01 R3 Overview

Right Solution, Right Time, Right Price
R/3 Overview
 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

Introduction

Purpose of Overview
 Provide an introduction to the SAP R/3 system
 Explain the system’s functionality
 Introduce SAP R/3’s approach to business

processes

5. Summary
4. Business Process: Overview
3. System-wide Concepts
2. SAP R/3 System Overview
1. Introduction

2. SAP R/3 System
Overview

Unit 2 Topics
SAP R/3 System Overview

SAP R/3 Application Modules
SAP R/3 System Benefits
SAP’s Business Framework

SAP R/3 Pre-Configured Client (PCC)
SD FI
Sales & Financial
Distribution Accounting
MM CO
Materials
Mgmt. Controlling
PP AM
Production
R/3
Fixed Assets
Planning Mgmt.
QM
Quaity
Client / Server PS
Project
Manage-ment System
PM WF
Plant Main-tenance Workflow
HR IS
Human Industry
Resources Solutions

SAP R/3 Application Modules
Sales and Distribution (SD)
 The SD application module helps to

optimize all the tasks and activities
carried out in sales, delivery, and
billing

Materials Management (MM)
 The MM application module

supports the procurement and
inventory functions occurring in
day-to-day business operations

Production Planning (PP)
 The PP application module is used

to plan and control the
manufacturing activities of a
company

Financial Accounting (FI)
• The FI application module is

designed for automated
management and external reporting
of general ledger, accounts
receivable, accounts payable, and
other sub-ledger accounts with a
pre-defined chart of accounts

Controlling (CO)
 The CO application module

represents the company’s flow of
cost and revenue
 CO is a management instrument
for organizational decisions

Asset Management (AM)
 The AM application is designed to

manage and supervise individual
aspects of fixed assets

Benefits of the system

SAP
•Integrated

SAP and Integration
The value of Integration:
• Integrated systems enable simplified business
processes, standard data definition, and a common
business language
• Simplified business processes enhance productivity to
allow focus on value added activities
• Data has to be entered only once and all related
information is updated automatically
• Integrated applications instill confidence in information
and eliminates need for redundant analysis and
reconciliation

Integrated & Process Driven
Purchas Goods Product
Manufacture
e Receipt Delivery
Order
MM, FI, MM, FI, MM, FI, MM, SD,

CO, PP CO, QM CO, FI, CO

SAP
•Integrated
•Enterprise-Wide

SAP
•Integrated
•Best Business
Practices •Enterprise-Wide

SAP
•Integrated
•Multi-Currency
•Best Business •Enterprise-Wide

Practices

•Multi-Lingual SAP
•Integrated
•Multi-Currency
•Enterprise-Wide
•Best Business
Practices
•Secure •Integrated
•Multi-Lingual Information
SAP
•Multi-Currency
•Enterprise-Wide
•Best Business
Practices
SAP GUI: Graphical User Interface

Questions

3. Concepts and
Features

Concepts and Features
 System-wide Concepts
 System-wide Features

System-wide Features
 Organizational Elements
 Master Data
 Security

Organizational Structure
The fundamental data and functional
architecture of the R/3 system...
– Defines the legal and organizational structure of
a company from different points of view
– Includes flexible organizational units for
creating a comprehensive company structure
– Links different application areas in the R/3
system to create an integrated company
structure

Master Data
Vendor Master
Customer Master
RFQ
Purchasing
?
Quotation
Vendor
G/L Account Master

Client
Chart of Accounts Chart of Accounts

G/L Account BANK
A B
Bal sheet acct X
Material Master Account group

.
FIN.
Company Codes
CC 0001 CC 0003
Currency USD Currency CAD
Line item Line item

Display X Display X
. .
. .

The Material Master
SAP R/3
Purchasing Material Master Record Sales Order

Processing
Central repository
of material data for all
areas within logistics:
Finished Products 1998
Semi-finished products
Raw materials
Consumables
Marketing Materials
Invoice
Production
Verification
Planning
Inventory
Management
System-wide Features
Security:
 Profiles
 Objects
 Authorization

Authorization Groups
• There are pre-defined authorization groups which
have been established for the PCC
• The pre-defined authorization groups are based on
roles and responsibilities
• They are for unit and integration testing
• Can be modified to meet your needs (new hires,

responsibility etc.)

SAP Reporting
SAP
Standard
Reports?

Questions

4. Business Process
Overview

Topics
Business Process Overview
 Business Processes
 SAP R/3 Functionality

Business Processes and SAP R/3 Functionality
Manufacturing Planning
& Execution (making)
Procurement
(buying)
Customer Order
Management
(selling)
Financial / Management
Accounting and Reporting
(accounting)

Business Processes and SAP R/3
Functionality
Manufacturing
Planning & Execution

Manufacturing Planning and Execution Process
Manufacturing Planning and Execution refers to the

process of recognizing demand, netting requirements ,
planning for the production or procurement of materials,
and identifying the capacity to satisfy demand.

Manufacturing Planning
& Execution
Demand Manufacturing Order

MPS MRP
Mangmnt Execution Settlement
Capacity Inventory Costing
Production Master Data
Reporting and Analysis

Procurement

Procurement
• Procurement refers to the process of
requisitioning, vendor sourcing, purchasing,
receiving, and paying for materials and
services to be used throughout the
organization.

Procurement
Requirement Purchase Goods Invoice Vendor

for Goods /
Services Order Receipt Verification Payment
Planning, Reporting and Analysis

Business Processes and SAP R/3
Functionality
Customer Order
Management
Customer
Order

Customer Order Management
• Customer order management refers to the

process of taking orders, checking availability,
delivering goods, invoicing customers, and
receiving payment.

Customer Order Management
• Its functionality includes the following:
– Sales order processing
– Delivery
– Billing
– Customer payment
– Customer support
– Sales Information System (SIS)

Customer Order
Management
Sales Order Customer

Delivery Billing
Processing Payment
Planning, Reporting and Analysis

Financial / Management
Accounting and Reporting

FI
Financial Accounting
• General Ledger
Accounting
• Accounts Payable
• Accounts Receivable
• Financial Controlling
• Asset Management

CO
Controlling
• Budgeting / Planning
• Cost centres / Elements
• Internal Order Accounting
• Profit centre Accounting

Questions?

Summary
System is
• pre-configured (SD, MM, PP, FI-CO, AM)
• integrated
• enterprise-wide
• multi-currency
• multi-lingual

Summary
Common features
• Organizational elements
• Master data
• Security & authorization
• Reporting

Summary
Pre-defined Business Processes for the pre -
configured client:
Manufacturing Planning & Execution (making)
Procurement (buying)
Customer Order Management (selling)

Right Solution, Right Time, Right Price

01 R3 Overview

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Right Solution, Right Time, Right Price

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 Provide an introduction to the SAP R/3 system

 Explain the system’s functionality

 Introduce SAP R/3’s approach to business

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

4. Business Process: Overview

2. SAP R/3 System Overview

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

SAP R/3 System Overview

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 The SD application module helps to

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 The MM application module

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 The PP application module is used

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

• The FI application module is

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 The CO application module

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 The AM application is designed to

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

MM, FI, MM, FI, MM, FI, MM, SD,

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

•Best Business •Enterprise-Wide

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

G/L Account Master

Chart of Accounts Chart of Accounts

Material Master Account group

Currency USD Currency CAD

Line item Line item

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

Purchasing Material Master Record Sales Order

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

• Can be modified to meet your needs (new hires,

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

Business Process Overview

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

Manufacturing Planning and Execution Process

Manufacturing Planning and Execution refers to the

 SAP America Inc. R/3 Overview Workshop ppt Jan, 1999

Demand Manufacturing Order

Capacity Inventory Costing

Production Master Data