Let’s Simplify

SAP Overview
28th June 2011

©2008 Tata Communications, Ltd. All Rights Reserved

             Why SAP SAP R/3 Solution Overview of SAP ERP Architecture of SAP System Landscape at TATA Communications SAP Basic Terminology How to start the SAP System How to create the shortcut of transaction code. SAP Icons Used. Navigation to access the transaction code. Organization structure & definition. Introduction to Material management in SAP Common SAP MM transaction codes.

 Masters in SAP MM with example.


Why SAP?
Major ERP solutions available today: 􀂄 􀂄 􀂄 􀂄 􀂄 􀂄  SAP (Systems Applications & Products in Data processing) Oracle J.D Edwards PeopleSoft Siebel Systems Microsoft dynamics SAP is the leading Enterprise Information and Management Package worldwide with Market capitalization of more than 65% in the ERP space.

With around 75,000 customers in over 120 countries and a market share of 60 billion dollars they stand out from the pack.

An overview of ERP & SAP ERP – Enterprise resource planning “An Enterprise resource planning software attempts to integrate all departments and functions across a company onto a single computer system” 3 .

EC Client / Server ABAP/4 PS Enterprise Controlling Project System WF Workflow HR Human Resources 4 . CO Controlling Production Planning AM Service Management QM Quality Management PM Plant Maintenance R/3 India Version Fixed Assets Mgmt.The R/3 Solution SD Sales & Distribution FI Financial Accounting MM PP SM Materials Mgmt.

customer relationship management (CRM). and supplier relationship management (SRM)  In 1972. SAP was founded by 5 former IBM employees in Mannheim. having headquartered in Walldorf.SAP Overview – Definition / History / Versions  SAP (Systems. Germany. Applications and Products in Data Processing).  It’s a software designed to help companies execute and optimize business and IT strategies. product life‐cycle management.  SAP defines business software as comprising enterprise resource planning (ERP) and related applications such as supply chain management (SCM). 5 . Germany.

6 . ABAP was an important foundation of the system as it was used to develop the R/3 platform. It was renamed SAP ERP and later again renamed ECC (ERP Central Component). SAP R/3 was officially launched on 6 July 1992.SAP Overview – Definition / History / Versions  The very 1st version which came into market was the "R/1 system. The programming language ABAP (Advanced Business Application Programming) was a derivative of R/2. SAP R/3 was introduced to the market. Where “R” stands for real‐time data processing  Later Stage R/1 evolved into SAP R/2.  By the 1990s.

6. R/3 means three layers are installed in Different system/server and they are connected with each other.6. The newest version of the suite is SAP ECC 6.0 R/3 stands for real-time three tier architecture.0. 3.0. 4.4.7. 5. This is the kind of architecture SAP R/3 system has.  There are different versions in SAP like – the path to SAP Business Suite 7.SAP Overview– Definition / History / Versions SAP ECC 5. 1) Presentation 2) Application 3) Database 7 .4.0 ERP is the successor of SAP R/3

UNIX.SAP Overview– Definition / History / Versions  Operating System:Windows. Linux  Data Base: Oracle & SQL Server 8 .

. Golden. this is a very neat and clean client and you cannot use it for rough usage).DEV would have multiple clients. Training. QAS and PROD. ex: Sandbox. SAP is divided into three different landscapes DEV. . Whenever you think you are satisfied with your configuration and you think you can use it moving forward. 9 . Unit Test. ex: Integration Test. you RE-DO it in the golden client (remember.  Whatever you do in the Sandbox doesn't affect the other servers or clients.  .QAS may again have multiple clients.SAP Landscape  Landscape is like a server system or like a layout of the servers or some may even call it the architecture of the server’s viz.PROD having only one client.

 In summary: Landscape: is the arrangement for the servers DEVELOPMENT ---> QUALITY ----> PRODUCTION DEVELOPMENT: is where the consultants do the customization as per the company's requirement. This is a configuration only client. The configuration remains in sync between these two clients. you have all the configuration in the Testing client. A request will flow from DEV->QAS->PRD and not backwards. PRODUCTION: is where the live data of the company is recorded. just as it is in the Golden client. 10 . Use a successful transport by the Basis guy.SAP Landscape  Any transaction should not run or even use the SAP Easy Access screen on the 100 (golden) client. QUALITY: is where the core team members and other members test the customization.

SAP Landscape 11 .Tata Communications .

The SAP GUI is the software on your computer or local server that allows you to connect to one or more of the SAP environments. and is be used for learning examples. If you enter data into one environment. you will not be able to see that information in another environment GUI: Graphical User Interface. but not real-time data.Basic SAP Terminology Environment: A completely self-contained version of the SAP database. real-time data while a non-production environment such as the practice environment holds valid. 12 . A Production environment contains live. Separate environments do not exchange information. designated for a specific purpose.

vendor. or G/L account. but not create or change. but also specific information. master data is reference data that you will look up and use. e. a cost object. a vendor master record contains not only general information such as the vendor’s name and address. For example. desks belong to the material group 1920 Furniture and Furnishings. Generally for end users. Material Group: Material Groups are codes that classify goods and services by commodity or service type and are used by the Procurement Office for reporting purposes. 13 . For example.Basic SAP Terminology Master Data: Master data is a collection of information about a person or an object. such as payment terms and delivery instructions.g.

Basic SAP Terminology User Profile: The collection of authorizations a user or set of users has been granted in order to perform transactions related to their jobs. For example. 14 . A transaction code may contain letters only or a combination of letters and numbers. Transaction Code: A unique command that tells the location of a system task. the transaction code for Display Purchase Requisition is ME53. requisitions. someone designated as a requester might only have the ability to create and change. but not approve. For example.

and WBS (Work Breakdown Structure) Element (see below for definition). 15 . Internal Order: A non-sponsored Cost Object (for example. In SAP there are three types of cost objects: Cost Center. funding from the MIT Provost) used to track costs over periods other than fiscal years. Internal Order. such as a research project.Basic SAP Terminology Cost Object: A Cost Object collects expenses and revenues for a particular purpose. Cost Center: General or operating Cost Objects are known in SAP as Cost Centers. Internal Orders are often created to track gifts or endowments at MIT. Cost Centers are budgeted on the fiscal year.

the term Cost Element is used. G/L Account: G/L accounts are also called Cost Elements in SAP. In the FI (Financial) module.Basic SAP Terminology WBS Element: WBS Elements are funded by outside sponsors and are used to track costs of a particular research project over the entire span of its activity. In the CO (Controlling) module of SAP. They are a classification by expense or revenue type. requisitions. the term G/L Account is used. such as gifts. 16 . They may also be created to track other sponsored activities. These terms are used interchangeably for reporting. and journal vouchers.

accounts receivable. 17 . accounts payable and other sub-ledger accounts with a user defined chart of accounts. It is a management instrument for organizational decisions. This connection means that the "books" are designed to reflect the real situation.Modules in SAP •FI Financial Accounting-designed for automated management and external reporting of general ledger. It too is automatically updated as events occur. As entries are made relating to sales production and payments journal entries are automatically posted. •CO Controlling-represents the company's flow of cost and revenue .

HR Human Resources--is a complete integrated system for supporting the planning and control of personnel activities. etc. reorder point processing.    18 . MM Materials Management--supports the procurement and inventory functions occurring in day-today business operations such as purchasing. inventory management. • PS Project System-is designed to support the planning. depreciation and investment management. These tasks affect the production plans. control and monitoring of long-term. Equipment must be services and rebuilt.Modules in SAP Contd… • AM Asset Management-designed to manage and supervise individual aspects of fixed assets including purchase and sale of assets. PM Plant Maintenance--In a complex manufacturing process maintenance means more than sweeping the floors. highly complex projects with defined goals.

Planned Requirement PP Customer Order MM MRP Purchase Requisition SD Planned Order Shipping Purchase Order Production Order Invoicing Goods Receipt Production completed Account Receivable FI Invoice Verification Order Settlement Accounts Payable FI CO 19 .

20 .

How to start the SAP System  Step 1 .Double click on Production Server 21 .Double click on SAP GUI Login Icon  Step 2 .

How to start the SAP System  Step 3 . User Name & Password 22 .Enter Client (300).

How to start the SAP System  Step 4 – SAP Main Screen will appear 23 .

How to create the shortcut of Transaction Code  For example you would like to create the shortcut of transaction code – ME51N in your desktop Step 1 – Enter T code in command window and press enter 24 .

How to create the shortcut of Transaction Code Step 2 – Click on shortcut button 25 .

How to create the shortcut of Transaction Code Step 3 .Select Location click on Next and Finish Button 26 .

How to create the shortcut of Transaction Code Step 4 – Click on the OK Icon Step 5 – Shortcut Icon is created on the desktop 27 .

SAP Icons- 28 .

SAP Icons- 29 .

SAP Icons- 30 .

MM02.Navigation through Menu – Material Master Example shown below – MM01. Change. MM03 – Create. Display Material Master 31 .

Display Purchase Requisition. ME53N – Create. ME52N.Navigation through Menu – Purchase Requisition Example shown below – ME51N. 32 . Change.

AC03. ML85. 33 .ML83.Navigation through Menu – Service Master & Service Entry Example shown below – ML81N.

XK02.Navigation through Menu – Vendor Master Example shown below – XK01.XK03 34 .

Defining Favourites in SAP Main Screen 35 .

Defining Favourites in SAP Main Screen


Use of Transaction Code SU53 in SAP

SU53 transaction helps to analyze the authorization error occurs while access the system.


Error / Warning / Information Messages in SAP System
Error Messages (E) These messages will appear in SAP system with RED Indicator. You cannot proceed or save your transaction without rectifying the error.. Warning Messages (W)

These messages will appear in SAP system with YELLOW indicator. It will allow to post the transaction.
Information Messages (I)

These messages will appear in SAP system during check or else if all the data maintained by user is correct.


Ltd. All Rights Reserved .PROJECT OASIS Let’s Simplify SAP Materials Management 28th June 2011 ©2008 Tata Communications.

No 1 2 3 4 5 6 7 8 9 10 11 12 13 T code MM01 MM02 MM03 ME51N ME52N ME53N ME54N ME55 ME21N ME22N ME23N ME29N ME28 Description Create Material Master Change material Master Display Material Master Purchase Requisition Creation Change Purchase Requisition Display Purchase Requisition Release Purchase Requisition Collective PR Release Purchase Order Creation Change Purchase Order Display Purchase Order Release Purchase Order Collective PO Release 40 .Commonly SAP MM Transaction Codes Sr.

Commonly SAP MM Transaction Codes 14 15 16 ML81N ML85 ML83 Service Entry Sheet Creation Collective Release Service Service entry sheet Print 17 18 19 20 21 22 23 24 25 26 AC03 AC05 MIGO MIRO MIR7 MB52 MB5T MBBS XK01 XK02 Service Master creation List of service master GRN/GI/Tr pso/Can Enter incoming Invoice Invoice Parking Stock Display Stock in Transit WBS Element wise stock Vendor Master Creation Change Vendor Master 41 .

Consumption. Issue.Commonly SAP MM Transaction Codes 27 28 29 30 31 32 33 34 35 36 37 38 39 XK03 MKVZ XK05 MK05 FK05 ME5A ME2L ME2N ME2K ME2M MIGO MBSM MB5B Display Vendor Master Report Vendor Master Block Vendor(centrally) Block Vendor( Pur Org) Block Vendor (Com Code) PR Report PO Report PO Report A/c Assignment wise PO Open PO(Select parameters) GRN Cancellation Report Cancel GRN Report Consumption(Op. 42 .

Valuation Class List of materials as per M type. No history Sr. Valuation Class 43 . m group.Commonly SAP MM Transaction Codes 40 41 42 43 44 45 46 47 48 49 50 51 MB02 MB03 MIR4 MB5S MR8M MIR5 ML84 IQ02 IQ09/ZIQ09 MB51 MB5L MCBE GRN Display GRN Display Display Invoice Pending Invoice against GRN Cancel Invoice Report vendor Invoice Report Service Entry Sr. Valuation type. No wise Material Stock Report Material document list List of Stock Value as per GL.

class and material wise Material list Vendor Release Release Blocked invoice Delivery address of plant Purchasing related T codes Material document related T codes Material master related T codes MM Related all std reports SAP std Reports in all modules 44 . class and material wise Total stock value (Valuation type.Commonly SAP MM Transaction Codes 52 53 54 55 56 57 58 59 60 61 62 MBBS MCBC MM60 FK08 MRBR MEAN ME00 MB00 MM00 MC00 SAP1 Total stock value (Valuation type.

Organization Structure in SAP 45 .

46 .Definition . Organizational unit within the R/3 System. Company code: Company code is the smallest unit in organization structure.Organization Structure Client: Client is highest organizational level in Hierarchy. are created at company code level. You can set up several company codes in one clients level. This level represents an independent accounting unit within a client. Master Records and Set of tables. with its own data. required by law. Balance sheet and Profit & Loss statements. The Client is a Commercial.

Furthermore. a plant must always be assigned to a company code. A plant is an organizational logistic unit that structures the enterprise from the perspective of production. 47 . Storage Location: The storage location is an organizational unit that allows the differentiation of material stocks with in a plant. plant maintenance and material planning.Definition . Physical inventory is carried out at storage location level. a plant must be assigned to one or more purchasing organizations. In SAP system. procurement.Organization Structure Plant: Plant can be a manufacturing plant in the true sense. or can represent a branch office or site within a company code.

The purchasing organization assumes legal responsibility for all external purchase transactions. Purchasing group: The purchasing organization is further subdivided into purchasing groups (buyer groups). You can have a combination of centralized and decentralized organizations. which are responsible for day-to-day buying activities 48 .Definition . You can incorporate purchasing into the company structure by assigning purchasing organization to company code and plants.Organization Structure Purchasing organization: Purchasing organization is an organizational unit responsible for procuring materials and services for one or more plants and for negotiating prices and terms of delivery with vendors.

Organization Structure in SAP 49 .Tata Communications .

Plant Specific Purchase 50 .

Cross Plant Purchase 51 .

Cross Company Purchase 52 .

Cross Company Purchase 53 .

Master Data in Procurement Process 54 .

Material Master Data 55 .

Material Master: Organization Level 56 .

Material Key 57 .

Material Type 58 .

Industry Sector 59 .

Unit of Measure 60 .

Purchasing Data 61 .

Material Type 62 .

Material Valuation Procedure 63 .

the material is always valuated at this price. the differences are posted to a price difference account. the standard price can be manually adjusted if the variance between standard and moving average gets too large. If a material is assigned a standard price. 64 . In this way. The variance is not taken into account in the valuation.Material Valuation Procedure The price control indicator “S” results in the following: • All inventory postings are carried out at the standard price • Variances are posted to price difference accounts • Variances are updated and stored in the moving average price for statistical purposes. If goods movements or invoice receipts contain a price that differs from the standard price.

Valuation of Goods Receipt .

Example – Posting at Standard Price (1) .

Example – Posting at Standard Price (2) .

Example – Posting at Standard Price (3) .

the price is automatically adjusted in the material master record when price variances occur. but they are possible. If a material is assigned a moving average price. the differences are posted to the stock account.Material Valuation Procedure The price control indicator “V” results in the following: • Goods receipts are posted at the goods receipt value • The price in the material master is adjusted by the delivered price • Price differences occur only in exceptional circumstances • Manual price changes are usually unnecessary. The moving average price and the value of the stock change. If goods movements or invoice receipts are carried out with a price that differs from the moving average price. 69 .

Example – Posting at Moving Average Price (1) .

Example – Posting at Moving Average Price (2) .

Example – Posting at Moving Average Price (3) .

Master Data – Vendor Master .

Master Data – Purchasing Info Record .

Ltd. All Rights Reserved .Thank you ©2008 Tata Communications.

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