Sap

Introduction to SAP

SETHU.PMSJCET SCHOOL OF MANAGEMENT, PALAI

ERP is a high-end sophisticated software solution that reduces the pressure and workload off the managers and provides accurate, timely information for taking appropriate business decisions. Managers with knowledge of ERP will be able to achieve their targets and goals by proper implementation of ERP system in their organization.

In fact managers are expected to translate the business rules and requirements for mapping them into ERP software.

Implementation of ERP solutions is one of the largest drivers of growth in the consultancy business.

What is ERP?

SAP BANN

JD Edwards Karen

Microsoft Great Plains (GP) Sage

Engineer Link People Soft

Oracle Client Serve Three

ezijobz MRP(II)

Lease Soft eX.e.ge.Sys

ERP SOFTWARES

ERP Helps in

Decision support system (DSS). Smooth flow of routine process. Automatic record keeping. Common inter-department resource pool. Better planning at all levels. Data warehousing & various self-service interface for

customers, suppliers & employees.

Overall Business Benefits

Information.Maximizes information throughput.Provides timely information. Integrates information throughout supply chain.

Minimizes response time. Pushes decision making down to lowest levels. Reduces costs. Cuts inventory. Improves operating performance.

o SalesIncreased efficiency.

o Lower quotes, reduced lead time, improved responsiveness.

o Manufacturing.Concurrent engineering.

o Faster design and production.

o Data Service.Accurate customer service history and warranty

information.

o Accounts Payable.Suppliers paid accurately.

Department Benefits

o Supply Chain ManagementSupply Chain Planning, Claim Processing, Commission

calculations, Supplier scheduling, Inspection of goods, order entry, Inventory.

o Project ManufacturingCosting, billing, time & expense, activity management.

o Financials Cash Management, Fixed assets, General ledger,

Accounts Payables, Accounts Receivables. o Data Warehouse

Self-service interface among Suppliers, Customers, Employees.

Enterprise Architecture - Benefits Eliminates the duplication, discontinuity and redundancy in data. Increases the return on investment made on IT implementations. Delivers quality information designed for the Enterprise as a whole. Faster and cheaper. Delivers quality information to produce a quality enterprise. Reducing required manpower. Eliminating legacy systems. Can cause fragmentation. Foundation of e-Business. Back-office functions. Standardization . Helps obtain and maintain competitive advantage. Improved interactions with customers and suppliers.

Limited training budget.

Lack of Skills and Experience.

Cost estimate is $ 30,000 to 500,000,000.

Limited technical staff.

Systems difficult to use.

Too rigid system .

Compatibly problem with legacy systems

Disadvantages

Evolution of ERP

1960’s: Inventory Control Systems 1970’s: MRP: Material Requirement

Planning 1980’s: MRPII: MRP & Distribution 1990’s: MRPII ERP with introduction

of other business functions CRM’s

Today: Web Enabled ERP – Connecting ERP Externally

What is the full form of SAP? Systems Applications and Products in Data

Processing.

SAP is both the name of the Company as well as their ERP Product SAP system comprises of a number of fully integrated modules, which covers virtually every aspect of the business Three systems developed : R/1, R/2, R/3

What is SAP ???

History of SAP Founded in 1972 by Wellenreuther, Hopp, Hector,

Plattner and Tschira Renamed in 1977 Before 1977 : Systems Analysis and Program Development

(German : Systemanalyse und Programmentwicklung)

SAP is both the name of the Company as well as their ERP Product

SAP system comprises of a number of fully integrated modules, which covers virtually every aspect of the business

Three systems developed : R/1, R/2, R/3

Introduction to SAP SAP Supports all Kinds of Industries and all

Functions of the Industry SAP is an Integrated System This means that all SAP modules are designed to

share information and automatically create transactions based on various business process.

SAP R/2 is the SAP Mainframe Based Software Package

SAP R/3 is the SAP Client/ Server – 3 Tier Architecture Based Software Package

SAP is the leader of ERP software vendor. Enterprise Resource Planning is a back office

application for Enterprise .21 Industry Vertical Solutions.80% Fortune 500 Companies Use SAP.66% Market share in India.Over 18,500 Customers 76000 installations in 120+

Countries, +2500 installations in India.Over 12 million users.

Evolution of SAP products

R/3

R/3Enterprise

SAP NetWeaver

mySAP ERP

SolutionsmySAP CRMmySAP SCMmySAP HR

mySAP PLM………..

mySAPBusiness

Suite

Web AS

•Easing Upgrade Plans & Providing Transition Options

•Bringing benefits of SAP Netweaver into installed base

•New Customers have more entry options & receive world –class ERP

User Every SAP user has a user name.

Users of SAP system are client-specific, which means that having a user identification on one client will only allow access to that particular client.

Language SAP supports multi-national character sets and

languages on the same system, at the same time.

Default languages are English and German.

Password Rules

Letters Numbers Easy to remember 3-8 Characters long No 3 Characters can be the same Do not start with a ? or an ! Do not use previous 5 passwords

•Integrated

•Enterprise-Wide•Best Business Practices

SAP•Multi-Currency

•Multi-Lingual

•Secure Information

Why - SAP R/3 has been successful

Real time processing with an integrated suite of client/server applications. Comprehensive Open Business Process orientation Fully Integrated business process Modular Structure International – yet consistent Providing maximum flexibility & Scalability Strong backbone for future technologies.OSS 24 hr support available.

Why - SAP R/3 has been successful

Aerospace/DefenseAutomotiveBankingChemicalsConsumer ProductsEngineering/Construction Financial Svc ProviderHealthcareHigh TechHigher Education/ResearchInsurance

Media Mill Products Mining Oil & Gas Pharmaceuticals Public Sector Retail Service Providers Telecommunications Utilities

SAP Industry Solution

Human ResourcesControlling Client

CompanyCode

PurchasingOrganization

PersonnelArea

Production Planning

Sales and Distribution Materials Management

Financial Accounting

SalesArea

ControllingArea

Plant

Organizational Structure in SAP

SAP AGFounded in Germany (1972).World’s fourth largest software provider. World’s largest provider of Integrated

Business Solutions software.Company stock trades on the Frankfurt and

New York exchanges.

R/2 System Components

RA - Assets Accounting RF - Financial Accounting RK - Cost Accounting RK-P - Projects RM-INST - Plant Maintenance RM-MAT - Materials Management RM-PPS - Production Planning and Control RM-QSS - Quality Assurance RP - Human Resources

Two Tier Client/Server System

User PCs

Database andApplication

Server

R/3R/3Client / ServerClient / Server

COControllingCOControlling

AAAssetAccounting

AAAssetAccounting

PSProjectSystem

PSProjectSystem

WFWorkflowWFWorkflow

ISIndustrySolutions

ISIndustrySolutions

MMMaterialsMgmt.

MMMaterialsMgmt.

HRHumanResources

HRHumanResources

SDSales &Distribution

SDSales &Distribution

PPProductionPlanning

PPProductionPlanning

QMQualityMgmt.

QMQualityMgmt.

FIFinancial Accounting

FIFinancial Accounting

PMPlantMaintenance

PMPlantMaintenance

Integrated solutions

Open systems

Client / serverarchitecture

Enterprise datamodel

Designed for all typesof business

MultinationalEuro Y2K

Comprehensivefunctionality

SAP R/3 Basis System

Three-tier Client/Server Architecture

USER PCsUSER PCs

ApplicationServer

ApplicationServer

ApplicationServer

ApplicationServer

DatabaseServer

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.

SAP AG

R

What is a Client?

“A client is an autonomous unit in the R/3 System withregard to commercial law, organization, and data.”

ClientClient

Common Client Roles

CUST

QTST

PROD

Development &Development &CustomizingCustomizing

Quality AssuranceQuality Assurance

ProductionProduction

Configuring of client settings andcreation of new functionality

Functionality testing andverification of configuration

Productive activities and businessdata

Additional Client Roles

SAND

PPRD

SandboxSandbox

TestTest

TrainingTraining

Pre-productionPre-production

Sampling of customizingtransactions and settings

Testing of configuration settingswith data

Configured environment for theload of legacy data prior to thestart of productive activities

TRNG End-user customer trainingenvironment

TEST

The SAP R/3 architecture is based on a 3-tier client/server principle

Presentation Server Application Server Database Server

Dedicated Servers are linked by Communication Networks

SAP R/3 Architecture 3 Tier Client / Server

Architecture

Overview of Presentation & Database Servers

The Presentation Server GUI only At workstation Very light Sends requests to application server Obtains screens from application server and

displays

The Database Server Interface between application server and RDBMS Also holds the vendor specific DB driver

SAP – system landscape

Server

Client

SAP technology environment

SAP Application ModulesSAP Application Modules

R/3 Data RepositoryR/3 Data Repository

DatabaseDatabase

UserInterfaceUserInterface

CommunicationsCommunications

Enterprise NetworkEnterprise Network

Operating SystemOperating System

Hardware Platform and EnvironmentHardware Platform and Environment

PlatformIndependent

PlatformDependent(Basis)

R/3 Technology Environment

DB2/390

ADABAS DDB2 for AIXINFORMIX-OnLineORACLE

Windows 3.1, Windows 95, Windows NT,OSF/Motif, OS/2 Presentation Manager (PM),Macintosh, Java

ADABAS DMS SQL Server INFORMIX-OnLineORACLE

ABAP/4, C, C++, HTML, Java, ActiveX-Controls

DB2/400

OS/390AIXDigital UNIXHP-UX

ReliantUNIX (SINIX)SOLARIS

Windows NT OS/400

Hardware Bull/ZenithCompaqData General...

NCRSequentSNI

DigitalHP (Intel)IBM (Intel)

BullDigitalHP

IBMSNISUN

UNIX Systems

IBMAS/400

Operatingsystems

DialogSAPGUI

Languages

Windows NT,Windows 95,PM, Java

Databases

IBMS/390

R/3 System: Hardware/Software Views

Typical Client Server Architectures

Central System

Two - tierDistributed

System

Two - tierClient/Server

Three - tierClient/Server

Multi-layerCooperative

Client/Server

Presentation Application

Database

Database and Application

R/3 System ConfigurationsCentral System

SAP2-Tier Configuration 3-Tier Configuration Web-enabled

Presentation

Database,

Application,

Presentation Database

Application

Presentation

Internet Transaction Service/Web Service

In a central R/3 System configuration, one host is responsible for all processing tasks.


R/3 System ConfigurationsCentral Systems


Presentation

Database,

Application,


Application

Presentation


Two‑tier R/3 System configurations are usually implemented using special presentation servers that are responsible solely for formatting the graphical interface. Many R/3 System users use PCs with Microsoft Windows ‑installed, for example, as presentation servers.

An alternative two‑tier configuration is to install powerful desktop systems and to use these for presentation and applications (two‑tier client/server). This type of configuration is particularly useful for expensive applications (such as simulations) or for software developers.




Presentation

Database,

Application,


Application

Presentation


In a three‑tier configuration, you use your own host for the three tiers. Using data from the database server, several different application servers can operate at the same time. To ensure that the load on individual servers is as even as possible and to achieve optimal performance, you can use special application servers for individual application areas such as sales planning, distribution or financial accounting.




Presentation

Database,

Application,


Application

Presentation





Presentation

Database,

Application,


Application

Presentation


To web‑enable the SAP Applications, a Web Server and an ITS (Internet Transaction Server) are needed. The web‑service and the services for the ITS can run on one server or on two dedicated servers. The presentation in this configuration is provided by an Internet Browser. The new SAP Web platform is NetWeaver.

Basis System: Three-Tier Computer Hierarchy

Input / Outputof data to users

Access to Database:(Read / Write data)

Central Database(Storage of all data)

Database

Application

Presentation

Processing of datausing application logic

Presentation of theprocessed data tothe user

Database Server

Application Servers

HR

Inte

rnet

FI

Presentation Servers

Financial accounting (FI)

Controlling (CO)

Asset management (AM)

Materials management (MM)

Sales and Distribution (SD)

Production Planning (PP)

Quality management (QM)

Plant maintenance (PM) & Customer Service (CS)

Project system (PS)

Human resources (HR)

Workflow (WF)

SAP R/3 Application Modules

MMMaterial Procurement

Inventory ManagementBatch ManagementGoods inspection

Invoice Verification

PPBOM/Work Center/Routing

MRPCapacity Evaluations

Production OrdersQM in production

SDInquiry processing

Sales Order ProcessingDelivery Processing

Billing

FIGeneral Ledger

Accounts PayableAccounts receivableCash management

COCost Center Accounting

Product CostingOrder Contribution Analysis

Module Functionalities

• External reporting of • General ledger

• Accounts receivable/payable

• Sub-ledger accounts

Key elements• General ledger

• Accounts payable

• Accounts receivable

• Asset Management

• Special Purpose Ledger (FI-SL)

• Legal consolidation

• Accounting Information System

Module FI – Financial Accounting

Consolidation

Extended General Ledger

PayablesReceivables

Bankaccounts

General Ledger

Cash managementand forecast

Foreign exchangemanagement

Managementof securetiesand loans

Finance informationsystem

Bank

Invoiceverification

Accountspayable

Creditmanagement

Accountsreceivable

Financial Accounting

• Represents the flow of cost and revenue

• Instrument for organizational decisions

• Key elements of the CO application module include :

• Cost center accounting

• Product cost Planning

• Product Costing

• Profitability analysis

• Profit center accounting

• Activity based costing

• Enterprise controlling

Module CO – Controlling

• Optimize tasks/activities in

• Sales

• Delivery

• Billing

• Key elements of the SD application module include :

• Pre-sales support

• Inquiry processing

• Quotation processing

• Sales order processing

• Delivery processing

• Warehouse management

• Billing

• Credit Management

• Sales Information system

Module SD – Sales and Distribution

Sales and Distribution Processing M

A T

E R

I A L

S M

A N

A G

E M

E N

T

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

Salesactivity

S A

L E

S

I N

F O

R M

A T

I O

N

S Y

S T

E M

Sales Support

Sales

Shipping

Billing

Subsequentdelivery free

of charge

Inquiry

Quotation Contract

Delivery free ofcharge

Salesorder Returns Scheduling

agreementUSD

Delivery

InvoiceDebit memo Credit memo

• Supports • Procurement

• Inventory

• Key elements

• Materials procurement (purchasing)

• Inventory management

• Invoice verification

• Material valuation

• Vendor evaluation

• External Services management

• Purchasing Information System (Purchasing)

• Inventory Controlling Information system

Module MM – Materials Management

Materials Management

Service /spare parts

Material Special stockBatch

Vendor/one-timecustomer

Purchasinginfo record

Servicespecifications

Workflow

Optical archive

TextsMailCommunication

Classification

Documents

Conditions

BASIC DATABASIC DATA

Pu

rch

asin

g i

nfo

rmat

ion

sys

tem

Ven

do

r ev

alu

atio

n

Purchase requisitionPURCHASINGPURCHASING

MRP Direct requisition Release procedures

RFQ/Quotation Material/service Price comparisons Price comparison list

Purchasing Purchase orders Outline agreements Scheduling agreements

Goods receipt/issue Transfer posting Quantities and values Physical inventory Storage bins

Check and post Price update

INVENTORY MANAGEMENTINVENTORY MANAGEMENT

INVOICE VERIFICATIONINVOICE VERIFICATION

SD

PP

PM

QM

FI

AM

CO

PS

Third-partyorder

Requirements

Inspection lot

Fixed assets

Cost center /Budget

Project

G/L accountsCash managementand forecast

Service/ Spare Parts

• To plan and control the manufacturing activities• Key elements

• Bill of Material (BOM)• Routings• Work Centers• Sales and Operations planning (SOP)• Master Production Scheduling (MPS) – Capacity Planning• Materials Requirement Planning (MRP)• Shop Floor Control (SFC)• Production orders• Product costing, activity-based costing• Work in process • Production planning for process industries (PP-PI)• Repetitive Manufacturing

Module PP – Production Planning

FI CO HRCostaccounting

Financialaccounting

Humanresources

ProjectNetworks

MaintenanceRepairsPlant maintenance

Inbound Raw Material

Finished Goods

Sales and Operations PlanningDemand management / MPSMaterial requirements planning

Detailed Schedeling and PlanningCapacity planningShop floor controlCostingInformation system

PurchasingWarehouseInvoice verification

SalesShippingBilling

Customers

Vendors

SDPP

SDSD

SDMM SDQM

SDPM

SDPS

Production Planning

• Supports • Quality planning

• Inspection

• Control for manufacturing

• Costing

• Procurement

• Key elements

• Quality planning

• Quality during procurement, production, distribution

• Quality Management Information - Quality inspection

• Information System (QMIS)

Module QM – Quality Management

• PS – Project Systems• Support planning, control, & monitoring of long term highly

complex projects with defined goals• Key elements

• Project WBS – Plan• Budget & Monitor• Network Management • Activity monitoring, Material Planning, Milestones,

Capacities Scheduling• Project Management Information System

Module PS – Project Systems

Module HR – Human Resource•HR – Human Resource

• Key elements• Recruitment• Payroll & Time management• Travel Expense accounting & Benefits• Workforce planning & Training administration• Organization management

• Combines SAP R/3 application modules to additional industry-

specific functionality

• Result of the research by industry Centers expertise (ICOE)

Module IS – Industry Solutions

Procurement ProcessOutlineAgreement

Demand

Purchase Requisition Vendor

Purchase OrderGoods Receipt

& Inventory Mgmt.

AccountsPayable Invoice

Verification

Scheduling Agreement

Production Process

Goods Issue Shop Floor

Goods ReceiptOrder Settlement

Schedule/Release

Sales Process — Trading Goods

Customer Order Picking

Goods IssueBillingAccounts Receivable

Packing

Sales Process Finished Goods

Customer Order

AvailabilityCheck

Goods Issue

BillingPartial PaymentFinal Payment

Sales Process Finished Goods

Customer Order

Availability Check - Insufficient -

IndependentDemand

MRP Run

ProductionScheduling

Purchasing

DependentDemand

Process Flow

Goods Issueto Shop Floor

GoodsReceipt

Production

Goods IssueBillingAccounts Receivable

The future of ERP software must include CRM, SCM, SEM, BW, KM, Web-enable …

mySAP is the future or extended of SAP ERP software

MRP

MRP II

ERP

TEI

mySAP

Web EnableCustomer Relationship Management (CRM)Supply Chain Management (SCM)Strategic Enterprise Management (SEM)Business Information Warehouse (BIW)Knowledge Management (KM)

ERP Extension

SAP R/3

CRM SCMSEM

BW

KW

• mySAP Business Information Warehouse• mySAP Customer Relationship Management• mySAP Knowledge Management • mySAP Supply Chain Management• mySAP Strategic Enterprise Management

mySAP Components

(

mySAP ERP

mySAP PLM

mySAP SRM

mySAP SCM

mySAP CRM

SAP NetWeaver

mySAP Business Suite

The core capabilities of SAP NetWeaver are the integration of people, information, and process.

In people integration, it simply means that it enables you to bring people together and help them work more efficiently.

Information integration means you can bring together information from a variety of locations and have it make sense in the context of what your folks do everyday.

Process integration means coordinating the flow of work across departments, divisions, and between companies

SAP NetWeaver

SAP Enterprise Portal: helps create software that brings together all the data and software tools that a person needs to do her job in one consistent user interface.

SAP Mobile Infrastructure: universal translator for mobile devices.

SAP Business Intelligence: provides tool for information integration, so what your people see is consistent and accurate.

SAP Master Data Management: is a system for harmonizing information that is distributed across a wide variety of applications .

SAP Exchange Infrastructure: Integrates processes and help applications talk to one another

Logging On – SAP Gui

To log on to an R/3 system with the SAP Gui, you need the proprietary SAP Gui (Graphical User Interface) software loaded on your system and an internet connection

Account onSAP R/3 System

in Missouri

Internet Connection

PC with SAP Gui

SAP Gui Configuration

First, you need to tell the SAP Gui which system you want to log into:

If you don’t haveany systems defined,click on New Item

System Definition (provided by UCC)

Text description (free)

Address of system (e.g.sapd.umsystem.edu)

SAP Router usually not required

R/3 System Selected

System NumberFrequently 00, but not always

System IDLogical name of system

76

Configured SAP Gui

Select System: double-click or Logon button

Logging On

Enter Client

Enter User (R/3 Account)

Enter Password (R/3 Account)

Don’t worry about language—English will default in

Logging On

On the first time logging in toa new account, you will haveto change the password—tryTo remember your newPassword WITHOUT WRITINGIT DOWN!

SAP vs. MS Office

Database andApplication

Server

Nothing is saved on your PC. Only things saved on ourserver in Missouri are saved, and they are saved for good.

Benefits of SAP R/3 Business Application Modules Seamless integration across functions and locations Efficient co-ordination of demand, supply and production Addresses all businesses environments – MTO, MTS,ATO etc. Built in best business practices Covers Multi-Country, Multi-Company, Multi-Plant and Multi-

Language implementation Country versions to address local requirements – Legal, statutory

etc. Better control and monitoring of business e.g. authorisations, reports Centralised control over de-centralised multi-location operations Handles Mutiple - valuation schemes, accounting system, operating

system, RDBMS

Quiz

1. What does SAP stand for?2. What does ERP stand for?3. What is the difference between SAP

R/2 and SAP R/3?4. What business application module is

the FI module?5. Is the FI module an R/2 or R/3

business application module?

Quiz - Answers

1. System, Application, and Products in Data Processing

2. Enterprise Resource Planning3. SAP R/2 is the SAP Mainframe Based Software

Package and SAP R/3 is the SAP Client/ Server – 3 Tier Architecture Based Software Package

4. Financial Accounting5. R/3 – the R/2 Financial Accounting model is RF

Links

http://www.cio.com/forums/erp/ http://www.intelligententerprise.c

om/ http://www.sap.com/ http://www.oracle.com/ http://www.peoplesoft.com/ http://www.jdedwards.com/ http://www.baan.com/

http://www.cio.com/forums/erp/

http://www.intelligententerprise.com/

http://www.intelligententerprise.com/

http://www.sap.com/

http://www.oracle.com/

http://www.peoplesoft.com/

http://www.jdedwards.com/

http://www.baan.com/

[email protected]@ymail.com

mailto:[email protected]

mailto:[email protected]

Date post:	20-May-2015
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