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Basic Knowledge
Basic Knowledge
Gauri Bansode
Under the Guidance of
In any organization there are various department and various process takes place on daily
basis. ERP controls overall process of an organization. It spends less time in co- ordination
Transparency is maintain within the departments.
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SAP GURU
SAP ERP consists of several important functional modules based on different business functions
of the company. They are as follows-
ERP Systems -
1. SAP
2. Oracle
3. BAAN
4. PeopleSoft
5. MARSHAL, etc.
More than 60% of organization use SAP
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SAP GURU
SAP R/3 System Overview:
SAP stands for Systems, Applications & Products in Data Processing. SAP ERP (Enterprise
Resource Planning) is a commercial software that integrates all the information in a single
software, considering various factors such as time and cost. Organizations can easily meet their
business demands with the help of SAP. SAP software manages these business management
tasks in modules that all work together in one system by sharing information
In SAP R/3 system, R stands for Real -Time and 3 stands for 3 -tier architecture as follows-
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SAP GURU
Overview of SAP HANA –
SAP systems were using Oracle, Microsoft, etc. database before 2011, after that it developed its
own database known as SAP HANA. SAP HANA is an in-memory database technology which
acts as the core technology for a lot of other SAP or non-SAP applications.
SAP S/4 HANA is a new generation ERP solution which runs on SAP HANA database
architecture. ... It is an in-memory version of the ERP Business Suite as it only runs on SAP HANA
• S stands for SAP Business Suite for SAP HANA and 4 stands for 4-Tier architecture
• A new product and next generation of Business Application.
• Fully built on in -memory platform of SAP HANA.
• Modern and Simplified User Experience optimized for all devices
• Choice of Deployment (On-premise, public/private cloud, or hybrid deployment)
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SAP GURU
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SAP GURU
Introduction to SAP MM Module:
• SAP Material Management covers business functions such as procurement and inventory
management. The procurement can be for materials or services.
• SAP MM deals with material management and inventory management.
• It helps to maintain the Stock and avoids the shortage of material and runs the organization
smoothly and efficiently.
• Avoids the gap in Supply Chain Management.
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SAP GURU
Types of Data in SAP MM:
1.Master Data -It consists of Vendor-Material-Purchase Info Record
2.Transactional Data-In this Data we create transactions. In MM we create Purchasing Order,
Sales order, Invoice.
3.Customizing Data-It is the data where we change customizing according to Business
Requirements.
Master Data:
• Every client has its own Master Data.
• It is a source of centrally maintained information that is available for retrieval when required
during transactions.
• This helps to maintain consistent information enterprise wide and eliminates repetitive data
entry.
• It is collection of frequently used data. It is a core data and used as a base for any
transactions.
• It contains is data which is stored for long period of time.
Why we need Master Data?
Master Data is a data where all general information related to material, vendor, etc. is stored and
whenever required it can be used to create any document at the time of procurement cycle. When
we create the purchasing, the R/3 System process the data entry by coping the data for existing
master records as default values in purchasing documents.
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SAP GURU
Material Master Data and Vendor Master Data are most important data in procurement cycle
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SAP GURU
Organizational levels in procurement cycle:
Plant-It is a unit where materials are manufactured, or goods and service is provided.
Sales organization-A unit responsible for its sales and distribution of its goods and services.
Storage Location -Unit where materials are stored. Inventory Management and Physical
inventory is done at this level.
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SAP GURU
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SAP GURU
Determination of requirements-
If any department in an organization needs to procure a material it creates the PR to the
purchasing department.
Determination of source of supply- the determination of the source is done through RFQ.
We request vendor for quotation.
Vendor selection – The system simplifies the selection of vendor by making price
comparison through various quotations
Order processing -When the vendor is selected the Purchase Order is created.
Purchasing order monitoring- The buyer can monitor the PO anytime and can determine
whether invoice or goods receipt is created
Goods receipt -The system compares the goods receipt quantity with purchase order
quantity.
Invoice Verification -Vendor invoice is checked for accuracy
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SAP GURU
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