SAP functionality overview document

1.1 Fundamentals of SAP Client Server Module

1. SAP is fundamentally an ERP (Enterprise Resource Planning) application
utilized in order to agglomerate all areas of business process/practice.
2. Configuration of SAP is required in order to meet the functional needs of
businesses under one centralised integrated operation.
3. In order to achieve this, organisational data using key SAP logic is
manipulated to reflect the structure of the clients business. Following this,
every transaction is executed within the boundaries of the clients sequential
mapped enterprise structure.
1.2 Architecture of ECC
ECC (Enterprise Central Component) based on a three-tier architecture structure.
These layers include; Database (server) layer, Application logic layer & Presentation
(client) layer. Adoption of a three-tier approach utilising an application layer enables
optimisation of input, process and output system logic. Additionally, the use of
application logic also enables you to initiate transactions for functional areas of ECC.

Figure 1: Architecture of SAP Client/Server Model.

Figure 2: Core Modules within SAP ERP/ECC

Materials
Managme
Managme
nt (MM)

Custome
r Service
(CS)

Warehouse
Warehouse
Manageme
Manageme
nt
(WM)
nt (WM)

SAP
Logistics
Module
Key
Componen
ts

Productio
Productio
n
n
Planning
(PP)

Sales
&
Sales &
Distributio
Distributio
n
(SD)
n (SD)

Plant
Plant
Maintenan
Maintenan
ce
(PM)
ce (PM)

Figure 3: Core Modules within SAP ERP/ECC Logistics Component.

Quality
Quality
Managme
Managme
nt
(QM)
nt (QM)

1.3 SAP Basic Infrastructure

Primary Objective = optimise configuration pipeline management. SAP system
landscaping ensures that the integrity of data is enhanced via enforcing a controlled
configuration sequence that primarily targets the end productive system.
Superstructure & Substructure of SAP landscaping
SAP Server Arraignment (logical & unilateral)

DEV
(Developmen
t)

MSQ
(Quality
Measure)

MSP
(Live/Productive)

EACH of the above landscapes would have multiple client databases (AS BELOW)

DEV
(Development
)

Client
(100 Sandbox)
Client
(101 - Unit
Test)

1. Development Server = SAP consultant customization practice

2. Quality Server = Core members perform testing & verification of customisation
practice.
3. Production Server = Live data of ERP functionality in real working practice.

In order to transcend data changes through clients SAP servers, Transport

Requests must be executed in order for the optimisation/refinement process
to be complete.

Sandbox server is primarily utilised during the initial stages of project

implementation for configuration and mapping of the companys functional
business processes.

1.4 Typical SAP High Level Organisation Structure

Client
Chart of
Accounts
Company
Code (001)
Plant (001)

Company
Code (002)

Plant (002)

Company
Code (003)

Plant (003)

Plant (004)

Purchasing Org (001)

Purchasing
Group
(001)
Purchasing
Group
(002)

1.5 Typical Overview Of SAP FI High Level Organisational Structure

C lie n t

G ro u p C h a r t
O f Acc o unts

O p e r a t in g
C o n c e rn

C o n t ro llin g
A re a 0 0 1

C o n t ro llin g
A re a 0 0 2

C om p any
C ode 00 3

C om p any
Code 001

C om p any
C ode 00 4

C om p any
Code 002

C om p any
C ode 00 5

Client highest level of the enterprise structure. Represents the company as an

entity through a centralised client server model.
Group Chart of Accounts - This is a list of all general ledger (G/L) accounts used by
one or several company codes. For each individual G/L account, the chart of
accounts contains the account number, account name, and the information that
controls how an account functions and how a G/L account is created within a
company code. Company codes must be assigned to a chart of accounts.
Operational Concern (OPCON) - Determined by the field analysis criteria,
operational concern facilitates profitability analysis (COPA) through client specific
means of field analysis. For example, you can analyse revenue from sales &
distribution and cost from controlling based upon results posted.
Controlling Area Contain the operational results from associated company codes.
Operational postings for a company code are assigned to a pre-defined controlling
object (i.e. cost department, profit department) in reflection of the internal structure of
an organization.
1.6 Core SAP functionality
Objective = Provide organisations with a standard framework for cross functional
integration across core business functions such as FI (finance), CO (controlling), HR
(human resources), MM (materials management & PM (plant maintenance).
Consultants should always look to functionalise and map fundamental business
processes within the remits of the core SAP modules.
1.7 Materials Management as part of logistics enterprise module
Logistics within SAP can be defined as the management of key business operations
such as material acquisition, refinement, storage, transportation & delivery across
the supply chain spectrum.
The supply chain can be defined as a network of retailers, distributors, transporters,
storage facilities & suppliers that actively participate in the sale, delivery & production
of a particular product.
1.8 Materials Management & Supply Chain Management
Integration between supply chain & material management within a SAP environment
is based primarily on three key process/information flows.
1. The Material Flow
2. The Information Flow
3. The Financial Flow
The Material Flow constitutes the movement of goods across the vendor, company
& consumer spectrum. Increasingly, vendors are seeking competitive advantage
through clarification & pro-active material movement.

The Information Flow The transmission (i.e. EDI) of information on demand & order
fulfilment status increases traceability and accountability across the supply chain
spectrum.
The Financial Flow - The creation of financial documentation & postings across the
supply chain spectrum in order to enable the calculation of financial costings &
forecasting/review analytics.
SAP Mapped Material Flow Overview

ECC Demand SD forcast

or Sales order instigated

Material
Requirements
Planning Run
(MRP)

External
pocurement
against
demands

Purchase
Requisitions

RFQ & Vendor

Criteria
Selection

PO Release &
Processing

Planning of
Manufacture
or packing
plan

Production
order /process
order

WM Picklist of
Components

WM & Goods
issue against
a order

QM & Goods
Reciept

The material flow can therefore be described as integral in driving the process of
supply chain through the SAP client landscape.