ERP I SAP recap

8/8/2019 ERP I SAP recap

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Enterprise

Resource

Planning


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What is ERP?

facilitates company-wide integrated

information systems, covering allfunctional areas

performs core Corporate activities and

increases customer service augmentingCorporate Image

ERP is a solution, which

Ente

rprise

Resourc

e

Planning


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Why ERP?

For Management to know what is happeningin the company

For cycle time reduction

To achieve cost control

To shun the geographical gaps

To be Competitive

Ente

rprise

Resourc

e

Planning


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Streamlining business processes

Standardizing of various business processes

Eliminating duplication of data entry

On-line sharing of information for Decision Making

Bringing in transparency in our operations.

Expected benefits of ERP


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Industry Wide Advantages

Manufacturing Sector Speeding up the wholeProcess

Distribution and retail stores Accessing the

status of thegoods

Transport Sector Transmit commoditiesthrough online

transactions

Project Service industry Fastens thecompilation of reports


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MRPMRP

MATERIAL /MATERIAL /

INVENTORYINVENTORY

PURCHASE & STORESPURCHASE & STORES

EVOLUTION OF ERP

1970 1980 1990 2000

MRP IIMRP II

MRPMRP

+ MANUFACTURING / QLY+ MANUFACTURING / QLY

+ PLANNING+ PLANNING

+ FINANCE+ FINANCE

ERPERP

MRP IIMRP II

+ SALES & DISTRIBUTION+ SALES & DISTRIBUTION

+ MAINTENANCE+ MAINTENANCE

+ HR+ HR

+ PROJECTS+ PROJECTS

ERP : Enterprise Resource PlanningMRP II : Manufacturing ResourcePlanningMRP : Material RequirementPlanning


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ERP VendorsERP VendorsLocal ERP

RAMCO Marshal

MASTEK Mamis

International

SAP ORACLE

JDE PeoplesoftBaan Mfg*Pro

BPCS Avalon

Local ERP

RAMCO Marshal

MASTEK Mamis

International

SAP ORACLE

JDE PeoplesoftBaan Mfg*Pro

BPCS Avalon


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System Applications & Products in Data Processing is the world's leading

provider of business software solution, providing unique support to its customers

and partners for streamlining operations and achieving significant efficiencies

throughout their supply chains.

Leader in Products and Technology - Most complete E-Business Suite

Unparalleled Global Spread 69,700 Installations in 120+ countries

The Largest Installed Base 21,600 Companies run SAP

Matchless Business Experience

Providing 25 Industry Solutions 30 years of blending industry expertise

Providing Solutions for Customers of all Sizes

Fully integrated with modular structure

Best Practices approach

AboutSAP


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SAP R/3 Modules

R/3R/3Client / ServerClient / Server

ABAP/4ABAP/4

FIFIFinancialFinancial

AccountingAccounting

COCOControllingControlling

AMAMAssetAsset

ManagementManagement

PSPSProjectProject

SystemSystem

WFWFWorkflowWorkflow

ISISIndustryIndustry

SolutionsSolutions

MMMMMaterialsMaterials

Manage-Manage-

mentment

HRHRHumanHuman

ResourcesResources

SDSDSales &Sales &

Distrib.Distrib.

PPPPProductionProduction

PlanningPlanning

QMQMQualityQuality

Manage-Manage-

mentment PMPMPlantPlant

Mainten-Mainten-

anceance


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Technical ArchitectureSAPs Client/Server Structure

Database Changes

Application Logic

User Interaction

Central DB (Stores all Data andApplication Programs)

Input Datafrom User

Output Data to

User

Output Data to

User


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What does a Basis Consultant do? 1.## What is Basis?

Illustration: SAP R/3 Basis softwareisthemiddleware of the R/3 System

R/3 Basis

components

(middleware)

External

Computing

environment

Request forcomputing

resources

UNIX

Windows NT

Informix

Oracle


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BC 010 1.## R/3s three tiered client server architecture

Illustration: Why does SAP R/3 use a

client-server architecture?

PC Software program

SAP Component

Software components

SAP Component

SAP Component

SAP Client Server Software

A B CC

B

A


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What does a Basis Consultant do? 1.## What is Basis?

Illustration: Logical Groupings orlayers of SAP R/3 Components

Those SAP R/3 software components thatspecialize in the management , storage and

retrieval of data form the Database Layer

The Database Layer

Those SAP R/3 software components that

specialize in processing business

applications form the Application Layer.

The Application Layer

Those SAP R/3 software components that

specialize in interacting with end-users

form the Presentation Layer.

The Presentation Layer


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Introduction to R/3s client/server technology.## What does a Basis Consultant do?

The Database Layer

components are installed on

one high-end database server.

Illustration: Physical distribution of R/3sthree layered client-server architecture

The Application Layer

components are installed

across one or more high-

end servers.

Presentation Layer components are installed across many PCs.


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Sales and DistributionProcessing

M

ATE

RIALS

M

AN

A

G

EM

E

NT

F I N A N C I A L A C C O U N T I N G

Salesactivity

SA

LES

INF

OR

M

ATION

SY

STEM

Sales Support

Sales

Shipping

Billing

Subsequentdelivery free

of charge

Inquiry

Quotation Contract

Deliveryfree ofcharge

Salesorder Returns

SchedulingagreementUSD

Delivery

InvoiceDebit memo Credit memo

MATERIALS

M

ANA


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Materials Management

1.Requirements

determination2. Source

determination

4. Order Processing

5. Order follow-up

6. Goods receipt &

inventory management

7. Invoice

verificat

ion

8. Payment

3. Vendor selection


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House of Finance

GL/AP/ARGL/AP/ARConsolidationsConsolidations

FIFI

ACCOUNTINGACCOUNTING

Assets and liabilitiesAssets and liabilities

. . .. . .

COCO

CONTROLLINGCONTROLLING

ProfitabilityProfitabilityCenterCenter

ProfitabilityProfitabilityCostsCosts. . .. . .

TT

RR

TREASURYTREASURY

Funds CenterFunds Center

CashCashflowflowRiskRisk

MgmtMgmt. . .. . .

GroupGroupaccountingaccounting

ECEC

EISEISInformation WarehouseInformation Warehouse

Capital investment & financingCapital investment & financing Return on investmentReturn on investmentIMIM


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Financial Accounting (FI)

- Organizational Structure -


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Organizational Structure

A hierarchy in which the organizational unitsin an enterprise are arranged according totasks and functions.

Are static data and are rarely changed Once you have decided on an organizational structure it is

not easy to change it

The definition of organization units is afundamental step, it is a critical factor in how

the company will be structured

SAP Enterprise System


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Organizational Units and Basic Settings


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Organizational Units in

R/3 - FI

Client 000

Company

Code 1000

Company

Code 2000

Company

Code 3000

Company

Code 4000

Client 001

Client 400...

Fi i l A ti (FI)


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Company

Consolidated financial statements arecreated at the company level

A company can include one or morecompany codes

All company codes must use the samechart of accounts and fiscal year

Company is not required in the definition ofan enterprise (optional)


Fi i l A ti (FI)


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Chart of Accounts

A listing of the accounts (assets,liabilities, equity, revenues, andexpenses) that are contained inthe General Ledger

A chart of accounts must beassigned to every company codein order to create the General

Ledger for that company Several company codes can usethe same chart of accounts



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Chart of Accounts

Chart of Accounts

The three steps to create and use a chart of accounts :

l Define the chart of accounts,

l Define the properties of the chart of accounts,

l Assign the chart of accounts to company codes.

CAUSIKRINT

Fi i l A ti (FI)


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Company Code

A legally independent entity

The smallest organizational unit for whichaccounting can be carried out

Business transactions are processed at this level

Accounts are managed at this level Legal financial statements, such as the balance

sheet and the income statement, are generated atthis level using the General Ledger balances




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Fiscal Year Variant

Specifies the accounting fiscal yearfor reporting purposes

Special periods are created to aid in

the quarterly or year-end adjustingprocess completed prior to preparingfinancial statements

A single fiscal year variant isassigned to each company code



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Credit Control Area

An organizational unit or area ofresponsibility created to controlcustomer credit limits

A company code is assigned to oneand only one credit control area

Multiple company codes can be

assigned to one credit control area




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Client

CompanyChart of

Accounts

Company

Code

Fiscal Year

Variant

Credit Control

Area


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l The number ranges of the

accounts

Account groupcontrol

C

General

Ledger

Cash

Matl

P/L

Liab

...

000000-099999

100000-199999

200000-299999

300000-399999

400000-499999

500000-599999

600000-699999

Cash accounts

Asst

Cash

Konto 001111

000000-099999 Accou

nt

group

Chart of accts sgmnt

Company code segment

l The field status of the fields

in the company codesegment of the master

record

Account Groups for the G/L Accounts


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General Ledger Master Data


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G/L account master Data Structure

Financial Accounting (FI)Sales and Distribution (SD)


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Accounts Receivable

Reconciliation Account

Financial Accounting (FI)Sales and Distribution (SD)

Integra

tion

Accounts Receivable

Reconciliation

950

300

Customer 142

150

Customer 123

400

Customer 135

100

Customer 189

Financial Accounting (FI)Materials Management (MM)


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Accounts Payable

Reconciliation Account

Financial Accounting (FI)Materials Management (MM)

Integra

tion

Accounts Payable

Reconciliation

950

250

Vendor 100435

200

Vendor 100234

100

Vendor 100621

300

Vendor 100846


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Materials Management (MM)

- Organizational Structures -

Unit 4

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Components of Materials

Management

g ( )

Materials

Management

(MM)

Logistics

Invoice

Verification

Material

Master

Physical

Inventory

Valuation

MRP

Service

Entry

Sheet

Service

Master

Product

CatalogPurchasing

Inventory

Mgmt.

Foreign

Trade/

Customs

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Materials Management (MM) Integration


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Organizational Structures

Plant

Valuation Area

Storage Locations

Purchasing Organizations

Purchasing Groups

g ( )tion

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Plant

Lowest valuation area

Organizational level where MaterialRequirements (MRP) runs

Generally used to describe aproduction site, a distribution centeror centralized warehouse

May be a physical or logical unit

g ( )tion

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Valuation Area

The valuation area determines atwhich level a material is valuated(inventory value is established)

SAP R/3 allows valuation at thecompany code or plant level, butrecommends valuation area be set at

the plant level

tion

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Storage Location

Subdivision of a plant

Where materials are managed(inventory management) Raw Materials

Maintenance, Repair, and Other

Finished Product

May be a physical or logical unit

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Corporate Structure

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Organization of Purchasing

Centralized/Distributed Purchasing

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Organizational Relationships

PurchasingOrganization/Purchasing Group

PurchasingOrganization P001

Purchasing

Group P002

Purchasing

Group P003

Purchasing

Group P004

Purchasing

Group P001

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Fiscal Period

In order to execute any materialpostings, the current fiscal periodhas to be activated

By initializing the company code formaterial management, the firstmajor integration between Financial

Accounting (FI) and Logistics iscompleted


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Material Types


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Material Master



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Material MasterMaterial Types

Standard material types are usedin all industries. ROH: Raw Materials

Purchased externally only No sales view

HAWA: Trading Goods Always purchased externally

Sold without any change to the material

No manufacturing views exist

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Material Master



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Material MasterMaterial Types (continued) FERT: Finished Products

Are produced internally

Normally no purchasing views exist

- HIBE: Operating Supplies

. contain purchasing data, but not sales data

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Purchasing Tolerances

A tolerance limit is set for allowedvariance before a warning/errormessage is displayed Price variance

Compares the price in the purchase order withthe valuation price stored in the material master

Maximum cash discount

This tolerance limit is set to assure that cashdiscounts do not exceed allowable discounts

Purchasing value key

Goods Receipts Tolerances


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Invoice Receipts Tolerances


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Invoice Receipts Tolerances


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Automatic Account Assignment


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ERP I SAP recap

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