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SAP Stands for Systems Applications and Products in Data Processing

SAP is the leading ERP Software in the world.

What is ERP?

Enterprise Resource and Planning

Integrated system where all business activities happen in the same system.

Before ERP, all these activities happened in different systems

But with ERP system such as SAP, all activities happen within the same ERP System.

Procurement Cycle
Sales Cycle

SAP Architecture

SAP Architecture has 3 Layers

We will only work in Presentation Layer

SAP Modules

FI Sub modules, CO Sub modules,

General Ledger Cost Element Accounting

Accounts Payable Cost Center Accounting

Accounts Receivable Internal Order Accounting

Asset Accounting Profit Center Accounting

SAP Implementation Roadmap

Most commonly used is ASAP (Accelerated SAP) Methodology

It has 5 Phases,

1. Project Preparation

This is the project planning phase. In this phase we determine,

a. Which Business Software we want to use

b. How much it cost
c. What’s our budget
d. How can we implement it

2. Business Blueprint

In this phase we determine,

a. What do we want the Software to do

b. Details of Business Requirements
c. Fit Gap Analysis

3. Realization

This phase consists of,

a. System configuration according to Business Blueprint

b. System Integration Testing
4. Final Preparation

This phase consists of,

a. Additional Testing
b. End user training
c. Cut over planning and activities

5. Go Live & Support

This phase consist of,

a. Move to Production System

b. Production Support
SAP Environment and Landscape

Sandbox: Prototype system. Not linked to any other system

Development: Configuration and Unit testing done by Configurator

Quality: It’s a copy of Production. Testing done by users.

Production: Live System

SAP Logon Screen
SAP Navigation
SAP FI Organization Structure

Client: Highest Org. Unit. Think of it as a System ID so if System name is Sandbox System ID (Client) is 100.

Company: Organizational unit in Accounting which representing a business organization according to the
requirements of commercial law in a particular country

Company Code: The smallest organizational unit of Financial Accounting for which a complete self-contained
set of accounts can be drawn up for purposes of external reporting.

This includes recording of all relevant transactions and generating all supporting documents required for
financial statements.

Chart of Accounts: Grouping of all the GL accounts that the Company has access to use.

Let’s take a scenario where a Company called ABC Corp. is implementing SAP.

This Company has the Corporate office in NY and will have different locations where they manufacture, sell
and operate from (legal entities) in TX, OK and KS.

Therefore ABC Corp will be represented in SAP as the Company and its legal entities in TX, OK and KS will be
setup as Company Codes.