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SAP ERP Financials Quick Reference Guide: SAP ECC 6.

by Surya Padhi Mercury Learning. (c) 2013. Copying Prohibited.

Reprinted for Anil Komma, Accenture anil.k.komma@accenture.com Reprinted with permission as a subscription benefit of Skillport, http://skillport.books24x7.com/

All rights reserved. Reproduction and/or distribution in whole or in part in electronic,paper or other forms without written permission is prohibited.


Chapter 1: An Overview to SAP ERP Financials

1.1 SAP and Its Products SAP Business Suite is an integrated application that enables enterprise to execute business processes and optimize resources. SAP Business Suite is designed to perform business-specific functions and work with other SAP and non-SAP products. SAP Business Suite application provides industry specific solutions and comes with the following core solutions.
SAP Business Suite SAP Business Suite SAP Customer Relationship Management (SAP CRM) SAP Enterprise Resource Planning (SAP ERP) SAP Product Lifecycle Management (SAP PLM) SAP Supply Chain Management (SAP SCM) SAP Supplier Relationship Management (SAP SRM)

Figure 1.1: SAP Business Suite. SAP Customer Relationship Management (CRM)

Figure 1.2: mySAPTM CRM solution map. Copyright 2012. SAP AG. All rights reserved. Customers are the most valuable asset of any business. One of todays most significant business challenges is retaining old customers while finding new customers. SAP CRM Solution includes:

Marketing Sales Service Contract center E-Commerce

SAP Enterprise Resource Planning (ERP)

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Figure 1.3: mySAPTM ERP roadmap. Copyright 2012. SAP AG. All rights reserved. With the help of SAP ERP, a component of the SAP Business Suite, companies can improve their business process using the following elements:

SAP ERP Financials is comprehensive integrated financial management software that empowers finance and costing departments. Later in this book we will discuss Financial Information and Controlling (FICO) and Financial Supply Control Management (FSCM) component of SAP ERP Financials. SAP ERP Human Capital Management is an integrated and complete solution for human resource processes. SAP ERP Operations helps achieve operational excellence in key business areas such as procurement, logistic execution, product development, manufacturing, sales, and service. SAP ERP Corporate Services application increases efficiency by providing solutions to corporate service functions.

SAP Product Lifecycle Management (PLM)

Figure 1.4: mySAPTM PLM solution map. SAP PLM is part of the business suite, which gives organizations the unique ability to perform their essential business processes with modular software that is designed to work with other SAP and non-SAP software. In SAP PLM, one can:

Create and deliver innovative products

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Optimize product development process Become more agile than ones competitors

SAP Supply Chain Management (SCM)

Figure 1.5: mySAPTM SCM solution map. Copyright 2012. SAP AG. All rights reserved. The SAP SCM solution automates customer-centric business processes across many aspects of an organizations operation. The SAP SCM application is a complete supply chain management application that enables collaboration, planning, execution, and coordination that empowers companies to adapt their supply chain process in an ever-changing and competitive environment. SAP Supplier Relationship Management (SRM)

Figure 1.6: mySAPTM SRM solution map. Copyright 2012. SAP AG. All rights reserved. The SAP SRM application automates, simplifies, and accelerates procure-to-pay processes for goods and services. With SAP SRM, you can reduce procurement costs, build collaborative supplier relationships, better manage supply bases, and improve your bottom line with innovative offerings and a faster turnaround time to the market. Along with that core solution, SAP has developed the following industry specific modules to cater to business specific requirements:

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Financial and public services

Banking Defense and security Healthcare Higher education and research Insurance Public sector


Aerospace and defense Automotive Chemicals Consumer products Engineering, construction, and operations High tech Industrial machinery and components Life sciences Mill products Mining Oil and gas


Media Professional services Retail Telecommunications Travel and logistics services Utilities Wholesale distribution

Like other ERP packages, SAP is also a complex ERP in order to meet various business requirements as well as countryspecific requirements. While no ERP can cover 100% of organizationsbusiness requirements, SAP covers the standard functionality of almost all countries. The difference between the business requirements and functionality available within a ERP is called GAP. A customer chooses ERP, which reduces this GAP. To meet business requirements, we now have two options: 1. When functionality is available, configure the system. 2. When functionality is not available, either we can customize or change the business process. In this book, we will cover SAP ERP Financials FICO (FI Financial Information & CO Controlling, now commonly known as Management Accounting and FSCM.
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