboration ABAP Multi-channel Access Proven. scalable. Accential ) Master Data Management Coming in 2003 SAP Exchange Infrastructure Proxy generation and mapping tools Integration directory SAP’s ability to execute Multi-channel Access Portal Information Integration Bus.

SAP Solutions Powered by SAP NetWeaver Business content makes the business foundation -96- .

SAP Organizational units .

Business Scenarios – Main Elements -98- .

Organizational Structure in SAP Production Planning Financial Accounting Company Code Plant Controlling Human Resources Client Controlling Area Personnel Area Sales and Distribution Sales Area Materials Management Purchasing Organization -99- .

Company Code -100- .

Organizational Structure .Levels -101- .

Organizational Structure – Business Functions -102- .

Technology -103- .Enterprise Structure .

SAP Organizational Structure: Cardinality Client Chart of Accounts Purchasing Group Company Code Purchasing Org. Distribution Channel Division -104- Sales Office Sales Group . Shipping Point Loading Point Plant Storage Location Sales Organ.

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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 -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 (True) – A plant can be assigned to many Company codes (False) -107- .

Organizational Elements in FICO .

Organizational Units in R/3 FI -109- .

Overview: Organizational Elements in Accounting -110- .

Organizational Elements in Logistics .

Overview: Organizational Elements in Logistics

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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 ____________. -115- .

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- .

Organizational Elements in Sales .

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Quiz Time Fill in the blanks • Sales area is a combination of _____________. ________________ and _______________. -124- .

– Division and – Distribution Channel -125- .Quiz Time Fill in the blanks • Sales area is a combination of – Sales Organization.

Navigation .

Logging on to SAP System Logon pad with different systems -127- .

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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.

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General Settings .

Global Settings (at Country level) • Variants • Calendar – Public Holidays – Holiday Calendar – Factory Calendar • Unit of Measurements • Currencies – Currency codes – Conversions (quotations) – Exchange Rate Type – Rates – Rounding rules -136- .

The Variant Principle -137- .

– Gives an overview of all working days and all days off for a calendar year. – Can be defined according to the country or region in which they are to be implemented.Calendar • 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. It can be created to cover a validity period of several years. and adapted to suit individual business requirements -138- .

– Defined on the basis of a public holiday calendar. -139- . – Examples: • Monday through Friday are working days. – Validity period of a factory calendar must be within the validity period of the public holiday calendar. Sunday and public holidays are non-working days.Calendar • Define Factory Calendar – Calendar in which working days are numbered sequentially. • Saturday. – The weekdays that are working days must also be specified in this calendar.

• Units of measurement are needed for internal conversions (such as kilogram <-> gram. • CAUTION: Extra care to be taken for any creation as this global setting can affect the whole system performance -140- . • Unit of measurement can be created according to requirements. • The international system of units (SI) is used for this. • Conversion factors are stored in the system with a unique internal key. • UOMs are held centrally in the SAP System for all applications. but also centimeter <-> inch).Unit of measurement • Enables calculations with quantities and physical units.

• You can manage ledgers in two parallel currencies in addition to the local currency -141- .Currencies • Legal means of payment in a country.

INR To Yen will 1:100 • Rounding rules – ensures that the amounts in this currency are always rounded to this unit -142- . For example. • Conversion factors – Mention the conversion for currency to currency. that currency to be maintained • Standard quotation – Can specify direct or indirect quotation. If any transaction in a new currency will happen for the organization.Currency settings • Currency codes – SAP maintains about 187 currencies. System by default will take direct quotes.

-143- . 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 • 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.

or to check a manually entered exchange rate during posting or clearing.Exchange Rate • Exchange rates in the system for the following purposes – Posting and Clearing – To translate amounts posted or cleared in foreign currency. – Valuation of Purchase Documents. – 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. Sales documents and Commitments • Exchange rates maintained for a exchange rate type for an effective date between two currencies -144- .

-145- . – SAP maintains ___________ number of currencies.Quiz Time • Fill in the blank – The difference between ____________ and ____________ is called spread.

-146- . – SAP maintains 187 number of currencies.Quiz Time • Fill in the blank – The difference between Buying rate and Selling rate is called spread.

Thank You! .