Assignment

Enterprise Resource Planning (ERM)

By
Jahanzaib Khan (BSIT-F17-46)

Asad Ali Shakar(BSIT-F17-46)

Ammar Hassan(BSIT-F17-46)

Submitted To
Dr. Abid Rafique

Faculty of Computing & Information Technology

University of Sargodha
SAP Technical Modules
These modules do not directly replicate actual business activity but provide needed support to
functional modules.
SAP BASIS This team is responsible to install, configure, update, patch, migrate, troubleshoot any
technical problem on SAP system to ensure system runs smoothly.
BASIS is basically concerned with application layer of the three layers of R/3. (Presentation layer,
Application layer and Server layer). Hence basis basically emphasizes the administration of RDBMS
(Relational Database Management System – or simply the database sap system is using), client-server
architecture and the SAP GUI. Hence BASIS team is basically system administrator.
SAP ABAP (ABAP stands for Advanced Business Application Programming). It is a programming
language in which codes are written. ABAP runs on the application layer of R/3 system.
SAP offers predefined functionality to meet business requirement. But predefined functionality may
not suffice to fulfill business requirement hence customization is needed. Standard or predefined
functionality is basically set of codes which are already developed by SAP hence when customization
is required to meet requirement either new codes are developed or existing standard code is copied and
edited.
ABAP stands for Advanced Business Application Programming. It’s a programming language in which
codes are written. ABAP runs on the application layer of R/3 system.
Example: Boss’s need various reports to make decision hence SAP offer a large number of predefined
reports. But in case, exiting report is not able to fulfill requirement then new report is to be developed.
Report can be developed either by copying existing code and editing or by developing entirely new
codes.
SAP BI & SAP BW: In big organizations everyday huge amount of data is generated. In order to make
strategic business decision, bosses need to analyse the performance/ position of business (backed by
data). Data needs to be collected at one place and analysed to derive meaning full information out of it.
But organizations face challenges like: data is generated globally, data is originated from various
sources, data may not be uniform, data may be redundant/ duplicate as well.
SAP BW/ BI offer solution to above problems.
Data across geographies/ sources are collected at one place called data warehouse (BW). BW is
basically home to all data and hence BW stands for business warehouse.
Data is then cleansed to remove redundancy/ duplicity and data is aggregated and made uniform which
can be used for generating meaning full report out of it. These reports provide meaning full information
or intelligence and hence BI stands for business intelligence.

SAP NET WEAVER Organizations have become big and robust. Organization might be using various
SAP applications as well as non-SAP applications (other than SAP). In order to run business effectively
various applications and servers need to interact with each other. SAP NET WEAVER provides a
common platform where various applications/ servers can be integrated.
Example: consider an e-commerce company using SAP applications. Customer can order product
online (website). Website might be based on JAVA application. Company is using SAP to streamline
internal business process and JAVA is being used for website. Hence data needs to be exchanged
between both java server and SAP server. Here the challenge is integration of various applications/
servers. This module overcomes the challenge by bringing all application/ servers on a common
technology platform and hence called NET WEAVER.

SAP Functional Modules

In order to replicate and enable business process, SAP offers various predefined or standard
functionality to help departments in performing various business activities. The SAP modules which
provide predefined standard functionality to replicate actual business activity are called functional
module. A functional consultant has to understand the business requirement and use the standard
functionality provided by SAP.

There are various functional modules included in SAP solutions, which support transactions to run
various business processes, such as

• Financial Accounting (FI)

• Financial Supply Chain Management (FSCM)

• Controlling (CO)

• Materials Management (MM)

• Sales and Distribution (SD)

 • Logistics Execution (LE)

• Production Planning (PP)

• Quality Management (QM)

• Plant Maintenance (PM)

• Project System (PS)

• Human Resources (HR)

Finance And Controlling (FICO)

It includes two ERP modules (Finance and Controlling), Under Finance in SAP and at enterprise level
there are multiple modules included which are following

• Finance (FI)

• Controlling (CO)

• Treasury (TR)

• Investment Management (IM)

• Enterprise Controlling (EC)

SAP FI is responsible for keeping the track of flow of financial data across an organization in an
integrated and controlled manner.

Activities Involved in SAP FI

i. Creation of Organizational Structure

ii. Financial Accounting Global Settings

iii. General Ledger Accounting

iv. Tax Configuration & Creation and Maintenance of House of Banks

v. Account Payables

vi. Account

vii. Asset Accounting

viii. Integration with SD and MM

SAP CO facilitate, monitor, and optimize all the processes in an organization. It also controls the
business flow in an organization. SAP Controlling module also helps in analyzing the actual figures
with the planned data and in planning business strategies.

Two types of elements are managed in SAP CO

1. Cost Elements
2. Revenue Elements
These two modules are stored in FI.

Activities Involved in SAP CO (controlling)

i. Cost Element Accounting

ii. Cost Center Accounting

iii. Activity-Based-Accounting

iv. Internal Orders

v. Product Cost Controlling

vi. Profitability Analysis

vii. Profit Center Accounting

Sales & Distribution Management (SD)

SAP SD is one of the most important modules in SAP. It has a high level of integration complexity.
SAP SD is used by organizations to support sales and distribution activities of products and services,
starting from enquiry to order and then ending with delivery.

Activities Involved in SAP SD

i. Setting up Organization Structure

ii. Assigning Organizational Units

iii. Defining Pricing Components

iv. Setting up sales document types, billing types, and tax-related components

v. Setting up Customer master data records and configuration

Material Management (MM)

Material Management deals with movement of materials via other modules like logistics, supply chain
management, sales and delivery, warehouse management, production and planning.

Logistic Execution (LE)

Logistic Execution can be divided into two sub-modules, i.e., shipment of goods (purchase to
procurement process) and warehouse management (storage of goods). These two modules are
integrated with sale and distribution, material management, and production and planning.

Human Resource (HR)

The most important objective of master data administration in Human Resources is to enter employee-
related data for administrative, time-recording, and payroll purposes.

The HR module is comprised of major areas of functionality known as sub-modules. The HR module is
a true demonstration of the strength of the SAP product in Enterprise Resource Planning.

• The HR system has very strong integration points (where data is passed back and forth without
human intervention) with just about all of the other SAP modules. In addition, there is very tight
integration amongst the HR sub-modules.

• Business trip management

• Recruitment

• Payroll

• Personal development

• Organizational Management

• Time Management

• Workforce Planning

• ESS

• MSS

• Training and event management

• CATS

• Benefits

• Compensation management

• Personal Administration

Oracle E-Business Suite Modules

Oracle E-Business Suite (also known as Applications/Apps or EB-Suite/EBS) consists of a collection
of enterprise resource planning , customer relationship management, and supply-chain management
computer applications either developed or acquired by Oracle.

Customer Relationship Management (CRM)

The Oracle CRM (Customer Relationship Management) is a set of applications that gives you
information-driven sales, service, and marketing. Oracle CRM is built on an open, standards-based
architecture that streamlines business processes, improves data quality, and allows all your key
divisions to draw from the same source of data. With Oracle CRM, your company owns the single best
tool for customer success—accurate information.

Services

Oracle’s E-Business Suite family of Service Applications provides true information-driven customer
service. It enables an organization to meet and exceed customer expectations by empowering them with
information that is consistent, accurate, and actionable.

Financial

The Oracle Financials application includes General Ledger, Cash Management, Payables, Receivables,
Fixed Assets, Treasury, Property Management, Financial Analyser and a self-service expenses
function.

Oracle Human Resource Management

The Oracle Human Resource Management System (HMRS) module helps companies manage the entire
recruitment process and provides a real-time view of all HR activities such as recruitment, training,
benefits, and payroll. The HRMS suite fully integrates with all E-Business Suite applications and offers
users an analytics package that allows for easy extraction of HR data.

Oracle Project

Oracle Projects Portfolio of applications supports the full lifecycle of project and portfolio
management. It provides a single, accurate view of all project-related activities. It allows users to select
the best portfolio of initiatives, execute projects in adherence with methodologies, assign the right
global resources, proactively streamline project delivery, and track profitability via accurate budgeting,
forecasting, and Billings/charge-backs.

Supply Chain Management

The Oracle Supply Chain applications allow organizations to predict market requirements, innovate in
response to volatile market conditions, and align operations across global networks. There are several
industry-specific solutions available that incorporate demand management, sales, and operations
planning, transportation management etc.

Procurement

Oracle Advanced Procurement is an integrated suite of applications that dramatically cuts all supply
management costs. The solution helps you to reduce spending on goods and services, streamline
procure-to-pay processes, and drive policy compliance.

Value Chain and Planning

Oracle’s Value Chain Planning solution enables companies to become more information-driven with
best-in-class supply chain planning applications built around a core of optimization, sales and
operations planning, and performance management.

Oracle Transportation Management

Transportation management (TMS) provides transportation planning and execution capabilities to

shippers and third party logistics providers. It integrates and streamlines transportation planning,
execution, and freight payment.

Oracle Warehouse Management Systems

Oracle’s Warehouse Management System allows coordinated movement of goods and information
throughout the extended distribution process. The module provides business processes that can deliver
efficient utilization of employees, equipment, and space in the distribution process.