Transcript Introduction to SAP R/3

Introduction to SAP R/3
Introduction
 SAP – Systems, Applications and Products in Data
Processing
 Standard Package
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Satisfies general business processes
 Can be configured in multiple areas and adapted to
the specific needs of a company
 Market leader in the development of standard
applications
SAP R/3’s Integrated Modules
SAP R/3’s Integrated Modules
 All business areas access the same database
 Eliminates redundant data and communications lags
 Sales & Distribution (SD)
 Records sales orders and scheduled deliveries.
 Customer Info, pricing, delivery details, billing etc
 Materials Management (MM)
 Manages the acquisition of raw materials from suppliers (Purchasing)
 Handling of Raw Materials Inventory
 Production Planning (PP)
 Maintains production information
 Quality Management (QM)
 Helps plan and record quality-control activities, such as product inspections
and material certifications
 Plant Maintenance (PM)
 Allows for planning for preventative maintenance of plant machinery and
managing maintenance resources to minimize equipment downtime
SAP R/3’s Integrated Modules
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Human Resources (HR)
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Financial Accounting (FI)
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Planning and control over new R&D, construction and marketing projects.
Allows for costs to be collected against a project
Frequently used to manage the implementation of the SAP R/3 system
Workflow (WF)
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Management of fixed-asset purchases (Plant & Machinery) and related depreciation
Project System (PS)
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Used for internal management purposes.
Manufacturing costs are assigned to products and to cost centres
Facilitates cost analysis
Asset Management (AM)
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Records transactions in the general ledger accounts.
Generates financial statements for external reporting purposes
Controlling (CO)
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Facilitates employee recruiting, hiring, and training.
Includes payroll and benefits
Automation of activities in R/3
Performs task-flow analysis and prompts employees (via e-mail) if action is required
Industry solutions (IS)
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Contains R/3 configuration settings that SAP has found appropriate for particular industries.
Unique Features of SAP R/3
 Original system targeted very large companies
 Acquiring an R/3 system is very expensive
 Modular design is based on business processes
 Design incorporates “Best Practices”
ERP Basics
 Organization levels and master data provide the
framework that supports the business transactions.
 Reporting allows you to view master data, as well as
the output of business transactions.
 Important to understand the fundamental concepts
or organizational levels, master data, transaction
data and reporting.
Organizational Levels
Organizational Levels
Organizational Levels
 Company’s structure is mapped to SAP applications using
organizational Units
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Used to represent the enterprise structure in terms of legal and/or
business-related purposes.
Client > Highest-level unit of all organizational elements and represents
the enterprise group
Company Code is a unit included in the balance sheet of a legallyindependent enterprise and is the central organizational element of
Financial Accounting
Sales Organization is the central organizational element in the context of
Sales and Distribution. Division is used to represent product line
Plant is the central organizational unit in the context of Production
Planning. A plant can manufacture products, distribute products or
provide a service
Storage Location within a plant is used in the context of Inventory
Management
Organizational Levels
Sales Areas
Organizational Levels
Plants
Purchasing Organizations
Master Data
Master Data
 Master Data:
 Data which is used long-term in the SAP System for several
business processes. Eg. Customers, materials, and vendors
 Contains key information that defines the business
relationship between a company and its customer
 Used to support execution of key business processes
such as customer requests, deliveries, invoices and
payments
Transactions
Transactions
 Applications programs which execute business
processes in the SAP systems such as creating a
customer order, posting an incoming payment, or
approving a leave request
 Document: A data record that is generated when a
transaction is carried out
 Document generated by transaction contains all
relevant pre-defined information from the master
data and organizational elements
Purchasing
Process Overview
 From a logistical point of view, requirements planning is carried out first of all.
To do this, the responsible department can register a materials requirement
manually to Purchasing using an order requirement. It is possible to have the
order requirement automatically created by the system.
 PURCHASE ORDER HANDLING: The system provides you with entry tools
when creating ORDERS. The required entry data such as supplier, material,
plant and other data relevant to the organization of purchasing must be
provided.
 When goods are received, the system checks, among other things, the quantity
of goods received against the order quantity. A material document is created in
MM to update the inventory. At the same time, a document is created in FI with
which the evaluated goods are posted to the material stock account or the
consumption account (debit) and to a goods receipt / invoice receipt account
(credit).
Process Overview
 After the invoice has been received in the ,Invoice Verification,
the Vendor Invoice is checked as to the correctness of
computation and content. All of these purchasing processes are
settled in Logistics. The vendor invoice is posted in MM and, at
the same time, a document is created in FI with which the
invoice amount is posted to the goods receipt / invoice receipt
account (debit) and the vendor account (credit).
 The goods receipt / invoice receipt account is used to make sure
that a goods receipt is executed for every invoice and vice versa.
 The Payment Processing usually takes place in Financial
Accounting. It is here that decisions are made about the payment
process, such as, for example, the payment methods and the
bank settlement
Sales Order Process
Sales Order Process
 The sales order is the basis of the sales process. Many
different scenarios can be settled via the sales order in
SD
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Sale of products ex stock
Service order
 Sale of products ex stock
 Sales order is created for material in inventory (MM)
 Costs and revenues are derived automatically from the material
production costs or from the SD sales prices. (CO)
 Outbound delivery document is created
 Delivery cannot be billed until the goods have been removed from
the stock and posted as goods issue
 Last step is billing where an invoice document is created in SD
 Customer Payment is posted in FI
Sales Order Process
 Producing a service represents, in contrast to ex stock
sales, a direct Service Generation Process that can also be
displayed via a sales order item
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The sales order item is a cost bearer
This means that the costs, and also the revenues, can be posted
individually and directly on the SD item
 Incoming orders, billing, payment are nearly all identical
to the steps in sales ex stock.
 Transport and delivery do not apply
 When the service is completed, you can pass on the costs
and revenues to the profitability analysis (CO-PA) via the
Order Settlement