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R/3 Overview

Purpose of Overview
 Provide an introduction to the SAP R/3 system  Explain the system’s functionality  Introduce SAP R/3’s approach to business processes

SAP R/3 Pre-Configured Client (PCC)
SD
Sales & Distribution

FI
Financial Accounting

MM PP
Materials Mgmt. Production Planning

CO
Controlling

AM

R/3
Client / Server
PM HR
Human Resources

Fixed Assets Mgmt.

QM
Quaity Manage-ment

PS
Project System

Plant Main-tenance

WF
Workflow

IS
Industry Solutions

and billing. Quotation processing Sales order processing Delivery processing Billing Reporting .SAP R/3 Application Modules Sales and Distribution (SD)  The SD application module helps to optimize all the tasks and activities carried out in sales. delivery.

SAP R/3 Application Modules Materials Management (MM)  The MM application module supports the procurement and inventory functions occurring in day-to-day business operations. Material procurement Reorder point processing Inventory management Invoice verification Material valuation .

SAP R/3 Application Modules Production Planning (PP)  The PP application module is used to plan and control the manufacturing activities of a company. Bills of Material (BOM) Routings Work centres Master Production Scheduling (MPS) Material Requirements Planning (MRP) Production Planning Execution Production orders Product costing Repetitive manufacturing .

accounts payable. General ledger Accounts payable Accounts receivable Special Purpose Ledger .SAP R/3 Application Modules Financial Accounting (FI) The FI application module is designed for automated management and external reporting of general ledger. accounts receivable. and other subledger accounts with a pre-defined chart of accounts.

SAP R/3 Application Modules Controlling (CO)  The CO application module represents the company’s flow of cost and revenue  CO is a management instrument for organizational decisions Cost centre accounting Internal orders Product costing analysis Profit centre accounting .

SAP R/3 Application Modules Asset Management (AM)  The AM application is designed to manage and supervise individual aspects of fixed assets Traditional asset accounting Asset replacement Depreciation Capital orders .

Benefits of the system SAP •Integrated .

and a common business language Simplified business processes enhance productivity to allow focus on value added activities Data has to be entered only once and all related information is updated automatically Integrated applications instill confidence in information and eliminates need for redundant analysis and reconciliation . standard data definition.SAP and Integration The value of Integration: Integrated systems enable simplified business processes.

CO. CO . CO. QM MM. FI. FI. PP MM. FI. FI. MM. CO. SD.Integrated & Process Driven Purchas e Order Goods Receipt Manufacture Product Delivery MM.

. Even if your business is geographically spread out. all processes and procedures. SAP is able to operate across the physical distance seamlessly.SAP •Enterprise-Wide This means that if fully implemented. it is able to “run” the business.

The developers have tried to include as many generic processes that would cover the entire business cycle that a company may require in all of its day-today operations.SAP •Best Business Practices SAP utilizes known and proven business and industry practices to achieve its goals. .

. to translate transactions entered in one currency to another. Once a company is set up. but they are translated internally automatically into the “home” currency. Any changes in currency valuation are also picked up and the necessary gain or loss on currency valuation accounts updates automatically. Other currencies may be used in the entering of business transactions (eg. it is given a “home” currency in which it stores its amounts. invoice entry). as often as required.SAP •Multi-Currency SAP is able to use different currencies at the same time. SAP uses a table of currency rates that may be updated by the firm at any time.

When logging onto the system. English and Spanish.eg. The system has a built-in language translator that will translate items into the desired language. A default language is normally set when the system is installed.SAP •Multi-Lingual SAP is multi-lingual ie. a user is asked which language he/she would like to work in. automatically. Toronto and Mexico City can be used simultaneously in French. . you can have different users logged onto the same system in different languages all at the same time. A SAP system implemented in Montreal.

•Secure Information

SAP

The SAP system uses different levels of security to ensure that its data is kept secure. User sign-on and passwords are the first level. Authorizations allowing entry into only certain screens and the type of access onto certain screens form the next tier. eg. a user may have entry access to the invoice screens, but he may only display invoices and not add, change or delete invoices. Users with like access requirements are grouped together using profiles. Profiles themselves may be grouped together forming composite profiles. The third level of security is field level security. Various screens can be customized to allow access to certain fields where data can be entered and other fields that are display only.

SAP GUI: Graphical User Interface
Operates on the WYSIWIG principal (What you see is what you get). It is a point & click system.

Concepts and Features  System-wide Concepts  System-wide Features are used to logically, safely, and flexibly organize the data a business uses • Organizational Elements • Master Data • Security

The process of determining the organizational structure is critical to the SAP implementation project. and Sales and Distribution.. Defines the legal and organizational structure of a company from different points of view Includes flexible organizational units for creating a comprehensive company structure Links different application areas in the R/3 system to create an integrated company structure The different points of view include: Financial Accounting. Everything depends on the hierarchy decisions that are made. Materials Management. .Organizational Structure The fundamental data and functional architecture of the R/3 system..

Master Data Customer Master Purchasing ? Vendor Master RFQ Quotation Vendor G/L Account Master Client Chart of Accounts A G/L Account Bal sheet acct Account group . CAD X X . . BANK X FIN. . Chart of Accounts B Material Master Company Codes CC 0001 Currency Line item Display . USD CC 0003 Currency Line item Display . .

The Material Master SAP R/3 Purchasing Material Master Record Central repository of material data for all areas within logistics: Finished Products Semi-finished products Raw materials Consumables Marketing Materials Sales Order Processing 1998 Invoice Verification Production Planning Inventory Management .

.System-wide Features Security:  Profiles  Objects  Authorization Objects describe various business and system-related groupings such as accounting documents. You choose relevant profiles for your users from the delivered SAP profiles. customer and vendor accounts. Profiles are a collection of objects used to control system access privileges. Security authorizations assign profiles to users to determine what privileges they have within an object or group of objects. Users may access only the objects assigned to them.

) . responsibility etc.Authorization Groups There are pre-defined authorization groups which have been established for the PCC. They are for unit and integration testing They can be modified to meet your needs (new hires. The pre-defined authorization groups are based on roles and responsibilities.

SAP Reporting SAP Standard Reports? .

Goods Issue Finished Goods Receipt Warehouse . Planning Demand Independent Requirements Purchase Orders Dependent Requirements Production Orders 3 Purchasing Requisitions Purchase Orders Goods Receipt Planned Orders 4 Production Orders Raw Mat.Business Process Overview 5 A C C O U N T I N G Sales Processing 1 Forecast 2 Material Requirements Planning Capacity Req.

ERP : Overall picture by computerized functions DISTRIBUTION ACCOUNTING MANUFACTURING HUMAN RESOURCE .

Business Process Versus Computerized Functions FI& CO A C C O U N T I N G Sales Processing Forecast SD Material Requirements Planning Capacity Req. Goods Issue PP IM Warehouse IM Finished Goods Receipt . Planning Demand Independent Requirements MRP Dependent Requirements Purchase Orders CRP Planned Orders Production Orders Purchasing Requisitions Purchase Orders Goods Receipt PO Production Orders Raw Mat.

Expected Benefits of ERP • Top Management – Simulate the Future before making a Decision – Operate on One Game Plan – Improved Performance Reporting • Engineering – A Simple way to tie Engineering and Manufacturing Priorities – Improved Design Control •Sales and Marketing – Better Customer Deliveries through Improved Planning – More Accurate Delivery Promises .

and concentrate on sourcing and negotiating – Improved request control and approval • Manufacturing – A way to Have All the Facts when faced with though decisions – A way to plan ahead.Expected Benefits of ERP • Purchasing – A way to reduce expediting . rather than expedite a losing battle .

– Improved Data Accuracy • Personnel – A way to reduce on-the-job frustrations associated with constant expediting – A Chance for everyone to see their efforts count – A move away from numbers posting to a setting of achievable plans .Expected Benefits of ERP • Finance – Integrated Operating and Accounting Data.

Account Payables. Asset. etc) HUMAN RESOURCE . Shop Flor Control.ERP : Overall picture by computerized functions DISTRIBUTION (Sales. Distribution. Inventory Purchase. etc) ACCOUNTING (General Ledger. Capacity Requirement Planning. Account Receivables.etc) MANUFACTURING (Material Requirement Planning.

Main SAP Modules and Integration .Sales & Distribution .

AM Fixed Assets Mgmt. PP Production Planning R/3 Client / Server ABAP/4 OC IS HR Human Resources CO Controlling QM Quality Mgmt. PS Project System Office Comm PM Plant Maintenance Industry Solutions .Sales and Distribution SD Sales & Distribution FI Financial Accounting MM Materials Mgmt.SAP R/3 Functionality .

Sales Cycle Sales Order Receive Payment Credit Check Goods Issue Billing Document .Business View .

Sales and Distribution Master data S A L E S I N F O S Y S T E M Sales Support  Competitors  Sales activities  Direct mailing campaigns  Business partners  Material Bills of material Product proposals Sales  Customer inquiry  Customer quotation  Order processing – Orders – Scheduling agreements – Contracts MM PP PM CO FI PS  Customer-materialinfo record  Equipment  Classification  Texts Materials Management Production Planning Plant Maintenance Controlling Financial Accounting Project System Shipping  Picking  Packing  Transportation FI MM  Conditions  Sales taxes  Statistics WM Inventory Management Creditworthiness Warehouse Management Billing FI  Single invoice  Collective invoice  Invoice list  Credit/debit memo CO PA Accounts Receivable Controlling Profitability analysis .SAP R/3 Functionality .

SAP R/3 Functionality – Sales and Distribution Integration SD Business Process Flows in SAP Order Processing SD Inquiry Quotatio n Order Delivery Goods issue Billing documen t Sales orders Update demand Management ATP Update Update Financials Run MPS/MRP PP Inventory Management FI/CO MM .

Main SAP Modules and Integration .Material Management .

Material Management SD Sales & Distribution FI Financial Accounting MM Materials Mgmt. PP Production Planning R/3 Client / Server ABAP/4 OC IS HR Human Resources CO Controlling QM Quality Mgmt. AM Fixed Assets Mgmt. PS Project System Office Comm PM Plant Maintenance Industry Solutions .SAP R/3 Functionality .

Business View .Procurement Cycle Purchase Requisition Request For Quotation Vendor Payment Purchase Order Invoice Receipt Goods Receipt .

Business View .Goods Issue ----- From Warehouse Goods Issue From Consignment Stores Consumption Cost Centre Asset Sales Issue Sample Scrap .

Production Planning Quality Mgmt. FI    Cycle counting Physical inventory Movements PP CO QM Financial Acctg. Inventory mgmt.Material Management MRP  BOM Lot-sizing FI PP PP SD Production Planning Sales & Distribution Master data L O GI S T I C S I N F O S Y S T E M  Purchasing    Financial Acctg.SAP R/3 Functionality . Production Planning Controlling Quality Mgmt. Requisition Order Creation Invoice verification CO AM  Vendor data  Material Material types Bills of material Product proposals  Equipment  Classification  Texts  Conditions  Purchasing info records Receiving   QA Inspection QM FI PP Financial Acctg. . Production Planning Controlling Fixed Assets Mgmt.  Valuation Warehouse mgmt.

SAP R/3 Functionality – Material Management Integration : Purchasing MRP Planned Order RFQ (Request For Quotation) Purchase Requisition Manual Creation Purchase Order Goods Receipt Update Financial (see the Example slides) Invoice Verification M a t e r i a l M a s t e r .

SAP R/3 Functionality – Material Management Integration : Material Master Production Planning Sales & Distribution Inventory Management on a Quantity & Value Basis Purchasing Production Material Product Costing Quality Management Plant Maintenance Invoice Verification Material Requirements Planning .

------.----.-----..00 . Consumption 80..-------. G/L accounts (GL Module): Stock account Consumption accnt..00 Inventory 80..SAP R/3 Functionality – Material Management Integration : Goods Issue Material ----. Point of Consumption (CO Module): Cost centre Order .----------..--------- MateriaL Reservation Accounting Document Posting of Goods Issue Material Document Stock quantity Consumption statistics .

Production Planning .Main SAP Modules and Integration .

PS Project System Office Comm PM Plant Maintenance Industry Solutions . PP Production Planning R/3 Client / Server ABAP/4 OC IS HR Human Resources CO Controlling QM Quality Mgmt. AM Fixed Assets Mgmt.SAP R/3 Functionality .Production Planning SD Sales & Distribution FI Financial Accounting MM Materials Mgmt.

Production Cycle Sales Order or Sales Forecast Finished Goods Issued for Sales Production Planning (Material. Capacity) Finish Goods Received to Store Material Issued from store Production Control .Business View .

SAP R/3 Functionality . Inventory Management Warehouse Management Controlling Quality Mgmt. Production Activity (Shop Floor) Control   Production Order Creation Production Order Confirmation CO QM Product Costing .Production Planning Master data P R O D U C T I O N I N F O S Y S T E M Sales & Operations Planning   Product Group Sales Plan SD Sales & Distribution  Material  Bills of material  Work centers  Routings  Documents  Production resources/ Tools(PRTs)  Inspection plan/ characteristics Production Planning/MPS  Master Production Scheduling MRP   BOM Material Requirement Planning Capacity Evaluation Capacity Dispatching and leveling MM FI Capacity Planning   Financial Acctg.

SAP R/3 Functionality – Production Planning Integration Production Planning in SAP R/3 Organization Structure for Production Planning Basic Client “ Holding Data Company” Company Code “Legal Reporting” Plant MRP “Productio DATA n Site” Storage LocationStorage “Inventory Data Management” Material Master CO (See next Costs Calc. MPS Transfer MRP List Withdrawal Material Back Flushing Yes/No? Costs Settled Archive/ Order settlement Delete FI CO Order processing Production Plan Manual Sales OrderSD Make to Order Production Planning Data            Forecast Cons. . Stock Updating MM SOP SIS Transfer Demand Mgmt. CO Planned Order Page) “Order Proposal” Order creation Availability check MM Manual/Automatic Rough Cut Planning Sales Plan Transfer Stock Requirements Overview In-house Production MM Stock Items Time Tickets Reservation Withdrawal Slips CO Order Shop Floor Release Paper Printing Load in the WC Acc. History MM Purchase Requisition Material Master Bill of Material (BOM) Routings Work Centers Production Resources/Tools (PRT) Capacity Engineering Change Management (ECM) Classification Product Costing Material Requirements Planning Manufacturing Resources Planning External Procurement (See MM module) Manual/Automatic CO Planned order Purchase req. Source Determination Vendor selection Net Price Comparison FI Invoice Receipt RFQ FI Quotations Payment Invoice Verification Purchase order FI Goods Receipt Manual Information contained in this chart is not all-inclusive. MM FI SD Inward Stock Mvt. Data COPA SD Forecast Manual Planned Order MRP MM FI CO Completion Partial/Milestone conf.

SAP R/3 Functionality – Production Planning Integration : In house Production In-house Production Time Tickets Withdrawal Slips Shop Floor Paper Printing Costs Calc. Partial/Full MM FI SD Order processing Withdrawal Material Back Flushing Yes/No? Costs Settled Order settlement FI CO Archive/ Delete Inward Stock Mvt. CO Reservation Availability check CO Order Release • FI – Account Postings Planned Order Order creation “Order Proposal” MM MM Stock Items Manual/Automatic Load in the WC • CO – Order Cost Calculation – Order Settlement CO FI Completion conf. Stock Updating MM .

SAP R/3 Functionality – Production Planning Integration : In house Production In-house Production Time Tickets Withdrawal Slips Shop Floor Paper Printing Costs Calc. CO Reservation Availability check CO Order Release • MM – Material Availability Check – Goods Movements Planned Order Order creation “Order Proposal” MM MM Stock Items Manual/Automatic Load in the WC CO FI Completion conf. Stock Updating MM . Partial/Full MM FI SD Order processing Withdrawal Material Back Flushing Yes/No? • SD – ATP Quantity Costs Settled Order settlement FI CO Archive/ Delete Inward Stock Mvt.

Main SAP Modules and Integration .Financial Accounting and Asset Management .

SAP R/3 Functionality Financial Accounting and Asset Management SD Sals & Distribution FI Financial Accounting MM Materials Mgmt. PS Project System PM Plant Maintenance OC IS Office Comm Industry Solutions . AM Fixed Assets Mgmt. PP Production Planning R/3 Client / Server ABAP/4 HR Human Resources CO Controlling QM Quality Mgmt.

SAP R/3 Functionality Financial Accounting and Asset Management MM MM Master data E X E C U T I V E I N F O S Y S General Ledger  Financial Statements  Account Analysis  Multi-currency  Taxation CO SD Materials Management Controlling Sales and Distribution Chart of Accounts Company Codes Business Areas Credit Control Areas  Assets Depreciation Areas Accounts Payable  Account Analysis (I/C)  Payments History FI MM Inventory Management Vendor Payments Intercompany Reconciliation Accounts Receivable  Account Analysis (I/C)  Credit MM SD FI Cash Management  Cash Plan  Cash Forecasting Inventory Management Customer Billing Credit Worthiness Intercompany Reconciliation Asset Management  Asset Values  Depreciation Forecast  Additions  Retirements CO PP FI PS Purchasing Controlling Financial Reporting Project System .

Main SAP Modules and Integration .Controlling .

SAP R/3 Functionality . PP Production Planning R/3 Client / Server ABAP/4 OC IS Office Comm Industry Solutions CO Controlling QM Quality Mgmt.Controlling SD Sals & Distribution FI Financial Accounting MM Materials Mgmt. AM Fixed Assets Mgmt. PS Project System PM Plant Maintenance HR Human Resources .

SAP R/3 Functionality .Controlling Master data E X E C U T I V E I N F O S Y S Profit Center Accounting MM MM  Financial Statements  Management Account Analysis  Multi-currency SD Materials Management Sales and Distribution Controlling Areas Cost Center Accounting CO MM Profit Centers Cost Centers Operating Concerns  Cost Center Expense  Planning  Budgeting FI Inventory Management Allocations Fixed Asset Management Internal Orders  Project Tracking  Planning  Budgeting CO PS AM PA Allocations Project System Fixed Asset Management Profitability Analysis Profitability Segments Profitability Analysis PS SD  Profitability CO Sales and Distribution Project System Internal Orders Cost Center Accounting .

SAP ERP : R/3 Product Suite SD Sales & Distribution FI Financial Accounting MM Materials Mgmt.Summary . PP Production Planning R/3 Client / Server ABAP/4 HR Human Resources CO Controlling QM Quality Mgmt. AM Asset Mgmt. PS Project System PM Plant Maintenance OC IS Office Comm Industry Solutions .

Marketing CRM Customer Relationship Management C u s t o m e r Enterprise Portals Enterprise Portals .Enterprise Portals Strategic Enterprise Management (SEM) Analytical Application (AA) Enterprise Portals S u p p l i e r Business Information Warehouse (BW) APO Supply Chain Management Enterprise Resource Planning (R/3) Product Life Cycle Management (PLM) E – Procument Enterprise Buyer E .

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