Intro to SAP Enterprise Systems Configuration EGN 5620 Enterprise Systems Configuration...

Intro to SAP Enterprise Intro to SAP Enterprise Systems ConfigurationSystems Configuration

EGN 5620 Enterprise Systems ConfigurationEGN 5620 Enterprise Systems Configuration (Professional MSEM) (Professional MSEM)

Fall, 2013 Fall, 2013

January 2008January 2008

© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 22

SAP R/3 IntroductionSAP R/3 Introduction Enables a company to link it’s business

processesTies together disparate business

functions (integrated business solution)Helps the organization run smoothlyReal-time environmentScalable and flexible



SAP R/3 IntroductionSAP R/3 Introduction Central 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, PM

Add-ons: ◦Customer Relationship Mgmt (CRM)◦Supply Chain Mgmt (SCM)◦Product Lifecycle Mgmt (PLM) ◦Business Intelligence (BI)



Relational Database Relational Database Tables: Defines and links a couple of tens

thousands 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



Client/Server Environment Client/Server Environment

Client◦Software/hardware combination that can

make a request for services from a central repository of resources

Server◦Software/hardware combination that can

provide services to a group of clients in a controlled environment



Three-Tier SAP StructureThree-Tier SAP StructureGUI – Graphical User Interface or Web

InterfaceApplication server (one or many)Database server (one single location)

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 rights reserved. reserved. 77

SAP Enterprise System

Database

Application

Presentation

Browser ClientPCs, Laptops, etc.

Network

Application Servers

Database

Internet Transaction Server

Web Server

Enterprise Systems (history & Evolution)Enterprise Systems (history & Evolution)



SAP R/3 IntroductionSAP R/3 IntroductionInstance – each install of the SAP R/3

software on an individual application server

Configurable – each instance can be distinctively configured to fit the needs and desires of the customer (within limits)

Most of the infrastructure decisions, including configuration decisions, occur during project implementation



SAP ConfigurationSAP Configuration

The process of tailoring SAP software by selecting specific functionality from a list of those supported by the software, very much like setting defaults (e.g., Word, Access)

DOES NOT involve changes to the underlying software code



Programming Code Modifications Programming Code Modifications

Changes to the delivered code

ABAP/4 – Advanced Business Application Programming (ABAP)

This should be done carefully as it can make migration to new versions of the software much more difficult

SAP Data TypesSAP Data Types

Required data types:

1.Organizational levels (data, elements)

2.Master data

3.Transaction data

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 accounting

Organizational 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

Data Types: Organizational levelsData Types: Organizational levels

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 organizationsDivisionsDistribution channelSales areasShipping pointPlantStorage location

Organizational levels in PPPlantWork CenterStorage locationShipping Point

Data Type: Organizational levelsData Type: Organizational levels

Procurement

Client GBI CC US##

Dallas DL##

Miami MI##

S. DiegoSD##

CA##

TorontoTO##

Shipping Point DL##

Storage Location

RM##

MI## SD## HD## HH##

AU##

PerthPE##

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##

AsiaAS##

SAP Enterprise Structure ExampleSAP Enterprise Structure Example

Sales and Distribution

Client GBI Credit 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

Div

isio

n B

icyc

les

BI

Div

isio

n A

cces

sori

es A

S

SAP Enterprise Structure ExampleSAP Enterprise Structure Example

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


◦Data generated during executing process (steps) combining: Organizational levels Master data Situational data (who, what, when, and where)

◦Example: sales order Organizational levels: customer, company code,

sales area Master data: customer master, material master Situational data: date, time, person, quantities

Types of Data: Transaction data

• 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




SAP R/3 Document Principle SAP R/3 Document Principle

Each business transaction that writes data to the database creates a uniquely numbered electronic document

Each document contains information such as◦Responsible person◦Date and time of the transaction◦Commercial content

Once created, a document can not be deleted from the database

Key Concepts in SAPKey Concepts in SAPThe Document Concept: Transaction document

Global Bicycle Incorporated 5215 N. O’Conner Blvd. Dallas, Texas, 75039 Phone: +1.972.555.2000 Fax: +1.972.555.2001

PURCHASE ORDER Purchase Order Number: 4546

THE PURCHASE ORDER NUMBER MUST APPEAR ON ALL RELATED CORRESPONDENCE, SHIPPING PAPERS, AND INVOICES

TO: Olympic Protective Gear 2100 Summit Boulevard Atlanta, GA, 30319

SHIP TO: GBI San Diego Distribution Center 150 Spear Street San Diego, 94105 +1-415-555-7700

Purchase Order # P.O. DATE Delivery Date Shipped VIA F.O.B. Point Payment Terms

4546 July 11, 2009 July 27, 2009 Ground Destination Net 30

Quantity Material # Material Description Unit Type Unit Price Item Total

100 KPAD 2160 Knee Pads Each 37.50 3,750.00

100 EPAD 2130 Elbow Pads Each 37.50 3,750.00

50 OHMT 2220 Off-road Helmets Each 25.00 1,250.00

SUBTOTAL $ 8,750.00

SALES TAX Exempt

SHIPPING & HANDLING Included

OTHER N/A

ORDER TOTAL $ 8,750.00

, Authorized by: __________________________________________________ Purchasing Manager

Date: ____________________

Header

Line items

Key Concepts in SAPKey Concepts in SAPThe Document Concept: Material Document

PEN, Inc. PEN, Inc. System ConfigurationSystem Configuration

IntroductionIntroduction

EGN 5620 Enterprise Systems ConfigurationEGN 5620 Enterprise Systems Configuration (for Professional MSEM) (for Professional MSEM)

Fall, 2013Fall, 2013



Learning by Creating a Model Learning by Creating a Model BusinessBusinessUnderstanding business processes and

their integrative natureUnderstanding SAP organizational

structuresCombining business processes and SAP

organizational structure (i.e., configuration)

Test the newly configured systemView system outputs - statistics, reports,

and graphics



Pen Inc.Pen Inc.Start-up company in the promotional pen

businessInitially 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 – produce and distribute

Enterprise StructureEnterprise Structure

PlantPlant

Client Client

Chart of Chart of AccountsAccounts

CompanyCompanyCode (C_ _ _)Code (C_ _ _)

Fiscal YearFiscal YearVariantVariant

Credit ControlCredit ControlAreaArea

PurchasingPurchasingOrganizationOrganization

Purchasing Purchasing GroupGroup

Shipping Shipping PointPoint

SalesSalesOrganizationOrganization

Distribution Distribution ChannelChannel

DivisionDivision

Sales AreaSales Area

Controlling Controlling AreaArea

SL10SL10 SL20SL20

Company configurationCompany configuration◦Pen Inc. _ _ _US manufacturing Company

Vermillion SD, US◦Facilities:

One manufacturing plant with warehouse in Vermillion (Plant)◦Work Center◦Storage Location

10 for Trading and finished goods 20 for Quality 30 for Raw materials

◦Shipping point◦Sales Organization◦Purchase Organization

The company to be configuredThe company to be configuredCost Center Standard Hierarchy

ADMIN_ _ _ (Cost Center Group)• Acct-Finance • Administration• Purchasing• Information Tech

Sales _ _ _ (Cost Center Group)• Sales • Marketing

Distribution-Production Cost Center _ _ _ (Cost Center Group)• Warehouse • Production

Pen Inc. : The companyPen Inc. : The companyProducts

◦Trading Materials BPEN _ _ _ (Barrel Pen) CPEN _ _ _ (Click Pen) PPEN _ _ _ (Premium Pen) Box _ _ (Pen Box)

◦Finished products EPEN _ _ _ (Executive Pen) ESET _ _ _ (Executive Set)

Pen Inc. : The companyPen Inc. : The companyCustomers

Pen Inc. : The companyPen Inc. : The companySuppliers

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)

Pen Inc. : The companyPen Inc. : The company

The IS of the Pen, Inc. will ◦integrate and share all services for all business

functions 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

Exercises: Exercises: due date – 8/17/2013due date – 8/17/2013

21. Create company code22. Create chart of accounts23. Assign company code to chart of accounts24. Assign company code to fiscal variant25. Create Credit control area26. Assign company code to credit control area27. Assign permitted credit control areas to company

code 29. Define plant30. Define storage locations (inventory and quality)31. Define purchasing organization32. Create purchasing group

Exercises: due date – 8/17/2013Exercises: due date – 8/17/201333. Assign plant to company34. Assign purchasing org. to company code35. Assign purchasing org. to plant36. Set up parameter ID37. Create Account groups38. Define retained earnings account40. Assign company code to field status variant41-57 Create 17 general ledger accounts58. Run general ledger list of accounts reports

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