SAP ABAP Training

Srinivasulu Nettem 24-Feb-2010

ERP Overview

Enterprise Resource Planning
18 December 2012

Enterprise Resource Planning

... synchronization of Company functions...




18 December 2012

Enterprise Resource Planning … and extended to the complete value chain. Tier I Component Manufacturer Vehicle OEM Tier II Component Supplier 18 December 2012 ...

Enterprise Resource Planning ... Decision support and analysis Processes monitoring & feedback Administrative registration 18 December 2012 . delivering administrative and decision support with...

Integrated across the primary and support processes Distribution Manufacturing Marketing Materials Planning and Execution Finance Engineering Human Resources Sales 18 December 2012 .? ….What is an ERP solution...

market and money – Enables corporates to readily change their processes to adapt to the ever changing business scenario – Provides expertise in industry specific business processes •Entails – Parameterization / Configuration – Designing & Customization – Testing and Implementation – Training 18 December 2012 . machine.. methods.The ERP application •An integrated suite of business applications. and controls primary enterprise resources like manpower. material. which. – Closely links. monitors.

•BECAUSE OTHERS ARE BUYING IT!!! 18 December 2012 .Why clients buy ERP? •Corporate Initiatives – Strategic initiatives • A requisite capability in a competitive global business – Operational initiative • A foundation for performance and cost improvement via integration – Organizational initiative • To initiate a major organizational change within the company •Technology – IT is making the transition from a supporting operational entity to becoming a strategic competitive tool.

and speed products to market by reorganizing their existing business processes •Software Pricing • Licensing and pricing of mainframe based packaged applications are tied to the size of mainframe system on which the applications run. but now customers are now demanding user-based licensing options and major corporate applications like SAP provide this instead of the conventional platform-based pricing technique 18 December 2012 . improve customer service.Recent business trends favoring ERP growth •Business Process Reengineering ( BPR ) • Most large companies are attempting to cut in-house development costs.

Recent business trends favoring ERP growth •Globalization • As businesses are becoming more global in scope. there is increase in demand for integrated solution e. people are demanding packaged corporate applications that are available in a variety of languages with support for multiple currencies •Integration • As more and more companies are going for BPR. different applications sharing a common database and thus enabling data definitions and business rules to be applied across an entire organization with the facility of doing modifications at one location only 18 December 2012 ..g.

Business process benefits clients expect from an ERP project •Global process/ Product management •Integrated Supply Chain Management •Leverage purchasing and vendor management •Order cycle time/ customer service improvement •Inventory reductions •Reduced information systems costs on an ongoing basis •Improved business management through worldwide integration and information Vendors Inbound Manufacturing Transportation Distribution Logistics Delivery Customer Consumer Logistics and Distribution Sales & Customer Service 18 December 2012 .

Major ERP vendors   SAP R/3 Peoplesoft    Oracle Baan JD Edwards 18 December 2012 .

What results can be expected from an “ERP culture”? q Reduced working capital requirements q Improved customer service q Improved direct labour productivity q Reduced purchase costs ERP q Reduced obsolescence q Reduced overtime q Having the figures to make decisions q Having accountability throughout the organization q Improved quality of life 18 December 2012 .

SAP R/3 Overview Systems Applications & Products in Data Processing 18 December 2012 .

000+ employees Trained consultants doubled since 1996 (40.000) About 20.000 companies in 120 countries Around 64.500 installations of SAP Strength lies in its high degree of integration. global corporate enterprises – Significant presence in Global Fortune 500 companies 18 December 2012 . mainly for large.SAP AG – At a Glance Founded in Germany in 1972 Market Leader in Industrial Enterprise Application (IEA) About 56% market share in the ERP market Worldwide presence in over 50 countries 18.

R/2 • The R/1 system – Developed for ICI Chemical – Released 1972 – Focused on Sales & Distribution and Materials Management – Discontinued after release of R/2 • The R/2 system – Reorganized as leading mainframe software for large multinational corporations – No sales effort planned – reactive only – 4. co-existence and migration strategy underway for R/2 and R/3 R/2 Basis System 18 December 2012 .300 copies worldwide in 1993 – Mainframe-based to replace user legacy software.SAP R/1 .

QM Plant Maintenance Client/Server PS PM ABAP/4 WF Workflow Human Resources Project System IS Industry Solutions 18 December 2012 . SD Financial Accounting FI MM Product Planning PP R/3 HR CO Controlling TR Treasury Quality Mgmt.SAP R/3 : A comprehensive business solution Sales & Distribution Materials Mgmt.

storage and retrieval of data form the Database Layer 18 December 2012 .SAP R/3 : 3 Tier Architecture The Presentation Layer Those SAP R/3 software components that specialize in interacting with end-users form the Presentation Layer. The Database Layer Those SAP R/3 software components that specialize in the management . The Application Layer Those SAP R/3 software components that specialize in processing business applications form the Application Layer.

18 December 2012 . Application servers: Specialized systems multiple CPUs and vast amounts of RAM.SAP R/3 : 3 Tier Architecture Presentation Layer components reside in: Application Layer components reside in: Database Layer components reside in: Presentation servers: Systems capable of providing a graphical interface. Database servers: Specialized systems with fast and large hard drives.

The Database Layer components are installed on high-end database server. The Application Layer components are installed across one or more highend servers.SAP R/3 : 3 Tier Architecture Presentation Layer components are installed across many PCs. 18 December 2012 .

SAP R/3 Overview Sales & Distribution Materials Mgmt. SD Financial Accounting FI MM Product Planning PP R/3 HR CO Controlling TR Treasury Quality Mgmt. QM Plant Maintenance Client/Server PS  PM ABAP/4 WF Workflow Human Resources Project System IS Industry Solutions 18 December 2012 .

Integration All business processes throughout the supply chain are executed in one system sharing all information SAP R/3 S U P P L I E R Workflow C U S Procurement Production Distribution T O M E R MM PP Finance and Accounting FI CO SD 18 December 2012 .

SD 18 December 2012 . . . . . . . .SD: Sales and Distribution SAP R/3 Sales & Distribution .

SD Overview SD Inquiry Quotation Materials Planning Sales Order Production Purchasing Pricing Delivery to Customer Picking Goods Receipt Packing Goods Issue Invoicing Transportation Customer Stock 18 December 2012 .

Optional - (Documents) .Optional - Create Invoice FI/CO/PA .Create transportation work list .Estimate delivery schedule .Optional 18 December 2012 (Activities) .Process Chain: Sales Distribution Sales/Distribution Chain Inbound Logistics from Materials Management Sales Order & Distribution Process Outbound Logistics to Customer Receive Payment FI Support Customer Sales (Customer Info Analysis) .Create loading work list Issue Goods (Ship Product) FI MM Process Customer Inquires .Check credit Create Delivery Note Provide Customer Quotations .Create pick list .Determine conditions of sale - Create Sales Order FI/CO/PA MM PP Support Customer Agreements .Optional - Check product availability .Determine pricing .

Order Entry PP MM FI FI Credit Management Dynamic Availability Check Cash Forecast ? OK 18 December 2012 .

Delivery/Shipment Processing FI Ship to party: C100 Item Material Qty 10 6301 10 20 6412 10 30 1507 25 . . . . MM WM MM Credit Management Static Availability Check Delivery Note Picking List Picking Packing Transportation 18 December 2012 .

Picking/Packing Sales Order Delivery Picking without Picking Confirmation Print Picking List Picking with Picking Confirmation Picking Request Confirm Picking Request Picking Confirmation Goods Issue 18 December 2012 .

Invoicing CO PA CO PCA Profit Center Accounting/Profitability Analysis Accounts Receivable/General Ledger Cash Forecast Single Invoices Collective Invoices Invoice Lists Credit/Debit Notes FI FI EDI 18 December 2012 .

MM Overview SAP R/3 •Materials Management . MM 18 December 2012 . .

.MM Overview MM Material requirement planning External procurement Internal procurement Purchasing Invoice verification Goods receipt Production Master data Material Batch Vendor Customer G/L Storage bins .. 18 December 2012 Warehouse management Inventory management Goods issue Transfer posting Internal and external accounting Sales and distribution .

Material .Central Master “Record” for Logistic 456 Inventory Purchasing Desc:--------------------- 123 Inventory Quality Sales Information Production Information Desc:--------------------- Raw Material .123 18 December 2012 .456 Product .

Data in the Vendor Master Maintenance Level Purchase Organization Company Code • Mandatory maintenance at the Purchasing Organization Level • Optional Maintenance at the Plant Level. the Vendor Sub-Range Level or a combination of the two Client General Data Address Phone and Fax Number Control Data Purchasing Data Terms of Payment Contact Person Minimum Order Value Account Data Payment Terms Payment Method Accounting Clerk 18 December 2012 .

External Procurement Environment Requirement Determination Source List Quota Arrangement Purchase Requisition RFQ Quotation Outline Agreement Source Determination Vendor Selection Purchase Order Price History Purchasing Data Info Record Goods Receipt Invoice Receipt 18 December 2012 .

Goods Movement Ad hoc. Goods Receipt Delivery Inventory Production Inventory Transfer Posting Goods Issue Consumption Samples Goods Issue Sales Order 18 December 2012 .

.. Blocked Invoice Release of Blocked Invoice Invoice Verification Delivery Invoice Preliminary Posting Automatic Price Update 18 December 2012 .g.Invoice Verification CO FI Orders / Projects /Cost centers G/L accounts / Accounts payable Payment OK ! Vendor 3 Vendor Vendor invoice invoice Tolerance Check? e.

PP Overview SAP R/3 •Production Planning . . PP 18 December 2012 .

Production Planning Cycle Sales and Operations Planning Master Production Scheduling PP Master Data Material Master Bill of Materials Work Centers Routings PRT Sales & Distribution Demand Management MRP MRP List Production Order Cycle or Purchase Order Cycle Materials Management Capacity Planning Plant Maintenance Costing 18 December 2012 .

Production : Process Chain Production Chain Inbound Logistics from Procurement or Production Chain Manufacturing Process Outbound Logistics to Materials Management or Sales Chain Archive/Delete Order Settle Production Order FI CO Transfer Produced Goods to Inventory FI Confirm production of goods is completed Produce Goods Determine Production Requirements via MRP Output or Manually) Create production order (via conversion of planned order to production order or manually) Check material availability (Automatic) Release Production Order Print shop floor papers (actual workorders) Withdraw materials from inventory (automatic/manual) MM 18 December 2012 .

MRP 5. Production Planning Functionality 2. Production Order & Capacity Planning 18 December 2012 .Production Planning 1. Sales and Operations Planning & Demand Management 4. Master Data 3.

Qrt Bill of Material Explosion Capacity Planning Lot Sizing Procedures Net Change 18 December 2012 . Qrt 4.000 Stochastic Deterministic Planning Demands 3.Material Requirements Planning Demands Quantity: 12.

MRP .Planning Procedures Planning Procedures Deterministic MRP Consumption-Based Planning Forecast-Based Planning Reorder Point Planning Automatic Reorder Point Manual Reorder Point 18 December 2012 .

Production Control MM FI CO Goods Issue Costs Open Production Order Release Production Order Planned Orders 18 December 2012 .

. QM 18 December 2012 .QM Overview SAP R/3 •Quality Management .

inspection. procurement R/3 Quality Mgmt.QM Overview QM  The QM application module is a FI SD Sales & qualityFinancial control and information Accounting Distribution system supporting quality CO MM Materials Controlling Mgmt. QM PS Project System PM Plant Maintenance WF Workflow HR Human Resources IS Industry Solutions 18 December 2012 . planning. and control PP AM Product Fixed Assets for manufacturing and Planning Mgmt.

QM in Logistics •History-dependent intensity of quality inspections QM Goods receipt Production • Inspection during production • Defects recording in QM • Control charts Goods issue • Quality management in SD (certifies quality) 18 December 2012 .

PM Overview SAP R/3 •Plant Maintenance . . PM 18 December 2012 .

WO’s Shop Papers Planned Work Orders External Services Parts/Supplies Material Requisitions Reporting Schedule WO’s Close and Settle WO 18 December 2012 .Plant Maintenance .Overview PM Master Data Pre-defined work steps Notifications Create Work Orders Emergencies Labor Special Tools Preventive/Predictive Maint.

Fi 18 December 2012 .FI Overview SAP R/3 •Finance . .

Components of FI FI General Ledger FI-GL FI-SL Accounts Receivable Special Ledger FI-AR FI-LC Legal Consolidation Accounts Payable FI-AP Asset Accounting FI-AA 18 December 2012 .

Group Level Area Company Code (Company) Legal Entity Controlling Controlling Controlling Controlling Area Area Area Area Controlling Level Plant Cost Centers Management Units Work Place/Job Material Product 18 December 2012 .Corporate Structure Financial Management Area Financial Management Area Financial Management Corp.

The Elements of Financial Accounting Foreign Exchange Management Business Analysis Finance Information System Executive Information System G/L Information System Cash Management and Forecast Multiledger Accounts Payable Invoice Verification Bank Accounts Payables General Ledger Extended General Ledger Accounts Receivable Credit Management 18 December 2012 Consolidation .

The Components of FI Configuration • Organizational Structures – Company Codes – Business Area • Organization of Accounting – Ledger/Sub-ledger • Chart of Accounts • Credit Control – Setting Credit Limits • Master Records – G/L Accounts – Customers – Vendors – Banks • Chart of Depreciation – Depreciation Areas – Assets • Extended General Ledger • Group Company • Number Ranges 18 December 2012 Functionality Documents/Transactions Fiscal Year Posting Adjustments Payment Terms Balance Sheets/Income Statements Foreign Currency Closings Taxes On-Line Display Special G/L Transactions Interest Calculation Planning Correspondence Payment Program Fixed Assets Reporting Analysis Legal Consolidations Modules General Ledger Special Ledger Accounts Payable Legal Consolidations Accounts Receivable Credit Management Asset Accounting Cash Management and Forecast Treasury FI .

CO Overview SAP R/3 •Controlling. CO 18 December 2012 . .

Planned • Profitability Analysis CO • Overhead Management 18 December 2012 .Components of CO CO CO Configuration Organization Structures Master Data Planning Setup Criteria and Values Valuation • Cost Center Accounting • Order and Project Acctg. • Product Costing • Activity-Based Costing • Product Costing • Budgeting • Profitability Analysis • Business Planning & Control Functionality • Settlement • Internal Orders • Open Item Management • Planning • Transaction-Based Posting • Periodic Allocations • Monitoring Actual Activities vs. • Transaction-Based Postings • Periodic Allocations CO Modules • Profit Center Acctg.

The Elements of Managerial Accounting Overhead Cost Controlling Cost Centers Overhead Cost Controlling Profitability Analysis PA Cost of Sales PCA Report Structure: Market Segment Region Division Cost of Period Report Structure: Profit Center GL Accounts Controlling 18 December 2012 .

Ledger Accounting Accounts Receivable Accounts Payable Cash Management Chart of Accounts Management Accounting Overhead Cost Controlling Cost Center Controlling Actual Costing Static Standard Costing Product & Production Controlling Mass Production Continuous Flow Prod. Batch Production Make to Order Prod. CO Sales & Profitability Controlling Cost of Sales Accounting Period Accounting Account Revenue Flexible Standard Costing Order Controlling Central Line Items Project Controlling Central Documents Central Totals 18 December 2012 .Integration Within FI/CO FI Financial Accounting Asset Accounting Asset Accounting Investment Controlling Plant Maintenance Asset Accounting Gen.


Planned Requirement

Customer Order

MRP Requirement on component level


Planned Order


Purchase Order

Production Order


Goods Receipt Production completed Invoice Verification

Account Receivable

Order Settlement

Accounts Payable

Which modules are involved?
18 December 2012

SAP R/3 : Components
Application Master Data Transaction Data

ABAP Programs
Organization Structure Configuration Key Data Elements Functionality Configurations
18 December 2012

What is Customization ?

• the adaptation of application software to customerspecific needs is accomplished in two ways :

Programming customer-specific code that replaces or complements components of the application

Configuration Rendering the application appropriate to a specific
customer by specifying data on which the application operates

18 December 2012

Organizational Structures in R/3 Organizational Units Cost Accounting Client Controlling Areas External Logistics Accounting Company Codes Sales Organizations Purchasing Organizations Internal Logistics (MRP/Production) Valuation Areas Plants Inventory Management Storage Locations/Batches/Special Stocks 18 December 2012 .

Organizational Structure in SAP R/3 Production Planning Financial Accounting Company Code Plant Controlling Controlling Area Sales and Distribution Sales Area Client Human Resources Personnel Area Materials Management Purchasing Organization 18 December 2012 .

ABAP programs communicate with the database management system of the central relational database (RDBMS). and with the graphical user interface (SAPgui) at presentation level. and run within the application layer of the R/3 System.ABAP Programming SAP R/3 applications are written in the ABAP programming language. 18 December 2012 .

Why we need ABAP Developments? SAP Solution SAP R/3 scope 18 December 2012 .

SAP Solution SAP R/3 scope Specific company requirements 18 December 2012 .

SAP Solution SAP R/3 scope Specific company requirements New Functionality Development 18 December 2012 .

SAP Solution SAP R/3 scope Specific company requirements New Functionality Development Non SAP applications 18 December 2012 .

Types of ABAP Developments • Reports • Interfaces • Conversions • Enhancements • Forms •Workflow 18 December 2012 .

18 December 2012 .

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