SAP01

SAP Overview
INSTRUCTOR HANDBOOK
INSTRUCTOR-LED TRAINING
.
Course Version: 0l0
Course Duralion: 2 days
Malerial Nunber: 50l08450
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About This Handbook
This handbook is intended to complement the instructor-led presentation of this course, and serve as a
source of reference. It is not suitable for self-study.
Typographic Conventions
American English is the standard used in this handbook.
The following typographic conventions are also used.
This information is displayed in the instructor’s presentation
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Contents
ix Course Overview
1 Unit 1: SAP Overview
2 Lesson: Identifying SAP Applications and Components
17 Unit 2: Navigation
18 Lesson: Accessing The SAP System
21 Exercise 1: Log On to the SAP System 10
minutes
26 Lesson: Personalizing the SAP Interface
38 Exercise 2: Create Favorites 10
minutes
41 Exercise 3: Personalize Your User Interface 10
minutes
43 Exercise 4: Use Navigation Options 10
minutes
55 Unit 3: System Wide Concepts
56 Lesson: Identifying Elements of SAP's Organizational Structure
62 Exercise 1: Display a Customer Master Record 10
minutes
75 Unit 4: Logistics
77 Lesson: Ordering Material
86 Exercise 1: Create a Purchase Order for Materials 10
minutes
89 Exercise 2: Create a Goods Receipt 10
minutes
94 Exercise 3: Process a Vendor Invoice 10
minutes
100 Lesson: Using Supplier Relationship Management
105 Lesson: Creating a Production Plan
110 Exercise 4: Create a Planned Order 10
minutes
115 Lesson: Processing Production Orders
121 Exercise 5: Create and Release a Production Order 10
minutes
125 Exercise 6: Confirm a Production Order and Goods Receipt 10
minutes
130 Lesson: Using Supply Chain Management
136 Lesson: Managing Sales Orders
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140 Exercise 7: Create a Sales Order 10
minutes
144 Lesson: Creating Delivery Process Documents
148 Exercise 8: Create a Delivery and Post a Goods Issue 10
minutes
154 Lesson: Creating Billing Documents
158 Exercise 9: Create a Sales Order Billing Document 10
minutes
161 Lesson: Using Customer Relationship Management
168 Lesson: Using Product Lifecycle Management
185 Unit 5: Financials
186 Lesson: Viewing Financial Processes
193 Lesson: Outbound Payments
196 Lesson: Analyze General Ledger accounting
200 Exercise 1: Create a Journal Entry 10
minutes
204 Lesson: Generating Financial Statements
208 Exercise 2: Generate a Financial Statement 10
minutes
212 Lesson: Monitoring Internal Costs
222 Exercise 3: Execute a Cost Center Report 10
minutes
225 Exercise 4: Execute a Profitability Analysis Report 10
minutes
231 Unit 6: Human Capital Management
232 Lesson: Viewing Components of Human Capital Management
250 Exercise 1: Hire an Employee 10
minutes
257 Unit 7: Analytics and Strategic Planning
258 Lesson: Executing Analytics and Strategic Planning Reports
266 Exercise 1: Create a Business Intelligence Report 10
minutes
273 Unit 8: SAP Services
274 Lesson: Accessing SAP Services
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Course Overview
TARGET AUDIENCE
This course is intended for the following audiences:
Ɣ
Developer IT Adminstrator IT Support
Ɣ
User End User
Ɣ
User Super Key Power User
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UNIT 1 SAP Overview
Lesson 1
Identifying SAP Applications and Components 2
UNIT OBJECTIVES
Ɣ
Identify SAP’s applications and components
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Unit 1
Lesson 1
2
Identifying SAP Applications and Components
LESSON OVERVIEW
After completing this lesson, you will be able to identify the basic applications and
components offered by SAP.
Business Example
You are responsible for deciding which applications and components your company will
implement, and you must be able to identify and explain the basic functionality of an
enterprise resource planning system. For this reason, you require basic knowledge of the
following:
Ɣ
Elements of an enterprise resource planning (ERP) system
Ɣ
SAP applications and components
Ɣ
Industry applications
Ɣ
SAP solutions for small and midsize companies
The lesson on the history of SAP has been removed from this course.
Course participants should know SAP is a global company. If students are interested in
details they can learn more by logging onto www.sap.com.
SAP is the abbreviation for System, Applications and Products in Data Processing. Link to
acronyms: http://wiki.sdn.sap.com/wiki/display/home/sap+acronyms
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Ɣ
Identify SAP’s applications and components
Elements of an ERP System
Most students are familiar with SAP’s products. Clarify that SAP ERP is the product following
R/3 and that SAP ERP is more then just R/3. SAP ERP combines SAP NetWeaver, SAP ECC
(the technical successor of R/3) and other components. All of the SAP product solutions use
components from the SAP ERP.
Enterprise Resource Planning (ERP) is an integrated computer-based system used to manage
internal and external resources, including tangible assets, financial resources, materials, and
human resources. The purpose of an ERP system is to facilitate the flow of information
between all business functions inside the boundaries of the organization. ERP also helps
manage the connections to employees and outside stakeholders such as customers,
partners, and suppliers. Built on a centralized database, and usually utilizing a common
computing platform, ERP systems consolidate all business operations into a uniform and
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enterprise-wide system environment. An ERP system can either reside on a centralized server
or be distributed across modular hardware and software units that provide "services" and
communicate on a local area network. The distributed design allows a business to assemble
modules from different vendors without the need for the placement of multiple copies of
complex and expensive computer systems in areas that will not use their full capacity.
SAP R/3 has a wide palette of standard, integrated functions. For example, for processes in
sales, shipping, or inventory management, data is automatically transferred to accounting.
SAP ECC is the evolutionary successor of SAP R/3 and is one of the main components of the
SAP ERP application.
SAP R/3 has been through a number of release cycles. For each new release, the functions
have been extended, applications have been optimized, and interfaces to other software
components have been enhanced. SAP R/3 was developed using ABAP, SAP's own
programming language.
Figure 1: From R/3 to ERP
Since the release of SAP R/3 Enterprise, changes and enhancements were integrated into the
SAP system first as extensions. Changes and enhancements are now integrated as
enhancement packages. This accelerates and simplifies the upgrade process and adaptation
to industry sectors.
SAP Applications and Components
It is important for students to be able to differentiate between an application and a
component. Explain the difference between an application and a component . Remember
that what used to be called "Solution" in this section is now an "Application". Suggestion:
Start a drawing on the board of the “SAP Business Suite” and continue to add to the drawing
as you speak to the following figures. This should be a short introduction into SAP
NetWeaver. The lesson on NetWeaver is no longer included in this course.
“IT practices” is the new term for SAP NetWeaver features and functions. They are then
broken down into “IT scenarios”.
Information of name changes and components:
New name Abbreviation Old Name
Lesson: Identifying SAP Applications and Components
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SAP NetWeaver Application
Server
SAP NetWeaver AS SAP Web Application
Server
SAP NetWeaver Portal SAP Enterprise Portal
SAP NetWeaver Business
Information Warehouse
SAP NetWeaver BW SAP Business Information
Warehouse
SAP NetWeaver Master
Data Management
SAP NetWeaver MDM SAP Master Data
Management
SAP NetWeaver Mobile SAP Mobile Infrastructure
SAP NetWeaver Process
Integration
SAP NetWeaver PI SAP Exchange
Infrastructure / SAP
NetWeaver Exchange
Infrastructure
SAP products consist of individual applications, which are available as an entire suite or
individually. Each application has its own focus area and provides functions to map this area
flexibly and comprehensively. All the applications are based on the SAP NetWeaver
technology platform. SAP NetWeaver is an integration and application platform that reduces
total cost of ownership across the entire IT landscape and supports the evolution of the SAP
Business Suite to a services-based architecture.
Definition of applications and components:
SAP applications SAP applications describe processes and functions from a process point
of view.
SAP components Components represent SAP's technical view of software and are the
technical building blocks for the system.
The flexibility and comprehensive integration and adaptation options offered by SAP software
results in high-performance, industry-specific, and cross-industry e-business applications.
SAP Solutions
Figure 2: Different Sizes - Different Products
SAP offers different solutions to help companies manage their growth. These solutions
provide the functionality required to increase operational efficiency, elevate customer service,
and boost innovation within an integrated system.
Unit 1: SAP Overview
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SAP Business Suite
Individually, SAP Business Suite applications help you manage your most critical business
processes. Collectively, they form a tightly integrated business application suite that adds
value to every facet of your organization and your external value chain (for example,
customers, suppliers, and partners).
Figure 3: SAP Business Suite
Consider drawing an overview to SAP as illustrated in these figures.
Figure I-1: SAP Business Suite.ppt
Lesson: Identifying SAP Applications and Components
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Figure I-2: SAP ECC.ppt
ERP is the core application of the Business Suite. It uses ABAP as its operational language.
ECC, or Enterprise Core Component, is the core of this area.
SAP Business Suite is a comprehensive group of business applications that allows companies
to manage their entire value chain and the most critical business processes in open,
integrated applications. These business applications provide users with consistent results
throughout the entire company network. SAP Business Suite consists of a number of different
products that enable cross-company processes. Customers, employees, suppliers and
partners are brought together to form one unit in a process.
SAP Solution Details
SAP solutions include the following:
SAP ERP Human
Capital Management
SAP ERP Human Capital Management (SAP ERP HCM) enables you
to utilize employees effectively toward the success of your company.
This solution covers all aspects of human resources, from
recruitment and training through payroll.
SAP ERP Financials The aim of SAP ERP Financials is to utilize a company's funds
effectively and, therefore, increase profitability in the long term.
SAP ERP Operations SAP ERP Operations provides an extensive operations solution for
automating and streamlining procurement and logistics execution,
product development and manufacturing, and sales and service.
SAP ERP Corporate
Services
SAP ERP Corporate Services introduces service solutions for travel
management, environment, health and safety, and real estate
management. It also addresses the development of efficient incentive
programs.
The core features and solutions of SAP ERP are enhanced and extended through the
following applications in the SAP Business Suite:
SAP Customer
Relationship
Management
Customer relationship management (CRM) is a company-wide
business strategy embracing all client-facing departments, and even
beyond. With CRM, people, processes, and technology work together
to increase profitability, and reduce operational costs.
Unit 1: SAP Overview
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SAP Product
Lifecycle
Management
Product lifecycle management (PLM) integrates people, data,
processes, and business systems and provides a product information
backbone for companies and their extended enterprise.
SAP Supply Chain
Management
Supply chain management (SCM) is the management of a network of
interconnected businesses involved in the ultimate provision of
product and service packages required by customers. SCM spans all
movement and storage of raw materials, work-in-process inventory,
and finished goods from point of origin to point of consumption.
SAP Supplier
Relationship
Management
Supplier relationship management (SRM) involves working with your
suppliers to maximize the potential value of those relationships.
SAP Solutions for Small Businesses and Medium Companies
Point out that Small to Medium Businesses have IT requirements that are not met by the SAP
Business Suite. For an SAP Business Suite implementation, solutions need to be as flexible
as possible and an implementation is usually time-consuming and cost-intensive. Small and
medium businesses often do not have sufficient financial means for such projects and their
requirements are usually less complicated. Small and medium businesses require integrated
processes on one database and cost-efficient pre-configured systems with low operating
costs.
Qualified SAP Business All-in-One packages from SAP partners are pre-configured, micro-
vertical industry solutions delivered by partners on a fixed-bid, fixed-scope, and short
implementation cycle. Target prospects are $40-$500M in revenue.
Qualified SAP Business All-in-One packages from SAP partners:
- Combines SAP Business Suite and SAP Best Practices templates with industry-specific
partner solutions and implementation services.
- Delivers 45 micro-vertical industry solutions via 20+ partners.
For customers who have limited budgets and vertical requirements that can be satisfied
through an available SAP All-in-One solution.
There is no lesson going into more details of these solutions for small and medium
businesses. It is up to you, but should of course depend on your participants, how much you
go into details here. The table should help you to position the different solutions (this table is
taken from an overview brochure available on SAP.com).
SAP Business One SAP Business
ByDesign
SAP Business All-in-
One
Summary of
Solution
Requirements
A single solution to
manage the entire
business
A complete, on-
demand business
solution that is
affordable,
predictable, and
easy to adopt.
A comprehensive,
extensible, and
customizable
business solution
with support for
industry-specific
requirements.
Lesson: Identifying SAP Applications and Components
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Challenges with
Current Solutions
Outgrown your
accounting-only
systems.
Replace your point
solutions, manual
processes, and
spreadsheets.
Outgrown your
point solutions or
legacy systems.
Nature of
Operations
Relatively
straightforward
business processes.
Lower transaction
volumes.
Moderately complex
business processes.
Moderate
transaction
volumes.
Deep, micro-vertical
and industry-
specific business
processes.
Demanding, high-
volume product,
manufacturing, and
service operations.
Typical
Organizational
Structure
Up to 5 locations
and independent
subsidiaries.
Multiple locations,
multiple divisions,
and independent
subsidiaries.
Multiple locations,
multiple divisions,
and all types of
subsidiaries.
IT Preferences Limited IT capability
with preference for
an on-premise
system.
Limited IT capability
with a preference
for an on-demand
solution.
IT capability with a
preference for an
on-premise
solution.
Typical Number of
Employees
Less than 100
employees.
100-500
employees.
100-2500
employees.
SAP Business All-in-One Solutions
SAP Business All-in-One solutions allow you to choose from industry-specific solutions,
qualified SAP partner solutions, or solutions created within the fast-start program.
Each SAP Business All-in-One solution is a prepackaged, industry-specific version of the SAP
Business Suite with built-in content, tools, and methodologies for a cost-effective, turnkey
implementation. SAP Business All-in-One solution partners offer out-of-the-box flexibility,
combined with the power of SAP's world-class business applications.
Figure 4: SAP Business All-in-One
Unit 1: SAP Overview
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SAP Business All-in-One Solutions Details
SAP Business All-in-One solutions include the following:
Solution Functionality
SAP ERP Effectively manage financials, human resources, operations,
and corporate services.
SAP Customer Relationship
Management (CRM)
Effectively manage all aspects of your customer relationships,
from marketing, to sales, to service.
SAP Business Analytics Gain insight and improve decision making with tools and
reports for financial and operational reporting.
SAP Best Practices Benefit from industry-specific configuration and business
processes based on SAP's experience in industries worldwide.
SAP NetWeaver technology
platform
Quickly and cost-effectively add on to your existing solution as
your business grows and your needs change.
If your company has deeper needs in specific process areas, SAP's complete portfolio of
business software can extend the functionality of your SAP Business All-in-One solution to
address other critical facets of your business
SAP Business ByDesign
SAP Business ByDesign is an adaptable, on-demand business offering designed specifically
for medium sized companies. It provides transparency and control over all your operations,
so you can immediately identify and respond to issues and opportunities. SAP Business
ByDesign is adaptable and allows you to meet new business requirements with minimal time,
effort, and cost.
With SAP Business ByDesign, SAP manages your software for you, so you can be confident
about a successful deployment and predictable operations, with minimal cost of ownership.
Figure 5: SAP Business ByDesign
Lesson: Identifying SAP Applications and Components
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Business ByDesign Details
Business ByDesign includes the following solutions:
Solution Functionality
Financials
Ɣ
Financial and management accounting
Ɣ
Cash flow management
Customer Relationship Management
Ɣ
Marketing
Ɣ
Sales
Ɣ
Service
Human Capital Management
Ɣ
Organizational management
Ɣ
Human resources
Ɣ
Employee self-service
Supply Chain Management
Ɣ
Supply chain setup management
Ɣ
Supply chain planning and control
Ɣ
Manufacturing, warehouse, and logistics
Supplier Relationship
Ɣ
Sourcing
Ɣ
Purchasing
Executive Management Support
Ɣ
Business performance management
Project Management
Ɣ
Management of projects
Compliance Management
Ɣ
Management of compliance
SAP Business One
SAP Business One is designed exclusively for small businesses. SAP Business One is a single,
affordable business management solution that integrates the entire business across
financials, sales, customers, and operations. With SAP Business One, small businesses can
streamline operations, obtain instant and complete information, and accelerate profitable
growth. Combined with additional industry-specific capabilities, SAP Business One can adapt
to your unique and fast-changing needs as your business grows.
Unit 1: SAP Overview
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Figure 6: SAP Business One
SAP Business One Details
SAP Business One provides the following advantages:
Rapid implementation
SAP Business One can be implemented within a few days and is easily maintained. Its familiar
Microsoft Office environment allows occasional users to rapidly learn to use the software. The
application is based on open technologies and can be readily extended with special functions.
Lower costs
SAP Business One is cost effective and offers a wide range of functions for integrated data
processing.
Increased productivity and cost control
The user interface of SAP Business One is simple and easy to understand and users will
quickly learn how to work with the system. This will increase productivity and help reduce
costs.
Sound business decisions
SAP Business One allows managers to quickly access strategic information from all
enterprise areas.
Scalability
When a company grows, processes usually become more complex and software
requirements change. SAP Business One's flexible and efficient system technology can easily
keep pace with the company's growth. SAP Business One can be extended by the functions
your company requires. It also facilitates the transition to a more comprehensive IT system,
such as SAP Business Suite.
Lesson: Identifying SAP Applications and Components
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SAP BusinessObjects
Figure 7: SAP BusinessObjects
The SAP BusinessObjects portfolio, from a product perspective, includes groups of
technologies and applications.
SAP BusinessObjects
Groups of technologies and applications include:
SAP BusinessObjects
enterprise information
management solutions
The primary focus of enterprise information management (EIM)
is on delivering trusted information to the organization, which is
used by a variety of applications and business users. “Turning
data into decision-quality information you can trust.”
SAP BusinessObjects
business intelligence
solutions
Business intelligence (BI) delivers integrated reporting
capabilities to business users for decision making. “Turning
information into insight for better decision making.”
SAP BusinessObjects
enterprise performance
management solutions
Enterprise performance management (EPM) builds on the other
areas, capturing and sharing information in a standard form.
“Using insight and informed decisions to drive strategy and
alignment.”
SAP BusinessObjects
governance, risk, and
compliance solutions
Governance, risk, and compliance (GRC) delivers a set of
applications to manage risk, ensure that internal and external
rules are followed and enforced, and control access to systems
and information. “Making risk and compliance part of decision-
making, strategy, and performance management."
Bringing together the SAP BusinessObjects portfolio with SAP’s business process platform
helps companies achieve closed-loop business performance optimization. Decisions can be
executed efficiently and effectively through industry-specific business processes. Process
changes required for optimization can be easily implemented by combining process
components on the platform. Execution can be monitored, and business events responded to,
in real time across the business network. The power the full SAP portfolio, including the SAP
BusinessObjects portfolio, brings together the world of making decisions and the world of
executing them.
Unit 1: SAP Overview
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Industry Applications
SAP also offers industry-specific applications, which perform targeted, industry-specific
business functions and processes. Many industries require solutions that are specially
bundled and enriched with additional industry-specific functions and processes. SAP fulfills
this requirement through the solution portfolios for industries.
Figure 8: Industry Packages
Industry Application Details
Industry offerings for more then 20 industries are available and include the following
industries:
Automotive SAP for Automotive is designed to streamline and improve disjointed
business practices, enabling you to closely manage many-tiered
networks of customers, suppliers, and partners.
Banking SAP for Banking is based on a flexible, scalable infrastructure and
provides a robust environment for incorporating new technologies,
controlling core banking processes, and extending operations to the
Internet.
Chemicals SAP for Chemicals delivers capabilities for sales and operations
planning, quality management, recipe and batch management, and
supply chain operations.
Healthcare SAP for Healthcare integrates your healthcare processes, from staffing
and inventory to financials and patient-centric processes, on an open
platform designed for growth.
Transportation &
Logistics
SAP for Travel & Logistics handles all order volumes and supports
complex business processes in procurement, fulfillment, returns
management, warehousing, and value-added logistics.
Mining SAP for Mining enables you to meet the specific challenges of the
mining industry by helping you manage your assets and operations and
leverage global supply chain networks. As a result, you can increase
efficiency and reduce costs.
Oil & Gas SAP for Oil & Gas solutions provide comprehensive tools that enable
you to leverage key data, manage assets effectively, and maximize cash
flow.
Lesson: Identifying SAP Applications and Components
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Public Sector SAP for Public Sector creates fast, flexible, and responsive e-
government by electronically connecting public administrations with
citizens, businesses, suppliers, and other organizations via the Internet.
This enhances communications, streamlines services, and reduces
costs.
Retail SAP for Retail provides a comprehensive solution where every piece of
your retail value chain, from forecasting and planning to allocation and
replenishment, must be focused on meeting and surpassing customer
expectations.
SAP Applications and Components
FACILITATED DISCUSSION
Pose specific business scenarios and ask how the lesson information applies.
FACILITATED DISCUSSION
Can an application share a component with another solution?
LESSON SUMMARY
You should now be able to:
Ɣ
Identify SAP’s applications and components
Unit 1: SAP Overview
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Unit 1
13
Learning Assessment
1. SAP is a solutions company.
Determine whether this statement is true or false.
X
True
X
False
2. List at least three cross-industry or industry applications.
3. All SAP applications are role-based.
Determine whether this statement is true or false.
X
True
X
False
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Unit 1
14
Learning Assessment- Answers
1. SAP is a solutions company.
Determine whether this statement is true or false.
X
True
X
False
Business experience, strategy, and know-how are intangibles, which, bundled together
with the vast flexibility, integration, and customizing potential of SAP software, have
resulted in more powerful e-business solutions within specific industries and across
industry borders.
2. List at least three cross-industry or industry applications.
Cross-industry applications: SAP Enterprise Portal, SAP CRM, SAP SCM, SAP SRM, SAP
PLM, SAP ERP HCM, SAP ERP Financials
Industry packages: SAP for Aerospace & Defense, SAP for Automotive, SAP for Banking,
SAP for Chemicals, SAP for Consumer Products, SAP for Engineering, Construction &
Operations, SAP for Healthcare, SAP for High Tech, SAP for Higher Education & Research,
SAP for Insurance, SAP for Media, SAP for Mill Products, SAP for Mining, SAP for Oil &
Gas, SAP for Public Sector, SAP for Retail, SAP for Telecommunications, SAP for Utilities.
3. All SAP applications are role-based.
Determine whether this statement is true or false.
X
True
X
False
The SAP NetWeaver Portal lets you customize your interface so that you can perform
tasks associated with your role.
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UNIT 2 Navigation
Lesson 1
Accessing The SAP System 18
Exercise 1: Log On to the SAP System 21
Lesson 2
Personalizing the SAP Interface 26
Exercise 2: Create Favorites 38
Exercise 3: Personalize Your User Interface 41
Exercise 4: Use Navigation Options 43
UNIT OBJECTIVES
Ɣ
Log On to the SAP system
Ɣ
Use the SAP interface
Ɣ
Navigate in the SAP system
Ɣ
Find help from the SAP Easy Access Screen
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Unit 2
Lesson 1
16
Accessing The SAP System
LESSON OVERVIEW
This lesson shows you how to log on to an SAP system using the SAP Logon.
For many of the students, this lesson will be the first exposure to the SAP GUI. You may want
to complete the exercise with the students ensuring each student is able to successfully
logon to the correct the server.
The actual logon procedure and how to add an entry in the SAP Logon is different in each
country and training location.
Business Example
To access the SAP system, you must familiarize yourself with the logon process and related
screens. For this reason, you require the following knowledge:
Ɣ
A good understanding of the logon process
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Ɣ
Log On to the SAP system
Log On to the SAP System
The SAP Graphical User Interface (SAP GUI) is the general front-end program used to access
SAP systems. Several variants of the SAP GUI are available and are adapted for use in
different environments. In this lesson, we refer to the SAP GUI for the Windows environment.
The SAP GUI program connects the front-end computer with a specific SAP system. To start
the SAP GUI, SAP provides another program: SAP Logon. When the user launches SAP
Logon, a window displays a list of available SAP systems. This list is derived from a file on the
front-end computer, and is usually preconfigured and made available to users.
Figure 9: The SAP Logon Program
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Establish that SAP is a client system. Define the client within SAP as a separate entity with its
own master data, configuration, transactions, and databases.
Before you log on for the first time, your system administrator will give you an initial
password. During the process of logging on, you enter a new password--one that you alone
will know. You will use your own password whenever you log on.
Note:
These procedures may differ somewhat at your company. For more information,
contact your system administrator.
The Logon Screen
Figure 10: Logging On to an SAP System
If there are system-wide messages, the System Messages dialog box appears. After you have
read the messages, choose Continue (or press Enter) to close the dialog box.
How to Log On to the SAP System
How to access the SAP system.
1. Choose <<your training system>> in the SAP Logon window.
2. Choose Log on.
3. Enter <<your client>>.
This is 800 if you use the instructor training system,or the client that was assigned to your
class if you use the participant system.
4. Enter <<your user ID>>
5. Enter <<your password>>.
6. Enter the language.
7.
Choose Enter.
The SAP Easy Access screen displays.
Lesson: Accessing The SAP System
© Copyright . All rights reserved. 19
Explain to the participants that they may be prompted to change their password.
Unit 2: Navigation
20 © Copyright . All rights reserved.
Unit 2
Exercise 1
Log On to the SAP System
Business Example
To perform your daily business transactions, you must log on to the SAP system.
Every SAP subsidiary and every SAP training center works differently. In Germany, for
example, the participants have a direct shortcut to the assigned training system in the
Windows menu. In other countries, the participants have to maintain an entry in the SAP
logon.Depending on the GUI version and the office connection, this is done in different ways.
Please explain this to the participants and guide them through this first part.
Caution:
This exercise depends on your location.The details may be different, depending
on local settings, installations,the connection to SAP systems, and if the training
is at an SAP facility or on site. Your instructor will explain the proper logon
procedure.
Create a logon entry and access the appropriate system with the client, user ID, and password
provided by the instructor.
1. Create an entry in the SAP GUI logon screen, based on the information provided by the
instructor.
Field Entry
Your SAP Training System Provided by your instructor
Message Server Your instructor will tell you if this is required
SAP Router Your instructor will tell you if this is required
User Provided by your instructor
Password Provided by your instructor
Client Provided by your instructor
Language Provided by your instructor
New Password Create a new password of your choice
2. Use your logon entry to gain access to the SAP system with the information provided.
© Copyright . All rights reserved. 21
Unit 2
Solution 1
Log On to the SAP System
Business Example
To perform your daily business transactions, you must log on to the SAP system.
Every SAP subsidiary and every SAP training center works differently. In Germany, for
example, the participants have a direct shortcut to the assigned training system in the
Windows menu. In other countries, the participants have to maintain an entry in the SAP
logon.Depending on the GUI version and the office connection, this is done in different ways.
Please explain this to the participants and guide them through this first part.
Caution:
This exercise depends on your location.The details may be different, depending
on local settings, installations,the connection to SAP systems, and if the training
is at an SAP facility or on site. Your instructor will explain the proper logon
procedure.
Create a logon entry and access the appropriate system with the client, user ID, and password
provided by the instructor.
1. Create an entry in the SAP GUI logon screen, based on the information provided by the
instructor.
Field Entry
Your SAP Training System Provided by your instructor
Message Server Your instructor will tell you if this is required
SAP Router Your instructor will tell you if this is required
User Provided by your instructor
Password Provided by your instructor
Client Provided by your instructor
Language Provided by your instructor
New Password Create a new password of your choice
a) Locate the SAP Logon program on your desktop.
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Note:
There are a variety of ways to find the program and a variety of places it
could reside on your desktop. These variables depend on how the GUI
software was installed.
b)
Choose New .
c) Enter <<Your SAP Training System>> in the Search for field.
d) Select the system ID (SID) from the list presented.
e) Select Next .
f) Under Group / Server, select Public. If Public is not available, select Space.
g) The system will display a list of defined server groups for your training system. Select
the Public group if it is available. If Public is not available, select Space.
h) Select Next twice.
i) Select Finish.
Note:
If desired, you can enter a different system name for this system.
The new logon entry appears in the list of SAP systems.
2. Use your logon entry to gain access to the SAP system with the information provided.
a) From the SAP logon pad, select the system provided by the instructor.
b) Choose Log on.
c) Enter the Client: <<to be provided by the instructor>>.
d) Enter the Password: <<to be provided by the instructor>>.
e) Enter the Language: <<to be provided by the instructor>>.
f)
Choose Enter .
Note:
You might be asked to change your password. If so, continue with the
following steps. If you are not asked, skip to solution step j.
g) In the password change dialog box, enter your own new password in the New Password
field.
h) Enter your password again, in the Repeat Password field, to confirm the password
change.
i)
Choose Enter .
© Copyright . All rights reserved. 23
j) Choose Enter as many times as needed, reading any system messages that are
displayed, until you are returned to the SAP Easy Access screen.
24 © Copyright . All rights reserved.
LESSON SUMMARY
You should now be able to:
Ɣ
Log On to the SAP system
Lesson: Accessing The SAP System
© Copyright . All rights reserved. 25
Unit 2
Lesson 2
22
Personalizing the SAP Interface
LESSON OVERVIEW
This lesson shows you how to efficiently work in the SAP system by personalizing your
screens and using different navigation options.
Business Example
To efficiently use the SAP system, you must be able to navigate the screens and utilize the
various options available. For this reason, you require the following knowledge:
Ɣ
A clear understanding of screen structure elements
Ɣ
How to create a personal favorites list of transactions
Ɣ
How to personalize screens
Ɣ
How to navigate various screens
Ɣ
How to find help
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Ɣ
Use the SAP interface
Ɣ
Navigate in the SAP system
Ɣ
Find help from the SAP Easy Access Screen
Screen Structure Elements
In this section, you will familiarize the participants with the layout of the SAP Easy Access
screen. Explain that the SAP Easy Access screen is the system default screen after logging
on. This default can be changed to any desired start transaction using Extras -> Set start
transaction.
The main focus of this lesson is to explain how to navigate within the system. Ensure that
participants are comfortable with the overall layout and navigation before moving on. If you
have participants who are interested in a specific application area , you can prepare and use
demonstrations that are more suitable for your audience.
From Col.92 on, the participants and the instructors have an assigned user menu (this is
centrally created and assigned to SAP01-INS-XX and the template user SAP01-99).
The SAP Easy Access screen is the initial default screen in SAP systems.
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Figure 11: SAP Easy Access
The left side of the screen contains a tree hierarchy of the available menus. The graphic on the
right side is made available centrally by your system administrator and cannot be customized
by individual users. The graphic could, for example, be the company's logo.
SAP Screen Structure
Figure 12: Screen Structure
Please note that the figure is a combination of screens and does not exist as you see it in the
system. Two system releases were used for this screen shot, an 6.0 system for the main
screen and a 5.0 system for the small radio button part.
An SAP screen can contain the following screen elements:
Command field You can start applications directly by entering the transaction code in the
command field. You can find the transaction code for an application
either in the Overview menu on the SAP Easy Access screen, in the status
bar, or in the application itself under System-> Status .
Lesson: Personalizing the SAP Interface
© Copyright . All rights reserved. 27
Menu bar The menu bar is the top line of any primary window in the SAP system.
The menu displayed depends on the application you are using.
Standard toolbar The buttons in the standard toolbar are shown on every SAP screen. If
certain buttons are not available in an application, they are deactivated
(greyed out). If you mouse over a button, the system displays a flag with
the name or function of that button.
Title bar The title bar displays the name of the function that you are currently
using.
Application
toolbar
The application toolbar shows the buttons available in the application you
are currently using.
Check boxes Check boxes allow you to select several options from a group of fields.
Radio buttons Only one radio button option may be selected.
Tab A tab page allows you to organize several screen areas to improve clarity
and organize data.
Status bar The status bar displays information on the current system status, such as
warnings and errors. You can also change the display variant to show, for
example, the transaction code of the transaction you are currently using.
Other elements Other elements include input fields and buttons.
Role-Based User Menus
Explain that role-based menus allow for limiting the wide range of functionality provided by
SAP solutions to those required by the specific user according to the assigned role. Point out
that when a user is assigned a role, they are assigned not only the menu, but also the
authorizations they require to access the information.
SAP currently delivers over 1200 predefined roles.
SAP offers two formats to display a menu of transactions, reports, or Web-based applications
to the user.
Menu formats include the following:
SAP standard menu This is a complete list of all possible transactions and reports offered
by the system.
Role-based user
menu
This is a collection of activities used in business scenarios. Users can
access transactions, reports, or Web-based applications through their
role-based menus.
Unit 2: Navigation
28 © Copyright . All rights reserved.
Figure 13: Role-Based User Menus
Users are assigned the role menu and the authorizations associated with the role.
Authorizations control access to the specific activities required to perform the job function.
The system administrator can tailor role-based menus to specific job requirements by adding
or removing menu entries.
Caution:
As a system administrator, you may be responsible for setting up role-based
menus, which are then transferred to the front end. Therefore, keep roles as
small as possible, since large roles could take a long time to transfer to the front
end.
Favorites
Examples of items that can be added to a favorites list include the following:
Ɣ
Transactions
Ɣ
Links to files
Ɣ
Internet addresses
Hint:
Favorites can be organized into folders, and you can edit your favorites in the
SAP Easy Access screen using the Favorites menu.
Lesson: Personalizing the SAP Interface
© Copyright . All rights reserved. 29
Figure 14: Favorites Menu
The favorites list, which is initially empty, can be edited according to your preferences. Only
you can view your favorites list.
How to Create a Favorite Transaction
How to create a favorites entry using the transaction for posting incoming payments in
accounts receivable.
1. From the SAP Easy Access screen, choose Accounting -> Financial Accounting -> Accounts
Receivable -> Document Entry .
2. Choose Incoming Payments.
3. Choose Favorites -> Add .
4. Choose the transaction.
Control Your User Interface
You have several personalization options available to help you set up your working
environment.
Some of the personalization options are as follows:
Ɣ
Change the layout of the SAP Easy Access screen.
Ɣ
Track your input history to provide input help.
Ɣ
Display status messages in a dialog box instead of on the status bar.
Ɣ
Set preferences to determine how data is displayed.
Ɣ
Adjust the color and behavior of the screens and fields.
Status Bar
The status bar provides general information on the SAP system and the transaction or task on
which you are working. System messages are displayed on the left side of the status bar, and
system information is displayed on the right side.
Unit 2: Navigation
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Figure 15: Status Bar
Discuss and demonstrate the location of the different types of information available on the
status bar. Explain the difference between the following types of system messages:
informational, warning, and error.
The following information can be displayed in the status bar:
Ɣ
System
Ɣ
Client
Ɣ
User
Ɣ
Program
Ɣ
Transaction
Ɣ
Response time
To hide the information status fields, choose the arrow to the left of the fields.
How to Personalize Your User Interface
Use this demonstration to show the participants several of the many personalization options
available in the SAP system, such as how to customize the local layout and the user profile.
1. Choose System-> User profile -> Own data .
Provide a general description of the information that the user can maintain with for their user
profile.
From the standard toolbar, choose Customizing of local layout, under Options -> Visual
Design. You also have the option to change the font size on your SAP GUI screen. You will
need to log out and log back on to the system again before your changes to the settings will
take effect.
Choose Defaults tab.
Review the different settings the user can make from the Defaults tab. This is especially
helpful for people who may want to change their date, decimal or currency formats.
Lesson: Personalizing the SAP Interface
© Copyright . All rights reserved. 31
Close the Maintain User Profile window. Choose the Customizing of local layout button .
In this demonstration, show participants the personalization available under Options . Point
out that there are other opportunities for further personalization using the other menu items.
Choose Options .
Take some time explaining the different options the user can set. For example:
Ɣ
Set the error, information, and warning messages to display in a dialog box.
Ɣ
Explain that the cursor can be modified.
Multiple Sessions
The SAP system tracks multiple logons. The primary reasons for tracking multiple logons are
security and licensing. If the same user logs on more than once, the system displays a
warning message. for each subsequent logon.
Warning messages include the following options:
Ɣ
Continue with this logon and end any other logons of this user in the system.
Ɣ
Continue with this logon without ending any other logons in the system (this is tracked).
Ɣ
Terminate this logon.
You should only be logged on once per SAP system. Using multiple sessions allows you to
open several windows at the same time on the same computer.
Figure 16: Multiple Sessions
The user can create a new session at any time. This is helpful if you are in the middle of a
transaction and need to verify information to complete the transaction. You can create
several sessions, each independent of the others. You will not lose any data in sessions that
are already open. For example, closing the first session does not cause the other sessions to
close.
Too many open sessions can result in slower system performance. Your system
administrator may limit the number of sessions users can create.
Before you end a session, save any data you want to keep.
Unit 2: Navigation
32 © Copyright . All rights reserved.
Hint:
The system does not prompt you to save your data when you end a session.
Navigation
Introduce the participants to the three basic options for navigating in the system. At this
point, touch on them very briefly because each is covered in more detail as we progress
through this lesson.
Explain navigation in SAP systems using the SAP standard menu, the menu bar and the
command field (transaction codes). Point out that transaction codes can be found by
selecting System -> Status .
The following options are available when navigating in the SAP system:
Navigation in the SAP system includes the following:
Ɣ
Enter transaction codes in the command field.
Ɣ
Choose items from menus in the menu
Ɣ
Choose items from the favorites list.
Ɣ
Choose from the role-based user menu.
Figure 17: Navigation Options
Menus allow you to find a specific transaction when you do not know the transaction code.
The menu is organized according to the task you are performing in the SAP system. Menus
are drop-down lists; therefore, when you choose a menu item, further options appear.
Transaction Codes
Participants frequently ask about transaction code lists. You may want to mention a simple
method for administrators to create their own lists of transaction codes: select the entries
required for the list from the table TSTCT and save them in Excel. The easiest way of doing
this is to use the functions System -> List -> Save -> Local file . Users do not need to create
Lesson: Personalizing the SAP Interface
© Copyright . All rights reserved. 33
transaction code lists in this way since they have their role-based menus and usually lack the
authorizations to do so.
Every transaction or function in the system has a transaction code. You can enter the
transaction code in the command field to initiate the transaction or function. This is
convenient, provided you know the transaction code for the required transaction or function.
You can find the transaction code by first navigating to a transaction, and then choosing
System -> Status .
The following entries are time-saving tips for using transaction codes:
Entry in the Command Field Result
/n Cancels the current transaction
/nXXXX Initiates the specified transaction directly
from another transaction
/o Displays an overview of sessions
/oXXXX Initiates the specified transaction in a new
session
/nend Ends the logon session with a confirmation
dialog box
/nex Ends the logon session without a
confirmation dialog box
/i Deletes your current session
How to Use Transaction Codes
How to use transaction codes and the command field.
Hint:
Show the different possibilities of how to find a transaction code by:
-Choosing System Status (when the transaction is already on the screen).
- Choosing Extras Technical details (from the SAP Easy Access).
- Activating the display of the transaction in the status bar.
- Activating the display of the transaction in the SAP menu or user menu by
choosing Extras Settings and then choosing Display technical names.
In the detailed description of this demonstration, only the first system status is
explained.
1. Navigate to the transaction from the SAP Easy Access screen and choose Human
Resources -> Personnel Management -> Administration -> HR Master Data.
2. Choose Maintain.
3. Choose System -> Status .
Point out where to locate the transaction code, which is PA30.
Unit 2: Navigation
34 © Copyright . All rights reserved.
4. Return to the SAP Easy Access screen.
5. Enter PA30 in the Command field.
6. Press Enter.
The Maintain HR Master Data screen is displayed.
Help Features
Point out that the Help menu is available on the menu bar of every screen.
The SAP system provides comprehensive online help, which is available from any screen in
the system.
The help menu contains the following options:
Application help Application help displays comprehensive help for the application
currently opened on your screen.
SAP Library SAP Library contains online documentation.
Glossary You can search for definitions of terms in the glossary.
Release notes Release notes describe functional changes that occur between SAP
system releases.
SAP Service
Marketplace
A user ID and a password are required to access the SAP Service
Marketplace.
Create Support
Message
With support messages, you can directly contact the responsible
solution manager support unit from your SAP system.
Settings You can select settings for help (for example, how you would like F1
and F4 help to be displayed).
Figure 18: Getting Help
Lesson: Personalizing the SAP Interface
© Copyright . All rights reserved. 35
Field Help
F1 is used to find help on fields, menus, functions, and messages. F1 help also provides
technical information on the relevant field (for example, the parameter ID and the technical
name of the field).
Figure 19: Field Help: F1
F4 Help
F4 is used to find information on the possible values that can be entered in the field. You can
access F4 help for a selected field by choosing the button immediately to the right of that
field, or by selecting the F4 key.
Figure 20: Field Help: F4
How to Find Field-Level Help
How to find the field-level help (F1 and F4).
1. Access the Customer Master Display transaction. From the SAP Easy Access screen,
choose Accounting -> Financial Accounting -> Accounts Receivable -> Master Records ->
Display .
Unit 2: Navigation
36 © Copyright . All rights reserved.
2. Place the cursor on the Customer field and select F1.
3. Choose Technical info.
Point out the technical information available for that particular field.
4. Close the F1 help again, make sure that the cursor is placed on the Customer field, and
select F4. Select the Customers (by company code) tab. Enter Company code 1000 and
Name Customer*. Choose Start search .
Demonstrate the use of the search functionality, how to sort the list, and how to reduce the
entries (by specifying more detailed search terms).
Lesson: Personalizing the SAP Interface
© Copyright . All rights reserved. 37
Unit 2
Exercise 2
Create Favorites
Business Example
You have specific transactions, files, and Web sites that you use frequently. To facilitate
access, you must create entries in your Favorites folder.
Create Favorite Transactions
Create a variety of favorite transactions that will appear in the Favorites menu on your SAP
Easy Access screen.
1. Create a favorite for the transaction to post an incoming payment in accounts receivable.
This is transaction code F-28.
2. Create a favorite for the transaction to display a customer (centrally) in Sales and
Distribution. This is transaction code XD03.
3. Create a favorite for the transaction to maintain master data in human resources. This is
transaction code PA30.
38 © Copyright . All rights reserved.
Unit 2
Solution 2
Create Favorites
Business Example
You have specific transactions, files, and Web sites that you use frequently. To facilitate
access, you must create entries in your Favorites folder.
Create Favorite Transactions
Create a variety of favorite transactions that will appear in the Favorites menu on your SAP
Easy Access screen.
1. Create a favorite for the transaction to post an incoming payment in accounts receivable.
This is transaction code F-28.
a) From the SAP Easy Access screen, choose Accounting -> Financial Accounting ->
Accounts Receivable -> Document Entry .
b)
Choose Incoming Payments .
Caution:
Do not double-click Incoming Payment. You want to highlight the menu
item, not initiate the transaction.
This menu path is at the top of your window. You can also choose Add to
Favorites .
c) Choose Favorites -> Add .
2. Create a favorite for the transaction to display a customer (centrally) in Sales and
Distribution. This is transaction code XD03.
a) From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> Master
Data -> Business Partners -> Customer -> Display .
b)
Choose Complete .
Caution:
Do not double-click Complete. You want to highlight the menu item, not
initiate the transaction.
c) Choose Favorites -> Add .
Hint:
This menu path is at the top of your window. You can also choose Add to
Favorites .
© Copyright . All rights reserved. 39
3. Create a favorite for the transaction to maintain master data in human resources. This is
transaction code PA30.
a) From the SAP Easy Access screen, choose Human Resources -> Personnel
Management -> Administration -> HR Master Data .
b)
Choose Maintain .
Caution:
Do not double-click Maintain. You want to highlight the menu item, not
initiate the transaction.
c) Choose Favorites -> Add .
40 © Copyright . All rights reserved.
Unit 2
Exercise 3
Personalize Your User Interface
You are a new user of the SAP system and would like to personalize your user interface to
facilitate navigation. For this reason, you must make adjustments to the local layout of your
screen.
1. You would like system and error messages to appear in a dialog box instead of on the
status bar.
2. Change the display of the date and currency format.
© Copyright . All rights reserved. 41
Unit 2
Solution 3
Personalize Your User Interface
You are a new user of the SAP system and would like to personalize your user interface to
facilitate navigation. For this reason, you must make adjustments to the local layout of your
screen.
1. You would like system and error messages to appear in a dialog box instead of on the
status bar.
a) From the SAP Easy Access screen, navigate to the standard toolbar and choose
Customize Local Layout .
b) Choose Options
c) Choose Interaction Design
d) Choose Notifications
e) In the Messages area of the screen, select:
Ɣ
Show success messages in a dialog box
Ɣ
Show warning messages in a dialog box
Ɣ
Show error messages in a dialog box
f) Choose Apply .
g) Choose OK .
2. Change the display of the date and currency format.
a) From the SAP Easy Access screen, navigate to the main menu bar and choose System-
> User profile -> Own data .
The Maintain User Profile screen opens in a new window.
b) Choose the Defaults tab.
c) Change the decimal notation and date to the format of your choice.
d)
Choose Save .
42 © Copyright . All rights reserved.
Unit 2
Exercise 4
Use Navigation Options
Execute Transaction Codes
You are new to SAP and need to familiarize yourself with transaction codes. For this reason,
you execute a few transaction codes using the command field.
1. Execute the transaction codes in the table and record each activity in the space provided.
Do not return to the SAP Easy Access screen after viewing each transaction code.
Hint:
If you log out, please log back on to the system.
Entry in the Command Field Result
su3
sm04
/nsm04
/nend
Navigate to Find Transaction codes
You are new to SAP and would like to familiarize yourself with transaction codes using the
folders in the SAP Easy Access screen. To do this, you navigate the folders in the SAP Easy
Access screen to find transaction codes.
1. Display a list of users who are logged on to the system.
2. Display the transaction code for this transaction using the System status menu.
3. Return to the SAP Easy Access screen and use the transaction code to initiate the
transaction to display the user overview, which provides a list of users who are logged on
to the system.
© Copyright . All rights reserved. 43
Unit 2
Solution 4
Use Navigation Options
Execute Transaction Codes
You are new to SAP and need to familiarize yourself with transaction codes. For this reason,
you execute a few transaction codes using the command field.
1. Execute the transaction codes in the table and record each activity in the space provided.
Do not return to the SAP Easy Access screen after viewing each transaction code.
Hint:
If you log out, please log back on to the system.
Entry in the Command Field Result
su3
sm04
/nsm04
/nend
a) From the SAP Easy Access screen, enter transaction code su3 in the command field
and choose nter.
b) Record the name of the transaction in the result section of the table below.
c) From the screen displayed using transaction code su3, enter SM04 in the command
field and record the result.
d) From the screen displayed using transaction code sm04 , enter /nsm04 and record the
result.
e) From the screen displayed using transaction code /nsm04, enter /nend and record the
result.
Entry in the Command Field Result
su3 Initiates the screen for maintaining your
own user settings.
sm04 Does not initiate a transaction. A
transaction can only be started directly
from the SAP Easy Access screen, unless
you use a prefix.
44 © Copyright . All rights reserved.
Entry in the Command Field Result
/nsm04 Initiates the user overview successfully. /
n first ends the active transaction and
then initiates the specified transaction.
/nend A logoff confirmation dialog box appears.
You can now exit the system.
Navigate to Find Transaction codes
You are new to SAP and would like to familiarize yourself with transaction codes using the
folders in the SAP Easy Access screen. To do this, you navigate the folders in the SAP Easy
Access screen to find transaction codes.
1. Display a list of users who are logged on to the system.
a) From the SAP Easy Access screen, choose Tools -> Administration -> Monitor ->
System Monitoring -> User Overview .
2. Display the transaction code for this transaction using the System status menu.
a) Double-click User Overview.
b) Choose System-> Status.
c) Locate the transaction code, which is SM04.
3. Return to the SAP Easy Access screen and use the transaction code to initiate the
transaction to display the user overview, which provides a list of users who are logged on
to the system.
a)
Close the System Status dialog box by choosing Cancel .
b)
Exit out of the User List by choosing Back .
c) Enter sm04 in the command field.
d)
Choose Enter .
e)
Choose Exit to exit the screen and return to the SAP Easy Access menu.
© Copyright . All rights reserved. 45
LESSON SUMMARY
You should now be able to:
Ɣ
Use the SAP interface
Ɣ
Navigate in the SAP system
Ɣ
Find help from the SAP Easy Access Screen
Unit 2: Navigation
46 © Copyright . All rights reserved.
Unit 2
41
Learning Assessment
1. Which of the following are required to log on to the SAP system?
Choose the correct answers.
X
A Enter a specific client number
X
B Enter your user ID
X
C Enter your password
X
D Customize your settings
X
E Set your language preference
2. You can only have one SAP system session open at a time.
Determine whether this statement is true or false.
X
True
X
False
3. What menus are standard on all SAP screens?
Choose the correct answers.
X
A System
X
B Help
X
C Information
X
D Environment
4. Which of the following provides general information on the SAP system and transaction or
task on which you are working?
Choose the correct answer.
X
A Status bar
X
B Menu path
X
C Role bar
X
D Application toolbar
© Copyright . All rights reserved. 47
5. In the SAP Easy Access menu, you can create a favorites list containing:
Choose the correct answers.
X
A Web addresses
X
B Transactions
X
C Links to files
X
D Language preferences
X
E Attachments
6. Select all of the following entries that are valid in the command field. If you are uncertain,
try them on the system before you select the correct answers.
Choose the correct answers.
X
A /nend
X
B /nex
X
C ?sm04
X
D /nsm04
X
E sm04
7. You have navigated to a transaction you have never used before and would like to learn
more about the transaction before completing it. Which of the following forms of help
would most efficiently provide the information you are looking for?
Choose the correct answers.
X
A F1
X
B F4
X
C Application help
X
D SAP Library
X
E Glossary
X
F Release notes
8. List and describe three different types of online help that are available in the SAP system.
Unit 2: Learning Assessment
48 © Copyright . All rights reserved.
9. You would like to preset a value for a field that you have to enter frequently. To do this, you
need the parameter ID. Which help function would you use to locate the parameter ID
when you are on the field?
Choose the correct answers.
X
A F1
X
B F4
X
C System help
X
D F11
X
E Application help
10. Application help, which is available through the Help menu, is context-sensitive. This
means that it will link you directly to the help for whatever application area of the system
you are currently working in.
Determine whether this statement is true or false.
X
True
X
False
Unit 2: Learning Assessment
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Unit 2
44
Learning Assessment- Answers
1. Which of the following are required to log on to the SAP system?
Choose the correct answers.
X
A Enter a specific client number
X
B Enter your user ID
X
C Enter your password
X
D Customize your settings
X
E Set your language preference
That is correct. You do not customize your settings or set the language preference until
you are already logged on to the SAP system.
2. You can only have one SAP system session open at a time.
Determine whether this statement is true or false.
X
True
X
False
That is correct. You can create up to 16 sessions. Each session is independent of the
others.
3. What menus are standard on all SAP screens?
Choose the correct answers.
X
A System
X
B Help
X
C Information
X
D Environment
That is correct. The System menu contains functions that affect the system as a whole,
such as Create session, User profile, and Log off. The Help menu provides various forms of
online help.
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4. Which of the following provides general information on the SAP system and transaction or
task on which you are working?
Choose the correct answer.
X
A Status bar
X
B Menu path
X
C Role bar
X
D Application toolbar
That is correct. The status bar contains information on system messages, as well as
system information such as client, user, transaction codes, and response time.
5. In the SAP Easy Access menu, you can create a favorites list containing:
Choose the correct answers.
X
A Web addresses
X
B Transactions
X
C Links to files
X
D Language preferences
X
E Attachments
That is correct. Favorites can consist of Web links, standard and customer transaction
codes, and links to other files such as Microsoft Word documents or PowerPoint files.
6. Select all of the following entries that are valid in the command field. If you are uncertain,
try them on the system before you select the correct answers.
Choose the correct answers.
X
A /nend
X
B /nex
X
C ?sm04
X
D /nsm04
X
E sm04
You can enter any valid transaction code directly on the SAP Easy Access screen. If you
are in another screen,you need to enter /n in front of the transaction code for the
transaction code to work. /nend and /nex are two different logoff options. ?sm04 is not a
valid entry.
Unit 2: Learning Assessment- Answers
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7. You have navigated to a transaction you have never used before and would like to learn
more about the transaction before completing it. Which of the following forms of help
would most efficiently provide the information you are looking for?
Choose the correct answers.
X
A F1
X
B F4
X
C Application help
X
D SAP Library
X
E Glossary
X
F Release notes
Although you could locate the information in the SAP Library, the most efficient method is
the application help because it is context-sensitive.Here you will find comprehensive
information about the application.
8. List and describe three different types of online help that are available in the SAP system.
9. You would like to preset a value for a field that you have to enter frequently. To do this, you
need the parameter ID. Which help function would you use to locate the parameter ID
when you are on the field?
Choose the correct answers.
X
A F1
X
B F4
X
C System help
X
D F11
X
E Application help
F1 provides help on the purpose of a specific field, and also provides technical information
for the field. Here you will find the parameter ID for the field in question.
Unit 2: Learning Assessment- Answers
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10. Application help, which is available through the Help menu, is context-sensitive. This
means that it will link you directly to the help for whatever application area of the system
you are currently working in.
Determine whether this statement is true or false.
X
True
X
False
Unit 2: Learning Assessment- Answers
© Copyright . All rights reserved. 53
Unit 2: Learning Assessment- Answers
54 © Copyright . All rights reserved.
UNIT 3 System Wide Concepts
Lesson 1
Identifying Elements of SAP's Organizational Structure 56
Exercise 1: Display a Customer Master Record 62
UNIT OBJECTIVES
Ɣ
Identify the elements of SAP's system-wide concepts
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Unit 3
Lesson 1
50
Identifying Elements of SAP's Organizational
Structure
LESSON OVERVIEW
This lesson explains the system-wide concepts on which the SAP system is based.
Business Example
You are part of the implementation team and must be able to define and explain the system-
wide concepts on which your organizational structure and master data will be based. For this
reason you require the following knowledge:
Ɣ
A good understanding of how organizational elements are used to depict an organizational
structure
Ɣ
A good understanding of how master data is set up and made available to users
Ɣ
A basic understanding of transactions that execute business processes
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Ɣ
Identify the elements of SAP's system-wide concepts
Organizational Elements
Explain that the focus of this lesson is to develop an understanding of the system-wide
concepts of the SAP System. These concepts, organizational elements, master data, and
transactions, are the basic elements designed and utilized to represent a company’s
enterprise structure and business processes within the SAP System. Emphasize that these
are common threads across all SAP applications.
Other SAP Business Suite components are also based on these principles, but there the
concepts often look different in the details. For example in SAP SCM some of the
organizational units play a different role (they are more on the same level as customers and
suppliers for planning purposes) and sometimes terms change (like from material to
products).
The exercises re-enforce the ideas of master data and organizational elements. Students
should understand that master data and organizational element ideas extend to all areas of
the ERP system
One of the first steps in implementing SAP applications is to define the specific organizational
structures of your company in the SAP system. Organizational units are provided for
accounting, logistics, and human capital management functions. The first step is to analyze
the structures and procedures in your company, and then assign them to the SAP structures.
Organizational elements include the following:
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Client: The client is the highest-level element of all organizational elements. It
represents the enterprise/headquarters group.
Company code: The company code is a legal, independent accounting unit
representing the central organizational element of financial
accounting. The company code represents the tax law (national) view
of the company, the fiscal calendar, the local currency, and the tax
reporting requirements.
Plant: The plant is the central organizational unit of production. A plant can
manufacture product, distribute product, or provide a service.
Storage location: The storage location differentiates material stock within one plant
according to the storage location.
Sales organization: The sales organization is the central organizational element in sales
order management. It controls the terms of sale to the customer.
Distribution
channel:
Distribution channels are used to define how different products reach
consumers, for example, wholesale.
Organizational unit: Organizational units describe the various business units that exist in a
company. Organizational units are often loosely defined as functional
or regional departments.
Position: Positions are the individual employee assignments within your
company.
The figure shows typical SAP enterprise terminology for organizational elements. Emphasize
that organizational elements are used to represent a company’s enterprise structure within
SAP either for legal and/or business-related purposes. Highlight this by using some of the
examples noted on the figure. Point out that organizational elements may be used by all
applications (client), multiple applications (plant), or a single application (sales organization).
Explain we are showing a simple structure and that there are other organizational elements.
This section is important to provide participants with an overview of IDES, our demo
company.. IDES AG operates on a global level with global business partners. The participants
need to be made aware that the different solutions overlap. You can find information about
IDES in the SAP Corporate Portal under "/go/IDES". The sample of IDES is available for
customers as well.
IDES is a demo system developed and used by SAP. IDES is an international company that is
dependent upon collaborations with external business partners. IDES operates worldwide and
has a number of subsidiaries.
Lesson: Identifying Elements of SAP's Organizational Structure
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Figure 21: Organizational Structure: Terminology
Master Data Concepts
Since this is the only unit where master data will be discussed take your time explaining the
concept.
In this lesson, the participants will have an opportunity to display several types of master
data.
Be aware that the concepts here are ERP focused. They change when additional Business
Suite applications are added.
In SAP, master data is created centrally and is available to all applications and all authorized
users. Storing master data centrally means data records are always consistent, up to date,
and free of redundancy. Master data is organized into views that are assigned to
organizational elements (for example, plant, organizational unit, and so on). The segmented
structure of master records makes it possible to flexibly depict the various organizational
structures of an operation.
When the corresponding data (such as information on customers or materials) is integrated
in one single database object, data redundancy is no longer an issue and data integrity is
enhanced. All areas use the same stored data, including sales, purchasing, inventory
management, materials planning, invoice verification, finance, and human resources.
Customer Master
Explain to participants that the customer master contains key information that defines the
business relationship between a company and its customer, for example ship-to information,
delivery requirements, billing terms and payment terms. Point out that the information in the
customer master is organized into three views with each located at a different organizational
level: General Data (Client), Financial Accounting Data (Company Code), and Sales Data
(Sales Area).
This is of course still the “old” SD customer master. We do not use Business Partners in this
unit nor in this course.
Unit 3: System Wide Concepts
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A customer master record contains key information that defines the business relationship
between a company and the customer. Company code data controls the posting procedure
and subsequent processing, such as payments. Sales organization data provides information
on customers to support the execution of business processes such as entering sales orders,
shipping, billing, and processing payments.
The structure of customer master records includes the following information:
General data: This data is relevant to every company code and every sales
organization in a company.
Data for company
codes:
This data reflects company-specific agreements with the
customer.
Data for sales: This data has different characteristics for a company’s sales
organizations and channels.
The layout of customer master records may also include special requirements.
Figure 22: Master Data: Customer Master
How to Display a Customer Master Record
1. From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> Master
Data -> Business partners -> Customer -> Display -> XD03 Complete .
2. Display the details of the customer master record of customer RohrerXX for company
code 1000 and sales area 1000/10/00.
3. The required steps are detailed in the Display a Customer Master exercise.
4. Complete a brief review of the structure of the customer master record. Highlight the
different views and content of the master data and the sales and finance integration.
Material Master
This figure introduces a second important type of master data: material master. The figure
highlights how the data in the material master is grouped into views that are organized by
business function. The figure also shows the type of information maintained in the material
master. Note: the majority of the views in a material master are at plant level.
Lesson: Identifying Elements of SAP's Organizational Structure
© Copyright . All rights reserved. 59
The material master contains all of the key information a company needs to manage a
material within its organization. The material master defines, among other things, how a
product is sold, manufactured, purchased, inventoried, accounted, and calculated. The
information in the material master is grouped into views that are organized by business
function.
Figure 23: Master Data: Material Master
Transactions
Review the terminology for transactions(executing business processes) and documents
(data record of a specific transaction). An example transaction is a create sales quote and
the resulting document is a sales quote. Emphasize how organizational and master data are
integrated during transaction processing. Explain that whenever possible, master data is
copied during transaction processing thus avoiding re-entry of data.
Transactions are application programs that execute business processes in the SAP system.
Whenever possible, master data is copied during transaction processing, thus avoiding re-
entry of data. For example, when executing the transaction create sales order, the user must
enter the customer master number. The customer master number is copied into all of the
relevant customer information areas. Once the material master numbers are entered for the
items being ordered, the relevant material data will be copied to the sales order.
When performing each transaction, applicable organizational elements must be entered. For
example, by specifying the sales organization, the appropriate sales group is given credit for
the sales activity. The designation of the plant and storage location determines product
sourcing.
Unit 3: System Wide Concepts
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Figure 24: Transactions
Whenever a transaction is executed in the system, a document is created. This document is a
data record of the transaction and contains all of the relevant, predefined information from
the master data and organizational elements.
Lesson: Identifying Elements of SAP's Organizational Structure
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Unit 3
Exercise 1
Display a Customer Master Record
Business Example
Your are a customer service administrator and are responsible for the maintenance of
customer information. For this reason, you must access customer master records and ensure
their accuracy.
Display a Customer Master Record
Navigate to a customer master record and take note of information related to the
organizational areas of general data, sales, and company code.
The exercises within the System-wide concepts unit use the Procurement area as an
example to re-enforce the ideas of master data and organizational elements. Remind
students that master data and organizational element ideas extend to all areas of the ERP
system
1. Using the information provided in the table, display the customer master record.
Hint:
Remember, ## refers to the group number assigned by your instructor.
Field Data
Customer Rohrer##
(Rohrer AG Gr.##)
Company Code 1000
(IDES AG)
Sales Organization 1000
(Germany Frankfurt)
Distribution Channel 10
(Final Customer Sales)
Division 00
(Cross-division)
2. Locate and record the following general data.
Field Data
Street/House number
City
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Field Data
Search Term
3. Locate the following company code data.
Hint:
Choose the Company Code Data icon from the application toolbar.
Field Data
Recon.account
Hint:
The Reconciliation Account in the general ledger is the account that is updated
parallel to the subledger account for normal postings (for example, invoice or
payment).
4. Locate the following sales area data.
Hint:
Choose the Sales Area Data icon from the application toolbar.
Field Data
Shipping conditions
Terms of payment
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Unit 3
Solution 1
Display a Customer Master Record
Business Example
Your are a customer service administrator and are responsible for the maintenance of
customer information. For this reason, you must access customer master records and ensure
their accuracy.
Display a Customer Master Record
Navigate to a customer master record and take note of information related to the
organizational areas of general data, sales, and company code.
The exercises within the System-wide concepts unit use the Procurement area as an
example to re-enforce the ideas of master data and organizational elements. Remind
students that master data and organizational element ideas extend to all areas of the ERP
system
1. Using the information provided in the table, display the customer master record.
Hint:
Remember, ## refers to the group number assigned by your instructor.
Field Data
Customer Rohrer##
(Rohrer AG Gr.##)
Company Code 1000
(IDES AG)
Sales Organization 1000
(Germany Frankfurt)
Distribution Channel 10
(Final Customer Sales)
Division 00
(Cross-division)
a) From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> Master
Data -> Business Partners -> Customer -> Display .
b)
Double-click Complete .
c) Enter Customer: Rohrer##.
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d) Enter Company Code: 1000.
e) Enter Sales Organization: 1000.
f) Enter Distribution Channel: 10.
g) Enter Division: 00.
h)
Choose Enter .
2. Locate and record the following general data.
Field Data
Street/House number
City
Search Term
a) Choose the Address tab.
b) Record the Street name in the table provided above: Waldstrasse 86–90.
c) Record the City in the table provided above: Berlin.
d) Record the Search term in the table provided above: SAP01.
3. Locate the following company code data.
Hint:
Choose the Company Code Data icon from the application toolbar.
Field Data
Recon.account
Hint:
The Reconciliation Account in the general ledger is the account that is updated
parallel to the subledger account for normal postings (for example, invoice or
payment).
a) Choose the Company Code Data icon.
b) Choose the Account Management tab.
c) Record the Recon. Account in the table provided above: 140000.
4. Locate the following sales area data.
Hint:
Choose the Sales Area Data icon from the application toolbar.
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Field Data
Shipping conditions
Terms of payment
a) Choose the Sales Area Data icon.
b) Choose the Shipping tab.
c) Record the Shipping conditions in the table provided above: 10 (immediately).
d) Choose the Billing Document tab.
e) Record the Terms of payment in the table provided above: ZB01.
f)
Choose Exit .
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LESSON SUMMARY
You should now be able to:
Ɣ
Identify the elements of SAP's system-wide concepts
Lesson: Identifying Elements of SAP's Organizational Structure
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Unit 3: System Wide Concepts
68 © Copyright . All rights reserved.
Unit 3
61
Learning Assessment
1. Organizational elements define a company's enterprise structure within the SAP system
for legal or business-related purposes.
Determine whether this statement is true or false.
X
True
X
False
2. Which of the following are examples of organizational elements?
Choose the correct answers.
X
A Company code
X
B Client
X
C Plant
X
D All of the above
X
E None of the above
3. Which of the following are true statements about master data?
Choose the correct answers.
X
A Master data is created centrally and is available to all applications and all
authorized users.
X
B Master data decreases data redundancy.
X
C Master data is organized into views that are assigned to organizational elements.
4. Name the two types of master data discussed in this lesson.
Choose the correct answers.
X
A Plant and customer
X
B Material and customer
X
C Material and storage location
X
D None of the above
© Copyright . All rights reserved. 69
5. Which of the following is a true statement about customer master data?
Choose the correct answers.
X
A Customer master data contains key information that defines the business
relationship between a company and its customer.
X
B Customer master data contains material-specific parameters that support
execution of business processes.
X
C Customer master data must be created for each company that plans to sell to that
customer.
X
D None of the above
6. Transactions are application programs that execute business processes in the SAP
system.
Determine whether this statement is true or false.
X
True
X
False
7. What is created in the system each time a transaction is executed?
Choose the correct answers.
X
A Report
X
B Log
X
C Document
X
D Inventory
Unit 3: Learning Assessment
70 © Copyright . All rights reserved.
Unit 3
63
Learning Assessment- Answers
1. Organizational elements define a company's enterprise structure within the SAP system
for legal or business-related purposes.
Determine whether this statement is true or false.
X
True
X
False
A company’s enterprise structure is mapped to the SAP applications using organizational
elements. Organizational elements are the mechanism for defining a company’s
enterprise structure within the SAP system for legal and business-related purposes.
2. Which of the following are examples of organizational elements?
Choose the correct answers.
X
A Company code
X
B Client
X
C Plant
X
D All of the above
X
E None of the above
Organizational elements include legal company entities, plants, storage locations, sales
offices, and profit centers, and may be assigned to a single application (for example, sales
organization is assigned to sales order management) or to several applications(for
example, plant to procurement and production planning).
© Copyright . All rights reserved. 71
3. Which of the following are true statements about master data?
Choose the correct answers.
X
A Master data is created centrally and is available to all applications and all
authorized users.
X
B Master data decreases data redundancy.
X
C Master data is organized into views that are assigned to organizational elements.
When all of the corresponding data (such as customer and material) is integrated into one
single database object, the problem of data redundancy is no longer an issue and data
integrity is enhanced. All areas can use the stored data, including sales, purchasing,
inventory management, materials planning, invoice verification, and so on.
4. Name the two types of master data discussed in this lesson.
Choose the correct answers.
X
A Plant and customer
X
B Material and customer
X
C Material and storage location
X
D None of the above
A customer master contains key information that defines the business relationship
between a company and its customer. A material master contains all of the key
information a company needs to manage a material within its organization.
5. Which of the following is a true statement about customer master data?
Choose the correct answers.
X
A Customer master data contains key information that defines the business
relationship between a company and its customer.
X
B Customer master data contains material-specific parameters that support
execution of business processes.
X
C Customer master data must be created for each company that plans to sell to that
customer.
X
D None of the above
The customer master contains key information that defines the business relationship
between a company and its customer. These customer-specific parameters support
execution of business processes.
Unit 3: Learning Assessment- Answers
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6. Transactions are application programs that execute business processes in the SAP
system.
Determine whether this statement is true or false.
X
True
X
False
Transactions are application programs that execute business processes in the SAP
system. Whenever possible, master data is copied during transaction processing, thus
avoiding re-entry of data.
7. What is created in the system each time a transaction is executed?
Choose the correct answers.
X
A Report
X
B Log
X
C Document
X
D Inventory
Whenever a transaction is executed in the system, a document is created. This document
provides a data record of the transaction and contains all of the relevant predefined
information from the master data and organizational elements.
Unit 3: Learning Assessment- Answers
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Unit 3: Learning Assessment- Answers
74 © Copyright . All rights reserved.
UNIT 4 Logistics
Lesson 1
Ordering Material 77
Exercise 1: Create a Purchase Order for Materials 86
Exercise 2: Create a Goods Receipt 89
Exercise 3: Process a Vendor Invoice 94
Lesson 2
Using Supplier Relationship Management 100
Lesson 3
Creating a Production Plan 105
Exercise 4: Create a Planned Order 110
Lesson 4
Processing Production Orders 115
Exercise 5: Create and Release a Production Order 121
Exercise 6: Confirm a Production Order and Goods Receipt 125
Lesson 5
Using Supply Chain Management 130
Lesson 6
Managing Sales Orders 136
Exercise 7: Create a Sales Order 140
Lesson 7
Creating Delivery Process Documents 144
Exercise 8: Create a Delivery and Post a Goods Issue 148
Lesson 8
Creating Billing Documents 154
Exercise 9: Create a Sales Order Billing Document 158
Lesson 9
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Using Customer Relationship Management 161
Lesson 10
Using Product Lifecycle Management 168
UNIT OBJECTIVES
Ɣ
Create a purchase order
Ɣ
Create a goods receipt
Ɣ
Verify a vendor invoice
Ɣ
Outline Supplier Relationship Management processes
Ɣ
Create a planned order
Ɣ
Create and release a production order
Ɣ
Confirm a production order and goods receipt
Ɣ
Utilize SAP Supply Chain Management to manage supply and demand
Ɣ
Create a sales order
Ɣ
Create a delivery and post a goods issue
Ɣ
Create a sales order billing document
Ɣ
Use SAP Customer Relationship Management
Ɣ
Outline the tasks associated with processes supporting product lifecycle management
Unit 4: Logistics
76 © Copyright . All rights reserved.
Unit 4
Lesson 1
69
Ordering Material
LESSON OVERVIEW
This lesson reviews procurement, including purchase orders, goods receipt, and logistics
invoice verification processes in SAP ERP.
This lesson shows you how the procurement processes are executed within SAP.
Business Example
As a purchasing agent, you are responsible for ordering material. You must be able to create
purchase orders, confirm the receipt of the ordered material, and verify the vendor invoice
prior to payment. For this reason, you require the following knowledge:
Ɣ
A good understanding of purchase order processes
Ɣ
A good understanding of the goods receipt process
Ɣ
A good understanding of Logistics Invoice Verification
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Ɣ
Create a purchase order
Ɣ
Create a goods receipt
Ɣ
Verify a vendor invoice
Procurement Process
Procurement in SAP ERP covers traditional processes such as requisitioning, purchase order
management, and invoice verification. ERP procurement also covers catalog-based self-
service requisitioning for maintenance, repair, and operating (MRO) materials and services.
Procurement in SAP ERP improves procurement processes by facilitating plan-driven and ad
hoc purchasing, complete inventory management, and reporting on all procurement
activities. In addition to providing supplier relationship management tools, SAP ERP enables
supplier selection and qualification, contract negotiations, bid invitations, and vendor
evaluation.
Determination of requirements:
Material requirements are identified either in the user departments or via materials planning
and control. You can enter purchase requisitions yourself, or they can be generated
automatically by the materials planning and control system.
Material requirements can cover both material requirements planning (MRP) and the
demand-based approach to inventory control. Important aspects of inventory control include
© Copyright . All rights reserved. 77
regular checking of stock levels of materials defined by master records; use of the order-
point method; and forecasting on the basis of past usage.
Source determination
SAP ERP helps you identify potential sources of supply based on past orders and existing
longer-term purchase agreements. This speeds the process of creating requests for
quotation (RFQs), which can be sent to vendors electronically, if desired.
Vendor selection and comparison of quotations
The system is capable of simulating pricing scenarios, allowing you to compare a number of
different quotations. A quote can result in a frm order. Rejection letters can be sent
automatically.
Purchase order creation
The purchase order adopts information from the requisition and the quotation to help you
create a purchase order. As with purchase requisitions, you can generate purchase orders
yourself or have the system generate them automatically. Vendor scheduling agreements
and contracts are also supported.
Purchase order follow-up
The system checks the reminder periods you specified and, if necessary, automatically prints
reminders or expediters at the predefined intervals. The system also provides you with an
up-to-date status of all purchase requisitions, quotations, and purchase orders.
Goods receiving and inventory management
Goods receiving personnel can confirm the receipt of goods by entering the purchase order
number. By specifying permissible tolerances, buyers can limit over-deliveries and under-
deliveries of ordered goods.
Invoice verification
The system supports the invoice checking and matching. The accounts payable clerk is
notified of quantity and price variances because the system has access to purchase order
and goods receipt data. This speeds the process of auditing and clearing invoices for
payment.
Note: In Procurement, MRP is Material Requirements Planning; in Production, MRP is
Manufacturing Resource Planning
Unit 4: Logistics
78 © Copyright . All rights reserved.
Basic Procurement Cycle
Figure 25: Procurement
The basic procurement (purchase-to-pay) cycle for a service or material consists of the
following phases:
1. Demand determination: Determine material requirements
2. Source determination: Identify sources of supply
3. Supplier selection: Compare quotations
4. Purchase order creation: Create purchase orders; purchase order adopts information
from the requisition and/or the quotation
5. Order monitoring: Track orders; system provides up-to-date status of all purchase
requisitions, quotations, and purchase orders
6. Goods receipt: Confirm goods received
7. Invoice verification: Check and match invoice for processing
8. Payment processing: Process payment to the supplier
Purchase Orders
This section provides an overview of how purchase order processing is supported by SAP
ERP. Explain that a purchase order is a formal request to a vendor to supply certain goods or
services under the stated conditions.
Purchase orders can be created with reference to a purchase requisition, quotation, or other
Purchase order. The advantage is that all known order information is automatically copied
into the purchase order document. In addition, you can emphasize the integration of master
data in the processing of purchase orders. Explain that key data is copied from the vendor
master and material master, such as terms of payment and material description,
respectively. This minimizes data entry and maximizes data accuracy / consistency.
A purchase order is a formal request to a vendor to supply certain goods or services under
stated conditions.You can create purchase orders with or without reference to a purchase
requisition, a request for quotation, or another purchase order.
Lesson: Ordering Material
© Copyright . All rights reserved. 79
When you enter the purchase order data, the system suggests default values such as ordering
address, terms of payment, and freight from the vendor master record. If a purchasing source
already exists in the system, the system copies a price proposal to the new purchase order.
Figure 26: Purchase Order
You can either send the purchase order to a vendor or carry out a stock transport order in
another plant belonging to your company or group. The associated freight costs in the
purchase order are taken into account.
How to Create a Purchase Order for Materials
How to create a purchase order for stock materials in the SAP system.
1. From the SAP Easy Access screen, choose Logistics -> Materials Management ->
Purchasing -> Purchase Order -> Create -> ME21N Vendor/Supplying Plant Known .
2. Using the data specified in the table, create a purchase order for a stock material.
Field Data
Order type Standard PO
(NB)
Vendor BaltusXX
(Baltus AG Gr.XX)
Purchasing organization 1000
(IDES Deutschland)
Purchasing group BXX
(SAP01 Gr.XX)
Company code 1000
IDES AG
Material R-T1XX
PO Quantity 10
Unit 4: Logistics
80 © Copyright . All rights reserved.
Field Data
Plant 1000
(Hamburg)
Storage Location 0001
Purchase Order Number
The required steps are detailed in the Create a Purchase Order for a Stock Material
exercise.
3. Complete a brief review of the structure and format of the purchase order (that
is,formatand header vs. line item detail). Emphasize the master data integration by
highlighting specific data elements copied from master data records. Some examples of
data elements are:
Ɣ
Vendor master: Terms of payment and communications data
Ɣ
Material master: Base unit of measure, material description, and material group
Goods Receipt
The advantages of posting a goods receipt with reference to a purchase order include the
following:
Ɣ
At the goods receiving point, the total goods received are checked against what was
ordered.
Ɣ
Data from the purchase order is copied into your document when you enter the goods
receipt (for example, items and quantities). This makes it easier to enter the goods receipt
and check overdeliveries and underdeliveries when goods arrive.
Ɣ
The purchase order history is automatically updated as a result of the deliveries. The
purchasing department can send a reminder if a delivery is late.
Ɣ
When you post a goods receipt to the warehouse, the system creates a material
document. This document contains information such as the material and quantity
delivered, and the storage location for materials placed into stock in the plant.
Ɣ
If the transaction is relevant for material valuation, the system creates at least one
accounting document that records the effects of the goods movement on the value of the
stock.
Lesson: Ordering Material
© Copyright . All rights reserved. 81
Figure 27: Goods Receipt
How to Create a Goods Receipt
How to post a goods receipt to stock with reference to a purchase order in the SAP system.
1. From the SAP Easy Access screen, choose Logistics -> Materials Management -> Inventory
Management -> Goods Movement -> Goods Receipt -> For Purchase Order -> MIGO PO
Number known.
2. Using the data specified below, enter a goods receipt with reference to a purchase order.
Field Data
Purchase order If using group 00, use PO number
45000018000 (refer to table in exercise for
additional numbers)
Material Document Number
The required steps are detailed in the Enter a Goods Receipt Referencing a Purchase
Order exercise.
3. Complete a brief review of the structure and format of the goods receipt transaction (for
example, header vs. line item detail).
Vendor Invoice Verification
Explain that the procurement process concludes with the logistics invoice verification
process, during which invoices and credit memos are entered and the contents and prices
checked for accuracy. Note that the actual payment to the vendor is handled by the
accounting department using appropriate information that is passed from the system.
The procurement process is concluded by the Logistics Invoice Verification process, during
which invoices and credit memos are checked for accuracy and entered into the system.
Payment and evaluation of invoices are part of the accounting process. Logistics Invoice
Verification creates a link between procurement and accounting.
Unit 4: Logistics
82 © Copyright . All rights reserved.
When you enter an invoice with reference to a purchase order, data (for example, vendor,
material, quantity still to be invoiced, or terms of payment) is displayed on your screen.
Figure 28: Logistics Invoice Verification
If there are discrepancies between the purchase order or goods receipt and the invoice, a
warning is displayed and, depending on the system configuration, the system blocks the
invoice for payment.
Invoice posting completes the Logistics Invoice Verification process. The system updates the
purchase order history, and financial accounting initiates payment for the open invoice items.
How to Process a Vendor Invoice
How to process a vendor by posting the invoice for the material you received.
1. From the SAP Easy Access screen, choose Logistics -> Materials Management -> Logistics
Invoice Verification -> Document Entry -> MIRO Enter Invoice .
2. Using the data specified below, enter an invoice.
Field Data
Invoice date <current date>
Reference 234## (## = your group number)
Amount 56,21
Tax Amount 5,11
Purchase Order If using group number 00, enter
PO 45000018031 (created by the
CATT). Alternatively, refer to
the table in the exercise.
Lesson: Ordering Material
© Copyright . All rights reserved. 83
Vendor Messages
Messages for a purchasing document are shown here as an example which is generally valid
for the whole SAP system. Explain that this is possible, for example, in sales as well. Note that
other messages exist, such as system messages. This section deals with messages which
are printed or faxed or sent by any other means.
Each time you create an request for quotation (RFQ), purchase order, contract, or scheduling
agreement, the system creates a message. This message is then placed in the message
queue that contains all messages that have not yet been transferred to the vendors. You can
issue messages to vendors by print, email, fax, or electronic data interchange (EDI).
The options to issue messages are as follows:
Issue
Immediately:
The system issues the message directly from the queue as soon as you
save the document.
Issue Later: A background job is scheduled. This job processes the message queue in
intervals determined by configuration setup. You may also start the
message issue directly from the purchasing menu. As a rule, messages
are issued using the background job and messages issued manually are
an exception (for example, rush orders).
Figure 29: Messages
In the ordering transaction, you can display a document before printing it.SAP systems
support Smart Forms, SAPscript, and PDF-based forms for printing.
How to Display a Message Output
How to display message output from the purchase order.
1. Choose Logistics -> Materials Management -> Purchasing -> Purchase Order -> ME32N
Display .
2. Choose Goto -> Message and explain the messages that were sent.
Unit 4: Logistics
84 © Copyright . All rights reserved.
3.
Choose Back.
4. Show the print preview. Choose Goto -> Print preview .
Lesson: Ordering Material
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Unit 4
Exercise 1
Create a Purchase Order for Materials
Business Example
As a buyer, you are responsible for purchasing. You have received an order from sales and to
procure the material, you must create a purchase order that can be forwarded to the vendor.
Create a Purchase Order for Stock Materials
1. Create a purchase order for stock material using information in the table.
Field Data
Vendor Baltus##
(Baltus AG Gr.##)
Purchasing organization 1000
(IDES Deutschland)
Purchasing group B##
(SAP01 Gr.##)
Company code 1000
IDES AG
Material R-T1##
PO Quantity 10
Plant 1000
(Hamburg)
Storage location 0001
Purchase Order Number
2. Display the purchase order.
86 © Copyright . All rights reserved.
Unit 4
Solution 1
Create a Purchase Order for Materials
Business Example
As a buyer, you are responsible for purchasing. You have received an order from sales and to
procure the material, you must create a purchase order that can be forwarded to the vendor.
Create a Purchase Order for Stock Materials
1. Create a purchase order for stock material using information in the table.
Field Data
Vendor Baltus##
(Baltus AG Gr.##)
Purchasing organization 1000
(IDES Deutschland)
Purchasing group B##
(SAP01 Gr.##)
Company code 1000
IDES AG
Material R-T1##
PO Quantity 10
Plant 1000
(Hamburg)
Storage location 0001
Purchase Order Number
a) From the SAP Easy Access screen, choose Logistics -> Materials Management ->
Purchasing -> Purchase Order -> Create .
b)
Choose Vendor /Supplying Plant Known .
c)
Enter Vendor: Baltus## (Baltus AG Gr.##) and press Enter.
Hint:
If you do not see the details in the header of the purchase order, choose
Expand header to expand the header area.
d) Select the Org. data tab.
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Note:
The Org. data tab should be the system default.
e) Enter Purchasing org.: 1000.
f) Enter Purch. group: B##.
g) Enter Company Code: 1000.
h)
Choose Enter .
Hint:
If you do not see the details in the item overview area of the purchase
order, choose Expand items to expand the item area.
i) Enter Material: R-T1##.
j) Enter PO quantity: 10.
k) Enter Plnt: 1000.
l) Enter stor. location : 0001.
m)
Choose Enter .
n)
Choose Save .
You receive a system message that a purchase order was created.
Note:
Do not return to the SAP Easy Access menu.
2. Display the purchase order.
a) Choose Purchase order -> other purchase order .
b) From within the dialog box, choose other document.
c) Your purchase order is displayed.
d)
Choose Exit to exit the screen and return to the SAP Easy Access menu.
88 © Copyright . All rights reserved.
Unit 4
Exercise 2
Create a Goods Receipt
Business Example
You are responsible for receiving material and have received a shipment. You must now enter
the material into stock by completing a goods receipt.
This exercise is modularized. The CATT created the purchase order numbers in the table to
allow participants to complete the exercise. If you are delivering a regular ILT class, you may
elect to have students use the purchase order number they created in the previous exercise.
Create a Goods Receipt
Group Number Purchase Order
Number
Group Number Purchase Order
Number
00 45000018000 16 45000018016
01 45000018001 17 45000018017
02 45000018002 18 45000018018
03 45000018003 19 45000018019
04 45000018004 20 45000018020
05 45000018005 21 45000018021
06 45000018006 22 45000018022
07 45000018007 23 45000018023
08 45000018008 24 45000018024
09 45000018009 25 45000018025
10 45000018010 26 45000018026
11 45000018011 27 45000018027
12 45000018012 28 45000018028
13 45000018013 29 45000018029
14 45000018014 30 45000018030
15 45000018015
Enter a goods receipt to stock and view the documents created by the receipt.
1. Using the data provided in the table below, enter a goods receipt with reference to a
purchase order.
© Copyright . All rights reserved. 89
Field Data
Purchase order Enter the ourchase order for your group
number (##) from the table provided,
unless instructed otherwise by the
instructor.
Material R-T1##
Quantity 10
Plant 1000 (Hamburg)
Storage Location 0001
Material Document Number
2. Display the material document.
Hint:
You can display the material documents from the same transaction that you
use to post goods issue (MIGO).Change the selection option from Goods
Receipt to Display.
90 © Copyright . All rights reserved.
Unit 4
Solution 2
Create a Goods Receipt
Business Example
You are responsible for receiving material and have received a shipment. You must now enter
the material into stock by completing a goods receipt.
This exercise is modularized. The CATT created the purchase order numbers in the table to
allow participants to complete the exercise. If you are delivering a regular ILT class, you may
elect to have students use the purchase order number they created in the previous exercise.
Create a Goods Receipt
Group Number Purchase Order
Number
Group Number Purchase Order
Number
00 45000018000 16 45000018016
01 45000018001 17 45000018017
02 45000018002 18 45000018018
03 45000018003 19 45000018019
04 45000018004 20 45000018020
05 45000018005 21 45000018021
06 45000018006 22 45000018022
07 45000018007 23 45000018023
08 45000018008 24 45000018024
09 45000018009 25 45000018025
10 45000018010 26 45000018026
11 45000018011 27 45000018027
12 45000018012 28 45000018028
13 45000018013 29 45000018029
14 45000018014 30 45000018030
15 45000018015
Enter a goods receipt to stock and view the documents created by the receipt.
1. Using the data provided in the table below, enter a goods receipt with reference to a
purchase order.
© Copyright . All rights reserved. 91
Field Data
Purchase order Enter the ourchase order for your group
number (##) from the table provided,
unless instructed otherwise by the
instructor.
Material R-T1##
Quantity 10
Plant 1000 (Hamburg)
Storage Location 0001
Material Document Number
a) From the SAP Easy Access screen, choose Logistics -> Materials Management ->
Inventory Management -> Goods Movement -> Goods Receipt -> For Purchase Order .
b)
ChooseGR for Purchase Order (MIGO) .
c) Enter The purchase order number for your group (##) from the table provided, unless
instructed otherwise by the instructor.
Hint:
You may search for your purchase order number by choosing and
searching on the Material field using material number R-T1##.
d)
ChooseExecute or press Enter.
e) Choose the Where tab.
f) Verify that the Plant is 1000 and that the Storage location is 0001.
g) Select Item OK.
h)
ChoosePost to post the goods receipt. You will receive a system message that a
material document has been posted.
Hint:
Do not return the to the SAP Easy Access menu.
2. Display the material document.
Hint:
You can display the material documents from the same transaction that you
use to post goods issue (MIGO).Change the selection option from Goods
Receipt to Display.
a) Choose Display.
92 © Copyright . All rights reserved.
b)
ChooseExecute .
c)
ChooseExit to exit the screen and return to the SAP Easy Access screen.
© Copyright . All rights reserved. 93
Unit 4
Exercise 3
Process a Vendor Invoice
Business Example
This exercise is a separate module. The CATT created the purchase order numbers in the
table to allow participants to complete the exercise. If you are delivering a regular ILT class,
you may elect to have students use the purchase order number they created in the previous
exercise.
You are responsible for processing invoices and have received an invoice for purchased
material. You must now post the invoice for payment.
Process a Vendor Invoice
Group Number Purchase Order
Number
Group Number Purchase Order
Number
00 45000018031 16 45000018047
01 45000018032 17 45000018048
02 45000018033 18 45000018049
03 45000018034 19 45000018050
04 45000018035 20 45000018051
05 45000018036 21 45000018052
06 45000018037 22 45000018053
07 45000018038 23 45000018054
08 45000018039 24 45000018055
09 45000018040 25 45000018056
10 45000018041 26 45000018057
11 45000018042 27 45000018058
12 45000018043 28 45000018059
13 45000018044 29 45000018060
14 45000018045 30 45000018061
15 45000018046
Field Data
Invoice date <today>
Reference ## (your group number)
Amount 56,21
94 © Copyright . All rights reserved.
Field Data
Tax Amount 5,11
Invoice Document
Hint:
There may be a popup asking you to enter the Company Code. Please enter
Company Code 1000 and choose Continue .
.
Note:
Make sure your taxes have defaulted to 10%
The Reference Document Category should show Purchase Order / Scheduling Agreement.
Enter your Purchase Order Number for your group ## from the table
provided. Choose Enter.
Hint:
The invoice can be posted if the balance indicator is green. If the balance
indicator is red or yellow, please contact your instructor.
Choose Post .Choose Exit to exit the screen and return to the SAP Easy Access menu.
1. Using the data provided in the table, enter the vendor's invoice using the data in the table.
2. The Reference Document Category should show Purchase Order / Scheduling Agreement.
Enter your purchase order information for vendor Baltus##.
3. Post your invoice.
4. Return to the SAP East Access screen.
5. Exit the SAP Easy Access screen.
© Copyright . All rights reserved. 95
Unit 4
Solution 3
Process a Vendor Invoice
Business Example
This exercise is a separate module. The CATT created the purchase order numbers in the
table to allow participants to complete the exercise. If you are delivering a regular ILT class,
you may elect to have students use the purchase order number they created in the previous
exercise.
You are responsible for processing invoices and have received an invoice for purchased
material. You must now post the invoice for payment.
Process a Vendor Invoice
Group Number Purchase Order
Number
Group Number Purchase Order
Number
00 45000018031 16 45000018047
01 45000018032 17 45000018048
02 45000018033 18 45000018049
03 45000018034 19 45000018050
04 45000018035 20 45000018051
05 45000018036 21 45000018052
06 45000018037 22 45000018053
07 45000018038 23 45000018054
08 45000018039 24 45000018055
09 45000018040 25 45000018056
10 45000018041 26 45000018057
11 45000018042 27 45000018058
12 45000018043 28 45000018059
13 45000018044 29 45000018060
14 45000018045 30 45000018061
15 45000018046
Field Data
Invoice date <today>
Reference ## (your group number)
Amount 56,21
96 © Copyright . All rights reserved.
Field Data
Tax Amount 5,11
Invoice Document
Hint:
There may be a popup asking you to enter the Company Code. Please enter
Company Code 1000 and choose Continue .
.
Note:
Make sure your taxes have defaulted to 10%
The Reference Document Category should show Purchase Order / Scheduling Agreement.
Enter your Purchase Order Number for your group ## from the table
provided. Choose Enter.
Hint:
The invoice can be posted if the balance indicator is green. If the balance
indicator is red or yellow, please contact your instructor.
Choose Post .Choose Exit to exit the screen and return to the SAP Easy Access menu.
1. Using the data provided in the table, enter the vendor's invoice using the data in the table.
a) From the SAP Easy Access screen, choose Logistics -> Materials Management ->
Logistics Invoice Verification -> Document Entry -> Enter Invoice (transaction code
MIRO).
b) Enter Invoice date : <current date> .
c) Enter Reference : ## .
d) Enter Amount : 56,21 .
e) Enter Tax Amount : 5,11 .
2. The Reference Document Category should show Purchase Order / Scheduling Agreement.
Enter your purchase order information for vendor Baltus##.
a) Enter the purchase order number for your group (##) from the table
provided in the Purchase Order / Scheduling Agreement field.
b) Enter your vendor Baltus## (## = your group number).
c) Choose Enter.
3. Post your invoice.
a)
Choose Post .
4. Return to the SAP East Access screen.
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a)
Choose Return .
5. Exit the SAP Easy Access screen.
a)
Choose Exit to return to the SAP Easy Access screen.
98 © Copyright . All rights reserved.
LESSON SUMMARY
You should now be able to:
Ɣ
Create a purchase order
Ɣ
Create a goods receipt
Ɣ
Verify a vendor invoice
Lesson: Ordering Material
© Copyright . All rights reserved. 99
Unit 4
Lesson 2
86
Using Supplier Relationship Management
LESSON OVERVIEW
This lesson provides an overview of SAP Supplier Relationship Management.
This lesson provides an overview of the basic concepts of SRM including procurement and
sourcing processes, business benefits, procurement, supplier enablement, and
integration.Some of the SAP SRM component is already part of SAP ERP, for example for the
usage of the Self-Service Procurement Scenario. Other functions (for example Strategic
Purchasing) and components (like the Bidding Engine) are only included in SAP SRM.
Business Example
You are responsible for managing relationships with suppliers and must be able to explain the
benefits of SAP Supplier Relationship Management. For this reason, you require the following
knowledge:
Ɣ
A basic understanding of procurement and sourcing processes
Ɣ
A good understanding of the business benefits of supplier relationship management
Ɣ
A good understanding of the procurement (requisitioning) process
Ɣ
A basic understanding of how suppliers are linked to the purchasing process (supplier
enablement)
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Ɣ
Outline Supplier Relationship Management processes
Procurement and Sourcing Processes
If participants would like to view a demonstration of SRM, refer them to the service
marketplace.
The materials and services you receive from your suppliers directly impact the quality of the
products and services you deliver to your customers. Suppliers are very important to the
overall value chain.
Building relationships across your entire supply base is more profitable than pressuring
individual suppliers for marginal cost reductions. SAP Supplier Relationship Management
(SAP SRM) facilitates effective management of the entire supply base in a way that
streamlines procurement and sourcing processes, maintains supply quality, and increases
profits, supplier collaboration, and innovation.
100 © Copyright . All rights reserved.
Figure 30: SAP Supplier Relationship Management
SAP SRM manages spending for continuous profitability and delivers a quick, measurable
return on investment. With increased supply chain visibility and automated processes that
connect the entire supply base, you gain an insight into global spending and you are able to
cut the cost of purchased goods and services across the company.
Effective Procurement
SAP SRM covers the full supply cycle from strategy to execution, helping you optimize
supplier selection, increase collaboration, and reduce cycle times. With the unique
advantages of consolidated content and master data, SAP SRM also helps you make and
execute decisions that align with corporate strategy.
Figure 31: Effective Procurement
Business Benefits of Supplier Relationship Management
SAP SRM focuses on bottom-line results, helping you reduce the cost of goods sold
throughout the company. SAP SRM provides a fully integrated source-to-pay process. SAP
SRM delivers significant business benefits by improving supply-related efficiency and
enhancing the value of supplier relationships,
The benefits of Supplier Relationship Management are realized in the following key areas:
Lesson: Using Supplier Relationship Management
© Copyright . All rights reserved. 101
Key Area Benefit
Centralized management
Ɣ
Procurement department has centralized
and standardized control over services
categories
Ɣ
Improved sourcing strategy
Ɣ
Rationalization and optimization of the
supply base
Ɣ
Better access to data on supplier
performance
Ɣ
Improved quality of supply and reduced
risk
Supplier collaboration
Ɣ
Collaboration with suppliers on service
definitions, bid responses, purchase order
delivery, service confirmations, and
invoice distribution
Realized savings
Ɣ
Reduced costs
Ɣ
Lower unit prices
Ɣ
Demand consolidation across multiple
business units
Ɣ
Lower inventory-carrying costs
Ɣ
Better prices through competitive bidding
Unit 4: Logistics
102 © Copyright . All rights reserved.
Key Area Benefit
Automated processes
Ɣ
Streamlined, automated, and integrated
processes from request to settlement
Ɣ
Compressed cycle times
Ɣ
Automation of tedious request-for-
proposal (RFP) and request-for-quotation
(RFQ) cycles
Ɣ
Faster procurement execution through
online approval
Ɣ
Faster acknowledgment and response
from suppliers
Ɣ
Reduced process costs
Ɣ
Increased compliance through reduced ad
hoc buying
Ɣ
Reduced complexity through content
consolidation
Ɣ
Increased efficiency through procurement
automation
Compliance enforcement
Ɣ
Compliance enforcement with the
approved suppliers at the negotiated
rates
Procurement
Catalog-based requisitioning can be integrated with your traditional procure-to-pay process
by using SAP SRM. You gain the benefits of e-procurement without losing your back-end
enterprise resource planning processes. Purchasers can use self-service functions in SAP
SRM and back-office functions in SAP ERP.
Purchasers can execute the following activities:
Requisitioning Create requisitions automatically with SAP ERP through a materials
requisition process run, or create them manually with SAP SRM using
shopping carts.
Order management Assign sources of supply, validate restrictions, and perform order
generation and tracking.
Receiving Capture the process of receiving goods and services to prepare for
follow-on processes such as automated financial settlement.
Financial
settlement
Handle financial transactions through SAP SRM and SAP ERP to make
financial settlement more efficient by using tools for invoice
management, evaluated receipt settlement, and invoice payment.
Supplier Enablement
Link suppliers to your purchasing processes through the supplier portal. With SAP SRM, you
can choose the optimal interaction channel for numerous business processes and documents
and collaborate more effectively with suppliers.
Lesson: Using Supplier Relationship Management
© Copyright . All rights reserved. 103
Supplier enablement includes the following activities:
Document
exchange
Exchange any document in any format smoothly across diverse systems
through messaging between SAP and non-SAP systems, both internally
and externally.
Supplier portal
management
Give suppliers direct access to their customers' SAP and non-SAP
applications through the preassembled content on the SAP supplier
portal for collaboration.
Supplier
collaboration
Collaborate with suppliers and make integration with suppliers of all sizes
economical and easy to manage. With SAP SRM's supplier self-services,
suppliers can access supply-side transactions and other relevant
information,update their catalog data, process acknowledgements, track
payment status, suggest changes to orders, and receive information on
inventory and supply-and-demand plans.
Integration
The main operational components in the SAP SRM application are SAP SRM for the special
functions required, and SAP ECC as part of the ERP back end.
Purchasers and standard users work in SAP SRM through a Web browser. Purchase orders
created in this way are then posted in the ERP back end for follow-up processing, for example,
goods receipt or invoice verification, and the data is available for material planning and
availability checks.
In addition to this standard scenario, SAP SRM can also be used for a standalonescenario,
where the ERP back end is only used for the financial accounting posting.
Procurement through SAP SRM is a highly integrated process in the complete logistics value
chain. Requirements for materials that are to be externally procured can be created through
planning processes in SAP SCM or through actual sales processes. As a result of the
automation of the actual purchasing process, the purchasing department can focus on
strategic tasks and quality improvement.
Supplier Relationship Management
FACILITATED DISCUSSION
Ask specific business scenarios and ask how the lesson information applies
FACILITATED DISCUSSION
Ask participants for their business experiences that relate to the lesson material.
LESSON SUMMARY
You should now be able to:
Ɣ
Outline Supplier Relationship Management processes
Unit 4: Logistics
104 © Copyright . All rights reserved.
Unit 4
Lesson 3
91
Creating a Production Plan
LESSON OVERVIEW
This lesson shows you how to create a planned order by running manufacturing resource
planning (MRPII).
Note: In Production, MRPII is Manufacturing Resource Planning and in Procurement MRP
is Material Requirements Planning.
Business Example
You are responsible for production plans and you must be able to create Manufacturing
Resource Planning (MRPII) orders. For this reason, you require the following knowledge:
Ɣ
A good understanding of the production planning process
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Ɣ
Create a planned order
Production Planning Process
SAP ERP helps enterprises manage the full range of manufacturing activities, from planning
to execution and analysis, in a single end-to-end system. SAP ERP delivers all elements of a
customer-oriented manufacturing management system and is fully compatible with Just-in-
Time (JIT) and kanban methodologies. SAP ERP supports all manufacturing strategies for
businesses in the discrete process and consumer products industries.
Just-in-Time methodologies reduce the in-process inventory and associated carrying costs.
Kanban methodologies include manufacturing specification requirements used to regulate
the supply of components.
SAP ERP supports the development and execution of efficient production plans and ensures
that accurate, comprehensive information is available at any time by combining information
from a variety of business processes.
Business processes include the following:
Ɣ
Planning
Ɣ
Cost accounting
Ɣ
Human capital management
Ɣ
Materials management
Ɣ
Warehouse management
© Copyright . All rights reserved. 105
Ɣ
Plant maintenance
Ɣ
Quality management
Briefly explain that the planning process uses forecasts and customer demand to create
production and procurement schedules for finished products and component materials.
Depending on your knowledge you can also choose to explain these planing steps in the SCM
lessons in order to work out the differences between the production planning in ERP and
SCM.
Planning Process Overview
Figure 32: Production Planning
Planning is generally divided into several steps. These steps may be executed independently
of each other, or they may collaborate.
Planning Process Details
Planning steps include the following:
Sales and
Operations
Planning
Sales and Operations Planning (SOP) generates sales plans and
production plans using forecast values and requirements from the Sales
Information System and costing/profitability analysis. The requirements
are reflected in the system as planned quantities of a product over a given
period of time, and are not necessarily created on the basis of a customer
requirement.
Demand
management
In demand management, forecasting functionality is connected with
production scheduling. Requirement quantities and dates for finished
products and assemblies based on the plans from SOP are determined.
Master production
scheduling
Master production scheduling (MPS) allows critical resources items to
be planned with extra attention. This procedure ensures that the
instabilities in planning are kept to a minimum. MPS is an optional step
in the planning process.
Unit 4: Logistics
106 © Copyright . All rights reserved.
Material
requirements
planning
Material requirements planning (MRP) is the detailed planning of
replenishment schedules for required components. The output of MRP
is either a planned order or a purchase requisition.
Manufacturing
execution
Manufacturing execution includes the creation and release of a
production order, goods issues of components, confirmation of
production activity, and goods receipts of the finished goods.
Overall Procedure
Figure 33: Overall Procedure
Manufacturing information is shared across the enterprise and supply network to coordinate
production processes and promote cooperation. Data plant process control and data-
collection systems can also be included in the shared information. This enhances decision
making by including accurate production data.
Manufacturing and production in SAP ERP does much more than just facilitate efficient
production. It establishes critical links between sales, production planning, and the factory
floor. SAP integrates your supply chain processes to make the enterprise as competitive as
possible. It integrates seamlessly with external real-time process control and laboratory
information systems. This represents a significant advancement for information systems in
the repetitive manufacturing and process industries.
SAP offers full integration between its project planning, material requirements planning
(MRP), and shop floor control system modules. Standard interfaces link SAP to external
computer-aided design (CAD), product data management, and plant data collection systems.
Therefore, SAP ERP is also the state-of-the-art manufacturing system for discrete
manufacturers and engineering-to-order companies.
Full integration within SAP ERP simplifies periodic forecast revisions. You can break down
forecast demands from the planning level to the level of the individual product. Rough-cut
capacity planning at the planning level provides a check of resource bottlenecks. Forecasts
are easily transferred to demand management and master production scheduling (MPS),
where they can be offset by incoming sales orders. You can also add unexpected demands
any time.
How to Create a Planned Order
How to run the material requirements planning program to create a planned order.
Lesson: Creating a Production Plan
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1. From the SAP Easy Access screen, choose Logistics -> Production -> MRP -> Planning ->
MD02 Multilevel Single-Item Planning.
2. Using the data specified below, start the MRP run.
Field Data
Material R-F4XX
MRP area 1000
Plant
1000
You can leave the rest of the entries as they are (they are written below just for continuity).
Field Data
Processing key NETCH
Create purchase req. 2
Delivery schedules 3
Create MRP list 1
Planning mode 1
Scheduling 1
Leave the Process control parameters unchecked.
3.
Press Enter or choose Continue.
Hint:
You have to confirm the input parameters by pressing Enter again.You
can use this to explain to the students how to continue with a warning
message.
The MRP results screen, which will appear at the end of the run, summarizes the proposals
created by the MRP program.
4. Explain the results briefly. Why are there five different materials?
How to Display the Stock/Requirements List
How to display the stock/requirements list and show the production order.
An exercise on the stock/requirements list is not included for participants.
1. Choose Logistics -> Production -> Shop Floor Control -> Information System -> MD04
Stock/Reqmts List
Unit 4: Logistics
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Note:
If you are working with two sessions, or you have created the production order
out of the stock/requirements list, just choose Refresh and continue with
Step 4
2. Enter Material: R-F4XX
3. Plnt = 1000
4.
Press Enter or choose Continue.
5. Highlight the production order.
Lesson: Creating a Production Plan
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Unit 4
Exercise 4
Create a Planned Order
You are responsible for calculating material requirements and creating planned orders, and
have received a new request. You must now start an MRP run to calculate the requirements
and to create planned orders for the new request.
1. Using the information provided in the table, create a standard order.
2. Display the stock/requirements list to confirm that your sales order was created.
3. Using the data specified below, start the MRP run.
Field Data
Material R-F4##
MRP area 1000
Plant 1000
You can leave the rest of the entries as they are (they are written below just for continuity).
Field Data
Processing key NETCH
Create purchase req. 2
Delivery schedules 3
Create MRP list 1
Planning mode 1
Scheduling 1
Leave the process control parameters unchecked.
4. Using the information provided in the table, view the stock/requirements list and record
your planned order.
Material R-F4##
Plant 1000 (Hamburg)
Planned order
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Unit 4
Solution 4
Create a Planned Order
You are responsible for calculating material requirements and creating planned orders, and
have received a new request. You must now start an MRP run to calculate the requirements
and to create planned orders for the new request.
1. Using the information provided in the table, create a standard order.
a) From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> Sales -
> Order
b) Choose Create.
c) Enter Order Type: OR and press Enter.
d) Enter Sold-to-party: Rohrer##.
e) Enter Purch. Order no.: Group-## and press Enter.
f) Enter Req. Del.date : Today + 4 weeks and press Enter.
g) Enter Material: R-F4## and press Enter.
h) Enter Order Quantity: 10 and press Enter.
i) Choose Save.
j) Choose Exit to leave the sales order and return to the SAP Easy Access screen.
2. Display the stock/requirements list to confirm that your sales order was created.
a) From the SAP Easy Access screen, choose Logistics -> Production -> Shop Floor
Control -> Information System
b) Choose Stock/Requirements List.
c) Enter Material: R-F4##.
d) Enter Plant: 1000.
e) Choose Continue.
3. Using the data specified below, start the MRP run.
Field Data
Material R-F4##
MRP area 1000
Plant 1000
You can leave the rest of the entries as they are (they are written below just for continuity).
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Field Data
Processing key NETCH
Create purchase req. 2
Delivery schedules 3
Create MRP list 1
Planning mode 1
Scheduling 1
Leave the process control parameters unchecked.
a) From the SAP Easy Access screen, choose Logistics -> Production -> MRP -> Planning .
b)
Choose Multilevel Single-Item Planning .
c) Enter Material: R-F4##.
d) Enter MRP area: 1000.
e) Enter Plant: 1000.
Note:
The information may default, and a user entry may not be required.
f)
Choose Enter .
Hint:
You have to confirm the input parameters by pressing Enter again.
g)
Choose Exit to leave the MRP run result and return to the SAP Easy Access menu.
4. Using the information provided in the table, view the stock/requirements list and record
your planned order.
Material R-F4##
Plant 1000 (Hamburg)
Planned order
a) From the SAP Easy Access menu, choose Logistics -> Production -> Shop Floor Control
-> Information System.
b)
Choose Stock/Requirements List .
c) Enter Material: R-F4##.
d) Enter Plant: 1000.
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Note:
The information will default, so a user entry may not be required.
e)
Choose Continue .
f) After the MRP run, a planned order is required for the sales order and a new MRP
element. Record the planned order in the space provided in the table above.
g)
Choose Exit to leave the stock/requirements list and return to the SAP Easy Access
screen.
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LESSON SUMMARY
You should now be able to:
Ɣ
Create a planned order
Unit 4: Logistics
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Unit 4
Lesson 4
99
Processing Production Orders
LESSON OVERVIEW
In this lesson you will learn how to create, release, and confirm production orders.
Business Example
You are responsible for the processing of production orders and must be able to create and
release orders. For this reason, you require the following knowledge:
Ɣ
A good understanding of creating production orders
Ɣ
A good understanding of releasing production orders
Ɣ
A good understanding of confirming production orders
Ɣ
A good understanding of posting goods receipts
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Ɣ
Create and release a production order
Ɣ
Confirm a production order and goods receipt
Production Orders
The production order contains information on production dates and quantities, required
components and production costs. Note: In Production MRP is Manufacturing Resource
Planning and in Procurement it is Material Requirements Planning.
The production order is the central data object in shop floor control and manufacturing
execution. The production order contains all data relevant to production objectives, material
components, required resources, and costs. A normal production order covers the demand
for a single material or product. You can produce multiple products jointly in one production
order (co-products) and distribute incurred costs between the different products.
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Figure 34: Production
In a production order, you can specify external operations that are to be processed in an
outside workshop. Production orders are usually created from planned orders.
The Production Process
The production process includes the following steps:
1. Production planning: Determine production requirements and ensure sufficient
manufacturing capability.
2. Order creation: Create the production order.
3. Order release: Release the production order to check availability of required components
and production tools.
4. Order printing: Print the production order for the shop floor.
5. Material staging: Issue material to use in production.
6. Order execution: Execute the production order.
7. Confirmations: Confirm the production order.
8. Goods receipt: Post the goods receipt.
Releasing a Production Order
Before an order is released, you must ensure that sufficient manufacturing capacity is
available. The graphic planning table provides an overview of short-term orders and released
production orders. You must release a production order before you can process it.
Unit 4: Logistics
116 © Copyright . All rights reserved.
Figure 35: Production Order
When you release a production order, you set up the system to check the availability of
components and production resources or tools. You specify the type of availability check to
be carried out (available-to-promise calculation) per order type. For example, you can work
with either dynamic or static availability checking. Once the production order is released, you
print shop floor papers, issue materials from stock, and confirm operations.
Releasing a Production Order: Details
Production orders may be released in the following ways:
Ɣ
Individually
Ɣ
Order by order
Ɣ
As a group
Ɣ
Based on order start date
Ɣ
As soon as they are created
You can release production orders operation by operation, if, for example, operation times are
long and work center assignment for an operation is only carried out after the previous
operation has finished. Examples of where steps must be processed in a specific order are at
a components plant in the aircraft industry and during assembly of precision instruments.
How to Create and Release a Production Order
How to create a production order for the planned order from the MRP run.
1. From the SAP Easy Access screen, choose Logistics -> Production -> Shop Floor Control ->
Order -> Create -> CO40 From Planned Order .
2. Enter the planned order created in the MRP run by the CATT. If you are using group 00,
your planned order will be 37031. For other planned order numbers, refer to the table in
the exercise.
3.
Once you have entered your planned order, choose Enter .
Lesson: Processing Production Orders
© Copyright . All rights reserved. 117
Hint:
You can also use the Stock/Requirements List and convert the planned order
directly. Show the details of the planned order by choosing Details of
Element or double clicking on the element. Then choose: Convert planned
order to production order.
4.
Choose Release order .
5.
Choose Save .
How to Display a Bill of Material
How to display a bill of material and the data required for a production order.
1. From the SAP Easy Access screen, choose Logistics -> Production -> Master Data -> Bills
of Material -> Bill of Material -> Material BOM -> CS03 Display .
2.
Enter Material: R-F1XX, Plant: 1000, and BOM Usage: 1. Press Enter or choose .
3. Explain the BOM briefly.
4. Explain that the components for the final material are assembled with other components.
Display the components for the component R-B1XX. Select the component and choose
Extras -> Display Assembly . Confirm the validity date request with Confirm.
How to Display the Routing and Review the Material
How to display the routing and review the material for a production order.
1. From the SAP Easy Access screen, choose Logistics -> Production -> Master Data ->
Routings -> Routings -> Standard Routings -> CA03 Display.
2.
Enter Material: R-F4XX, Plant: 1000. Press Enter or choose .
3. Explain the routing.
Order Confirmation and Goods Receipt
Explain that production order confirmations record internal activities carried out for the
order. A confirmation can record the following: quantity produced by operation, personnel,
production dates, goods movements and amount of activity (for example, labor hours). A
confirmation can reduce capacity on the work center, update costs, and/or automatically
trigger the goods receipt of the manufactured goods.
Production order operations are confirmed to deliver feedback to sales order processing and
shop floor planning. Completion confirmations collect important data, such as quantities
Unit 4: Logistics
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produced, scrap, production times, and completion dates. Completion confirmations clear
capacity loads and collect data for production cost controlling. Confirmed labor can be
transferred to SAP ERP Human Capital Management.
Figure 36: Confirmation and Goods Receipt
Types of Completion Confirmations
The following types of completion confirmations are possible:
The following types of completion confirmations are possible:
Milestone completion
confirmation
The system confirms all preceding operations, including sub-
operations, up to the previous milestone. Confirmations are based
on reported quantities (yield plus scrap) and standard times.
Standard completion
confirmation
Operations are confirmed using target values.
Normal completion
confirmation
Individual completion confirmations are conducted using target
values as defaults. You can overwrite all input values so you can
report variances in the production process.
Collective completion
confirmation
A a fast-entry screen allows you to confirm multiple operations.
Completion
confirmation at order
header level
Orders can be confirmed at the order header level, which can drive
the automatic backflush of material consumption for all
operations.
You can confirm production orders operation by operation. In a lean, process-oriented
production environment, confirmation of a milestone operation at the end of a production
order may be sufficient. The order is confirmed either upon receiving the product in the
finished products warehouse, or at the ramp just before delivery to your customer. If you
create the necessary organizational requirements, you can confirm all operations and
materials with a single confirmation transaction.
Goods Receipt
Goods receipts to stock can be automatically posted when you confirm the specified
operation in a production order. Alternatively, you can report goods receipts in a separate
transaction.
Goods receipts can be processed as follows:
Lesson: Processing Production Orders
© Copyright . All rights reserved. 119
Ɣ
For partial deliveries from production by posting them directly to available stock
Ɣ
For partial deliveries from production by posting them to quality inspection stock
Ɣ
From co-products and by-products
Goods receipt processing generates a credit posting to the production order that
corresponds to the value of the product quantity based on its standard price. SAP ERP debits
the value in the general ledger (G/L) to the stock account for finished products and credits a
specific revenue account, which represents the value of goods produced. You assign the
general ledger accounts when you set up the system.
How to Confirm a Production Order and Goods Receipt
1. From the SAP Easy Access screen, choose Logistics -> Production -> Shop Floor Control ->
Confirmation -> Enter -> CO15 For Order.
2.
Enter the production order you created and choose Enter .
3.
Choose Save to confirm the production order and save the goods receipt.
Unit 4: Logistics
120 © Copyright . All rights reserved.
Unit 4
Exercise 5
Create and Release a Production Order
This exercise is modularized. The CATT created the planned order numbers in the table to
allow participants to complete the exercise. If you are delivering a regular ILT class, you may
elect to have students use the planned order number they created in the previous exercise.
You are responsible for production orders and have received a new order. For this reason, you
must create and release the production order.
Use the stock/requirements list to confirm creation and processing of the production order.
Group Number Planned Order
Number
Group Number Planned Order
Number
00 37031 16 37047
01 37032 17 37048
02 37033 18 37049
03 37034 19 37050
04 37035 20 37051
05 37036 21 37052
06 37037 22 37053
07 37038 23 37054
08 37039 24 37055
09 37040 25 37056
10 37041 26 37057
11 37042 27 37058
12 37043 28 37059
13 37044 29 37060
14 37045 30 37061
15 37046
1. Using the information provided in the table, create a production order. Do not forget to
release your order before posting. Record your production order in the table.
Field Data
Planned Order The planned order for your group
## from the table provided.
Order type PP01
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Field Data
Production Order
2. Access the stock/requirements list to display the production order.
122 © Copyright . All rights reserved.
Unit 4
Solution 5
Create and Release a Production Order
This exercise is modularized. The CATT created the planned order numbers in the table to
allow participants to complete the exercise. If you are delivering a regular ILT class, you may
elect to have students use the planned order number they created in the previous exercise.
You are responsible for production orders and have received a new order. For this reason, you
must create and release the production order.
Use the stock/requirements list to confirm creation and processing of the production order.
Group Number Planned Order
Number
Group Number Planned Order
Number
00 37031 16 37047
01 37032 17 37048
02 37033 18 37049
03 37034 19 37050
04 37035 20 37051
05 37036 21 37052
06 37037 22 37053
07 37038 23 37054
08 37039 24 37055
09 37040 25 37056
10 37041 26 37057
11 37042 27 37058
12 37043 28 37059
13 37044 29 37060
14 37045 30 37061
15 37046
1. Using the information provided in the table, create a production order. Do not forget to
release your order before posting. Record your production order in the table.
Field Data
Planned Order The planned order for your group
## from the table provided.
Order type PP01
© Copyright . All rights reserved. 123
Field Data
Production Order
a) From the SAP Easy Access screen, choose Logistics -> Production -> Shop Floor
Control -> Order -> Create .
b)
Choose From Planned Order .
c) Enter Planned Order: (The planned order for your group ## from the table provided)
d) Enter Order Type: PP01.
Hint:
Order type PP01 should default.
e)
Choose Enter .
f)
From the application toolbar, choose Release Order .
g)
Choose Save .
h) Record your production order in the space provided in the table.
i)
Choose Exit to exit the screen and return to the SAP Easy Access menu.
2. Access the stock/requirements list to display the production order.
a) From the SAP Easy Access screen, choose Logistics -> Production -> Shop Floor
Control -> Information System.
b)
Choose Stock/Requirements List .
c) Enter Material: R-F4##.
d) Enter Plant: 1000.
Note:
The information will default.
e)
Choose Enter .
f)
Choose Details of element .
g) A dialog box opens.
h)
From within the dialog box, choose Display Element to display the production order.
i)
Choose Exit twice to leave the stock/requirements list and return to the SAP Easy
Access screen.
124 © Copyright . All rights reserved.
Unit 4
Exercise 6
Confirm a Production Order and Goods
Receipt
This exercise is a separate module. The CATT created the production order numbers in the
table to allow participants to complete the exercise. If you are delivering a regular ILT class,
you may elect to have students use the purchase order number they created in the previous
exercise.
Group Number Production Order
Number
Group Number Production Order
Number
00 60002700 16 60002716
01 60002701 17 60002717
02 60002702 18 60002718
03 60002703 19 60002719
04 60002704 20 60002720
05 60002705 21 60002721
06 60002706 22 60002722
07 60002707 23 60002723
08 60002708 24 60002724
09 60002709 25 60002725
10 60002710 26 60002726
11 60002711 27 60002727
12 60002712 28 60002728
13 60002713 29 60002729
14 60002714 30 60002730
15 60002715
You are responsible for maintaining production orders and goods receipts and have received
a new order. You must now confirm the production order and post the goods receipt.
1. From the SAP Easy Access screen, choose Logistics -> Production -> Shop Floor Control -
> Confirmation -> Enter -> CO15 For Order.
2. Enter the production order for your group number from the table provided and choose ->
Enter .
3.
Choose -> Save to confirm the production order and save the goods receipt.
© Copyright . All rights reserved. 125
126 © Copyright . All rights reserved.
Unit 4
Solution 6
Confirm a Production Order and Goods
Receipt
This exercise is a separate module. The CATT created the production order numbers in the
table to allow participants to complete the exercise. If you are delivering a regular ILT class,
you may elect to have students use the purchase order number they created in the previous
exercise.
Group Number Production Order
Number
Group Number Production Order
Number
00 60002700 16 60002716
01 60002701 17 60002717
02 60002702 18 60002718
03 60002703 19 60002719
04 60002704 20 60002720
05 60002705 21 60002721
06 60002706 22 60002722
07 60002707 23 60002723
08 60002708 24 60002724
09 60002709 25 60002725
10 60002710 26 60002726
11 60002711 27 60002727
12 60002712 28 60002728
13 60002713 29 60002729
14 60002714 30 60002730
15 60002715
You are responsible for maintaining production orders and goods receipts and have received
a new order. You must now confirm the production order and post the goods receipt.
1. From the SAP Easy Access screen, choose Logistics -> Production -> Shop Floor Control -
> Confirmation -> Enter -> CO15 For Order.
2. Enter the production order for your group number from the table provided and choose ->
Enter .
3.
Choose -> Save to confirm the production order and save the goods receipt.
© Copyright . All rights reserved. 127
128 © Copyright . All rights reserved.
LESSON SUMMARY
You should now be able to:
Ɣ
Create and release a production order
Ɣ
Confirm a production order and goods receipt
Lesson: Processing Production Orders
© Copyright . All rights reserved. 129
Unit 4
Lesson 5
109
Using Supply Chain Management
LESSON OVERVIEW
This lesson shows you how to use SAP Supply Chain Management to manage supply and
demand.
Business Example
You are responsible for global planning and must ensure deliveries are made from the nearest
distribution center. For this reason, you require the following knowledge:
Ɣ
A good understanding of supply chain collaboration
Ɣ
A good understanding of supply chain execution
Ɣ
A good understanding of supply chain coordination
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Ɣ
Utilize SAP Supply Chain Management to manage supply and demand
The Supply Chain
Production is emphasized in SAP SCM, but it also incorporates functionalities for Sales Order
and Purchase Order Processing. SAP SCM has a strong impact on SAP CRM and SAP SRM.
SAP CRM uses the APO component from SAP SCM for the Global-ATP (availability to
promise). With the actual release of SAP SCM, it is also extended by Extended Warehouse
Management (EWM). Transportation Management (TM) is based on SAP SCM. This lesson
focuses on the extended features for the production planing. To view a demonstration of
SCM, refer participants to the service marketplace.
Today’s fast-paced business environment places increasing pressure on companies to
balance the push and pull of supply and demand. Accomplishing this requires an adaptive
supply network driven by real-time customer demand and 24x7 supply monitoring.
Your supply chain must:
Ɣ
Meet the highest levels of demand accuracy
Ɣ
Have a high level of customer satisfaction
Ɣ
Fully support order, product, execution tracking, and logistics
Ɣ
Have smooth synchronization between fulfilment and transportation operations
You can balance between supply and demand by ensuring the most profitable match possible
between supply and demand.
130 © Copyright . All rights reserved.
Traditional enterprise resource planning (ERP) systems allow plants and distribution centers
to plan timely and cost-efficient replenishment. In today’s environment, you must be able to
plan the entire supply chain, not just the locations inside your company.
Figure 37: SAP SCM
The Supply Chain Solution
Businesses must be able to:
Ɣ
Plan timely and cost-efficient replenishment throughout the entire supply chain
Ɣ
Quickly react to constantly changing business relationships, customer expectations, and
business processes within the supply chain
Ɣ
Manage the supply chain on a global basis
Figure 38: The Supply Chain
To meet supply chain challenges, software solutions must:
Ɣ
Provide immediate visibility to all supply and demand information
Lesson: Using Supply Chain Management
© Copyright . All rights reserved. 131
Ɣ
Ensure replenishment plans are synchronized throughout the entire supply chain
Ɣ
Provide modeling tools to help determine the best approach to reducing overall cycle time
in the network
Ɣ
Support buying and selling products and services over the Internet
Ɣ
Allow automation of business process between suppliers and customers in the supply
chain
The ultimate goal of supply chain management is to perform just-in-time delivery of goods
and services to all locations in the supply chain, at the lowest cost possible. This includes
goods and services such as purchasing, manufacturing, transportation, storage, and
handling.
SAP Supply Chain Management (SAP SCM) is the only solution that delivers a complete set of
features and functions for building adaptive supply chain networks.
Features and functions of SAP Supply Chain Management include the following:
Planning: SAP SCM enables you to model supply chains by providing comprehensive
planning capabilities, including supply chain design, demand and supply
planning, manufacturing planning, and transportation planning.
Execution: SAP SCM integrates planning, promising, logistics, and transactional
systems through materials management, manufacturing execution, order
promising, transportation execution, and warehouse management.
Coordination: SAP SCM allows you to monitor and analyze processes both within and
outside your company by providing supply chain event management and
supply chain performance management.
Collaboration: SAP SCM enables you to share information and set and achieve common
supply chain goals through Collaborative Planning, Forecasting and
Replenishment (CPFR), support for vendor-managed inventory (VMI), and
support for supplier-managed inventory (SMI).
Elements of Supply Chain Execution
What is Supply Chain Execution? It is sales order management, procurement and
production, plus logistics execution. These activities happen mostly in SAP ERP. SCM
delivers additional functions like optimization (transportation planning, TP/VS, EWM) and G-
ATP (global availability check).
Elements of supply chain execution include the following:
Materials
management
SAP SCM ensures that the materials required for manufacturing are in
the right place at the right time by sharing information on inventory and
procurement orders.
Manufacturing
execution
SAP SCM supports all production processes, including engineer-to-
order, configure-to-order, make-to-order, and make-to-stock. It also
generates optimized production schedules that take into account real-
time material and capacity constraints. By integrating manufacturing
with other supply chain processes, SAP SCM enables a rapid, flexible
response to engineering changes and customer requirements.
Unit 4: Logistics
132 © Copyright . All rights reserved.
Order promising Based on the Global Available-to-Promise (Global ATP) capability, order
promising receives queries from order management or CRM systems.
Global ATP determines when a product is available across a fulfillment
network or when it can be built. It also shows how much the product will
cost, and how long it will take to deliver. Order promising is the critical
link between order management or CRM systems and supply chain
planning systems. Order promising provides a window into product
availability.
Transportation
execution
SAP SCM allows distributed enterprises to manage transportation from a
centralized location or from locations throughout business units.
Transportation managers consolidate orders and optimize shipments
from suppliers to customers to achieve maximum efficiency for their
transportation dollars. They also consider transportation constraints and
costs while ensuring time-definite deliveries.
SAP Supply Chain Management supports the following activities:
Ɣ
Shipment tendering and booking: select and book a service provider for the shipment of
the goods
Ɣ
Carrier selection: select preferred carriers
Ɣ
Freight building: load the truck according to the deliver schedule of the freight
Ɣ
Freight cost calculation,: calculate the cost of freight
Ɣ
Shipment cost settlement: Calculate the total cost of the shipment and finalize the freight
cost
Ɣ
Document printing: print documents for logistics execution
Ɣ
International trade management, such as denied-party list screening and embargo lists:
comply with global trade laws
Warehouse Management
Warehouse Management reconciles open purchase orders with incoming shipments,
supports a putaway system that remembers where goods are stored, and optimizes
employee picking assignments. Warehouse Management also supports warehousing tasks
such as labeling, kitting, and deferred handling.
There is no graphic for Supply Chain Coordination
Supply Chain Coordination
Supply Chain Event Management
Supply chain event management provides insight into changes in plans that occur across the
supply chain. Monitoring at every stage of the supply chain process provides visibility from
price quotation to procurement to product delivery. Supply chain event management also
distributes alerts and recommends actions when key events are missed. Detailed reports on
supply chain status are also available.
Supply Chain Performance Management
Supply chain performance management measures, monitors, and displays key performance
indicators associated with supply chain processes. It enables decision makers to proactively
Lesson: Using Supply Chain Management
© Copyright . All rights reserved. 133
control the effectiveness of the extended supply chain and to share this insight with business
partners.
Collaboration Elements of Supply Chain Management
To reduce costs, you must foster collaborative relationships with suppliers, outsource
manufacturers, and customers.
Figure 39: Supply Network Collaboration
SAP Supply Network Collaboration, included in SAP SCM, helps you connect to and
collaborate with the following:
Suppliers Give them easy and seamless access to supply chain information to
facilitate your ability to synchronize supply with demand.
Customers Provide broad capabilities for replenishment, including minimum-
based and maximum-based vendor-managed inventory and exclusion
of promotions and transport load building.
Contract
manufacturers
Provide easy, seamless access to supply chain information by
extending visibility and collaborative processes to manufacturing
processes.
Integration
The name of the component is no longer SAP APO. With Release 4.0 the name has changed
to SAP SCM. APO is a part inside SAP SCM which also includes SNC (Supply Network
Collaboration (formerly known as inventory collaboration hub), EM or SCEM (Event
Manager), and EWM (Extended Warehouse Management). There maybe more in the future.
SAP TM (Transportation Management) is based on SCM, but usually requires a standalone
installation.
The two main components inthe management of a supply chain are SAP ERP and SAP Supply
Chain Management (SAP SCM). While most of the execution processes are performed in SAP
ERP, SAP SCM optimizes planning and delivers additional functionality for coordination and
collaboration.
SAP SCM also adds additional execution functionality through Global Available-to-Promise or
Extended Warehouse Management.
Unit 4: Logistics
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Supply Chain Management
FACILITATED DISCUSSION
Ask participants for their business experiences that relate to the lesson material.
LESSON SUMMARY
You should now be able to:
Ɣ
Utilize SAP Supply Chain Management to manage supply and demand
Lesson: Using Supply Chain Management
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Unit 4
Lesson 6
114
Managing Sales Orders
LESSON OVERVIEW
This lesson shows you how to create a sales order.
Business Example
You are responsible for managing sales orders and must be able to create sales orders. For
this reason, you require the following knowledge:
Ɣ
A good understanding of sales order processes
Ɣ
A good understanding of creating a sales order
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Ɣ
Create a sales order
Sales Orders
Organizational units and master data, as explained in the unit System Wide Concepts are
used to create sales documents so you can refer to this unit. The sales order is delivered and
a goods issue is posted when the material leaves the warehouse.
Sales order management in SAP ERP provides insight into back-office sales processes.
Figure 40: Sales Order Management
The sales order processing (or order-to-cash) scenario describes the complete process.
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Sales order management includes the following processes and basic functions:
1. Sales order:
The sales order can adopt information from the pre-sales documents (a quotation or an
inquiry). Pre-sales activities can be used as a reference during the creation of a sales
order. Sales scheduling agreements or sales contracts (long-term sales agreements) can
also be created with reference to a sales order and are supported by the sales process
steps. During the creation of the sales order, the availability of the material is checked to
confirm the customer's requested delivery date.
2. Availability check: The availability of required material is confirmed.
3. Outbound delivery: An outbound delivery is the basis for a process where the goods are
physically moved, as well as for the posting of the goods issue. Picking can be fulfilled
using the warehouse management system, and transportation is planned and carried out.
4. Transportation: Transportation includes the selection of the vendor to transport the
finished product to the customer.
5. Picking: Take goods from a storage location and stage the goods in a picking area, where
the goods are prepared for shipping.
6. Goods issue: Warehouse stock for the delivery is reduced and the value of the stock is
posted to the balance sheet account in inventory accounting.
7. Billing: Calculate pricing and taxes and check credit limits. Invoice the sales order.
8. Payment processing: Create the posting in financial accounting.
Sales Order Creation
During sales order creation, the system carries out basic functions. System configuration
determines if these basic functions are completely automated or require manual processing.
The sales document stores data resulting from the basic functions. This data includes, for
example, shipping dates, confirmed quantities, prices, and discounts. The resulting data can
be displayed by a user and, in some cases during subsequent processing, it can be manually
changed by the user.
Figure 41: Sales Order
Sales orders can be created in various ways. Sales order management provides an e-
commerce platform through which products can be sold.
Lesson: Managing Sales Orders
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Sales orders can be created in the following ways:
Ɣ
Over the Internet using catalog browsing
Ɣ
Product search
Ɣ
Shopping basket
Ɣ
Order history
How to Create a Sales Order
How to create a sales order.
1. From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> Sales ->
Order -> VA01 Create .
2. Using the data specified in the table, create a sales order.
Field Data
Order type Standard Order
(OR)
Sales Organization 1000
(Germany Frankfurt)
Distribution channel 10
(Final customer sales)
Division 00
(Cross-division)
Sold-to party RohrerXX
(Rohrer AG Gr.XX)
Purchase order number. Sales Order XX
Requested delivery date <Today + 1 week>
Material R-F2XX
(Pump Precision 1XX)
Order Quantity 10
The required steps are detailed in the Create a Sales Orderexercise.
3.
Choose Save .
Hint:
When you save the sales order, a message is displayed confirming the sales
order document. The sales order document number is presented on the
status bar.
Unit 4: Logistics
138 © Copyright . All rights reserved.
The sales order document has now been saved and the information entered is recorded.
Because of the type of order, the material is now relevant for materials planning and will be
relevant for materials anagement forecasting and planning.
Lesson: Managing Sales Orders
© Copyright . All rights reserved. 139
Unit 4
Exercise 7
Create a Sales Order
Business Example
You are responsible for the maintenance of sales orders and have received an new order from
a customer. You must now enter the order into the system.
Create a Sales Order
1. Using the information provided in the table, create a standard order.
Field Data
Order Type OR
(Standard order)
Sales organization 1000
(Germany Frankfurt)
Distribution channel 10
(Final customer sales)
Division
00
(Cross-division)
2. Using the information provided in the table, continue creating the order. Record the sales
order document number.
Record the sales order document.
Field Data
Sold-to party Rohrer##
(Rohrer AG Gr.##)
Purch. order no. Group—##
Req. deliv.date <Today + 1 week>
Material R-F2##
(Pump)
Order quantity
10
Sales order
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Unit 4
Solution 7
Create a Sales Order
Business Example
You are responsible for the maintenance of sales orders and have received an new order from
a customer. You must now enter the order into the system.
Create a Sales Order
1. Using the information provided in the table, create a standard order.
Field Data
Order Type OR
(Standard order)
Sales organization 1000
(Germany Frankfurt)
Distribution channel 10
(Final customer sales)
Division
00
(Cross-division)
a) From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> Sales -
> Order .
b)
Choose Create .
c) Enter Order Type: OR.
d) Enter Sales Organization: 1000.
e) Enter Distribution Channel: 10.
f) Enter Division: 00.
g)
Choose Enter .
2. Using the information provided in the table, continue creating the order. Record the sales
order document number.
Record the sales order document.
Field Data
Sold-to party Rohrer##
(Rohrer AG Gr.##)
Purch. order no. Group—##
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Field Data
Req. deliv.date <Today + 1 week>
Material R-F2##
(Pump)
Order quantity
10
Sales order
a) Enter Sold-to party: Rohrer##.
b) Enter Purch. order no.: Group-##.
c)
Choose Enter .
Hint:
Make sure you are on the Sales tab on the order entry screen.
d) Enter Req. deliv.date: <Today + 1 week>.
e)
Choose Enter .
f) Enter Material: R-F2##.
g) Enter Order quantity: 10.
h)
Choose Enter .
Hint:
If a dialog box appears, choose Enter to confirm that you have read the
information.
i)
Choose Save and record the document number in the table provided.
Hint:
The system displays a message that the sales order has been saved with
the sales document number. This number appears on the status bar.
j)
Choose Exit to exit the screen and return to the SAP Easy Access screen.
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LESSON SUMMARY
You should now be able to:
Ɣ
Create a sales order
Lesson: Managing Sales Orders
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Unit 4
Lesson 7
121
Creating Delivery Process Documents
LESSON OVERVIEW
This lesson shows you how to create a delivery and post a goods issue.
Business Example
You are responsible for delivery procedures, and must be able to explain the process, create a
delivery document, and process a goods issue. For this reason, you require the following
knowledge:
Ɣ
A good understanding of the delivery process
Ɣ
A good understanding of how to create a delivery
Ɣ
A good understanding of how to post a goods issue
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Ɣ
Create a delivery and post a goods issue
Delivery Process
Logistics execution is the physical movement of goods, from the procurement of raw material
through to the shipment of the sales item. Shipping is an important part of the logistics chain
and a subsequent activity of the core sales process.
Figure 42: Delivery and Goods Issue
The outbound delivery document is a central object of the goods issue process and is used to
support the delivery process. Processes supported include all shipping activities, such as
picking, packing, transportation, and goods issue. During the outbound delivery process,
shipping and planning information is recorded, the status of shipping activities is monitored,
and the data accumulated during shipping processing is documented. Shipping activities are
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initiated when the outbound delivery is created. Data that is generated during shipping
processing is included in the delivery.
Delivery Process Details
An outbound delivery can be created in the following ways:
Ɣ
With reference to a sales order
Ɣ
With reference to a stock transport order
Ɣ
With reference to a subcontract order
Ɣ
With reference to a project
Ɣ
Without any reference
Outbound deliveries can be created automatically or manually using worklists. These
deliveries can include complete or partial orders or order combinations. Outbound deliveries
can be combined to form a single group of deliveries.
Warehouse and sales overview reports allow you to monitor created outbound deliveries and
outstanding sales activities.
Picking the Delivery
The picking process involves taking goods from a storage location and staging the goods in a
picking area where the goods will be prepared for shipping. A picking status is recorded in
each delivery item for the purpose of scheduling and monitoring. This status indicates where
the item is in the picking procedure.
System settings allow picking to be carried out in the following ways:
Ɣ
Automatically (during outbound delivery creation)
Ɣ
Routinely (at certain times)
Ɣ
Manually (via an employee request)
For a goods issue to be posted, the delivery quantity must equal the picking quantity in the
outbound delivery. This prerequisite requirement is included in the standard system settings.
Goods Issue Posting Functions
The outbound delivery forms the basis of the goods issue posting. The data required for the
goods issue posting is copied from the outbound delivery to the goods issue document. The
goods issue document cannot be changed manually. Any changes must be made in the
outbound delivery itself. After the goods issue is posted for an outbound delivery, the scope
for changing the delivery document becomes very limited. This prevents any discrepancies
between the goods issue document and the outbound delivery. In this way, you can be sure
that the goods issue document is an accurate reflection of the outbound delivery.
When you post a goods issue for an outbound delivery, the following functions are carried
out:
Ɣ
Warehouse stock of the material is reduced by the delivery quantity.
Ɣ
Value changes are posted to the balance sheet account in inventory accounting.
Ɣ
Requirements are reduced by the delivery quantity.
Ɣ
The serial number status is updated.
Lesson: Creating Delivery Process Documents
© Copyright . All rights reserved. 145
Ɣ
Goods issue posting is automatically recorded in the document flow.
Ɣ
Stock determination is executed for the vendor's consignment stock.
Ɣ
A worklist for the proof of delivery is generated.
You can post goods issues in the following ways:
Ɣ
Automatically (during outbound delivery creation)
Ɣ
Routinely (at certain times)
Ɣ
Manually (via an employee request)
How to Create a Delivery
How to create a delivery. This is basis for the warehouse activity and the goods issue.
1. From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> Shipping
and Transportation -> Outbound Delivery -> Create -> Single Document -> VL01N With
Reference to Sales Order.
2. Use the sales order number created by the CATT. If you are using group 00, this will be
14000. Alternatively, refer to the table in the exercise for additional numbers.
Hint:
The shipping point is 1000.
Caution:
With the automatically entered Selection date (the actual date) the system
will give you an error message: Order cannot be delivered (No schedule
lines due for delivery up to the selected date). You have to move the date
forward several days. You can try to avoid this message by changing the date
immediately on the entry screen, or show this and explain the “problem”, as
the students will run into the same problem in the exercise!
The required steps are detailed in the Create a Delivery exercise.
3. Briefly explain the delivery.
4.
Choose Save .
You will receive a system message that a delivery document has been created.
How to Post a Goods Issue
1. From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> Shipping
and Transportation -> Outbound Delivery -> Change -> VL02N Single Document or
Logistics -> Sales and Distribution -> Shipping and Transportation -> Post Goods Issue ->
VL02N Outbound Delivery Single Document .
Unit 4: Logistics
146 © Copyright . All rights reserved.
2. Post a goods issue for the delivery created in the previous demo.
Note:
The number of the last delivery should already appear in the Delivery field. Use
the sales order created by the CATT and the associated delivery. If you are
using group 00, the sales order number will be 14000.
Hint:
You may use the Post Goods Issue button on the entry screen or use it when
you display the details of the delivery in change mode.
After pressing the Post Goods Issue button,you receive a system message that the
Delivery has been saved.
The required steps are detailed in the Create a Deliveryexercise.
Lesson: Creating Delivery Process Documents
© Copyright . All rights reserved. 147
Unit 4
Exercise 8
Create a Delivery and Post a Goods Issue
Business Example
This exercise is modularized. The CATT created the sales order numbers in the table to allow
participants to complete the exercise. If you are delivering a regular ILT class, you may elect
to have students use the sales order number they created in the previous exercise.
You are responsible for deliveries and have been notified that your customer's order is ready
to ship. You must now create a delivery and post a goods issue.
Create a Delivery and Post a Goods Issue
Group Number Sales Order Number Group Number Sales Order Number
00 14000 16 14016
01 14001 17 14017
02 14002 18 14018
03 14003 19 14019
04 14004 20 14020
05 14005 21 14021
06 14006 22 14022
07 14007 23 14023
08 14008 24 14024
09 14009 25 14025
10 14010 26 14026
11 14011 27 14027
12 14012 28 14028
13 14013 29 14029
14 14014 30 14030
15 14015
Create a delivery document with reference to your customer's order. Post the delivery
document and verify that the shipping documents were processed using document flow.
Note:
This exercise uses the sales order number indicated for your group number, as
shown in the table.
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1. Using the information provided in the table, create a delivery document.
Field Data
Order Use the sales order number for
your group number ## provided in
the table.
Shipping point 1000
(Shipping Point Hamburg)
Selection Date <Today + 1 week>
Delivery
2. Post the goods issue for the delivery and view the document flow. Record your findings in
the table.
Hint:
You have to save the delivery before you can post the goods issue. You cannot
post the goods issue while you are still in the transaction to create the
delivery.
Document Document number Status
Standard order
Delivery
WMS transfer order
GD goods issue
© Copyright . All rights reserved. 149
Unit 4
Solution 8
Create a Delivery and Post a Goods Issue
Business Example
This exercise is modularized. The CATT created the sales order numbers in the table to allow
participants to complete the exercise. If you are delivering a regular ILT class, you may elect
to have students use the sales order number they created in the previous exercise.
You are responsible for deliveries and have been notified that your customer's order is ready
to ship. You must now create a delivery and post a goods issue.
Create a Delivery and Post a Goods Issue
Group Number Sales Order Number Group Number Sales Order Number
00 14000 16 14016
01 14001 17 14017
02 14002 18 14018
03 14003 19 14019
04 14004 20 14020
05 14005 21 14021
06 14006 22 14022
07 14007 23 14023
08 14008 24 14024
09 14009 25 14025
10 14010 26 14026
11 14011 27 14027
12 14012 28 14028
13 14013 29 14029
14 14014 30 14030
15 14015
Create a delivery document with reference to your customer's order. Post the delivery
document and verify that the shipping documents were processed using document flow.
Note:
This exercise uses the sales order number indicated for your group number, as
shown in the table.
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1. Using the information provided in the table, create a delivery document.
Field Data
Order Use the sales order number for
your group number ## provided in
the table.
Shipping point 1000
(Shipping Point Hamburg)
Selection Date <Today + 1 week>
Delivery
a) From the SAP Easy Accessscreen, choose Logistics -> Sales and Distribution ->
Shipping and Transportation -> Outbound delivery -> Create -> Single Document .
b)
Choose With Reference to Sales Order .
c) Enter Shipping point: 1000.
d) Enter Selection date: <Today + 1 week>.
e) If needed, enter the Order: Enter the sales order number for your group
## provided in the table.
Note:
Change the default sales order to the sales order provided in the table.
f)
Choose Enter .
g)
Choose Save . Record the delivery document number in the table provided.
2. Post the goods issue for the delivery and view the document flow. Record your findings in
the table.
Hint:
You have to save the delivery before you can post the goods issue. You cannot
post the goods issue while you are still in the transaction to create the
delivery.
Document Document number Status
Standard order
Delivery
WMS transfer order
GD goods issue
a) From the SAP Easy Access screen, choose Logistics -> Sales and Distribution ->
Shipping and Transportation -> Post Goods Issue .
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b)
Choose Outbound Delivery Single Document .
Hint:
The delivery document number should default.
c) Choose the Post goods issue icon from the application toolbar.
Hint:
The document will be saved and the posting will be performed. This is
indicated by the message in the status bar.
Caution:
Do not back out of the Change Outbound Delivery screen!
d)
Choose Document flow . Record the documents in the table provided.
e)
Choose Exit to exit the screen.
152 © Copyright . All rights reserved.
LESSON SUMMARY
You should now be able to:
Ɣ
Create a delivery and post a goods issue
Lesson: Creating Delivery Process Documents
© Copyright . All rights reserved. 153
Unit 4
Lesson 8
130
Creating Billing Documents
LESSON OVERVIEW
This lesson shows you how to create a sales order billing document.
Business Example
You are responsible for the billing process and must be able to create billing documents and
verify the accuracy of billings. For this reason, you require the following knowledge:
Ɣ
A good understanding of the billing process
Ɣ
A good understanding of the creation of billing documents
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Ɣ
Create a sales order billing document
Billing Documents
This lesson explains the billing process in SAP ERP.
Billing represents the final processing stage for a business transaction in sales order
processing.
Billing information is available at the following stages of the order and delivery process:
Ɣ
Create invoices based on deliveries or services.
Ɣ
Issue credit and debit memos and invoices.
Ɣ
Cancel billing transactions.
Ɣ
Review pricing functions.
Ɣ
Issue rebates.
Ɣ
Transferbilling data to financial accounting.
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Figure 43: Billing
It is important to point out billing creates another document in the sales order process. The
billing document is created with reference to the original sales order and invoice the
customer. SAP uses the term billing and invoice interchangeably. When the billing document
is created in the sales process, an associated accounting document is created recording the
receivable in the customers' account.
The process of creating the accounting document from the billing document is automatic.
Master data and organizational elements determine which account in the general ledger the
accounting information posts to.
Billing is integrated into the organizational structures, just like all parts of sales order
processing in SAP ERP. You can assign a specific sales organization, a distribution channel,
and a division to the billing transactions. The organizational structures of the accounting
department include the company codes and the sales organizations assigned to the company
codes. These are important for the interface between billing and financial accounting.
During billing processing, you can create, change, and delete billing documents.
It is possible to create billing documents in the following ways:
Ɣ
With reference to a sales order document
Ɣ
With reference to a delivery document
Ɣ
With reference to external transactions
Ɣ
By having the system automatically process a billing due list as a background task
Ɣ
By manually processing from a worklist
Ɣ
By creating a billing document explicitly
Ɣ
By combining several sales order documents into a collective billing document
Ɣ
By billing one or more sales order documents with several billing documents (this is called
an invoice split)
Ɣ
By creating an individual billing document for every sales document
Lesson: Creating Billing Documents
© Copyright . All rights reserved. 155
Billing and Financial Accounting
The system automatically posts billing amounts to the appropriate accounts by means of
account determination. Account determination controls the posting of billing amounts to the
appropriate general ledger accounts.
Costs and revenue can be posted to the following accounts:
Account Account
Customer accounts receivable General ledger (for example, a cash clearing account)
Revenue Sales deductions
Accruals (for rebate agreements) Accrual account
Accrual clearing account
Document Flow
The document flow provides access to all related documents within the sales processes. Use
document flow as an example to show that documents are referenced to one another.
Sales documents form part of a chain of interrelated documents displayed in a document
flow. A document flow records each activity executed during the processing of the sales
document, and includes activities resulting from various interactions with customers.
An example of a document flow is as follows:
Ɣ
A customer's telephone inquiry is recorded in the system.
Ɣ
The customer requests a quotation and a quote is created referencing the inquiry.
Ɣ
The customer later places an order based on the quotation, and a sales order is created
with reference to the quotation.
Ɣ
The goods are shipped.
Ɣ
An invoice is issued to the customer.
Unit 4: Logistics
156 © Copyright . All rights reserved.
Figure 44: Document Flow
Continuing the example of document flow: After delivery of the goods, the customer claims
credit for some damaged goods and you create a free-of-charge delivery with reference to the
sales order. The entire chain of documents–the inquiry, the quotation, the sales order, the
delivery, the invoice, and the subsequent free-of-charge delivery–creates a document flow, or
history. The flow of data from one document to another reduces manual activity and makes
problem resolution easier.
How to Create a Sales Order Billing Document and View the Document Flow
How to create a sales order billing document and display the document flow.
1. From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> Billing ->
Billing Document -> VF01 Create.
2. Create a billing document for the delivery created by the CATT.
3. Save your entries. The document is saved and the posting is performed. This is indicated
by the message in the status bar.
Note:
The sales order was created by the CATT. If you are using group number 00,
user material document number 4900000296. Refer to the table in the
exercise for additional numbers.
The display of document flow has changed to an ALV display with ECC (in case you have
participants who have worked on a previous version already).
Note:
You can also show the document flow from other documents (such as a
delivery or billing document).
Lesson: Creating Billing Documents
© Copyright . All rights reserved. 157
Unit 4
Exercise 9
Create a Sales Order Billing Document
Business Example
This exercise is modularized. The CATT created the goods issue numbers in the table to
allow participants to complete the exercise. If you are delivering a regular ILT class, you may
elect to have students use the goods issue number they created in the previous exercise.
You are responsible for sales orders and have received an order from a customer. You must
now create a sales order billing document.
Create a Sales Order Billing Document
1. Using the information provided in the table, create a sales order billing document.
158 © Copyright . All rights reserved.
Unit 4
Solution 9
Create a Sales Order Billing Document
Business Example
This exercise is modularized. The CATT created the goods issue numbers in the table to
allow participants to complete the exercise. If you are delivering a regular ILT class, you may
elect to have students use the goods issue number they created in the previous exercise.
You are responsible for sales orders and have received an order from a customer. You must
now create a sales order billing document.
Create a Sales Order Billing Document
1. Using the information provided in the table, create a sales order billing document.
a) From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> Billing
-> Billing Document .
b)
Choose Create .
c) Enter Your Material Document Number from the table provided.
d)
Choose Save . The document is saved and the posting is performed. This is indicated
by the message in the status bar.
e)
Choose -> Exit to return to the SAP Easy Access screen.
© Copyright . All rights reserved. 159
LESSON SUMMARY
You should now be able to:
Ɣ
Create a sales order billing document
Unit 4: Logistics
160 © Copyright . All rights reserved.
Unit 4
Lesson 9
136
Using Customer Relationship Management
LESSON OVERVIEW
In this lesson you will learn how to use SAP Customer Relationship Management.
Explain that SAP CRM is acomponent used to provide additional functionality.
Business Example
You are responsible for maintaining relationships with customers and must understand the
capabilities of SAP Customer Relationship Management. For this reason you require the
following knowledge:
Ɣ
A good understanding of how SAP Customer Relationship Management makes customers
the focus of business processes
Ɣ
A good understanding of the capabilities of SAP Customer Relationship Management
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Ɣ
Use SAP Customer Relationship Management
Customer Focus
Explain that SAP CRM is an additional component used to provide additional functionality.
Example:
Nothing is more frustrating for a salesperson than not closing a deal because the necessary
information was not available. A salesperson needs to know: What has the customer already
purchased? How profitable is the customer? Can we deliver the required quantity?
Nothing is more frustrating for customers than having to deal with a company that does not
meet their needs. Only satisfied customers will return in the future. Customer Relationship
Management has become a decisive success factor.
The challenge for large companies is to promote a local store mentality throughout all
departments and all employees. Refer participants to the service marketplace if they would
like to view a demonstration.
Customer relationship management (CRM) is the concept of making the customer the focus
of a company and its business processes. CRM must be implemented as the primary
company philosophy, and the strategies it promotes have to be adopted within the company.
The aim of all corporate activities must be to place customers at the center, and not view
them as the means to an end.
© Copyright . All rights reserved. 161
Figure 45: SAP Customer Relationship Management (SAP CRM)
Make it clear that CRM is more then just using the right software: it is a business philosophy.
The software is only a tool used to support this philosophy.
The principles of customer relationship management must predominate at all levels of the
company. CRM is intended to create and build upon long-term relationships with customers
during all phases of the business relationship.
Customer relationship management includes the following phases:
Approaching possible
customers:
A customer is interested in the company and its products (first
contact).
Gaining the customer: The company receives an order from the customer.
Service: The company ensures that the customer is satisfied with the
product or service purchased.
Keeping the customer: Specific and attentive customer support ensures that the
customer is a satisfied and loyal customer.
Traditional Knowledge
Traditional direct sales is characterized by decentralized information about the customer. In
some cases, only one employee has knowledge about the customer and the relevant contact
information. Employee turnover means that vital customer information is often lost.
Unit 4: Logistics
162 © Copyright . All rights reserved.
Figure 46: Traditional Knowledge
Often, information within a company is incomplete or inaccurate.
Knowledge with SAP CRM
Figure 47: Knowledge with SAP CRM
SAP CRM facilitates the sharing of information.
Capabilities of SAP Customer Relationship Management
SAP CRM allows every employee who needs information about customer contacts to access
all relevant information immediately. Field sales and field services enable sales
representatives to access all contact information in the field using a laptop or other mobile
device. Analyzing this information gives the company a deeper understanding of its
customers. As a result, the company can increase its service package, process queries faster,
strengthen relationships, and benefit from increased customer loyalty.
During the different phases of customer interaction, various company departments interact
with the customer. This is reflected in the key capabilities of SAP CRM.
Lesson: Using Customer Relationship Management
© Copyright . All rights reserved. 163
Sales
Sales spans all customer sales channels, ensuring seamless, scalable customer transactions.
It supplies organizations with enterprise sales, telesales, field sales, and e-selling solutions to
transact with customers anytime, anywhere.
Sales Solution Benefit
Sales planning and forecasting Report on and analyze all sales planning and
forecasting activities.
Organizational and territory management Define territories based on size, revenue,
geography, product lines, and strategic
accounts. Assign sales representatives and
identify prospects and products.
Account and contact management Capture, monitor, store, and track all critical
information about customers, prospects, and
partners.
Activity management Schedule and manage simple and complex
tasks.
Opportunity management Give your channels complete visibility into
each sales opportunity so they can capture,
manage, and monitor business contacts and
account information.
Quotation and order management Configure, price, and create quotes for
customers. Generate follow-up activities,
such as sales orders.
Billing and contract management Develop and manage long-term customer
contracts, incorporate customer agreements
into ongoing customer processes, and
monitor the sales process.
Incentive and commission management Develop, implement, and manage
compensation plans. Track current
performance and measure the potential
compensation of sales representatives based
on sales in the pipeline.
Service
Service in SAP CRM offers consolidated, operational insight enabling unparalleled service and
fulfillment appropriately matched to customer revenue potential. It equips organizations with
capabilities in the areas of customer service and support, e-service, service operations
management, and field service.
Service Solution Benefit
Multichannel service Deliver customer service through preferred
channels, such as field representatives,
interaction centers, partners, or the Internet.
Unit 4: Logistics
164 © Copyright . All rights reserved.
Service Solution Benefit
Customer service and support Manage and fulfill commitments to
customers and partners through efficient
service planning and execution. Connect the
entire service process, from initial customer
contact to final resolution and financial
settlement.
Resource planning and optimization Plan long-term resource strategies and
optimize short-term scheduling tactics.
Schedule on-site service engagements and
identify resource requirements based on
product forecasts, planned services, and
geographic product placements.
Service operations management Support single-tiered and multi-tiered service
operations, including tactical and strategic
service planning, service administration,
transactional support, and operational and
financial analytics.
Service planning and forecasting Establish service plans and forecasts that
proactively maintain products for optimum
performance and ensure the availability of
resources.
One Face to the Customer
The goal of CRM as a company philosophy is to “speak to the customer with one voice ”.
Customers receive the same information no matter which channel of communication
customers use to contact your company. All employees who have customer contact need to
know about all previous customer contacts that took place using all channels of
communication.
SAP CRM incorporates both tasks and contact channels. It covers all business tasks related
to sales, service, and marketing using the Internet, Interaction Center, and field applications.
This results in the SAP CRM solution matrix. SAP CRM includes the full integration of all tasks
and channels of communication.
Communicate with Customers
There are three basic channels of communication with the customer that are used in
traditional sales and distribution, as well as in the new business concepts of SAP CRM.
Lesson: Using Customer Relationship Management
© Copyright . All rights reserved. 165
Figure 48: Customer Interaction Channels
Channels of communication with customers include the following:
Field
applications:
Field applications are used for traditional direct contact when the
employee meets personally with and a customer.
Interaction
Center:
The Interaction Center (IC) is a central communication hub for all
telephone-based customer contact. As in a traditional call center,
employees in different departments receive customer calls, process
inquiries, and create orders. The Interaction Center can also be used as a
help desk resource. This results in a central processing point for all
customer-related information. The Interaction Center can operate
independently of the contact medium, which could be telephone, e-mail,
fax, or text messaging.
Internet e-
commerce:
CRM Web Channel is used to buy and sell products with Internet
connections (e-commerce).
Areas in which the Internet is used to buy and sell products include the following:
B2C Business to consumer: Internet business directly with end customers
B2B Business to business: Internet business between two companies
CRM Web Channel also supports other key capabilities of SAP CRM, for example, e-service.
Integration
Sales orders in SAP CRM can come from different sources.
Source of the Sales Order Description of Activity
Telesales The agent can use the Interaction Center to
create orders directly in the CRM system.
Sales Sales employees can use field sales to create
orders directly on their laptop or Personal
Digital Assistant (PDA) and then send them
to the SAP CRM system.
Internet Orders can be entered through CRM Web
Channel.
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Source of the Sales Order Description of Activity
Direct Entry in SAP CRM Orders can be entered directly in SAP CRM,
independent of the communication channel.
Orders from all sources are ultimately executed in the SAP ERP system. Business processes
such as the shipment of goods and the billing are processed in the SAP ERP system. The
completion progress is transferred to the SAP CRM system in a status update.
FACILITATED DISCUSSION
Ask participants for their business experiences that relate to the lesson material.
LESSON SUMMARY
You should now be able to:
Ɣ
Use SAP Customer Relationship Management
Lesson: Using Customer Relationship Management
© Copyright . All rights reserved. 167
Unit 4
Lesson 10
142
Using Product Lifecycle Management
LESSON OVERVIEW
This lesson outlines how SAP Product Lifecycle Management supports product development
and innovation and integrated product and asset management.
With Col.92, this lesson was extensively changed. In the previous Business Suite versions,
most PLM features were part of ERP in the ECC system. Additional products were the
cProject Suite and RPM. With Business Suite 7.0 the PLM 7.0 was also released. PLM 7.0 is
an add-on to ECC.
PLM is very complex. You should make clear there is much more then the core processes
and solutions..
From a Customer FAQ regarding PLM 7.0.
Question: Is PLM 7.0 a completely new PLM solution from SAP? I am an SAP PLM user now –
do I have to migrate?
Answer: The SAP PLM 7.0 contains amongst others a new Web UI and architecture on top of
the existing ECC 6.0 data objects Document, Material Master, Material BOM and Engineering
Change Master. Due to the major change in the UI and leap in usability, it is perceived as a
“new solution” but it is the same data objects in the background and no migration is required.
Both UIs can typically be run in parallel as well.
Question: Where can I find more information on PLM 7.0 and the PLM road map?
Answer: PLM Wiki in SAP Developer Network: https://wiki.sdn.sap.com/wiki/display/PLM
Help.sap.com -> SAP ERP -> SAP ERP Enhancement Packages -> SAP Enhancement
Package 4 for SAP ERP 6.0
Business Example
You are responsible for the management of market and customer demands and must be able
to respond quickly to these demands. For this reason you require the following knowledge:
Ɣ
A basic understanding of how SAP Product Lifecycle Management supports procurement,
production, and sales order management
Ɣ
A basic understanding of integration elements
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Ɣ
Outline the tasks associated with processes supporting product lifecycle management
Product Lifecycle Management
SAP Product Lifecycle Management (SAP PLM),enables management of the life cycle of a
product using various processes.The life cycle of a product is characterized by strong intra-
168 © Copyright . All rights reserved.
company divisions and a heterogeneous system landscape. Processes end artificially at
system and departmental limits.
Figure 49: SAP PLM
The goal of SAP PLM is to support the entire product life cycle. The life cycle of a product
includes product development, procurement, and service. Starting in product development,
the product data that is gathered is used for all subsequent processes. This enables other
areas, such as SAP Supply Chain Management, to benefit from the data. According to this
principle, an integrated product development process goes far beyond the current methods
used in product development. SAP Business Suite enables customers and vendors to be
equally involved in the extended process chains of product development.
Product and Service Leadership
Figure 50: Product and Service Leadership
Many companies focus on a set of interdisciplinary business processes, also called end-
to-end scenarios, to address the following business drivers:
Ɣ
Differentiation
Ɣ
Shortening product life cycles
Ɣ
Margin pressure
Ɣ
Increasing regulations
Lesson: Using Product Lifecycle Management
© Copyright . All rights reserved. 169
These business drivers typically cut across the value chain and span multiple departments
and organizational units.
Goals of these business drivers include the following:
Continuous product
innovation
Managing innovation includes corporate strategy, product
roadmapping, idea and concept management, feasibility assessment,
and a new product development and introduction (NPDI) process and
market launch.
Integrated product
development
Integrated product development represents the core product
definition and production ramp-up process, when the product design
and structure are defined, tested, and validated.
Product delivered as
a service
Many manufacturers of classical products make their product
benefits available to customers through service agreements. This
changes the business model from “product ” to “solution provider. ”
Embedded product
compliance
Regulations concerning safety, environmental, or other aspects of the
products are becoming more important. To comply with these
regulations, companies must take them into account during design,
manufacturing, shipment, servicing, and end-of-life phases of PLM.
SAP PLM brings together numerous benefits that help your company keep ahead of the
competition.
Benefits of SAP PLM include the following:
Ɣ
Reduce costs through measures such as effective cost control in projects or by minimizing
the maintenance costs.
Ɣ
Increase productivity by pooling information and sharing it with your partners and
customers.
Ɣ
Achieve higher productivity by quickly introducing new products to the market.
Ɣ
Gain competitive advantage by increasing customer satisfaction, for example, by involving
your customers early in the development process. This enables you to tailor your products
to the needs of both customers and the marketplace.
Unit 4: Logistics
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Key Functional Areas of SAP PLM
Figure 51: Key Functional Areas of SAP PLM
SAP Product Lifecycle Management offers all the functionality you need for integrated
product and asset management.
Features and functions of PLM include the following:
Feature / Function Description
Program and project management Program and project management provides
advanced capabilities to plan, manage, and
control the complete product development
process.
Lifecycle management Lifecycle data management provides an
environment for managing specifications,
bills of materials, routing and resource data,
project structures, and related technical
documentation throughout the product life
cycle.
Lifecycle collaboration Lifecycle collaboration supports
collaborative engineering and project
management, employing XML-based Web
standards to communicate information such
as project plans, documents, and product
structures across virtual development
teams.
Quality management Quality management provides integrated
quality management for all industries
throughout the entire product life cycle.
Enterprise asset management Enterprise asset management manages
physical assets and equipment, covering all
components of an enterprise asset
management system.
Lesson: Using Product Lifecycle Management
© Copyright . All rights reserved. 171
Feature / Function Description
Environment, health, and safety
management
Environment, health, and safety
management provides a solution for
environment, health, and safety issues by
enhancing business processes to comply
with government regulations.
SAP PLM is a complete solution. It covers the entire life cycle of a product. SAP PLM is aimed
at providers of complete solutions who develop a product for a specific customer,
manufacture and deliver this product to the customer, and then provide service activities for
the customer once the product is live.
Integration Elements
Most of the functions of SAP PLM are also core functions of SAP ERP. SAP PLM runs in the
same system as SAP ERP and is directly connected to the logistic functions in SAP ERP.
Additional functions are delivered through collaboration projects and SAP Portfolio and
Project Management.
Product Lifecycle Management
FACILITATED DISCUSSION
Ask participants for their business experiences that relate to the lesson material.
LESSON SUMMARY
You should now be able to:
Ɣ
Outline the tasks associated with processes supporting product lifecycle management
Unit 4: Logistics
172 © Copyright . All rights reserved.
Unit 4
147
Learning Assessment
1. What is the basic procurement process in an SAP system?
Choose the correct answers.
X
A Inquiry, sales order, purchase order, delivery
X
B Purchase requisition, purchase order, goods receipt, invoice receipt
X
C Sales order, production order, purchase order
X
D Goods receipt, purchase order, invoice receipt, vendor master
2. When you enter an invoice with reference to a purchase order, the system suggests data
from the purchase order and the goods receipt.
Determine whether this statement is true or false.
X
True
X
False
3. SAP SRM can only manage the direct procurement of goods and services.
Determine whether this statement is true or false.
X
True
X
False
4. Which of the following is an operational procurement process within SAP SRM?
Choose the correct answers.
X
A Design collaboration
X
B Supply strategy development
X
C Self-service procurement
X
D Supplier registration
X
E Spending analysis
© Copyright . All rights reserved. 173
5. It is impossible to create a catalog with SAP SRM.
Determine whether this statement is true or false.
X
True
X
False
6. Which of the following processes (applications) are part of the production processes?
Choose the correct answers.
X
A Sales and Operations Planning
X
B Delivery processing
X
C Material requirements planning
X
D Manufacturing execution
X
E Master production scheduling
7. Which of the following pieces of information is available in the production order?
Choose the correct answers.
X
A Order components
X
B Production dates
X
C Production instructions
X
D Order costs
X
E All of the above
X
F None of the above
8. Name the manufacturing execution process step that allows someone to enter the actual
time and activities of the various operations during the production process.
Choose the correct answers.
X
A Disaggregation
X
B Confirmation
X
C Material requirements planning
X
D Costing
Unit 4: Learning Assessment
174 © Copyright . All rights reserved.
9. Name one of the two main components of SAP Supply Chain Management.
Choose the correct answers.
X
A Customer Relationship Management
X
B Radio Frequency Identification (RFID)
X
C Global Available-to-Promise
X
D SAP ERP
10. Order promising, which includes Global Available-to-Promise, is the critical link between
which two applications?
Choose the correct answers.
X
A SAP NetWeaver and reporting
X
B SAP Supplier Relationship Management and SAP Business Information Warehouse
X
C SAP Customer Relationship Management and SAP Supply Chain Management
X
D SAP Supply Chain Management and SAP NetWeaver
11. Which of the following is the correct sales order management process?
Choose the correct answer.
X
A Picking, sales order, goods issue, billing, delivery
X
B Sales order, picking, goods issue, billing, delivery
X
C Sales order, delivery, picking, goods issue, billing
X
D Goods issue, picking, sales order, delivery, billing
12. What three activities can be performed with a delivery document?
Choose the correct answers.
X
A Picking
X
B Debit memo
X
C Packing
X
D Credit memo
X
E Goods issue
Unit 4: Learning Assessment
© Copyright . All rights reserved. 175
13. When you post goods issue on a delivery document, an accounting document is created in
financial accounting.
Determine whether this statement is true or false.
X
True
X
False
14. Which of the following is the correct sales order management process?
Choose the correct answer.
X
A Picking, sales order, goods issue, billing, delivery
X
B Sales order, picking, goods issue, billing, delivery
X
C Sales order, delivery, picking, goods issue, billing
X
D Goods issue, picking, sales order, delivery, billing
15. A billing document can be created from what two types of documents?
Choose the correct answers.
X
A Inquiry
X
B Sales order
X
C Quotation
X
D Rebate list
X
E Delivery
16. During the creation of the billing document, an accounting document is created in financial
accounting, thus creating an accounts receivable entry.
Determine whether this statement is true or false.
X
True
X
False
Unit 4: Learning Assessment
176 © Copyright . All rights reserved.
17. What SAP components are included in SAP CRM?
Choose the correct answers.
X
A SAP NetWeaver Business Information Warehouse
X
B SAP Enterprise Portal
X
C SAP ECC
X
D All of the above
X
E None of the above
18. Lifecycle data management can only be used when the design of a product is finished.
Determine whether this statement is true or false.
X
True
X
False
19. Which of the following are key functional areas of SAP PLM?
Choose the correct answers.
X
A Lifecycle data management
X
B Environment, health, and safety management
X
C Quality management
X
D Enterprise asset management
X
E Development management
Unit 4: Learning Assessment
© Copyright . All rights reserved. 177
Unit 4
152
Learning Assessment- Answers
1. What is the basic procurement process in an SAP system?
Choose the correct answers.
X
A Inquiry, sales order, purchase order, delivery
X
B Purchase requisition, purchase order, goods receipt, invoice receipt
X
C Sales order, production order, purchase order
X
D Goods receipt, purchase order, invoice receipt, vendor master
In the SAP system, the standard flow of transactions in the basic procurement process is
<MenuPath>Purchase requisition processing Purchase order processing Goods receipt
entry Invoice receipt entry.
2. When you enter an invoice with reference to a purchase order, the system suggests data
from the purchase order and the goods receipt.
Determine whether this statement is true or false.
X
True
X
False
An advantage of entering an invoice with reference to a purchase order is that the system
suggests this data, thereby eliminating the need to re-enter the data.
3. SAP SRM can only manage the direct procurement of goods and services.
Determine whether this statement is true or false.
X
True
X
False
178 © Copyright . All rights reserved.
4. Which of the following is an operational procurement process within SAP SRM?
Choose the correct answers.
X
A Design collaboration
X
B Supply strategy development
X
C Self-service procurement
X
D Supplier registration
X
E Spending analysis
5. It is impossible to create a catalog with SAP SRM.
Determine whether this statement is true or false.
X
True
X
False
6. Which of the following processes (applications) are part of the production processes?
Choose the correct answers.
X
A Sales and Operations Planning
X
B Delivery processing
X
C Material requirements planning
X
D Manufacturing execution
X
E Master production scheduling
Delivery processing is part of the functionality of sales order management. All of the other
processes listed (SOP, MRP, MPS, and manufacturing execution) are part of production.
Unit 4: Learning Assessment- Answers
© Copyright . All rights reserved. 179
7. Which of the following pieces of information is available in the production order?
Choose the correct answers.
X
A Order components
X
B Production dates
X
C Production instructions
X
D Order costs
X
E All of the above
X
F None of the above
The production order, which is the central data object in shop floor control and
manufacturing execution, contains all data relevant to production objectives, material
components, required resources, and costs.
8. Name the manufacturing execution process step that allows someone to enter the actual
time and activities of the various operations during the production process.
Choose the correct answers.
X
A Disaggregation
X
B Confirmation
X
C Material requirements planning
X
D Costing
9. Name one of the two main components of SAP Supply Chain Management.
Choose the correct answers.
X
A Customer Relationship Management
X
B Radio Frequency Identification (RFID)
X
C Global Available-to-Promise
X
D SAP ERP
Unit 4: Learning Assessment- Answers
180 © Copyright . All rights reserved.
10. Order promising, which includes Global Available-to-Promise, is the critical link between
which two applications?
Choose the correct answers.
X
A SAP NetWeaver and reporting
X
B SAP Supplier Relationship Management and SAP Business Information Warehouse
X
C SAP Customer Relationship Management and SAP Supply Chain Management
X
D SAP Supply Chain Management and SAP NetWeaver
11. Which of the following is the correct sales order management process?
Choose the correct answer.
X
A Picking, sales order, goods issue, billing, delivery
X
B Sales order, picking, goods issue, billing, delivery
X
C Sales order, delivery, picking, goods issue, billing
X
D Goods issue, picking, sales order, delivery, billing
That is correct. The sales order must be created first, followed by the delivery document,
picking, posting goods issue, and, finally, billing.
12. What three activities can be performed with a delivery document?
Choose the correct answers.
X
A Picking
X
B Debit memo
X
C Packing
X
D Credit memo
X
E Goods issue
From a delivery document, you can pick, pack, and post goods issue.
Unit 4: Learning Assessment- Answers
© Copyright . All rights reserved. 181
13. When you post goods issue on a delivery document, an accounting document is created in
financial accounting.
Determine whether this statement is true or false.
X
True
X
False
Posting goods issue in sales order management causes an accounting document to be
created in financial accounting. This records the financial impact of goods leaving your
premises.
14. Which of the following is the correct sales order management process?
Choose the correct answer.
X
A Picking, sales order, goods issue, billing, delivery
X
B Sales order, picking, goods issue, billing, delivery
X
C Sales order, delivery, picking, goods issue, billing
X
D Goods issue, picking, sales order, delivery, billing
15. A billing document can be created from what two types of documents?
Choose the correct answers.
X
A Inquiry
X
B Sales order
X
C Quotation
X
D Rebate list
X
E Delivery
A billing document can only be created from a sales order or delivery. Inquiry and
quotation documents and rebate lists in the standard system are not billable, since no
goods or services have been rendered.
16. During the creation of the billing document, an accounting document is created in financial
accounting, thus creating an accounts receivable entry.
Determine whether this statement is true or false.
X
True
X
False
As soon as the billing document is created, it is automatically passed to financial
accounting and the appropriate entries are made to the general ledger accounts.
Unit 4: Learning Assessment- Answers
182 © Copyright . All rights reserved.
17. What SAP components are included in SAP CRM?
Choose the correct answers.
X
A SAP NetWeaver Business Information Warehouse
X
B SAP Enterprise Portal
X
C SAP ECC
X
D All of the above
X
E None of the above
A through C are all components in SAP Customer Relationship Management.
18. Lifecycle data management can only be used when the design of a product is finished.
Determine whether this statement is true or false.
X
True
X
False
Lifecycle data management can manage the data during all phases of a material: the
design phase, the planning and production phase, and the maintenance phase.
19. Which of the following are key functional areas of SAP PLM?
Choose the correct answers.
X
A Lifecycle data management
X
B Environment, health, and safety management
X
C Quality management
X
D Enterprise asset management
X
E Development management
Development management is not a key functional area of SAP PLM.
Unit 4: Learning Assessment- Answers
© Copyright . All rights reserved. 183
Unit 4: Learning Assessment- Answers
184 © Copyright . All rights reserved.
UNIT 5 Financials
Lesson 1
Viewing Financial Processes 186
Lesson 2
Outbound Payments 193
Lesson 3
Analyze General Ledger accounting 196
Exercise 1: Create a Journal Entry 200
Lesson 4
Generating Financial Statements 204
Exercise 2: Generate a Financial Statement 208
Lesson 5
Monitoring Internal Costs 212
Exercise 3: Execute a Cost Center Report 222
Exercise 4: Execute a Profitability Analysis Report 225
UNIT OBJECTIVES
Ɣ
Outline the tasks associated with financial accounting
Ɣ
Process an outbound payment
Ɣ
Create a journal entry
Ɣ
Generate financial statements
Ɣ
Execute a cost center report
Ɣ
Execute a standard cost estimate
Ɣ
Execute a profitability analysis report
© Copyright . All rights reserved. 185
Unit 5
Lesson 1
160
Viewing Financial Processes
LESSON OVERVIEW
This lesson explains the tasks in financial accounting and how they are integrated with other
areas.
Note- Financial Supply Chain Management has been removed. Just in case you are asked
about this, FSCM helps reduce working capital and float, improve billing and payment
processes, and make more accurate cash forecasts. FSCM offers a comprehensive treasury
and Corporate Finance Management solution for companies from various industries. It
enables companies to manage financial resources and to analyze and optimize business
processes.
Business Example
As a new member of the finance department, you must familiarize yourself with various
accounting tasks and understand the integration points with other areas. To meet these
expectations, you require the following knowledge:
Ɣ
A basic understanding of financial functions
Ɣ
A good understanding of the tasks in financial accounting
Ɣ
A basic understanding of integration points with other applications
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Ɣ
Outline the tasks associated with financial accounting
Financial Accounting
Accountants are really interested in the ability to process financial transactions.
As a financial professional, you must produce accurate, timely, financial reports that satisfy
accounting and regulatory standards that vary by industry and by country. The Sarbanes-
Oxley Act of 2002 permanently raised the stakes. You are now responsible for enforcing
standards for internal controls and governance to ensure transparency of your company’s
accounting practices. Your consolidation and reporting processes must be executed quickly
and efficiently.
186 © Copyright . All rights reserved.
Figure 52: Financial Excellence
SAP Enterprise Resource Planning
SAP ERP Financials, which is part of the SAP ERP application, combines core accounting and
financial reporting capabilities with various financial functions.
Financial functions include the following:
Ɣ
Financial Supply Chain Management
Ɣ
Treasury management
Ɣ
Performance management
Ɣ
Compliance management
Figure 53: Accounting Architecture
SAP ERP Financials simultaneously supports global financial reporting standards and multiple
currencies with more than 45 country-specific versions. The solution powers the highest-
performing finance organizations in the world. SAP ERP Financials provides benefits to ensure
compliance and better predict business performance.
Benefits to ensure compliance include the following:
Lesson: Viewing Financial Processes
© Copyright . All rights reserved. 187
Improve corporate
performance
Provides the ability to quickly respond to changing business
conditions with effective business strategies. Examples of these
strategies include defining financial targets, developing a
suitable business plan, and monitoring costs and revenue during
execution.
Achieve faster closes Streamline day-to-day and period-end business processes,
automate many tasks, and improve communication and
collaboration.
Improve corporate
governance and
transparency
Provides broader support for accounting standards and federal
regulations, and improved administration of internal controls.
Shorten days sales
outstanding
Automates dispute, credit, and collections management, and
offers electronic invoicing and payment capabilities.
Optimize global cash
management
Report, analyze, and allocate cash in real time, and establish in-
house banks or payment centers.
Improve financial and
managerial reporting
Provides the flexibility to report performance by multiple types
of business units and/or organizational structures, including
cost and profit centers.
Improve process
integration between
finance and treasury
Integrate risk and treasury transactions with core accounting
and financial reporting processes.
Make finance costs more
competitive
Innovate processes, collaborate with supply chain partners, and
establish global shared-service operations.
Enterprise Performance Management is a key functional area of the SAP Financials
solution that supports the strategic management processes in a company at all relevant
levels. The strategy should determine the company processes. It is supported by the
Business Intelligence Platform (BW & SAP BusinessObjects). Enterprise Performance
Management includes:
Ɣ
BPC Business Planning & Consolidation
Ɣ
SSM SAP Strategy Management
Ɣ
PCM Profitability & Cost Management
Ɣ
FIM Financial Information Management
Ɣ
FC Financial Consolidation.
Financial Accounting Details
Company-wide control and integration of financial information is essential to strategic
decision making. SAP ERP Financials gives you the ability to centrally track financial
accounting data within an international framework of multiple companies, languages,
currencies, and charts of accounts. For example, when raw materials move from inventory to
manufacturing, the system reduces quantity values in inventory and simultaneously subtracts
monetary values for inventory accounts in the balance sheet.
Unit 5: Financials
188 © Copyright . All rights reserved.
Figure 54: Financial Accounting
The financial accounting function complies with international accounting standards, such as
US GAAP and IAS. It also fulfills the local legal requirements of many countries and fully
reflects the legal and accounting changes resulting from market and currency unification.
Tasks in Financial Accounting
Draw the following picture
Figure I-3: Financial Accounting
To your diagram, add in a customer in A/R, vendor in A/P and fixed asset in A/A. Explain that
they have a reconciliation account attached to their master data. Draw the reconciliation
accounts in the G/L and link the two together. This is a key point for accountants – Real time
update – not two documents. The same document updates the sub-ledger and the G/L.The
document is either in both or neither. They cannot be out of balance.
General Ledger: external accounting and accounts; records all business transactions
Accounts Payable: records and manages vendor accounting data.
Travel Management: optimize entire travel processes, from the initial request to the
payment of travel expenses.
Lesson: Viewing Financial Processes
© Copyright . All rights reserved. 189
Asset Accounting: maintains and analyzes fixed assets according to generally accepted
rules in the company's country.
Special Ledger: develop your own accounting ledgers separate from the general ledger.
These will continue to be available with the New General Ledger although the need for them
should be greatly reduced.
Accounts Receivable: records and manages customer accounting data.
Figure 55: General Ledger and Sub-ledger
Financial accounting focuses on the general ledger (G/L), the processing of receivables and
payables, and Asset Accounting. Important tasks of financial accounting include recording
monetary and value flows and evaluating inventories.
Financial accounting includes the following:
General ledger The general ledger contains a recording of all accounting-relevant
business transactions on G/L accounts from a business point of view. It
is managed at the company code level.
G/L accounts The chart of accounts contains structured definitions of all G/L
accounts in the general ledger.
Accounts payable Accounts payable accounting (A/P) records all business transactions
related to suppliers. Accounts payable receives much of its data from
procurement.
Accounts
receivable
Accounts receivable (A/R) records all business transactions that have
to do with customer relationships. Accounts receivable receives much
of its data from sales order management. Bank accounting supports the
booking of cash flows.
Asset Accounting Asset Accounting (AA) records all business transactions that have to do
with asset management.
Accounting
standards
For many companies, it may be necessary to prepare a balance sheet
not only for national accounting standards, but also for other valuation
guidelines such as IAS or US GAAP. To be able to carry out these
different valuation approaches, valuation areas are established in the
Unit 5: Financials
190 © Copyright . All rights reserved.
SAP ERP system. These parallel accounting standards can be realized
with SAP ERP Financials by handling the different valuations on
different, parallel ledgers. These ledgers are used in different balance
sheet and profit-and-loss structures.
SAP Consolidation SAP Consolidation forms the group structure, using consolidation
groups and units for consolidation tasks.
How to View the Integration Process
How to show the integration between financial accounting and sales anddistribution.
1. You can show any of the transactions that participants posted in an earlier unit.
From the SAP Easy Access screen, choose Accounting -> Financial Accounting -> Accounts
Receivable -> Account -> FBL5N: Display Change Line items.
Customer ROHRER##
Company Code 1000
2.
Show the Change Layout function .
3. Choose any of the other layouts.
4. Double-click the document to show the details.
5.
Choose the Document Overview icon to show whole document .
6. From the SAP Easy Access screen, choose Environment -> Document Environment ->
Original Document . This takes you to the billing document;from here, you can show
document flow.
For the next demo, if there are no transactions in the current year, re-execute for a previous year.
Demonstration continued: Show the Information on a G/L account
7. From the SAP Easy Access screen, choose Accounting -> Financial Accounting -> General
Ledger -> Account -> DisplayBalances (new) or use transaction FAGLB03. Use Account
800000/Company Code 1000/ Fiscal Year = Current Year and Ledger OL .
8.
Execute the transaction .
9. Drill down from the balance display to the line items by double-clicking in one of the cells.
Ignore any message about migration.
10.Show the invoice again.
The following demo would work for the AR document too.
11. Demonstrate the integration between financial accounting and materials management
12. From the SAP Easy Access screen, choose Accounting -> Financial Accounting -> Accounts
Payable -> Account -> Display Change Line items or use transaction FBL1N. Use Vendor
1000 and Company Code 1000.
13.
Execute the Display .
Lesson: Viewing Financial Processes
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14. Drill down into the document by double clicking.
15. Choose Environment -> Document Environment -> Relationship browser .
16. Open up all the arrow heads. You can see all the logistics documents attached .
17.
To display one, highlight it and choose the magnifying glass .
LESSON SUMMARY
You should now be able to:
Ɣ
Outline the tasks associated with financial accounting
Unit 5: Financials
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Unit 5
Lesson 2
165
Outbound Payments
LESSON OVERVIEW
This lesson shows you how to process a payment to a vendor.
The unit provides an introduction to the payment processing section of financial accounting.
Business Example
You are responsible for processing vendor invoices and must be able to process outbound
payments. For this reason, you require the following knowledge:
Ɣ
A basic understanding of the purchase-to-pay process
Ɣ
A good understanding of the invoice verification process
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Ɣ
Process an outbound payment
Process an Outbound Payment
When using business-related processes, it is necessary to differentiate external and internal
quantity and value flows.
Examples of business-related processes include:
Ɣ
Purchase to pay (procurement)
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Plan to product (process from the planning to the internal added value)
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Order to cash (sales)
The costs and services quantity flows that are necessary for efficient accounting are
displayed for the different accounting components.
One essential business process is the purchase of goods (purchase to pay).
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Figure 56: Purchase-to-Pay Process Overview
The purchase-to-pay process includes the following steps:
1. Order requirement:
During purchase order handling, data such as supplier, material, plant, and other data
relevant to the purchasing organization must be provided by the user. No postings are
made at this point in financial accounting.
2. Order:
The order is placed.
3. Goods receipt:
When goods are received, the system checks, among other things, the quantity of goods
received against the order quantity. A material document is created to update the stock.
At the same time, a document is created in financial accounting to post the evaluated
goods to the material stock account or the consumption account (debit) and to a goods
receipt/invoice receipt account (credit).
4. Bill check
During invoice verification, the vendor's invoice is checked for correctness. These
purchasing processes are handled as part of logistics in the SAP system. The vendor
invoice is posted and, at the same time, a document is created in financial accounting.
This document posts the invoice amount to the goods receipt/invoice receipt account
(debit) and the vendor account (credit). The goods receipt/invoice receipt (GR/IR)
account is used to make sure that a goods receipt is executed for every invoice, and vice
versa.
5. Payment processing:
Payment processing usually takes place in financial accounting. It is here that decisions
are made about the payment process, for example, the payment methods and the bank
settlement.
Unit 5: Financials
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Purchase to Pay: Account View
Figure 57: Purchase to Pay: Account View
You can draw the different accounts during the demo to show the various postings. (Don’t
forget Debit is on the left and Credit is on the right!)
When the Purchase Order is created, there is no update in Financial Accounting. The
purchase order is just an order.
The first transaction that touches FI is the goods receipt. The goods receipt debits the
expense or stock account and credits the GRIR Account. The value used for this is the
purchase order cost multiplied by the goods receipt quantity. This way the cost is included in
the correct place in the accounts and we have an accrual for the outstanding amount to be
invoiced in the GRIR. This means that even if month end happens at this point there is no
additional accounting to be done.
When the invoice is received, it debits the GRIR account thus cancelling out the goods receipt
and credits the vendor account in accounts payable. The posting into the GRIR is the invoice
quantity multiplied by the purchase order price. Any difference between the purchase order
and Invoice price follows the original expense/stock posting. The only imbalance that the
GRIR should show is if the quantities between goods receipt and invoice disagree. If this is the
case, then it will be rectified with subsequent postings - additional goods receipts, returns
and credit notes.
After several sequential postings in the purchase-to-pay process, the GR/IR clearing account
and the bank clearing account are balanced again. The built up liabilities are balanced by the
payment. From the balance sheet, the procurement into the warehouse is a material stock
increase bound to a bank account reduction.
LESSON SUMMARY
You should now be able to:
Ɣ
Process an outbound payment
Lesson: Outbound Payments
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Unit 5
Lesson 3
168
Analyze General Ledger accounting
LESSON OVERVIEW
This lesson shows you how to create a journal entry.
The unit provides an introduction to financial accounting and the new general ledger. A new
exercise on creating a journal entry has been added to this lesson.
Business Example
You are responsible for the analysis of general ledger accounts and the creation of journal
entries. You must understand the characteristics of the general ledger and must be able to
create and modify entries. For this reason, you require the following knowledge:
Ɣ
A good understanding of the general ledger
Ɣ
A good understanding of the journal entry creation process
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Ɣ
Create a journal entry
New General Ledger
The New General Ledger function is turned on in our training system. The New G/L is
available from ECC 5.0. New customers from ECC 5.0 onwards must use the New G/L.
Existing customers upgrading from earlier versions can continue with the classic ledgers.
The New G/L accounting tables are FAGLFLEX and the tables for the Classic G/L Accounting
are GLT0.
When you activate New General Ledger Accounting, the New General Ledger Accounting
tables are updated in the standard system. The balances in the classic general ledger
accounting tables also continue to be updated for migration scenarios. This default setting
enables you to use comparison reports during the implementation phase of New General
Ledger Accounting. These comparison reports are used to ensure that the New General
Ledger Accounting delivers correct results. Once the results are verified, the classic General
Ledger Accounting tables are deactivated.
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Figure 58: General Ledger Accounting
Advantages of the New General Ledger
Each area in the general ledger is a current application in financials. Each area has its own
data tables and its own “ledgers.” If you post a document in finance, it is replicated in the
other areas. With the New General Ledger, the structure changes.
Figure 59: General Ledger Accounting: New General Ledger
There is just one data table. The “dimensions” that were previously represented by other
components, for example, profit center, now become fields in the New General Ledger. Profit
center, in this example, is an extra piece of information that is stored in the general ledger.
Advantages of using New General Ledger Accounting are as follows:
Ɣ
Management and segment reporting are enhanced.
Ɣ
New General Ledger Accounting meets extensibility and international accounting
standards.
Options to expand standard accounting functions are supported in the New General Ledger
Accounting for both international and industry-specific needs. New General Ledger
Accounting supports international requirements with the integration of a management
Lesson: Analyze General Ledger accounting
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dimension in the general ledger, and support for simple cost accounting. Customers can also
define their own standards and terminology.
New fields can be added to the general ledger coding block. (Prior to the new G/L, you could
only do this with the special ledger.) This avoids the necessity of setting up additional special
ledgers. It also means that some industry solutions will be possible in the general ledger now,
rather than special ledgers.
Document Splitting
Document splitting means that dimensions are allocated to the document as you go along.
The document structure has changed so that you have two parts to a finance document: the
entry view and the general ledger view.
Parts of a finance document include the following:
Entry view The entry view has not changed. This is how the document appears in the
subledger of accounts payable or accounts receivable.
General
ledger view
The general ledger view includes the splitting information. For example, if an
invoice is expensed to two profit centers, the vendor is allocated to the two
profit centers as well. The general view is how the document appears only in
the general ledger.
Balanced Book by Any Dimension
This area is essential to reporting balance sheets for segments, profit centers, and business
areas. The real-time document split feature makes it possible to control balance sheet entries
using segments. This feature helps you meet legal requirements.
Parallel Set of Books
Parallel accounting is possible with the assignment of one lead ledger. All company codes are
assigned to the lead ledger. Management accounting is also integrated in the lead ledger. New
General Ledger Accounting makes it possible to manage multiple books within the general
ledger.
Fast Close
Activating the new general ledger accounting allows for the unification of financial and
management accounting. This unification eliminates inconsistencies and reconciliation
processes. Data is posted in real time from financial to management accounting, allowing
legal and management data to reside in one uniform database.
Total Cost of Ownership (TCO) reduction
Using New General Ledger Accounting reduces data redundancy and implementation costs.
Legal Requirements and Compliance
This area of the new general ledger accounting covers the ever-increasing need to meet new
legal requirements.
How to Create a Journal Entry
1. Create a journal entry.
a. From the SAP Easy Access screen, choose Accounting -> Financial Accounting ->
General Ledger -> Document Entry -> Enter G/L Account Document.
2. If a Company Code dialog box appears, enter company code 1000.
Unit 5: Financials
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3. Continue
a. Continue by choosing Enter.
4. Document Date
a. Enter today's date.
5. Posting Date
a. Enter today's date.
6. Enter short text
a. Increase in capital ## (## = your group number assigned by the instructor)
7. Enter line item entries.
a. If screen variants are not displayed, choose the Tree On button.
b. Open the Screen Variants for Items folder.
c. Under Screen Variants for Items, double-click the ZPROFITCENTER screen variant.
d. Choose the Tree Off button.
8. Enter the following information for Line Item 1: G/L account 113100, Credit: EUR 5000,
Profit Center 1000.
9. Enter the following information for Line Item 2: G/L account 100000, Debit: EUR 5000,
Profit Center 1000.
10. Post the document:
a. From the posting screen, choose Document -> Display Document.
b. Alternatively, you can display the document by navigating as follows from the SAP
Easy Access screen: Accounting -> Financial Accounting -> General Ledger ->
Document -> Display.
Lesson: Analyze General Ledger accounting
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Unit 5
Exercise 1
Create a Journal Entry
Business Example
You are responsible for reviewing general ledger entries and processing entries as required.
You must create a journal entry to post EUR 5,000 to general ledger accounts 1131000
(credit) and 100000 (debit) under profit center 1000.
Line Item 1: Field Name Field Value
G/L Account 113100
D/C Credit
Amount in Doc. curr. 5000
Profit Center 1000
Line Item 2: Field Name Field Value
G/L Account 113100
D/C Debit
Amount in doc. curr. 5000
Profit Center 1000
1. Create a journal entry to post EUR 5,000 to credit general ledger account 113100 and debit
general ledger account 100000 using profit center 1000.
2. If a Company Code dialog box appears, enter company code 1000.
3. Enter the document date
4. Enter the posting date
5. Enter the reason for the journal entry.
6. Enter the line item entries as shown in the table above.
7. Enter the information for Line Item 1, as shown in the table.
8. Enter the information for Line Item 2 from the table provided.
9. Post the document.
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Unit 5
Solution 1
Create a Journal Entry
Business Example
You are responsible for reviewing general ledger entries and processing entries as required.
You must create a journal entry to post EUR 5,000 to general ledger accounts 1131000
(credit) and 100000 (debit) under profit center 1000.
Line Item 1: Field Name Field Value
G/L Account 113100
D/C Credit
Amount in Doc. curr. 5000
Profit Center 1000
Line Item 2: Field Name Field Value
G/L Account 113100
D/C Debit
Amount in doc. curr. 5000
Profit Center 1000
1. Create a journal entry to post EUR 5,000 to credit general ledger account 113100 and debit
general ledger account 100000 using profit center 1000.
a) From the SAP Easy Access screen, choose Accounting -> Financial Accounting ->
General Ledger -> Document Entry -> Enter G/L Account Document.
2. If a Company Code dialog box appears, enter company code 1000.
a) Enter company code 1000.
b) Continue by choosing Enter.
3. Enter the document date
a) Enter today's date.
4. Enter the posting date
a) Enter today's date.
5. Enter the reason for the journal entry.
a) Increase in capital ## (## = your group number assigned by the instructor)
6. Enter the line item entries as shown in the table above.
a) If screen variants are not displayed, choose the Tree On button.
b) Open the Screen Variants for Items folder.
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c) Under Screen Variants for Items, double-click the ZPROFITCENTER screen variant.
d) Choose the Tree Off button.
7. Enter the information for Line Item 1, as shown in the table.
a) Enter G/L Account 113100, Credit: EUR 5000, Profit Center 1000.
8. Enter the information for Line Item 2 from the table provided.
a) Enter G/L Account 10000; Debit: EUR 5000; Profit Center 1000.
9. Post the document.
a) From the posting screen, choose Document -> Display Document.
b) Alternatively, you can display the document by navigating as follows from the SAP Easy
Access screen: Accounting -> Financial Accounting -> General Ledger -> Document ->
Display.
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LESSON SUMMARY
You should now be able to:
Ɣ
Create a journal entry
Lesson: Analyze General Ledger accounting
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Unit 5
Lesson 4
175
Generating Financial Statements
LESSON OVERVIEW
This lesson shows you how to generate financial statements.
Business Example
You are responsible for producing financial statements and must be able to generate the
documents in a timely manner. For this reason, you require the following knowledge:
Ɣ
A good understanding of financial statements
Ɣ
A good understanding of financial reports required for external reporting purposes
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Ɣ
Generate financial statements
Financial Statements
The purpose of recording business transactions is to create balance sheet and profit and loss
statement reports. These reports must be adapted to your specific national requirements.
Various balance sheet and profit-and-loss structures can be set up in the SAP ERP system for
different reporting requirements. These balance sheet and profit-and-loss structures define
exactly which accounts should appear in which balance sheet items. Many structures are
already predefined when your system is delivered.
Financial reports that are required for external reporting purposes are created in financial
accounting. These external reporting requirements, such as the different legal requirements
of the relevant financial authorities, are provided, as a rule, by general accounting standards.
Examples of general accounting standard sources are US Generally Accepted Accounting
Principles (US GAAP) or International Accounting Standards (IAS).
Two procedures that can generally be used to structure the profit and loss statement are
as follows:
Ɣ
Period accounting
Ɣ
Cost-of-sales accounting
Both procedures result in the same operating income. Which procedure should be used is
either stipulated by legal regulations, or can be selected freely when there is a legal option. In
this case, you make a decision based on an analysis from a business point of view (for
example, international comparability).
Period Accounting
You produce the profit account by grouping the general ledger accounts together and
subtotalling them.
Examples of profit accounts that can be grouped are:
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Ɣ
Revenues
Ɣ
Stock movements
Ɣ
Salary costs
Ɣ
Travel costs
Ɣ
Utility costs
The total output of a period is set against the total costs for a period. The total output of a
period is defined here as the sales revenue minus a decrease in the warehouse inventory, or
plus an increase in the warehouse inventory. The total costs of the period are structured
according to the individual expense type. This means the balances of similar expense
accounts can be easily grouped (for example, different accounts for personnel expenses).
This structuring clarifies how the expenses are distributed to the different production factors.
Cost of Sales Accounting
Cost-of-sales accounting includes grouping cost objects into functional areas. These
groupings are in addition to the groupings for the general ledger accounts.
Functional area groupings could include the following:
Ɣ
Sales and distribution costs
Ɣ
Finance and administration costs
Ɣ
Research and development costs
The revenues of the period are determined in exactly the same way as in period accounting.
Stock movements are ignored and, instead, the cost of sales for the period shows the
expenses that have been incurred for the realization of the revenue. The expenses are not
structured according to expense types, as they are in period accounting, but according to
their business origin.
Examples of period accounting business origins are as follows:
Ɣ
Manufacturing
Ɣ
Distribution
Ɣ
Administration
Ɣ
Research and development
Ɣ
Production
The goal of financial accounting is to produce financial statements. These are aimed at people
external to the organization (for example, shareholders, banks, auditors, and the general
public). The standard way to produce financial statements in the system is to run a balance
sheet and profit and loss statement. There are two standard reports: one Advanced Business
Application Programming (ABAP) report and one drill-down report.
Lesson: Generating Financial Statements
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Figure 60: Balance Sheet and Profit and Loss Statement
How to Generate a Financial Statement
1. Generate a financial statement.
a) From the SAP Easy Access screen, choose Accounting -> Financial Accounting ->
General Ledger -> Information System -> General Ledger Reports (New) -> Financial
Statement / Cash Flow -> General -> Actual/Actual Comparisons ->
S_PL0_860000028 Financial Statement: Actual/Actual Comparison.
Field Name Values
Currency Type 10
Company Code 1000
Ledger 0L (Leading Ledger)
FIS Annual Rep.Struc INT
Reporting year <Current Year>
Rep. period from <Current month>
Report period until <Current month>
Comparison year <Previous year>
Compar. period from <Current month>
Compar. period until <Current month>
Output type Graphical report-output
The required steps are detailed in the task titled balance sheet and profit & loss
statement.
You can limit by account, companycode, business area,andcurrency. You specify which
financial statement version you are using and which fiscal year you want.
Unit 5: Financials
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An alternative account number prints out the alternative account number instead of the
operating chart of accounts.
2. Briefly explain the balance sheet and profit andloss statement.
3. Double-click any item on the navigation pane (for example, profit center) to get a different
view of the results.
4. Double click FS Items to go back to the starting view.
5. Open up the profit-and-loss and revenue folders in the hierarchy by clicking on the arrows.
Drag gross sales revenue to the profit center. The sales revenue is now analyzed by profit
center. If you don’t want this any more, double-click gross sales revenue in the navigation
panel on the left. This defaults back to the profit center view. To get back to the financial
statement view, double-click the financial statement version in the navigation panel.
6. Drag gross sales revenue to account number. Now you see a split of the revenue by
account number.
7. You want to look at the detail behind account 800000. Click once on 800000 then choose
the Report button . Choose line items.
8. You see all the postings to the revenue account.
Lesson: Generating Financial Statements
© Copyright . All rights reserved. 207
Unit 5
Exercise 2
Generate a Financial Statement
Business Example
You are responsible for generating financial statements and have been asked to present these
statements at a departmental meeting. You must now generate the statements.
Generate a Financial Statement
1. Execute a standard report for the financial statement for company code 1000. Compare
the actual posting period of the current year with the same posting period of the previous
year. Use the drill-down report and financial statement version INT for the leading ledger
0L.
2. Check whether the balance of assets and liabilities is equal.
3. How much is the profit and loss statement? (Note: Revenue/ income is a negative
number). What business processes triggered the profit ?
Answer:___________________________
4. Which is the largest expense block in the profit and loss statement?
Answer:_________________________
5. In which profit center did the company achieve the highest revenues?
Answer:_________________________
6. Analyze the same revenues by business area.
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Unit 5
Solution 2
Generate a Financial Statement
Business Example
You are responsible for generating financial statements and have been asked to present these
statements at a departmental meeting. You must now generate the statements.
Generate a Financial Statement
1. Execute a standard report for the financial statement for company code 1000. Compare
the actual posting period of the current year with the same posting period of the previous
year. Use the drill-down report and financial statement version INT for the leading ledger
0L.
a) From the SAP Easy Access screen, choose Accounting -> Financial Accounting ->
General Ledger -> Information System -> General Ledger Reports (New) -> Financial
Statement/Cash Flow -> General -> Actual/Actual Comparisons -> Financial
Statement: Actual/Actual Comparison (transaction S_PLO_86000028) .
b) Enter the following data.
Field Name Values
General selection criteria
Currency Type 10
Company Code 1000
Report selections
FIS Annual Rep.Struc INT
Ledger 0L Leading Ledger (use the F4 help
for selection)
Reporting year <Current year>
Rep. period from <Current month>
Report period until <Current month
Comparison year <Previous year
Compar. period from <Current month>
Compar. period until <Current month>
Output type
Graphical report-output Selected
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Hint:
Leave all other selection fields blank.
c)
Choose Execute to start the report.
Hint:
Do not exit the report. The rest of the task steps are performed in the
report.
2. Check whether the balance of assets and liabilities is equal.
a) The balance of assets (application of funds) and liabilities (source of funds) should be
equal.
Open up the rows of the financial statement by clicking on the arrows.
3. How much is the profit and loss statement? (Note: Revenue/ income is a negative
number). What business processes triggered the profit ?
Answer:___________________________
a)
Expand the sub-tree for the profit and loss statement by choosing the arrow in front
of the line you want to expand.
The profit should be mostly derived from the sales revenues - gross sales revenues
– domestic. It could also be triggered from inventory change, if a high number of
finished goods were delivered to stock (stock increase).
4. Which is the largest expense block in the profit and loss statement?
Answer:_________________________
a) Check the positive value blocks (expenses) and determine if raw materials and
consumables, staff, or depreciation caused the highest costs.
5. In which profit center did the company achieve the highest revenues?
Answer:_________________________
a) Select the value for sales revenues and drag it to the profit center in the navigation area
to check for the profit center with the highest value.
Note:
If you want to deselect a drill-down level, drag it from the navigation area to
the report (or right-click).
b)
Choose Exit to exit to the SAP Easy Access screen.
6. Analyze the same revenues by business area.
a) Double-click on business area in the navigation panel.
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LESSON SUMMARY
You should now be able to:
Ɣ
Generate financial statements
Lesson: Generating Financial Statements
© Copyright . All rights reserved. 211
Unit 5
Lesson 5
182
Monitoring Internal Costs
LESSON OVERVIEW
This lesson shows you how to generate cost center, profitability, and cost reports.
Business Example
You are responsible for management accounting and must be able to execute cost center,
profitability, and cost reports. For this reason, you require the following knowledge:
Ɣ
A good understanding of management accounting
Ɣ
A good understanding of integration points
Ɣ
A good understanding of Overhead Cost Controlling
Ɣ
A good understanding of Product Cost Controlling
Ɣ
A good understanding of profitability and sales accounting
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Ɣ
Execute a cost center report
Ɣ
Execute a standard cost estimate
Ɣ
Execute a profitability analysis report
Management Accounting
Many non-finance people will not want to perform the finance exercises. The key point of
interest for finance people is the reporting and integration rather than the processing. The
exercises have been updated to process various reports.
SAP ERP enables the valuation and recording of financial datafor financial reportingand for
internal management reporting purposes. Management accounting contains all the functions
necessary for effective cost and revenue controlling. It covers all aspects of management
controlling and includes many tools for compiling information for company management.
Financial data is tightly integrated with the business processes of SAP ERP logistics
applications, and users can easily obtain detailed information about cost structures and profit
margins.
Easy access to this data helps support and enable management to:
Ɣ
Increase revenue
Ɣ
Maximize customer profitability
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Ɣ
Reduce operating costs while increasing efficiency
Ɣ
Reduce the cost of goods sold
Ɣ
Improve inventory visibility
Areas in Management Accounting
Management accounting offers many tools that can be used to prepare operating data for
business analysis.
Figure 61: Areas in Management Accounting
Be careful with this diagram. This system is a new G/L and with the advent of New G/L the
old EC-PCA is no longer used instead we use Profit Centers in Financial Accounting. This
diagram suggests that PCA is still a separate module – it is not.
Basic Explanation of CO:
CO is the Management Accounting view for internal management purposes. It providesmore
detail, flexibility and added functionality that we donot have in FI. CO is Profit and Loss only –
there is no balance sheet. There can never be a balance sheet. Profit centers are not
technically part of CO and never have been - they can have balance sheet items.
For G/L accounts that represent expenses and revenue we might want to analyze them
further for internal purposes. To do this we create a cost element (the CO equivalent of a G/L
account). This ensures that whenever we post to a G/L account with a Cost Element
equivalent the transaction is relevant for CO and must have a CO cost Object on it (the place
it is going in CO). For expenses, we have a choice of where it could go:
Ɣ
Overhead Cost Controlling is mainly just for costs (not revenues)
Ɣ
Cost centers (areas of cost in the business for example, marketing)
Ɣ
Internal orders (specific events that we want to capture costs, for example a Trade
Fair)
Ɣ
Processes (used in activity based costing to record the cost of a process, for example,
how much does it cost to process a purchase order as far as payment?
Ɣ
Product Cost Controlling (specific external costs of production,for example, artwork)
Lesson: Monitoring Internal Costs
© Copyright . All rights reserved. 213
Ɣ
Production Orders
Ɣ
Sales Orders
Ɣ
Product Cost Collectors
Ɣ
Project Systems- You can also post to a WBS element if it is a cost for a particular project.
From an accounting perspective, these act like big brother to internal orders
This now poses a problem as the costs and revenues are spread out all over the place. There
are various tools in CO that you can use to reallocate the costs between the cost objects. We
settle internal orders and WBS elements, (normally to cost centers eventually), so that they
come to zero. The cost center costs are mainly reallocated to production orders and any
differences are what make up the variances. production orders get turned into either stock or
work in process (WIP).
Management Accounting Details
Details of management accounting include the following:
Analyze profit Profitability analysis enables you to determine how successful the
enterprise is in different market segments (product divisions, for
example), and its profitability over a period of time.
Analyze
success of
individual profit
centers
Profit Center Accounting is not technically part of controlling within the
system. In New General Ledger Accouting, it is part of financial accounting;
however it is often used to provide management and financial information.
When you use profit centers, you assign a specific profit center to every
object for which costs and revenues are incurred in your system. When
data is posted on an object to which a profit center is assigned, the data is
automatically transferred to profit center accounting. In this way, the
actual data of the assigned objects is updated on the profit center.
Control
overhead costs
and allocate
costs
Overhead Cost Controlling allows you to analyze where overhead costs
have been incurred. Cost Center Accounting is used to determine where
costs are incurred in your organization. The internal order is a flexible
accounting tool that can be used in many different ways to document
costs and, sometimes, revenues.
Evaluate the
costs of goods
or services
Product Cost Controlling is concerned with all aspects of planning the cost
of producing products or services, as well as tracking and analyzing the
actual costs. Product Cost Controlling is used to calculate and evaluate the
production costs of a product, and the costs or revenues from the
rendering of a service or the execution of a project, in both plan and actual.
Classify costs
and reconcile
data
Cost Element Accounting answers the question of which costs have been
incurred.
Integration
Data created in other SAP applications can have a direct influence on management
accounting. For example, if a non-stock item is purchased, an expense is posted to the
general ledger. This expense is also posted as a cost to a cost center or other management
accounting object for which the item was purchased. Later, the cost from that cost center can
be passed on as overhead to a production cost center, or elsewhere in management
accounting.
Unit 5: Financials
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Financial accounting is a primary data source for management accounting. Most expense
postings that relate to the general ledger result in a cost posting in management accounting.
These postings to the general ledger can be journal entries, or they can be created by
accounts payable postings or depreciation postings from Asset Accounting or other SAP ERP
applications. Thus, expense and revenue postings in financial accounting, for example, result
in the costs and sales revenues in management accounting.
Figure 62: Integration
Overhead Cost Controlling
Overhead Cost Controlling allows you to collect and analyze costs that cannot be directly
assigned to the production of goods and services, and allocate them as far as possible
according to their cause.
Cost Center Accounting is used to determine where costs are incurred in your organization.
Costs incurred can be assigned to individual cost centers. Cost centers can also perform
activities for which we can plan quantities and calculate values so that they may be recharged.
Cost centers can be grouped together to provide summary cost information. A fundamental
requirement for implementing cost center accounting is the creation of a standard hierarchy
for a controlling area. The standard hierarchy reflects the structure of all cost centers in the
controlling area, and provides cost totals at each node of the structure.
Internal orders can be used to track costs and, in some cases, revenues within a controlling
area. You can use internal orders to plan, monitor, and allocate costs. An internal order is
known as a temporary cost collector. It analyzes costs for specific events and small projects
that often exist below the level of a cost center or separately from cost centers. For example,
you may have a cost center that holds all of your marketing costs, but you would like to
analyze the costs for a specific advertising campaign. You could do this with an internal order.
Internal orders can be split into the following categories, depending on their purpose:
Ɣ
Overhead cost orders are used to monitor costs that are incurred for a specific purpose,
such as holding a trade fair, or for documenting costs, such as maintenance and repair
tasks.
Ɣ
Investment orders are used to monitor costs that are incurred for an asset under
construction, for example, a building or a warehouse.
Ɣ
Orders with revenues are used as cost objects so that costs and revenues can be tracked.
Lesson: Monitoring Internal Costs
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Cost Center Accounting answers the question of where costs were incurred, while Activity-
Based Costing answers the question of why (for what purpose) costs were incurred.
How to Execute a Cost Center Report
Field Value
Controlling Area 1000
Fiscal Year 2006
Periods 1 - 12
Plan Version 0
Cost Center Group H100
Cost Element Group OAS
How to execute a cost center report.
1. Enter the information from the table above.
a) From the SAP Easy Access screen, choose Accounting -> Controlling -> Cost Center
Accounting -> Information System -> Reports for Cost Center Accounting -> Plan/
Actual Comparisons -> S_ALR_87013611 : Cost Centers Actual/Plan Variance.
2. Scroll down the cost center nodes on the left to H1210 Administration. Open this to get to
cost center 2100.
3. Double-click the occupancy costs actual number.
4. Choose cost centers: Actual Line Items.
5. This displays the CO entries that make up the posting.
6. Double-click any of the items.
7. The source document is displayed.
8. From the FI document, choose Environment -> Document Environment -> Accounting
Document.
9. Here you can see that as well as the FI document, a separate controlling document was
also created with its own number. If you use profit center accounting, you get a separate
document for that and the same for special purpose ledger.
10.The list of documents is quite odd. Since this is a new G/L system, we are not expecting to
see a profit center document but we do here for two reasons: This was posted prior to the
new G/L migration, and since this is a teach system we have not switched off the old
classic Profit Center Accounting (PCA), so we still see PCA documents.
Unit 5: Financials
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Product Cost Controlling
Figure 63: Product Cost Controlling
Product Cost Controlling helps you understand the costs incurred in the production of
products and/or services. It calculates the cost of goods manufactured (COGM) or cost of
goods sold (COGS). This information is broken down by each step of the production process
using cost information about the products gathered automatically in other SAP applications.
Period-end closing activities include the calculation of work in progress, variances and scrap,
and product cost settlement.
Product Cost Controlling Details
The approach of Product Cost Controlling is determined by the type of manufacturing
process.
Manufacturing Process Product Cost Controlling Focus
Engineer-to-order / Make-to-order Controlling the individual sales order
Make-to-stock Controlling the individual production or process order
Repetitive manufacturing Period-based controlling may replace the individual
order
Product Cost Controlling consists of the following components:
Product Cost Planning is used to estimate the costs to produce goods or services.
Ɣ
If a bill of material and routing are available in manufacturing planning and execution, the
system can automatically create a cost estimate based on this data. If this information is
not available, you can either enter the costing items manually with the unit costing tool or
transfer them automatically from a non-SAP system using batch input.
Cost Object Controlling focuses on simultaneous costing and period-end closing.
Ɣ
Actual production costs are accumulated alongside raw material consumption when
completing the work. This information allows you to compare planned and actual costs for
any phase of the production process.
Lesson: Monitoring Internal Costs
© Copyright . All rights reserved. 217
Ɣ
Period-end closing calculates the value of goods still in production (work in process) and
the variances between the cost estimate and the actual costs.
Ɣ
The costs incurred during production of a product or service are collected on cost objects.
Several different types of cost objects are available, depending on your requirements.
Ɣ
In addition to cost centers, internal orders, and projects, the material ledger allows you to
valuate materials using a variety of criteria. Examples of this criteria are cost of material
components, multiple levels of prices for inventory management, cross-country inventory
movement, and transfer pricing.
Cost objects include the following:
Ɣ
Sales orders
Ɣ
Production orders
Ɣ
Process orders
Ɣ
Product cost collectors
How to Execute a Standard Cost Estimate
How to display a standard cost estimate.
1. From the SAP Easy Access screen, choose Accounting -> Controlling -> Product Cost
Controlling -> Product Cost Planning -> Information System -> Object List -> For Material ->
S_P99:41000111 Analyze/Compare Material Cost Estimates .
Field Name Values
Plant 1000
Material Number T-F1XX
Costing Variant PPC1
Select the Calculator button .
The required steps are detailed in the Product Cost Controlling exercise .
2. Briefly explain the cost estimate.
The total cost of the product is made up of:
Ɣ
Material costs:Derived from the bill of material (BOM)
Ɣ
Activities:Derived from the routing
Ɣ
Additional overheads/process C=costs:Built into costing
The costing structure shows the material costs. You can include the other costs by
selecting the Materials only/All items button. You can pull the screen around to look at
more or less of a particular area.
The cost itemization is at the bottom right side of the screen. Scroll down to see all the
costs.The I column (item category) shows you the type of cost: M (Material), E (Activity), G
(Overhead), and P (Process). You can maintain different costs for different purposes, for
example, sales andadministration Core Components Technical Specification (CCTS) are
not included in cost of goods manufactured, but are included in cost of goods sold.
Unit 5: Financials
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Select the Cost Comps button next to the cost of goods manufactured. Thisresults in a
different analysis of the costs.
This cost estimate is used for stock valuation and for putting planned costs on the
production order.
Profitability and Sales Accounting
The two basic tools in core financials for analyzing profit are profitability analysis and profit
centers.
Profitability analysis allows you to analyze profits and contribution margins for market
segments. Profitability analysis supports sales and distribution, product management, and
company-wide planning and decision making using an external view with a market-oriented
perspective.
Market segments are defined by characteristics such as product, product group, customer,
customer group, or geographic area or region. For example, you can analyze the profitability
of a certain product group sold to a certain customer (or a certain customer group).
You must specify which of the values that affect profitability are to be analyzed for this object.
These value fields are the key figures. This allows you to define fields that represent costs that
exist below the level of the account. An example of this is the component parts of the
standard cost of materials. In comparison to financial accounting, the results presented here
can also be subdivided into fixed and variable costs, offering you different contribution margin
calculations.
For most people CO-PA means costing based profitability analysis and it is updated by SD
documents (the conditions) rather than accounting documents. This is where revenues and
cost of sales go normally. This allows you to analyze market segment profitability, for
example, Red Widgets in the North vs Red Widgets in the South or Red Widgets vs Blue
Widgets. It is meant as a sales and marketing tool. The market segments are defined by their
characteristics so it is effectively a cube of information.
Figure 64: Profitability Analysis
Profitability analysis provides a multidimensional reporting tool, which you can use to create
reports that analyze data for any market segment and profitability measure.
Lesson: Monitoring Internal Costs
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How to Execute a Profitability Analysis Report
1. From the SAP Easy Access screen, choose Accounting -> Controlling -> Profitability
Analysis -> Information System -> KE30 Execute Report.
If an Operating concern dialog box is displayed, choose IDEA and select costing-based.
2. Select the report SAP01–001.
Field Name Values
From Fiscal Year <Current Year>
From Period 1
To Period <Current Period>
Version 0
Graphical Report-output Mark
The required steps are detailed in the Profitability Analysis in Management Accounting
task.
3. Briefly explain the report and the navigation (sizing areas).
At the top right of the report is the analysis, spread horizontally. That same analysis is
presented vertically at the bottom of the screen. (Drag the split screens around to make it
easier to read.)
Drag and drop works like the previous drill-down report. Drag the actual value for the
pumps division to the product on the left
Now we have division 1 presented by product. Drag a product to a customer.
Now we have the product split by customer. To remove a selection, for example, Division 1,
double-click it in the left hand pane
Note:
Many customers perform their profitability analysis reporting in BW, not in the
system.
Profit Center Accounting
Profit Center Accounting allows you to analyze internal profits and losses for profit centers.
This enables the evaluation of different areas or units in your company using independent
balance sheets and profit and loss statements.
Profit centers can be structured according to regions (subsidiaries or plants), functions
(manufacturing or sales), or products (product groups or categories). Using profit center
accounting, you can assess the internal aspects of profitability. This internal view of
profitability allows you to measure the success of a specific profit center based on the
profitability objectives of the respective area of responsibility. The new general ledger allows
you to produce a full set of accounts per profit center.
Unit 5: Financials
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There was a limitation to classic profit center accounting. It was not designed to give a full
balance sheet – just the key items so that you could calculate key ratios, In the new G/L
environment, profit centers move into the general ledger. With document splitting activated,
it is possible to get a full balance sheet in profit center accounting. Without document
splitting it is likely that there will be less of a balance sheet than was previously attainable.
How to Execute a Profit Center Report
1. From the SAP East Access screen, choose Financial Accounting -> General Ledger ->
Information System -> General ledger reports (new) -> Financial Statement/Cashflow ->
General -> Actual/Actual Comparisons -> Financial Statement Actual/Actual Comparison.
Enter the following parameters.
Field Value
Currency Type 10
Company Code 1000
Profit Center 1500
FIS Version INT
Ledger 0L
Reporting Year Current Year
Reporting Periods 1-12
Comparison Year Last Year
Comparison Periods 1-12
Select graphical report output.
Execute the report .
Explain the figures: assets = liabilities. This is good, as this is what they are supposed to do.
Calculated profit in the liabilities section is the prior year'sprofit plus the current year's
calculated profit on the financial statement usage.This is also correct and how it should be.
However, the current year's calculated profit should be the same as the total on the profit
and loss statement. This is not what we see here, as some accounts in the supplement
section at the bottom are supposed to balance to zero,and they donot.
If you have any accountants that ask, some of these are supposed to balance to zero at the
company code level but may not balance to zero at an individual profit center level. It is the
inter-profit center balance with the other profit centers, so at a profit center level they
should be displayed somewhere in the balance sheet.
Lesson: Monitoring Internal Costs
© Copyright . All rights reserved. 221
Unit 5
Exercise 3
Execute a Cost Center Report
Business Example
You are responsible for comparing actual costs incurred to those originally planned. To
facilitate your analysis, you must run a cost center report.
Execute a Cost Center Report
Execute a cost center report and drill down to source documents.
1. Execute a cost center report showing actual and plan costs, plus a variance for cost center
group H1000 in 2006. Use cost element group OAS.
2. Navigate to the results for Cost Center Group H1200 and then Cost center 2100.
3. Investigate the occupancy costs by looking at a source document.
4. What type of document are you looking at, and who posted it?
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Unit 5
Solution 3
Execute a Cost Center Report
Business Example
You are responsible for comparing actual costs incurred to those originally planned. To
facilitate your analysis, you must run a cost center report.
Execute a Cost Center Report
Execute a cost center report and drill down to source documents.
1. Execute a cost center report showing actual and plan costs, plus a variance for cost center
group H1000 in 2006. Use cost element group OAS.
a) From the SAP Easy Access screen, choose Accounting -> Controlling -> Cost Center
Accounting -> Information System -> Reports for Cost Center Accounting -> Plan/
Actual Comparisons -> Cost Centers: Plan/Actual/Variance (transaction code
S_ALR_87013611) .
b) Enter the information from the table.
Field Value
Controlling Area 1000
Fiscal Year 2006
Periods 1 - 12
Plan Version 0
Cost Center Group H1000
Cost Element Group OAS
c)
Execute the report .
2. Navigate to the results for Cost Center Group H1200 and then Cost center 2100.
a)
Select the H1200 Administrations and Financialsfolder in the Variation:
Cost Center pane on the left-hand side of the screen. The values in the report area on
the right will change.
Open folder H1210, which is inside the H1200 folder, by choosing .
3. Investigate the occupancy costs by looking at a source document.
a) Double-click the act.cost column value forrow 470000 occupancy costs.
b) Double-click cost centers: Actual line items in the dialog box that opens. Here you see
the CO documents that make up the total on the face of the report.
c) Double-click one of the documents to show the original financial accounting entry.
4. What type of document are you looking at, and who posted it?
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a)
Choose the document header icon . The document type is KR, a vendor invoice. The
document was posted by user ID STEINER.
224 © Copyright . All rights reserved.
Unit 5
Exercise 4
Execute a Profitability Analysis Report
Business Example
You are responsible for the sales department and must run profitability reports.
Profitability Analysis
Field Name Values
From Fiscal Year Current Year
From Period 1
To Period <Current Period>
Version 0
1. Execute the profitability analysis report SAP01-001.
2. What sales characteristics can you select to analyze a specific sales area?
3. How are the different values of the contribution margin calculated?
4. What is the main objective of contribution margins I and II?
5. Analyze contribution margins I and II of one of the products listed.
6. Exit the report.
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Unit 5
Solution 4
Execute a Profitability Analysis Report
Business Example
You are responsible for the sales department and must run profitability reports.
Profitability Analysis
Field Name Values
From Fiscal Year Current Year
From Period 1
To Period <Current Period>
Version 0
1. Execute the profitability analysis report SAP01-001.
a) From the SAP Easy Access screen, choose Accounting -> Controlling -> Profitability
Analysis -> Information System -> Execute Report or use transaction KE30 .
b) If a dialog box for operating concern is displayed, choose IDEA, and select costing-
based .
c) Select report SAP01–001 .
d)
Choose Execute to start the report.
e) Enter the data shown in the table.
f) Select the Output type : Graphical report—output .
g)
Choose Execute to start the report.
2. What sales characteristics can you select to analyze a specific sales area?
a) You can analyze by Division , Product , Customer, or Material Group. Select them in
turn by double-clicking on them in the navigation pane.
3. How are the different values of the contribution margin calculated?
4. What is the main objective of contribution margins I and II?
a) Check the lower part of the screen to see the contribution margin scheme.
Contribution margin I is the difference of the net revenue after deductions and the
variable costs, which are mainly the raw material costs and the variable manufacturing
and machine costs. Contribution margin I could be directly changed by make-or-buy
decisions, in a relatively short time period.
b) Contribution margin II depends on the fixed costs, mainly from the production area
(fixed machine costs), for example, depreciation. This part of the costs of goods sold
226 © Copyright . All rights reserved.
cannot be changed in a short time period because in this case, long-term investments
have to be changed.
5. Analyze contribution margins I and II of one of the products listed.
a) Contribution margin II:_______________________
6. Exit the report.
a) In the navigation area, double-click the characteristic value Product .
b) Position the cursor on your material number.
c) Double-click again and look for the required values on the detailed sheet at the bottom
of the screen.
d) Choose Exit to exit the screen and return to the SAP Easy Access menu.
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LESSON SUMMARY
You should now be able to:
Ɣ
Execute a cost center report
Ɣ
Execute a standard cost estimate
Ɣ
Execute a profitability analysis report
Unit 5: Financials
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Unit 5
195
Learning Assessment
1. Only one accounting standard can be realized with SAP ERP Financials.
Determine whether this statement is true or false.
X
True
X
False
2. What is the primary source of information for management accounting?
Choose the correct answers.
X
A SAP Business Information Warehouse
X
B SAP ERP Human Capital Management
X
C Financial accounting
X
D Procurement
3. What is the primary source for management accounting?
Choose the correct answers.
X
A SAP Business Information Warehouse
X
B SAP ERP Human Capital Management
X
C Financial accounting
X
D Procurement
© Copyright . All rights reserved. 229
Unit 5
196
Learning Assessment- Answers
1. Only one accounting standard can be realized with SAP ERP Financials.
Determine whether this statement is true or false.
X
True
X
False
You can realize parallel accounting standards with SAP ERP Financials.
2. What is the primary source of information for management accounting?
Choose the correct answers.
X
A SAP Business Information Warehouse
X
B SAP ERP Human Capital Management
X
C Financial accounting
X
D Procurement
Data created in other SAP applications can have a direct influence on management
accounting, but financial accounting is a primary data source. Most expense postings that
relate to the general ledger result in a cost posting in management accounting.
3. What is the primary source for management accounting?
Choose the correct answers.
X
A SAP Business Information Warehouse
X
B SAP ERP Human Capital Management
X
C Financial accounting
X
D Procurement
Data created in other SAP applications can have a direct influence on management
accounting, but financial accounting is a primary data source. Most expense postings that
relate to the general ledger result in a cost posting in management accounting.
230 © Copyright . All rights reserved.
UNIT 6 Human Capital Management
Lesson 1
Viewing Components of Human Capital Management 232
Exercise 1: Hire an Employee 250
UNIT OBJECTIVES
Ɣ
Identify the components of SAP ERP Human Capital Management
Ɣ
Outline the organizational structures of SAP ERP Human Capital Management
Ɣ
Maintain employee master data
© Copyright . All rights reserved. 231
Unit 6
Lesson 1
198
Viewing Components of Human Capital
Management
LESSON OVERVIEW
This lesson provides an overview of the functions of SAP ERP Human Capital Management.
Business Example
As a human resources administrator, you are responsible for human resources administrative
functions and must be able to manage the organizational structure and employee master
data. For this reason, you require the following knowledge:
Ɣ
A good understanding of the organizational structure
Ɣ
A good understanding of employee master data
Ɣ
A basic understanding of e-recruitment processes
Ɣ
A basic understanding of the performance management process
Ɣ
A basic understanding of self-services
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Ɣ
Identify the components of SAP ERP Human Capital Management
Ɣ
Outline the organizational structures of SAP ERP Human Capital Management
Ɣ
Maintain employee master data
Components of SAP ERP Human Capital Management
To compete effectively, you need to align all corporate resources, including employees, with
business objectives. With SAP ERP Human Capital Management (SAP ERP HCM), you can
maximize the value of your employees and align employee skills, activities, and incentives
with business objectives and strategies by using tools to manage, measure, and reward
individual and team contributions.
In this lesson, you will learn about the basics of SAP ERP Human Capital Management by
examining processes in human resources.
There are defined interfaces throughout the system to connect an SAP system to other
systems for specific data exchanges, for example, to integrate time recording terminals into
the HCM solution.The next figure illustrates integration.
Ɣ
Organizational management is controlled through the use of relationships between the
various objects. The most common objects in organizational management are persons,
organizational units, positions, cost centers and jobs.
232 © Copyright . All rights reserved.
Ɣ
SAP E-Recruiting facilitates finding qualified applicants using efficient, streamlined
processes. At the end of the recruitment process, the successful candidate is hired into a
position within the organizational plan of the company.
Ɣ
Personnel Administration includes the management of employees within an organization.
This includes maintaining specific pieces of information on each employee. Information is
grouped according to the type of information (for example, bank details, address,
personal information, benefits, pay, time, etc.) and is stored on infotypes.
Ɣ
Personnel Development includes the development of employee skills and providing
additional education and training. Personnel development may also include succession
planning and career development.
Ɣ
Training and Event Management allows an organization to offer a range of courses (for
example, first aid, safety, leadership skills, etc). Employees may attend these courses as
part of a succession plan, their own career development choices or perhaps as a result of
a performance review where a skill deficiency has been identified. Once an employee
successfully completes a course, his/her profile is automatically updated in personnel
development.
Ɣ
Time management allows the tracking of individual time elements for employees. Some
employees may be required to record all of their time (positive time recording) and other
employees may only be required to enter exceptions to their normal working time
(negative time recording). SAP offers a wide range of functionality to allow customers to
manage, track and report on employee time elements.
Ɣ
Performance management includes the appraisal cycle for employees. Once an appraisal
has been completed and specific development concerns identified, the employee may be
enrolled in the specific course which would provide the missing requirement. In addition
to individual employee performance ratings, performance management may also include
objectives related to the overall performance of the organization. The overall performance
rating of each employee may be passed on to compensation management and be
included in, for example, a merit or bonus payout calculation.
Ɣ
Payroll includes the processing of pay in a timely and efficient manner utilizing
information found on various employee infotypes.
Ɣ
Personnel Cost Planning allows planners within an organization to determine which cost
elements (for example: salary, overtime, employer cost of benefits, etc.) should be
included in cost planning activities for the next planning period. Once a cost plan is
approved, the detail can be integrated into finance and used, for example, to set up new
budgets.
Lesson: Viewing Components of Human Capital Management
© Copyright . All rights reserved. 233
Figure 65: SAP ERP Human Capital Management
Human Capital Management Processes
SAP ERP Human Capital Management includes the following processes and functions:
Organizational Management Includes management of the organizational and personnel
structures
Talent Management Includes the management of employees for their entire time
with the company
SAP E-Recruiting Facilitates the management of vacant positions and hiring
processes to find the best-qualified talent to fill those
positions
Personnel Development Includes the development of employee skills
Training and Event
Management
Offers training events to enable employees to develop their
skills and bridge any gaps between position requirements and
their abilities
Manager Self-Service and
Employee Self-Service
Facilitates empowering employees to maintain their own data
Personnel Cost Planning Facilitates planning activities for budget generation
Time Management Iincludes the tracking of employee time (attendances and
absences)
Payroll and benefits Includes the payment of employees for work done and
participation in benefit programs
Human capital management (HCM) is a company-wide strategy and is not only confined to
HCM processes and functions. Your company profits from a large value-added potential and
the company's bottom line can be improved.
Organizational Structure
The structures of an enterprise are subdivided into organizational structures, based on an
organizational plan, and administrative structures, based on the enterprise and personnel
structures.
An organizational plan provides a model of the structural and personnel environment of your
enterprise. Hierarchies and reporting structures are clearly laid out. The organizational plan is
the foundation of Organizational Management and uses elements called objects. The most
important objects for the organizational plan are organizational units, jobs, and positions.
Unit 6: Human Capital Management
234 © Copyright . All rights reserved.
The enterprise and personnel structures subdivide organizations and employees according to
factors relevant to time management and payroll.
The answers to the questions in the following slide will aid in the creation of the organizational
structure elements required to set up an organization within HCM.
Figure 66: Employees
The SAP ERP HCM system enables you to set up organizational hierarchies and employee
relationships, and administer employee data in the system. Employees are linked to the
organizational structure by the position they hold and the placement of that position within
the structure. Reporting facilitates the evaluation of employee data from all enterprise-
specific organizational aspects.
The Organizational Plan
Discuss how the organizational plan is typically a representation of an organization's
department structure. An organizational plan includes organizational units and positions.
The employees of an organization are assigned to positions within the organizational plan.
Ask the class for examples relative to their organizations.
Organizational structures in HCM and organizational units as discussed in the “System Wide
Concepts ” unit have one big difference: Most of the HCM organizational structures are not
maintained in customizing, they are real master data. Most organizational units in logistics or
in financials are customizing objects.
You may want to consider drawing a quick org chart on the board. This usually helps
students with the concept of the structure. Draw a chief org unit (ie: Office of CEO) and a
couple of additional org units linked with two way arrows which represent the relationship
between the objects (ie: HR and Finance). Below the HR org unit, draw two additional org
units linked by two way arrows and call them Payroll and Recruiting. Below the payroll org
unit draw another box and indicate this is a position linked to the org unit payroll. Finally draw
one last box and indicate this is the person who holds that specific position in the payroll org
unit. A structure such as this one is what customers must clearly depict in the SAP system.
The organizational structure is of importance, not only for HCM, but other functionalities
such as workflow.
You use Organizational Management to quickly and effectively map your organizational and
reporting structures with the relevant organizational objects. You create an organizational
Lesson: Viewing Components of Human Capital Management
© Copyright . All rights reserved. 235
plan, which is a comprehensive and dynamic model of the structural and personnel
environment in your enterprise.
Figure 67: Organizational, Enterprise, and Personnel Structure
Employees are assigned to the organizational, enterprise, and personnel structures on
infotype 0001, Organizational Assignment. When you enter data on this infotype, the
employee is assigned to a company code, a personnel area, a position, and a payroll area. This
results in the employee's assignment to an organizational unit, a job, and a cost center.
Information on the organizational assignment of employees is very important for
authorization checks and for time management and payroll accounting. This assignment is
often used to provide administrators access to employee information for the completion of
time and payroll activities.
Key Objects Used in Organizational Management
The following are some of the key objects used in Organizational Management:
Organizational
units
Organizational units describe the various business units in your
organization. Organizational units could be the departments in your
company. Several organizational units, along with their relationships,
make up the organizational structure. Organizational units can be divided
according to functional or regional criteria, for example.
Jobs Jobs are general descriptions of tasks and requirements. Jobs are used to
define positions. An example of a job is "Manager."
Positions Positions represent the distribution of tasks among individual employees.
Positions are occupied by persons. A position inherits the tasks and
requirements of the job from which it was defined. A position can also be
assigned additional tasks that have to be carried out only by this one
position. An example of a position based on the "Manager" job is "Human
Resources Manager."
Persons Persons occupy positions within the organizational structure and
represent the employees in your organization. Employee data is
maintained in Personnel Management. The assignment of employees to
positions is usually part of the hiring or transfer process, which is handled
in Personnel Administration.
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Enterprise Structure
Figure 68: Enterprise Structure: Example
The enterprise structure for personnel administration is determined by the following
elements:
Client: A client can be valid for a company code at the smallest level, or for the
entire corporate group. The company code is defined in accounting.
Company
code:
The company code is a legal, independent accounting unit representing the
central organizational element of finance. The company code represents
the national tax law view of the company, the local currency, and tax
reporting requirements.
Personnel
area:
The personnel area is used exclusively in personnel administration and is
unique within a client. Each personnel area must be assigned to a company
code.
Personnel
subarea:
Personnel subareas allow for the further grouping of employees. This is
typically used in payroll and time management.
Employee Master Data
Employee data is stored in SAP ERP HCM as infotype records. Infotypes have a text
description and a four digit unique identifier (for example, the Organizational Assignment
infotype has the number 0001). Employee data can be displayed, copied, corrected, and
deleted.
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Figure 69: Infotypes
You can maintain infotypes in various ways, including:
Ɣ
Single-screen maintenance (one infotype for one person at a time)
Ɣ
Personnel actions (a sequence of infotypes for one person)
Ɣ
Fast entry (one infotype for multiple persons)
Personnel Actions
An action is one way to help ensure data completeness, however an infotype presented
during an action may be skipped. This allows for a scenario where the person entering the
data is missing a piece of information. This person could skip the infotype and continue with
the execution of the action. The missing information can be added at a later time.
Personnel Actions
Personnel actions facilitate the maintenance of several infotypes for an employee in a specific
order. For example, when you hire an employee, you have to enter informationsuch as master
data (name, address, benefits, and so on), data that is relevant for time management
(working hours, whether or not the employee must clock in/out, shifts, and so on), and
payroll. When a hiring action is executed, the required infotypes are presented to the user one
after the other in a specific sequence.
The following is a list of some of the infotypes created when you hire an employee:
Ɣ
Organizational Assignment Infotype 0001
Ɣ
Personal Data Infotype 0002
Ɣ
Address Infotype 0006
Ɣ
Planned Working Time Infotype 0007
Ɣ
Basic Pay Infotype 0008
Ɣ
Bank Details Infotype 0009
In addition to the information contained on these infotypes, country-specific infotypes are
also included in a typical hiring action. Examples of these infotypes are taxes and benefits.
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This is an example of a personnel action configured for the hiring of an employee. Infotypes
are presented to the end user in a specific order and, upon saving, are stored as part of the
employees master data record.
Examples of personnel actions are: hire, termination, retirement, maternity leave, personnel
transfer, promotion, etc.
Figure 70: Personnel Actions
The completion of the hiring action results in the creation of a personnel file, which consists of
the various infotype records. Actions simplify data entry because you do not have to access
each infotype individually. If you do not have all of the employee's required information when
carrying out an action, you can skip the infotype and add the missing information later.
Global Employees
Management of Global Employees includes maintaining data for employees who may be
temporarily assigned to positions in other countries. A global employee can complete one or
multiple global assignments for his or her global company. The Global Employment Model in
SAP ERP 6.0 HCM describes the relationship between employee and employer. The most
important concepts in the Management of Global Employees are as follows:
Ɣ
Each employee can have multiple personnel assignments, each of which is in a different
country.
Ɣ
Each personnel assignment is linked to the person.
A personnel assignment describes details such as the tasks the person has to perform,
the country of the global assignment and the duration of the assignment. This data is
stored on various infotypes.
Ɣ
The person ID enables you to track the global employee in the whole enterprise for the
duration of his or her assignment (infotype 0709)
Ɣ
In SAP ERP 6.0 HCM, a personnel number is assigned to each personnel assignment.
Global Employees
SAP ERP HCM allows you to manage employees with multiple assignments. You can track
and manage all of an employee's employment relationships in various countries in the
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standard system. This is especially important for global enterprises. In SAP ERP HCM, global
employees are managed by linking each of an employee's personnel assignments to the
person.
How to Display Employee Information
1. Display an employee record.
2. From the SAP Easy Access screen, choose Human Resources -> Personnel Management ->
Administration -> HR Master Data -> PA20 Display .
3. Enter 11199100 in the Personnel no. field and pressEnter.
4. The Display Master data screen for Lars Becker is presented. Infotypes are listed under
various tabs (such as Core Employee Info.) and may be displayed by selecting the box to
the left of the infotype (which will highlight the line) and choosing the display icon.
In case you are asked, the tabs, as well as the specific infotypes displayed on each tab, are
completely configurable. An infotype may be listed on multiple tabs. The view presented to
theuser will be based on the user group to which the user is assigned. Authorization
profiles assigned to end users control the ability of the user to display or edit data for
specifically defined groups of employees.
SAP E-Recruiting
SAP E-Recruiting supports the entire recruitment cycle, including advertising, managing and
selecting applicants and applicant correspondence. When an applicant is hired, integration
allows applicant data in the recruitment system to be transferred to Personnel Administration
as employee data.
SAP E-Recruiting includes:
Ɣ
Requisition management
Ɣ
Management of job postings
Ɣ
Entry of applications
Ɣ
Online services for internal and external candidates
Ɣ
Talent Relationship Management
In addition to the requisition, you must also define the screening process, how incoming
applications will be handled, correspondence to be generated and the activities (for
example ; initial 'thank you for your application' e-mail, phone interview, first in-person
interview, offer confirmation, etc.).
You must also consider how you will manage your talent pool. An individual who is not a fit for
the initial position applied for might be the ideal candidate for a position at some point in the
future. Establishing a relationship with candidates in your talent pool is an important step in
the overall recruitment process.
SAP E-Recruiting is an all-round recruiting solution. It is fully Internet-enabled.
The following processes are included in SAP E-Recruiting:
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Requisition
management
Requisitions are an agreement between managers and recruiters
regarding how vacant positions should be handled during the
recruitment process. This document specifies how the selection
process will be handled.
Management of job
postings
Job postings indicate the qualifications required of candidates.
Management of this process includes defining how qualified candidates
will be attracted to apply at the company.
Entry of
applications
This process determines how incoming applications will be handled (for
example, through channels such as e-mail, intranet, Internet, job fairs,
and so on).
Online services Candidates have the ability to register and log on using their own
personal start pages. Candidates may search for vacancies, complete
an online application, and check on the status of their application.
Talent Relationship
Management
This concept facilitates the integration of internal and external
candidates in one talent pool. Search and match functionalities, along
with classification of candidates, facilitates the search for the ideal
candidate.
The hiring action executed for the successful candidate can initiate the transfer of information
maintained on SAP E-Recruiting infotypes to personnel administration infotypes.
Performance Management
Performance Management is the basis of pay for performance and may also be part of the
succession planning process. The goal of performance management is to align the goals and
objectives of employees to the overall corporate strategy.
The overall performance rating of the employee can be passed to Enterprise Compensation
Management and can be used to determine, for example, the percentage increase an
employee receives.
Additional information can be found using the following links.http://www.sap.com/erp-hcm
and service.sap.com/erp-hcm
The appraisal functionality in Personnel Development supports flexible appraisal processes
that you can use to carry out standardized appraisals with the highest level of objectivity.
Appraisals are part of employee master data information.
Figure 71: Performance Management
Performance Management allows you to:
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Ɣ
Align your workforce with enterprise strategy
Ɣ
Communicate strategy
Ɣ
Execute flexible and future-oriented performance planning
Ɣ
Review performance and identify top performers
Ɣ
Provide the transparency and flexibility required to reflect today's rapidly changing
requirements
Ɣ
Create a basis for performance-based pay and succession management
Performance Management offers a tool that enables you to track employee performance
using individual objectives. Performance Management also enables you to pass corporate
goals and strategies down to the employee level by helping you to establish detailed
objectives and initiatives, hold performance feedback reviews (appraisals), and make
compensation adjustments (for example merit and bonus awards).
Performance Management offers flexibility and integration.
Flexibility of Performance Management includes the following:
Ɣ
Templates provide the framework to guide participants through the performance cycle
Ɣ
Supports best-practice performance management processes
Ɣ
Single-screen configuration
Ɣ
Status and workflow management
Ɣ
Open architecture for customer enhancements
Ɣ
Enhanced analytics
Performance Management integration includes the following:
Ɣ
Balanced Scorecard is integrated with individual objectives.
Ɣ
Appraisal results can be used for compensation adjustment adjustment proposals.
Ɣ
Job and position requirements are linked to employee objectives.
Ɣ
Development plan steps are displayed and monitored.
Ɣ
Individual training courses are displayed and monitored.
Performance Management Solution Capabilities
Figure 72: Solution Capabilities
Benefits of Performance Management include the following:
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Ɣ
Templates provide structure for objective setting and appraisal documents.
Ɣ
By integrating with strategic enterprise management (SEM), the departmental objectives
taken from the company objectives can be displayed in the Balanced Scorecard, and the
relevant strategic objectives can be transferred directly to employee objectives.
Ɣ
Better communication at all hierarchy levels.
Ɣ
Integration with personnel development enables requirements profiles to be taken from
position requirements.
Ɣ
These are the qualifications required to perform the tasks of a position, and they are
used in the employee's performance appraisal.
Once the appraisal process is complete, you can use integrated, automated follow-on
processes, such as updating the employee's qualification profile in personnel
development or adjusting the employee's remuneration in payroll.
Ɣ
Iintegration with SAP Learning Solution enables appraisal processes for business events
(training classes) and appraisals for attendees, as well.
Personnel Development
In the Personnel Development component, you can plan development and further education
and training for your employees by integrating with Training and Event Management.
Figure 73: Personnel Development
The comparison of the position requirements profile (the skills required to perform the tasks
of the position) and an employee qualification profile (the skills the employee holding the
position possesses) results in development requirements for that employee. Development
plans may be used to assign qualifying actions, such as participation in a training program, to
employees.
Training and Event Management
Training and Event Management is a highly integrated component that supports you in the
planning, execution, and management of training courses and business events.
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Figure 74: Processes in Training and Event Management
Training and Event Management includes the following main processes, each supplemented
by reporting options:
1. Business event preparation: Includes the creation and maintenance of the master data
used to create the business event catalog, including time schedules, event locations,
resources, and so on
2. Business event catalog: Includes the creation of business events
3. Day-to-day activities: Includes booking participants, pre-booking attendance, replacing
bookings, re-booking, cancelling attendance, and preparing correspondence.
4. Recurring activities: Includes activities required periodically, such as firmly booking events
(confirming the event will run), locking and unlocking events (controlling enrollment),
cancelling, and follow-up activities (reporting, performing cost re-allocations for internal
attendees).
Due to a high level of integration with other SAP components,Training and Event Management
is an ideal tool for constantly extending and updating employee knowledge. For example, the
link with Personnel Development enables you to identify qualification deficits and react with
targeted training programs in Training and Event Management. The link to the SAP Learning
Solution enables you to combine traditional classroom training in Training and Event
Management with Web-based learning methods.
Time Management
There are defined interfaces to connect an SAP system to other systems for very specific
data exchanges, for example, to integrate time recording terminals into the SAP HCM
solution. These are mentioned on the figure. SAP offers certification of vendors of theses
systems and a list of certified partners can be found on the SAP homepage. The link is
http://www.sap.com/ecosystem/customers/directories/searchsolution.epx (you should
verify this link from time to time, as it might change). You can show a list of partners in the
Certification Category “Human Resources.” Once you access the link, leave the Solution
Name and Company Name blank and in the Certification Category section, select Human
Resources from the drop down list, scroll to the bottom of the selection screen and select
Search.
Briefly explain the different areas covered in Time Management as shown in the figure. An
example of a time recording terminal is Kronos. Time Manager's Workplace is one method
for recording time data using a Time Administrator.
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Time Management data has impact in other application components, such as Controlling and
Logistics (e.g. capacity planning). In order to use Time Data, Master Data has to exist. This
data is passed to Time Evaluation and then to Payroll. After Payroll has been run, results are
transferred into finance.
The Time Management application supports you in all processes that concern planning,
recording, and valuating employee attendance and absence times. For example, if Training
and Event Management is integrated with Time Management, the booking of an employee
into a course causes a time data record to be created as an attendance. If an employee who is
being booked on a course is absent, due to vacation, for example, the system notifies the
person attempting to register the employee that the employee is not available.
Figure 75: Time Management: Overview
Evaluating work performed by employees and determining employee availability are essential
elements for a human resources system. This information is also relevant for other areas,
such as controlling (how the employee spent their time) and logistics (determines employee
availability for planning activities), and is a factor that influences enterprise-wide decisions.
Time management allows you to flexibly display and record working times.Information on
working times is used to calculate gross wages in payroll. There are various options available
for recording time data, such as hours worked, vacation, off-site work, or substitutions.
Time recording options include:
Ɣ
Online data entry by the time administrator (for example, using the Time Manager's
Workplace)
Ɣ
Using front-end time recording systems (for example, Kronos)
Ɣ
Using the Cross-Application Time Sheet (CATS)
Ɣ
Using Employee Self-Service (ESS) applications
Planned Working Time
Time data is stored in special time infotypes, just like HR master data information. The
planned working time infotype 0007 is the central time management infotype. It contains the
times when the employee is scheduled to work according to the assigned work schedule.
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Figure 76: Planned Working Time Infotype
By defining the planned working time for your employees, you determine how long they must
work on a daily basis.
Payroll
Designed for global business, SAP ERP HCM supports payroll functions and regulatory
requirements.
In general terms, payroll is concerned with calculating each employee's remuneration for the
work performed. It encompasses a multitude of processes, such as the creation of payroll
results and salary statements, bank transfers, and payment to employees.
Figure 77: Payroll (1)
Payroll includes a number of additional subsequent activities.
Examples of these activities include the following:
Ɣ
Transfer of payroll results to accounting (for example, expenses and liabilities)
Ɣ
Data medium exchange (transfer of net pay amounts to financial institutions)
Ɣ
Other evaluations, such as the payroll account and payroll journal
Ɣ
The preparation of pay statements
The calculation of payments to employees includes the following:
Ɣ
Calculation of pay elements (gross amount)
Ɣ
Statutory and voluntary deductions (country-specific, net amount)
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These payments and deductions are included in the payment calculation,using different wage
types.The employee is usually paid by bank transfer or check, and the payment amount is
printed on a form for the employee.
Employee Self-Service
Explain that the concept of self-service is to reduce the paperwork load of the HR department
so that they may focus on more strategic functions. Review the benefits of ESS. Enabling
employees to maintain their own data and to have access to their own information increases
employee satisfaction and accuracy of data.
Using Employee Self-Service (ESS), employees maintain their own personal information and
control many administrative transactions and other processes once handled by the HR staff.
ESS streamlines approval processes for activities such as vacation requests and allows
employes to check, for example, their vacation balance or benefits, thus reducing
administrative costs.
With SAP ESS, employees can take responsibility for updating their own data. SAP ESS
empowers employees to view, create, and maintain their data any time, anywhere, via Web-
based technology.SAP ESS has an intuitive, HTML-based user interface.
SAP ESS is an effective means to provide real-time access and data maintenance capabilities
to the source or owner of the data, and to offload many of the data entry and related
customer service activities that may typically be performed in a company’s human resources,
payroll, benefits, and travel departments.
Employees use SAP Employee Self-Service to complete the following activities:
Employee Self-Service Activity Employee Self-Service Activity
Submit travel expenses Enter work times
View the calendar Enroll in benefits
Search the Who's Who Update banking information
Update personal information (such as address, marital
status, and so on)
Enroll in a training course
SAP ESS utilizes the same database as ERP. No dual maintenance or reconciliation is
required. It takes full advantage of SAP system global capabilities, including country
localization
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Figure 78: SAP Employee Self-Service: Highlights
Benefits of SAP Employee Self-Service include:
Ɣ
Well-informed employee decisions
Ɣ
Reduced administrative costs and shorter cycle times
Ɣ
Accurate employee records
Ɣ
Time and resources saved for strategic HR initiatives
Manager Self-Service
Manager Self-Service consists of a set of easy-to-use tools, transactions, and reporting
capabilities. MSS gives managers a single point of access to information and enables them to
manage information efficiently, effectively, and proactively in one Web interface. It empowers
managers to execute human capital and finance management strategies for budgeting,
recruitment, compensation, and cost management, thus creatingreturn on investment.
MSS leverages human resources and financial back-end systems by making pertinent
information available to managers throughout your enterprise. Self-service tools automate
paper-based processes, such as requests for employee master data changes (for example,
transfers and salary increases) or performance appraisals.
The MSS solution integrates different systems, and management information is consistent
across the organization.
Figure 79: Single Point of Access
Unit 6: Human Capital Management
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Managers can use Manager Self-Service to:
Ɣ
Obtain information.
Ɣ
Recruit employees.
Ɣ
Perform compensation planning.
Ɣ
Control costs.
Ɣ
Manage budget and headcount planning.
Ɣ
Submit personnel data changes.
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Unit 6
Exercise 1
Hire an Employee
Business Example
Turn the table locks on by running ZSENQON. This is required to enable participants to save
infotype 2006 Absence Quotas.
You are responsible for the maintenance of new-hire information. For this reason, you must
execute a hiring action for a newly hired employee.
Hire an Employee
Execute a hiring action to create the required infotypes for the new employee. Use the field
values provided in the table.
Field Value
Personnel Area CABB
Employee Group 1
Employee Subgroup X0
Personal Information Infotype Data of Your choice
Organizational Assignment Infotype : Personnel
Subarea
001
Dialog Box: Assign to a Position? Select No Assignment
Address Infotype Data of your choice
Planned Working Time Infotype Press enter to accept defaults and save
Basic Pay Infotype: PS Group E01 (press enter to accept defaults
Bank Details Infotype: Payment Method S
Absence Quota Infotype Entry not required. Save this infotype.
Travel Privileges Infotype Entry not required. Save this infotype.
Communication Infotype Skip this infotype
1. Execute a hiring action to create the required infotypes for the new employee. Use the SAP
Menu as the starting point for navigation by selecting the SAP Menu icon .
2. Infotype 0000 Actions is presented.
3. Infotype 0002 Personal Data is presented.
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4. Infotype 0001 Organizational Assignment is presented.
5. When saving the Organizational Assignment infotype 0001, a dialog box is presented.
6. The dialog box Subtypes for Infotype Addresses is presented.
7. Address infotype 0006 is presented.
8. Planned Working Time infotype 0007 is presented.
9. Basic Pay infotype 0008 is presented.
10.Bank Details infotype 0009 is presented.
11. Absence Quotas infotype 2006 is presented.
12. Travel Privileges infotype 0017 is presented.
13. Communication infotype 0105 is presented.
14. The Personnel Actions screen is presented. This indicates that the execution of the hiring
action has been completed.
The newly hired employee now exists in the system with a personnel number and
associated master data records.
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Unit 6
Solution 1
Hire an Employee
Business Example
Turn the table locks on by running ZSENQON. This is required to enable participants to save
infotype 2006 Absence Quotas.
You are responsible for the maintenance of new-hire information. For this reason, you must
execute a hiring action for a newly hired employee.
Hire an Employee
Execute a hiring action to create the required infotypes for the new employee. Use the field
values provided in the table.
Field Value
Personnel Area CABB
Employee Group 1
Employee Subgroup X0
Personal Information Infotype Data of Your choice
Organizational Assignment Infotype : Personnel
Subarea
001
Dialog Box: Assign to a Position? Select No Assignment
Address Infotype Data of your choice
Planned Working Time Infotype Press enter to accept defaults and save
Basic Pay Infotype: PS Group E01 (press enter to accept defaults
Bank Details Infotype: Payment Method S
Absence Quota Infotype Entry not required. Save this infotype.
Travel Privileges Infotype Entry not required. Save this infotype.
Communication Infotype Skip this infotype
1. Execute a hiring action to create the required infotypes for the new employee. Use the SAP
Menu as the starting point for navigation by selecting the SAP Menu icon .
a) From the SAP Easy Access menu, choose Human Resources -> Personnel Management
-> Administration -> HR Master Data ->Personnel Actions.
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b) Enter Personnel Number 500997## ( ## = your group number).
c) Enter a From Date of the first of the current month.
d) Select the Action Type Hiring HR050 by highlighting the line.
e)
Choose Execute .
2. Infotype 0000 Actions is presented.
a) In the Personnel Area field, enter CABB.
b) In the Employee Group field, enter 1.
c) In the employee subgroup field, enter X0.
d)
Save your entry .
3. Infotype 0002 Personal Data is presented.
a) Enter data of your choice for the firs name, last name, and birth date of the new
employee. The remaining fields are optional and may be left blank.
b) Save your entry.
4. Infotype 0001 Organizational Assignment is presented.
a) Under the Enterprise Structure section, in the Subarea field, enter 0004.
b) Save your entry.
5. When saving the Organizational Assignment infotype 0001, a dialog box is presented.
a) Select the No Assignment radio button and choose Continue.
b) Save your entry.
6. The dialog box Subtypes for Infotype Addresses is presented.
a) Select 1 Permanent Residence.
b) Select Copy.
7. Address infotype 0006 is presented.
a) Complete this infotype with data of your choice.
b) Save your entries.
8. Planned Working Time infotype 0007 is presented.
a) Press Enter to update the infotype with default information set up in configuration.
b) Save your entries.
9. Basic Pay infotype 0008 is presented.
a) In the PS Group field (pay scale group), enter E01 and press Enter. Default values are
presented.
b) Save your entries.
10.Bank Details infotype 0009 is presented.
a) In the Payment Method field, enter S and press Enter to confirm your entry.
b) Save your entries.
11. Absence Quotas infotype 2006 is presented.
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a) Changes are not required to this infotype.
b) Save your entries.
12. Travel Privileges infotype 0017 is presented.
a) Changes to this infotype are not required.
b) Save your changes.
13. Communication infotype 0105 is presented.
a)
This infotype may be skipped by selecting the Next Record icon .
14. The Personnel Actions screen is presented. This indicates that the execution of the hiring
action has been completed.
The newly hired employee now exists in the system with a personnel number and
associated master data records.
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LESSON SUMMARY
You should now be able to:
Ɣ
Identify the components of SAP ERP Human Capital Management
Ɣ
Outline the organizational structures of SAP ERP Human Capital Management
Ɣ
Maintain employee master data
Lesson: Viewing Components of Human Capital Management
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Unit 6: Human Capital Management
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UNIT 7 Analytics and Strategic
Planning
Lesson 1
Executing Analytics and Strategic Planning Reports 258
Exercise 1: Create a Business Intelligence Report 266
UNIT OBJECTIVES
Ɣ
Execute a sales report
Ɣ
Execute an analytical business intelligence report
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Unit 7
Lesson 1
218
Executing Analytics and Strategic Planning
Reports
LESSON OVERVIEW
This lesson shows you how to generate various reports, including SAP Business Intelligence,
SAP BusinessObjects Dashboards, and standard reports.
This lesson covers the different possibilities of reporting and analytics. The lesson starts
with simple list reporting in SAP ECC, going to the more complex and advanced analytical
reporting of SAP NetWeaver BW and SAP BusinessObjects Intelligence Platform.
The reasons for a data warehouse and reporting should be explained in this lesson.
With Col.92 this lesson was reworked due to the acquisitions of Business Objects,
OutlookSoft and Pilot Software. SEM is no longer included in this course.
Also just shortly before this course was about to be finished, a branding change was
announced, effecting most of the products:
Ɣ
“Starting Jan 1, 2009, the use of the term Business Intelligence will be associated only
with the solutions from the SAP BusinessObjects Portfolio.”
Ɣ
“Business Intelligence will no longer be associated with SAP NetWeaver components or
the SAP Business Suite.”
SAP NetWeaver BI goes back to SAP NetWeaver BW, also other SAP NetWeaver which
previously had “BI” as part of the name, change back to “BW”.
Regarding the former Business Objects: The company was called Business Objects (with
space), when referring to branded products or services, it was BusinessObjects (without
space), at least after the takeover. After the takeover the name was first “BusinessObjects,
an SAP company”, now it is changed to “SAP BusinessObjects” (and it seems that it is always
the same way written, referring to the brand as well to the products).
To demonstrate BW functionality, you can use Client 900 in the instructor training system.
In the instructor system portal Xselsius demos are available.
Business Example
You are responsible for reporting and must be able to create, modify, and manage various
reporting options. For this reason, you require the following knowledge:
Ɣ
A good understanding of the difference between reporting and analytics
Ɣ
A basic understanding of online analytical processing (OLAP) and online transactional
processing (OLTP)
Ɣ
A basic understanding of SAP BusinessObjects Business Intelligence
LESSON OBJECTIVES
After completing this lesson, you will be able to:
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Ɣ
Execute a sales report
Ɣ
Execute an analytical business intelligence report
Reporting Versus Analytics
Online transactional processing (OLTP) refers to the type of processing typically performed in
an SAP ERP system.
The reporting in this type of system often refers to information requirements for day-to-day
work. List displays are reports that access data that is generated directly from online
transactions. The user can access the source documents directly from these lists. List
displays enable the user to request a listing of documents or master data information.
Figure 80: Reporting and Analytics
Simple difference between “Information System” and “BW”: The information system is using
tables in the ERP system to aggregate data, BW has it's own database.
It is also possible to have information structures aggregate data for simple operational
analytics. This varies greatly from reporting used in an online analytical processing (OLAP)
environment. Analytical systems use a data warehouse where key figures are derived from
various sources and are aggregated.
Business Intelligence
Business intelligence is the use of an organization's disparate data to provide meaningful
information and analysis to employees, customers, suppliers, and partners for more effective
decision making. The core capabilities of business intelligence enable the user to group
information together, measure it, give users access to it, and share information changes.
Lesson: Executing Analytics and Strategic Planning Reports
© Copyright . All rights reserved. 259
Figure 81: Business Intelligence
Companies create data during business activities. Employees use this data as a basis for
making decisions. Business intelligence (BI) collates and prepares the enterprise data for
analysis. By analyzing the data using BI tools, you gain insights that support the decision-
making process. BI makes it possible to quickly create reports about business processes and
results and to analyze and interpret data about customers, suppliers, and internal activities.
Explain the reason for a product like SAP NetWeaver Business Information Warehouse. In an
operative system (OLTP) the detailed data is spread in several database tables, in an
informative or analytical system (OLAP) aggregated data, normally coming from various
systems, is combined for faster access.
OLTP versus OLAP
OLTP environments are fundamentally different from OLAP environments.
Figure 82: OLTP versus OLAP
Unit 7: Analytics and Strategic Planning
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OLTP OLAP
Level of detail Stores data with a very high
level of detail
Data is compressed for high-
performance access
(aggregation).
History Archiving data in the OLTP
area means it is stored with
minimal history.
Data warehouse area
requires comprehensive
historical data.
Changeability Frequent data changes Data is frozen at a certain
point for analysis.
Integration not applicable Requests for comprehensive,
integrated information are
very high for analysis.
Normalization Due to the reduction in data
redundancy, normalization is
very high for operative use.
Less normalization in the
data warehouse because of
data staging and lower
performance
Performance Operative applications also
need to carry out additional
performance functions,
including change, insert and
delete.
OLAP environment is
optimized for read access.
SAP NetWeaver Business Warehouse
Figure 83: SAP NetWeaver Business Warehouse Platform
A complete business intelligence solution is subdivided into various areas. SAP brings
together a powerful business intelligence infrastructure, a comprehensive set of tools,
planning, and simulation capabilities, and data-warehousing functionality. This is delivered
through enterprise portal technology. This enables strategic analysis and supports decision-
making. Authorized employees can access and evaluate historic and current data with
different levels of detail.
Lesson: Executing Analytics and Strategic Planning Reports
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SAP NetWeaver BW Architecture
Figure 84: SAP NetWeaver BW Architecture
SAP NetWeaver BW and its tools is still central in the analytics area. It is supplemented by the
various products coming from SAP BusinessObjects and others, which are not part of
NetWeaver. Together they form SAP BI.
The SAP NetWeaver BW architecture contains the following layers:
Extraction Enterprise data is collected centrally in the SAP NetWeaver Business
Warehouse. The data is usually extracted from different sources and loaded
into SAP NetWeaver BW. SAP NetWeaver BW supports various sources,
including relational and multidimensional sources and SAP and non-SAP
sources. To consolidate the data for evaluations, technical cleanup steps are
performed and business rules are applied. The consolidated data is stored in
the data warehouse. This entire process is called extraction, transformation
and loading (ETL).
Data storage
and data flow
SAP NetWeaver BW offers a number of options for data storage. These
include the implementation of a data warehouse or an operational data
store, as well as the creation of the data stores used for the analysis.
Data analysis
and planning
Analysis can be used to obtain information from the data set and can be
used as a basis for decisionmaking. Online analytical processing (OLAP)
prepares information for large amounts of operative and historical data. The
BW OLAP processor allows multidimensional analysis from various business
perspectives. Data mining helps you explore and identify relationships in the
data.
How to Execute a Sales Report
1. From the SAP Easy Access screen, choose Logistics -> Logistics Controlling -> Sales
Information System -> Standard analysis -> MCTE Sales organization .
Unit 7: Analytics and Strategic Planning
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2. Execute the report for Sales Organization 1000 and for the proposed period, and briefly
explain the result and the drill-down possibilities.
SAP BusinessObjects
SAP BusinessObjects is a market leader in enterprise business intelligence. By making
information easily accessible and consumable with simplified user interfaces, SAP
BusinessObjects helps companies bridge the information divide between business
intelligence (BI) power users and everyday business users. As a result, organizations gain
better business insight, improving decision making and enterprise performance.
For details about the SAP BusinessObjects offerings you should make yourself familiar with
the BI pages on SDN, where the differences and future developments are explained.
Figure 85: SAP and SAP BusinessObjects Products
While some products on the figure complement each other, SAP BusinessObjects Enterprise
is not the same as SAP NetWeaver BW (the two lowest building blocks). BusinessObjects
does not use a data warehouse in the same way as SAP, it is working with direct access to the
data sources. BWA stands for BW Accelerator
SAP BusinessObjects Products
SAP BusinessObjects offers the following products:
SAP BusinessObjects Data
Services
Provides a graphical interface that allows you to easily extract
data from diverse sources, transform that data to meet
business requirements, and load the data into a single location
SAP Netweaver BW
Accelerator
Provides rapid access to data, while keeping administration
effort to a minimum
SAP NetWeaver Master
Data Management
Is used as a platform to consolidate, cleanse, and synchronize a
single version of the truth for master data within a diverse
application landscape
Lesson: Executing Analytics and Strategic Planning Reports
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SAP BusinessObjects Business
Intelligence Solutions
A portfolio of solutions that enables the user to search
through business information
SAP BusinessObjects
Web Intelligence
Has a simple user interface for self-service reporting and
analysis, independent from IT, and helps to combine SAP and
non-SAP data in a single report
Crystal Reports Enables the creation and modification of highly formatted reports
on top of SAP NetWeaver BW
SAP BusinessObjects
Dashboards
A data visualization tool that enables the integration of dynamically
updated data into Microsoft Office, PDF, and Web documents with
SAP BusinessObjects queries and reports
Visual Composer A Web-based application that enables business experts and
developers to quickly create business application components
without coding
SAP NetWeaver Portal Offers a single point of access to SAP and non-SAP information
sources, enterprise applications, information repositories,
databases, and services inside and outside your organization. All
information is integrated into a single source.
How to Execute an SAP BusinessObjects Dashboards Query
1. Download the file SAP01_XcelsiusI_Demo.xls from the Business Workplace shared folder
SAP01 and save it to the My Documents folder in the Common Training WTS session.
2. Start Xcelsius using the path Start -> Programs -> Xcelsius -> Xcelsius 2008 . Import the
Excel model SAP01_Xcelsius_Demo from the My Documents folder.
3. Insert a bar chart that visualizes the projected computer sales data in 1,000s with one bar
per product line.
4. Use a horizontal slider to give the bar chart what-if capabilities. You should now be able to
see the impact of a change in the sales growth rate for desktops in the bar chart.
5. Add more horizontal sliders to the dashboard to give the bar chart what-if capabilities for
the other product lines.
6. Add a custom gauge to visualize the total projected sales for all product lines. Use alerts
within the gauge to indicate bad, critical, and good values.
7. Add a custom pie chart that shows the product mix for 2009 for all product lines.
8. Finalize the presentation by adding a title text field for the dashboard. Also label the sliders
with a text field. Increase the font size of the text fields to highlight them. Add a
background element to the canvas. Preview the dashboard.
9. Save the dashboard in the local My Documents folder. Export the dashboard to
PowerPoint and save the PowerPoint in the My Documents folder. Start the presentation
mode in PowerPoint.
Unit 7: Analytics and Strategic Planning
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How to Execute an SAP BusinessObjects Web Intelligence Query
1. Download the file SAP01_WebI_Demo.xls from the Business Workplace shared folder
SAP01 and save it to the My Documents folder in the Common Training WTS session.
2. From the SAP Easy Access screen, choose Start -> Business Objects XI 3.1 -> Business
Objects Enterprise Client Tools -> Web Intelligence Rich Client. Select Authentication:
Standalone and choose the Logon button.
3. Choose the Open a document icon , select the file type Text and Excel Files, select the
SAP01_WebI_Demo.xls file in your My Documents folder, and choose Open.
4. Make sure that the Field Selection is All Fields and the check-box First row contains column
names is selected. Choose Next.
5. Do not change anything in the Create a Query window and choose Run Query.
6. Rename the report title to Sales Order Report.
Double-click the report title and enter the name Sales Order Report. Then press
Enter.
7. Rename the column heading from Sold to party to Customer.
Double-click the Sold to party cell and enter Customer, then press Enter. If you get a
prompt to validate the formula, respond with Yes.
8. Create a section in the report according to the customers, then create a sum of Sales
Order Items for each customer.
1.Highlight any customer value cell, right-click, and choose Set as Section. 2. Highlight any
empty customer value cell, right-click, and select Remove -> Remove Column. 3. Highlight
any value cell of Sales Order Item and select the Insert Sum button from the tool bar to
create totals by customer.
9. Visualize the section with a horizontal grouped bar chart.
Right-click one of the tables with products and sales order items.
10.Choose Turn to and select the Bar Chart icon.
11. Select Horizontal Grouped.
12. Save the Web Document as a PDF in your My Documents folder and open it using Windows
Explorer.
Choose File -> Save As -> PDF and select the My Documents folder.Do not change any of
the settings. Open the file using Windows Explorer.
Lesson: Executing Analytics and Strategic Planning Reports
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Unit 7
Exercise 1
Create a Business Intelligence Report
Business Example
You are responsible for the creation of reports. Using business intelligence, you must create a
report listing the top 10 customers in Germany according to their sales volume.
Create a Business Intelligence Report
1. Open the query T SAP01 Customer Analysis. Start the BEx Analyzer, log onto the training
system, and search in the InfoAreas for BW Training -> BW Customer Training -> BW305
Reporting -> Customer Cube T_SDDEMO2 -> SAP01 Customer Analysis.
2. Drill down to Countries instead of Sold-to Parties.
3. Filter for the country DE-Germany.
4. Switch back again to see the Sold-to party.
5. Sort according to the sales volume . The highest sales volume should be at the top of the
list.
6. Filter for the top 10 customers according to the sales volume.
7. Create a graphic for these 10 customers. First, remove the result rows. This has to be done
on the Sold-to Party characteristic. Display the table as a chart, which should show the top
10 customers with the Sales Volume and Incoming Orders.
8. Close the analyzer again. Do not save the query.
266 © Copyright . All rights reserved.
Unit 7
Solution 1
Create a Business Intelligence Report
Business Example
You are responsible for the creation of reports. Using business intelligence, you must create a
report listing the top 10 customers in Germany according to their sales volume.
Create a Business Intelligence Report
1. Open the query T SAP01 Customer Analysis. Start the BEx Analyzer, log onto the training
system, and search in the InfoAreas for BW Training -> BW Customer Training -> BW305
Reporting -> Customer Cube T_SDDEMO2 -> SAP01 Customer Analysis.
a) From the SAP Easy Access screen, choose Start -> Programs -> Business Explorer ->
Analyzer.
b) Select BEx Analyzer -> Open Query.
c) In the SAP Logon dialog box, select the training system you are using and choose OK.
d) Enter the required user data (Client, User, Password, and Language) and choose OK. If
an SAP Logon Control dialog box appears, continue by choosing OK.
e) Search in the InfoAreas. Choose W Training -> BW Customer Training -> BW305
Reporting -> Customer Cube T_SDDEMO02 -> SAP01 Customer Analysis and double-
click on the entry.
f) Choose the SAP01 Customer Analysis.
2. Drill down to Countries instead of Sold-to Parties.
a) Right-click any line in the sold-to party column. You can also choose the header line
where it says sold-to party.
b) Choose Swap Sold-to party with Country.
3. Filter for the country DE-Germany.
4. Switch back again to see the Sold-to party.
5. Sort according to the sales volume . The highest sales volume should be at the top of the
list.
a) Select the arrow on any value field in the sales volume EUR field.
6. Filter for the top 10 customers according to the sales volume.
a) Right-click any value field in the sales volume EUR column and choose Create Condition
-> Sales Volume EUR Top 10.
7. Create a graphic for these 10 customers. First, remove the result rows. This has to be done
on the Sold-to Party characteristic. Display the table as a chart, which should show the top
10 customers with the Sales Volume and Incoming Orders.
a) Right-click any line in the Sold-to party column. You can also choose the header line
(where it says Sold-to party)..
© Copyright . All rights reserved. 267
b) Choose Parties.
c) Choose OK. The Overall Result line should vanish.
d) Choose Chart.
8. Close the analyzer again. Do not save the query.
a) Choose File -> Exit. Choose No if the system asks Do you want to save the changes you
made to T_SAP01_Customer.xlx?.
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LESSON SUMMARY
You should now be able to:
Ɣ
Execute a sales report
Ɣ
Execute an analytical business intelligence report
Lesson: Executing Analytics and Strategic Planning Reports
© Copyright . All rights reserved. 269
Unit 7: Analytics and Strategic Planning
270 © Copyright . All rights reserved.
Unit 7
229
Learning Assessment
1. Data in an online analytical processing (OLAP) environment is only saved for a short
period of time.
Determine whether this statement is true or false.
X
True
X
False
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Unit 7
230
Learning Assessment- Answers
1. Data in an online analytical processing (OLAP) environment is only saved for a short
period of time.
Determine whether this statement is true or false.
X
True
X
False
The data warehouse area requires comprehensive historical data.
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UNIT 8 SAP Services
Lesson 1
Accessing SAP Services 274
UNIT OBJECTIVES
Ɣ
Explain the different services offered by SAP
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Unit 8
Lesson 1
232
Accessing SAP Services
LESSON OVERVIEW
This lesson describes some of the most important services SAP provides to customers and
partners. It is meant to be used as a final statement of how customers can effectively
implement the systems discussed in the previous lessons. You do not need to spend a lot of
time here. Briefly touch on the highlights, which are maintenance and support, consulting
and education services. The demonstrations have been removed from this lesson. Should
you decide demo some of the sites referenced, you may require a Service Marketplace User
ID. If you do not have a User ID, it is recommended you access: http://service.sap.com and
set-up a User ID before you begin this lesson.
This lesson shows you how to find additional information about the services SAP provides its
customers and partners.
Business Example
You are responsible for presenting a summary of SAP services to the steering committee and
you must create a presentation. You require the following knowledge:
Ɣ
Good understanding of SAP services
Ɣ
Good understanding of SAP maintenance and support
Ɣ
Good understanding of finding information on the SAP Marketplace and help portals
Ɣ
Good understanding of SAP Consulting services
Ɣ
Good understanding of SAP Education services
LESSON OBJECTIVES
After completing this lesson, you will be able to:
Ɣ
Explain the different services offered by SAP
274 © Copyright . All rights reserved.
SAP Services
Figure 86: SAP Services
With SAP Services, IT and business strategies can be aligned, and software can get up and
running quickly and be kept at peak operating levels.
SAP Service Offerings
SAP Services include the following:
Consulting services Offers best-in-class consulting through planning,
implementation, and optimization services
Financing for SAP
solutions
Provides companies with affordable, all-inclusive, and
predictable financing options that cover the entire cost of the
SAP solution
Business process
outsourcing
Supports business process outsourcing (BPO) providers in
setting up services that generate sustainable business value
Hosting and application
management
Operates, manages, and maintains SAP solutions for
organizations of any size
Software maintenance
and support
Provides services for planning, implementation, and operations
Custom development Incorporates SAP development strategies to deliver solutions
that meet unique business goals
SAP Maintenance and Support
SAP Active Global Support delivers the skills and resources you need to optimize the
performance of your solution and manage your business processes effectively.
This should introduce the different levels of SAP support. Please note that SAP Enterprise
Support is the standard level for SAP Business Suite customers. SAP MaxAttention offers
additional services, while SAP Safeguarding concentrates on technical quality management.
Lesson: Accessing SAP Services
© Copyright . All rights reserved. 275
Figure 87: Software Maintenance and Support
SAP maintenance and support services include the following:
SAP Enterprise
Support
Provides SAP support through a 24/7 guaranteed service-level
agreement, continuous quality checks, support advisory, and advanced
support for implementing SAP ERP enhancement packages and
support packages
SAP MaxAttention Aligns your needs with a strategy for the end-to-end operation of your
SAP solutions, focusing on core business processes, the system
landscape, IT automation, and protection of IT investments
SAP Safeguarding Manages risks and ensures the technical robustness of your SAP
solutions during implementation, upgrade, and operations
SAP Enterprise Support
SAP Enterprise Support helps you reduce costs and risks and protect your IT investments by
offering an easier methodology for deploying and managing software innovations. The focus
of SAP Enterprise Support is the management of your IT landscape over the life cycle of your
applications.
Categories of development included in SAP Enterprise Support include the following:
Ɣ
Standard SAP software
Ɣ
Custom development (delivered by SAP)
Ɣ
Partner solutions
Figure 88: SAP Enterprise Support
Benefits of Enterprise Support
Fast, effective problem resolution is essential to minimizing costly downtime. If you face an
issue when running your core business processes, you need access to expert knowledge right
away. With SAP Enterprise Support, you have access to the knowledge resources and
collaboration capabilities of SAP global support.
Unit 8: SAP Services
276 © Copyright . All rights reserved.
SAP Enterprise Support provides:
Ɣ
Consistent standards
Ɣ
Tool- and process-supported diagnostics
Ɣ
Life cycle management based on standards and tools
Ɣ
Remote supportability
Ɣ
Monitoring and management of your business processes
Ɣ
Enabling management of your custom code
Figure 89: SAP Enterprise Support Offerings
SAP Service Marketplace
To design, build, and maintain a high-quality solution, you need efficient access to a variety of
services from SAP and others. The SAP Service Marketplace gives you one-stop access with
easy, guided navigation to a full range of offerings from SAP and SAP partners. You benefit by
completing your solution faster, with higher quality, and at a lower cost of ownership at all
stages of the life cycle.
You can reach the SAP Service Marketplace from your SAP Enterprise Portal or directly at .
Lesson: Accessing SAP Services
© Copyright . All rights reserved. 277
Figure 90: SAP Service Marketplace
The service marketplace is the primary point of information for all of SAP's services. Keep
this at a very high level and just touch on some of them. Might be better to demo this.
SAP Service Marketplace Offerings
SAP Service Marketplace offerings include the following:
SAP Support Portal Supports your SAP solution during its entire life cycle
SAP Partner Portal The best single source of information and services for SAP
partners
SAP Channel Partner
Portal
Provides tools, information, and services that enable SAP Business
Partners to collaborate with SAP
Consulting, Solutions,
and User Group areas
Provide a wide range of material on all SAP solutions and
consulting services, as well as access to user group information
SAP Business One
Customer Portal
Allows all SAP Business One customers quick access to support
services, including information and applications to help you solve
any problems you encounter with your system
SAP Developer
Network
Offers a complete collection of content and collaboration
dedicated to SAP technology topics
SAP Help Portal Provides Web-based documentation for all SAP solutions. This
enables you to search the online library for the right information
where and when you need it.
SAP Business
Community
Where SAP experts, customers, and business leaders gather to
exchange insights, solve problems, and share ideas
SAP Education Helps you design and implement learning strategies covering the
entire corporate education value chain
SAP Library
The SAP Library provides the following search capabilities:
Ɣ
Obtain a functional overview of all SAP systems.
Unit 8: SAP Services
278 © Copyright . All rights reserved.
Ɣ
Find information organized according to information classes, including system
components, objects, functions, processes, and step-by-step procedures.
Ɣ
Search across the full SAP Library using a powerful search engine.
Ɣ
Search for the meaning of terms in the SAP Glossary.
Figure 91: help.sap.com
The SAP Library is offered free of charge. You can access the SAP Library without an SAP
Corporate Portal or SAP Service Marketplace at http://help.sap.com.
Consulting Services
With SAP Consulting as your valued business partner, you benefit from our SAP skills and
experience, our close working relationship with SAP development, and our extensive partner
network. SAP Consulting delivers sound advice and support throughout the entire solution life
cycle with a portfolio of services.
The benefits of the consulting services portfolio include the following:
Create new value: Consulting services leverage the entire SAP network to create value for
customers who are implementing SAP solutions by deploying SAP's
latest technology and functional innovations.
Helps you realize
additional value:
Consulting services help customers in the operations phase improve
total cost of ownership and continuously adapt to changing business
environments.
Protect value: SAP Consulting works with our team of partners, assuring quality and
mitigating risk to protect your software investment.
Lesson: Accessing SAP Services
© Copyright . All rights reserved. 279
Figure 92: SAP Consulting Services
SAP Consulting has a flexible engagement model that allows you to choose the level at which
SAP is involved in your project. Some customers simply want strategic oversight from SAP,
while others want complete end-to-end management and responsibility. Whatever your
needs, SAP Consulting's flexible engagement model can support your drive toward a
successful SAP implementation.
SAP Consulting Service Categories
SAP Consulting service categories include:
Program and project
management services
Help you monitor progress toward program goals, identify
potential problems, and increase the effectiveness of
complex programs.
Business process design
services
Focus on the architecture of business processes and their
associated systems and organizational structures.
Solution implementation
services
Provide input on how to best use applications to meet your
business needs.
Solution optimization and
upgrade services
Deliver comprehensive services for implementing the
upgrade and addressing technology, business processes,
training, and change and risk management.
Business and IT strategic
consulting services
Help you identify and quantify the business value that comes
with increased operational efficiency.
Solution integration services Help you integrate your company-specific IT systems with
both SAP and non-SAP solutions.
Solution and architecture
design services
Help integrate your business solutions into your overall
enterprise architecture, ensuring that your IT infrastructure
is aligned with business strategies.
Technical implementation
services
SAP works with you to translate high-level system
architecture into project-specific technical requirements.
Conversion, migration, and
landscape optimization
Align your system landscape with individual business
requirements.
Unit 8: SAP Services
280 © Copyright . All rights reserved.
Technology architecture
design
You receive specific recommendations for making your IT
environment robust, feasible, and scalable.
Quality and risk management
services
Ensure that your projects achieve strategic and operational
objectives.
SAP Education
Supported by cutting-edge software, services, and tools, SAP Education works with you to
build a culture of continuous blended learning and realize a measurable return on education.
SAP Education can help you design and implement learning strategies covering the entire
corporate education value chain.
With comprehensive offerings from SAP Education, you can achieve the following:
Ɣ
Optimize the value of your IT investment.
Ɣ
Reduce total cost of ownership.
Ɣ
Facilitate adoption and system use among your users.
Ɣ
Manage your enterprise-wide knowledge transfer and communication.
You will benefit from training options based on solution, role, or program.
You can take advantage of various types of training, including:
Ɣ
Instructor-led training at an SAP Education site or your own facility
Ɣ
SAP Solution Academy
Ɣ
End-user solutions
Ɣ
E-learning courses
Ɣ
Online knowledge products
SAP offers certifications and customized, industry-based education solutions in addition to
market-leading education choices for corporate learning, talent management, and Web-based
communication. With this breadth of course offerings, context, and delivery options, you can
leverage education solutions that are comprehensive, effective, convenient, and right for you.
Figure 93: Knowledge Transfer
Lesson: Accessing SAP Services
© Copyright . All rights reserved. 281
Students don't always know what other services SAP provides besides Project team training.
Emphasize the SAP virtual classroom, on-site classes, and certification.
SAP Education Details
Academy program
Companies that implement state-of-the-art SAP solutions often use the services of SAP-
certified consultants. As a result, they know they are getting expert help from partners
equipped with the very latest SAP solution information and training. The SAP Education
organization provides comprehensive training. Flexible, modular curricula enable you to
harness the full power of SAP solutions and provide the right knowledge at the right time.
Certification program
Few credentials in the business world carry the value of SAP certification. Those who hold it
have honed their skills through rigorous study or direct experience. They have demonstrated
their abilities by passing demanding, process-oriented exams. Regardless of whether you are
an SAP partner, customer, or user, SAP certification can give you a distinct competitive
advantage.
Education consulting services
With help from our experienced consultants, you can assess your educational needs, quantify
your desired results, and leverage direct assistance to achieve your goals.
Education consulting services include the following:
Change management Focuses on helping you introduce the change process, ensure
organizational alignment, and coordinate and integrate key
leadership, organizational, technology, and cultural issues so you can
achieve goals and objectives
Education needs
analysis
Examines your company's objectives, user communities, and current
implementation or implementation plan and develops
recommendations for helping you achieve your goals
High-level
assessment of
education scope
Provides your senior management with a clear and easily understood
definition of the size, scope, and cost elements required to
successfully implement or upgrade SAP solutions
Human performance
improvement
Empowers your employees to realize their full potential within the
working environment. This allows employees to achieve real business
results.
User services and
products
Improve daily operations, streamline training time, and increase user
productivity by bringing consulting, customized training,
documentation, and the latest computer-based tools to your
employees.
Training planning and
support
Provides advice on organizational training requirements such as
upgrades, new functionality and application implementation, and
rollouts; addresses training needs related to attrition, new hires, and
improvement initiatives
Unit 8: SAP Services
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FACILITATED DISCUSSION
Ask participants to name an SAP service and explain how they would use the service in their
business.
LESSON SUMMARY
You should now be able to:
Ɣ
Explain the different services offered by SAP
Lesson: Accessing SAP Services
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Unit 8: SAP Services
284 © Copyright . All rights reserved.
Unit 8
241
Learning Assessment
1. The SAP Service Marketplace allows customers and partners to order SAP services via the
Internet.
Determine whether this statement is true or false.
X
True
X
False
2. SAP Education offers only classroom trainings.
Determine whether this statement is true or false.
X
True
X
False
3. When is SAP Enterprise Support available?
Choose the correct answers.
X
A Five days a week
X
B From 8 am to 5 pm
X
C 24 hours a day, 7 days a week
X
D Not on holidays
© Copyright . All rights reserved. 285
Unit 8
242
Learning Assessment- Answers
1. The SAP Service Marketplace allows customers and partners to order SAP services via the
Internet.
Determine whether this statement is true or false.
X
True
X
False
The SAP Service Marketplace allows users to access a variety of services from SAP and its
partners, and request services via the Internet.
2. SAP Education offers only classroom trainings.
Determine whether this statement is true or false.
X
True
X
False
Besides instructor-led training at an SAP Education site or your own facility, SAP offers e-
learning courses and online knowledge products.
3. When is SAP Enterprise Support available?
Choose the correct answers.
X
A Five days a week
X
B From 8 am to 5 pm
X
C 24 hours a day, 7 days a week
X
D Not on holidays
SAP Enterprise Support is available 24/7.
286 © Copyright . All rights reserved.



.

SAP Copyrights and Trademarks

© 2011 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iSeries, pSeries, xSeries, zSeries, eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation. Linux is the registered trademark of Linus Torvalds in the U.S. and other countries. Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries. Oracle is a registered trademark of Oracle Corporation UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc. HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology. Java is a registered trademark of Sun Microsystems, Inc. JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company. Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company.

All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

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v .About This Handbook This handbook is intended to complement the instructor-led presentation of this course. It is not suitable for self-study. and serve as a source of reference. The following typographic conventions are also used. Typographic Conventions American English is the standard used in this handbook. All rights reserved. This information is displayed in the instructor’s presentation Demonstration Procedure Warning or Caution Hint Related or Additional Information Facilitated Discussion User interface control Example text Window title Example text © Copyright .

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vii . All rights reserved.Contents ix 1 2 17 18 21 26 38 41 43 Unit 2: Course Overview Unit 1: SAP Overview Lesson: Identifying SAP Applications and Components Navigation Lesson: Accessing The SAP System Exercise 1: Log On to the SAP System Lesson: Personalizing the SAP Interface Exercise 2: Create Favorites Exercise 3: Personalize Your User Interface Exercise 4: Use Navigation Options 10 minutes 10 minutes 10 minutes 10 minutes 55 56 62 Unit 3: System Wide Concepts Lesson: Identifying Elements of SAP's Organizational Structure Exercise 1: Display a Customer Master Record 10 minutes 75 77 86 89 94 100 105 110 115 121 125 130 136 Unit 4: Logistics Lesson: Ordering Material Exercise 1: Create a Purchase Order for Materials Exercise 2: Create a Goods Receipt Exercise 3: Process a Vendor Invoice Lesson: Using Supplier Relationship Management Lesson: Creating a Production Plan Exercise 4: Create a Planned Order Lesson: Processing Production Orders Exercise 5: Create and Release a Production Order Exercise 6: Confirm a Production Order and Goods Receipt Lesson: Using Supply Chain Management Lesson: Managing Sales Orders 10 minutes 10 minutes 10 minutes 10 minutes 10 minutes 10 minutes © Copyright .

.140 144 148 154 158 161 168 185 186 193 196 200 204 208 212 222 225 Unit 5: Exercise 7: Create a Sales Order Lesson: Creating Delivery Process Documents Exercise 8: Create a Delivery and Post a Goods Issue Lesson: Creating Billing Documents Exercise 9: Create a Sales Order Billing Document Lesson: Using Customer Relationship Management Lesson: Using Product Lifecycle Management Financials Lesson: Viewing Financial Processes Lesson: Outbound Payments Lesson: Analyze General Ledger accounting Exercise 1: Create a Journal Entry Lesson: Generating Financial Statements Exercise 2: Generate a Financial Statement Lesson: Monitoring Internal Costs Exercise 3: Execute a Cost Center Report Exercise 4: Execute a Profitability Analysis Report 10 minutes 10 minutes 10 minutes 10 minutes 10 minutes 10 minutes 10 minutes 231 232 250 Unit 6: Human Capital Management Lesson: Viewing Components of Human Capital Management Exercise 1: Hire an Employee 10 minutes 257 258 266 Unit 7: Analytics and Strategic Planning Lesson: Executing Analytics and Strategic Planning Reports Exercise 1: Create a Business Intelligence Report 10 minutes 273 274 Unit 8: SAP Services Lesson: Accessing SAP Services viii © Copyright . All rights reserved.

All rights reserved. ix .Course Overview TARGET AUDIENCE This course is intended for the following audiences: Developer IT Adminstrator IT Support User End User User Super Key Power User © Copyright .

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1 . All rights reserved.UNIT 1 SAP Overview Lesson 1 Identifying SAP Applications and Components 2 UNIT OBJECTIVES Identify SAP’s applications and components © Copyright .

SAP is the abbreviation for System.sap. If students are interested in details they can learn more by logging onto www. and suppliers. SAP ECC (the technical successor of R/3) and other components. The purpose of an ERP system is to facilitate the flow of information between all business functions inside the boundaries of the organization. partners. All rights reserved.sap. and human resources. including tangible assets. ERP also helps manage the connections to employees and outside stakeholders such as customers. Course participants should know SAP is a global company. Applications and Products in Data Processing. Clarify that SAP ERP is the product following R/3 and that SAP ERP is more then just R/3. you require basic knowledge of the following: Elements of an enterprise resource planning (ERP) system SAP applications and components Industry applications SAP solutions for small and midsize companies The lesson on the history of SAP has been removed from this course. and usually utilizing a common computing platform. you will be able to: Identify SAP’s applications and components Elements of an ERP System Most students are familiar with SAP’s products. Link to acronyms: http://wiki. you will be able to identify the basic applications and components offered by SAP. For this reason. materials.com/wiki/display/home/sap+acronyms LESSON OBJECTIVES After completing this lesson.com. and you must be able to identify and explain the basic functionality of an enterprise resource planning system. ERP systems consolidate all business operations into a uniform and 2 © Copyright . financial resources. .Unit 1 Lesson 1 Identifying SAP Applications and Components 2 LESSON OVERVIEW After completing this lesson. Business Example You are responsible for deciding which applications and components your company will implement. Enterprise Resource Planning (ERP) is an integrated computer-based system used to manage internal and external resources.sdn. All of the SAP product solutions use components from the SAP ERP. Built on a centralized database. SAP ERP combines SAP NetWeaver.

SAP R/3 has a wide palette of standard. changes and enhancements were integrated into the SAP system first as extensions. SAP Applications and Components It is important for students to be able to differentiate between an application and a component. This should be a short introduction into SAP NetWeaver. Suggestion: Start a drawing on the board of the “SAP Business Suite” and continue to add to the drawing as you speak to the following figures. SAP's own programming language.Lesson: Identifying SAP Applications and Components enterprise-wide system environment. integrated functions. Remember that what used to be called "Solution" in this section is now an "Application". For example. All rights reserved. data is automatically transferred to accounting. They are then broken down into “IT scenarios”. the functions have been extended. applications have been optimized. SAP R/3 has been through a number of release cycles. Changes and enhancements are now integrated as enhancement packages. The lesson on NetWeaver is no longer included in this course. Information of name changes and components: New name Abbreviation Old Name © Copyright . for processes in sales. Figure 1: From R/3 to ERP Since the release of SAP R/3 Enterprise. “IT practices” is the new term for SAP NetWeaver features and functions. 3 . For each new release. SAP ECC is the evolutionary successor of SAP R/3 and is one of the main components of the SAP ERP application. shipping. An ERP system can either reside on a centralized server or be distributed across modular hardware and software units that provide "services" and communicate on a local area network. SAP R/3 was developed using ABAP. This accelerates and simplifies the upgrade process and adaptation to industry sectors. and interfaces to other software components have been enhanced. or inventory management. The distributed design allows a business to assemble modules from different vendors without the need for the placement of multiple copies of complex and expensive computer systems in areas that will not use their full capacity. Explain the difference between an application and a component .

These solutions provide the functionality required to increase operational efficiency. 4 © Copyright . which are available as an entire suite or individually. The flexibility and comprehensive integration and adaptation options offered by SAP software results in high-performance. SAP NetWeaver is an integration and application platform that reduces total cost of ownership across the entire IT landscape and supports the evolution of the SAP Business Suite to a services-based architecture. All rights reserved. and boost innovation within an integrated system.Unit 1: SAP Overview SAP NetWeaver Application Server SAP NetWeaver Portal SAP NetWeaver Business Information Warehouse SAP NetWeaver Master Data Management SAP NetWeaver Mobile SAP NetWeaver Process Integration SAP NetWeaver AS SAP Web Application Server SAP Enterprise Portal SAP NetWeaver BW SAP NetWeaver MDM SAP Business Information Warehouse SAP Master Data Management SAP Mobile Infrastructure SAP NetWeaver PI SAP Exchange Infrastructure / SAP NetWeaver Exchange Infrastructure SAP products consist of individual applications. All the applications are based on the SAP NetWeaver technology platform. Definition of applications and components: SAP applications SAP applications describe processes and functions from a process point of view. elevate customer service. . and cross-industry e-business applications.Different Products SAP offers different solutions to help companies manage their growth. Each application has its own focus area and provides functions to map this area flexibly and comprehensively. industry-specific. SAP components Components represent SAP's technical view of software and are the technical building blocks for the system. SAP Solutions Figure 2: Different Sizes .

Lesson: Identifying SAP Applications and Components

SAP Business Suite Individually, SAP Business Suite applications help you manage your most critical business processes. Collectively, they form a tightly integrated business application suite that adds value to every facet of your organization and your external value chain (for example, customers, suppliers, and partners).

Figure 3: SAP Business Suite

Consider drawing an overview to SAP as illustrated in these figures.

Figure I-1: SAP Business Suite.ppt

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Unit 1: SAP Overview

Figure I-2: SAP ECC.ppt

ERP is the core application of the Business Suite. It uses ABAP as its operational language. ECC, or Enterprise Core Component, is the core of this area. SAP Business Suite is a comprehensive group of business applications that allows companies to manage their entire value chain and the most critical business processes in open, integrated applications. These business applications provide users with consistent results throughout the entire company network. SAP Business Suite consists of a number of different products that enable cross-company processes. Customers, employees, suppliers and partners are brought together to form one unit in a process. SAP Solution Details SAP solutions include the following: SAP ERP Human SAP ERP Human Capital Management (SAP ERP HCM) enables you Capital Management to utilize employees effectively toward the success of your company. This solution covers all aspects of human resources, from recruitment and training through payroll. SAP ERP Financials SAP ERP Operations The aim of SAP ERP Financials is to utilize a company's funds effectively and, therefore, increase profitability in the long term. SAP ERP Operations provides an extensive operations solution for automating and streamlining procurement and logistics execution, product development and manufacturing, and sales and service. SAP ERP Corporate Services introduces service solutions for travel management, environment, health and safety, and real estate management. It also addresses the development of efficient incentive programs.

SAP ERP Corporate Services

The core features and solutions of SAP ERP are enhanced and extended through the following applications in the SAP Business Suite: SAP Customer Relationship Management Customer relationship management (CRM) is a company-wide business strategy embracing all client-facing departments, and even beyond. With CRM, people, processes, and technology work together to increase profitability, and reduce operational costs.

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Lesson: Identifying SAP Applications and Components

SAP Product Lifecycle Management SAP Supply Chain Management

Product lifecycle management (PLM) integrates people, data, processes, and business systems and provides a product information backbone for companies and their extended enterprise. Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by customers. SCM spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. Supplier relationship management (SRM) involves working with your suppliers to maximize the potential value of those relationships.

SAP Supplier Relationship Management

SAP Solutions for Small Businesses and Medium Companies
Point out that Small to Medium Businesses have IT requirements that are not met by the SAP Business Suite. For an SAP Business Suite implementation, solutions need to be as flexible as possible and an implementation is usually time-consuming and cost-intensive. Small and medium businesses often do not have sufficient financial means for such projects and their requirements are usually less complicated. Small and medium businesses require integrated processes on one database and cost-efficient pre-configured systems with low operating costs. Qualified SAP Business All-in-One packages from SAP partners are pre-configured, microvertical industry solutions delivered by partners on a fixed-bid, fixed-scope, and short implementation cycle. Target prospects are $40-$500M in revenue. Qualified SAP Business All-in-One packages from SAP partners: - Combines SAP Business Suite and SAP Best Practices templates with industry-specific partner solutions and implementation services. - Delivers 45 micro-vertical industry solutions via 20+ partners. For customers who have limited budgets and vertical requirements that can be satisfied through an available SAP All-in-One solution. There is no lesson going into more details of these solutions for small and medium businesses. It is up to you, but should of course depend on your participants, how much you go into details here. The table should help you to position the different solutions (this table is taken from an overview brochure available on SAP.com). SAP Business One Summary of Solution Requirements A single solution to manage the entire business SAP Business ByDesign A complete, ondemand business solution that is affordable, predictable, and easy to adopt. SAP Business All-inOne A comprehensive, extensible, and customizable business solution with support for industry-specific requirements.

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Unit 1: SAP Overview

Challenges with Current Solutions

Outgrown your accounting-only systems. Relatively straightforward business processes. Lower transaction volumes.

Replace your point solutions, manual processes, and spreadsheets. Moderately complex business processes. Moderate transaction volumes.

Outgrown your point solutions or legacy systems. Deep, micro-vertical and industryspecific business processes. Demanding, highvolume product, manufacturing, and service operations. Multiple locations, multiple divisions, and all types of subsidiaries. IT capability with a preference for an on-premise solution. 100-2500 employees.

Nature of Operations

Typical Organizational Structure IT Preferences

Up to 5 locations and independent subsidiaries. Limited IT capability with preference for an on-premise system. Less than 100 employees.

Multiple locations, multiple divisions, and independent subsidiaries. Limited IT capability with a preference for an on-demand solution. 100-500 employees.

Typical Number of Employees

SAP Business All-in-One Solutions SAP Business All-in-One solutions allow you to choose from industry-specific solutions, qualified SAP partner solutions, or solutions created within the fast-start program. Each SAP Business All-in-One solution is a prepackaged, industry-specific version of the SAP Business Suite with built-in content, tools, and methodologies for a cost-effective, turnkey implementation. SAP Business All-in-One solution partners offer out-of-the-box flexibility, combined with the power of SAP's world-class business applications.

Figure 4: SAP Business All-in-One

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Lesson: Identifying SAP Applications and Components

SAP Business All-in-One Solutions Details SAP Business All-in-One solutions include the following:

Solution SAP ERP

Functionality Effectively manage financials, human resources, operations, and corporate services.

SAP Customer Relationship Effectively manage all aspects of your customer relationships, Management (CRM) from marketing, to sales, to service. SAP Business Analytics Gain insight and improve decision making with tools and reports for financial and operational reporting. Benefit from industry-specific configuration and business processes based on SAP's experience in industries worldwide.

SAP Best Practices

SAP NetWeaver technology Quickly and cost-effectively add on to your existing solution as platform your business grows and your needs change.

If your company has deeper needs in specific process areas, SAP's complete portfolio of business software can extend the functionality of your SAP Business All-in-One solution to address other critical facets of your business SAP Business ByDesign SAP Business ByDesign is an adaptable, on-demand business offering designed specifically for medium sized companies. It provides transparency and control over all your operations, so you can immediately identify and respond to issues and opportunities. SAP Business ByDesign is adaptable and allows you to meet new business requirements with minimal time, effort, and cost. With SAP Business ByDesign, SAP manages your software for you, so you can be confident about a successful deployment and predictable operations, with minimal cost of ownership.

Figure 5: SAP Business ByDesign

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customers. and logistics Supplier Relationship Sourcing Purchasing Executive Management Support Project Management Compliance Management Business performance management Management of projects Management of compliance SAP Business One SAP Business One is designed exclusively for small businesses. All rights reserved. warehouse. and operations. SAP Business One can adapt to your unique and fast-changing needs as your business grows. sales. Combined with additional industry-specific capabilities. small businesses can streamline operations.Unit 1: SAP Overview Business ByDesign Details Business ByDesign includes the following solutions: Solution Financials Functionality Financial and management accounting Cash flow management Customer Relationship Management Marketing Sales Service Human Capital Management Organizational management Human resources Employee self-service Supply Chain Management Supply chain setup management Supply chain planning and control Manufacturing. With SAP Business One. and accelerate profitable growth. . SAP Business One is a single. affordable business management solution that integrates the entire business across financials. obtain instant and complete information. 10 © Copyright .

Increased productivity and cost control The user interface of SAP Business One is simple and easy to understand and users will quickly learn how to work with the system. The application is based on open technologies and can be readily extended with special functions. Sound business decisions SAP Business One allows managers to quickly access strategic information from all enterprise areas. such as SAP Business Suite. Scalability When a company grows. 11 . Its familiar Microsoft Office environment allows occasional users to rapidly learn to use the software. It also facilitates the transition to a more comprehensive IT system. SAP Business One can be extended by the functions your company requires. © Copyright . All rights reserved. SAP Business One's flexible and efficient system technology can easily keep pace with the company's growth. Lower costs SAP Business One is cost effective and offers a wide range of functions for integrated data processing. processes usually become more complex and software requirements change. This will increase productivity and help reduce costs.Lesson: Identifying SAP Applications and Components Figure 6: SAP Business One SAP Business One Details SAP Business One provides the following advantages: Rapid implementation SAP Business One can be implemented within a few days and is easily maintained.

and compliance (GRC) delivers a set of applications to manage risk. brings together the world of making decisions and the world of executing them. including the SAP BusinessObjects portfolio. The power the full SAP portfolio. . risk.” Enterprise performance management (EPM) builds on the other areas. Execution can be monitored. All rights reserved." Bringing together the SAP BusinessObjects portfolio with SAP’s business process platform helps companies achieve closed-loop business performance optimization. ensure that internal and external rules are followed and enforced. and performance management. includes groups of technologies and applications. 12 © Copyright . Decisions can be executed efficiently and effectively through industry-specific business processes. Process changes required for optimization can be easily implemented by combining process components on the platform. which is used by a variety of applications and business users.Unit 1: SAP Overview SAP BusinessObjects Figure 7: SAP BusinessObjects The SAP BusinessObjects portfolio. capturing and sharing information in a standard form.” Governance. and control access to systems and information. “Turning data into decision-quality information you can trust. and business events responded to. “Making risk and compliance part of decisionmaking. risk. from a product perspective. SAP BusinessObjects Groups of technologies and applications include: SAP BusinessObjects enterprise information management solutions SAP BusinessObjects business intelligence solutions SAP BusinessObjects enterprise performance management solutions SAP BusinessObjects governance. and compliance solutions The primary focus of enterprise information management (EIM) is on delivering trusted information to the organization.” Business intelligence (BI) delivers integrated reporting capabilities to business users for decision making. “Using insight and informed decisions to drive strategy and alignment. strategy. “Turning information into insight for better decision making. in real time across the business network.

industry-specific business functions and processes. fulfillment. and supply chain operations. and maximize cash flow. quality management. warehousing. and partners. controlling core banking processes. you can increase efficiency and reduce costs. Many industries require solutions that are specially bundled and enriched with additional industry-specific functions and processes. SAP for Oil & Gas solutions provide comprehensive tools that enable you to leverage key data. 13 . which perform targeted. SAP for Travel & Logistics handles all order volumes and supports complex business processes in procurement.Lesson: Identifying SAP Applications and Components Industry Applications SAP also offers industry-specific applications. Figure 8: Industry Packages Industry Application Details Industry offerings for more then 20 industries are available and include the following industries: Automotive SAP for Automotive is designed to streamline and improve disjointed business practices. and value-added logistics. suppliers. on an open platform designed for growth. As a result. All rights reserved. manage assets effectively. SAP for Chemicals delivers capabilities for sales and operations planning. from staffing and inventory to financials and patient-centric processes. SAP fulfills this requirement through the solution portfolios for industries. enabling you to closely manage many-tiered networks of customers. recipe and batch management. SAP for Healthcare integrates your healthcare processes. and extending operations to the Internet. returns management. scalable infrastructure and provides a robust environment for incorporating new technologies. SAP for Mining enables you to meet the specific challenges of the mining industry by helping you manage your assets and operations and leverage global supply chain networks. Banking Chemicals Healthcare Transportation & Logistics Mining Oil & Gas © Copyright . SAP for Banking is based on a flexible.

flexible. and responsive egovernment by electronically connecting public administrations with citizens. must be focused on meeting and surpassing customer expectations. suppliers.Unit 1: SAP Overview Public Sector SAP for Public Sector creates fast. Retail SAP Applications and Components FACILITATED DISCUSSION Pose specific business scenarios and ask how the lesson information applies. businesses. SAP for Retail provides a comprehensive solution where every piece of your retail value chain. from forecasting and planning to allocation and replenishment. and reduces costs. This enhances communications. FACILITATED DISCUSSION Can an application share a component with another solution? LESSON SUMMARY You should now be able to: Identify SAP’s applications and components 14 © Copyright . and other organizations via the Internet. streamlines services. All rights reserved. .

List at least three cross-industry or industry applications. All SAP applications are role-based. X X True False © Copyright . 15 . Determine whether this statement is true or false.Unit 1 Learning Assessment 13 1. X X True False 2. All rights reserved. SAP is a solutions company. 3. Determine whether this statement is true or false.

Unit 1 Learning Assessment. integration. Determine whether this statement is true or false. Construction & Operations. SAP CRM. All rights reserved. SAP for Chemicals. and know-how are intangibles. SAP is a solutions company. Cross-industry applications: SAP Enterprise Portal. SAP for Oil & Gas. SAP SRM. Determine whether this statement is true or false. . X X True False Business experience. X X True False The SAP NetWeaver Portal lets you customize your interface so that you can perform tasks associated with your role. bundled together with the vast flexibility. SAP for High Tech. SAP for Banking. SAP for Consumer Products. List at least three cross-industry or industry applications. SAP for Telecommunications. SAP for Engineering. SAP SCM. SAP for Utilities. SAP for Higher Education & Research. 2. All SAP applications are role-based. SAP for Retail. SAP ERP HCM. which. SAP PLM. SAP for Media. SAP for Automotive. 16 © Copyright . SAP ERP Financials Industry packages: SAP for Aerospace & Defense. SAP for Mining. 3. SAP for Public Sector. SAP for Insurance. and customizing potential of SAP software. have resulted in more powerful e-business solutions within specific industries and across industry borders. strategy. SAP for Mill Products.Answers 14 1. SAP for Healthcare.

All rights reserved.UNIT 2 Navigation Lesson 1 Accessing The SAP System Exercise 1: Log On to the SAP System 18 21 Lesson 2 Personalizing the SAP Interface Exercise 2: Create Favorites Exercise 3: Personalize Your User Interface Exercise 4: Use Navigation Options 26 38 41 43 UNIT OBJECTIVES Log On to the SAP system Use the SAP interface Navigate in the SAP system Find help from the SAP Easy Access Screen © Copyright . 17 .

Business Example To access the SAP system. and is usually preconfigured and made available to users. When the user launches SAP Logon. we refer to the SAP GUI for the Windows environment. this lesson will be the first exposure to the SAP GUI. you will be able to: Log On to the SAP system Log On to the SAP System The SAP Graphical User Interface (SAP GUI) is the general front-end program used to access SAP systems. Figure 9: The SAP Logon Program 18 © Copyright . Several variants of the SAP GUI are available and are adapted for use in different environments. This list is derived from a file on the front-end computer. you must familiarize yourself with the logon process and related screens. SAP provides another program: SAP Logon.Unit 2 Lesson 1 Accessing The SAP System 16 LESSON OVERVIEW This lesson shows you how to log on to an SAP system using the SAP Logon. a window displays a list of available SAP systems. The actual logon procedure and how to add an entry in the SAP Logon is different in each country and training location. For many of the students. All rights reserved. In this lesson. you require the following knowledge: A good understanding of the logon process LESSON OBJECTIVES After completing this lesson. . To start the SAP GUI. The SAP GUI program connects the front-end computer with a specific SAP system. For this reason. You may want to complete the exercise with the students ensuring each student is able to successfully logon to the correct the server.

Lesson: Accessing The SAP System Establish that SAP is a client system. 4. The Logon Screen Figure 10: Logging On to an SAP System If there are system-wide messages. You will use your own password whenever you log on. 19 . Note: These procedures may differ somewhat at your company. After you have read the messages. 7. Enter <<your client>>. Enter <<your password>>. Before you log on for the first time. How to Log On to the SAP System How to access the SAP system. configuration. Choose Enter. Enter <<your user ID>> 5. The SAP Easy Access screen displays. Choose <<your training system>> in the SAP Logon window. 2. contact your system administrator. Choose Log on. and databases.or the client that was assigned to your class if you use the participant system. the System Messages dialog box appears. All rights reserved. During the process of logging on. 3. For more information. © Copyright . 1. Enter the language. 6. This is 800 if you use the instructor training system. choose Continue (or press Enter) to close the dialog box. your system administrator will give you an initial password. transactions. you enter a new password--one that you alone will know. Define the client within SAP as a separate entity with its own master data.

. All rights reserved. 20 © Copyright .Unit 2: Navigation Explain to the participants that they may be prompted to change their password.

21 .the connection to SAP systems. Create a logon entry and access the appropriate system with the client. based on the information provided by the instructor. Your instructor will explain the proper logon procedure.The details may be different. Caution: This exercise depends on your location. this is done in different ways. installations. 1.Unit 2 Exercise 1 Log On to the SAP System Business Example To perform your daily business transactions. Please explain this to the participants and guide them through this first part. In other countries. In Germany. and password provided by the instructor. Create an entry in the SAP GUI logon screen. for example. and if the training is at an SAP facility or on site. user ID.Depending on the GUI version and the office connection. depending on local settings. you must log on to the SAP system. the participants have a direct shortcut to the assigned training system in the Windows menu. © Copyright . Every SAP subsidiary and every SAP training center works differently. All rights reserved. Field Your SAP Training System Message Server SAP Router User Password Client Language New Password Entry Provided by your instructor Your instructor will tell you if this is required Your instructor will tell you if this is required Provided by your instructor Provided by your instructor Provided by your instructor Provided by your instructor Create a new password of your choice 2. the participants have to maintain an entry in the SAP logon. Use your logon entry to gain access to the SAP system with the information provided.

Caution: This exercise depends on your location. All rights reserved. Every SAP subsidiary and every SAP training center works differently.the connection to SAP systems. In other countries. and password provided by the instructor. 1. and if the training is at an SAP facility or on site. Field Your SAP Training System Message Server SAP Router User Password Client Language New Password Entry Provided by your instructor Your instructor will tell you if this is required Your instructor will tell you if this is required Provided by your instructor Provided by your instructor Provided by your instructor Provided by your instructor Create a new password of your choice a) Locate the SAP Logon program on your desktop. depending on local settings. Create a logon entry and access the appropriate system with the client. the participants have to maintain an entry in the SAP logon. for example. .The details may be different. Your instructor will explain the proper logon procedure.Depending on the GUI version and the office connection. this is done in different ways.Unit 2 Solution 1 Log On to the SAP System Business Example To perform your daily business transactions. based on the information provided by the instructor. installations. you must log on to the SAP system. 22 © Copyright . In Germany. user ID. the participants have a direct shortcut to the assigned training system in the Windows menu. Please explain this to the participants and guide them through this first part. Create an entry in the SAP GUI logon screen.

b) Choose Log on. select the system provided by the instructor. c) Enter <<Your SAP Training System>> in the Search for field. Note: You might be asked to change your password. skip to solution step j. Note: If desired. h) Enter your password again. f) Under Group / Server. c) Enter the Client: <<to be provided by the instructor>>. g) In the password change dialog box. enter your own new password in the New Password field. b) Choose New . If you are not asked. If so. i) Select Finish. If Public is not available. select Public. The new logon entry appears in the list of SAP systems. you can enter a different system name for this system. g) The system will display a list of defined server groups for your training system. If Public is not available.Note: There are a variety of ways to find the program and a variety of places it could reside on your desktop. in the Repeat Password field. i) Choose Enter . d) Enter the Password: <<to be provided by the instructor>>. to confirm the password change. 23 . Use your logon entry to gain access to the SAP system with the information provided. Select the Public group if it is available. 2. e) Select Next . These variables depend on how the GUI software was installed. e) Enter the Language: <<to be provided by the instructor>>. d) Select the system ID (SID) from the list presented. © Copyright . All rights reserved. f) Choose Enter . continue with the following steps. select Space. h) Select Next twice. a) From the SAP logon pad. select Space.

until you are returned to the SAP Easy Access screen. . 24 © Copyright . reading any system messages that are displayed. All rights reserved.j) Choose Enter as many times as needed.

Lesson: Accessing The SAP System LESSON SUMMARY You should now be able to: Log On to the SAP system © Copyright . 25 . All rights reserved.

you must be able to navigate the screens and utilize the various options available. the participants and the instructors have an assigned user menu (this is centrally created and assigned to SAP01-INS-XX and the template user SAP01-99). If you have participants who are interested in a specific application area . All rights reserved. you will be able to: Use the SAP interface Navigate in the SAP system Find help from the SAP Easy Access Screen Screen Structure Elements In this section.Unit 2 Lesson 2 Personalizing the SAP Interface 22 LESSON OVERVIEW This lesson shows you how to efficiently work in the SAP system by personalizing your screens and using different navigation options. This default can be changed to any desired start transaction using Extras -> Set start transaction. For this reason. Ensure that participants are comfortable with the overall layout and navigation before moving on. From Col.92 on. Business Example To efficiently use the SAP system. you require the following knowledge: A clear understanding of screen structure elements How to create a personal favorites list of transactions How to personalize screens How to navigate various screens How to find help LESSON OBJECTIVES After completing this lesson. Explain that the SAP Easy Access screen is the system default screen after logging on. The SAP Easy Access screen is the initial default screen in SAP systems. . you can prepare and use demonstrations that are more suitable for your audience. 26 © Copyright . you will familiarize the participants with the layout of the SAP Easy Access screen. The main focus of this lesson is to explain how to navigate within the system.

© Copyright . or in the application itself under System -> Status . 27 . for example. You can find the transaction code for an application either in the Overview menu on the SAP Easy Access screen. The graphic on the right side is made available centrally by your system administrator and cannot be customized by individual users.0 system for the main screen and a 5. The graphic could.Lesson: Personalizing the SAP Interface Figure 11: SAP Easy Access The left side of the screen contains a tree hierarchy of the available menus. Two system releases were used for this screen shot. in the status bar. be the company's logo. All rights reserved. An SAP screen can contain the following screen elements: Command field You can start applications directly by entering the transaction code in the command field. SAP Screen Structure Figure 12: Screen Structure Please note that the figure is a combination of screens and does not exist as you see it in the system. an 6.0 system for the small radio button part.

Other elements include input fields and buttons. If you mouse over a button. Other elements Role-Based User Menus Explain that role-based menus allow for limiting the wide range of functionality provided by SAP solutions to those required by the specific user according to the assigned role. reports. Only one radio button option may be selected. or Web-based applications to the user. the system displays a flag with the name or function of that button. for example. but also the authorizations they require to access the information. 28 © Copyright . Title bar Application toolbar Check boxes Radio buttons Tab Status bar The title bar displays the name of the function that you are currently using. Role-based user menu This is a collection of activities used in business scenarios. Point out that when a user is assigned a role.Unit 2: Navigation Menu bar The menu bar is the top line of any primary window in the SAP system. the transaction code of the transaction you are currently using. SAP offers two formats to display a menu of transactions. Menu formats include the following: SAP standard menu This is a complete list of all possible transactions and reports offered by the system. they are deactivated (greyed out). The menu displayed depends on the application you are using. or Web-based applications through their role-based menus. A tab page allows you to organize several screen areas to improve clarity and organize data. Standard toolbar The buttons in the standard toolbar are shown on every SAP screen. Users can access transactions. . If certain buttons are not available in an application. reports. such as warnings and errors. The status bar displays information on the current system status. SAP currently delivers over 1200 predefined roles. You can also change the display variant to show. The application toolbar shows the buttons available in the application you are currently using. they are assigned not only the menu. All rights reserved. Check boxes allow you to select several options from a group of fields.

© Copyright . you may be responsible for setting up role-based menus. and you can edit your favorites in the SAP Easy Access screen using the Favorites menu. since large roles could take a long time to transfer to the front end. The system administrator can tailor role-based menus to specific job requirements by adding or removing menu entries. 29 .Lesson: Personalizing the SAP Interface Figure 13: Role-Based User Menus Users are assigned the role menu and the authorizations associated with the role. All rights reserved. Favorites Examples of items that can be added to a favorites list include the following: Transactions Links to files Internet addresses Hint: Favorites can be organized into folders. which are then transferred to the front end. Authorizations control access to the specific activities required to perform the job function. keep roles as small as possible. Caution: As a system administrator. Therefore.

Adjust the color and behavior of the screens and fields. . Some of the personalization options are as follows: Change the layout of the SAP Easy Access screen. Status Bar The status bar provides general information on the SAP system and the transaction or task on which you are working. 2. 30 © Copyright . From the SAP Easy Access screen. All rights reserved. Display status messages in a dialog box instead of on the status bar. Track your input history to provide input help. 3. can be edited according to your preferences. System messages are displayed on the left side of the status bar. Control Your User Interface You have several personalization options available to help you set up your working environment. Only you can view your favorites list. Choose Favorites -> Add . which is initially empty. How to Create a Favorite Transaction How to create a favorites entry using the transaction for posting incoming payments in accounts receivable. Set preferences to determine how data is displayed. Choose Incoming Payments. and system information is displayed on the right side. 1. choose Accounting -> Financial Accounting -> Accounts Receivable -> Document Entry . 4.Unit 2: Navigation Figure 14: Favorites Menu The favorites list. Choose the transaction.

You will need to log out and log back on to the system again before your changes to the settings will take effect. Choose Defaults tab. This is especially helpful for people who may want to change their date. Choose System -> User profile -> Own data . choose Customizing of local layout. From the standard toolbar. and error. warning. How to Personalize Your User Interface Use this demonstration to show the participants several of the many personalization options available in the SAP system. 31 . under Options -> Visual Design. You also have the option to change the font size on your SAP GUI screen. 1. decimal or currency formats. Review the different settings the user can make from the Defaults tab. Explain the difference between the following types of system messages: informational. © Copyright . The following information can be displayed in the status bar: System Client User Program Transaction Response time To hide the information status fields.Lesson: Personalizing the SAP Interface Figure 15: Status Bar Discuss and demonstrate the location of the different types of information available on the status bar. such as how to customize the local layout and the user profile. All rights reserved. Provide a general description of the information that the user can maintain with for their user profile. choose the arrow to the left of the fields.

You will not lose any data in sessions that are already open. Warning messages include the following options: Continue with this logon and end any other logons of this user in the system. For example: Set the error. Your system administrator may limit the number of sessions users can create. information. Point out that there are other opportunities for further personalization using the other menu items. Multiple Sessions The SAP system tracks multiple logons. Too many open sessions can result in slower system performance. Take some time explaining the different options the user can set. Using multiple sessions allows you to open several windows at the same time on the same computer. closing the first session does not cause the other sessions to close. The primary reasons for tracking multiple logons are security and licensing. . Choose the Customizing of local layout button . and warning messages to display in a dialog box. save any data you want to keep. Figure 16: Multiple Sessions The user can create a new session at any time. Terminate this logon. This is helpful if you are in the middle of a transaction and need to verify information to complete the transaction. All rights reserved. In this demonstration. each independent of the others. If the same user logs on more than once. the system displays a warning message. You should only be logged on once per SAP system. Continue with this logon without ending any other logons in the system (this is tracked). 32 © Copyright . for each subsequent logon. You can create several sessions. Before you end a session. Choose Options . show participants the personalization available under Options . For example.Unit 2: Navigation Close the Maintain User Profile window. Explain that the cursor can be modified.

The easiest way of doing this is to use the functions System -> List -> Save -> Local file . The following options are available when navigating in the SAP system: Navigation in the SAP system includes the following: Enter transaction codes in the command field. At this point. Users do not need to create © Copyright . the menu bar and the command field (transaction codes). You may want to mention a simple method for administrators to create their own lists of transaction codes: select the entries required for the list from the table TSTCT and save them in Excel. Navigation Introduce the participants to the three basic options for navigating in the system. touch on them very briefly because each is covered in more detail as we progress through this lesson. further options appear. Menus are drop-down lists. All rights reserved. Explain navigation in SAP systems using the SAP standard menu. therefore. Choose from the role-based user menu. Transaction Codes Participants frequently ask about transaction code lists. Choose items from menus in the menu Choose items from the favorites list. 33 . The menu is organized according to the task you are performing in the SAP system. Figure 17: Navigation Options Menus allow you to find a specific transaction when you do not know the transaction code. Point out that transaction codes can be found by selecting System -> Status . when you choose a menu item.Lesson: Personalizing the SAP Interface Hint: The system does not prompt you to save your data when you end a session.

Choosing Extras Technical details (from the SAP Easy Access).Unit 2: Navigation transaction code lists in this way since they have their role-based menus and usually lack the authorizations to do so. The following entries are time-saving tips for using transaction codes: Entry in the Command Field /n /nXXXX /o /oXXXX /nend /nex /i Result Cancels the current transaction Initiates the specified transaction directly from another transaction Displays an overview of sessions Initiates the specified transaction in a new session Ends the logon session with a confirmation dialog box Ends the logon session without a confirmation dialog box Deletes your current session How to Use Transaction Codes How to use transaction codes and the command field. Every transaction or function in the system has a transaction code. Point out where to locate the transaction code. provided you know the transaction code for the required transaction or function. 34 © Copyright . 1. . In the detailed description of this demonstration. All rights reserved. Choose System -> Status . You can enter the transaction code in the command field to initiate the transaction or function. 2. and then choosing System -> Status . Choose Maintain. Navigate to the transaction from the SAP Easy Access screen and choose Human Resources -> Personnel Management -> Administration -> HR Master Data. which is PA30.Activating the display of the transaction in the SAP menu or user menu by choosing Extras Settings and then choosing Display technical names. You can find the transaction code by first navigating to a transaction.Activating the display of the transaction in the status bar. . only the first system status is explained. This is convenient. . 3. . Hint: Show the different possibilities of how to find a transaction code by: -Choosing System Status (when the transaction is already on the screen).

You can select settings for help (for example. which is available from any screen in the system. The help menu contains the following options: Application help SAP Library Glossary Release notes SAP Service Marketplace Create Support Message Settings Application help displays comprehensive help for the application currently opened on your screen. Figure 18: Getting Help © Copyright . 6. how you would like F1 and F4 help to be displayed). The Maintain HR Master Data screen is displayed. SAP Library contains online documentation. Enter PA30 in the Command field. Press Enter. Release notes describe functional changes that occur between SAP system releases. You can search for definitions of terms in the glossary. you can directly contact the responsible solution manager support unit from your SAP system. Return to the SAP Easy Access screen. Help Features Point out that the Help menu is available on the menu bar of every screen. 5.Lesson: Personalizing the SAP Interface 4. A user ID and a password are required to access the SAP Service Marketplace. The SAP system provides comprehensive online help. With support messages. All rights reserved. 35 .

or by selecting the F4 key. Access the Customer Master Display transaction. All rights reserved. You can access F4 help for a selected field by choosing the button immediately to the right of that field. and messages. functions. menus. Figure 20: Field Help: F4 How to Find Field-Level Help How to find the field-level help (F1 and F4). Figure 19: Field Help: F1 F4 Help F4 is used to find information on the possible values that can be entered in the field. . the parameter ID and the technical name of the field). F1 help also provides technical information on the relevant field (for example.Unit 2: Navigation Field Help F1 is used to find help on fields. 1. 36 © Copyright . From the SAP Easy Access screen. choose Accounting -> Financial Accounting -> Accounts Receivable -> Master Records -> Display .

© Copyright . 4. Enter Company code 1000 and Name Customer*. Place the cursor on the Customer field and select F1. and how to reduce the entries (by specifying more detailed search terms). Select the Customers (by company code) tab. Choose Technical info. Close the F1 help again. and select F4. how to sort the list. make sure that the cursor is placed on the Customer field.Lesson: Personalizing the SAP Interface 2. Choose Start search . Point out the technical information available for that particular field. 37 . Demonstrate the use of the search functionality. 3. All rights reserved.

This is transaction code XD03. files. Create Favorite Transactions Create a variety of favorite transactions that will appear in the Favorites menu on your SAP Easy Access screen. This is transaction code PA30. Create a favorite for the transaction to display a customer (centrally) in Sales and Distribution. Create a favorite for the transaction to post an incoming payment in accounts receivable.Unit 2 Exercise 2 Create Favorites Business Example You have specific transactions. To facilitate access. 2. . and Web sites that you use frequently. 1. All rights reserved. Create a favorite for the transaction to maintain master data in human resources. This is transaction code F-28. 38 © Copyright . 3. you must create entries in your Favorites folder.

c) Choose Favorites -> Add . You want to highlight the menu item. This is transaction code F-28. Create a favorite for the transaction to display a customer (centrally) in Sales and Distribution. You want to highlight the menu item. 2.Unit 2 Solution 2 Create Favorites Business Example You have specific transactions. not initiate the transaction. choose Accounting -> Financial Accounting -> Accounts Receivable -> Document Entry . you must create entries in your Favorites folder. not initiate the transaction. To facilitate access. Caution: Do not double-click Incoming Payment. and Web sites that you use frequently. a) From the SAP Easy Access screen. You can also choose Add to Favorites . Create Favorite Transactions Create a variety of favorite transactions that will appear in the Favorites menu on your SAP Easy Access screen. This menu path is at the top of your window. files. Hint: This menu path is at the top of your window. © Copyright . Create a favorite for the transaction to post an incoming payment in accounts receivable. b) Choose Complete . You can also choose Add to Favorites . choose Logistics -> Sales and Distribution -> Master Data -> Business Partners -> Customer -> Display . b) Choose Incoming Payments . This is transaction code XD03. 39 . 1. Caution: Do not double-click Complete. All rights reserved. c) Choose Favorites -> Add . a) From the SAP Easy Access screen.

c) Choose Favorites -> Add . Caution: Do not double-click Maintain. 40 © Copyright . b) Choose Maintain .3. a) From the SAP Easy Access screen. Create a favorite for the transaction to maintain master data in human resources. not initiate the transaction. You want to highlight the menu item. choose Human Resources -> Personnel Management -> Administration -> HR Master Data . All rights reserved. This is transaction code PA30. .

You would like system and error messages to appear in a dialog box instead of on the status bar. All rights reserved. 41 .Unit 2 Exercise 3 Personalize Your User Interface You are a new user of the SAP system and would like to personalize your user interface to facilitate navigation. Change the display of the date and currency format. © Copyright . For this reason. 1. you must make adjustments to the local layout of your screen. 2.

The Maintain User Profile screen opens in a new window. . You would like system and error messages to appear in a dialog box instead of on the status bar. c) Change the decimal notation and date to the format of your choice.Unit 2 Solution 3 Personalize Your User Interface You are a new user of the SAP system and would like to personalize your user interface to facilitate navigation. d) Choose Save . navigate to the main menu bar and choose System > User profile -> Own data . b) Choose the Defaults tab. All rights reserved. a) From the SAP Easy Access screen. g) Choose OK . 42 © Copyright . 2. 1. you must make adjustments to the local layout of your screen. . For this reason. a) From the SAP Easy Access screen. select: Show success messages in a dialog box Show warning messages in a dialog box Show error messages in a dialog box f) Choose Apply . navigate to the standard toolbar and choose Customize Local Layout b) Choose Options c) Choose Interaction Design d) Choose Notifications e) In the Messages area of the screen. Change the display of the date and currency format.

Hint: If you log out. 2. which provides a list of users who are logged on to the system. please log back on to the system. Do not return to the SAP Easy Access screen after viewing each transaction code. you navigate the folders in the SAP Easy Access screen to find transaction codes. © Copyright . To do this.Unit 2 Exercise 4 Use Navigation Options Execute Transaction Codes You are new to SAP and need to familiarize yourself with transaction codes. 3. 1. All rights reserved. Display a list of users who are logged on to the system. 1. For this reason. Execute the transaction codes in the table and record each activity in the space provided. 43 . Return to the SAP Easy Access screen and use the transaction code to initiate the transaction to display the user overview. Display the transaction code for this transaction using the System status menu. you execute a few transaction codes using the command field. Entry in the Command Field su3 sm04 /nsm04 /nend Result Navigate to Find Transaction codes You are new to SAP and would like to familiarize yourself with transaction codes using the folders in the SAP Easy Access screen.

enter SM04 in the command field and record the result. All rights reserved. enter /nsm04 and record the result. For this reason. Execute the transaction codes in the table and record each activity in the space provided. 1. e) From the screen displayed using transaction code /nsm04.Unit 2 Solution 4 Use Navigation Options Execute Transaction Codes You are new to SAP and need to familiarize yourself with transaction codes. 44 © Copyright . you execute a few transaction codes using the command field. c) From the screen displayed using transaction code su3. b) Record the name of the transaction in the result section of the table below. Do not return to the SAP Easy Access screen after viewing each transaction code. enter /nend and record the result. Hint: If you log out. Entry in the Command Field su3 sm04 /nsm04 /nend Result a) From the SAP Easy Access screen. A transaction can only be started directly from the SAP Easy Access screen. please log back on to the system. enter transaction code su3 in the command field and choose nter. . d) From the screen displayed using transaction code sm04 . Does not initiate a transaction. unless you use a prefix. Entry in the Command Field su3 sm04 Result Initiates the screen for maintaining your own user settings.

1. b) Choose System -> Status. 45 . © Copyright . a) Double-click User Overview. Display a list of users who are logged on to the system. To do this. to exit the screen and return to the SAP Easy Access menu. /nend Navigate to Find Transaction codes You are new to SAP and would like to familiarize yourself with transaction codes using the folders in the SAP Easy Access screen. Display the transaction code for this transaction using the System status menu. you navigate the folders in the SAP Easy Access screen to find transaction codes.Entry in the Command Field /nsm04 Result Initiates the user overview successfully. c) Locate the transaction code. You can now exit the system. / n first ends the active transaction and then initiates the specified transaction. choose Tools -> Administration -> Monitor -> System Monitoring -> User Overview . a) Close the System Status dialog box by choosing Cancel b) Exit out of the User List by choosing Back c) Enter sm04 in the command field. All rights reserved. Return to the SAP Easy Access screen and use the transaction code to initiate the transaction to display the user overview. a) From the SAP Easy Access screen. A logoff confirmation dialog box appears. which is SM04. 2. . 3. . d) Choose Enter e) Choose Exit . which provides a list of users who are logged on to the system.

All rights reserved. .Unit 2: Navigation LESSON SUMMARY You should now be able to: Use the SAP interface Navigate in the SAP system Find help from the SAP Easy Access Screen 46 © Copyright .

Which of the following are required to log on to the SAP system? Choose the correct answers. X X True False 3. All rights reserved. X X X X A System B Help C Information D Environment 4. Which of the following provides general information on the SAP system and transaction or task on which you are working? Choose the correct answer. X X X X X A Enter a specific client number B Enter your user ID C Enter your password D Customize your settings E Set your language preference 2. 47 . Determine whether this statement is true or false. What menus are standard on all SAP screens? Choose the correct answers.Unit 2 Learning Assessment 41 1. X X X X A Status bar B Menu path C Role bar D Application toolbar © Copyright . You can only have one SAP system session open at a time.

X X X X X A /nend B /nex C ?sm04 D /nsm04 E sm04 7. . You have navigated to a transaction you have never used before and would like to learn more about the transaction before completing it. All rights reserved. Which of the following forms of help would most efficiently provide the information you are looking for? Choose the correct answers. X X X X X A Web addresses B Transactions C Links to files D Language preferences E Attachments 6. List and describe three different types of online help that are available in the SAP system. X X X X X X A F1 B F4 C Application help D SAP Library E Glossary F Release notes 8. In the SAP Easy Access menu. Choose the correct answers. Select all of the following entries that are valid in the command field. you can create a favorites list containing: Choose the correct answers.Unit 2: Learning Assessment 5. try them on the system before you select the correct answers. 48 © Copyright . If you are uncertain.

This means that it will link you directly to the help for whatever application area of the system you are currently working in. Application help. X X True False © Copyright . X X X X X A F1 B F4 C System help D F11 E Application help 10. is context-sensitive. To do this. You would like to preset a value for a field that you have to enter frequently. All rights reserved. Determine whether this statement is true or false. which is available through the Help menu. you need the parameter ID. Which help function would you use to locate the parameter ID when you are on the field? Choose the correct answers. 49 .Unit 2: Learning Assessment 9.

2. X X True False That is correct. Which of the following are required to log on to the SAP system? Choose the correct answers. The System menu contains functions that affect the system as a whole. You do not customize your settings or set the language preference until you are already logged on to the SAP system. 50 © Copyright . . All rights reserved.Unit 2 Learning Assessment. What menus are standard on all SAP screens? Choose the correct answers. You can only have one SAP system session open at a time. The Help menu provides various forms of online help. and Log off.Answers 44 1. such as Create session. Determine whether this statement is true or false. Each session is independent of the others. You can create up to 16 sessions. User profile. X X X X X A Enter a specific client number B Enter your user ID C Enter your password D Customize your settings E Set your language preference That is correct. 3. X X X X A System B Help C Information D Environment That is correct.

Answers 4. Choose the correct answers. 6. Select all of the following entries that are valid in the command field. © Copyright .you need to enter /n in front of the transaction code for the transaction code to work. transaction codes. X X X X A Status bar B Menu path C Role bar D Application toolbar That is correct. If you are in another screen. Favorites can consist of Web links. 51 . you can create a favorites list containing: Choose the correct answers. ?sm04 is not a valid entry. user. If you are uncertain. /nend and /nex are two different logoff options. All rights reserved. X X X X X A /nend B /nex C ?sm04 D /nsm04 E sm04 You can enter any valid transaction code directly on the SAP Easy Access screen.Unit 2: Learning Assessment. standard and customer transaction codes. The status bar contains information on system messages. try them on the system before you select the correct answers. as well as system information such as client. X X X X X A Web addresses B Transactions C Links to files D Language preferences E Attachments That is correct. Which of the following provides general information on the SAP system and transaction or task on which you are working? Choose the correct answer. In the SAP Easy Access menu. 5. and response time. and links to other files such as Microsoft Word documents or PowerPoint files.

you need the parameter ID. . Which of the following forms of help would most efficiently provide the information you are looking for? Choose the correct answers. You would like to preset a value for a field that you have to enter frequently. 9. All rights reserved. and also provides technical information for the field. List and describe three different types of online help that are available in the SAP system. 8. the most efficient method is the application help because it is context-sensitive. You have navigated to a transaction you have never used before and would like to learn more about the transaction before completing it. X X X X X X A F1 B F4 C Application help D SAP Library E Glossary F Release notes Although you could locate the information in the SAP Library. 52 © Copyright . Here you will find the parameter ID for the field in question.Here you will find comprehensive information about the application. Which help function would you use to locate the parameter ID when you are on the field? Choose the correct answers. X X X X X A F1 B F4 C System help D F11 E Application help F1 provides help on the purpose of a specific field.Unit 2: Learning Assessment.Answers 7. To do this.

This means that it will link you directly to the help for whatever application area of the system you are currently working in. All rights reserved.Answers 10. which is available through the Help menu. Application help. 53 . Determine whether this statement is true or false.Unit 2: Learning Assessment. X X True False © Copyright . is context-sensitive.

All rights reserved.Answers 54 © Copyright .Unit 2: Learning Assessment. .

All rights reserved.UNIT 3 System Wide Concepts Lesson 1 Identifying Elements of SAP's Organizational Structure Exercise 1: Display a Customer Master Record 56 62 UNIT OBJECTIVES Identify the elements of SAP's system-wide concepts © Copyright . 55 .

For this reason you require the following knowledge: A good understanding of how organizational elements are used to depict an organizational structure A good understanding of how master data is set up and made available to users A basic understanding of transactions that execute business processes LESSON OBJECTIVES After completing this lesson. The exercises re-enforce the ideas of master data and organizational elements.Unit 3 Lesson 1 50 Identifying Elements of SAP's Organizational Structure LESSON OVERVIEW This lesson explains the system-wide concepts on which the SAP system is based. Business Example You are part of the implementation team and must be able to define and explain the systemwide concepts on which your organizational structure and master data will be based. you will be able to: Identify the elements of SAP's system-wide concepts Organizational Elements Explain that the focus of this lesson is to develop an understanding of the system-wide concepts of the SAP System. All rights reserved. Emphasize that these are common threads across all SAP applications. These concepts. but there the concepts often look different in the details. The first step is to analyze the structures and procedures in your company. For example in SAP SCM some of the organizational units play a different role (they are more on the same level as customers and suppliers for planning purposes) and sometimes terms change (like from material to products). logistics. organizational elements. Other SAP Business Suite components are also based on these principles. Organizational units are provided for accounting. and transactions. and then assign them to the SAP structures. master data. Organizational elements include the following: 56 © Copyright . and human capital management functions. are the basic elements designed and utilized to represent a company’s enterprise structure and business processes within the SAP System. Students should understand that master data and organizational element ideas extend to all areas of the ERP system One of the first steps in implementing SAP applications is to define the specific organizational structures of your company in the SAP system. .

Plant: Storage location: Sales organization: Distribution channel: Organizational unit: Organizational units describe the various business units that exist in a company. The storage location differentiates material stock within one plant according to the storage location. All rights reserved.Lesson: Identifying Elements of SAP's Organizational Structure Client: Company code: The client is the highest-level element of all organizational elements. distribute product. multiple applications (plant). IDES operates worldwide and has a number of subsidiaries. Explain we are showing a simple structure and that there are other organizational elements. The sample of IDES is available for customers as well. You can find information about IDES in the SAP Corporate Portal under "/go/IDES". The company code is a legal. It controls the terms of sale to the customer. Position: Positions are the individual employee assignments within your company. This section is important to provide participants with an overview of IDES. © Copyright . Distribution channels are used to define how different products reach consumers. IDES is a demo system developed and used by SAP. 57 . the local currency. Highlight this by using some of the examples noted on the figure. IDES AG operates on a global level with global business partners. The participants need to be made aware that the different solutions overlap. for example. Emphasize that organizational elements are used to represent a company’s enterprise structure within SAP either for legal and/or business-related purposes. our demo company. Organizational units are often loosely defined as functional or regional departments. The plant is the central organizational unit of production. wholesale. The figure shows typical SAP enterprise terminology for organizational elements. Point out that organizational elements may be used by all applications (client).. or provide a service. and the tax reporting requirements. the fiscal calendar. The company code represents the tax law (national) view of the company. independent accounting unit representing the central organizational element of financial accounting. The sales organization is the central organizational element in sales order management. It represents the enterprise/headquarters group. IDES is an international company that is dependent upon collaborations with external business partners. A plant can manufacture product. or a single application (sales organization).

purchasing. They change when additional Business Suite applications are added. plant. The segmented structure of master records makes it possible to flexibly depict the various organizational structures of an operation. invoice verification. When the corresponding data (such as information on customers or materials) is integrated in one single database object.Unit 3: System Wide Concepts Figure 21: Organizational Structure: Terminology Master Data Concepts Since this is the only unit where master data will be discussed take your time explaining the concept. Point out that the information in the customer master is organized into three views with each located at a different organizational level: General Data (Client). master data is created centrally and is available to all applications and all authorized users. and Sales Data (Sales Area). We do not use Business Partners in this unit nor in this course. This is of course still the “old” SD customer master. . All rights reserved. finance. the participants will have an opportunity to display several types of master data. materials planning. and free of redundancy. billing terms and payment terms. Storing master data centrally means data records are always consistent. including sales. In this lesson. and so on). In SAP. for example ship-to information. and human resources. Be aware that the concepts here are ERP focused. delivery requirements. Master data is organized into views that are assigned to organizational elements (for example. up to date. data redundancy is no longer an issue and data integrity is enhanced. Financial Accounting Data (Company Code). organizational unit. Customer Master Explain to participants that the customer master contains key information that defines the business relationship between a company and its customer. inventory management. All areas use the same stored data. 58 © Copyright .

shipping. The figure highlights how the data in the material master is grouped into views that are organized by business function. This data reflects company-specific agreements with the customer. The required steps are detailed in the Display a Customer Master exercise. The figure also shows the type of information maintained in the material master. billing. Note: the majority of the views in a material master are at plant level. Material Master This figure introduces a second important type of master data: material master.Lesson: Identifying Elements of SAP's Organizational Structure A customer master record contains key information that defines the business relationship between a company and the customer. 4. 2. choose Logistics -> Sales and Distribution -> Master Data -> Business partners -> Customer -> Display -> XD03 Complete . The structure of customer master records includes the following information: General data: Data for company codes: Data for sales: This data is relevant to every company code and every sales organization in a company. Highlight the different views and content of the master data and the sales and finance integration. © Copyright . Sales organization data provides information on customers to support the execution of business processes such as entering sales orders. and processing payments. Figure 22: Master Data: Customer Master How to Display a Customer Master Record 1. such as payments. Company code data controls the posting procedure and subsequent processing. 3. Display the details of the customer master record of customer RohrerXX for company code 1000 and sales area 1000/10/00. From the SAP Easy Access screen. The layout of customer master records may also include special requirements. All rights reserved. This data has different characteristics for a company’s sales organizations and channels. Complete a brief review of the structure of the customer master record. 59 .

and calculated. master data is copied during transaction processing. When performing each transaction. An example transaction is a create sales quote and the resulting document is a sales quote. manufactured. The designation of the plant and storage location determines product sourcing. Once the material master numbers are entered for the items being ordered. For example. The material master defines. the relevant material data will be copied to the sales order. by specifying the sales organization. accounted. applicable organizational elements must be entered. the user must enter the customer master number. The information in the material master is grouped into views that are organized by business function.Unit 3: System Wide Concepts The material master contains all of the key information a company needs to manage a material within its organization. the appropriate sales group is given credit for the sales activity. . Emphasize how organizational and master data are integrated during transaction processing. Explain that whenever possible. among other things. purchased. 60 © Copyright . Figure 23: Master Data: Material Master Transactions Review the terminology for transactions(executing business processes) and documents (data record of a specific transaction). Transactions are application programs that execute business processes in the SAP system. inventoried. The customer master number is copied into all of the relevant customer information areas. how a product is sold. thus avoiding reentry of data. when executing the transaction create sales order. Whenever possible. master data is copied during transaction processing thus avoiding re-entry of data. All rights reserved. For example.

predefined information from the master data and organizational elements. All rights reserved. 61 . a document is created.Lesson: Identifying Elements of SAP's Organizational Structure Figure 24: Transactions Whenever a transaction is executed in the system. This document is a data record of the transaction and contains all of the relevant. © Copyright .

Field Customer Data Rohrer## (Rohrer AG Gr. Display a Customer Master Record Navigate to a customer master record and take note of information related to the organizational areas of general data. For this reason. Hint: Remember.Unit 3 Exercise 1 Display a Customer Master Record Business Example Your are a customer service administrator and are responsible for the maintenance of customer information. The exercises within the System-wide concepts unit use the Procurement area as an example to re-enforce the ideas of master data and organizational elements. Locate and record the following general data. display the customer master record. Remind students that master data and organizational element ideas extend to all areas of the ERP system 1. Using the information provided in the table. . and company code. sales. Field Street/House number City Data 62 © Copyright . All rights reserved.##) Company Code 1000 (IDES AG) Sales Organization 1000 (Germany Frankfurt) Distribution Channel 10 (Final Customer Sales) Division 00 (Cross-division) 2. ## refers to the group number assigned by your instructor. you must access customer master records and ensure their accuracy.

63 .account Data Hint: The Reconciliation Account in the general ledger is the account that is updated parallel to the subledger account for normal postings (for example. Hint: Choose the Sales Area Data icon from the application toolbar. Field Shipping conditions Terms of payment Data © Copyright . invoice or payment).Field Search Term 3. Data Hint: Choose the Company Code Data icon from the application toolbar. All rights reserved. Field Recon. 4. Locate the following company code data. Locate the following sales area data.

The exercises within the System-wide concepts unit use the Procurement area as an example to re-enforce the ideas of master data and organizational elements.Unit 3 Solution 1 Display a Customer Master Record Business Example Your are a customer service administrator and are responsible for the maintenance of customer information. Hint: Remember. c) Enter Customer: Rohrer##. All rights reserved.##) Company Code 1000 (IDES AG) Sales Organization 1000 (Germany Frankfurt) Distribution Channel 10 (Final Customer Sales) Division 00 (Cross-division) a) From the SAP Easy Access screen. b) Double-click Complete . For this reason. Using the information provided in the table. and company code. display the customer master record. ## refers to the group number assigned by your instructor. 64 © Copyright . . Remind students that master data and organizational element ideas extend to all areas of the ERP system 1. you must access customer master records and ensure their accuracy. choose Logistics -> Sales and Distribution -> Master Data -> Business Partners -> Customer -> Display . Field Customer Data Rohrer## (Rohrer AG Gr. Display a Customer Master Record Navigate to a customer master record and take note of information related to the organizational areas of general data. sales.

Field Recon. a) Choose the Company Code Data icon. e) Enter Sales Organization: 1000. Account in the table provided above: 140000. c) Record the City in the table provided above: Berlin. Field Street/House number City Search Term a) Choose the Address tab. 4. f) Enter Distribution Channel: 10. All rights reserved. Locate the following sales area data. invoice or payment). Hint: Choose the Sales Area Data icon from the application toolbar. Locate the following company code data. 3. c) Record the Recon. b) Choose the Account Management tab. b) Record the Street name in the table provided above: Waldstrasse 86–90. Locate and record the following general data. g) Enter Division: 00. Data Hint: Choose the Company Code Data icon from the application toolbar. 65 . h) Choose Enter . © Copyright . d) Record the Search term in the table provided above: SAP01.account Data Hint: The Reconciliation Account in the general ledger is the account that is updated parallel to the subledger account for normal postings (for example.d) Enter Company Code: 1000. 2.

Data c) Record the Shipping conditions in the table provided above: 10 (immediately). b) Choose the Shipping tab. f) Choose Exit . d) Choose the Billing Document tab.Field Shipping conditions Terms of payment a) Choose the Sales Area Data icon. e) Record the Terms of payment in the table provided above: ZB01. All rights reserved. 66 © Copyright . .

All rights reserved. 67 .Lesson: Identifying Elements of SAP's Organizational Structure LESSON SUMMARY You should now be able to: Identify the elements of SAP's system-wide concepts © Copyright .

.Unit 3: System Wide Concepts 68 © Copyright . All rights reserved.

X X X X A Plant and customer B Material and customer C Material and storage location D None of the above © Copyright . Determine whether this statement is true or false.Unit 3 Learning Assessment 61 1. B Master data decreases data redundancy. Which of the following are true statements about master data? Choose the correct answers. X X X X X A Company code B Client C Plant D All of the above E None of the above 3. Name the two types of master data discussed in this lesson. All rights reserved. X X True False 2. Organizational elements define a company's enterprise structure within the SAP system for legal or business-related purposes. X A Master data is created centrally and is available to all applications and all authorized users. Which of the following are examples of organizational elements? Choose the correct answers. 69 . C Master data is organized into views that are assigned to organizational elements. X X 4. Choose the correct answers.

Transactions are application programs that execute business processes in the SAP system.Unit 3: Learning Assessment 5. D None of the above X X X 6. X X True False 7. Determine whether this statement is true or false. What is created in the system each time a transaction is executed? Choose the correct answers. B Customer master data contains material-specific parameters that support execution of business processes. Which of the following is a true statement about customer master data? Choose the correct answers. All rights reserved. . C Customer master data must be created for each company that plans to sell to that customer. X X X X A Report B Log C Document D Inventory 70 © Copyright . X A Customer master data contains key information that defines the business relationship between a company and its customer.

Determine whether this statement is true or false. Which of the following are examples of organizational elements? Choose the correct answers. 2. storage locations.Unit 3 Learning Assessment.Answers 63 1. plants. and profit centers. sales organization is assigned to sales order management) or to several applications(for example. Organizational elements are the mechanism for defining a company’s enterprise structure within the SAP system for legal and business-related purposes. © Copyright . X X X X X A Company code B Client C Plant D All of the above E None of the above Organizational elements include legal company entities. sales offices. All rights reserved. plant to procurement and production planning). Organizational elements define a company's enterprise structure within the SAP system for legal or business-related purposes. X X True False A company’s enterprise structure is mapped to the SAP applications using organizational elements. and may be assigned to a single application (for example. 71 .

B Customer master data contains material-specific parameters that support execution of business processes. X A Customer master data contains key information that defines the business relationship between a company and its customer. materials planning. A material master contains all of the key information a company needs to manage a material within its organization. All areas can use the stored data. purchasing. C Master data is organized into views that are assigned to organizational elements. Which of the following is a true statement about customer master data? Choose the correct answers. 72 © Copyright . inventory management. the problem of data redundancy is no longer an issue and data integrity is enhanced. All rights reserved. These customer-specific parameters support execution of business processes. D None of the above X X X The customer master contains key information that defines the business relationship between a company and its customer. invoice verification. . Choose the correct answers. C Customer master data must be created for each company that plans to sell to that customer. and so on.Answers 3.Unit 3: Learning Assessment. Name the two types of master data discussed in this lesson. 4. including sales. X X X X A Plant and customer B Material and customer C Material and storage location D None of the above A customer master contains key information that defines the business relationship between a company and its customer. 5. X X When all of the corresponding data (such as customer and material) is integrated into one single database object. B Master data decreases data redundancy. X A Master data is created centrally and is available to all applications and all authorized users. Which of the following are true statements about master data? Choose the correct answers.

X X X X A Report B Log C Document D Inventory Whenever a transaction is executed in the system.Unit 3: Learning Assessment. a document is created. Transactions are application programs that execute business processes in the SAP system. Whenever possible. 73 . Determine whether this statement is true or false. What is created in the system each time a transaction is executed? Choose the correct answers. All rights reserved. This document provides a data record of the transaction and contains all of the relevant predefined information from the master data and organizational elements. 7. master data is copied during transaction processing. © Copyright . thus avoiding re-entry of data. X X True False Transactions are application programs that execute business processes in the SAP system.Answers 6.

All rights reserved.Answers 74 © Copyright . .Unit 3: Learning Assessment.

75 .UNIT 4 Logistics Lesson 1 Ordering Material Exercise 1: Create a Purchase Order for Materials Exercise 2: Create a Goods Receipt Exercise 3: Process a Vendor Invoice 77 86 89 94 Lesson 2 Using Supplier Relationship Management 100 Lesson 3 Creating a Production Plan Exercise 4: Create a Planned Order 105 110 Lesson 4 Processing Production Orders Exercise 5: Create and Release a Production Order Exercise 6: Confirm a Production Order and Goods Receipt 115 121 125 Lesson 5 Using Supply Chain Management 130 Lesson 6 Managing Sales Orders Exercise 7: Create a Sales Order 136 140 Lesson 7 Creating Delivery Process Documents Exercise 8: Create a Delivery and Post a Goods Issue 144 148 Lesson 8 Creating Billing Documents Exercise 9: Create a Sales Order Billing Document 154 158 Lesson 9 © Copyright . All rights reserved.

.Unit 4: Logistics Using Customer Relationship Management 161 Lesson 10 Using Product Lifecycle Management 168 UNIT OBJECTIVES Create a purchase order Create a goods receipt Verify a vendor invoice Outline Supplier Relationship Management processes Create a planned order Create and release a production order Confirm a production order and goods receipt Utilize SAP Supply Chain Management to manage supply and demand Create a sales order Create a delivery and post a goods issue Create a sales order billing document Use SAP Customer Relationship Management Outline the tasks associated with processes supporting product lifecycle management 76 © Copyright . All rights reserved.

and reporting on all procurement activities. and logistics invoice verification processes in SAP ERP. you will be able to: Create a purchase order Create a goods receipt Verify a vendor invoice Procurement Process Procurement in SAP ERP covers traditional processes such as requisitioning. Determination of requirements: Material requirements are identified either in the user departments or via materials planning and control. and vendor evaluation. you are responsible for ordering material. bid invitations. goods receipt. and invoice verification. All rights reserved. 77 . including purchase orders. confirm the receipt of the ordered material. Procurement in SAP ERP improves procurement processes by facilitating plan-driven and ad hoc purchasing. you require the following knowledge: A good understanding of purchase order processes A good understanding of the goods receipt process A good understanding of Logistics Invoice Verification LESSON OBJECTIVES After completing this lesson. or they can be generated automatically by the materials planning and control system. In addition to providing supplier relationship management tools. purchase order management. repair. SAP ERP enables supplier selection and qualification. ERP procurement also covers catalog-based selfservice requisitioning for maintenance. Material requirements can cover both material requirements planning (MRP) and the demand-based approach to inventory control. You can enter purchase requisitions yourself. This lesson shows you how the procurement processes are executed within SAP. Important aspects of inventory control include © Copyright . For this reason. Business Example As a purchasing agent. and verify the vendor invoice prior to payment. complete inventory management. You must be able to create purchase orders. contract negotiations. and operating (MRO) materials and services.Unit 4 Lesson 1 Ordering Material 69 LESSON OVERVIEW This lesson reviews procurement.

This speeds the process of auditing and clearing invoices for payment. As with purchase requisitions. allowing you to compare a number of different quotations. . Rejection letters can be sent automatically. A quote can result in a frm order. Purchase order creation The purchase order adopts information from the requisition and the quotation to help you create a purchase order. in Production. which can be sent to vendors electronically. and forecasting on the basis of past usage. The accounts payable clerk is notified of quantity and price variances because the system has access to purchase order and goods receipt data. buyers can limit over-deliveries and underdeliveries of ordered goods. The system also provides you with an up-to-date status of all purchase requisitions. and purchase orders.Unit 4: Logistics regular checking of stock levels of materials defined by master records. if necessary. Vendor scheduling agreements and contracts are also supported. Vendor selection and comparison of quotations The system is capable of simulating pricing scenarios. Goods receiving and inventory management Goods receiving personnel can confirm the receipt of goods by entering the purchase order number. you can generate purchase orders yourself or have the system generate them automatically. MRP is Material Requirements Planning. All rights reserved. use of the orderpoint method. MRP is Manufacturing Resource Planning 78 © Copyright . Purchase order follow-up The system checks the reminder periods you specified and. This speeds the process of creating requests for quotation (RFQs). if desired. Note: In Procurement. Invoice verification The system supports the invoice checking and matching. By specifying permissible tolerances. Source determination SAP ERP helps you identify potential sources of supply based on past orders and existing longer-term purchase agreements. quotations. automatically prints reminders or expediters at the predefined intervals.

© Copyright . respectively. Goods receipt: Confirm goods received 7.Lesson: Ordering Material Basic Procurement Cycle Figure 25: Procurement The basic procurement (purchase-to-pay) cycle for a service or material consists of the following phases: 1. Supplier selection: Compare quotations 4. All rights reserved. quotation. Demand determination: Determine material requirements 2. In addition. purchase order adopts information from the requisition and/or the quotation 5. Source determination: Identify sources of supply 3. system provides up-to-date status of all purchase requisitions. Explain that a purchase order is a formal request to a vendor to supply certain goods or services under the stated conditions. Order monitoring: Track orders. or another purchase order. a request for quotation. and purchase orders 6.You can create purchase orders with or without reference to a purchase requisition. The advantage is that all known order information is automatically copied into the purchase order document. Invoice verification: Check and match invoice for processing 8. Payment processing: Process payment to the supplier Purchase Orders This section provides an overview of how purchase order processing is supported by SAP ERP. quotations. or other Purchase order. Purchase orders can be created with reference to a purchase requisition. This minimizes data entry and maximizes data accuracy / consistency. Purchase order creation: Create purchase orders. such as terms of payment and material description. you can emphasize the integration of master data in the processing of purchase orders. Explain that key data is copied from the vendor master and material master. A purchase order is a formal request to a vendor to supply certain goods or services under stated conditions. 79 .

choose Logistics -> Materials Management -> Purchasing -> Purchase Order -> Create -> ME21N Vendor/Supplying Plant Known .Unit 4: Logistics When you enter the purchase order data. Using the data specified in the table. 1. If a purchasing source already exists in the system.XX) Company code 1000 IDES AG Material PO Quantity R-T1XX 10 80 © Copyright . The associated freight costs in the purchase order are taken into account. create a purchase order for a stock material. How to Create a Purchase Order for Materials How to create a purchase order for stock materials in the SAP system. the system suggests default values such as ordering address. the system copies a price proposal to the new purchase order.XX) Purchasing organization 1000 (IDES Deutschland) Purchasing group BXX (SAP01 Gr. Figure 26: Purchase Order You can either send the purchase order to a vendor or carry out a stock transport order in another plant belonging to your company or group. . All rights reserved. and freight from the vendor master record. Field Order type Data Standard PO (NB) Vendor BaltusXX (Baltus AG Gr. 2. From the SAP Easy Access screen. terms of payment.

Some examples of data elements are: Vendor master: Terms of payment and communications data Material master: Base unit of measure. © Copyright . The purchasing department can send a reminder if a delivery is late. This makes it easier to enter the goods receipt and check overdeliveries and underdeliveries when goods arrive. 81 . Complete a brief review of the structure and format of the purchase order (that is. the system creates at least one accounting document that records the effects of the goods movement on the value of the stock. All rights reserved. line item detail). Emphasize the master data integration by highlighting specific data elements copied from master data records.Lesson: Ordering Material Field Plant Data 1000 (Hamburg) Storage Location Purchase Order Number 0001 The required steps are detailed in the Create a Purchase Order for a Stock Material exercise. the total goods received are checked against what was ordered. and material group Goods Receipt The advantages of posting a goods receipt with reference to a purchase order include the following: At the goods receiving point. the system creates a material document. 3. Data from the purchase order is copied into your document when you enter the goods receipt (for example. When you post a goods receipt to the warehouse.formatand header vs. If the transaction is relevant for material valuation. material description. items and quantities). The purchase order history is automatically updated as a result of the deliveries. This document contains information such as the material and quantity delivered. and the storage location for materials placed into stock in the plant.

Using the data specified below. All rights reserved. 1. 3. enter a goods receipt with reference to a purchase order. Note that the actual payment to the vendor is handled by the accounting department using appropriate information that is passed from the system. . 2. line item detail). Field Purchase order Data If using group 00. header vs. From the SAP Easy Access screen. Complete a brief review of the structure and format of the goods receipt transaction (for example. Logistics Invoice Verification creates a link between procurement and accounting. Vendor Invoice Verification Explain that the procurement process concludes with the logistics invoice verification process. The procurement process is concluded by the Logistics Invoice Verification process. during which invoices and credit memos are checked for accuracy and entered into the system.Unit 4: Logistics Figure 27: Goods Receipt How to Create a Goods Receipt How to post a goods receipt to stock with reference to a purchase order in the SAP system. during which invoices and credit memos are entered and the contents and prices checked for accuracy. Payment and evaluation of invoices are part of the accounting process. use PO number 45000018000 (refer to table in exercise for additional numbers) Material Document Number The required steps are detailed in the Enter a Goods Receipt Referencing a Purchase Order exercise. choose Logistics -> Materials Management -> Inventory Management -> Goods Movement -> Goods Receipt -> For Purchase Order -> MIGO PO Number known. 82 © Copyright .

material.Lesson: Ordering Material When you enter an invoice with reference to a purchase order. enter an invoice. How to Process a Vendor Invoice How to process a vendor by posting the invoice for the material you received. 2. a warning is displayed and. From the SAP Easy Access screen. Field Invoice date Reference Amount Tax Amount Purchase Order Data <current date> 234## (## = your group number) 56. The system updates the purchase order history. vendor. 83 .21 5. enter PO 45000018031 (created by the CATT). refer to the table in the exercise. Alternatively. depending on the system configuration. the system blocks the invoice for payment. and financial accounting initiates payment for the open invoice items. © Copyright . Figure 28: Logistics Invoice Verification If there are discrepancies between the purchase order or goods receipt and the invoice. All rights reserved. Invoice posting completes the Logistics Invoice Verification process. or terms of payment) is displayed on your screen. Using the data specified below. choose Logistics -> Materials Management -> Logistics Invoice Verification -> Document Entry -> MIRO Enter Invoice . data (for example.11 If using group number 00. quantity still to be invoiced. 1.

you can display a document before printing it. This section deals with messages which are printed or faxed or sent by any other means. Each time you create an request for quotation (RFQ). messages are issued using the background job and messages issued manually are an exception (for example.Unit 4: Logistics Vendor Messages Messages for a purchasing document are shown here as an example which is generally valid for the whole SAP system. the system creates a message. SAPscript. You may also start the message issue directly from the purchasing menu. As a rule.SAP systems support Smart Forms. 84 © Copyright . Figure 29: Messages In the ordering transaction. for example. rush orders). contract. Choose Logistics -> Materials Management -> Purchasing -> Purchase Order -> ME32N Display . in sales as well. fax. email. A background job is scheduled. or electronic data interchange (EDI). and PDF-based forms for printing. . 1. such as system messages. Choose Goto -> Message and explain the messages that were sent. 2. You can issue messages to vendors by print. All rights reserved. This job processes the message queue in intervals determined by configuration setup. This message is then placed in the message queue that contains all messages that have not yet been transferred to the vendors. Note that other messages exist. How to Display a Message Output How to display message output from the purchase order. The options to issue messages are as follows: Issue Immediately: Issue Later: The system issues the message directly from the queue as soon as you save the document. purchase order. or scheduling agreement. Explain that this is possible.

85 . All rights reserved.Lesson: Ordering Material 3. Choose Back. 4. Show the print preview. Choose Goto -> Print preview . © Copyright .

Unit 4 Exercise 1
Create a Purchase Order for Materials

Business Example As a buyer, you are responsible for purchasing. You have received an order from sales and to procure the material, you must create a purchase order that can be forwarded to the vendor. Create a Purchase Order for Stock Materials 1. Create a purchase order for stock material using information in the table. Field Vendor Data Baltus## (Baltus AG Gr.##) Purchasing organization 1000 (IDES Deutschland) Purchasing group B## (SAP01 Gr.##) Company code 1000 IDES AG Material PO Quantity Plant R-T1## 10 1000 (Hamburg) Storage location Purchase Order Number 2. Display the purchase order. 0001

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Unit 4 Solution 1
Create a Purchase Order for Materials

Business Example As a buyer, you are responsible for purchasing. You have received an order from sales and to procure the material, you must create a purchase order that can be forwarded to the vendor. Create a Purchase Order for Stock Materials 1. Create a purchase order for stock material using information in the table. Field Vendor Data Baltus## (Baltus AG Gr.##) Purchasing organization 1000 (IDES Deutschland) Purchasing group B## (SAP01 Gr.##) Company code 1000 IDES AG Material PO Quantity Plant R-T1## 10 1000 (Hamburg) Storage location Purchase Order Number a) From the SAP Easy Access screen, choose Logistics -> Materials Management -> Purchasing -> Purchase Order -> Create . b) Choose Vendor /Supplying Plant Known . 0001

c) Enter Vendor: Baltus## (Baltus AG Gr.##) and press Enter.

Hint: If you do not see the details in the header of the purchase order, choose Expand header to expand the header area.

d) Select the Org. data tab.

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Note: The Org. data tab should be the system default.

e) Enter Purchasing org.: 1000. f) Enter Purch. group: B##. g) Enter Company Code: 1000. h) Choose Enter .

Hint: If you do not see the details in the item overview area of the purchase order, choose Expand items to expand the item area.

i) Enter Material: R-T1##. j) Enter PO quantity: 10. k) Enter Plnt: 1000. l) Enter stor. location : 0001. m) Choose Enter n) Choose Save . .

You receive a system message that a purchase order was created.

Note: Do not return to the SAP Easy Access menu.

2. Display the purchase order. a) Choose Purchase order -> other purchase order . b) From within the dialog box, choose other document. c) Your purchase order is displayed. d) Choose Exit to exit the screen and return to the SAP Easy Access menu.

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Unit 4 Exercise 2
Create a Goods Receipt

Business Example You are responsible for receiving material and have received a shipment. You must now enter the material into stock by completing a goods receipt. This exercise is modularized. The CATT created the purchase order numbers in the table to allow participants to complete the exercise. If you are delivering a regular ILT class, you may elect to have students use the purchase order number they created in the previous exercise. Create a Goods Receipt Group Number 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Purchase Order Number 45000018000 45000018001 45000018002 45000018003 45000018004 45000018005 45000018006 45000018007 45000018008 45000018009 45000018010 45000018011 45000018012 45000018013 45000018014 45000018015 Group Number 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Purchase Order Number 45000018016 45000018017 45000018018 45000018019 45000018020 45000018021 45000018022 45000018023 45000018024 45000018025 45000018026 45000018027 45000018028 45000018029 45000018030

Enter a goods receipt to stock and view the documents created by the receipt. 1. Using the data provided in the table below, enter a goods receipt with reference to a purchase order.

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Field Purchase order

Data Enter the ourchase order for your group number (##) from the table provided, unless instructed otherwise by the instructor. R-T1## 10 1000 (Hamburg) 0001

Material Quantity Plant Storage Location Material Document Number 2. Display the material document.

Hint: You can display the material documents from the same transaction that you use to post goods issue (MIGO).Change the selection option from Goods Receipt to Display.

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This exercise is modularized. 91 . Using the data provided in the table below. enter a goods receipt with reference to a purchase order.Unit 4 Solution 2 Create a Goods Receipt Business Example You are responsible for receiving material and have received a shipment. You must now enter the material into stock by completing a goods receipt. © Copyright . you may elect to have students use the purchase order number they created in the previous exercise. If you are delivering a regular ILT class. The CATT created the purchase order numbers in the table to allow participants to complete the exercise. 1. All rights reserved. Create a Goods Receipt Group Number 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Purchase Order Number 45000018000 45000018001 45000018002 45000018003 45000018004 45000018005 45000018006 45000018007 45000018008 45000018009 45000018010 45000018011 45000018012 45000018013 45000018014 45000018015 Group Number 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Purchase Order Number 45000018016 45000018017 45000018018 45000018019 45000018020 45000018021 45000018022 45000018023 45000018024 45000018025 45000018026 45000018027 45000018028 45000018029 45000018030 Enter a goods receipt to stock and view the documents created by the receipt.

choose Logistics -> Materials Management -> Inventory Management -> Goods Movement -> Goods Receipt -> For Purchase Order . b) ChooseGR for Purchase Order (MIGO) . Hint: You may search for your purchase order number by choosing searching on the Material field using material number R-T1##. a) Choose Display. 2. unless instructed otherwise by the instructor. Hint: Do not return the to the SAP Easy Access menu. You will receive a system message that a material document has been posted. R-T1## 10 1000 (Hamburg) 0001 Material Quantity Plant Storage Location Material Document Number a) From the SAP Easy Access screen. Hint: You can display the material documents from the same transaction that you use to post goods issue (MIGO).Field Purchase order Data Enter the ourchase order for your group number (##) from the table provided. unless instructed otherwise by the instructor.Change the selection option from Goods Receipt to Display. All rights reserved. Display the material document. 92 © Copyright . f) Verify that the Plant is 1000 and that the Storage location is 0001. g) Select Item OK. and d) ChooseExecute or press Enter. e) Choose the Where tab. c) Enter The purchase order number for your group (##) from the table provided. . h) ChoosePost to post the goods receipt.

93 . © Copyright .b) ChooseExecute c) ChooseExit . to exit the screen and return to the SAP Easy Access screen. All rights reserved.

Process a Vendor Invoice Group Number 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Purchase Order Number 45000018031 45000018032 45000018033 45000018034 45000018035 45000018036 45000018037 45000018038 45000018039 45000018040 45000018041 45000018042 45000018043 45000018044 45000018045 45000018046 Group Number 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Purchase Order Number 45000018047 45000018048 45000018049 45000018050 45000018051 45000018052 45000018053 45000018054 45000018055 45000018056 45000018057 45000018058 45000018059 45000018060 45000018061 Field Invoice date Reference Amount Data <today> ## (your group number) 56. You are responsible for processing invoices and have received an invoice for purchased material.21 94 © Copyright . . If you are delivering a regular ILT class. The CATT created the purchase order numbers in the table to allow participants to complete the exercise. All rights reserved. You must now post the invoice for payment. you may elect to have students use the purchase order number they created in the previous exercise.Unit 4 Exercise 3 Process a Vendor Invoice Business Example This exercise is a separate module.

3. All rights reserved. If the balance indicator is red or yellow. Exit the SAP Easy Access screen.Field Tax Amount Invoice Document Data 5. enter the vendor's invoice using the data in the table. 1. Choose Post . Post your invoice. Note: Make sure your taxes have defaulted to 10% The Reference Document Category should show Purchase Order / Scheduling Agreement. Please enter Company Code 1000 and choose Continue . Choose Enter. Enter your Purchase Order Number for your group ## from the table provided. 95 . © Copyright . The Reference Document Category should show Purchase Order / Scheduling Agreement. please contact your instructor. Return to the SAP East Access screen. Enter your purchase order information for vendor Baltus##. 5. Hint: The invoice can be posted if the balance indicator is green. 2.Choose Exit to exit the screen and return to the SAP Easy Access menu. . 4.11 Hint: There may be a popup asking you to enter the Company Code. Using the data provided in the table.

. Process a Vendor Invoice Group Number 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Purchase Order Number 45000018031 45000018032 45000018033 45000018034 45000018035 45000018036 45000018037 45000018038 45000018039 45000018040 45000018041 45000018042 45000018043 45000018044 45000018045 45000018046 Group Number 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Purchase Order Number 45000018047 45000018048 45000018049 45000018050 45000018051 45000018052 45000018053 45000018054 45000018055 45000018056 45000018057 45000018058 45000018059 45000018060 45000018061 Field Invoice date Reference Amount Data <today> ## (your group number) 56.Unit 4 Solution 3 Process a Vendor Invoice Business Example This exercise is a separate module. You must now post the invoice for payment. If you are delivering a regular ILT class. you may elect to have students use the purchase order number they created in the previous exercise. You are responsible for processing invoices and have received an invoice for purchased material. All rights reserved.21 96 © Copyright . The CATT created the purchase order numbers in the table to allow participants to complete the exercise.

Hint: The invoice can be posted if the balance indicator is green. choose Logistics -> Materials Management -> Logistics Invoice Verification -> Document Entry -> Enter Invoice (transaction code MIRO). 97 . Post your invoice. a) Enter the purchase order number for your group (##) from the table provided in the Purchase Order / Scheduling Agreement field. b) Enter Invoice date : <current date> . Please enter Company Code 1000 and choose Continue . Enter your Purchase Order Number for your group ## from the table provided.Field Tax Amount Invoice Document Data 5. If the balance indicator is red or yellow. d) Enter Amount : 56.21 . Return to the SAP East Access screen. a) Choose Post . Enter your purchase order information for vendor Baltus##. The Reference Document Category should show Purchase Order / Scheduling Agreement.11 . © Copyright . 3. please contact your instructor. Choose Post . . Note: Make sure your taxes have defaulted to 10% The Reference Document Category should show Purchase Order / Scheduling Agreement. c) Choose Enter. All rights reserved. 1. b) Enter your vendor Baltus## (## = your group number). Choose Enter. 2.Choose Exit to exit the screen and return to the SAP Easy Access menu. e) Enter Tax Amount : 5. enter the vendor's invoice using the data in the table. Using the data provided in the table.11 Hint: There may be a popup asking you to enter the Company Code. a) From the SAP Easy Access screen. 4. c) Enter Reference : ## .

98 © Copyright . Exit the SAP Easy Access screen. All rights reserved. 5. .a) Choose Return . a) Choose Exit to return to the SAP Easy Access screen.

All rights reserved.Lesson: Ordering Material LESSON SUMMARY You should now be able to: Create a purchase order Create a goods receipt Verify a vendor invoice © Copyright . 99 .

you require the following knowledge: A basic understanding of procurement and sourcing processes A good understanding of the business benefits of supplier relationship management A good understanding of the procurement (requisitioning) process A basic understanding of how suppliers are linked to the purchasing process (supplier enablement) LESSON OBJECTIVES After completing this lesson. and innovation. Suppliers are very important to the overall value chain. for example for the usage of the Self-Service Procurement Scenario. supplier enablement. refer them to the service marketplace. . and increases profits. This lesson provides an overview of the basic concepts of SRM including procurement and sourcing processes. business benefits. Other functions (for example Strategic Purchasing) and components (like the Bidding Engine) are only included in SAP SRM.Unit 4 Lesson 2 Using Supplier Relationship Management 86 LESSON OVERVIEW This lesson provides an overview of SAP Supplier Relationship Management. All rights reserved. SAP Supplier Relationship Management (SAP SRM) facilitates effective management of the entire supply base in a way that streamlines procurement and sourcing processes. Building relationships across your entire supply base is more profitable than pressuring individual suppliers for marginal cost reductions. The materials and services you receive from your suppliers directly impact the quality of the products and services you deliver to your customers. supplier collaboration. 100 © Copyright . Business Example You are responsible for managing relationships with suppliers and must be able to explain the benefits of SAP Supplier Relationship Management. maintains supply quality. For this reason. procurement.Some of the SAP SRM component is already part of SAP ERP. and integration. you will be able to: Outline Supplier Relationship Management processes Procurement and Sourcing Processes If participants would like to view a demonstration of SRM.

101 . measurable return on investment. and reduce cycle times. SAP SRM provides a fully integrated source-to-pay process. you gain an insight into global spending and you are able to cut the cost of purchased goods and services across the company. Effective Procurement SAP SRM covers the full supply cycle from strategy to execution. With increased supply chain visibility and automated processes that connect the entire supply base. The benefits of Supplier Relationship Management are realized in the following key areas: © Copyright . With the unique advantages of consolidated content and master data. increase collaboration.Lesson: Using Supplier Relationship Management Figure 30: SAP Supplier Relationship Management SAP SRM manages spending for continuous profitability and delivers a quick. helping you optimize supplier selection. SAP SRM delivers significant business benefits by improving supply-related efficiency and enhancing the value of supplier relationships. All rights reserved. helping you reduce the cost of goods sold throughout the company. SAP SRM also helps you make and execute decisions that align with corporate strategy. Figure 31: Effective Procurement Business Benefits of Supplier Relationship Management SAP SRM focuses on bottom-line results.

bid responses.Unit 4: Logistics Key Area Centralized management Benefit Procurement department has centralized and standardized control over services categories Improved sourcing strategy Rationalization and optimization of the supply base Better access to data on supplier performance Improved quality of supply and reduced risk Supplier collaboration Collaboration with suppliers on service definitions. service confirmations. . All rights reserved. and invoice distribution Reduced costs Lower unit prices Demand consolidation across multiple business units Lower inventory-carrying costs Better prices through competitive bidding Realized savings 102 © Copyright . purchase order delivery.

Lesson: Using Supplier Relationship Management Key Area Automated processes Benefit Streamlined. Supplier Enablement Link suppliers to your purchasing processes through the supplier portal. evaluated receipt settlement. Handle financial transactions through SAP SRM and SAP ERP to make financial settlement more efficient by using tools for invoice management. You gain the benefits of e-procurement without losing your back-end enterprise resource planning processes. Order management Assign sources of supply. Purchasers can execute the following activities: Requisitioning Create requisitions automatically with SAP ERP through a materials requisition process run. Receiving Financial settlement Capture the process of receiving goods and services to prepare for follow-on processes such as automated financial settlement. All rights reserved. 103 . you can choose the optimal interaction channel for numerous business processes and documents and collaborate more effectively with suppliers. validate restrictions. and integrated processes from request to settlement Compressed cycle times Automation of tedious request-forproposal (RFP) and request-for-quotation (RFQ) cycles Faster procurement execution through online approval Faster acknowledgment and response from suppliers Reduced process costs Increased compliance through reduced ad hoc buying Reduced complexity through content consolidation Increased efficiency through procurement automation Compliance enforcement Compliance enforcement with the approved suppliers at the negotiated rates Procurement Catalog-based requisitioning can be integrated with your traditional procure-to-pay process by using SAP SRM. or create them manually with SAP SRM using shopping carts. automated. and perform order generation and tracking. and invoice payment. © Copyright . With SAP SRM. Purchasers can use self-service functions in SAP SRM and back-office functions in SAP ERP.

suggest changes to orders. goods receipt or invoice verification. where the ERP back end is only used for the financial accounting posting. . Purchase orders created in this way are then posted in the ERP back end for follow-up processing. and receive information on inventory and supply-and-demand plans. LESSON SUMMARY You should now be able to: Outline Supplier Relationship Management processes 104 © Copyright . In addition to this standard scenario.Unit 4: Logistics Supplier enablement includes the following activities: Document exchange Supplier portal management Supplier collaboration Exchange any document in any format smoothly across diverse systems through messaging between SAP and non-SAP systems. With SAP SRM's supplier self-services. suppliers can access supply-side transactions and other relevant information. both internally and externally.update their catalog data. Integration The main operational components in the SAP SRM application are SAP SRM for the special functions required. Give suppliers direct access to their customers' SAP and non-SAP applications through the preassembled content on the SAP supplier portal for collaboration. SAP SRM can also be used for a standalonescenario. and the data is available for material planning and availability checks. Requirements for materials that are to be externally procured can be created through planning processes in SAP SCM or through actual sales processes. process acknowledgements. Purchasers and standard users work in SAP SRM through a Web browser. Supplier Relationship Management FACILITATED DISCUSSION Ask specific business scenarios and ask how the lesson information applies FACILITATED DISCUSSION Ask participants for their business experiences that relate to the lesson material. Procurement through SAP SRM is a highly integrated process in the complete logistics value chain. Collaborate with suppliers and make integration with suppliers of all sizes economical and easy to manage. the purchasing department can focus on strategic tasks and quality improvement. and SAP ECC as part of the ERP back end. All rights reserved. for example. track payment status. As a result of the automation of the actual purchasing process.

from planning to execution and analysis. Business Example You are responsible for production plans and you must be able to create Manufacturing Resource Planning (MRPII) orders. SAP ERP supports the development and execution of efficient production plans and ensures that accurate. MRPII is Manufacturing Resource Planning and in Procurement MRP is Material Requirements Planning. you will be able to: Create a planned order Production Planning Process SAP ERP helps enterprises manage the full range of manufacturing activities. SAP ERP supports all manufacturing strategies for businesses in the discrete process and consumer products industries. you require the following knowledge: A good understanding of the production planning process LESSON OBJECTIVES After completing this lesson. in a single end-to-end system. SAP ERP delivers all elements of a customer-oriented manufacturing management system and is fully compatible with Just-inTime (JIT) and kanban methodologies. comprehensive information is available at any time by combining information from a variety of business processes. Business processes include the following: Planning Cost accounting Human capital management Materials management Warehouse management © Copyright . All rights reserved. For this reason. Just-in-Time methodologies reduce the in-process inventory and associated carrying costs. Kanban methodologies include manufacturing specification requirements used to regulate the supply of components.Unit 4 Lesson 3 Creating a Production Plan 91 LESSON OVERVIEW This lesson shows you how to create a planned order by running manufacturing resource planning (MRPII). 105 . Note: In Production.

forecasting functionality is connected with production scheduling. MPS is an optional step in the planning process. These steps may be executed independently of each other. All rights reserved. . and are not necessarily created on the basis of a customer requirement. Depending on your knowledge you can also choose to explain these planing steps in the SCM lessons in order to work out the differences between the production planning in ERP and SCM. Demand management Master production scheduling 106 © Copyright . The requirements are reflected in the system as planned quantities of a product over a given period of time. Planning Process Overview Figure 32: Production Planning Planning is generally divided into several steps. Planning Process Details Planning steps include the following: Sales and Operations Planning Sales and Operations Planning (SOP) generates sales plans and production plans using forecast values and requirements from the Sales Information System and costing/profitability analysis. Master production scheduling (MPS) allows critical resources items to be planned with extra attention. Requirement quantities and dates for finished products and assemblies based on the plans from SOP are determined. In demand management.Unit 4: Logistics Plant maintenance Quality management Briefly explain that the planning process uses forecasts and customer demand to create production and procurement schedules for finished products and component materials. This procedure ensures that the instabilities in planning are kept to a minimum. or they may collaborate.

Rough-cut capacity planning at the planning level provides a check of resource bottlenecks. SAP offers full integration between its project planning. and shop floor control system modules. and plant data collection systems. and goods receipts of the finished goods. How to Create a Planned Order How to run the material requirements planning program to create a planned order. Forecasts are easily transferred to demand management and master production scheduling (MPS). This enhances decision making by including accurate production data. confirmation of production activity. Therefore. Data plant process control and datacollection systems can also be included in the shared information. Overall Procedure Figure 33: Overall Procedure Manufacturing information is shared across the enterprise and supply network to coordinate production processes and promote cooperation. All rights reserved. Standard interfaces link SAP to external computer-aided design (CAD). Full integration within SAP ERP simplifies periodic forecast revisions. It establishes critical links between sales. Manufacturing execution includes the creation and release of a production order. Manufacturing and production in SAP ERP does much more than just facilitate efficient production. You can break down forecast demands from the planning level to the level of the individual product. where they can be offset by incoming sales orders.Lesson: Creating a Production Plan Material requirements planning Manufacturing execution Material requirements planning (MRP) is the detailed planning of replenishment schedules for required components. It integrates seamlessly with external real-time process control and laboratory information systems. goods issues of components. You can also add unexpected demands any time. SAP ERP is also the state-of-the-art manufacturing system for discrete manufacturers and engineering-to-order companies. production planning. This represents a significant advancement for information systems in the repetitive manufacturing and process industries. product data management. material requirements planning (MRP). SAP integrates your supply chain processes to make the enterprise as competitive as possible. © Copyright . and the factory floor. 107 . The output of MRP is either a planned order or a purchase requisition.

Choose Logistics -> Production -> Shop Floor Control -> Information System -> MD04 Stock/Reqmts List 108 © Copyright .You can use this to explain to the students how to continue with a warning message. An exercise on the stock/requirements list is not included for participants. 2. start the MRP run.Unit 4: Logistics 1. Explain the results briefly. 4. Press Enter or choose Continue. All rights reserved. From the SAP Easy Access screen. choose Logistics -> Production -> MRP -> Planning -> MD02 Multilevel Single-Item Planning. Using the data specified below. 1. which will appear at the end of the run. 3. summarizes the proposals created by the MRP program. Field Processing key Create purchase req. Delivery schedules Create MRP list Planning mode Scheduling Data NETCH 2 3 1 1 1 Leave the Process control parameters unchecked. Field Material MRP area Plant Data R-F4XX 1000 1000 You can leave the rest of the entries as they are (they are written below just for continuity). Why are there five different materials? How to Display the Stock/Requirements List How to display the stock/requirements list and show the production order. The MRP results screen. . Hint: You have to confirm the input parameters by pressing Enter again.

Plnt = 1000 4. 5. Highlight the production order. Press Enter or choose Continue. © Copyright . 109 .Lesson: Creating a Production Plan Note: If you are working with two sessions. just choose Step 4 Refresh and continue with 2. or you have created the production order out of the stock/requirements list. Enter Material: R-F4XX 3. All rights reserved.

Material Plant Planned order R-F4## 1000 (Hamburg) 110 © Copyright . 2. Delivery schedules Create MRP list Planning mode Scheduling Data NETCH 2 3 1 1 1 Leave the process control parameters unchecked. start the MRP run. 1. and have received a new request. Field Material MRP area Plant Data R-F4## 1000 1000 You can leave the rest of the entries as they are (they are written below just for continuity). 3. view the stock/requirements list and record your planned order. create a standard order. . Using the data specified below. You must now start an MRP run to calculate the requirements and to create planned orders for the new request.Unit 4 Exercise 4 Create a Planned Order You are responsible for calculating material requirements and creating planned orders. Using the information provided in the table. Field Processing key Create purchase req. All rights reserved. 4. Using the information provided in the table. Display the stock/requirements list to confirm that your sales order was created.

e) Enter Purch. and have received a new request. Order no. 2.Unit 4 Solution 4 Create a Planned Order You are responsible for calculating material requirements and creating planned orders. a) From the SAP Easy Access screen. create a standard order. © Copyright . d) Enter Sold-to-party: Rohrer##. choose Logistics -> Sales and Distribution -> Sales > Order b) Choose Create. c) Enter Material: R-F4##. j) Choose Exit to leave the sales order and return to the SAP Easy Access screen. d) Enter Plant: 1000. i) Choose Save. Display the stock/requirements list to confirm that your sales order was created. You must now start an MRP run to calculate the requirements and to create planned orders for the new request. 3. f) Enter Req. h) Enter Order Quantity: 10 and press Enter. a) From the SAP Easy Access screen. start the MRP run. choose Logistics -> Production -> Shop Floor Control -> Information System b) Choose Stock/Requirements List. Field Material MRP area Plant Data R-F4## 1000 1000 You can leave the rest of the entries as they are (they are written below just for continuity).: Group-## and press Enter. Using the data specified below. 111 . c) Enter Order Type: OR and press Enter. g) Enter Material: R-F4## and press Enter. e) Choose Continue. Using the information provided in the table. Del. 1.date : Today + 4 weeks and press Enter. All rights reserved.

and a user entry may not be required. d) Enter MRP area: 1000. All rights reserved. Material Plant Planned order a) From the SAP Easy Access menu. . Using the information provided in the table. e) Enter Plant: 1000. . . choose Logistics -> Production -> MRP -> Planning . a) From the SAP Easy Access screen. Note: The information may default.Field Processing key Create purchase req. Delivery schedules Create MRP list Planning mode Scheduling Data NETCH 2 3 1 1 1 Leave the process control parameters unchecked. d) Enter Plant: 1000. 4. view the stock/requirements list and record your planned order. Hint: You have to confirm the input parameters by pressing Enter again. b) Choose Stock/Requirements List c) Enter Material: R-F4##. b) Choose Multilevel Single-Item Planning c) Enter Material: R-F4##. f) Choose Enter . choose Logistics -> Production -> Shop Floor Control -> Information System . R-F4## 1000 (Hamburg) 112 © Copyright . g) Choose Exit to leave the MRP run result and return to the SAP Easy Access menu.

e) Choose Continue . f) After the MRP run. to leave the stock/requirements list and return to the SAP Easy Access © Copyright . All rights reserved. g) Choose Exit screen. Record the planned order in the space provided in the table above. 113 . a planned order is required for the sales order and a new MRP element.Note: The information will default. so a user entry may not be required.

All rights reserved. .Unit 4: Logistics LESSON SUMMARY You should now be able to: Create a planned order 114 © Copyright .

The production order contains all data relevant to production objectives. Business Example You are responsible for the processing of production orders and must be able to create and release orders. Note: In Production MRP is Manufacturing Resource Planning and in Procurement it is Material Requirements Planning.Unit 4 Lesson 4 Processing Production Orders 99 LESSON OVERVIEW In this lesson you will learn how to create. and confirm production orders. required components and production costs. 115 . © Copyright . required resources. you will be able to: Create and release a production order Confirm a production order and goods receipt Production Orders The production order contains information on production dates and quantities. material components. and costs. release. For this reason. You can produce multiple products jointly in one production order (co-products) and distribute incurred costs between the different products. All rights reserved. A normal production order covers the demand for a single material or product. The production order is the central data object in shop floor control and manufacturing execution. you require the following knowledge: A good understanding of creating production orders A good understanding of releasing production orders A good understanding of confirming production orders A good understanding of posting goods receipts LESSON OBJECTIVES After completing this lesson.

You must release a production order before you can process it. 116 © Copyright . Order printing: Print the production order for the shop floor. Releasing a Production Order Before an order is released. Order execution: Execute the production order. 3. 7. The graphic planning table provides an overview of short-term orders and released production orders. you can specify external operations that are to be processed in an outside workshop. 4. Order release: Release the production order to check availability of required components and production tools. . Order creation: Create the production order. 8. Material staging: Issue material to use in production. All rights reserved.Unit 4: Logistics Figure 34: Production In a production order. Confirmations: Confirm the production order. 6. 5. Production planning: Determine production requirements and ensure sufficient manufacturing capability. Production orders are usually created from planned orders. 2. Goods receipt: Post the goods receipt. you must ensure that sufficient manufacturing capacity is available. The Production Process The production process includes the following steps: 1.

For example. Examples of where steps must be processed in a specific order are at a components plant in the aircraft industry and during assembly of precision instruments. operation times are long and work center assignment for an operation is only carried out after the previous operation has finished. 3. you print shop floor papers. How to Create and Release a Production Order How to create a production order for the planned order from the MRP run. you can work with either dynamic or static availability checking. All rights reserved. and confirm operations. choose Logistics -> Production -> Shop Floor Control -> Order -> Create -> CO40 From Planned Order . You specify the type of availability check to be carried out (available-to-promise calculation) per order type. refer to the table in the exercise. issue materials from stock. Releasing a Production Order: Details Production orders may be released in the following ways: Individually Order by order As a group Based on order start date As soon as they are created You can release production orders operation by operation. 1. If you are using group 00. 117 . 2. Once you have entered your planned order. you set up the system to check the availability of components and production resources or tools. Enter the planned order created in the MRP run by the CATT. for example. choose Enter . From the SAP Easy Access screen.Lesson: Processing Production Orders Figure 35: Production Order When you release a production order. Once the production order is released. For other planned order numbers. if. your planned order will be 37031. © Copyright .

. and/or automatically trigger the goods receipt of the manufactured goods. A confirmation can record the following: quantity produced by operation. 2. Choose Release order 5. Enter Material: R-F4XX. 2. Confirm the validity date request with Confirm. Explain the BOM briefly. Order Confirmation and Goods Receipt Explain that production order confirmations record internal activities carried out for the order. .Unit 4: Logistics Hint: You can also use the Stock/Requirements List and convert the planned order directly. Show the details of the planned order by choosing Details of Element or double clicking on the element. labor hours). Press Enter or choose 3. goods movements and amount of activity (for example. Press Enter or choose 3. Explain the routing. choose Logistics -> Production -> Master Data -> Bills of Material -> Bill of Material -> Material BOM -> CS03 Display . and BOM Usage: 1. How to Display the Routing and Review the Material How to display the routing and review the material for a production order. All rights reserved. update costs. Plant: 1000. Then choose: Convert planned order to production order. Select the component and choose Extras -> Display Assembly . 4. How to Display a Bill of Material How to display a bill of material and the data required for a production order. Plant: 1000. Enter Material: R-F1XX. . From the SAP Easy Access screen. Explain that the components for the final material are assembled with other components. 4. such as quantities 118 © Copyright . 1. From the SAP Easy Access screen. A confirmation can reduce capacity on the work center. Choose Save . production dates. personnel. choose Logistics -> Production -> Master Data -> Routings -> Routings -> Standard Routings -> CA03 Display. 1. Production order operations are confirmed to deliver feedback to sales order processing and shop floor planning. . Display the components for the component R-B1XX. Completion confirmations collect important data.

you can confirm all operations and materials with a single confirmation transaction. Confirmed labor can be transferred to SAP ERP Human Capital Management. which can drive the automatic backflush of material consumption for all operations. process-oriented production environment. 119 . Alternatively. You can confirm production orders operation by operation. The order is confirmed either upon receiving the product in the finished products warehouse. including suboperations. production times. Goods receipts can be processed as follows: © Copyright . Completion confirmations clear capacity loads and collect data for production cost controlling. If you create the necessary organizational requirements. Orders can be confirmed at the order header level. or at the ramp just before delivery to your customer. Operations are confirmed using target values. You can overwrite all input values so you can report variances in the production process. A a fast-entry screen allows you to confirm multiple operations. and completion dates. All rights reserved. scrap. confirmation of a milestone operation at the end of a production order may be sufficient. up to the previous milestone. Figure 36: Confirmation and Goods Receipt Types of Completion Confirmations The following types of completion confirmations are possible: The following types of completion confirmations are possible: Milestone completion confirmation Standard completion confirmation Normal completion confirmation Collective completion confirmation Completion confirmation at order header level The system confirms all preceding operations. In a lean. Individual completion confirmations are conducted using target values as defaults. you can report goods receipts in a separate transaction. Confirmations are based on reported quantities (yield plus scrap) and standard times. Goods Receipt Goods receipts to stock can be automatically posted when you confirm the specified operation in a production order.Lesson: Processing Production Orders produced.

120 © Copyright . choose Logistics -> Production -> Shop Floor Control -> Confirmation -> Enter -> CO15 For Order.Unit 4: Logistics For partial deliveries from production by posting them directly to available stock For partial deliveries from production by posting them to quality inspection stock From co-products and by-products Goods receipt processing generates a credit posting to the production order that corresponds to the value of the product quantity based on its standard price. Choose Save . Enter the production order you created and choose Enter 3. You assign the general ledger accounts when you set up the system. 2. SAP ERP debits the value in the general ledger (G/L) to the stock account for finished products and credits a specific revenue account. All rights reserved. How to Confirm a Production Order and Goods Receipt 1. to confirm the production order and save the goods receipt. . From the SAP Easy Access screen. which represents the value of goods produced.

If you are delivering a regular ILT class. you must create and release the production order. For this reason. you may elect to have students use the planned order number they created in the previous exercise. 121 . Group Number 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Planned Order Number 37031 37032 37033 37034 37035 37036 37037 37038 37039 37040 37041 37042 37043 37044 37045 37046 Group Number 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Planned Order Number 37047 37048 37049 37050 37051 37052 37053 37054 37055 37056 37057 37058 37059 37060 37061 1. Use the stock/requirements list to confirm creation and processing of the production order. You are responsible for production orders and have received a new order. PP01 © Copyright . create a production order. Do not forget to release your order before posting. Using the information provided in the table. All rights reserved. Field Planned Order Order type Data The planned order for your group ## from the table provided.Unit 4 Exercise 5 Create and Release a Production Order This exercise is modularized. The CATT created the planned order numbers in the table to allow participants to complete the exercise. Record your production order in the table.

Access the stock/requirements list to display the production order. .Field Production Order Data 2. 122 © Copyright . All rights reserved.

Using the information provided in the table. PP01 © Copyright . All rights reserved. Group Number 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Planned Order Number 37031 37032 37033 37034 37035 37036 37037 37038 37039 37040 37041 37042 37043 37044 37045 37046 Group Number 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Planned Order Number 37047 37048 37049 37050 37051 37052 37053 37054 37055 37056 37057 37058 37059 37060 37061 1. create a production order. For this reason. If you are delivering a regular ILT class. you must create and release the production order. Do not forget to release your order before posting. Record your production order in the table. you may elect to have students use the planned order number they created in the previous exercise. Use the stock/requirements list to confirm creation and processing of the production order. 123 . Field Planned Order Order type Data The planned order for your group ## from the table provided. The CATT created the planned order numbers in the table to allow participants to complete the exercise. You are responsible for production orders and have received a new order.Unit 4 Solution 5 Create and Release a Production Order This exercise is modularized.

choose Display Element to display the production order. f) Choose Details of element g) A dialog box opens. h) Record your production order in the space provided in the table. b) Choose From Planned Order . i) Choose Exit to exit the screen and return to the SAP Easy Access menu.Field Production Order Data a) From the SAP Easy Access screen. 2. i) Choose Exit twice to leave the stock/requirements list and return to the SAP Easy Access screen. e) Choose Enter . f) From the application toolbar. choose Logistics -> Production -> Shop Floor Control -> Order -> Create . Access the stock/requirements list to display the production order. choose Logistics -> Production -> Shop Floor Control -> Information System . d) Enter Plant: 1000. . c) Enter Planned Order: (The planned order for your group ## from the table provided) d) Enter Order Type: PP01. . All rights reserved. h) From within the dialog box. Hint: Order type PP01 should default. choose Release Order g) Choose Save . a) From the SAP Easy Access screen. 124 © Copyright . Note: The information will default. . e) Choose Enter . b) Choose Stock/Requirements List c) Enter Material: R-F4##. .

The CATT created the production order numbers in the table to allow participants to complete the exercise. From the SAP Easy Access screen. 125 . to confirm the production order and save the goods receipt. Choose -> Save © Copyright . choose Logistics -> Production -> Shop Floor Control > Confirmation -> Enter -> CO15 For Order. If you are delivering a regular ILT class. You must now confirm the production order and post the goods receipt. 1. you may elect to have students use the purchase order number they created in the previous exercise. All rights reserved. 2.Unit 4 Exercise 6 Confirm a Production Order and Goods Receipt This exercise is a separate module. 3. Enter the production order for your group number from the table provided and choose -> Enter . Group Number 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Production Order Number 60002700 60002701 60002702 60002703 60002704 60002705 60002706 60002707 60002708 60002709 60002710 60002711 60002712 60002713 60002714 60002715 Group Number 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Production Order Number 60002716 60002717 60002718 60002719 60002720 60002721 60002722 60002723 60002724 60002725 60002726 60002727 60002728 60002729 60002730 You are responsible for maintaining production orders and goods receipts and have received a new order.

.126 © Copyright . All rights reserved.

Enter the production order for your group number from the table provided and choose -> Enter . 127 . you may elect to have students use the purchase order number they created in the previous exercise. 1. If you are delivering a regular ILT class. to confirm the production order and save the goods receipt. All rights reserved. You must now confirm the production order and post the goods receipt. 3. From the SAP Easy Access screen. 2.Unit 4 Solution 6 Confirm a Production Order and Goods Receipt This exercise is a separate module. Choose -> Save © Copyright . choose Logistics -> Production -> Shop Floor Control > Confirmation -> Enter -> CO15 For Order. The CATT created the production order numbers in the table to allow participants to complete the exercise. Group Number 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Production Order Number 60002700 60002701 60002702 60002703 60002704 60002705 60002706 60002707 60002708 60002709 60002710 60002711 60002712 60002713 60002714 60002715 Group Number 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Production Order Number 60002716 60002717 60002718 60002719 60002720 60002721 60002722 60002723 60002724 60002725 60002726 60002727 60002728 60002729 60002730 You are responsible for maintaining production orders and goods receipts and have received a new order.

All rights reserved.128 © Copyright . .

All rights reserved. 129 .Lesson: Processing Production Orders LESSON SUMMARY You should now be able to: Create and release a production order Confirm a production order and goods receipt © Copyright .

This lesson focuses on the extended features for the production planing. refer participants to the service marketplace. Transportation Management (TM) is based on SAP SCM. and logistics Have smooth synchronization between fulfilment and transportation operations You can balance between supply and demand by ensuring the most profitable match possible between supply and demand. you require the following knowledge: A good understanding of supply chain collaboration A good understanding of supply chain execution A good understanding of supply chain coordination LESSON OBJECTIVES After completing this lesson. SAP SCM has a strong impact on SAP CRM and SAP SRM. it is also extended by Extended Warehouse Management (EWM). Today’s fast-paced business environment places increasing pressure on companies to balance the push and pull of supply and demand. 130 © Copyright . but it also incorporates functionalities for Sales Order and Purchase Order Processing. With the actual release of SAP SCM. execution tracking. you will be able to: Utilize SAP Supply Chain Management to manage supply and demand The Supply Chain Production is emphasized in SAP SCM. Accomplishing this requires an adaptive supply network driven by real-time customer demand and 24x7 supply monitoring. . All rights reserved. product. For this reason.Unit 4 Lesson 5 Using Supply Chain Management 109 LESSON OVERVIEW This lesson shows you how to use SAP Supply Chain Management to manage supply and demand. To view a demonstration of SCM. Your supply chain must: Meet the highest levels of demand accuracy Have a high level of customer satisfaction Fully support order. Business Example You are responsible for global planning and must ensure deliveries are made from the nearest distribution center. SAP CRM uses the APO component from SAP SCM for the Global-ATP (availability to promise).

All rights reserved. In today’s environment. 131 . customer expectations. and business processes within the supply chain Manage the supply chain on a global basis Figure 38: The Supply Chain To meet supply chain challenges. software solutions must: Provide immediate visibility to all supply and demand information © Copyright . not just the locations inside your company.Lesson: Using Supply Chain Management Traditional enterprise resource planning (ERP) systems allow plants and distribution centers to plan timely and cost-efficient replenishment. Figure 37: SAP SCM The Supply Chain Solution Businesses must be able to: Plan timely and cost-efficient replenishment throughout the entire supply chain Quickly react to constantly changing business relationships. you must be able to plan the entire supply chain.

Execution: Coordination: SAP SCM allows you to monitor and analyze processes both within and outside your company by providing supply chain event management and supply chain performance management. Elements of supply chain execution include the following: Materials management Manufacturing execution SAP SCM ensures that the materials required for manufacturing are in the right place at the right time by sharing information on inventory and procurement orders. and warehouse management. SCM delivers additional functions like optimization (transportation planning. and transactional systems through materials management. logistics. Elements of Supply Chain Execution What is Supply Chain Execution? It is sales order management. transportation. and support for supplier-managed inventory (SMI). . SAP SCM integrates planning. It also generates optimized production schedules that take into account realtime material and capacity constraints. configure-to-order. promising. These activities happen mostly in SAP ERP. and handling. support for vendor-managed inventory (VMI). 132 © Copyright . SAP Supply Chain Management (SAP SCM) is the only solution that delivers a complete set of features and functions for building adaptive supply chain networks. at the lowest cost possible. Collaboration: SAP SCM enables you to share information and set and achieve common supply chain goals through Collaborative Planning. manufacturing. transportation execution. and make-to-stock. Forecasting and Replenishment (CPFR). order promising. storage. make-to-order. manufacturing planning. SAP SCM supports all production processes. plus logistics execution. TP/VS. including supply chain design. procurement and production. Features and functions of SAP Supply Chain Management include the following: Planning: SAP SCM enables you to model supply chains by providing comprehensive planning capabilities. manufacturing execution. flexible response to engineering changes and customer requirements.Unit 4: Logistics Ensure replenishment plans are synchronized throughout the entire supply chain Provide modeling tools to help determine the best approach to reducing overall cycle time in the network Support buying and selling products and services over the Internet Allow automation of business process between suppliers and customers in the supply chain The ultimate goal of supply chain management is to perform just-in-time delivery of goods and services to all locations in the supply chain. SAP SCM enables a rapid. demand and supply planning. All rights reserved. This includes goods and services such as purchasing. including engineer-toorder. By integrating manufacturing with other supply chain processes. and transportation planning. EWM) and GATP (global availability check).

Detailed reports on supply chain status are also available. monitors. It also shows how much the product will cost. and optimizes employee picking assignments. Monitoring at every stage of the supply chain process provides visibility from price quotation to procurement to product delivery. They also consider transportation constraints and costs while ensuring time-definite deliveries. Order promising is the critical link between order management or CRM systems and supply chain planning systems. Supply chain event management also distributes alerts and recommends actions when key events are missed. and how long it will take to deliver. Warehouse Management also supports warehousing tasks such as labeling. Transportation managers consolidate orders and optimize shipments from suppliers to customers to achieve maximum efficiency for their transportation dollars. such as denied-party list screening and embargo lists: comply with global trade laws Warehouse Management Warehouse Management reconciles open purchase orders with incoming shipments. supports a putaway system that remembers where goods are stored. Order promising provides a window into product availability.Lesson: Using Supply Chain Management Order promising Based on the Global Available-to-Promise (Global ATP) capability. It enables decision makers to proactively © Copyright .: calculate the cost of freight Shipment cost settlement: Calculate the total cost of the shipment and finalize the freight cost Document printing: print documents for logistics execution International trade management. and displays key performance indicators associated with supply chain processes. SAP SCM allows distributed enterprises to manage transportation from a centralized location or from locations throughout business units. Supply Chain Performance Management Supply chain performance management measures. 133 . order promising receives queries from order management or CRM systems. Global ATP determines when a product is available across a fulfillment network or when it can be built. All rights reserved. Transportation execution SAP Supply Chain Management supports the following activities: Shipment tendering and booking: select and book a service provider for the shipment of the goods Carrier selection: select preferred carriers Freight building: load the truck according to the deliver schedule of the freight Freight cost calculation. kitting. There is no graphic for Supply Chain Coordination Supply Chain Coordination Supply Chain Event Management Supply chain event management provides insight into changes in plans that occur across the supply chain. and deferred handling.

and customers. . Figure 39: Supply Network Collaboration SAP Supply Network Collaboration. helps you connect to and collaborate with the following: Suppliers Customers Give them easy and seamless access to supply chain information to facilitate your ability to synchronize supply with demand. With Release 4. SAP SCM also adds additional execution functionality through Global Available-to-Promise or Extended Warehouse Management. including minimumbased and maximum-based vendor-managed inventory and exclusion of promotions and transport load building. seamless access to supply chain information by extending visibility and collaborative processes to manufacturing processes. but usually requires a standalone installation. Provide easy. included in SAP SCM. While most of the execution processes are performed in SAP ERP. Provide broad capabilities for replenishment. Contract manufacturers Integration The name of the component is no longer SAP APO. All rights reserved. The two main components inthe management of a supply chain are SAP ERP and SAP Supply Chain Management (SAP SCM). APO is a part inside SAP SCM which also includes SNC (Supply Network Collaboration (formerly known as inventory collaboration hub). EM or SCEM (Event Manager). outsource manufacturers. SAP SCM optimizes planning and delivers additional functionality for coordination and collaboration.Unit 4: Logistics control the effectiveness of the extended supply chain and to share this insight with business partners. and EWM (Extended Warehouse Management). 134 © Copyright . There maybe more in the future. you must foster collaborative relationships with suppliers. SAP TM (Transportation Management) is based on SCM. Collaboration Elements of Supply Chain Management To reduce costs.0 the name has changed to SAP SCM.

All rights reserved.Lesson: Using Supply Chain Management Supply Chain Management FACILITATED DISCUSSION Ask participants for their business experiences that relate to the lesson material. 135 . LESSON SUMMARY You should now be able to: Utilize SAP Supply Chain Management to manage supply and demand © Copyright .

All rights reserved. you will be able to: Create a sales order Sales Orders Organizational units and master data. Figure 40: Sales Order Management The sales order processing (or order-to-cash) scenario describes the complete process. For this reason. you require the following knowledge: A good understanding of sales order processes A good understanding of creating a sales order LESSON OBJECTIVES After completing this lesson. Business Example You are responsible for managing sales orders and must be able to create sales orders. . Sales order management in SAP ERP provides insight into back-office sales processes.Unit 4 Lesson 6 Managing Sales Orders 114 LESSON OVERVIEW This lesson shows you how to create a sales order. The sales order is delivered and a goods issue is posted when the material leaves the warehouse. 136 © Copyright . as explained in the unit System Wide Concepts are used to create sales documents so you can refer to this unit.

The sales document stores data resulting from the basic functions. All rights reserved. This data includes. The resulting data can be displayed by a user and. prices. Transportation: Transportation includes the selection of the vendor to transport the finished product to the customer. Sales order management provides an ecommerce platform through which products can be sold. 7. Payment processing: Create the posting in financial accounting. Goods issue: Warehouse stock for the delivery is reduced and the value of the stock is posted to the balance sheet account in inventory accounting. Sales order: The sales order can adopt information from the pre-sales documents (a quotation or an inquiry). where the goods are prepared for shipping. System configuration determines if these basic functions are completely automated or require manual processing. Invoice the sales order. it can be manually changed by the user. 3. © Copyright . 2. Billing: Calculate pricing and taxes and check credit limits. Picking can be fulfilled using the warehouse management system. Pre-sales activities can be used as a reference during the creation of a sales order. the availability of the material is checked to confirm the customer's requested delivery date. 8. During the creation of the sales order.Lesson: Managing Sales Orders Sales order management includes the following processes and basic functions: 1. in some cases during subsequent processing. Sales scheduling agreements or sales contracts (long-term sales agreements) can also be created with reference to a sales order and are supported by the sales process steps. and discounts. Availability check: The availability of required material is confirmed. Sales Order Creation During sales order creation. confirmed quantities. the system carries out basic functions. and transportation is planned and carried out. Outbound delivery: An outbound delivery is the basis for a process where the goods are physically moved. 137 . for example. 6. as well as for the posting of the goods issue. 4. shipping dates. Picking: Take goods from a storage location and stage the goods in a picking area. Figure 41: Sales Order Sales orders can be created in various ways. 5.

138 © Copyright . 1. Field Order type Data Standard Order (OR) Sales Organization 1000 (Germany Frankfurt) Distribution channel 10 (Final customer sales) Division 00 (Cross-division) Sold-to party RohrerXX (Rohrer AG Gr. a message is displayed confirming the sales order document. 3. choose Logistics -> Sales and Distribution -> Sales -> Order -> VA01 Create . Choose Save . 2.XX) Purchase order number. All rights reserved. Using the data specified in the table. The sales order document number is presented on the status bar. Requested delivery date Material Sales Order XX <Today + 1 week> R-F2XX (Pump Precision 1XX) Order Quantity 10 The required steps are detailed in the Create a Sales Orderexercise. create a sales order. From the SAP Easy Access screen. Hint: When you save the sales order.Unit 4: Logistics Sales orders can be created in the following ways: Over the Internet using catalog browsing Product search Shopping basket Order history How to Create a Sales Order How to create a sales order. .

Because of the type of order. All rights reserved. 139 .Lesson: Managing Sales Orders The sales order document has now been saved and the information entered is recorded. © Copyright . the material is now relevant for materials planning and will be relevant for materials anagement forecasting and planning.

continue creating the order. Req.##) Purch. Record the sales order document number. Field Order Type Data OR (Standard order) Sales organization 1000 (Germany Frankfurt) Distribution channel 10 (Final customer sales) Division 00 (Cross-division) 2. Using the information provided in the table. order no. Create a Sales Order 1.date Material Group—## <Today + 1 week> R-F2## (Pump) Order quantity Sales order 10 140 © Copyright . You must now enter the order into the system. create a standard order. Record the sales order document. deliv. . Field Sold-to party Data Rohrer## (Rohrer AG Gr. All rights reserved. Using the information provided in the table.Unit 4 Exercise 7 Create a Sales Order Business Example You are responsible for the maintenance of sales orders and have received an new order from a customer.

##) Purch. g) Choose Enter . Using the information provided in the table. create a standard order. Group—## © Copyright . d) Enter Sales Organization: 1000. 2. order no.Unit 4 Solution 7 Create a Sales Order Business Example You are responsible for the maintenance of sales orders and have received an new order from a customer. Using the information provided in the table. e) Enter Distribution Channel: 10. f) Enter Division: 00. b) Choose Create . choose Logistics -> Sales and Distribution -> Sales > Order . Create a Sales Order 1. You must now enter the order into the system. Record the sales order document. Record the sales order document number. c) Enter Order Type: OR. Field Sold-to party Data Rohrer## (Rohrer AG Gr. 141 . All rights reserved. continue creating the order. Field Order Type Data OR (Standard order) Sales organization 1000 (Germany Frankfurt) Distribution channel 10 (Final customer sales) Division 00 (Cross-division) a) From the SAP Easy Access screen.

Field Req. b) Enter Purch. j) Choose Exit to exit the screen and return to the SAP Easy Access screen. 10 Hint: Make sure you are on the Sales tab on the order entry screen. . 142 © Copyright . choose Enter information. to confirm that you have read the i) Choose Save and record the document number in the table provided. Hint: The system displays a message that the sales order has been saved with the sales document number. f) Enter Material: R-F2##. deliv. g) Enter Order quantity: 10. order no. e) Choose Enter .date: <Today + 1 week>. This number appears on the status bar. All rights reserved.date Material Data <Today + 1 week> R-F2## (Pump) Order quantity Sales order a) Enter Sold-to party: Rohrer##. deliv. c) Choose Enter . Hint: If a dialog box appears. h) Choose Enter .: Group-##. d) Enter Req.

143 . All rights reserved.Lesson: Managing Sales Orders LESSON SUMMARY You should now be able to: Create a sales order © Copyright .

you will be able to: Create a delivery and post a goods issue Delivery Process Logistics execution is the physical movement of goods. the status of shipping activities is monitored. Shipping is an important part of the logistics chain and a subsequent activity of the core sales process. and process a goods issue. you require the following knowledge: A good understanding of the delivery process A good understanding of how to create a delivery A good understanding of how to post a goods issue LESSON OBJECTIVES After completing this lesson. . packing. create a delivery document. and goods issue.Unit 4 Lesson 7 Creating Delivery Process Documents 121 LESSON OVERVIEW This lesson shows you how to create a delivery and post a goods issue. Processes supported include all shipping activities. Shipping activities are 144 © Copyright . and the data accumulated during shipping processing is documented. and must be able to explain the process. transportation. shipping and planning information is recorded. All rights reserved. from the procurement of raw material through to the shipment of the sales item. Figure 42: Delivery and Goods Issue The outbound delivery document is a central object of the goods issue process and is used to support the delivery process. For this reason. During the outbound delivery process. Business Example You are responsible for delivery procedures. such as picking.

These deliveries can include complete or partial orders or order combinations. This prerequisite requirement is included in the standard system settings. Value changes are posted to the balance sheet account in inventory accounting. The goods issue document cannot be changed manually. Goods Issue Posting Functions The outbound delivery forms the basis of the goods issue posting. This prevents any discrepancies between the goods issue document and the outbound delivery. the scope for changing the delivery document becomes very limited. you can be sure that the goods issue document is an accurate reflection of the outbound delivery. The serial number status is updated. This status indicates where the item is in the picking procedure. When you post a goods issue for an outbound delivery. Any changes must be made in the outbound delivery itself. © Copyright . In this way. Outbound deliveries can be combined to form a single group of deliveries. 145 . All rights reserved. Delivery Process Details An outbound delivery can be created in the following ways: With reference to a sales order With reference to a stock transport order With reference to a subcontract order With reference to a project Without any reference Outbound deliveries can be created automatically or manually using worklists. Requirements are reduced by the delivery quantity. The data required for the goods issue posting is copied from the outbound delivery to the goods issue document. System settings allow picking to be carried out in the following ways: Automatically (during outbound delivery creation) Routinely (at certain times) Manually (via an employee request) For a goods issue to be posted. Picking the Delivery The picking process involves taking goods from a storage location and staging the goods in a picking area where the goods will be prepared for shipping. A picking status is recorded in each delivery item for the purpose of scheduling and monitoring. the following functions are carried out: Warehouse stock of the material is reduced by the delivery quantity. Warehouse and sales overview reports allow you to monitor created outbound deliveries and outstanding sales activities. After the goods issue is posted for an outbound delivery.Lesson: Creating Delivery Process Documents initiated when the outbound delivery is created. the delivery quantity must equal the picking quantity in the outbound delivery. Data that is generated during shipping processing is included in the delivery.

Caution: With the automatically entered Selection date (the actual date) the system will give you an error message: Order cannot be delivered (No schedule lines due for delivery up to the selected date). as the students will run into the same problem in the exercise! The required steps are detailed in the Create a Delivery exercise. This is basis for the warehouse activity and the goods issue. Hint: The shipping point is 1000. You have to move the date forward several days. How to Post a Goods Issue 1. 4. 146 © Copyright . You can try to avoid this message by changing the date immediately on the entry screen. You will receive a system message that a delivery document has been created. Choose Save . . A worklist for the proof of delivery is generated. All rights reserved. Briefly explain the delivery. From the SAP Easy Access screen. Use the sales order number created by the CATT. choose Logistics -> Sales and Distribution -> Shipping and Transportation -> Outbound Delivery -> Create -> Single Document -> VL01N With Reference to Sales Order. choose Logistics -> Sales and Distribution -> Shipping and Transportation -> Outbound Delivery -> Change -> VL02N Single Document or Logistics -> Sales and Distribution -> Shipping and Transportation -> Post Goods Issue -> VL02N Outbound Delivery Single Document . refer to the table in the exercise for additional numbers.Unit 4: Logistics Goods issue posting is automatically recorded in the document flow. Alternatively. 3. 1. From the SAP Easy Access screen. You can post goods issues in the following ways: Automatically (during outbound delivery creation) Routinely (at certain times) Manually (via an employee request) How to Create a Delivery How to create a delivery. If you are using group 00. 2. or show this and explain the “problem”. Stock determination is executed for the vendor's consignment stock. this will be 14000.

If you are using group 00. All rights reserved. Hint: You may use the Post Goods Issue button on the entry screen or use it when you display the details of the delivery in change mode. After pressing the Post Goods Issue button. © Copyright . 147 .Lesson: Creating Delivery Process Documents 2. the sales order number will be 14000. Note: The number of the last delivery should already appear in the Delivery field. The required steps are detailed in the Create a Deliveryexercise.you receive a system message that the Delivery has been saved. Post a goods issue for the delivery created in the previous demo. Use the sales order created by the CATT and the associated delivery.

You must now create a delivery and post a goods issue. If you are delivering a regular ILT class. you may elect to have students use the sales order number they created in the previous exercise.Unit 4 Exercise 8 Create a Delivery and Post a Goods Issue Business Example This exercise is modularized. The CATT created the sales order numbers in the table to allow participants to complete the exercise. as shown in the table. Note: This exercise uses the sales order number indicated for your group number. Create a Delivery and Post a Goods Issue Group Number 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Sales Order Number 14000 14001 14002 14003 14004 14005 14006 14007 14008 14009 14010 14011 14012 14013 14014 14015 Group Number 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Sales Order Number 14016 14017 14018 14019 14020 14021 14022 14023 14024 14025 14026 14027 14028 14029 14030 Create a delivery document with reference to your customer's order. Post the delivery document and verify that the shipping documents were processed using document flow. You are responsible for deliveries and have been notified that your customer's order is ready to ship. All rights reserved. . 148 © Copyright .

149 . Using the information provided in the table.1. All rights reserved. create a delivery document. You cannot post the goods issue while you are still in the transaction to create the delivery. Document Standard order Delivery WMS transfer order GD goods issue Document number Status © Copyright . 1000 (Shipping Point Hamburg) Selection Date Delivery 2. Record your findings in the table. Field Order Data Use the sales order number for your group number ## provided in the table. <Today + 1 week> Shipping point Hint: You have to save the delivery before you can post the goods issue. Post the goods issue for the delivery and view the document flow.

150 © Copyright . Note: This exercise uses the sales order number indicated for your group number.Unit 4 Solution 8 Create a Delivery and Post a Goods Issue Business Example This exercise is modularized. Post the delivery document and verify that the shipping documents were processed using document flow. as shown in the table. . you may elect to have students use the sales order number they created in the previous exercise. If you are delivering a regular ILT class. You must now create a delivery and post a goods issue. The CATT created the sales order numbers in the table to allow participants to complete the exercise. You are responsible for deliveries and have been notified that your customer's order is ready to ship. All rights reserved. Create a Delivery and Post a Goods Issue Group Number 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Sales Order Number 14000 14001 14002 14003 14004 14005 14006 14007 14008 14009 14010 14011 14012 14013 14014 14015 Group Number 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Sales Order Number 14016 14017 14018 14019 14020 14021 14022 14023 14024 14025 14026 14027 14028 14029 14030 Create a delivery document with reference to your customer's order.

. enter the Order: Enter the sales order number for your group ## provided in the table. 151 . f) Choose Enter g) Choose Save . choose Logistics -> Sales and Distribution -> Shipping and Transportation -> Post Goods Issue . choose Logistics -> Sales and Distribution -> Shipping and Transportation -> Outbound delivery -> Create -> Single Document . e) If needed. 2. 1000 (Shipping Point Hamburg) Selection Date Delivery a) From the SAP Easy Accessscreen. Using the information provided in the table. Document number Status © Copyright . create a delivery document.1. You cannot post the goods issue while you are still in the transaction to create the delivery. Hint: You have to save the delivery before you can post the goods issue. . d) Enter Selection date: <Today + 1 week>. <Today + 1 week> Shipping point Note: Change the default sales order to the sales order provided in the table. Document Standard order Delivery WMS transfer order GD goods issue a) From the SAP Easy Access screen. All rights reserved. Post the goods issue for the delivery and view the document flow. Record the delivery document number in the table provided. b) Choose With Reference to Sales Order c) Enter Shipping point: 1000. Field Order Data Use the sales order number for your group number ## provided in the table. Record your findings in the table.

This is indicated by the message in the status bar. Hint: The document will be saved and the posting will be performed. . Record the documents in the table provided. 152 © Copyright . to exit the screen. Hint: The delivery document number should default. All rights reserved. Caution: Do not back out of the Change Outbound Delivery screen! d) Choose Document flow e) Choose Exit . c) Choose the Post goods issue icon from the application toolbar.b) Choose Outbound Delivery Single Document .

Lesson: Creating Delivery Process Documents LESSON SUMMARY You should now be able to: Create a delivery and post a goods issue © Copyright . 153 . All rights reserved.

All rights reserved. you require the following knowledge: A good understanding of the billing process A good understanding of the creation of billing documents LESSON OBJECTIVES After completing this lesson. Review pricing functions. Billing information is available at the following stages of the order and delivery process: Create invoices based on deliveries or services.Unit 4 Lesson 8 Creating Billing Documents 130 LESSON OVERVIEW This lesson shows you how to create a sales order billing document. For this reason. Issue rebates. you will be able to: Create a sales order billing document Billing Documents This lesson explains the billing process in SAP ERP. Issue credit and debit memos and invoices. Business Example You are responsible for the billing process and must be able to create billing documents and verify the accuracy of billings. 154 © Copyright . . Cancel billing transactions. Billing represents the final processing stage for a business transaction in sales order processing. Transferbilling data to financial accounting.

You can assign a specific sales organization. It is possible to create billing documents in the following ways: With reference to a sales order document With reference to a delivery document With reference to external transactions By having the system automatically process a billing due list as a background task By manually processing from a worklist By creating a billing document explicitly By combining several sales order documents into a collective billing document By billing one or more sales order documents with several billing documents (this is called an invoice split) By creating an individual billing document for every sales document © Copyright . The billing document is created with reference to the original sales order and invoice the customer. 155 . a distribution channel. you can create. During billing processing. All rights reserved. These are important for the interface between billing and financial accounting.Lesson: Creating Billing Documents Figure 43: Billing It is important to point out billing creates another document in the sales order process. just like all parts of sales order processing in SAP ERP. SAP uses the term billing and invoice interchangeably. and a division to the billing transactions. The organizational structures of the accounting department include the company codes and the sales organizations assigned to the company codes. and delete billing documents. Billing is integrated into the organizational structures. change. The process of creating the accounting document from the billing document is automatic. When the billing document is created in the sales process. Master data and organizational elements determine which account in the general ledger the accounting information posts to. an associated accounting document is created recording the receivable in the customers' account.

and includes activities resulting from various interactions with customers. The goods are shipped. All rights reserved.Unit 4: Logistics Billing and Financial Accounting The system automatically posts billing amounts to the appropriate accounts by means of account determination. a cash clearing account) Sales deductions Accrual account Document Flow The document flow provides access to all related documents within the sales processes. . Costs and revenue can be posted to the following accounts: Account Customer accounts receivable Revenue Accruals (for rebate agreements) Accrual clearing account Account General ledger (for example. Use document flow as an example to show that documents are referenced to one another. An invoice is issued to the customer. Account determination controls the posting of billing amounts to the appropriate general ledger accounts. and a sales order is created with reference to the quotation. A document flow records each activity executed during the processing of the sales document. Sales documents form part of a chain of interrelated documents displayed in a document flow. The customer later places an order based on the quotation. The customer requests a quotation and a quote is created referencing the inquiry. 156 © Copyright . An example of a document flow is as follows: A customer's telephone inquiry is recorded in the system.

Lesson: Creating Billing Documents

Figure 44: Document Flow

Continuing the example of document flow: After delivery of the goods, the customer claims credit for some damaged goods and you create a free-of-charge delivery with reference to the sales order. The entire chain of documents–the inquiry, the quotation, the sales order, the delivery, the invoice, and the subsequent free-of-charge delivery–creates a document flow, or history. The flow of data from one document to another reduces manual activity and makes problem resolution easier.

How to Create a Sales Order Billing Document and View the Document Flow How to create a sales order billing document and display the document flow. 1. From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> Billing -> Billing Document -> VF01 Create. 2. Create a billing document for the delivery created by the CATT. 3. Save your entries. The document is saved and the posting is performed. This is indicated by the message in the status bar.

Note: The sales order was created by the CATT. If you are using group number 00, user material document number 4900000296. Refer to the table in the exercise for additional numbers.

The display of document flow has changed to an ALV display with ECC (in case you have participants who have worked on a previous version already).

Note: You can also show the document flow from other documents (such as a delivery or billing document).

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Unit 4 Exercise 9
Create a Sales Order Billing Document

Business Example This exercise is modularized. The CATT created the goods issue numbers in the table to allow participants to complete the exercise. If you are delivering a regular ILT class, you may elect to have students use the goods issue number they created in the previous exercise. You are responsible for sales orders and have received an order from a customer. You must now create a sales order billing document. Create a Sales Order Billing Document 1. Using the information provided in the table, create a sales order billing document.

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© Copyright . All rights reserved.

Unit 4 Solution 9
Create a Sales Order Billing Document

Business Example This exercise is modularized. The CATT created the goods issue numbers in the table to allow participants to complete the exercise. If you are delivering a regular ILT class, you may elect to have students use the goods issue number they created in the previous exercise. You are responsible for sales orders and have received an order from a customer. You must now create a sales order billing document. Create a Sales Order Billing Document 1. Using the information provided in the table, create a sales order billing document. a) From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> Billing -> Billing Document . b) Choose Create .

c) Enter Your Material Document Number from the table provided. d) Choose Save . The document is saved and the posting is performed. This is indicated by the message in the status bar. e) Choose -> Exit to return to the SAP Easy Access screen.

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Unit 4: Logistics

LESSON SUMMARY You should now be able to: Create a sales order billing document

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Unit 4 Lesson 9
Using Customer Relationship Management
136

LESSON OVERVIEW In this lesson you will learn how to use SAP Customer Relationship Management. Explain that SAP CRM is acomponent used to provide additional functionality.

Business Example You are responsible for maintaining relationships with customers and must understand the capabilities of SAP Customer Relationship Management. For this reason you require the following knowledge: A good understanding of how SAP Customer Relationship Management makes customers the focus of business processes A good understanding of the capabilities of SAP Customer Relationship Management LESSON OBJECTIVES After completing this lesson, you will be able to: Use SAP Customer Relationship Management

Customer Focus
Explain that SAP CRM is an additional component used to provide additional functionality. Example: Nothing is more frustrating for a salesperson than not closing a deal because the necessary information was not available. A salesperson needs to know: What has the customer already purchased? How profitable is the customer? Can we deliver the required quantity? Nothing is more frustrating for customers than having to deal with a company that does not meet their needs. Only satisfied customers will return in the future. Customer Relationship Management has become a decisive success factor. The challenge for large companies is to promote a local store mentality throughout all departments and all employees. Refer participants to the service marketplace if they would like to view a demonstration.

Customer relationship management (CRM) is the concept of making the customer the focus of a company and its business processes. CRM must be implemented as the primary company philosophy, and the strategies it promotes have to be adopted within the company. The aim of all corporate activities must be to place customers at the center, and not view them as the means to an end.

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Customer relationship management includes the following phases: Approaching possible customers: Gaining the customer: Service: Keeping the customer: A customer is interested in the company and its products (first contact). . All rights reserved. 162 © Copyright . CRM is intended to create and build upon long-term relationships with customers during all phases of the business relationship. The software is only a tool used to support this philosophy. Employee turnover means that vital customer information is often lost. Specific and attentive customer support ensures that the customer is a satisfied and loyal customer. Traditional Knowledge Traditional direct sales is characterized by decentralized information about the customer. only one employee has knowledge about the customer and the relevant contact information. The company receives an order from the customer. The principles of customer relationship management must predominate at all levels of the company. The company ensures that the customer is satisfied with the product or service purchased.Unit 4: Logistics Figure 45: SAP Customer Relationship Management (SAP CRM) Make it clear that CRM is more then just using the right software: it is a business philosophy. In some cases.

the company can increase its service package. information within a company is incomplete or inaccurate. Knowledge with SAP CRM Figure 47: Knowledge with SAP CRM SAP CRM facilitates the sharing of information. As a result. various company departments interact with the customer. strengthen relationships. 163 . During the different phases of customer interaction. Capabilities of SAP Customer Relationship Management SAP CRM allows every employee who needs information about customer contacts to access all relevant information immediately. Field sales and field services enable sales representatives to access all contact information in the field using a laptop or other mobile device. © Copyright . This is reflected in the key capabilities of SAP CRM. and benefit from increased customer loyalty. Analyzing this information gives the company a deeper understanding of its customers.Lesson: Using Customer Relationship Management Figure 46: Traditional Knowledge Often. All rights reserved. process queries faster.

Define territories based on size. scalable customer transactions. incorporate customer agreements into ongoing customer processes. product lines. Account and contact management Activity management Opportunity management Quotation and order management Billing and contract management Incentive and commission management Service Service in SAP CRM offers consolidated. and track all critical information about customers. All rights reserved. and manage compensation plans. and monitor the sales process. and strategic accounts. partners. or the Internet. Assign sales representatives and identify prospects and products. geography. store. operational insight enabling unparalleled service and fulfillment appropriately matched to customer revenue potential. anywhere. Capture. such as field representatives. prospects. e-service. Service Solution Multichannel service Benefit Deliver customer service through preferred channels. and partners. . such as sales orders. monitor. Sales Solution Sales planning and forecasting Organizational and territory management Benefit Report on and analyze all sales planning and forecasting activities. Generate follow-up activities. It supplies organizations with enterprise sales. 164 © Copyright . Develop and manage long-term customer contracts. Track current performance and measure the potential compensation of sales representatives based on sales in the pipeline. revenue. and field service. It equips organizations with capabilities in the areas of customer service and support. and e-selling solutions to transact with customers anytime. telesales. Give your channels complete visibility into each sales opportunity so they can capture. Schedule and manage simple and complex tasks. manage. field sales. Configure. service operations management. price. and monitor business contacts and account information. Develop. implement. ensuring seamless.Unit 4: Logistics Sales Sales spans all customer sales channels. interaction centers. and create quotes for customers.

and operational and financial analytics. Plan long-term resource strategies and optimize short-term scheduling tactics. Resource planning and optimization Service operations management Service planning and forecasting One Face to the Customer The goal of CRM as a company philosophy is to “speak to the customer with one voice ”. Support single-tiered and multi-tiered service operations. Interaction Center. It covers all business tasks related to sales. and field applications. planned services. Establish service plans and forecasts that proactively maintain products for optimum performance and ensure the availability of resources. Connect the entire service process. All rights reserved. Schedule on-site service engagements and identify resource requirements based on product forecasts. as well as in the new business concepts of SAP CRM. service. and geographic product placements. and marketing using the Internet. SAP CRM incorporates both tasks and contact channels. 165 . Customers receive the same information no matter which channel of communication customers use to contact your company. This results in the SAP CRM solution matrix. SAP CRM includes the full integration of all tasks and channels of communication. from initial customer contact to final resolution and financial settlement. Communicate with Customers There are three basic channels of communication with the customer that are used in traditional sales and distribution.Lesson: Using Customer Relationship Management Service Solution Customer service and support Benefit Manage and fulfill commitments to customers and partners through efficient service planning and execution. All employees who have customer contact need to know about all previous customer contacts that took place using all channels of communication. service administration. © Copyright . including tactical and strategic service planning. transactional support.

e-service.Unit 4: Logistics Figure 48: Customer Interaction Channels Channels of communication with customers include the following: Field applications: Interaction Center: Field applications are used for traditional direct contact when the employee meets personally with and a customer. Orders can be entered through CRM Web Channel. The Interaction Center (IC) is a central communication hub for all telephone-based customer contact. and create orders. for example. Internet ecommerce: Areas in which the Internet is used to buy and sell products include the following: B2C B2B Business to consumer: Internet business directly with end customers Business to business: Internet business between two companies CRM Web Channel also supports other key capabilities of SAP CRM. Internet 166 © Copyright . All rights reserved. The Interaction Center can operate independently of the contact medium. fax. e-mail. . employees in different departments receive customer calls. The Interaction Center can also be used as a help desk resource. Integration Sales orders in SAP CRM can come from different sources. Sales employees can use field sales to create orders directly on their laptop or Personal Digital Assistant (PDA) and then send them to the SAP CRM system. or text messaging. which could be telephone. process inquiries. CRM Web Channel is used to buy and sell products with Internet connections (e-commerce). As in a traditional call center. Source of the Sales Order Telesales Sales Description of Activity The agent can use the Interaction Center to create orders directly in the CRM system. This results in a central processing point for all customer-related information.

Orders from all sources are ultimately executed in the SAP ERP system. All rights reserved. LESSON SUMMARY You should now be able to: Use SAP Customer Relationship Management © Copyright .Lesson: Using Customer Relationship Management Source of the Sales Order Direct Entry in SAP CRM Description of Activity Orders can be entered directly in SAP CRM. Business processes such as the shipment of goods and the billing are processed in the SAP ERP system. independent of the communication channel. FACILITATED DISCUSSION Ask participants for their business experiences that relate to the lesson material. 167 . The completion progress is transferred to the SAP CRM system in a status update.

this lesson was extensively changed.sap.0 a completely new PLM solution from SAP? I am an SAP PLM user now – do I have to migrate? Answer: The SAP PLM 7. For this reason you require the following knowledge: A basic understanding of how SAP Product Lifecycle Management supports procurement.sap..0 was also released.0 contains amongst others a new Web UI and architecture on top of the existing ECC 6.com/wiki/display/PLM Help. With Business Suite 7. Question: Where can I find more information on PLM 7. .sdn. All rights reserved.The life cycle of a product is characterized by strong intra- 168 © Copyright . Question: Is PLM 7.0 data objects Document. With Col. From a Customer FAQ regarding PLM 7.com -> SAP ERP -> SAP ERP Enhancement Packages -> SAP Enhancement Package 4 for SAP ERP 6. Additional products were the cProject Suite and RPM. it is perceived as a “new solution” but it is the same data objects in the background and no migration is required.0 and the PLM road map? Answer: PLM Wiki in SAP Developer Network: https://wiki. you will be able to: Outline the tasks associated with processes supporting product lifecycle management Product Lifecycle Management SAP Product Lifecycle Management (SAP PLM). Material BOM and Engineering Change Master.Unit 4 Lesson 10 Using Product Lifecycle Management 142 LESSON OVERVIEW This lesson outlines how SAP Product Lifecycle Management supports product development and innovation and integrated product and asset management.92. Due to the major change in the UI and leap in usability. You should make clear there is much more then the core processes and solutions. most PLM features were part of ERP in the ECC system.0 the PLM 7. PLM is very complex. production.enables management of the life cycle of a product using various processes. Material Master. In the previous Business Suite versions.0 is an add-on to ECC. Both UIs can typically be run in parallel as well. PLM 7.0 Business Example You are responsible for the management of market and customer demands and must be able to respond quickly to these demands. and sales order management A basic understanding of integration elements LESSON OBJECTIVES After completing this lesson.0.

such as SAP Supply Chain Management. Starting in product development. to address the following business drivers: Differentiation Shortening product life cycles Margin pressure Increasing regulations © Copyright . 169 . an integrated product development process goes far beyond the current methods used in product development. This enables other areas. also called endto-end scenarios. All rights reserved. Processes end artificially at system and departmental limits. the product data that is gathered is used for all subsequent processes. and service. Figure 49: SAP PLM The goal of SAP PLM is to support the entire product life cycle. to benefit from the data. The life cycle of a product includes product development.Lesson: Using Product Lifecycle Management company divisions and a heterogeneous system landscape. According to this principle. procurement. Product and Service Leadership Figure 50: Product and Service Leadership Many companies focus on a set of interdisciplinary business processes. SAP Business Suite enables customers and vendors to be equally involved in the extended process chains of product development.

Goals of these business drivers include the following: Continuous product Managing innovation includes corporate strategy. . for example. Gain competitive advantage by increasing customer satisfaction. environmental. To comply with these regulations. Benefits of SAP PLM include the following: Reduce costs through measures such as effective cost control in projects or by minimizing the maintenance costs. when the product design and structure are defined. 170 © Copyright .Unit 4: Logistics These business drivers typically cut across the value chain and span multiple departments and organizational units. This enables you to tailor your products to the needs of both customers and the marketplace. Increase productivity by pooling information and sharing it with your partners and customers. Product delivered as Many manufacturers of classical products make their product a service benefits available to customers through service agreements. manufacturing. and end-of-life phases of PLM. shipment. Achieve higher productivity by quickly introducing new products to the market. Integrated product development Integrated product development represents the core product definition and production ramp-up process. product innovation roadmapping. and validated. SAP PLM brings together numerous benefits that help your company keep ahead of the competition. or other aspects of the products are becoming more important. and a new product development and introduction (NPDI) process and market launch. feasibility assessment. companies must take them into account during design. tested. servicing. This changes the business model from “product ” to “solution provider. All rights reserved. idea and concept management. by involving your customers early in the development process. ” Embedded product compliance Regulations concerning safety.

Features and functions of PLM include the following: Feature / Function Program and project management Description Program and project management provides advanced capabilities to plan. Quality management provides integrated quality management for all industries throughout the entire product life cycle. bills of materials. covering all components of an enterprise asset management system. and related technical documentation throughout the product life cycle. All rights reserved. Lifecycle data management provides an environment for managing specifications. employing XML-based Web standards to communicate information such as project plans. Lifecycle collaboration supports collaborative engineering and project management. Lifecycle management Lifecycle collaboration Quality management Enterprise asset management © Copyright . manage.Lesson: Using Product Lifecycle Management Key Functional Areas of SAP PLM Figure 51: Key Functional Areas of SAP PLM SAP Product Lifecycle Management offers all the functionality you need for integrated product and asset management. project structures. and product structures across virtual development teams. 171 . routing and resource data. Enterprise asset management manages physical assets and equipment. documents. and control the complete product development process.

SAP PLM runs in the same system as SAP ERP and is directly connected to the logistic functions in SAP ERP. health. health. Product Lifecycle Management FACILITATED DISCUSSION Ask participants for their business experiences that relate to the lesson material. All rights reserved. and safety issues by enhancing business processes to comply with government regulations. and safety management Description Environment. SAP PLM is a complete solution. manufacture and deliver this product to the customer. SAP PLM is aimed at providers of complete solutions who develop a product for a specific customer.Unit 4: Logistics Feature / Function Environment. It covers the entire life cycle of a product. and then provide service activities for the customer once the product is live. LESSON SUMMARY You should now be able to: Outline the tasks associated with processes supporting product lifecycle management 172 © Copyright . Integration Elements Most of the functions of SAP PLM are also core functions of SAP ERP. health. . Additional functions are delivered through collaboration projects and SAP Portfolio and Project Management. and safety management provides a solution for environment.

All rights reserved. When you enter an invoice with reference to a purchase order. X X True False 4. invoice receipt C Sales order. invoice receipt. purchase order. sales order. purchase order.Unit 4 Learning Assessment 147 1. 173 . purchase order D Goods receipt. vendor master 2. Determine whether this statement is true or false. goods receipt. What is the basic procurement process in an SAP system? Choose the correct answers. X X True False 3. Which of the following is an operational procurement process within SAP SRM? Choose the correct answers. the system suggests data from the purchase order and the goods receipt. delivery B Purchase requisition. X X X X X A Design collaboration B Supply strategy development C Self-service procurement D Supplier registration E Spending analysis © Copyright . SAP SRM can only manage the direct procurement of goods and services. Determine whether this statement is true or false. X X X X A Inquiry. production order. purchase order.

Determine whether this statement is true or false. X X X X X X A Order components B Production dates C Production instructions D Order costs E All of the above F None of the above 8. X X X X X A Sales and Operations Planning B Delivery processing C Material requirements planning D Manufacturing execution E Master production scheduling 7. Which of the following processes (applications) are part of the production processes? Choose the correct answers. Which of the following pieces of information is available in the production order? Choose the correct answers. X X True False 6. It is impossible to create a catalog with SAP SRM.Unit 4: Learning Assessment 5. X X X X A Disaggregation B Confirmation C Material requirements planning D Costing 174 © Copyright . Choose the correct answers. All rights reserved. . Name the manufacturing execution process step that allows someone to enter the actual time and activities of the various operations during the production process.

goods issue. What three activities can be performed with a delivery document? Choose the correct answers. billing 12. delivery C Sales order. delivery. billing. X X X X A Picking. billing.Unit 4: Learning Assessment 9. X X X X X A Picking B Debit memo C Packing D Credit memo E Goods issue © Copyright . which includes Global Available-to-Promise. Order promising. X X X X A SAP NetWeaver and reporting B SAP Supplier Relationship Management and SAP Business Information Warehouse C SAP Customer Relationship Management and SAP Supply Chain Management D SAP Supply Chain Management and SAP NetWeaver 11. X X X X A Customer Relationship Management B Radio Frequency Identification (RFID) C Global Available-to-Promise D SAP ERP 10. picking. sales order. goods issue. picking. delivery. is the critical link between which two applications? Choose the correct answers. 175 . picking. Name one of the two main components of SAP Supply Chain Management. delivery B Sales order. Choose the correct answers. Which of the following is the correct sales order management process? Choose the correct answer. sales order. All rights reserved. billing D Goods issue. goods issue.

During the creation of the billing document. sales order. goods issue. goods issue. billing. billing. X X True False 14. goods issue. billing D Goods issue. picking. picking. delivery C Sales order. an accounting document is created in financial accounting. A billing document can be created from what two types of documents? Choose the correct answers. billing 15. delivery. picking. sales order. When you post goods issue on a delivery document. thus creating an accounts receivable entry. X X True False 176 © Copyright . All rights reserved. Which of the following is the correct sales order management process? Choose the correct answer. an accounting document is created in financial accounting. Determine whether this statement is true or false. . delivery. X X X X X A Inquiry B Sales order C Quotation D Rebate list E Delivery 16.Unit 4: Learning Assessment 13. X X X X A Picking. Determine whether this statement is true or false. delivery B Sales order.

X X X X X A SAP NetWeaver Business Information Warehouse B SAP Enterprise Portal C SAP ECC D All of the above E None of the above 18. Which of the following are key functional areas of SAP PLM? Choose the correct answers. X X True False 19.Unit 4: Learning Assessment 17. What SAP components are included in SAP CRM? Choose the correct answers. health. Determine whether this statement is true or false. Lifecycle data management can only be used when the design of a product is finished. 177 . and safety management C Quality management D Enterprise asset management E Development management © Copyright . All rights reserved. X X X X X A Lifecycle data management B Environment.

sales order. thereby eliminating the need to re-enter the data. What is the basic procurement process in an SAP system? Choose the correct answers. delivery B Purchase requisition. purchase order D Goods receipt. X X True False An advantage of entering an invoice with reference to a purchase order is that the system suggests this data. X X X X A Inquiry. goods receipt. Determine whether this statement is true or false. invoice receipt. vendor master In the SAP system. invoice receipt C Sales order. 2. purchase order. the standard flow of transactions in the basic procurement process is <MenuPath>Purchase requisition processing Purchase order processing Goods receipt entry Invoice receipt entry. . 3.Unit 4 Learning Assessment. X X True False 178 © Copyright . production order. All rights reserved. the system suggests data from the purchase order and the goods receipt. purchase order. Determine whether this statement is true or false. When you enter an invoice with reference to a purchase order. purchase order.Answers 152 1. SAP SRM can only manage the direct procurement of goods and services.

X X X X X A Sales and Operations Planning B Delivery processing C Material requirements planning D Manufacturing execution E Master production scheduling Delivery processing is part of the functionality of sales order management. X X True False 6. and manufacturing execution) are part of production. Determine whether this statement is true or false. 179 . It is impossible to create a catalog with SAP SRM. X X X X X A Design collaboration B Supply strategy development C Self-service procurement D Supplier registration E Spending analysis 5.Unit 4: Learning Assessment. All of the other processes listed (SOP. MPS. Which of the following is an operational procurement process within SAP SRM? Choose the correct answers. © Copyright . Which of the following processes (applications) are part of the production processes? Choose the correct answers. MRP. All rights reserved.Answers 4.

All rights reserved. X X X X A Disaggregation B Confirmation C Material requirements planning D Costing 9. Choose the correct answers. required resources. Which of the following pieces of information is available in the production order? Choose the correct answers. and costs. X X X X A Customer Relationship Management B Radio Frequency Identification (RFID) C Global Available-to-Promise D SAP ERP 180 © Copyright . which is the central data object in shop floor control and manufacturing execution. Name one of the two main components of SAP Supply Chain Management.Answers 7. material components. Name the manufacturing execution process step that allows someone to enter the actual time and activities of the various operations during the production process. X X X X X X A Order components B Production dates C Production instructions D Order costs E All of the above F None of the above The production order.Unit 4: Learning Assessment. 8. contains all data relevant to production objectives. Choose the correct answers. .

picking. sales order. delivery. billing D Goods issue. sales order. picking. delivery. 181 . you can pick. Order promising. picking. X X X X A Picking. Which of the following is the correct sales order management process? Choose the correct answer. pack. X X X X X A Picking B Debit memo C Packing D Credit memo E Goods issue From a delivery document. posting goods issue. billing. X X X X A SAP NetWeaver and reporting B SAP Supplier Relationship Management and SAP Business Information Warehouse C SAP Customer Relationship Management and SAP Supply Chain Management D SAP Supply Chain Management and SAP NetWeaver 11. All rights reserved. picking. goods issue.Answers 10. delivery C Sales order. and post goods issue. delivery B Sales order. The sales order must be created first. finally. which includes Global Available-to-Promise. goods issue. 12. What three activities can be performed with a delivery document? Choose the correct answers. goods issue. is the critical link between which two applications? Choose the correct answers. billing That is correct. © Copyright . and.Unit 4: Learning Assessment. followed by the delivery document. billing. billing.

16. Determine whether this statement is true or false. All rights reserved. an accounting document is created in financial accounting. picking. an accounting document is created in financial accounting. sales order. since no goods or services have been rendered. goods issue. it is automatically passed to financial accounting and the appropriate entries are made to the general ledger accounts. Determine whether this statement is true or false. picking. delivery. sales order. billing. goods issue.Unit 4: Learning Assessment. Which of the following is the correct sales order management process? Choose the correct answer. billing. A billing document can be created from what two types of documents? Choose the correct answers. X X True False As soon as the billing document is created. . picking. Inquiry and quotation documents and rebate lists in the standard system are not billable. 14. During the creation of the billing document. goods issue. 182 © Copyright . billing 15. delivery B Sales order. X X True False Posting goods issue in sales order management causes an accounting document to be created in financial accounting. X X X X A Picking. When you post goods issue on a delivery document. thus creating an accounts receivable entry. delivery C Sales order. X X X X X A Inquiry B Sales order C Quotation D Rebate list E Delivery A billing document can only be created from a sales order or delivery.Answers 13. This records the financial impact of goods leaving your premises. delivery. billing D Goods issue.

the planning and production phase. health. Lifecycle data management can only be used when the design of a product is finished. What SAP components are included in SAP CRM? Choose the correct answers. X X True False Lifecycle data management can manage the data during all phases of a material: the design phase. All rights reserved. 183 . X X X X X A Lifecycle data management B Environment. and safety management C Quality management D Enterprise asset management E Development management Development management is not a key functional area of SAP PLM. Which of the following are key functional areas of SAP PLM? Choose the correct answers. © Copyright .Answers 17.Unit 4: Learning Assessment. 19. X X X X X A SAP NetWeaver Business Information Warehouse B SAP Enterprise Portal C SAP ECC D All of the above E None of the above A through C are all components in SAP Customer Relationship Management. and the maintenance phase. 18. Determine whether this statement is true or false.

.Answers 184 © Copyright .Unit 4: Learning Assessment. All rights reserved.

185 . All rights reserved.UNIT 5 Financials Lesson 1 Viewing Financial Processes 186 Lesson 2 Outbound Payments 193 Lesson 3 Analyze General Ledger accounting Exercise 1: Create a Journal Entry 196 200 Lesson 4 Generating Financial Statements Exercise 2: Generate a Financial Statement 204 208 Lesson 5 Monitoring Internal Costs Exercise 3: Execute a Cost Center Report Exercise 4: Execute a Profitability Analysis Report 212 222 225 UNIT OBJECTIVES Outline the tasks associated with financial accounting Process an outbound payment Create a journal entry Generate financial statements Execute a cost center report Execute a standard cost estimate Execute a profitability analysis report © Copyright .

you require the following knowledge: A basic understanding of financial functions A good understanding of the tasks in financial accounting A basic understanding of integration points with other applications LESSON OBJECTIVES After completing this lesson. 186 © Copyright . financial reports that satisfy accounting and regulatory standards that vary by industry and by country. The SarbanesOxley Act of 2002 permanently raised the stakes. Just in case you are asked about this. FSCM helps reduce working capital and float. Note. you must produce accurate. All rights reserved. you must familiarize yourself with various accounting tasks and understand the integration points with other areas. and make more accurate cash forecasts. you will be able to: Outline the tasks associated with financial accounting Financial Accounting Accountants are really interested in the ability to process financial transactions.Financial Supply Chain Management has been removed. . timely. Your consolidation and reporting processes must be executed quickly and efficiently. FSCM offers a comprehensive treasury and Corporate Finance Management solution for companies from various industries. You are now responsible for enforcing standards for internal controls and governance to ensure transparency of your company’s accounting practices. Business Example As a new member of the finance department. improve billing and payment processes. It enables companies to manage financial resources and to analyze and optimize business processes. To meet these expectations. As a financial professional.Unit 5 Lesson 1 Viewing Financial Processes 160 LESSON OVERVIEW This lesson explains the tasks in financial accounting and how they are integrated with other areas.

Benefits to ensure compliance include the following: © Copyright .Lesson: Viewing Financial Processes Figure 52: Financial Excellence SAP Enterprise Resource Planning SAP ERP Financials. which is part of the SAP ERP application. SAP ERP Financials provides benefits to ensure compliance and better predict business performance. All rights reserved. combines core accounting and financial reporting capabilities with various financial functions. 187 . Financial functions include the following: Financial Supply Chain Management Treasury management Performance management Compliance management Figure 53: Accounting Architecture SAP ERP Financials simultaneously supports global financial reporting standards and multiple currencies with more than 45 country-specific versions. The solution powers the highestperforming finance organizations in the world.

languages. Enterprise Performance Management includes: BPC Business Planning & Consolidation SSM SAP Strategy Management PCM Profitability & Cost Management FIM Financial Information Management FC Financial Consolidation. including cost and profit centers. Integrate risk and treasury transactions with core accounting and financial reporting processes. and charts of accounts. automate many tasks. the system reduces quantity values in inventory and simultaneously subtracts monetary values for inventory accounts in the balance sheet. and establish inhouse banks or payment centers. All rights reserved. Automates dispute. Report. Financial Accounting Details Company-wide control and integration of financial information is essential to strategic decision making. . The strategy should determine the company processes. and collections management. and improved administration of internal controls. Achieve faster closes Improve corporate governance and transparency Shorten days sales outstanding Optimize global cash management Improve financial and managerial reporting Improve process integration between finance and treasury Make finance costs more competitive Enterprise Performance Management is a key functional area of the SAP Financials solution that supports the strategic management processes in a company at all relevant levels. developing a suitable business plan. currencies. and offers electronic invoicing and payment capabilities. Innovate processes. Examples of these strategies include defining financial targets. and monitoring costs and revenue during execution. Provides the flexibility to report performance by multiple types of business units and/or organizational structures. SAP ERP Financials gives you the ability to centrally track financial accounting data within an international framework of multiple companies. when raw materials move from inventory to manufacturing. collaborate with supply chain partners. analyze. credit. Streamline day-to-day and period-end business processes. 188 © Copyright . Provides broader support for accounting standards and federal regulations. It is supported by the Business Intelligence Platform (BW & SAP BusinessObjects). and allocate cash in real time.Unit 5: Financials Improve corporate performance Provides the ability to quickly respond to changing business conditions with effective business strategies. For example. and establish global shared-service operations. and improve communication and collaboration.

Explain that they have a reconciliation account attached to their master data.The document is either in both or neither. Tasks in Financial Accounting Draw the following picture Figure I-3: Financial Accounting To your diagram. 189 . add in a customer in A/R. vendor in A/P and fixed asset in A/A. It also fulfills the local legal requirements of many countries and fully reflects the legal and accounting changes resulting from market and currency unification.Lesson: Viewing Financial Processes Figure 54: Financial Accounting The financial accounting function complies with international accounting standards. Travel Management: optimize entire travel processes. This is a key point for accountants – Real time update – not two documents. They cannot be out of balance. such as US GAAP and IAS. All rights reserved. Draw the reconciliation accounts in the G/L and link the two together. records all business transactions Accounts Payable: records and manages vendor accounting data. © Copyright . The same document updates the sub-ledger and the G/L. from the initial request to the payment of travel expenses. General Ledger: external accounting and accounts.

Accounts payable accounting (A/P) records all business transactions related to suppliers. and Asset Accounting. Bank accounting supports the booking of cash flows. Asset Accounting (AA) records all business transactions that have to do with asset management. Figure 55: General Ledger and Sub-ledger Financial accounting focuses on the general ledger (G/L). The chart of accounts contains structured definitions of all G/L accounts in the general ledger. the processing of receivables and payables. Special Ledger: develop your own accounting ledgers separate from the general ledger. . For many companies. but also for other valuation guidelines such as IAS or US GAAP. valuation areas are established in the G/L accounts Accounts payable Accounts receivable Asset Accounting Accounting standards 190 © Copyright . Financial accounting includes the following: General ledger The general ledger contains a recording of all accounting-relevant business transactions on G/L accounts from a business point of view. Accounts Receivable: records and manages customer accounting data. Accounts receivable (A/R) records all business transactions that have to do with customer relationships. It is managed at the company code level. Accounts receivable receives much of its data from sales order management.Unit 5: Financials Asset Accounting: maintains and analyzes fixed assets according to generally accepted rules in the company's country. These will continue to be available with the New General Ledger although the need for them should be greatly reduced. it may be necessary to prepare a balance sheet not only for national accounting standards. All rights reserved. Important tasks of financial accounting include recording monetary and value flows and evaluating inventories. Accounts payable receives much of its data from procurement. To be able to carry out these different valuation approaches.

The following demo would work for the AR document too. 1. From the SAP Easy Access screen. Execute the transaction . You can show any of the transactions that participants posted in an earlier unit. using consolidation groups and units for consolidation tasks. choose Environment -> Document Environment -> Original Document . These ledgers are used in different balance sheet and profit-and-loss structures. re-execute for a previous year. ROHRER## 1000 . parallel ledgers. From the SAP Easy Access screen. How to View the Integration Process How to show the integration between financial accounting and sales anddistribution. choose Accounting -> Financial Accounting -> General Ledger -> Account -> DisplayBalances (new) or use transaction FAGLB03. Ignore any message about migration. Choose any of the other layouts. you can show document flow. Choose the Document Overview icon to show whole document . 9. Double-click the document to show the details. choose Accounting -> Financial Accounting -> Accounts Receivable -> Account -> FBL5N: Display Change Line items. if there are no transactions in the current year. From the SAP Easy Access screen. 6. Use Account 800000/Company Code 1000/ Fiscal Year = Current Year and Ledger OL . 4. 191 . Demonstrate the integration between financial accounting and materials management 12. Use Vendor 1000 and Company Code 1000. These parallel accounting standards can be realized with SAP ERP Financials by handling the different valuations on different. Drill down from the balance display to the line items by double-clicking in one of the cells. Customer Company Code 2. 11. © Copyright . choose Accounting -> Financial Accounting -> Accounts Payable -> Account -> Display Change Line items or use transaction FBL1N. Show the Change Layout function 3. 8. Demonstration continued: Show the Information on a G/L account 7. This takes you to the billing document.from here. All rights reserved. 10. SAP Consolidation SAP Consolidation forms the group structure. 5. From the SAP Easy Access screen. Execute the Display . 13.Show the invoice again.Lesson: Viewing Financial Processes SAP ERP system. For the next demo.

All rights reserved. 16. You can see all the logistics documents attached . . Open up all the arrow heads.Unit 5: Financials 14. 15. 17. highlight it and choose the magnifying glass . Choose Environment -> Document Environment -> Relationship browser . LESSON SUMMARY You should now be able to: Outline the tasks associated with financial accounting 192 © Copyright . Drill down into the document by double clicking. To display one.

193 .Unit 5 Lesson 2 Outbound Payments 165 LESSON OVERVIEW This lesson shows you how to process a payment to a vendor. Examples of business-related processes include: Purchase to pay (procurement) Plan to product (process from the planning to the internal added value) Order to cash (sales) The costs and services quantity flows that are necessary for efficient accounting are displayed for the different accounting components. One essential business process is the purchase of goods (purchase to pay). The unit provides an introduction to the payment processing section of financial accounting. it is necessary to differentiate external and internal quantity and value flows. For this reason. Business Example You are responsible for processing vendor invoices and must be able to process outbound payments. © Copyright . you require the following knowledge: A basic understanding of the purchase-to-pay process A good understanding of the invoice verification process LESSON OBJECTIVES After completing this lesson. All rights reserved. you will be able to: Process an outbound payment Process an Outbound Payment When using business-related processes.

The vendor invoice is posted and. 3. data such as supplier. a document is created in financial accounting to post the evaluated goods to the material stock account or the consumption account (debit) and to a goods receipt/invoice receipt account (credit). and vice versa. 2. the quantity of goods received against the order quantity. among other things. the vendor's invoice is checked for correctness. These purchasing processes are handled as part of logistics in the SAP system. All rights reserved. at the same time. A material document is created to update the stock. 194 © Copyright . a document is created in financial accounting. Order requirement: During purchase order handling. the system checks. At the same time. No postings are made at this point in financial accounting. for example. 5. the payment methods and the bank settlement.Unit 5: Financials Figure 56: Purchase-to-Pay Process Overview The purchase-to-pay process includes the following steps: 1. Order: The order is placed. 4. material. plant. The goods receipt/invoice receipt (GR/IR) account is used to make sure that a goods receipt is executed for every invoice. This document posts the invoice amount to the goods receipt/invoice receipt account (debit) and the vendor account (credit). and other data relevant to the purchasing organization must be provided by the user. It is here that decisions are made about the payment process. Goods receipt: When goods are received. Payment processing: Payment processing usually takes place in financial accounting. Bill check During invoice verification. .

it debits the GRIR account thus cancelling out the goods receipt and credits the vendor account in accounts payable. From the balance sheet. This way the cost is included in the correct place in the accounts and we have an accrual for the outstanding amount to be invoiced in the GRIR. When the invoice is received. The posting into the GRIR is the invoice quantity multiplied by the purchase order price. the procurement into the warehouse is a material stock increase bound to a bank account reduction. returns and credit notes. The goods receipt debits the expense or stock account and credits the GRIR Account. there is no update in Financial Accounting. This means that even if month end happens at this point there is no additional accounting to be done. The only imbalance that the GRIR should show is if the quantities between goods receipt and invoice disagree. the GR/IR clearing account and the bank clearing account are balanced again. If this is the case. The first transaction that touches FI is the goods receipt.additional goods receipts. After several sequential postings in the purchase-to-pay process. (Don’t forget Debit is on the left and Credit is on the right!) When the Purchase Order is created. The value used for this is the purchase order cost multiplied by the goods receipt quantity.Lesson: Outbound Payments Purchase to Pay: Account View Figure 57: Purchase to Pay: Account View You can draw the different accounts during the demo to show the various postings. The built up liabilities are balanced by the payment. LESSON SUMMARY You should now be able to: Process an outbound payment © Copyright . 195 . then it will be rectified with subsequent postings . All rights reserved. The purchase order is just an order. Any difference between the purchase order and Invoice price follows the original expense/stock posting.

The balances in the classic general ledger accounting tables also continue to be updated for migration scenarios.0 onwards must use the New G/L. All rights reserved. These comparison reports are used to ensure that the New General Ledger Accounting delivers correct results. the classic General Ledger Accounting tables are deactivated. Existing customers upgrading from earlier versions can continue with the classic ledgers. the New General Ledger Accounting tables are updated in the standard system. For this reason. you require the following knowledge: A good understanding of the general ledger A good understanding of the journal entry creation process LESSON OBJECTIVES After completing this lesson. You must understand the characteristics of the general ledger and must be able to create and modify entries. Once the results are verified. you will be able to: Create a journal entry New General Ledger The New General Ledger function is turned on in our training system. Business Example You are responsible for the analysis of general ledger accounts and the creation of journal entries. This default setting enables you to use comparison reports during the implementation phase of New General Ledger Accounting. The unit provides an introduction to financial accounting and the new general ledger.Unit 5 Lesson 3 Analyze General Ledger accounting 168 LESSON OVERVIEW This lesson shows you how to create a journal entry. The New G/L is available from ECC 5. . 196 © Copyright . The New G/L accounting tables are FAGLFLEX and the tables for the Classic G/L Accounting are GLT0.0. A new exercise on creating a journal entry has been added to this lesson. When you activate New General Ledger Accounting. New customers from ECC 5.

is an extra piece of information that is stored in the general ledger.” If you post a document in finance. With the New General Ledger. in this example. Profit center. The “dimensions” that were previously represented by other components. Figure 59: General Ledger Accounting: New General Ledger There is just one data table.Lesson: Analyze General Ledger accounting Figure 58: General Ledger Accounting Advantages of the New General Ledger Each area in the general ledger is a current application in financials. profit center. Each area has its own data tables and its own “ledgers. All rights reserved. it is replicated in the other areas. New General Ledger Accounting meets extensibility and international accounting standards. Options to expand standard accounting functions are supported in the New General Ledger Accounting for both international and industry-specific needs. for example. Advantages of using New General Ledger Accounting are as follows: Management and segment reporting are enhanced. 197 . the structure changes. now become fields in the New General Ledger. New General Ledger Accounting supports international requirements with the integration of a management © Copyright .

How to Create a Journal Entry 1. enter company code 1000. From the SAP Easy Access screen. profit centers. Total Cost of Ownership (TCO) reduction Using New General Ledger Accounting reduces data redundancy and implementation costs. New General Ledger Accounting makes it possible to manage multiple books within the general ledger. This unification eliminates inconsistencies and reconciliation processes. Fast Close Activating the new general ledger accounting allows for the unification of financial and management accounting. a. This feature helps you meet legal requirements. If a Company Code dialog box appears. choose Accounting -> Financial Accounting -> General Ledger -> Document Entry -> Enter G/L Account Document. and business areas. . Create a journal entry.) This avoids the necessity of setting up additional special ledgers. 198 © Copyright . allowing legal and management data to reside in one uniform database. This is how the document appears in the subledger of accounts payable or accounts receivable. Document Splitting Document splitting means that dimensions are allocated to the document as you go along. Legal Requirements and Compliance This area of the new general ledger accounting covers the ever-increasing need to meet new legal requirements. All rights reserved. It also means that some industry solutions will be possible in the general ledger now. The general ledger view includes the splitting information. The real-time document split feature makes it possible to control balance sheet entries using segments. For example. rather than special ledgers. and support for simple cost accounting. you could only do this with the special ledger. Balanced Book by Any Dimension This area is essential to reporting balance sheets for segments. All company codes are assigned to the lead ledger. Parts of a finance document include the following: Entry view General ledger view The entry view has not changed.Unit 5: Financials dimension in the general ledger. Customers can also define their own standards and terminology. The general view is how the document appears only in the general ledger. Parallel Set of Books Parallel accounting is possible with the assignment of one lead ledger. if an invoice is expensed to two profit centers. The document structure has changed so that you have two parts to a finance document: the entry view and the general ledger view. Management accounting is also integrated in the lead ledger. the vendor is allocated to the two profit centers as well. 2. (Prior to the new G/L. New fields can be added to the general ledger coding block. Data is posted in real time from financial to management accounting.

Post the document: a. Enter today's date. Profit Center 1000. a. Enter the following information for Line Item 2: G/L account 100000. you can display the document by navigating as follows from the SAP Easy Access screen: Accounting -> Financial Accounting -> General Ledger -> Document -> Display. 5. d. choose the Tree On button. Document Date a. Enter today's date. Continue a. From the posting screen. Alternatively. choose Document -> Display Document. © Copyright . Credit: EUR 5000. Enter line item entries. Choose the Tree Off button. Debit: EUR 5000. b. Enter the following information for Line Item 1: G/L account 113100. Continue by choosing Enter. b. 199 . 6. Under Screen Variants for Items. Posting Date a. 9. Profit Center 1000. Enter short text a. 8.Lesson: Analyze General Ledger accounting 3. 4. If screen variants are not displayed. Increase in capital ## (## = your group number assigned by the instructor) 7. 10. c. double-click the ZPROFITCENTER screen variant. All rights reserved. Open the Screen Variants for Items folder.

Post the document. .Unit 5 Exercise 1 Create a Journal Entry Business Example You are responsible for reviewing general ledger entries and processing entries as required.000 to general ledger accounts 1131000 (credit) and 100000 (debit) under profit center 1000. You must create a journal entry to post EUR 5. Enter the reason for the journal entry. Line Item 1: Field Name G/L Account D/C Amount in Doc. Enter the information for Line Item 1. Enter the information for Line Item 2 from the table provided. as shown in the table. Profit Center Field Value 113100 Debit 5000 1000 1. Enter the document date 4. 200 © Copyright . 2. curr. enter company code 1000. 3. 7. 8. Create a journal entry to post EUR 5. Enter the line item entries as shown in the table above.000 to credit general ledger account 113100 and debit general ledger account 100000 using profit center 1000. Enter the posting date 5. All rights reserved. 9. Profit Center Field Value 113100 Credit 5000 1000 Line Item 2: Field Name G/L Account D/C Amount in doc. If a Company Code dialog box appears. curr. 6.

Create a journal entry to post EUR 5. Profit Center Field Value 113100 Credit 5000 1000 Line Item 2: Field Name G/L Account D/C Amount in doc. Enter the reason for the journal entry. a) Enter company code 1000. Profit Center Field Value 113100 Debit 5000 1000 1. Enter the posting date a) Enter today's date. choose the Tree On button. Enter the line item entries as shown in the table above. a) From the SAP Easy Access screen.000 to credit general ledger account 113100 and debit general ledger account 100000 using profit center 1000. enter company code 1000.000 to general ledger accounts 1131000 (credit) and 100000 (debit) under profit center 1000. choose Accounting -> Financial Accounting -> General Ledger -> Document Entry -> Enter G/L Account Document. All rights reserved. 5. b) Continue by choosing Enter. a) If screen variants are not displayed. If a Company Code dialog box appears. 201 . b) Open the Screen Variants for Items folder. curr. 4. a) Increase in capital ## (## = your group number assigned by the instructor) 6. Enter the document date a) Enter today's date.Unit 5 Solution 1 Create a Journal Entry Business Example You are responsible for reviewing general ledger entries and processing entries as required. © Copyright . You must create a journal entry to post EUR 5. 3. Line Item 1: Field Name G/L Account D/C Amount in Doc. curr. 2.

7. d) Choose the Tree Off button. b) Alternatively. double-click the ZPROFITCENTER screen variant. All rights reserved. Debit: EUR 5000. you can display the document by navigating as follows from the SAP Easy Access screen: Accounting -> Financial Accounting -> General Ledger -> Document -> Display. a) Enter G/L Account 10000. a) Enter G/L Account 113100. Credit: EUR 5000. a) From the posting screen. 8. . Profit Center 1000. Enter the information for Line Item 2 from the table provided.c) Under Screen Variants for Items. as shown in the table. 9. 202 © Copyright . Post the document. choose Document -> Display Document. Profit Center 1000. Enter the information for Line Item 1.

All rights reserved. 203 .Lesson: Analyze General Ledger accounting LESSON SUMMARY You should now be able to: Create a journal entry © Copyright .

by general accounting standards. international comparability). These external reporting requirements. . Business Example You are responsible for producing financial statements and must be able to generate the documents in a timely manner. For this reason. or can be selected freely when there is a legal option. Examples of profit accounts that can be grouped are: 204 © Copyright . Examples of general accounting standard sources are US Generally Accepted Accounting Principles (US GAAP) or International Accounting Standards (IAS). Many structures are already predefined when your system is delivered. These balance sheet and profit-and-loss structures define exactly which accounts should appear in which balance sheet items. Financial reports that are required for external reporting purposes are created in financial accounting. Various balance sheet and profit-and-loss structures can be set up in the SAP ERP system for different reporting requirements. In this case. These reports must be adapted to your specific national requirements. Two procedures that can generally be used to structure the profit and loss statement are as follows: Period accounting Cost-of-sales accounting Both procedures result in the same operating income. are provided.Unit 5 Lesson 4 Generating Financial Statements 175 LESSON OVERVIEW This lesson shows you how to generate financial statements. as a rule. All rights reserved. Which procedure should be used is either stipulated by legal regulations. such as the different legal requirements of the relevant financial authorities. you will be able to: Generate financial statements Financial Statements The purpose of recording business transactions is to create balance sheet and profit and loss statement reports. you make a decision based on an analysis from a business point of view (for example. Period Accounting You produce the profit account by grouping the general ledger accounts together and subtotalling them. you require the following knowledge: A good understanding of financial statements A good understanding of financial reports required for external reporting purposes LESSON OBJECTIVES After completing this lesson.

These groupings are in addition to the groupings for the general ledger accounts. All rights reserved. auditors. as they are in period accounting.Lesson: Generating Financial Statements Revenues Stock movements Salary costs Travel costs Utility costs The total output of a period is set against the total costs for a period. shareholders. 205 . banks. Stock movements are ignored and. There are two standard reports: one Advanced Business Application Programming (ABAP) report and one drill-down report. Cost of Sales Accounting Cost-of-sales accounting includes grouping cost objects into functional areas. The total costs of the period are structured according to the individual expense type. The expenses are not structured according to expense types. but according to their business origin. instead. These are aimed at people external to the organization (for example. different accounts for personnel expenses). Functional area groupings could include the following: Sales and distribution costs Finance and administration costs Research and development costs The revenues of the period are determined in exactly the same way as in period accounting. The total output of a period is defined here as the sales revenue minus a decrease in the warehouse inventory. the cost of sales for the period shows the expenses that have been incurred for the realization of the revenue. or plus an increase in the warehouse inventory. Examples of period accounting business origins are as follows: Manufacturing Distribution Administration Research and development Production The goal of financial accounting is to produce financial statements. The standard way to produce financial statements in the system is to run a balance sheet and profit and loss statement. This structuring clarifies how the expenses are distributed to the different production factors. and the general public). © Copyright . This means the balances of similar expense accounts can be easily grouped (for example.

companycode.andcurrency. You can limit by account. 206 © Copyright . period from Report period until Comparison year Compar. Generate a financial statement. Field Name Currency Type Company Code Ledger FIS Annual Rep. You specify which financial statement version you are using and which fiscal year you want. business area.Unit 5: Financials Figure 60: Balance Sheet and Profit and Loss Statement How to Generate a Financial Statement 1. . a) From the SAP Easy Access screen.Struc Reporting year Rep. period until Output type Values 10 1000 0L (Leading Ledger) INT <Current Year> <Current month> <Current month> <Previous year> <Current month> <Current month> Graphical report-output The required steps are detailed in the task titled balance sheet and profit & loss statement. choose Accounting -> Financial Accounting -> General Ledger -> Information System -> General Ledger Reports (New) -> Financial Statement / Cash Flow -> General -> Actual/Actual Comparisons -> S_PL0_860000028 Financial Statement: Actual/Actual Comparison. period from Compar. All rights reserved.

If you don’t want this any more. 5. double-click the financial statement version in the navigation panel. Briefly explain the balance sheet and profit andloss statement. All rights reserved. profit center) to get a different view of the results. Now you see a split of the revenue by account number. 6. © Copyright . 7. Drag gross sales revenue to the profit center. Choose line items. Click once on 800000 then choose the Report button . double-click gross sales revenue in the navigation panel on the left. Open up the profit-and-loss and revenue folders in the hierarchy by clicking on the arrows. Drag gross sales revenue to account number. 8. 207 . 2.Lesson: Generating Financial Statements An alternative account number prints out the alternative account number instead of the operating chart of accounts. Double click FS Items to go back to the starting view. You see all the postings to the revenue account. Double-click any item on the navigation pane (for example. 3. You want to look at the detail behind account 800000. 4. To get back to the financial statement view. The sales revenue is now analyzed by profit center. This defaults back to the profit center view.

How much is the profit and loss statement? (Note: Revenue/ income is a negative number). Execute a standard report for the financial statement for company code 1000. 2. What business processes triggered the profit ? Answer:___________________________ 4. Use the drill-down report and financial statement version INT for the leading ledger 0L.Unit 5 Exercise 2 Generate a Financial Statement Business Example You are responsible for generating financial statements and have been asked to present these statements at a departmental meeting. Check whether the balance of assets and liabilities is equal. . 3. All rights reserved. You must now generate the statements. Generate a Financial Statement 1. 208 © Copyright . Compare the actual posting period of the current year with the same posting period of the previous year. In which profit center did the company achieve the highest revenues? Answer:_________________________ 6. Analyze the same revenues by business area. Which is the largest expense block in the profit and loss statement? Answer:_________________________ 5.

Use the drill-down report and financial statement version INT for the leading ledger 0L. Generate a Financial Statement 1. 209 . period until Output type Graphical report-output Selected INT 0L Leading Ledger (use the F4 help for selection) <Current year> <Current month> <Current month <Previous year <Current month> <Current month> 10 1000 Values © Copyright . Execute a standard report for the financial statement for company code 1000. period from Report period until Comparison year Compar. period from Compar.Struc Ledger Reporting year Rep. choose Accounting -> Financial Accounting -> General Ledger -> Information System -> General Ledger Reports (New) -> Financial Statement/Cash Flow -> General -> Actual/Actual Comparisons -> Financial Statement: Actual/Actual Comparison (transaction S_PLO_86000028) . Field Name General selection criteria Currency Type Company Code Report selections FIS Annual Rep. You must now generate the statements. b) Enter the following data.Unit 5 Solution 2 Generate a Financial Statement Business Example You are responsible for generating financial statements and have been asked to present these statements at a departmental meeting. a) From the SAP Easy Access screen. Compare the actual posting period of the current year with the same posting period of the previous year. All rights reserved.

4. staff. Open up the rows of the financial statement by clicking on the arrows. b) Choose Exit to exit to the SAP Easy Access screen. Analyze the same revenues by business area. The rest of the task steps are performed in the report. In which profit center did the company achieve the highest revenues? Answer:_________________________ a) Select the value for sales revenues and drag it to the profit center in the navigation area to check for the profit center with the highest value. What business processes triggered the profit ? Answer:___________________________ a) Expand the sub-tree for the profit and loss statement by choosing the arrow of the line you want to expand.gross sales revenues – domestic. c) Choose Execute to start the report. . drag it from the navigation area to the report (or right-click). 5. Hint: Do not exit the report. Which is the largest expense block in the profit and loss statement? Answer:_________________________ a) Check the positive value blocks (expenses) and determine if raw materials and consumables. if a high number of finished goods were delivered to stock (stock increase). Note: If you want to deselect a drill-down level. Check whether the balance of assets and liabilities is equal. All rights reserved. 3. a) Double-click on business area in the navigation panel.Hint: Leave all other selection fields blank. in front The profit should be mostly derived from the sales revenues . 2. a) The balance of assets (application of funds) and liabilities (source of funds) should be equal. How much is the profit and loss statement? (Note: Revenue/ income is a negative number). 6. 210 © Copyright . It could also be triggered from inventory change. or depreciation caused the highest costs.

211 .Lesson: Generating Financial Statements LESSON SUMMARY You should now be able to: Generate financial statements © Copyright . All rights reserved.

and cost reports. and users can easily obtain detailed information about cost structures and profit margins. profitability. The key point of interest for finance people is the reporting and integration rather than the processing. and cost reports. . SAP ERP enables the valuation and recording of financial datafor financial reportingand for internal management reporting purposes. Business Example You are responsible for management accounting and must be able to execute cost center. you will be able to: Execute a cost center report Execute a standard cost estimate Execute a profitability analysis report Management Accounting Many non-finance people will not want to perform the finance exercises. Financial data is tightly integrated with the business processes of SAP ERP logistics applications. you require the following knowledge: A good understanding of management accounting A good understanding of integration points A good understanding of Overhead Cost Controlling A good understanding of Product Cost Controlling A good understanding of profitability and sales accounting LESSON OBJECTIVES After completing this lesson. For this reason.Unit 5 Lesson 5 Monitoring Internal Costs 182 LESSON OVERVIEW This lesson shows you how to generate cost center. The exercises have been updated to process various reports. Management accounting contains all the functions necessary for effective cost and revenue controlling. Easy access to this data helps support and enable management to: Increase revenue Maximize customer profitability 212 © Copyright . All rights reserved. It covers all aspects of management controlling and includes many tools for compiling information for company management. profitability.

how much does it cost to process a purchase order as far as payment? Product Cost Controlling (specific external costs of production. This diagram suggests that PCA is still a separate module – it is not. All rights reserved. Profit centers are not technically part of CO and never have been . for example a Trade Fair) Processes (used in activity based costing to record the cost of a process. Basic Explanation of CO: CO is the Management Accounting view for internal management purposes. for example. flexibility and added functionality that we donot have in FI.for example. Figure 61: Areas in Management Accounting Be careful with this diagram. For expenses. 213 . This ensures that whenever we post to a G/L account with a Cost Element equivalent the transaction is relevant for CO and must have a CO cost Object on it (the place it is going in CO). we have a choice of where it could go: Overhead Cost Controlling is mainly just for costs (not revenues) Cost centers (areas of cost in the business for example. This system is a new G/L and with the advent of New G/L the old EC-PCA is no longer used instead we use Profit Centers in Financial Accounting. For G/L accounts that represent expenses and revenue we might want to analyze them further for internal purposes. CO is Profit and Loss only – there is no balance sheet.Lesson: Monitoring Internal Costs Reduce operating costs while increasing efficiency Reduce the cost of goods sold Improve inventory visibility Areas in Management Accounting Management accounting offers many tools that can be used to prepare operating data for business analysis. marketing) Internal orders (specific events that we want to capture costs.they can have balance sheet items. artwork) © Copyright . It providesmore detail. There can never be a balance sheet. To do this we create a cost element (the CO equivalent of a G/L account).

these act like big brother to internal orders This now poses a problem as the costs and revenues are spread out all over the place. you assign a specific profit center to every object for which costs and revenues are incurred in your system.Unit 5: Financials Production Orders Sales Orders Product Cost Collectors Project Systems. Overhead Cost Controlling allows you to analyze where overhead costs have been incurred. In this way. production orders get turned into either stock or work in process (WIP). the data is automatically transferred to profit center accounting. Product Cost Controlling is used to calculate and evaluate the production costs of a product. Management Accounting Details Details of management accounting include the following: Analyze profit Profitability analysis enables you to determine how successful the enterprise is in different market segments (product divisions. Later. When you use profit centers. The internal order is a flexible accounting tool that can be used in many different ways to document costs and. sometimes. Profit Center Accounting is not technically part of controlling within the system. the cost from that cost center can be passed on as overhead to a production cost center. as well as tracking and analyzing the actual costs. The cost center costs are mainly reallocated to production orders and any differences are what make up the variances. the actual data of the assigned objects is updated on the profit center. In New General Ledger Accouting. so that they come to zero. Cost Element Accounting answers the question of which costs have been incurred. 214 © Copyright . For example. in both plan and actual. or elsewhere in management accounting. revenues. (normally to cost centers eventually). We settle internal orders and WBS elements. it is part of financial accounting. There are various tools in CO that you can use to reallocate the costs between the cost objects. and its profitability over a period of time. however it is often used to provide management and financial information.You can also post to a WBS element if it is a cost for a particular project. an expense is posted to the general ledger. . When data is posted on an object to which a profit center is assigned. This expense is also posted as a cost to a cost center or other management accounting object for which the item was purchased. for example). From an accounting perspective. if a non-stock item is purchased. Cost Center Accounting is used to determine where costs are incurred in your organization. Analyze success of individual profit centers Control overhead costs and allocate costs Evaluate the costs of goods or services Classify costs and reconcile data Integration Data created in other SAP applications can have a direct influence on management accounting. Product Cost Controlling is concerned with all aspects of planning the cost of producing products or services. and the costs or revenues from the rendering of a service or the execution of a project. All rights reserved.

Cost centers can be grouped together to provide summary cost information. and provides cost totals at each node of the structure. Orders with revenues are used as cost objects so that costs and revenues can be tracked. a building or a warehouse. For example. An internal order is known as a temporary cost collector. You could do this with an internal order. 215 . and allocate them as far as possible according to their cause. Internal orders can be split into the following categories. but you would like to analyze the costs for a specific advertising campaign. for example. depending on their purpose: Overhead cost orders are used to monitor costs that are incurred for a specific purpose. you may have a cost center that holds all of your marketing costs. or for documenting costs. monitor. © Copyright . The standard hierarchy reflects the structure of all cost centers in the controlling area. result in the costs and sales revenues in management accounting. All rights reserved.Lesson: Monitoring Internal Costs Financial accounting is a primary data source for management accounting. Costs incurred can be assigned to individual cost centers. such as holding a trade fair. Thus. Most expense postings that relate to the general ledger result in a cost posting in management accounting. You can use internal orders to plan. such as maintenance and repair tasks. expense and revenue postings in financial accounting. revenues within a controlling area. Investment orders are used to monitor costs that are incurred for an asset under construction. These postings to the general ledger can be journal entries. in some cases. Cost centers can also perform activities for which we can plan quantities and calculate values so that they may be recharged. Internal orders can be used to track costs and. and allocate costs. for example. Cost Center Accounting is used to determine where costs are incurred in your organization. It analyzes costs for specific events and small projects that often exist below the level of a cost center or separately from cost centers. A fundamental requirement for implementing cost center accounting is the creation of a standard hierarchy for a controlling area. Figure 62: Integration Overhead Cost Controlling Overhead Cost Controlling allows you to collect and analyze costs that cannot be directly assigned to the production of goods and services. or they can be created by accounts payable postings or depreciation postings from Asset Accounting or other SAP ERP applications.

you get a separate document for that and the same for special purpose ledger.12 0 H100 OAS 216 © Copyright . From the FI document. choose Accounting -> Controlling -> Cost Center Accounting -> Information System -> Reports for Cost Center Accounting -> Plan/ Actual Comparisons -> S_ALR_87013611 : Cost Centers Actual/Plan Variance. 10. Value 1000 2006 1 .The list of documents is quite odd. Choose cost centers: Actual Line Items. This displays the CO entries that make up the posting. How to Execute a Cost Center Report Field Controlling Area Fiscal Year Periods Plan Version Cost Center Group Cost Element Group How to execute a cost center report. and since this is a teach system we have not switched off the old classic Profit Center Accounting (PCA). a separate controlling document was also created with its own number. All rights reserved. Here you can see that as well as the FI document. . 1. Enter the information from the table above. a) From the SAP Easy Access screen. 6.Unit 5: Financials Cost Center Accounting answers the question of where costs were incurred. so we still see PCA documents. Double-click the occupancy costs actual number. 9. we are not expecting to see a profit center document but we do here for two reasons: This was posted prior to the new G/L migration. 2. Open this to get to cost center 2100. choose Environment -> Document Environment -> Accounting Document. while ActivityBased Costing answers the question of why (for what purpose) costs were incurred. Scroll down the cost center nodes on the left to H1210 Administration. 3. Double-click any of the items. 4. 8. Since this is a new G/L system. If you use profit center accounting. 5. 7. The source document is displayed.

Cost Object Controlling focuses on simultaneous costing and period-end closing. variances and scrap. you can either enter the costing items manually with the unit costing tool or transfer them automatically from a non-SAP system using batch input. If a bill of material and routing are available in manufacturing planning and execution. It calculates the cost of goods manufactured (COGM) or cost of goods sold (COGS). Product Cost Controlling Details The approach of Product Cost Controlling is determined by the type of manufacturing process. If this information is not available. Manufacturing Process Product Cost Controlling Focus Engineer-to-order / Make-to-order Controlling the individual sales order Make-to-stock Repetitive manufacturing Controlling the individual production or process order Period-based controlling may replace the individual order Product Cost Controlling consists of the following components: Product Cost Planning is used to estimate the costs to produce goods or services. All rights reserved. and product cost settlement. Period-end closing activities include the calculation of work in progress. This information allows you to compare planned and actual costs for any phase of the production process.Lesson: Monitoring Internal Costs Product Cost Controlling Figure 63: Product Cost Controlling Product Cost Controlling helps you understand the costs incurred in the production of products and/or services. 217 . This information is broken down by each step of the production process using cost information about the products gathered automatically in other SAP applications. © Copyright . the system can automatically create a cost estimate based on this data. Actual production costs are accumulated alongside raw material consumption when completing the work.

sales andadministration Core Components Technical Specification (CCTS) are not included in cost of goods manufactured. internal orders. In addition to cost centers. You can maintain different costs for different purposes. The cost itemization is at the bottom right side of the screen. The total cost of the product is made up of: Material costs:Derived from the bill of material (BOM) Activities:Derived from the routing Additional overheads/process C=costs:Built into costing The costing structure shows the material costs. G (Overhead). Field Name Plant Material Number Costing Variant Values 1000 T-F1XX PPC1 Select the Calculator button . 2. and projects. . Scroll down to see all the costs. The costs incurred during production of a product or service are collected on cost objects.The I column (item category) shows you the type of cost: M (Material). 1. 218 © Copyright . the material ledger allows you to valuate materials using a variety of criteria. All rights reserved. You can include the other costs by selecting the Materials only/All items button. The required steps are detailed in the Product Cost Controlling exercise . From the SAP Easy Access screen. cross-country inventory movement. depending on your requirements. multiple levels of prices for inventory management. and P (Process). You can pull the screen around to look at more or less of a particular area. Several different types of cost objects are available. and transfer pricing. Briefly explain the cost estimate. E (Activity). Examples of this criteria are cost of material components. for example. but are included in cost of goods sold. choose Accounting -> Controlling -> Product Cost Controlling -> Product Cost Planning -> Information System -> Object List -> For Material -> S_P99:41000111 Analyze/Compare Material Cost Estimates .Unit 5: Financials Period-end closing calculates the value of goods still in production (work in process) and the variances between the cost estimate and the actual costs. Cost objects include the following: Sales orders Production orders Process orders Product cost collectors How to Execute a Standard Cost Estimate How to display a standard cost estimate.

Market segments are defined by characteristics such as product. You must specify which of the values that affect profitability are to be analyzed for this object. In comparison to financial accounting. An example of this is the component parts of the standard cost of materials. offering you different contribution margin calculations. It is meant as a sales and marketing tool. This allows you to analyze market segment profitability. product group. customer group. next to the cost of goods manufactured. All rights reserved. 219 . Profitability and Sales Accounting The two basic tools in core financials for analyzing profit are profitability analysis and profit centers. For most people CO-PA means costing based profitability analysis and it is updated by SD documents (the conditions) rather than accounting documents. or geographic area or region. product management. © Copyright . customer. the results presented here can also be subdivided into fixed and variable costs. This allows you to define fields that represent costs that exist below the level of the account. These value fields are the key figures. Figure 64: Profitability Analysis Profitability analysis provides a multidimensional reporting tool. Profitability analysis allows you to analyze profits and contribution margins for market segments. Thisresults in a This cost estimate is used for stock valuation and for putting planned costs on the production order. For example. Profitability analysis supports sales and distribution.Lesson: Monitoring Internal Costs Select the Cost Comps button different analysis of the costs. The market segments are defined by their characteristics so it is effectively a cube of information. This is where revenues and cost of sales go normally. for example. you can analyze the profitability of a certain product group sold to a certain customer (or a certain customer group). Red Widgets in the North vs Red Widgets in the South or Red Widgets vs Blue Widgets. and company-wide planning and decision making using an external view with a market-oriented perspective. which you can use to create reports that analyze data for any market segment and profitability measure.

3.) Drag and drop works like the previous drill-down report. Using profit center accounting. spread horizontally. Profit Center Accounting Profit Center Accounting allows you to analyze internal profits and losses for profit centers. Drag a product to a customer. for example. To remove a selection. Drag the actual value for the pumps division to the product on the left Now we have division 1 presented by product. This internal view of profitability allows you to measure the success of a specific profit center based on the profitability objectives of the respective area of responsibility. From the SAP Easy Access screen. . (Drag the split screens around to make it easier to read. 2. or products (product groups or categories). The new general ledger allows you to produce a full set of accounts per profit center. Select the report SAP01–001. you can assess the internal aspects of profitability. 220 © Copyright . That same analysis is presented vertically at the bottom of the screen. If an Operating concern dialog box is displayed. This enables the evaluation of different areas or units in your company using independent balance sheets and profit and loss statements. Briefly explain the report and the navigation (sizing areas). double-click it in the left hand pane Note: Many customers perform their profitability analysis reporting in BW. Field Name From Fiscal Year From Period To Period Version Graphical Report-output Values <Current Year> 1 <Current Period> 0 Mark The required steps are detailed in the Profitability Analysis in Management Accounting task. choose IDEA and select costing-based. not in the system. Profit centers can be structured according to regions (subsidiaries or plants). All rights reserved. Now we have the product split by customer.Unit 5: Financials How to Execute a Profitability Analysis Report 1. At the top right of the report is the analysis. Division 1. choose Accounting -> Controlling -> Profitability Analysis -> Information System -> KE30 Execute Report. functions (manufacturing or sales).

Enter the following parameters. From the SAP East Access screen. Execute the report .This is also correct and how it should be. it is possible to get a full balance sheet in profit center accounting. This is good. All rights reserved. the current year's calculated profit should be the same as the total on the profit and loss statement. It was not designed to give a full balance sheet – just the key items so that you could calculate key ratios. It is the inter-profit center balance with the other profit centers. Calculated profit in the liabilities section is the prior year'sprofit plus the current year's calculated profit on the financial statement usage. Field Currency Type Company Code Profit Center FIS Version Ledger Reporting Year Reporting Periods Comparison Year Comparison Periods Select graphical report output. With document splitting activated. profit centers move into the general ledger. some of these are supposed to balance to zero at the company code level but may not balance to zero at an individual profit center level. If you have any accountants that ask. In the new G/L environment. 221 . How to Execute a Profit Center Report 1. This is not what we see here. choose Financial Accounting -> General Ledger -> Information System -> General ledger reports (new) -> Financial Statement/Cashflow -> General -> Actual/Actual Comparisons -> Financial Statement Actual/Actual Comparison. so at a profit center level they should be displayed somewhere in the balance sheet. © Copyright . However. Without document splitting it is likely that there will be less of a balance sheet than was previously attainable.and they donot.Lesson: Monitoring Internal Costs There was a limitation to classic profit center accounting. as some accounts in the supplement section at the bottom are supposed to balance to zero. as this is what they are supposed to do. Value 10 1000 1500 INT 0L Current Year 1-12 Last Year 1-12 Explain the figures: assets = liabilities.

3. 4. 2. Execute a Cost Center Report Execute a cost center report and drill down to source documents. What type of document are you looking at.Unit 5 Exercise 3 Execute a Cost Center Report Business Example You are responsible for comparing actual costs incurred to those originally planned. Execute a cost center report showing actual and plan costs. Investigate the occupancy costs by looking at a source document. Navigate to the results for Cost Center Group H1200 and then Cost center 2100. and who posted it? 222 © Copyright . . All rights reserved. Use cost element group OAS. you must run a cost center report. plus a variance for cost center group H1000 in 2006. To facilitate your analysis. 1.

a) Select the H1200 Administrations and Financialsfolder in the Variation: Cost Center pane on the left-hand side of the screen.12 0 H1000 OAS . Use cost element group OAS. 4. which is inside the H1200 folder.cost column value forrow 470000 occupancy costs. Navigate to the results for Cost Center Group H1200 and then Cost center 2100. b) Double-click cost centers: Actual line items in the dialog box that opens. 1. 223 . Execute a Cost Center Report Execute a cost center report and drill down to source documents. 2.Unit 5 Solution 3 Execute a Cost Center Report Business Example You are responsible for comparing actual costs incurred to those originally planned. Investigate the occupancy costs by looking at a source document. choose Accounting -> Controlling -> Cost Center Accounting -> Information System -> Reports for Cost Center Accounting -> Plan/ Actual Comparisons -> Cost Centers: Plan/Actual/Variance (transaction code S_ALR_87013611) . plus a variance for cost center group H1000 in 2006. c) Double-click one of the documents to show the original financial accounting entry. Execute a cost center report showing actual and plan costs. © Copyright . b) Enter the information from the table. What type of document are you looking at. you must run a cost center report. a) From the SAP Easy Access screen. Field Controlling Area Fiscal Year Periods Plan Version Cost Center Group Cost Element Group c) Execute the report Value 1000 2006 1 . Here you see the CO documents that make up the total on the face of the report. All rights reserved. by choosing 3. To facilitate your analysis. Open folder H1210. a) Double-click the act. The values in the report area on the right will change. and who posted it? .

a) Choose the document header icon . 224 © Copyright . The document type is KR. All rights reserved. . The document was posted by user ID STEINER. a vendor invoice.

© Copyright . Exit the report. Analyze contribution margins I and II of one of the products listed. 2. 6. 225 . Execute the profitability analysis report SAP01-001. How are the different values of the contribution margin calculated? 4. What sales characteristics can you select to analyze a specific sales area? 3.Unit 5 Exercise 4 Execute a Profitability Analysis Report Business Example You are responsible for the sales department and must run profitability reports. All rights reserved. What is the main objective of contribution margins I and II? 5. Profitability Analysis Field Name From Fiscal Year From Period To Period Version Values Current Year 1 <Current Period> 0 1.

b) If a dialog box for operating concern is displayed. and select costingbased . mainly from the production area (fixed machine costs). Contribution margin I could be directly changed by make-or-buy decisions.Unit 5 Solution 4 Execute a Profitability Analysis Report Business Example You are responsible for the sales department and must run profitability reports. d) Choose Execute to start the report. 3. How are the different values of the contribution margin calculated? 4. This part of the costs of goods sold 226 © Copyright . choose IDEA. . b) Contribution margin II depends on the fixed costs. g) Choose Execute to start the report. which are mainly the raw material costs and the variable manufacturing and machine costs. depreciation. Execute the profitability analysis report SAP01-001. Customer. choose Accounting -> Controlling -> Profitability Analysis -> Information System -> Execute Report or use transaction KE30 . What is the main objective of contribution margins I and II? a) Check the lower part of the screen to see the contribution margin scheme. 2. Select them in turn by double-clicking on them in the navigation pane. c) Select report SAP01–001 . Contribution margin I is the difference of the net revenue after deductions and the variable costs. e) Enter the data shown in the table. for example. All rights reserved. in a relatively short time period. or Material Group. a) From the SAP Easy Access screen. What sales characteristics can you select to analyze a specific sales area? a) You can analyze by Division . Profitability Analysis Field Name From Fiscal Year From Period To Period Version Values Current Year 1 <Current Period> 0 1. Product . f) Select the Output type : Graphical report—output .

b) Position the cursor on your material number. © Copyright . Exit the report. double-click the characteristic value Product .cannot be changed in a short time period because in this case. 5. d) Choose Exit to exit the screen and return to the SAP Easy Access menu. long-term investments have to be changed. All rights reserved. 227 . a) Contribution margin II:_______________________ 6. a) In the navigation area. Analyze contribution margins I and II of one of the products listed. c) Double-click again and look for the required values on the detailed sheet at the bottom of the screen.

.Unit 5: Financials LESSON SUMMARY You should now be able to: Execute a cost center report Execute a standard cost estimate Execute a profitability analysis report 228 © Copyright . All rights reserved.

What is the primary source for management accounting? Choose the correct answers. X X X X A SAP Business Information Warehouse B SAP ERP Human Capital Management C Financial accounting D Procurement 3. X X True False 2.Unit 5 Learning Assessment 195 1. X X X X A SAP Business Information Warehouse B SAP ERP Human Capital Management C Financial accounting D Procurement © Copyright . What is the primary source of information for management accounting? Choose the correct answers. Determine whether this statement is true or false. 229 . All rights reserved. Only one accounting standard can be realized with SAP ERP Financials.

All rights reserved. Most expense postings that relate to the general ledger result in a cost posting in management accounting. What is the primary source of information for management accounting? Choose the correct answers. X X X X A SAP Business Information Warehouse B SAP ERP Human Capital Management C Financial accounting D Procurement Data created in other SAP applications can have a direct influence on management accounting.Unit 5 Learning Assessment. 230 © Copyright . 3. Determine whether this statement is true or false. 2. but financial accounting is a primary data source. but financial accounting is a primary data source. Most expense postings that relate to the general ledger result in a cost posting in management accounting. Only one accounting standard can be realized with SAP ERP Financials. X X True False You can realize parallel accounting standards with SAP ERP Financials. . X X X X A SAP Business Information Warehouse B SAP ERP Human Capital Management C Financial accounting D Procurement Data created in other SAP applications can have a direct influence on management accounting. What is the primary source for management accounting? Choose the correct answers.Answers 196 1.

All rights reserved.UNIT 6 Human Capital Management Lesson 1 Viewing Components of Human Capital Management Exercise 1: Hire an Employee 232 250 UNIT OBJECTIVES Identify the components of SAP ERP Human Capital Management Outline the organizational structures of SAP ERP Human Capital Management Maintain employee master data © Copyright . 231 .

Unit 6 Lesson 1
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LESSON OVERVIEW This lesson provides an overview of the functions of SAP ERP Human Capital Management. Business Example As a human resources administrator, you are responsible for human resources administrative functions and must be able to manage the organizational structure and employee master data. For this reason, you require the following knowledge: A good understanding of the organizational structure A good understanding of employee master data A basic understanding of e-recruitment processes A basic understanding of the performance management process A basic understanding of self-services LESSON OBJECTIVES After completing this lesson, you will be able to: Identify the components of SAP ERP Human Capital Management Outline the organizational structures of SAP ERP Human Capital Management Maintain employee master data

Components of SAP ERP Human Capital Management
To compete effectively, you need to align all corporate resources, including employees, with business objectives. With SAP ERP Human Capital Management (SAP ERP HCM), you can maximize the value of your employees and align employee skills, activities, and incentives with business objectives and strategies by using tools to manage, measure, and reward individual and team contributions. In this lesson, you will learn about the basics of SAP ERP Human Capital Management by examining processes in human resources. There are defined interfaces throughout the system to connect an SAP system to other systems for specific data exchanges, for example, to integrate time recording terminals into the HCM solution.The next figure illustrates integration. Organizational management is controlled through the use of relationships between the various objects. The most common objects in organizational management are persons, organizational units, positions, cost centers and jobs.

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SAP E-Recruiting facilitates finding qualified applicants using efficient, streamlined processes. At the end of the recruitment process, the successful candidate is hired into a position within the organizational plan of the company. Personnel Administration includes the management of employees within an organization. This includes maintaining specific pieces of information on each employee. Information is grouped according to the type of information (for example, bank details, address, personal information, benefits, pay, time, etc.) and is stored on infotypes. Personnel Development includes the development of employee skills and providing additional education and training. Personnel development may also include succession planning and career development. Training and Event Management allows an organization to offer a range of courses (for example, first aid, safety, leadership skills, etc). Employees may attend these courses as part of a succession plan, their own career development choices or perhaps as a result of a performance review where a skill deficiency has been identified. Once an employee successfully completes a course, his/her profile is automatically updated in personnel development. Time management allows the tracking of individual time elements for employees. Some employees may be required to record all of their time (positive time recording) and other employees may only be required to enter exceptions to their normal working time (negative time recording). SAP offers a wide range of functionality to allow customers to manage, track and report on employee time elements. Performance management includes the appraisal cycle for employees. Once an appraisal has been completed and specific development concerns identified, the employee may be enrolled in the specific course which would provide the missing requirement. In addition to individual employee performance ratings, performance management may also include objectives related to the overall performance of the organization. The overall performance rating of each employee may be passed on to compensation management and be included in, for example, a merit or bonus payout calculation. Payroll includes the processing of pay in a timely and efficient manner utilizing information found on various employee infotypes. Personnel Cost Planning allows planners within an organization to determine which cost elements (for example: salary, overtime, employer cost of benefits, etc.) should be included in cost planning activities for the next planning period. Once a cost plan is approved, the detail can be integrated into finance and used, for example, to set up new budgets.

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Figure 65: SAP ERP Human Capital Management

Human Capital Management Processes SAP ERP Human Capital Management includes the following processes and functions: Organizational Management Includes management of the organizational and personnel structures Talent Management SAP E-Recruiting Includes the management of employees for their entire time with the company Facilitates the management of vacant positions and hiring processes to find the best-qualified talent to fill those positions Includes the development of employee skills Offers training events to enable employees to develop their skills and bridge any gaps between position requirements and their abilities Facilitates empowering employees to maintain their own data Facilitates planning activities for budget generation Iincludes the tracking of employee time (attendances and absences) Includes the payment of employees for work done and participation in benefit programs

Personnel Development Training and Event Management Manager Self-Service and Employee Self-Service Personnel Cost Planning Time Management Payroll and benefits

Human capital management (HCM) is a company-wide strategy and is not only confined to HCM processes and functions. Your company profits from a large value-added potential and the company's bottom line can be improved.

Organizational Structure
The structures of an enterprise are subdivided into organizational structures, based on an organizational plan, and administrative structures, based on the enterprise and personnel structures. An organizational plan provides a model of the structural and personnel environment of your enterprise. Hierarchies and reporting structures are clearly laid out. The organizational plan is the foundation of Organizational Management and uses elements called objects. The most important objects for the organizational plan are organizational units, jobs, and positions.

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The enterprise and personnel structures subdivide organizations and employees according to factors relevant to time management and payroll. The answers to the questions in the following slide will aid in the creation of the organizational structure elements required to set up an organization within HCM.

Figure 66: Employees

The SAP ERP HCM system enables you to set up organizational hierarchies and employee relationships, and administer employee data in the system. Employees are linked to the organizational structure by the position they hold and the placement of that position within the structure. Reporting facilitates the evaluation of employee data from all enterprisespecific organizational aspects.

The Organizational Plan
Discuss how the organizational plan is typically a representation of an organization's department structure. An organizational plan includes organizational units and positions. The employees of an organization are assigned to positions within the organizational plan. Ask the class for examples relative to their organizations. Organizational structures in HCM and organizational units as discussed in the “System Wide Concepts ” unit have one big difference: Most of the HCM organizational structures are not maintained in customizing, they are real master data. Most organizational units in logistics or in financials are customizing objects. You may want to consider drawing a quick org chart on the board. This usually helps students with the concept of the structure. Draw a chief org unit (ie: Office of CEO) and a couple of additional org units linked with two way arrows which represent the relationship between the objects (ie: HR and Finance). Below the HR org unit, draw two additional org units linked by two way arrows and call them Payroll and Recruiting. Below the payroll org unit draw another box and indicate this is a position linked to the org unit payroll. Finally draw one last box and indicate this is the person who holds that specific position in the payroll org unit. A structure such as this one is what customers must clearly depict in the SAP system. The organizational structure is of importance, not only for HCM, but other functionalities such as workflow.

You use Organizational Management to quickly and effectively map your organizational and reporting structures with the relevant organizational objects. You create an organizational

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plan, which is a comprehensive and dynamic model of the structural and personnel environment in your enterprise.

Figure 67: Organizational, Enterprise, and Personnel Structure

Employees are assigned to the organizational, enterprise, and personnel structures on infotype 0001, Organizational Assignment. When you enter data on this infotype, the employee is assigned to a company code, a personnel area, a position, and a payroll area. This results in the employee's assignment to an organizational unit, a job, and a cost center. Information on the organizational assignment of employees is very important for authorization checks and for time management and payroll accounting. This assignment is often used to provide administrators access to employee information for the completion of time and payroll activities. Key Objects Used in Organizational Management The following are some of the key objects used in Organizational Management: Organizational units Organizational units describe the various business units in your organization. Organizational units could be the departments in your company. Several organizational units, along with their relationships, make up the organizational structure. Organizational units can be divided according to functional or regional criteria, for example. Jobs are general descriptions of tasks and requirements. Jobs are used to define positions. An example of a job is "Manager." Positions represent the distribution of tasks among individual employees. Positions are occupied by persons. A position inherits the tasks and requirements of the job from which it was defined. A position can also be assigned additional tasks that have to be carried out only by this one position. An example of a position based on the "Manager" job is "Human Resources Manager." Persons occupy positions within the organizational structure and represent the employees in your organization. Employee data is maintained in Personnel Management. The assignment of employees to positions is usually part of the hiring or transfer process, which is handled in Personnel Administration.

Jobs Positions

Persons

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corrected. or for the entire corporate group. the local currency. © Copyright . Personnel subareas allow for the further grouping of employees. All rights reserved. The company code is defined in accounting. This is typically used in payroll and time management. Infotypes have a text description and a four digit unique identifier (for example. 237 . the Organizational Assignment infotype has the number 0001). and tax reporting requirements.Lesson: Viewing Components of Human Capital Management Enterprise Structure Figure 68: Enterprise Structure: Example The enterprise structure for personnel administration is determined by the following elements: Client: Company code: A client can be valid for a company code at the smallest level. copied. independent accounting unit representing the central organizational element of finance. Each personnel area must be assigned to a company code. The company code represents the national tax law view of the company. Personnel area: Personnel subarea: Employee Master Data Employee data is stored in SAP ERP HCM as infotype records. Employee data can be displayed. The personnel area is used exclusively in personnel administration and is unique within a client. and deleted. The company code is a legal.

For example. including: Single-screen maintenance (one infotype for one person at a time) Personnel actions (a sequence of infotypes for one person) Fast entry (one infotype for multiple persons) Personnel Actions An action is one way to help ensure data completeness. When a hiring action is executed. and payroll. 238 © Copyright . you have to enter informationsuch as master data (name. whether or not the employee must clock in/out. shifts. This allows for a scenario where the person entering the data is missing a piece of information. . address. when you hire an employee. Examples of these infotypes are taxes and benefits. however an infotype presented during an action may be skipped. the required infotypes are presented to the user one after the other in a specific sequence. country-specific infotypes are also included in a typical hiring action. and so on). Personnel Actions Personnel actions facilitate the maintenance of several infotypes for an employee in a specific order.Unit 6: Human Capital Management Figure 69: Infotypes You can maintain infotypes in various ways. The missing information can be added at a later time. The following is a list of some of the infotypes created when you hire an employee: Organizational Assignment Infotype 0001 Personal Data Infotype 0002 Address Infotype 0006 Planned Working Time Infotype 0007 Basic Pay Infotype 0008 Bank Details Infotype 0009 In addition to the information contained on these infotypes. All rights reserved. This person could skip the infotype and continue with the execution of the action. benefits. and so on). data that is relevant for time management (working hours.

upon saving. maternity leave. If you do not have all of the employee's required information when carrying out an action.Lesson: Viewing Components of Human Capital Management This is an example of a personnel action configured for the hiring of an employee. termination. Examples of personnel actions are: hire. The most important concepts in the Management of Global Employees are as follows: Each employee can have multiple personnel assignments. Global Employees Management of Global Employees includes maintaining data for employees who may be temporarily assigned to positions in other countries.0 HCM. 239 . A global employee can complete one or multiple global assignments for his or her global company. personnel transfer. The Global Employment Model in SAP ERP 6. etc. are stored as part of the employees master data record. Infotypes are presented to the end user in a specific order and. This data is stored on various infotypes. promotion. Actions simplify data entry because you do not have to access each infotype individually. a personnel number is assigned to each personnel assignment. All rights reserved.0 HCM describes the relationship between employee and employer. you can skip the infotype and add the missing information later. The person ID enables you to track the global employee in the whole enterprise for the duration of his or her assignment (infotype 0709) In SAP ERP 6. You can track and manage all of an employee's employment relationships in various countries in the © Copyright . each of which is in a different country. Each personnel assignment is linked to the person. Figure 70: Personnel Actions The completion of the hiring action results in the creation of a personnel file. the country of the global assignment and the duration of the assignment. retirement. A personnel assignment describes details such as the tasks the person has to perform. Global Employees SAP ERP HCM allows you to manage employees with multiple assignments. which consists of the various infotype records.

This is especially important for global enterprises. field and pressEnter. global employees are managed by linking each of an employee's personnel assignments to the person. SAP E-Recruiting includes: Requisition management Management of job postings Entry of applications Online services for internal and external candidates Talent Relationship Management In addition to the requisition. How to Display Employee Information 1. integration allows applicant data in the recruitment system to be transferred to Personnel Administration as employee data. how incoming applications will be handled. Display an employee record. first in-person interview. SAP E-Recruiting is an all-round recruiting solution. When an applicant is hired. you must also define the screening process. 4. managing and selecting applicants and applicant correspondence. offer confirmation. The Display Master data screen for Lars Becker is presented.Unit 6: Human Capital Management standard system. are completely configurable. Enter 11199100 in the Personnel no. the tabs. 3. 2. The following processes are included in SAP E-Recruiting: 240 © Copyright . In case you are asked. etc. correspondence to be generated and the activities (for example . In SAP ERP HCM.). Establishing a relationship with candidates in your talent pool is an important step in the overall recruitment process. choose Human Resources -> Personnel Management -> Administration -> HR Master Data -> PA20 Display . All rights reserved. It is fully Internet-enabled. The view presented to theuser will be based on the user group to which the user is assigned.) and may be displayed by selecting the box to the left of the infotype (which will highlight the line) and choosing the display icon. You must also consider how you will manage your talent pool. . including advertising. An individual who is not a fit for the initial position applied for might be the ideal candidate for a position at some point in the future. An infotype may be listed on multiple tabs. initial 'thank you for your application' e-mail. as well as the specific infotypes displayed on each tab. From the SAP Easy Access screen. Infotypes are listed under various tabs (such as Core Employee Info. Authorization profiles assigned to end users control the ability of the user to display or edit data for specifically defined groups of employees. phone interview. SAP E-Recruiting SAP E-Recruiting supports the entire recruitment cycle.

postings Management of this process includes defining how qualified candidates will be attracted to apply at the company. intranet. and so on).com/erp-hcm and service. 241 . Candidates have the ability to register and log on using their own personal start pages. Talent Relationship This concept facilitates the integration of internal and external Management candidates in one talent pool. Management of job Job postings indicate the qualifications required of candidates. The overall performance rating of the employee can be passed to Enterprise Compensation Management and can be used to determine. All rights reserved. along with classification of candidates. job fairs. through channels such as e-mail.com/erp-hcm The appraisal functionality in Personnel Development supports flexible appraisal processes that you can use to carry out standardized appraisals with the highest level of objectivity. Internet. for example. Search and match functionalities. complete an online application.sap. This document specifies how the selection process will be handled. facilitates the search for the ideal candidate.http://www. Performance Management Performance Management is the basis of pay for performance and may also be part of the succession planning process. Candidates may search for vacancies.Lesson: Viewing Components of Human Capital Management Requisition management Requisitions are an agreement between managers and recruiters regarding how vacant positions should be handled during the recruitment process. The hiring action executed for the successful candidate can initiate the transfer of information maintained on SAP E-Recruiting infotypes to personnel administration infotypes. Figure 71: Performance Management Performance Management allows you to: © Copyright . The goal of performance management is to align the goals and objectives of employees to the overall corporate strategy. Appraisals are part of employee master data information. Additional information can be found using the following links. Entry of applications Online services This process determines how incoming applications will be handled (for example.sap. and check on the status of their application. the percentage increase an employee receives.

Unit 6: Human Capital Management Align your workforce with enterprise strategy Communicate strategy Execute flexible and future-oriented performance planning Review performance and identify top performers Provide the transparency and flexibility required to reflect today's rapidly changing requirements Create a basis for performance-based pay and succession management Performance Management offers a tool that enables you to track employee performance using individual objectives. and make compensation adjustments (for example merit and bonus awards). Job and position requirements are linked to employee objectives. Performance Management offers flexibility and integration. . Appraisal results can be used for compensation adjustment adjustment proposals. Performance Management also enables you to pass corporate goals and strategies down to the employee level by helping you to establish detailed objectives and initiatives. Individual training courses are displayed and monitored. hold performance feedback reviews (appraisals). All rights reserved. Development plan steps are displayed and monitored. Performance Management Solution Capabilities Figure 72: Solution Capabilities Benefits of Performance Management include the following: 242 © Copyright . Flexibility of Performance Management includes the following: Templates provide the framework to guide participants through the performance cycle Supports best-practice performance management processes Single-screen configuration Status and workflow management Open architecture for customer enhancements Enhanced analytics Performance Management integration includes the following: Balanced Scorecard is integrated with individual objectives.

243 . Integration with personnel development enables requirements profiles to be taken from position requirements. Figure 73: Personnel Development The comparison of the position requirements profile (the skills required to perform the tasks of the position) and an employee qualification profile (the skills the employee holding the position possesses) results in development requirements for that employee. you can plan development and further education and training for your employees by integrating with Training and Event Management. By integrating with strategic enterprise management (SEM). All rights reserved. and they are used in the employee's performance appraisal. These are the qualifications required to perform the tasks of a position.Lesson: Viewing Components of Human Capital Management Templates provide structure for objective setting and appraisal documents. Better communication at all hierarchy levels. such as participation in a training program. the departmental objectives taken from the company objectives can be displayed in the Balanced Scorecard. execution. to employees. Iintegration with SAP Learning Solution enables appraisal processes for business events (training classes) and appraisals for attendees. such as updating the employee's qualification profile in personnel development or adjusting the employee's remuneration in payroll. © Copyright . automated follow-on processes. Development plans may be used to assign qualifying actions. as well. you can use integrated. Personnel Development In the Personnel Development component. and the relevant strategic objectives can be transferred directly to employee objectives. Once the appraisal process is complete. Training and Event Management Training and Event Management is a highly integrated component that supports you in the planning. and management of training courses and business events.

Unit 6: Human Capital Management Figure 74: Processes in Training and Event Management Training and Event Management includes the following main processes. SAP offers certification of vendors of theses systems and a list of certified partners can be found on the SAP homepage. An example of a time recording terminal is Kronos. 4. such as firmly booking events (confirming the event will run). Business event preparation: Includes the creation and maintenance of the master data used to create the business event catalog. the link with Personnel Development enables you to identify qualification deficits and react with targeted training programs in Training and Event Management.com/ecosystem/customers/directories/searchsolution. All rights reserved. event locations. . pre-booking attendance. Day-to-day activities: Includes booking participants. select Human Resources from the drop down list. for example. For example. replacing bookings. cancelling. and follow-up activities (reporting. The link to the SAP Learning Solution enables you to combine traditional classroom training in Training and Event Management with Web-based learning methods. Time Management There are defined interfaces to connect an SAP system to other systems for very specific data exchanges. resources. These are mentioned on the figure. Due to a high level of integration with other SAP components. and preparing correspondence. cancelling attendance. scroll to the bottom of the selection screen and select Search. You can show a list of partners in the Certification Category “Human Resources. to integrate time recording terminals into the SAP HCM solution. 244 © Copyright . Business event catalog: Includes the creation of business events 3. each supplemented by reporting options: 1. including time schedules. The link is http://www.sap. Time Manager's Workplace is one method for recording time data using a Time Administrator.” Once you access the link.Training and Event Management is an ideal tool for constantly extending and updating employee knowledge. Briefly explain the different areas covered in Time Management as shown in the figure. and so on 2. performing cost re-allocations for internal attendees). leave the Solution Name and Company Name blank and in the Certification Category section. as it might change). Recurring activities: Includes activities required periodically.epx (you should verify this link from time to time. locking and unlocking events (controlling enrollment). re-booking.

and valuating employee attendance and absence times. using the Time Manager's Workplace) Using front-end time recording systems (for example. off-site work. due to vacation. For example. such as Controlling and Logistics (e. © Copyright . After Payroll has been run. The Time Management application supports you in all processes that concern planning. for example. just like HR master data information. 245 . vacation. Master Data has to exist. and is a factor that influences enterprise-wide decisions. if Training and Event Management is integrated with Time Management. or substitutions. Kronos) Using the Cross-Application Time Sheet (CATS) Using Employee Self-Service (ESS) applications Planned Working Time Time data is stored in special time infotypes. The planned working time infotype 0007 is the central time management infotype. results are transferred into finance. Time management allows you to flexibly display and record working times. Figure 75: Time Management: Overview Evaluating work performed by employees and determining employee availability are essential elements for a human resources system.Lesson: Viewing Components of Human Capital Management Time Management data has impact in other application components. the booking of an employee into a course causes a time data record to be created as an attendance. In order to use Time Data. All rights reserved. such as controlling (how the employee spent their time) and logistics (determines employee availability for planning activities). It contains the times when the employee is scheduled to work according to the assigned work schedule. such as hours worked. If an employee who is being booked on a course is absent.g. Time recording options include: Online data entry by the time administrator (for example. This information is also relevant for other areas. There are various options available for recording time data. the system notifies the person attempting to register the employee that the employee is not available. recording.Information on working times is used to calculate gross wages in payroll. capacity planning). This data is passed to Time Evaluation and then to Payroll.

All rights reserved. such as the creation of payroll results and salary statements. you determine how long they must work on a daily basis. It encompasses a multitude of processes. Figure 77: Payroll (1) Payroll includes a number of additional subsequent activities.Unit 6: Human Capital Management Figure 76: Planned Working Time Infotype By defining the planned working time for your employees. SAP ERP HCM supports payroll functions and regulatory requirements. such as the payroll account and payroll journal The preparation of pay statements The calculation of payments to employees includes the following: Calculation of pay elements (gross amount) Statutory and voluntary deductions (country-specific. net amount) 246 © Copyright . and payment to employees. . Payroll Designed for global business. In general terms. expenses and liabilities) Data medium exchange (transfer of net pay amounts to financial institutions) Other evaluations. payroll is concerned with calculating each employee's remuneration for the work performed. Examples of these activities include the following: Transfer of payroll results to accounting (for example. bank transfers.

It takes full advantage of SAP system global capabilities. SAP ESS empowers employees to view. payroll. HTML-based user interface.The employee is usually paid by bank transfer or check. 247 . ESS streamlines approval processes for activities such as vacation requests and allows employes to check. and the payment amount is printed on a form for the employee. for example. marital status.using different wage types. employees can take responsibility for updating their own data. thus reducing administrative costs. their vacation balance or benefits. With SAP ESS. Enabling employees to maintain their own data and to have access to their own information increases employee satisfaction and accuracy of data. and so on) Employee Self-Service Activity Enter work times Enroll in benefits Update banking information Enroll in a training course SAP ESS utilizes the same database as ERP. create. No dual maintenance or reconciliation is required. Using Employee Self-Service (ESS).SAP ESS has an intuitive.Lesson: Viewing Components of Human Capital Management These payments and deductions are included in the payment calculation. and travel departments. and to offload many of the data entry and related customer service activities that may typically be performed in a company’s human resources. via Webbased technology. Employees use SAP Employee Self-Service to complete the following activities: Employee Self-Service Activity Submit travel expenses View the calendar Search the Who's Who Update personal information (such as address. Employee Self-Service Explain that the concept of self-service is to reduce the paperwork load of the HR department so that they may focus on more strategic functions. and maintain their data any time. including country localization © Copyright . benefits. SAP ESS is an effective means to provide real-time access and data maintenance capabilities to the source or owner of the data. Review the benefits of ESS. All rights reserved. anywhere. employees maintain their own personal information and control many administrative transactions and other processes once handled by the HR staff.

MSS leverages human resources and financial back-end systems by making pertinent information available to managers throughout your enterprise. The MSS solution integrates different systems. effectively. such as requests for employee master data changes (for example. MSS gives managers a single point of access to information and enables them to manage information efficiently. Figure 79: Single Point of Access 248 © Copyright . thus creatingreturn on investment. transactions. All rights reserved. recruitment. It empowers managers to execute human capital and finance management strategies for budgeting. Self-service tools automate paper-based processes. compensation. and management information is consistent across the organization. and reporting capabilities. and proactively in one Web interface. and cost management. . transfers and salary increases) or performance appraisals.Unit 6: Human Capital Management Figure 78: SAP Employee Self-Service: Highlights Benefits of SAP Employee Self-Service include: Well-informed employee decisions Reduced administrative costs and shorter cycle times Accurate employee records Time and resources saved for strategic HR initiatives Manager Self-Service Manager Self-Service consists of a set of easy-to-use tools.

Control costs. © Copyright . Submit personnel data changes. Manage budget and headcount planning. Recruit employees.Lesson: Viewing Components of Human Capital Management Managers can use Manager Self-Service to: Obtain information. All rights reserved. 249 . Perform compensation planning.

For this reason.Unit 6 Exercise 1 Hire an Employee Business Example Turn the table locks on by running ZSENQON. Save this infotype. Infotype 0002 Personal Data is presented. Skip this infotype 1. Infotype 0000 Actions is presented. Execute a hiring action to create the required infotypes for the new employee. . You are responsible for the maintenance of new-hire information. . Field Personnel Area Employee Group Employee Subgroup Personal Information Infotype Organizational Assignment Infotype : Personnel Subarea Dialog Box: Assign to a Position? Address Infotype Planned Working Time Infotype Basic Pay Infotype: PS Group Bank Details Infotype: Payment Method Absence Quota Infotype Travel Privileges Infotype Communication Infotype Value CABB 1 X0 Data of Your choice 001 Select No Assignment Data of your choice Press enter to accept defaults and save E01 (press enter to accept defaults S Entry not required. 3. Hire an Employee Execute a hiring action to create the required infotypes for the new employee. 250 © Copyright . you must execute a hiring action for a newly hired employee. All rights reserved. This is required to enable participants to save infotype 2006 Absence Quotas. Use the field values provided in the table. Use the SAP Menu as the starting point for navigation by selecting the SAP Menu icon 2. Entry not required. Save this infotype.

a dialog box is presented. 251 . Infotype 0001 Organizational Assignment is presented. The newly hired employee now exists in the system with a personnel number and associated master data records.Bank Details infotype 0009 is presented. © Copyright . 14. Address infotype 0006 is presented. The dialog box Subtypes for Infotype Addresses is presented. 6. 12. 10. Planned Working Time infotype 0007 is presented. Absence Quotas infotype 2006 is presented. When saving the Organizational Assignment infotype 0001.4. 11. 8. Communication infotype 0105 is presented. All rights reserved. 9. 5. Basic Pay infotype 0008 is presented. This indicates that the execution of the hiring action has been completed. 7. Travel Privileges infotype 0017 is presented. The Personnel Actions screen is presented. 13.

Save this infotype.Unit 6 Solution 1 Hire an Employee Business Example Turn the table locks on by running ZSENQON. All rights reserved. 252 © Copyright . choose Human Resources -> Personnel Management -> Administration -> HR Master Data ->Personnel Actions. Hire an Employee Execute a hiring action to create the required infotypes for the new employee. Execute a hiring action to create the required infotypes for the new employee. Field Personnel Area Employee Group Employee Subgroup Personal Information Infotype Organizational Assignment Infotype : Personnel Subarea Dialog Box: Assign to a Position? Address Infotype Planned Working Time Infotype Basic Pay Infotype: PS Group Bank Details Infotype: Payment Method Absence Quota Infotype Travel Privileges Infotype Communication Infotype Value CABB 1 X0 Data of Your choice 001 Select No Assignment Data of your choice Press enter to accept defaults and save E01 (press enter to accept defaults S Entry not required. Entry not required. This is required to enable participants to save infotype 2006 Absence Quotas. Skip this infotype 1. Use the field values provided in the table. For this reason. Use the SAP Menu as the starting point for navigation by selecting the SAP Menu icon . a) From the SAP Easy Access menu. you must execute a hiring action for a newly hired employee. . Save this infotype. You are responsible for the maintenance of new-hire information.

b) Enter Personnel Number 500997## ( ## = your group number). e) Choose Execute . enter S and press Enter to confirm your entry. 2. b) Save your entry. b) Select Copy. Infotype 0000 Actions is presented. b) Save your entries. c) Enter a From Date of the first of the current month. Address infotype 0006 is presented.Bank Details infotype 0009 is presented. Absence Quotas infotype 2006 is presented. When saving the Organizational Assignment infotype 0001. in the Subarea field. 8. Planned Working Time infotype 0007 is presented. 7. 5. a) Press Enter to update the infotype with default information set up in configuration. enter X0. 9. enter CABB. All rights reserved. a) Select 1 Permanent Residence. b) Save your entry. b) Save your entries. enter E01 and press Enter. a) Enter data of your choice for the firs name. Infotype 0001 Organizational Assignment is presented. a) Complete this infotype with data of your choice. and birth date of the new employee. © Copyright . a) In the Personnel Area field. 3. The remaining fields are optional and may be left blank. a) Under the Enterprise Structure section. Basic Pay infotype 0008 is presented. c) In the employee subgroup field. last name. b) Save your entries. 11. b) In the Employee Group field. enter 1. d) Save your entry . enter 0004. a) In the PS Group field (pay scale group). a) In the Payment Method field. The dialog box Subtypes for Infotype Addresses is presented. 4. a dialog box is presented. b) Save your entry. 6. b) Save your entries. 10. Infotype 0002 Personal Data is presented. 253 . a) Select the No Assignment radio button and choose Continue. Default values are presented. d) Select the Action Type Hiring HR050 by highlighting the line.

12. 14. The Personnel Actions screen is presented. Communication infotype 0105 is presented. b) Save your entries. This indicates that the execution of the hiring action has been completed. . The newly hired employee now exists in the system with a personnel number and associated master data records.a) Changes are not required to this infotype. 254 © Copyright . a) Changes to this infotype are not required. 13. b) Save your changes. All rights reserved. Travel Privileges infotype 0017 is presented. a) This infotype may be skipped by selecting the Next Record icon .

255 . All rights reserved.Lesson: Viewing Components of Human Capital Management LESSON SUMMARY You should now be able to: Identify the components of SAP ERP Human Capital Management Outline the organizational structures of SAP ERP Human Capital Management Maintain employee master data © Copyright .

. All rights reserved.Unit 6: Human Capital Management 256 © Copyright .

257 .UNIT 7 Analytics and Strategic Planning Lesson 1 Executing Analytics and Strategic Planning Reports Exercise 1: Create a Business Intelligence Report 258 266 UNIT OBJECTIVES Execute a sales report Execute an analytical business intelligence report © Copyright . All rights reserved.

Business Example You are responsible for reporting and must be able to create. you can use Client 900 in the instructor training system. also other SAP NetWeaver which previously had “BI” as part of the name. you will be able to: 258 © Copyright . The reasons for a data warehouse and reporting should be explained in this lesson. The lesson starts with simple list reporting in SAP ECC. it was BusinessObjects (without space).” SAP NetWeaver BI goes back to SAP NetWeaver BW. OutlookSoft and Pilot Software. After the takeover the name was first “BusinessObjects. Also just shortly before this course was about to be finished. the use of the term Business Intelligence will be associated only with the solutions from the SAP BusinessObjects Portfolio. SAP BusinessObjects Dashboards. To demonstrate BW functionality. In the instructor system portal Xselsius demos are available. modify. when referring to branded products or services. Regarding the former Business Objects: The company was called Business Objects (with space). going to the more complex and advanced analytical reporting of SAP NetWeaver BW and SAP BusinessObjects Intelligence Platform. 2009. at least after the takeover.” “Business Intelligence will no longer be associated with SAP NetWeaver components or the SAP Business Suite. With Col. and standard reports. an SAP company”. SEM is no longer included in this course.92 this lesson was reworked due to the acquisitions of Business Objects. For this reason.Unit 7 Lesson 1 218 Executing Analytics and Strategic Planning Reports LESSON OVERVIEW This lesson shows you how to generate various reports. a branding change was announced. and manage various reporting options. now it is changed to “SAP BusinessObjects” (and it seems that it is always the same way written. referring to the brand as well to the products). All rights reserved. This lesson covers the different possibilities of reporting and analytics. change back to “BW”. you require the following knowledge: A good understanding of the difference between reporting and analytics A basic understanding of online analytical processing (OLAP) and online transactional processing (OLTP) A basic understanding of SAP BusinessObjects Business Intelligence LESSON OBJECTIVES After completing this lesson. effecting most of the products: “Starting Jan 1. including SAP Business Intelligence. .

259 . and partners for more effective decision making. Business Intelligence Business intelligence is the use of an organization's disparate data to provide meaningful information and analysis to employees. All rights reserved. It is also possible to have information structures aggregate data for simple operational analytics. The reporting in this type of system often refers to information requirements for day-to-day work. measure it. customers. This varies greatly from reporting used in an online analytical processing (OLAP) environment. The core capabilities of business intelligence enable the user to group information together.Lesson: Executing Analytics and Strategic Planning Reports Execute a sales report Execute an analytical business intelligence report Reporting Versus Analytics Online transactional processing (OLTP) refers to the type of processing typically performed in an SAP ERP system. The user can access the source documents directly from these lists. List displays enable the user to request a listing of documents or master data information. Analytical systems use a data warehouse where key figures are derived from various sources and are aggregated. Figure 80: Reporting and Analytics Simple difference between “Information System” and “BW”: The information system is using tables in the ERP system to aggregate data. give users access to it. © Copyright . List displays are reports that access data that is generated directly from online transactions. BW has it's own database. and share information changes. suppliers.

you gain insights that support the decisionmaking process.Unit 7: Analytics and Strategic Planning Figure 81: Business Intelligence Companies create data during business activities. Figure 82: OLTP versus OLAP 260 © Copyright . . In an operative system (OLTP) the detailed data is spread in several database tables. is combined for faster access. normally coming from various systems. in an informative or analytical system (OLAP) aggregated data. Explain the reason for a product like SAP NetWeaver Business Information Warehouse. All rights reserved. Employees use this data as a basis for making decisions. and internal activities. Business intelligence (BI) collates and prepares the enterprise data for analysis. BI makes it possible to quickly create reports about business processes and results and to analyze and interpret data about customers. By analyzing the data using BI tools. OLTP versus OLAP OLTP environments are fundamentally different from OLAP environments. suppliers.

261 . SAP brings together a powerful business intelligence infrastructure. Requests for comprehensive. normalization is very high for operative use. including change. Operative applications also need to carry out additional performance functions. History Changeability Integration Normalization Due to the reduction in data redundancy.Lesson: Executing Analytics and Strategic Planning Reports OLTP Level of detail Stores data with a very high level of detail Archiving data in the OLTP area means it is stored with minimal history. This enables strategic analysis and supports decisionmaking. planning. Performance SAP NetWeaver Business Warehouse Figure 83: SAP NetWeaver Business Warehouse Platform A complete business intelligence solution is subdivided into various areas. integrated information are very high for analysis. Less normalization in the data warehouse because of data staging and lower performance OLAP environment is optimized for read access. a comprehensive set of tools. Data is frozen at a certain point for analysis. All rights reserved. Frequent data changes not applicable OLAP Data is compressed for highperformance access (aggregation). Authorized employees can access and evaluate historic and current data with different levels of detail. and simulation capabilities. This is delivered through enterprise portal technology. insert and delete. Data warehouse area requires comprehensive historical data. © Copyright . and data-warehousing functionality.

including relational and multidimensional sources and SAP and non-SAP sources. as well as the creation of the data stores used for the analysis. The data is usually extracted from different sources and loaded into SAP NetWeaver BW. SAP NetWeaver BW offers a number of options for data storage. 262 © Copyright . To consolidate the data for evaluations. Data mining helps you explore and identify relationships in the data. The SAP NetWeaver BW architecture contains the following layers: Extraction Enterprise data is collected centrally in the SAP NetWeaver Business Warehouse. From the SAP Easy Access screen. Analysis can be used to obtain information from the data set and can be used as a basis for decisionmaking. Data storage and data flow Data analysis and planning How to Execute a Sales Report 1. technical cleanup steps are performed and business rules are applied. which are not part of NetWeaver. Online analytical processing (OLAP) prepares information for large amounts of operative and historical data. The consolidated data is stored in the data warehouse.Unit 7: Analytics and Strategic Planning SAP NetWeaver BW Architecture Figure 84: SAP NetWeaver BW Architecture SAP NetWeaver BW and its tools is still central in the analytics area. The BW OLAP processor allows multidimensional analysis from various business perspectives. transformation and loading (ETL). SAP NetWeaver BW supports various sources. These include the implementation of a data warehouse or an operational data store. Together they form SAP BI. . choose Logistics -> Logistics Controlling -> Sales Information System -> Standard analysis -> MCTE Sales organization . All rights reserved. It is supplemented by the various products coming from SAP BusinessObjects and others. This entire process is called extraction.

Lesson: Executing Analytics and Strategic Planning Reports 2. organizations gain better business insight. where the differences and future developments are explained. it is working with direct access to the data sources. By making information easily accessible and consumable with simplified user interfaces. Figure 85: SAP and SAP BusinessObjects Products While some products on the figure complement each other. 263 . SAP BusinessObjects helps companies bridge the information divide between business intelligence (BI) power users and everyday business users. improving decision making and enterprise performance. SAP BusinessObjects Enterprise is not the same as SAP NetWeaver BW (the two lowest building blocks). BusinessObjects does not use a data warehouse in the same way as SAP. SAP BusinessObjects SAP BusinessObjects is a market leader in enterprise business intelligence. cleanse. All rights reserved. and load the data into a single location SAP Netweaver BW Accelerator SAP NetWeaver Master Data Management Provides rapid access to data. transform that data to meet business requirements. Execute the report for Sales Organization 1000 and for the proposed period. and briefly explain the result and the drill-down possibilities. For details about the SAP BusinessObjects offerings you should make yourself familiar with the BI pages on SDN. As a result. while keeping administration effort to a minimum Is used as a platform to consolidate. BWA stands for BW Accelerator SAP BusinessObjects Products SAP BusinessObjects offers the following products: SAP BusinessObjects Data Provides a graphical interface that allows you to easily extract Services data from diverse sources. and synchronize a single version of the truth for master data within a diverse application landscape © Copyright .

Start the presentation mode in PowerPoint. Export the dashboard to PowerPoint and save the PowerPoint in the My Documents folder. Preview the dashboard. Add a custom pie chart that shows the product mix for 2009 for all product lines. 8. Add a background element to the canvas. information repositories. databases. Add a custom gauge to visualize the total projected sales for all product lines.000s with one bar per product line. All information is integrated into a single source. Insert a bar chart that visualizes the projected computer sales data in 1. independent from IT. and good values. All rights reserved.xls from the Business Workplace shared folder SAP01 and save it to the My Documents folder in the Common Training WTS session. enterprise applications. 2. PDF. 264 © Copyright . 7. and Web documents with SAP BusinessObjects queries and reports A Web-based application that enables business experts and developers to quickly create business application components without coding Crystal Reports SAP BusinessObjects Dashboards Visual Composer SAP NetWeaver Portal Offers a single point of access to SAP and non-SAP information sources. You should now be able to see the impact of a change in the sales growth rate for desktops in the bar chart. 9. Download the file SAP01_XcelsiusI_Demo. critical. 3. Finalize the presentation by adding a title text field for the dashboard. Also label the sliders with a text field. and services inside and outside your organization. Use alerts within the gauge to indicate bad. 4. Import the Excel model SAP01_Xcelsius_Demo from the My Documents folder. Increase the font size of the text fields to highlight them. .Unit 7: Analytics and Strategic Planning SAP BusinessObjects Business Intelligence Solutions SAP BusinessObjects Web Intelligence A portfolio of solutions that enables the user to search through business information Has a simple user interface for self-service reporting and analysis. and helps to combine SAP and non-SAP data in a single report Enables the creation and modification of highly formatted reports on top of SAP NetWeaver BW A data visualization tool that enables the integration of dynamically updated data into Microsoft Office. Save the dashboard in the local My Documents folder. Add more horizontal sliders to the dashboard to give the bar chart what-if capabilities for the other product lines. How to Execute an SAP BusinessObjects Dashboards Query 1. Use a horizontal slider to give the bar chart what-if capabilities. 5. Start Xcelsius using the path Start -> Programs -> Xcelsius -> Xcelsius 2008 . 6.

Choose Next. Do not change anything in the Create a Query window and choose Run Query. then press Enter. right-click. 11. 5. and select Remove -> Remove Column. 2. Open the file using Windows Explorer. Visualize the section with a horizontal grouped bar chart. Double-click the report title and enter the name Sales Order Report. 3. Rename the column heading from Sold to party to Customer. 2. Choose the Open a document icon . Choose File -> Save As -> PDF and select the My Documents folder. select the SAP01_WebI_Demo.Lesson: Executing Analytics and Strategic Planning Reports How to Execute an SAP BusinessObjects Web Intelligence Query 1. 8. 12. Right-click one of the tables with products and sales order items. 6. 10. All rights reserved. Save the Web Document as a PDF in your My Documents folder and open it using Windows Explorer. Select Horizontal Grouped.xls from the Business Workplace shared folder SAP01 and save it to the My Documents folder in the Common Training WTS session. Select Authentication: Standalone and choose the Logon button. respond with Yes. choose Start -> Business Objects XI 3. Make sure that the Field Selection is All Fields and the check-box First row contains column names is selected. and choose Open. Create a section in the report according to the customers. right-click. 9.Highlight any customer value cell. If you get a prompt to validate the formula. Double-click the Sold to party cell and enter Customer. Rename the report title to Sales Order Report.Choose Turn to and select the Bar Chart icon. and choose Set as Section. Then press Enter. 7. Download the file SAP01_WebI_Demo.1 -> Business Objects Enterprise Client Tools -> Web Intelligence Rich Client. select the file type Text and Excel Files.Do not change any of the settings. 265 .xls file in your My Documents folder. 3. Highlight any empty customer value cell. then create a sum of Sales Order Items for each customer. From the SAP Easy Access screen. 1. 4. © Copyright . Highlight any value cell of Sales Order Item and select the Insert Sum button from the tool bar to create totals by customer.

7. Close the analyzer again. you must create a report listing the top 10 customers in Germany according to their sales volume. 2. 4. and search in the InfoAreas for BW Training -> BW Customer Training -> BW305 Reporting -> Customer Cube T_SDDEMO2 -> SAP01 Customer Analysis. Open the query T SAP01 Customer Analysis. Filter for the top 10 customers according to the sales volume. 6. 3. The highest sales volume should be at the top of the list. log onto the training system. Switch back again to see the Sold-to party. Create a graphic for these 10 customers. 5.Unit 7 Exercise 1 Create a Business Intelligence Report Business Example You are responsible for the creation of reports. remove the result rows. Do not save the query. Using business intelligence. Display the table as a chart. This has to be done on the Sold-to Party characteristic. First. Sort according to the sales volume . Drill down to Countries instead of Sold-to Parties. . 266 © Copyright . which should show the top 10 customers with the Sales Volume and Incoming Orders. All rights reserved. 8. Start the BEx Analyzer. Filter for the country DE-Germany. Create a Business Intelligence Report 1.

b) Select BEx Analyzer -> Open Query. You can also choose the header line (where it says Sold-to party). a) Select the arrow on any value field in the sales volume EUR field. 6. a) Right-click any value field in the sales volume EUR column and choose Create Condition -> Sales Volume EUR Top 10. a) Right-click any line in the sold-to party column. Create a graphic for these 10 customers. a) From the SAP Easy Access screen. 4. Filter for the top 10 customers according to the sales volume. which should show the top 10 customers with the Sales Volume and Incoming Orders. and Language) and choose OK. log onto the training system. Filter for the country DE-Germany. First. 5. Using business intelligence. a) Right-click any line in the Sold-to party column. you must create a report listing the top 10 customers in Germany according to their sales volume. f) Choose the SAP01 Customer Analysis. This has to be done on the Sold-to Party characteristic. Display the table as a chart. Sort according to the sales volume . User. 267 . 2. If an SAP Logon Control dialog box appears. © Copyright . and search in the InfoAreas for BW Training -> BW Customer Training -> BW305 Reporting -> Customer Cube T_SDDEMO2 -> SAP01 Customer Analysis. Password.Unit 7 Solution 1 Create a Business Intelligence Report Business Example You are responsible for the creation of reports. Choose W Training -> BW Customer Training -> BW305 Reporting -> Customer Cube T_SDDEMO02 -> SAP01 Customer Analysis and doubleclick on the entry. Open the query T SAP01 Customer Analysis. 3.. choose Start -> Programs -> Business Explorer -> Analyzer. Switch back again to see the Sold-to party. Start the BEx Analyzer. All rights reserved. The highest sales volume should be at the top of the list. b) Choose Swap Sold-to party with Country. You can also choose the header line where it says sold-to party. Create a Business Intelligence Report 1. Drill down to Countries instead of Sold-to Parties. d) Enter the required user data (Client. c) In the SAP Logon dialog box. 7. continue by choosing OK. remove the result rows. select the training system you are using and choose OK. e) Search in the InfoAreas.

268 © Copyright .b) Choose Parties. a) Choose File -> Exit. d) Choose Chart. Do not save the query.xlx?. All rights reserved. c) Choose OK. . Close the analyzer again. Choose No if the system asks Do you want to save the changes you made to T_SAP01_Customer. The Overall Result line should vanish. 8.

269 . All rights reserved.Lesson: Executing Analytics and Strategic Planning Reports LESSON SUMMARY You should now be able to: Execute a sales report Execute an analytical business intelligence report © Copyright .

Unit 7: Analytics and Strategic Planning 270 © Copyright . . All rights reserved.

271 . All rights reserved.Unit 7 Learning Assessment 229 1. X X True False © Copyright . Determine whether this statement is true or false. Data in an online analytical processing (OLAP) environment is only saved for a short period of time.

Data in an online analytical processing (OLAP) environment is only saved for a short period of time. All rights reserved. . X X True False The data warehouse area requires comprehensive historical data.Unit 7 Learning Assessment.Answers 230 1. Determine whether this statement is true or false. 272 © Copyright .

UNIT 8 SAP Services Lesson 1 Accessing SAP Services 274 UNIT OBJECTIVES Explain the different services offered by SAP © Copyright . All rights reserved. 273 .

it is recommended you access: http://service. All rights reserved. . It is meant to be used as a final statement of how customers can effectively implement the systems discussed in the previous lessons. You require the following knowledge: Good understanding of SAP services Good understanding of SAP maintenance and support Good understanding of finding information on the SAP Marketplace and help portals Good understanding of SAP Consulting services Good understanding of SAP Education services LESSON OBJECTIVES After completing this lesson. you will be able to: Explain the different services offered by SAP 274 © Copyright . Should you decide demo some of the sites referenced. If you do not have a User ID. The demonstrations have been removed from this lesson. consulting and education services.com and set-up a User ID before you begin this lesson. which are maintenance and support. Briefly touch on the highlights. You do not need to spend a lot of time here.sap. This lesson shows you how to find additional information about the services SAP provides its customers and partners.Unit 8 Lesson 1 Accessing SAP Services 232 LESSON OVERVIEW This lesson describes some of the most important services SAP provides to customers and partners. Business Example You are responsible for presenting a summary of SAP services to the steering committee and you must create a presentation. you may require a Service Marketplace User ID.

275 . implementation. SAP Service Offerings SAP Services include the following: Consulting services Financing for SAP solutions Business process outsourcing Hosting and application management Software maintenance and support Custom development Offers best-in-class consulting through planning. Please note that SAP Enterprise Support is the standard level for SAP Business Suite customers. manages. This should introduce the different levels of SAP support. and maintains SAP solutions for organizations of any size Provides services for planning.Lesson: Accessing SAP Services SAP Services Figure 86: SAP Services With SAP Services. © Copyright . IT and business strategies can be aligned. All rights reserved. and software can get up and running quickly and be kept at peak operating levels. all-inclusive. SAP MaxAttention offers additional services. while SAP Safeguarding concentrates on technical quality management. implementation. and optimization services Provides companies with affordable. and operations Incorporates SAP development strategies to deliver solutions that meet unique business goals SAP Maintenance and Support SAP Active Global Support delivers the skills and resources you need to optimize the performance of your solution and manage your business processes effectively. and predictable financing options that cover the entire cost of the SAP solution Supports business process outsourcing (BPO) providers in setting up services that generate sustainable business value Operates.

. upgrade.Unit 8: SAP Services Figure 87: Software Maintenance and Support SAP maintenance and support services include the following: SAP Enterprise Support Provides SAP support through a 24/7 guaranteed service-level agreement. If you face an issue when running your core business processes. IT automation. effective problem resolution is essential to minimizing costly downtime. focusing on core business processes. 276 © Copyright . and operations SAP MaxAttention SAP Safeguarding SAP Enterprise Support SAP Enterprise Support helps you reduce costs and risks and protect your IT investments by offering an easier methodology for deploying and managing software innovations. you need access to expert knowledge right away. and advanced support for implementing SAP ERP enhancement packages and support packages Aligns your needs with a strategy for the end-to-end operation of your SAP solutions. and protection of IT investments Manages risks and ensures the technical robustness of your SAP solutions during implementation. All rights reserved. Categories of development included in SAP Enterprise Support include the following: Standard SAP software Custom development (delivered by SAP) Partner solutions Figure 88: SAP Enterprise Support Benefits of Enterprise Support Fast. The focus of SAP Enterprise Support is the management of your IT landscape over the life cycle of your applications. continuous quality checks. you have access to the knowledge resources and collaboration capabilities of SAP global support. With SAP Enterprise Support. the system landscape. support advisory.

and process-supported diagnostics Life cycle management based on standards and tools Remote supportability Monitoring and management of your business processes Enabling management of your custom code Figure 89: SAP Enterprise Support Offerings SAP Service Marketplace To design. with higher quality. and at a lower cost of ownership at all stages of the life cycle.Lesson: Accessing SAP Services SAP Enterprise Support provides: Consistent standards Tool. build. 277 . © Copyright . and maintain a high-quality solution. All rights reserved. you need efficient access to a variety of services from SAP and others. You benefit by completing your solution faster. The SAP Service Marketplace gives you one-stop access with easy. You can reach the SAP Service Marketplace from your SAP Enterprise Portal or directly at . guided navigation to a full range of offerings from SAP and SAP partners.

SAP Service Marketplace Offerings SAP Service Marketplace offerings include the following: SAP Support Portal SAP Partner Portal SAP Channel Partner Portal Consulting. and services that enable SAP Business Partners to collaborate with SAP Provide a wide range of material on all SAP solutions and consulting services.Unit 8: SAP Services Figure 90: SAP Service Marketplace The service marketplace is the primary point of information for all of SAP's services. Where SAP experts. Might be better to demo this. 278 © Copyright . solve problems. customers. information. and share ideas Helps you design and implement learning strategies covering the entire corporate education value chain SAP Business Community SAP Education SAP Library The SAP Library provides the following search capabilities: Obtain a functional overview of all SAP systems. and User Group areas SAP Business One Customer Portal SAP Developer Network SAP Help Portal Supports your SAP solution during its entire life cycle The best single source of information and services for SAP partners Provides tools. and business leaders gather to exchange insights. as well as access to user group information Allows all SAP Business One customers quick access to support services. This enables you to search the online library for the right information where and when you need it. . Keep this at a very high level and just touch on some of them. Solutions. All rights reserved. including information and applications to help you solve any problems you encounter with your system Offers a complete collection of content and collaboration dedicated to SAP technology topics Provides Web-based documentation for all SAP solutions.

Lesson: Accessing SAP Services Find information organized according to information classes. SAP Consulting delivers sound advice and support throughout the entire solution life cycle with a portfolio of services.sap. Helps you realize additional value: Protect value: © Copyright . including system components. All rights reserved.com. processes.com The SAP Library is offered free of charge. and our extensive partner network. SAP Consulting works with our team of partners.sap. Figure 91: help. functions. 279 . you benefit from our SAP skills and experience. Consulting services help customers in the operations phase improve total cost of ownership and continuously adapt to changing business environments. objects. You can access the SAP Library without an SAP Corporate Portal or SAP Service Marketplace at http://help. and step-by-step procedures. Consulting Services With SAP Consulting as your valued business partner. Search for the meaning of terms in the SAP Glossary. Search across the full SAP Library using a powerful search engine. assuring quality and mitigating risk to protect your software investment. our close working relationship with SAP development. The benefits of the consulting services portfolio include the following: Create new value: Consulting services leverage the entire SAP network to create value for customers who are implementing SAP solutions by deploying SAP's latest technology and functional innovations.

280 © Copyright . training. Help integrate your business solutions into your overall enterprise architecture. ensuring that your IT infrastructure is aligned with business strategies. Align your system landscape with individual business requirements. SAP Consulting's flexible engagement model can support your drive toward a successful SAP implementation. and increase the effectiveness of complex programs. Deliver comprehensive services for implementing the upgrade and addressing technology. and change and risk management. Help you identify and quantify the business value that comes with increased operational efficiency. Focus on the architecture of business processes and their associated systems and organizational structures. SAP Consulting Service Categories SAP Consulting service categories include: Program and project management services Business process design services Solution implementation services Solution optimization and upgrade services Business and IT strategic consulting services Solution integration services Solution and architecture design services Technical implementation services Conversion. SAP works with you to translate high-level system architecture into project-specific technical requirements. Whatever your needs. migration.Unit 8: SAP Services Figure 92: SAP Consulting Services SAP Consulting has a flexible engagement model that allows you to choose the level at which SAP is involved in your project. while others want complete end-to-end management and responsibility. All rights reserved. business processes. Some customers simply want strategic oversight from SAP. Help you integrate your company-specific IT systems with both SAP and non-SAP solutions. identify potential problems. . and landscape optimization Help you monitor progress toward program goals. Provide input on how to best use applications to meet your business needs.

services. and scalable.Lesson: Accessing SAP Services Technology architecture design You receive specific recommendations for making your IT environment robust. feasible. including: Instructor-led training at an SAP Education site or your own facility SAP Solution Academy End-user solutions E-learning courses Online knowledge products SAP offers certifications and customized. and Web-based communication. you can achieve the following: Optimize the value of your IT investment. and delivery options. effective. Reduce total cost of ownership. All rights reserved. talent management. With comprehensive offerings from SAP Education. Facilitate adoption and system use among your users. or program. and right for you. Quality and risk management Ensure that your projects achieve strategic and operational services objectives. role. and tools. 281 . You can take advantage of various types of training. context. You will benefit from training options based on solution. SAP Education works with you to build a culture of continuous blended learning and realize a measurable return on education. With this breadth of course offerings. SAP Education Supported by cutting-edge software. industry-based education solutions in addition to market-leading education choices for corporate learning. Figure 93: Knowledge Transfer © Copyright . Manage your enterprise-wide knowledge transfer and communication. SAP Education can help you design and implement learning strategies covering the entire corporate education value chain. you can leverage education solutions that are comprehensive. convenient.

and cost elements required to successfully implement or upgrade SAP solutions Empowers your employees to realize their full potential within the working environment. SAP Education Details Academy program Companies that implement state-of-the-art SAP solutions often use the services of SAPcertified consultants. customer. on-site classes. Those who hold it have honed their skills through rigorous study or direct experience.Unit 8: SAP Services Students don't always know what other services SAP provides besides Project team training. They have demonstrated their abilities by passing demanding. scope. All rights reserved. . and rollouts. The SAP Education organization provides comprehensive training. addresses training needs related to attrition. Education consulting services With help from our experienced consultants. or user. streamline training time. and increase user productivity by bringing consulting. As a result. and improvement initiatives 282 © Copyright . Training planning and Provides advice on organizational training requirements such as support upgrades. modular curricula enable you to harness the full power of SAP solutions and provide the right knowledge at the right time. user communities. Certification program Few credentials in the business world carry the value of SAP certification. new functionality and application implementation. and current implementation or implementation plan and develops recommendations for helping you achieve your goals Provides your senior management with a clear and easily understood definition of the size. customized training. and the latest computer-based tools to your employees. Flexible. and cultural issues so you can achieve goals and objectives Education needs analysis High-level assessment of education scope Human performance improvement User services and products Examines your company's objectives. technology. and coordinate and integrate key leadership. new hires. Improve daily operations. This allows employees to achieve real business results. ensure organizational alignment. process-oriented exams. you can assess your educational needs. SAP certification can give you a distinct competitive advantage. they know they are getting expert help from partners equipped with the very latest SAP solution information and training. Regardless of whether you are an SAP partner. and certification. quantify your desired results. organizational. documentation. and leverage direct assistance to achieve your goals. Education consulting services include the following: Change management Focuses on helping you introduce the change process. Emphasize the SAP virtual classroom.

283 . LESSON SUMMARY You should now be able to: Explain the different services offered by SAP © Copyright . All rights reserved.Lesson: Accessing SAP Services FACILITATED DISCUSSION Ask participants to name an SAP service and explain how they would use the service in their business.

All rights reserved.Unit 8: SAP Services 284 © Copyright . .

Determine whether this statement is true or false. 7 days a week D Not on holidays © Copyright . X X X X A Five days a week B From 8 am to 5 pm C 24 hours a day. All rights reserved. SAP Education offers only classroom trainings.Unit 8 Learning Assessment 241 1. Determine whether this statement is true or false. X X True False 3. 285 . The SAP Service Marketplace allows customers and partners to order SAP services via the Internet. When is SAP Enterprise Support available? Choose the correct answers. X X True False 2.

286 © Copyright . Determine whether this statement is true or false. .Answers 242 1. X X True False Besides instructor-led training at an SAP Education site or your own facility. and request services via the Internet. SAP offers elearning courses and online knowledge products. 2. All rights reserved. SAP Education offers only classroom trainings. X X X X A Five days a week B From 8 am to 5 pm C 24 hours a day. The SAP Service Marketplace allows customers and partners to order SAP services via the Internet. Determine whether this statement is true or false. 3. When is SAP Enterprise Support available? Choose the correct answers.Unit 8 Learning Assessment. X X True False The SAP Service Marketplace allows users to access a variety of services from SAP and its partners. 7 days a week D Not on holidays SAP Enterprise Support is available 24/7.

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