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- 1. 1 WELCOME TO THE WORLD OF SAP
- 2. 2 What is an ERP ? Enterprise Resource Planning Single software that runs Company-wide – may need complementary software in a few areas which are too specific or which it does not address Addresses all major functional areas / processes of the company – Continuously evolving to address newer areas and processes Ready-to-use package from day one Leading vendors – SAP, Oracle (Applications), Peoplesoft, BaaN
- 3. 3 What is ERP? - multi-module application software that helps organization manage its core business - product planning, inventory maintenance, supplier interaction, order tracking, financial and HR management - relational database system, client/server distributed architecture - business process analysis and retraining - rich functionality across all areas
- 4. 4 Evolution of ERP - 1960s: Inventory Management Control (IMC) - 1970s: Material Requirement Planning (MRP) - 1980s: Manufacturing Resources Planning (MRP-II) - 1990s: Enterprise Resource Planning (ERP)
- 5. 5 ERP Definition A Future proof software solution that addresses the enterprise needs taking the process view of an organization to meet the organizational goals tightly integrating all functions of an enterprise
- 6. 6 Characteristics of ERP Real time decision support Fully integrated Open system Distributed yet integrated applications Ease of use - personalization, browser based Flexible / best business processes comprehensive - all functionalities Adaptability to latest technologies Internet / web applications
- 7. 7 Why ERP? - A Typical IT Story Financial AccountingFinancial Accounting Procurement/StoresProcurement/Stores Sales &Sales & DistributionDistribution HR/PayrollHR/Payroll ManufacManufac turingturing CustomerCustomer CareCare 1,000 island solution1,000 island solution
- 8. 8 A Typical IT Story Financial AccountingFinancial Accounting Procurement/StoresProcurement/Stores BillingBilling && CustomerCustomer CareCare HR/PayrollHR/Payroll ProjectsProjects MaintenanceMaintenance and Servicesand Services
- 9. 9 Need for ERP Integration of Business Processes Online information at the corporate office Standardization of systems across Locations Reduce cash to cash cycle times Faster Consolidation at Head office for statutory reporting
- 10. 10 ERP Position in Process chain S U P P L I E R Purchasing Production MGMT. Accounts Costing Maintenance Quality Sales C U S T O M E R
- 11. 11 Information and Goods Flow Capacity resourcesCapacity resources Capital resourcesCapital resources long-termlong-term short-termshort-term Material resourcesMaterial resources Logistic processLogistic process vendorvendor productionproduction salessales purchase orderspurchase orders procurementprocurement materialsmaterials servicesservices processesprocesses productsproducts servicesservices sales orderssales ordersware-ware- househouse ware-ware- househouse clientclient
- 12. 12 Centralized Purchasing, Sales, Accounting for Multi-country, Multi-divisional, Multi-product Better Production Resources planning Better Services Resources planning Integration with all functionalities Optimize the business processes Have Real-time processing Get up-to-date information on business Why ERP?
- 13. 13 Incorporation of best business practices and process orientation Legacy systems are typically built around a fixed business scenario. ERP VS Custom Built Applications
- 14. 01/21/1714 ERP Vendors Baan J.D. Edwards Lawson Software Oracle Applications PeopleSoft SAP
- 15. 15 SAP - The Company and its Product R/3 Founded in 1972 by ex-IBM employees HQ in Walldorf 64000 + installations – 10 users to 10000 users $ 3mn per day R&D expenditure Indian operations from 1996 200+ Indian companies have implemented it Market Share and Revenues are bigger than the next three competitors combined!
- 16. 16 SAP R/ 3 ? S-A-P (not SAP!): Systems Applications and Products in Data Processing R/3 : 3 tier architecture Ready to Run Software Most complex package – 70,000+ tables, 120,000+ programs (Cryptic German), 400+ authorization objects Robust Design: wide compatibility for h/w, o/s, d/b Designed using inputs from best of class companies Extremely strong integration
- 17. 17 What SAP is not A temporary solution – It will be the main back bone around which all future systems will be built A planning and optimizing tool – SAP’s strengths are in execution – It does not choose the best / most optimized solution
- 18. 18 What SAP is not A ‘do-it-your way’ software – Large no. of options in configuration tables – Limitations to going beyond these options – Source Code cannot be touched - contractual implications – ABAP Development possible in a few cases - technical restrictions in trying ABAP in other cases – System Performance issues – Upgrades to newer versions may not support developments Overall it is the best but not – the best for ‘every’ feature – better than existing systems for ‘every’ feature A single burst effort – sets the foundation for other Technology initiatives
- 19. 19 SAP R/3 Architecture SAP R/3 works on Three Tier Architecture User Terminal Application Server Database Server Data Creation Modification Retrieval Managing User Requests Data Storage
- 20. 20 The Presentation Layer collects user input and creates process requests. The Application Layer uses the application logic of SAP programs to collect and process the process requests. The Database Layer stores and retrieves all data. Communication 3-Tier Client/Server Architecture
- 21. 21 The SAP World R/3R/3 Client / ServerClient / Server FIFI FinancialFinancial AccountingAccounting COCO ControllingControlling AMAM Fixed AssetsFixed Assets Mgmt.Mgmt. PSPS ProjectProject SystemSystem WFWF WorkflowWorkflow ISIS IndustryIndustry SolutionsSolutions MMMM MaterialsMaterials Mgmt.Mgmt. HRHR HumanHuman ResourcesResources SDSD Sales &Sales & DistributionDistribution PPPP ProductionProduction PlanningPlanning QMQM QualityQuality Manage-Manage- mentment PMPM Plant Main-Plant Main- tenancetenance
- 22. 22 SAP - characteristics Highly Integrated solution covering entire business processes Technically capable of utilizing the network infrastructure Open system to ensure freedom to choose Provides multiple ways of configuring business processes Solutions in areas where currently no systems Workflow enabled business processes Enables to exploit the power of Intranet and Internet
- 23. 23 Common SAP objectives Cost Control & increased profitability Increased productivity of all resources – man, material & money Process Standardization Transparency in operations, resulting in better communication Shift from post-mortem scenario to predictive scenario
- 24. 24 Results of Integration Focus on Business Processes Elimination of Redundant Data (Common Constant Data) Easier Corporate Consolidation Better Managerial Control Elimination of Interfaces Faster reaction to changing structures
- 25. 25 Success factors for SAP implementation Top Management Commitment & communication down-the- line Empowerment Change management Training Compliance to methodology
- 26. 26 How It works Multiple Users Multiple Sessions Multiple Locations & Live
- 27. Modules SAP are categorized into 3 core functional areas: – Logistics – Financial – Human Resources Technical – Programming (ABAP) – Basis 27
- 28. Logistics Sales and Distribution (SD) Material Management (MM) Production Planning (PP) General Logistics (LO) Quality Management (QM) Plant Maintenance (PM) 28
- 29. Financial Financial Accounting (FI) Controlling (CO) Enterprise Controlling (EC) Investment Management (IM) Treasury (TR) 29
- 30. Human Resource Personnel Administration (PA) Personnel Development (PD) 30
- 31. 31 Plant Maintenance (PM) The PM application module supports planning, processing and completionThe PM application module supports planning, processing and completion of the plant maintenance tasks.of the plant maintenance tasks. – Helps keep track of maintenance cost and resourcesHelps keep track of maintenance cost and resources – Provides information to facilitate decision-making about plant maintenanceProvides information to facilitate decision-making about plant maintenance concernsconcerns Key elements of the PM application include :Key elements of the PM application include : – Processing of unplanned tasksProcessing of unplanned tasks – Service managementService management – Maintenance notification by date or countersMaintenance notification by date or counters – Maintenance planningMaintenance planning – Maintenance Bill of materialsMaintenance Bill of materials – Plant maintenance Information systemPlant maintenance Information system
- 32. 32 Quality Management (QM) The QM application module is a quality control and informationThe QM application module is a quality control and information system supporting quality planning, inspection, and control forsystem supporting quality planning, inspection, and control for manufacturing, costing, and procurementmanufacturing, costing, and procurement Key elements of the QM application module are :Key elements of the QM application module are : – Quality inspectionQuality inspection – Quality planningQuality planning – Quality Management Information System (QMIS)Quality Management Information System (QMIS)
- 33. 33 Production Planning (PP) The PP application module is used to plan and control theThe PP application module is used to plan and control the manufacturing activities of a companymanufacturing activities of a company PP application module include :PP application module include : – Bill of Material (BOM)Bill of Material (BOM) – RoutingsRoutings – Work CentersWork Centers – Materials Requirement Planning (MRP)Materials Requirement Planning (MRP) – Shop Floor Control (SFC)Shop Floor Control (SFC) – Product costing, activity-based costingProduct costing, activity-based costing – Discrete and Repetitive manufacturing / ProcessDiscrete and Repetitive manufacturing / Process ManufacturingManufacturing
- 34. 34 Materials Management (MM) The MM application module supports the procurement and inventoryThe MM application module supports the procurement and inventory functions occurring in day-to-day business operations.functions occurring in day-to-day business operations. Key elements of the MM application include :Key elements of the MM application include : Materials procurement (purchasing)Materials procurement (purchasing) Inventory managementInventory management Reorder point processingReorder point processing Invoice verificationInvoice verification Material valuationMaterial valuation Vendor evaluationVendor evaluation External Services managementExternal Services management Purchasing Information System (PurchIS) and InventoryPurchasing Information System (PurchIS) and Inventory Controlling Information systemControlling Information system
- 35. 35 Financial Accounting (FI) The Financial accounting module is designed for automated management andThe Financial accounting module is designed for automated management and external reporting of general ledger, accounts receivable, accounts payable, andexternal reporting of general ledger, accounts receivable, accounts payable, and other sub-ledger accounts with a user-defined Chart of Accountsother sub-ledger accounts with a user-defined Chart of Accounts FI application module include :FI application module include : – General ledgerGeneral ledger – Accounts payableAccounts payable – Accounts receivableAccounts receivable – Special Purpose Ledger (FI-SL)Special Purpose Ledger (FI-SL) – Legal consolidationLegal consolidation – Accounting Information SystemAccounting Information System
- 36. 36 Controlling (CO) The CO application module represents the company’s flow of cost and revenueThe CO application module represents the company’s flow of cost and revenue CO is a management instrument for organizational decisionsCO is a management instrument for organizational decisions CO application module include :CO application module include : – Cost center accountingCost center accounting – Product cost analysisProduct cost analysis – Profit center accountingProfit center accounting – Activity based costingActivity based costing – Enterprise controllingEnterprise controlling
- 37. 37 Sales & Distribution (SD) The SD application module helps to optimize all the tasks and activitiesThe SD application module helps to optimize all the tasks and activities carried out in sales, delivery and billingcarried out in sales, delivery and billing SD application module include :SD application module include : –ContractsContracts –Sales order processingSales order processing –Delivery processingDelivery processing –BillingBilling –Sales Information systemSales Information system
- 38. 38 Information Analysis Standard Reports Flexible Analysis Standard Analysis – Logistics Information System ( LIS ) – Sales Information System ( SIS ) – Project Information System ( PIS ) ABAP/4 Query Report Writer Report Painter ABAP/4 Development Workbench for programming requirements
- 39. 39 SAP IMPLEMENTATION - PHASES Project Planning Business Process Study & Analysis Installation Training Business Requirement mapping Configuration Modifications / Interfaces Data Conversion Documentation Testing Go-Live Post production support
- 41. 41 The SAP business process uses the following organizational elements: – Client – Company Code – Group Company – Controlling Area – Purchase Organization – Plants – Sales Organization – Distribution Channel – Division – Sales Area Organizational Elements
- 42. 42 Client - Characteristics A Highest Hierarchical Level in SAP(e.g. a corporation) Used to Differentiate between a Development, Quality Assurance, and Production System within R/3 Common Set of Rules Common Tables Common Master Files Common Data Bases
- 43. 43 Standardized data across the client A vendor number and name is common across the client A customer is common across the client A general ledger number and description is common across the client A material number and description is common across the client Client - Characteristics
- 44. 44 Company Code A company code represents an independent balancing/legal accounting entity, for example, a company within a corporate group. Balance sheets and profit & loss statements, required by law, can be created at the company code level. BALANCING / (LEGAL)BALANCING / (LEGAL) ENTITYENTITY == Company Code **** Assets Liabilities Revenues - Expenses Profit/Loss
- 45. 45 Controlling Area The controlling area identifies a self-contained, organizational element for which the management of costs and profits can be performed. Controlling Area **** ********* Cost Centers Company **** Assets Liabilities Revenues - Expenses Profit/Loss
- 46. 46 Purchase Organization •Responsible for procurement for one or more plants •Responsible for negotiating pricing and delivery terms with vendors •Purchasing organization is assigned to A company where inventory is legally tracked or costs are legally incurred.
- 47. 47 Plant •Usually a manufacturing facility, warehouse, or a location that stocks , manages, and valuates inventory •May be a physical site with multiple manufacturing/production lines •May be multiple manufacturing/production lines at one physical site •Can be a physical location(cost centers may or may not be associated to a plant i.e. Administrative vs. Manufacturing cost centers) •Links to production (PP), materials management (MM), and sales and distribution (SD) •A plant is assigned to a company •Purchasing organization are assigned to plants.
- 49. 49 Logon to SAP System SAPlogon.lnk •Click on the SAP icon on the desk top
- 50. 50 Using SAP GUI Title Bar Tool Bar Menu Bar Screen Body Input Fields Application Bar Status Bar
- 51. 51 Getting into SAP System • Enter the Client number • Enter your user name • Enter Your password • And Press Enter Button • Initial Screen will pop up
- 52. 52 Client : User ID : Password : Language : EN
- 53. 53
- 54. 54 Getting Around The Screen Navigation Area
- 55. 55 Creating Your Own Favorites Select Your Favourite Transaction Add it to your Favourite List 1 2
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Editor's Notes
- J.D. Edwards building accounting software for IBM. The company gradually added functions, its accounting software evolving to become a platform-independent ERP application that was in 1996 renamed OneWorld. In June 2003, the J.D. Edwards board agreed an offer under which PeopleSoft would acquire J.D. Edwards, and the takeover was completed in July. The agreement of this offer was followed by attempts from Oracle Corporation to take over the new enlarged PeopleSoft In 2003, PeopleSoft performed a friendly merger with smaller rival J.D. Edwards software. Beginning in 2003, PeopleSoft battled with Oracle over control of the PeopleSoft company. In June 2003, Oracle made a $7 billion bid ($19.50/share) to take over PeopleSoft, in what many describe as a hostile corporate takeover attempt. In February 2004, Oracle increased their bid to approximately $9.4 billion ($26/share), a 33% increase; this offer was also rejected forthwith by PeopleSoft's board of directors. Later that month, the U.S. Department of Justice filed suit to block Oracle, on the grounds that the acquisition attempt would break anti-trust laws; however, in September 2004, this suit was rejected by a U.S. Federal judge, who found that the Justice Department had not proven its anti-trust case.
- Each Company code contains a balanced set of books. The Company codes being used at **** are: ***** Company Codes are required when running some report, posting journal entries and running some periodic and month-end jobs
- Each Company code contains a balanced set of books. The Company codes being used at **** are: ***** Company Codes are required when running some report, posting journal entries and running some periodic and month-end jobs
- Each Company code contains a balanced set of books. The Company codes being used at **** are: ***** Company Codes are required when running some report, posting journal entries and running some periodic and month-end jobs
- ***** currently is using one Controlling area ****
- Data record containing master data, that is, data which remains unchanged over a reasonably long period of time. A vendor master record contains the vendor's name, address and bank details.
- Data record containing master data, that is, data which remains unchanged over a reasonably long period of time. A vendor master record contains the vendor's name, address and bank details.
- For our training purpose use the following data: Client:800 User Name:Collect from Basis Person. Password:************* Language:EN
- Please note the symbols that are useful for easy handling on all SAP Screens.
- To Access the Help on the Screen Fields Press F1. To Access the Possible entries Press F4 and System will drop down the list from that select the right one relevant to you.
- At a time system will allow us to access maximum of 6 slides.