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Intro to SAP EnterpriseIntro to SAP EnterpriseSystems ConfigurationSystems Configuration
EGN 5620 Enterprise Systems ConfigurationEGN 5620 Enterprise Systems Configuration
Fall, 2012Fall, 2012
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January 2008January 2008
SAP AG - University Alliances and SAP AG - University Alliances and
The Rushmore Group, LLC 2008. AllThe Rushmore Group, LLC 2008. All
rights reserved.rights reserved. 22
SAP R/3 IntroductionSAP R/3 Introduction
Enables a company to link its businessprocesses
Ties together disparate business
functions (integrated business solution)Helps the organization run smoothlyReal-time environmentScalable and flexible
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January 2008January 2008
SAP AG - University Alliances and SAP AG - University Alliances and
The Rushmore Group, LLC 2008. AllThe Rushmore Group, LLC 2008. All
rights reserved.rights reserved. 33
SAP R/3 IntroductionSAP R/3 IntroductionCentral relational database
Oracle, Informix, Microsoft SQL, etc.
Client/Server three-tieredERP Components Oriented towards
common identifiable business modules: MM, SD, PP, FI, CO, HR, WM, QM, PMAdd-ons:
Customer Relationship Mgmt (CRM)
Supply Chain Mgmt (SCM) Product Lifecycle Mgmt (PLM)
Business Intelligence (BI)
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January 2008January 2008
SAP AG - University Alliances and SAP AG - University Alliances and
The Rushmore Group, LLC 2008. AllThe Rushmore Group, LLC 2008. All
rights reserved.rights reserved. 44
Relational DatabaseRelational Database
Tables: Defines and links a couple of tensthousands of tables of information(25,000+)
Advantages Consistent and accurate data
Common definitions for terms
Shared, but restricted usage (e.g., profiles)
Eliminates data redundancy
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January 2008January 2008
SAP AG - University Alliances and SAP AG - University Alliances and
The Rushmore Group, LLC 2008. AllThe Rushmore Group, LLC 2008. All
rights reserved.rights reserved. 55
Client/Server EnvironmentClient/Server Environment
Client Software/hardware combination that canmake a request for services from a central
repository of resourcesServer
Software/hardware combination that canprovide services to a group of clients in a
controlled environment
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January 2008January 2008
SAP AG - University Alliances and SAP AG - University Alliances and
The Rushmore Group, LLC 2008. AllThe Rushmore Group, LLC 2008. All
rights reserved.rights reserved. 66
Three-Tier SAP StructureThree-Tier SAP Structure
GUI Graphical User Interface or WebInterface
Application server (one or many)
Database server (one single location)
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January 2008January 2008 SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rightsreserved.reserved. 77
SAP Enterprise System
Database
Application
Presentation
Browser Client
PCs, Laptops, etc.
Network
Application
Servers
Database
Internet
Transaction
Server
Web Server
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Enterprise Systems (history & Evolution)Enterprise Systems (history & Evolution)
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January 2008January 2008
SAP AG - University Alliances and SAP AG - University Alliances and
The Rushmore Group, LLC 2008. AllThe Rushmore Group, LLC 2008. All
rights reserved.rights reserved. 99
SAP R/3 IntroductionSAP R/3 Introduction
Instance each install of the SAP R/3software on an individual application server
Configurable each instance can be
distinctively configured to fit the needs anddesires of the customer (within limits)
Most of the infrastructure decisions,
including configuration decisions, occurduring project implementation
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January 2008January 2008
SAP AG - University Alliances and SAP AG - University Alliances and
The Rushmore Group, LLC 2008. AllThe Rushmore Group, LLC 2008. All
rights reserved.rights reserved. 1010
SAP ConfigurationSAP Configuration
The process of tailoring SAP software byselecting specific functionality from a list ofthose supported by the software, very
much like setting defaults (e.g., Word,Access)
DOES NOTinvolve changes to the
underlying software code
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January 2008January 2008
SAP AG - University Alliances and SAP AG - University Alliances and
The Rushmore Group, LLC 2008. AllThe Rushmore Group, LLC 2008. All
rights reserved.rights reserved. 1111
Programming Code ModificationsProgramming Code Modifications
Changes to the delivered code
ABAP/4 Advanced Business Application
Programming (ABAP)
This should be done carefully as it canmake migration to new versions of the
software much more difficult
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SAP Data TypesSAP Data Types
Required data types:
1.Organizational levels (data, elements)
2.Master data
3.Transaction data
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Data type: Organizational levelsData type: Organizational levelsDefines the enterprise structure in terms of legal or
business purposes, including legal entities, plants, storage
areas, sales organizations, profit centers: Client (e.g., 600)
Highest organizational level Represents the enterprise consisting of many
companies
Company Code (e.g., C099) Identifies legal entities in an enterprise Central organizational element in financial accountingOrganizational levels in Logistics
Plant (e.g. P099)Represents factory, warehouse, office, distribution
center, etc.
Storage locations (e.g., 10, 20, 30)A location within a plant where materials are stored
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Data Types: Organizational levelsData Types: Organizational levels
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Organizational levels in
Accounting Client
Company code
Business area
Controlling area
Operating concern Organizational levels in
procurement
Purchasing organization
Purchasing group
Plant
Storage location
Organizational levels in
fulfillment (sales)Sales organizations
Divisions
Distribution channel
Sales areas
Shipping point
Plant
Storage location
Organizational levels in PP
Plant
Work Center
Storage location
Shipping Point
Data Type: Organizational levelsData Type: Organizational levels
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Procurement
Client GBI
CC US##
Dallas
DL## Miami
MI##S. Diego
SD##
CA##
Toronto
TO##
Shipping PointDL##
Storage Location
RM##
MI## SD## HD## HH##
AU##
Perth
PE##
Central Purchasing Organization(global) GL##Purchasing Org. US##
CC DE##
Heidelb.
HD## Hamburg
HH##
SF##
FG##
MI##
TG##
FG##
MI##
TG##
FG##
MI##
TG##
FG##
MI##
RM##
SF##
FG##
MI##
TG##
FG##
MI##
TO##
TG##
FG##
MI##
PE##
CA##
Purchasing Group North America
N##
PO DE##
PGr Europe
N##
AU##
Asia
AS##
SAP Enterprise Structure ExampleSAP Enterprise Structure Example
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Sales and Distribution
Client GBICredit Control Area (global) GL##
CC US##
SO East
UE##
SO West
UW##
CC CA##
SO East
CE##
SO West
CW##
CC DE##
SO South
DS##
SO North
DN##
CC GB##
SO South
GS##
SO North
GN##
CC AU##
SO South
AS##
SO North
AN##
Distribution Channel
Wholesale WH
Distribution Channel
Internet IN
Divisio
nB
icycle
sB
I
Divisi
on
Accessorie
sA
S
SAP Enterprise Structure ExampleSAP Enterprise Structure Example
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Key Concepts in SAPKey Concepts in SAP
Long term data that represent entities of: Procurement
Vendor Material Info records, source list
Fulfillment (Sales & Distribution) Customer Material Conditions (pricing, output)
Production
Bills of material Work centers Product routings
Data Type: Master data
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Key Concepts in SAPKey Concepts in SAP
Data generated during executing process (steps)combining:Organizational levels
Master data
Situational data (who, what, when, and where)
Example: sales orderOrganizational levels: customer, company code,sales area
Master data: customer master, material masterSituational data: date, time, person, quantities
Types of Data: Transaction data
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The Document concept
An electronic record of transactions
Each transaction creates document(s)
Document types
Financial accounting documents (FI)
Management accounting documents (CO)
Material documents (goods movement)
Others
Key Concepts in SAPKey Concepts in SAP
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January 2008January 2008
SAP AG - University Alliances and SAP AG - University Alliances and
The Rushmore Group, LLC 2008. AllThe Rushmore Group, LLC 2008. All
rights reserved.rights reserved. 2121
SAP R/3 Document PrincipleSAP R/3 Document Principle
Each business transaction that writes datato the database creates a uniquelynumbered electronic document
Each document contains information suchas Responsible person Date and time of the transaction
Commercial contentOnce created, a document can not bedeleted from the database
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Key Concepts in SAPKey Concepts in SAPThe Document Concept: Transaction document
N. OConner Blvd.
Dallas , Texas ,
Phone: +. . . Fax: +. . .
Olympic Protective Gear
Summit Boulevard
Atlanta , GA ,
GBI San Diego Distribution Center
Spear Street
San Diego,
+---
July , July , Ground Destination Net
KPAD Knee Pads Each . , .
EPAD ElbowPads Each . , .
OHMT Off -road Helmets Each . , .
SUBTOTAL $ ,.
SALES TAX Exempt
SHIPPING&HANDLING Included
OTHER N/A
ORDER TOTAL $ , .
,
Authorized by : __________________________________________________
Purchasing Manager
Date : ____________________
Header
Line items
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Key Concepts in SAPKey Concepts in SAPThe Document Concept: Material Document
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PEN, Inc.PEN, Inc.
System ConfigurationSystem Configuration
IntroductionIntroduction
EGN 5620 Enterprise Systems ConfigurationEGN 5620 Enterprise Systems Configuration
Fall, 2012Fall, 2012
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January 2008January 2008
SAP AG - University Alliances and SAP AG - University Alliances and
The Rushmore Group, LLC 2008. AllThe Rushmore Group, LLC 2008. All
rights reserved.rights reserved. 2525
Learning by Creating a ModelLearning by Creating a Model
BusinessBusinessUnderstanding business processes and
their integrative natureUnderstanding SAP organizational
structuresCombining business processes and SAPorganizational structure (i.e.,configuration)
Test the newly configured systemView system outputs - statistics, reports,
and graphics
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January 2008January 2008
SAP AG - University Alliances and SAP AG - University Alliances and
The Rushmore Group, LLC 2008. AllThe Rushmore Group, LLC 2008. All
rights reserved.rights reserved. 2626
Pen Inc.Pen Inc.
Start-up company in the promotional penbusiness
Initially buys and re-sells different lines
of promotion pensSells to both wholesale and retail
procure and distributeLater acquires a production facility to
manufacture its own product produceand distribute
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Enterprise StructureEnterprise Structure
PlantPlant
(P_ _ _)(P_ _ _)
Client (600)Client (600)
Chart ofChart of
AccountsAccountsCompanyCompany
Code (C_ _ _)Code (C_ _ _)
Fiscal YearFiscal Year
VariantVariantCredit ControlCredit Control
AreaArea
PurchasingPurchasing
OrganizationOrganization
PurchasingPurchasing
GroupGroup
ShippingShipping
PointPoint
SalesSales
OrganizationOrganization
DistributionDistribution
ChannelChannelDivisionDivision
Sales AreaSales Area
ControllingControlling
AreaArea
SL10SL10 SL20SL20
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Company configurationCompany configuration
Pen Inc. _ _ _US manufacturing Company Vermillion SD, US
Facilities:One manufacturing plant with warehouse inVermillion (Plant)
Work Center Storage Location
10 for Trading and finished goods
20 for Quality
30 for Raw materials
Shipping point Sales Organization
Purchase Organization
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The company to be configuredThe company to be configuredCost Center Standard Hierarchy
ADMIN_ _ _ (Cost Center Group)
Acct-Finance
Administration
Purchasing
Information TechSales _ _ _ (Cost Center Group)
Sales
Marketing
Distribution-Production Cost Center _ _ _ (Cost Center Group) Warehouse
Production
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Pen Inc. : The companyPen Inc. : The companyProducts
Trading MaterialsBPEN _ _ _ (Barrel Pen)
CPEN _ _ _ (Click Pen)
PPEN _ _ _ (Premium Pen)
Box _ _ (Pen Box)
Finished productsEPEN _ _ _ (Executive Pen)
ESET _ _ _ (Executive Set)
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Pen Inc. : The companyPen Inc. : The company
Customers
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Pen Inc. : The companyPen Inc. : The company
Suppliers
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Pen Inc.: Key ProcessesPen Inc.: Key Processes
Procurement (buy) Fulfillment (sell)
Production (make)
Material planning (plan)
Financial Accounting (track) Management Accounting (track)
Inventory and Warehouse Management (store)
Enterprise Asset Management (maintain)
Customer Service (service) HCM (people)
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Pen Inc. : The companyPen Inc. : The company
The IS of the Pen, Inc. will
integrate and share all services for all businessfunctions in the Vermillion Office
Centralize all ERP functions Achieve the primary business objectives:Reduce Costs
Deliver Best-in-Class Technology to all divisions
Information system requirement
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Exercises: due date 9/17/2012Exercises: due date 9/17/2012
65. Initialize Fiscal Period for Company Code
66. Maintain Plant Parameters for MaterialManagement
67. Activate Materials Requirements Planning
68. Define Attribute for Material Types
71. Define Posting Periods Variant72. Open and Close Posting Periods73. Assign Posting Periods Variant to Company Code
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Exercises: due date 9/17/2012Exercises: due date 9/17/2012
74. Create Tolerance Groups for Account Postings
75. Setup Payment Program76. Create Tolerance Groups for Accounts Receivable
and Accounts Payable77. Create Financial Accounting (FI) Document
Numbers78. Review Document Types (Only Watch, and dont
make any changes)79. Post Initial Cash Investment by Owners80. Post Purchase of Operating Supplies
81. Display and Review General Ledger AccountBalances and Individual Line Items (Only Watch,and dont make any changes)