Practical Application of the SAP ERP
Information System in the Innovative Teaching
Process of the Controlling of a Manufacturing
Company
A. Behunova*, L. Knapcikova*, M. Behun** and M. Albert**
*
Technical University of Košice, Faculty of Manufacturing Technologies with seat in Prešov, Department
of Industrial Engineering and Informatics, Slovak Republic
** Technical University of Košice, Institute of Earth Resources, Slovak Republic
annamaria.behunova@tuke.sk , lucia.knapcikova@tuke.sk , marcel.behun@tuke.sk , marian.albert@gmail.com
Abstract— The educational process in schools often brings
with it courses which are not very interesting for students.
Therefore, it is necessary to constantly innovate the
educational process, to find new opportunities for students
to interact, and to move beyond their limits of knowledge,
for example, through information systems. Information
systems represent a variety of possibilities for innovation,
depending on the type of information and communication
technologies used in the educational process. This article
refers to the application of information systems, namely the
ERP system from the company SAP, the SAP CO module,
within the scope of the course Controlling of a
Manufacturing Company. The aim of the innovation is to
increase students´ interest in the course and, at the same
time, to increase their practical experience in the field of
enterprise information systems, which is beneficial for both
sides – students and future employees on one hand, and
their potential employers on the other.
I. INTRODUCTION
Nowadays, companies use different economic and
accounting systems to assist them in their daily operation.
The role of the first company-wide information systems
was mostly inventory management and material planning.
Present information systems already include most of the
business processes and automate human work, thus
ultimately bringing enterprises to run more efficiently.
The 1980s represented the peak of systemic concept of the
enterprise as a whole, which consists of individual
subsystems. The beginning of the 1990s brought a new
perspective on software products for enterprise
information systems and the essence of this new approach
was the view of the information system as a means of
enterprise resource management and information security
of the processes taking place in it. Enterprise Resource
Planning (ERP) systems are an effective tool for planning
and managing internal business processes, which uses a
single data base and provides real-time access to its
functions for all levels of the enterprise, thus allowing the
enterprise the most efficient transformation of inputs into
outputs through available resources [1], [2].
The main reasons for the introduction of ERP systems
are:
• the quality and availability of information,
• business processes management,
• decision support.
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According to statistics, achieving objectives of reducing
inventories, improving customer service and reducing the
cost of logistics occurs in about 50% of the cases in the
first year after implementation of ERP systems.
SAP = Systems, Applications and Products in Data
Processing. SAP is currently the largest provider of
business applications and one of the largest software
companies worldwide. It was founded in 1972 in
Mannheim by a group of former IBM employees with a
vision to develop a software package containing a variety
of business functions. The most important part of the idea
was to help enterprises to replace dozens of diffent
business applications (such as financial accounting
applications, warehouse management applications,
production planning solutions, maintenance evidence
systems, etc.) with one integrated system [3].
Nowadays, this system is used [3]:
• by more than one million business users for more
than 251,000 customers,
• in more than 130 countries,
• to create and implement more than 54,000
employees and 2,000 implementation partners,
• in 40 different languages,
• in 50 currencies of the world.
In its software, SAP reflects best practices of various
branches of industry, solutions for which are divided into
four basic areas – manufacturing, sevices, financial sector,
and public sector. However, there are 24 groups of
industry areas that are installed ´above´ other SAP
products. These include automotive, banking, security,
travel and transportation, chemical industry, high tech,
mining, aviation and defense, retail, media, professional
services, insurance, natural sciences, sport and leisure, oil
industry, mechanical engineering, utilities industry,
telecommunications, wholesale, public administration,
public service, health service, education, and research.
Among the customers in Slovakia are Volkswagen
Slovakia, Slovak Railways, Slovenský plynárenský
priemysel, Východoslovenská Energetika, Slovak
Telekom, Orange, Slovenská pošta, Stredoslovenské
energetické závody, Východoslovenské energetické
závody, Allianz-Slovenská pois ov a, Tatra Banka, Prvá
stavebná sporite a, Lesy SR, Ministry of Defense of the
SR, Ministry of Finance of the SR, Ministry of Education
of the SR, Ministry of Agriculture of the SR, and many
others. The largest customers in the world include General
50
 Motors Corp., Discovery Channel, Shell, Siemens AG,
Porsche AG, Audi, etc [3].
SAP divides systems into two main areas [4]:
• SAP Business Suite, which includes all business
applications,
• SAP NetWeaver, which includes components
enabling the use of SAP Business Suite (such as web
portal or business intelligence tools).
SAP Business Suite is a SAP solution designed for
implementing and optimising business strategies. These
are integrated business applications enabling the
performance of basic business processes. SAP Business
Suite products are among the best known SAP products
and offer a variety of solutions, which can be seen in
Fig. 1 SAP Architecture [5].
Figure 1 SAP Architecture [5]
A. SAP Enterprise Resource Planning (ERP)
Enterprise Resource Planning is an information system
which integrates and automates a large number of
business processes. It represents not just a specific type of
software but the solution as a whole. The content of the
ERP system has gradually evolved. The original concept
included only logistics, finance and human resources.
Over time, the original concept was expanded to include
manufacturing, trade, inventory, assets, etc. The ERP
includes basic business features, for example:
• SAP ERP Financials – contains modules of financial
accounting, market risk management, controlling,
assets;
• SAP ERP Operations – includes modules for
logistics design and performance, product
development and manufacturing, sales and services;
• SAP ERP Human Capital Management – its aim is to
create an organisation (enterprise) which is well
prepared to manage and also to retain employees;
• SAP ERP Corporate Services – is used for project
and portfolio management, environmental
protection, safety at work, quality management and
control;
II. SAP ERP Analytics – contains powerful features
for business analyses. [2], [4]
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A. SAP Customer Relationship Management (CRM)
Customer Relationship Management is an
entrepreneurial approach characterised by actively
creating and maintaining long-term (beneficial)
relationships with customers. These relationships have to
be beneficial for both parties – both for the customer and
the company. Customer relationship management enables
collection, processing and use of information about
individual customers, consumers. It allows the company to
know and anticipate the needs, desires and purchasing
habits of their customers. SAP CRM software is an
application which helps to reduce costs, improve decision-
making, and achieve a competitive advange in the long
run. SAP CRM includes following business features:
• marketing support – it supports management of
marketing resources, campaigns, market segments,
sales support to the distribution network, potential
customer and marketing analyses;
• sales promotion – provides dealers with the tools
they need to complete orders. These include, for
example, management of contacts, accounts,
opportunities, planning and forecasting of sales;
• service support – helps to maximise the value
derived from sales of services;
• web channel – leads to increased sales and reduced
transaction costs of individual transactions through
effective linking of business with the customer;
• supply management in real time – the enterprise is
able to quickly improve customer relationships;
• management of partner channels – it improves
processes for partner search, management,
communication, marketing, forecasting, sales in co-
operation with partners, and management of partner
contracts;
• management of business communication – it allows
the management and administration of incoming and
outgoing contacts in multiple locations and
communication channels simultaneously. [2], [4]
B. SAP Product Lifecycle Management (PLM)
Product Lifecycle Management also helps to develop
new products, it includes tools for creativity and
innovation, it is a tool for new product development and
its marketing. PLM unifies production management,
supplier relationship management, customer relationship
management, quality management system, technical
development planning system and thus creates a complete
set of product information. [2], [4]
C. SAP Supply Chain Management (SCM)
Supply Chain Management allows businesses to plan
and simplify the enterprise network of logistics and
resources, linking of which creates a supply chain. It
consists of supply, production and distribution. As a
result, the enterprise can then adapt its processes to a
constantly changing competitive environment. [2], [4]
D. SAP Supplier Relationship Management (SRM)
Supplier Relationship Management is designed to
optimise and manage relationship between the enterprise
and its suppliers. With this solution, the enterprise can
explore and predict purchasing behaviour, shorten
 procurement cycles, and collaborate with partners in real
time. This allows the company to establish long-term
relationships with all suppliers who have proven to be
reliable partners. [2], [4]
The implementation of an enterprise information
system, such as SAP ERP, brings a large number of
benefits through which companies recover their full
potential more effectively. Businesses are more flexible in
adapting to market conditions through customer
relationship management, product life cycle, supply chain
and, last but not least, supply chain management. On the
other hand, in addition to advantages, disadvantages also
arise. One of the biggest drawbacks of the SAP ERP
implementation is the complex and time-consuming
training of company employees, who should use the new
information system in their work. Therefore, it is, from the
point of view of universities, necessary to prepare their
graduates for increasing qualification requirements of their
future employers. One of the ways of preparation, through
which students become acquainted not only with
theoretical knowledge but also with practical training, is
innovation of the teaching process of the course
Controlling of the Manufacturing Company.
III. RESEARCH MATERIAL AND METHODOLOGY
In the present contribution, we focus on the course
Controlling of a Manufacturing Company, which is one of
the courses in the first year of the second level of study in
the field of study Production Management. As the second
level of study is concerned, it is even more important to
innovate the teaching process and to implement more
practical training in the courses, in order to enhance the
students´ ´interestingness´ on the market of production
factors.
The objective of the course is to acquaint students with
the issues, research and implementation of controlling in a
company. The content of the course is as follows:
• Basic concepts and criteria of management
accounting in controlling;
• Activity Based Costing (ABC) method – basic
introduction to the issue;
• Planning processes, planning methods and
techniques in controlling;
• Creation, deployment and implementation of
controlling;
• Basic planning categories in controlling;
• Risk analysis and assessment in the company;
• SWOT analysis in controlling;
• Project and product controlling;
• Decision-making processes, methods and techniques
of decision-making in a company;
• Nature and methods of personnel work in a
company, personnel controlling.
As part of the creation, deployment and implementation
of controlling, it is necessary to innovate and supplement
the theoretical knowledge of students with practical
experience acquired by acquainting themselves with SAP
ERP CO – controlling module, its basic functions,
possibilities and levels of application in real SAP
environment.
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Controlling offers the company management the basis
for decision making. It facilitates the coordination,
monitoring and optimisation of processes within the
organisation. Management accounting – controlling
includes all functions necessary for effective management
of costs and revenues. [6], [7] The basic components of
SAP CO are:
• Overhead costs controlling is used to determine and
allocate overheads. It includes all costs which cannot
be directly attributed to a given business area,
• Cost centre accounting allows analysis of overhead
costs according to where in the organisation they
incurred,
• Accounting of cost items – is focused on cost
classification and data reconciliation,
• Activity Based Costing (ABC) – offers additional
possibility of cost sharing,
• Internal orders – usually used for planning,
collection, and settlement of costs for internal tasks;
• Product cost controlling is used for assessing the
product or service cost through costing.
• Profitability analysis makes it possible to analyse
business activities and their effect on the external
market. This component can determine
successfullness of a business and a product for
different segments. The typical questions answered
by the profitability analysis iare: Who are the biggest
customers and who of them has the highest growth
potential? Are sales unit reaching their goals? How
successful was the latest marketing campaign? What
is the effect of a given pricing strategy for different
customer groups?
• Profit Centres Accounting analyses the success of
individual profit centres. Typical questions answered
in this area are: What is the operating result of the
Profit centre? Which assets are assigned to the given
Profit centre? Which areas are doing better than
planned? Which products and services were sold?
[8], [9]
SAP CO organizational units include cost circle,
economic performance area, cost centre, and profit centre.
Cost circle – this is the basic organizational unit of SAP
CO. Several accounting circles can be assigned to one cost
circle. However, it is important that all accounting circles
under one cost circle use the same accounting schedule
and the same fiscal year definition. Economic
performance area – this is the highest level of
organizational structure of the company on which the
profitability analysis is performed. One economic
performance area may include several cost circles. Costs
centre – the area where costs arise. They are used to divide
the enterprise on the basis of criteria defining the
responsibility for costs and business activities. They often
correspond to individual function areas of the enterprise,
e.g. purchasing, marketing, sales, etc. Profit centre – it
reflects the structure of the company in terms of
management and is created for internal management
purposes. Separate financial statements can be created at
the level of the profit centre. [10], [11]
In 2005, the Technical University of Košice (TUKE)
started to gradually switch to and introduce a new trial
economic and information system SAP. This information
system provides a combination of functionality, flexibility
 and technology enabling an organisation to respond
quickly to a variety of changes. Since 2008, the system
has been put into full operation at the university. The
information system of TUKE is aimed to support
processes in the areas of financial accounting, investment
assets, controlling, materials management and sales. [2]
CO (controlling) module, customised for TUKE needs
includes:
• controlling module (internal accounting) supports
standart and specific requirements of controlling
processes:
• records of responsible persons for monitored
planning areas at project and cost centres level,
• reporting of:
• post-tax cost-revenue analysis,
• economic performance after taxation,
• post-tax cost-revenue analysis compared to
previous accounting years,
• accounting of profit centres in the areas – assets,
inventories, receivables, liabilities,
• profitability analyses, automatic creation of
internal accounting documents when relevant
accounting documents related to development of
costs and revenues in the external accounting are
generated,
• manual posting of items in the revenue accounts
of internal accounting,
• automatic breakdown of actual costs to individual
organizational units according to predefined
rules;
• in the controlling module, we can calculate and track
the preliminary costs, which we then can compare
with the actual costs,
• monitoring of both production and overhead costs,
possibility to create own reports,
• tracking the history of plan changes,
• reporting – in accordance with the Cost Model for
Slovak Public Higher Education Institutions (HEI):
• annual cost calculation in the areas of higher
education, research, other activities related to the
main activity of the public HEI in accordance
with the methodology of the Cost Model for
Slovak Public HEI,
• calculation of project costs in accordance with
the methodology of the Cost Model for Slovak
Public HEI. [2]
IV. RESULTS AND DISCUSION
As a part of the innovation of the abovementioned
course, the SAP ERP version – a training client, provided
to the Faculty of Manufacturing Technologies based in
Prešov of the Technical University of Košice, will be used
as a training version for educational purposes (see Fig. 2).
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Figure 2 SAP Login
In the first step of the innovated practical part of the
course, students need to become familiar with the SAP
environment. To log in to SAP, each student has their
own account, which is entered in the User box – within
the training system, 25 accounts are created (named
SAPFVT01 – SAPFVT25) – and then the password is
entered. After successful login, the user will see the SAP
Menu (Fig. 3).
Figure 3 SAP Menu
When the SAP Menu is displayed, the user can choose
from the following options: Office, Cross-Application
Components, Logistics, Accounting, Human Resources,
Information Systems, Tools. By double-clicking
individual menus, other submenus consisting of other
centres and reports are opened. For specific access to
controlling within the SAP interface, the user can choose
from two alternatives:
• to use the search bar and enter the word
´controlling´,
• to access on the basis of theoretical knowledge,
where the user has precise control over the areas
within which controlling is present and thus focuses
on Logistics and Accounting.
In the first case, students will use the search function -
´binoculars´ icon located on the standard tool bar of the
SAP window to find controlling in the SAP menu. After
entering the word ´controlling´ (see Fig. 4), and ticking
the required areas, the SAP menu will directly display the
Controlling menu, which can be found either in the
technical title, in the text or simultaneously according to
both types of search. After the first ´click-through´ (after
the first confirmation of the search), the system is able to
search only one area in which the searched term is
located. To search for the term further in the SAP Menu,
use the ´binoculars plus´ icon, located next to the
´binoculars´ icon we used for the first search. Each time
you click the ´binoculars plus´ icon, you see further and
further occurance of the searched term in the SAP Menu.
 Figure 4 Searching in the SAP Menu tree
Figure 6 SAP Menu – Logistics Controlling – Inventory

The second approach is based on the knowledge acquired

by the students in the course Controlling of a
Manufacturing Company. In this course, students will
become familiar with the inclusion of controlling in
individual functional business areas, its importance for
the company, the possibilities that it offers. First, students
will get acquainted with the Logistics menu (Fig. 5), in
which we can find the Logistics Controlling (Fig. 6).
Logistics controlling in a company enables it to perform
inventory controlling, which consists of Standard
Analysis, Flexible Analysis, Planning, Early Warning
System, Information Library, and Environment.

Figure 7 SAP Menu – Accounting

Figure 5 SAP Menu - Logistics

The second menu that students learn about in the SAP

environment is the Accounting Menu (Fig. 7). Within this
menu, the company can perform process controlling,
product cost controlling and product controlling (Fig. 8).

Figure 8 SAP Menu – Accounting – Controlling

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 While working with SAP, students will use the standard you can select the required report type (output
toolbar buttons (Fig. 9) to perform individual operations, summary report) (Fig. 13). [2]
such as moving around the page, step back, cancelling of
transaction, searching the SAP Menu, saving, printing,
etc.

Figure 11 SAP – Select statement in cost center accounting

Figure 9 SAP – Standard toolbar buttons

A. SAP ERP – CO Reports

The last practical part of the course will be creating
reports. The access to the transaction is as follows:
• to access costs and revenues at all levels of the
hierarchy (in the Profit Centre Accounting):
Accounting » Controlling » Profit Centre
Accounting » Information System » Select a report
according to requirements and needs (Fig. 10);

Figure 12 SAP – Report Selection - Internal Orders

Figure 10 SAP – Selection of statement in profit center accounting

• for costs at all levels of the hierarchy (in the Cost

Centre Accounting): Accounting » Controlling »
Cost Centre Accounting » Information System »
Cost Centre Accounting Reports » Select a report
according to requirements and needs (Fig. 11);
• for costs accounted on internal orders – both
statistical and actual: Accounting » Controlling »
Internal Orders » Information System » Reports for
Internal Orders » Select a report according to
Figure 13 SAP – Selection from the report tree
requirements and needs (Fig. 12);
• To select the required report type (output summary Profit Centre Accounting Reports show the profit centre
report): Acconting » Controlling » Cost Centre accounting as well as the original cost centre accountings
Accounting » Information System » Cost Centre (i.e. since for each cost centre there exists a profit centre
Accounting Reports » Report Tree menu in which with the same designation, which is above the cost centre;

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 in the profit centre accounting, accountings which were
originally posted in the area of Cost Centre are reflected
and displayed in the Profit Centre Accounting). Profit
Centre Accounting also reflects accountings on orders
assigned to the given profit centre. The most frequently
used report in the area of Profit Centre Accounting is the
report for displaying Actual individual postings (Fig. 14).
[2]
Figure 14 SAP – Profit center - actual individual items
Cost Centre Accounting Reports show cost centre
accountings. The most commonly used report in the Cost
Centre Accounting area is the report for displaying
Actual individual postings (Fig. 15).
Figure 15 SAP – Cost Center - Actual Individual Items
When you have finished selecting and/or entering all
necessary data for all reports, you need to click (single
click) the ´execute´ icon in the top toolbar of the window.
After completing the selection and formatting of the
report by the system, the required summary report will
appear on the screen in the selected variant, if not
changed in the basic variant. The displayed summary
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report can be modified according to the required criteria.
It is possible to use the icons from the user functions
toolbar to modify the summary report. [2]
In the SAP system, it is also possible to export the
report, for example, to Excel, which makes the work with
reports more accessible to more involved company
employees. We can choose to save the report in one of
two ways which can be accessed through the top bar of
the window:
a) System » List » Save » Local file
b) Report » Export » Local file
By clicking on Local file, the system offers a selection
window for the format in which the report is to be saved
(saving by clicking on the ´execute´ icon).
Then (in the last step) we select the output device,
number of copies and number of pages to be printed.
After entering all of the above values, we click on the
´execute´ icon. On the next screen, we click the
´Immediate´ button and the report will be printed on the
selected printer (Fig. 16). [2]
Figure 16 SAP – Print selected files
V. CONCLUSION
The presented paper points out the possibilities of
implementing innovative technologies in the teaching
process. Specifically, this is the application of the SAP
ERP information system to the teaching of the subject
Controlling the manufacturing company. They will be
able to work in SAP environment, namely SAP ERP
CO - module controlling, through theoretical
knowledge and practical experience, which students
gain during lectures and at the same time exercises.
This knowledge and skills will give students a new
dimension in their further development and
employment.
ACKNOWLEDGMENT
This article is a partial result of the KEGA 026
TUKE04/2018 project - Popularization of Industry 4.0 and
digitization enterprises problematic as a tool for increase
of technical knowledges and skills by students of
secondary school.
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