Professional Documents
Culture Documents
Introduction to SAP
Business without ERP
PP contacts
Customers Purchasing for
raw material
4
Purchasing
Customer
Calls to place
1 order for a
Car Sales
office/Inventory
contacts PP Production
Planning
3
3
Sales office
contacts
Inventory
Sales Inventory
-3-
Business without ERP (Contd..)
-4-
Business without ERP (Contd..)
Where is my
What is this
car
Customers confusion
What to
manufactur
e??
Whom to Production
contact for Planning
status?
What is
Cost and
Sales Shop floor
profit
Finance
Purchasing
Vendors
Inventory
-5-
Lets Deliver the end product to customer..
I did not order
for a
TRUCK!!!!
Dear Sir,
Your Order…
Sales
-6-
Business without ERP (Contd..)
I AM NOT TAKING
DELIVERY AND WILL
NEVER DEAL WITH YOU!
We are
SORRY Sir
Sales
-7-
Overall Picture
Vendors
Sales Purchasing
General
Ledger A/P
Customers A/R
Production
Planning
-8-
Why Enterprise Architecture
• Money
• Resources
-9-
Enterprise Structure – Integrating Business
Payroll
FA HR
Marketing
GL
Treasury
Partner
Shop
Floor
AP Systems
Purchasing
PP
Sales
AR
Plants
Mfg.
-10-
-11-
Enterprise Architecture - Benefits
ERP
-12-
Quiz Time
-13-
Quiz Time
-14-
History of SAP
• SAP is both the name of the Company as well as their ERP Product
-15-
Steps to Strategic ERP
Enterprise Resource Planning
is evolved through these stages …
Enterprise
Inter-Enterprise Collaborative
Resource
Co-operation Business
Planning
Create
Strategic
Value
Automation
Evolution of ERP
-16-
Evolution of SAP
-18-
Quiz Time
-19-
Quiz Time
-20-
SAP R/3 Architecture
3 Tier Client / Server Architecture
– Presentation Server
– Application Server
– Database Server
-22-
SAP R/3 System Architecture (Contd...2)
-23-
Overview of Presentation & Database Servers
-24-
SAP R/3 Conceptual Areas
-25-
Systems in R3
Transport Request
Client
110
100 etc..
-26-
Clients in R/3
-27-
Clients in R/3
-28-
R/3 Technology Environment
Hardware UNIX Systems
Bull/Zenith Digital NCR
Bull IBM Compaq HP (Intel) Sequent IBM IBM
Digital SNI Data General IBM (Intel) SNI AS/400 S/390
HP SUN ...
Languages
ABAP/4, C, C++, HTML, Java
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
-30-
Client Server Benefit
-31-
Quiz Time
Match the following
Presentation Server Windows
Authorizations Client
Business
Administration
-32-
Quiz Time
Match the following
Presentation Server GUI
Authorizations Basis
-33-
SAP R/3 Modules
SAP Modules
MM – Materials SD FI
CO – Controlling
Management
MM CO
PP – Production Planning AM – Asset Management
PP AM
SAP R/3
QM HR
QM – Quality Management PM WF HR – Human Resources
WM – Warehouse
PS – Project System
Management
-35-
SAP R/3 Application Modules
-36-
Module Functionalities
MM PP
SD
Material Procurement BOM/Work Center/Routing
Inquiry processing
Inventory Management MRP
Sales Order Processing
Batch Management Capacity Evaluations
Delivery Processing
Goods inspection Production Orders
Billing
Invoice Verification QM in production
FI
CO
General Ledger
Cost Center Accounting
Accounts Payable
Product Costing
Accounts receivable
Order Contribution Analysis
Cash management
-37-
Quiz Time
Match the following
Financial Accounting Inventory Management
Asset Management
-38-
Quiz Time
Match the following
Financial Accounting Asset Management
& Financial Reporting
Controlling Profit center Accounting
-39-
Module FI – Financial Accounting
• External reporting of
• General ledger
• Accounts receivable/payable
• Sub-ledger accounts
-40-
Financial Accounting
Bank Management
Foreign exchange of secureties
management and loans
Finance information Cash management
system and forecast
Accounts Accounts
payable receivable
Bank
accounts
Payables
Receivables
General Ledger
-41-
Module CO – Controlling
-42-
Module SD – Sales and Distribution
• Optimize tasks/activities in
• Sales
• Delivery
• Billing
-43-
Sales and Distribution Processing
Sales Support Sales
SALES INFORMATION SYSTEM
activity
MATERIALS MANAGEMENT
Sales Inquiry
Quotation Contract
Delivery Subsequent
Sales Scheduling
USD free of delivery free Returns
order agreement
charge of charge
Shipping
Delivery
Billing
Debit memo Invoice Credit memo
FINANCIAL ACCOUNTING
-44-
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
BASIC DATA PURCHASING Third-party
SD
Material Purchase requisition order
Special stock MRP
Batch Direct requisition
Release procedures
PP Requirements
Vendor evaluation
Price comparisons Spare Parts
info record Price comparison list Service /
Service Purchasing QM spare parts lot
Inspection
specifications Purchase orders
Outline agreements G/L accounts
Workflow Scheduling agreements FI Cash management
and forecast
Optical archive INVENTORY MANAGEMENT
Texts Goods receipt/issue AM Fixed assets
Transfer posting
Mail Quantities and values
Communication Physical inventory Cost center /
Storage bins CO
Classification Budget
Documents INVOICE VERIFICATION
Check and post PS Project
Conditions Price update
-46-
Module PP – Production Planning
-47-
Production Planning
SD
PP
PS
SD
Sales and Operations Project
Planning Networks
Customers Demand management /
SD MPS PM
SD
Sales Material requirements Maintenance
Shipping planning Repairs
Billing Plant
maintenance
Detailed Schedeling and
Planning
Vendors MM
SD Capacity planning QM
SD
Purchasing Shop floor control Inbound Raw
Warehouse Costing Material
Invoice Information system
verification Finished Goods
FI CO HR
Financial Cost Human
accounting accounting resources
-48-
Module QM – Quality Management
• 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)
-49-
Module PS – Project System & HR – Human Resource
• 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
-50-
Quiz Time
• True/False
-52-
Quiz Time
• True/False
(True)
-53-
IS – Industry Solutions
specific functionality
-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 Higher Education &
Research
• SAP for Mining
• SAP for Service Providers
• SAP for Chemicals
• SAP for Industrial Machinery &
• SAP for Oil & Gas
Components
• SAP for Consumer Products
• SAP for Telecommunications
• SAP for Pharmaceuticals
• SAP for Engineering, Construction & • SAP for Insurance
Operations
• SAP for Utilities
• SAP for Professional Services
-55-
SAP Product Overview
Evolution of SAP products
Solutions
mySAP CRM mySAP
mySAP SCM Business
mySAP HR Suite
mySAP ERP mySAP PLM
………..
R/3
Enterprise
R/3 SAP NetWeaver
Web AS
-57-
Evolution of SAP products
my SAP
my SAP
SAP R/3 Business
Solutions
Suite
-58-
SAP R/3
Financials
HR
Corporate Services
Operations
-59-
mySAP Solutions
mySAP Financials
mySAP SRM
mySAP CRM mySAP HR
Corporate Services
Operations
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?
What Service
Use a CRM Engage
Solution to
complete
the Cycle
Fulfill
Transact
Workplace
-66-
CRM Component Landscape
mySAP.com
Portal Users
OLTP
R/3 System
CRM System
BW
As one big
logical box
Internet
Telephone APO
Callers
Mobile Clients
-67-
CRM Internet Sales
Enterprise
Internet-
selling
• 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
-69-
Mobile Sales module within CRM
-70-
Quiz Time
-71-
Quiz Time
-72-
My SAP Supplier Relationship
Management (SRM)
SRM Solution Map
-74-
Key Components of mySAP SRM
-75-
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
-76-
Key Components of mySAP SRM….Contd.
• Supplier Enablement
•Supplier portal: Provides portal features for suppliers to manage their product data
and orders
• Content Management
•Content consolidation: Provides capability to consolidate product and vendor
information
-77-
Quiz Time
-78-
Quiz Time
• Operational Procurement
• Supplier Collaboration
-79-
My SAP Supply Chain Management
(SCM)
SCM – Solution Map
-81-
mySAP SCM
-82-
Typical SAP SCM Solution-scape
SAP SCM
SAP R/3
Dominant source of
Transaction Data Planning system where
Master Data in SAP selective Master data
SCM, destination of maintained and sourced
Core Interface
transaction data like from R/3
planning outputs or
Availability Checks for
Master Data
Execution systems
Module includea
Demand Planning, SNP
& Deployment, PPDS,
GATP, TPVS and TLB
Core interface
Planning Outputs
include Forecasts, SNP
SAP CRM, or PPDS Planned
SAP SRM Orders, Stock
and Legacy BAPI
Transfers and
Production Orders
SAP PLM Systems
-83-
One-on-One comparison
i2 Technologies SAP SCM ORACLE APS Manugistics
(Tradematrix SCM) (Networks SCM)
ATP and Fulfillment Demand Fulfillment SAP GATP (Global Oracle GOP (Global Fulfillment
ATP) Order Promising) Management
Material and Supply Chain SAP SNP (Supply Oracle ASCP Master Planning
Resource planning Planning Network Planning) (Advanced SCP)
-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
Increased Market Dynamics
Call Center Market
Analysis
Integration costs are high
Long integration projects
SCM IT environments become increasingly rigid
Lots of heterogeneous systems
ERP
Pressure on IT increases
E-sales
Must leverage existing investments
-91-
How to Address the Integration Challenge
Reduce Complexity
• Minimize the number of connections
through hubs
Document Mgmt
Market •Use only one platform to integrate all
Call Center Analysis people, information, and systems
Increase company
E-sales
performance
•Increase ease of use, scalability and
adaptability
Trading
E-procurement •Increase business process flexibility
Technical by using an Enterprise Services
systems Architecture
PLM -92-
The fundamental Web services standards are supported by the Web
Application Server (Web AS), which is the basis for all other
NetWeaver components
-93-
SAP NetWeaver
The integration and application platform for lower TCO
-94-
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
Collaboration
Multi-channel Access
Coming in 2003
Process Integration
SAP Exchange Infrastructure
Integration Business Process
Proxy generation and mapping tools Broker Management
Integration directory
SAP’s ability to execute Application Platform
J2EE ABAP
SAP Web Application Server
Multi-channel Access
Proven, scalable, comprehensive toolsets
Leverage existing infrastructure/skillets
-95-
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
Company
Plant
Code
Sales Purchasing
Area Organization
-99-
Company Code
-100-
Organizational Structure - Levels
-101-
Organizational Structure – Business Functions
-102-
Enterprise Structure - Technology
-103-
SAP Organizational Structure: Cardinality
Client
Chart of
Accounts
Purchasing
Group
Company
Code
Purchasing Sales
Plant Organ.
Org.
Loading Division
Point
-104-
-105-
Quiz Time
-106-
Quiz Time
-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
-112-
-113-
-114-
Quiz Time
• State True/False
– Company is obligatory in an organization structure
-115-
Quiz Time
• State True/False
– Company is obligatory in an organization structure
-116-
Organizational Elements in Sales
-118-
-119-
-120-
-121-
-122-
-123-
Quiz Time
-124-
Quiz Time
– Division and
– Distribution Channel
-125-
Navigation
Logging on to SAP System
-127-
-128-
-129-
Adding to favorites
-130-
-131-
-132-
-133-
-134-
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-
Calendar
– Gives an overview of all working days and all days off for a calendar year. It can be
-138-
Calendar
-139-
Unit of measurement
• 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.
-140-
Currencies
-141-
Currency settings
• 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
-142-
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
-144-
Quiz Time
-145-
Quiz Time
called spread.
-146-
Thank You!