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SAP ERP INTEGRATION OF BUSINESS PROCESSES (C_TERP_60)


TABLE OF CONTENTS 1)
1)

ERP Basics / SAP ERP positioning SAP NetWeaver integration Lifecycle Data Management Procurement Cycle


2)


3)

5) Material Planning 7) Manufacturing Execution 9) Sales Order Management 11) ERP Financials Financials Accounting (FI) 15) Management Accounting-Controlling - CO 20) Inventory and Warehouse Management / Stock Transfer and Transfer Posting 23) Enterprise asset management and customer service 27) Program and Project Management 31) Human Capital Management / HCM Structures 35) Business Intelligence / Business Information Warehouse
Abbreviations used:
Q = quantity - $ = price - oo 1 (several to one)


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ERP Basics / SAP ERP positioning


ESA: Enterprise Services Architecture enables business innovation by: Levering existing IT assets Reducing TCO Maximizing agility, flexibility, extendibility of business process Enterprise services describe the broader business process logic. Web services are small, modular applications that use Internet technologies and are usually accessed as detailed functions in applications or enterprise services. SAP Netweaver is the application and integration platform that best supports ESA using web services technology. 4 addit. features offered by SAP ERP 2003 vs SAP SAP R2: Mainframe computing/centralized computing R3 Entreprise SAP R3 Enterprise (1992): Client Server architecture: 2 layer architecture (SAP basics + SAP application) Started Using Web AS Self services SAP ERP (2003): Service Oriented Architecture (SOA) powered by Netweaver. Uses Web AS Self service procurement 1 additional feature offered Internet sales SAP ERP Central Component (ECC) Uses Web AS SAP Business suite: SAP ERP (Entr. Ressource Planning) SAP CRM (Cust. Relat. Mgt) SAP PLM (Product Lifecycle Mgt) SAP SRM (Supply Relat. Mgt) SAP SCM (Supply Chain Mgt)
by SAP ERP vs SAP ERP 2003 Composite applications

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SEM

Solution map: Shows the processes enabled by a specific solution


SAP NetWeaver integration


(SAP Enterprise Portal)

People Integration

Information Integration (SAP Business Intelligence) Process Integration (SAP Exchange Infrastruct)
(SAP Web Applic. Server)

Application Platform

Portal infrastructure Collaboration Multi channel Access Business Intelligence Knowledge Management Master Data Management Integration Broker Business Process Management Support J2EE Support JAVA DB & OS abstraction

The central component of the Application Platform is the SAP Web Application Server (SAP Web AS) Operating System and DB independence Multilevel architecture Java and ABAP environment (open environment) Provides basics functions for almost all SAP systems High scalability

The functions of the different SAP systems (such as SAP ECC, SAP CRM) can be divided into two categories: Basis functions: are very similar in the various SAP systems. Are provided by the SAP WebAS, which is a further development of the classic SAP Basics. Application functions: are different in the various SAP systems

Advantages of SAP NetWeaver: 1. Openness and Extendibility (Microsoft.NET; IBM WebSphere) 2. Immediate Integration 3. Lower Total Cost of Ownership 4. Clear Roadmap Organizational levels: represent the enterprise structure in terms of legal and/or business-related purposes.

Client Company Code Controlling area Plant Storage Location Sales area Purchasing organiz

Is the highest-level element of all organizational elements FI central org. element: balanced sheet, legally independent
Identifies a self-contained organ. structure for which costs and revenues can be managed and allocated. It represents a separate unit of cost accounting.

Prod. Planning, logistics: central org. element Inventory Management Combination of: sales organization Distribution channel division Each country in which plants operate has ONE purchasing organization. It purchase for all plant in the country.

Master data Master data: data which is used long-term in the SAP system for several business processes and ensures NO redundancy of data in the system. Master data has an organizational aspect as the information is organized into VIEWS which are assigned to organizational elements. EX: Customer master = 3 views:
(Client): General data - (Company code): Financial Accounting data - (Sales Area): Sales data

Transactions: application programs which execute business processes in the SAP system such as creating a customer order; posting an incoming payment, etc. Document: a data record that is generated when a transaction is carried out. Every transaction creates a document which contains all relevant pre-defined information from the master data and organizational elements assigned. Reporting solutions OLAP: online analytical processing: optimized for query. (Informative environment) OLTP: online transaction processing: optimized for transaction processes. (Operating environment) SAP BW: enable the analysis of data from operative SAP applications as well as all other bus. applic. and external data sources such as databases, online servs, internet.

Lifecycle Data Management


SAP PLM is used in tight collaboration with SAP CRM and SCM.

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4 components of Life Cycle Data Management: (DIPE) 1. Document management: integrate external files, by storage of the original documents in secure storages areas or links to other objects. 2. Product structure browser:* is a navigation tool to manage product data. It displays all product-relevant info, such material master, BOM, routing, class, docs. 3. Integration: of most CAx solutions, Office application, GIS, Classification system using PLM interface 4. Engineering Change and configuration management (ECM)*: let make change dependent on date, serial number. Replications of product data is a method used to run a separate system for engineering process in addition to a production system.

Document is made up of a document info record and the original that belong to it. Documents Info Record: Functions: Version management, Status management, Classification, Secure storage areas Purpose : Can be linked to other objects in order to make the original information available to these objects (Material, Equipment, Functional location, Purchase requisition, Document, WBS element, PRT, QM info record, Purchase order, Change number, Network operation, Production order, Customer, Sales document item, etc.) Allows to view and manage originals Controls the process flow. Integration in ECC through object links * Interfaces to external systems (PLM interface + ArciveLink interface)* DMS allows easy way to handle documents.

PLM Interface: Third party CAD-CAx systems, Office appl, GIS, Class.System are connected to SAP ERP using PLM interface. Third party archiving systems are connected by using the ArchiveLink interface. Bidirectional data exchange with third party systems. Standard BAPI and RFC technology. Transfer data with or without a GUI: The Easy DMS interface is a tool for creating and changing docs without an SAP GUI. (SAP is invisible) (BAPI, RFC, Java connectors).

Classification enables flexible searching. Also as a Variant configuration and Batch management Create characteristics and allowed values. Maintain classes and assign characteristics to them. Create objects and assign classes to them (also assign characteristic values for this object). Search for objects by specifying the class to which it belongs and then specifying the values for the charact. of the class. The classifications take place: Directly in the object or Indirectly in a transaction within the classification system.

Configurable material: is a product that can be made in several variants. (is not a finished product) Are all materials in a BOM always used to produce an item that the BOM represents? No. In the case of configurable materials, the BOM mentions all the materials for all variants. Thus some of the materials will be used only in some variants. Dependencies is a feature used to select the materials and operations for a specific variant of a configurable material.

*Product Structure Browser: Is the central navigation and information tool in SAP Life-Cycle Data Management. It displays in tree-structure form all objects that belong to each other functionally, such as: materials, BOMs, documents, classes, characteristics, routings, etc. You can call and change each of the objects from the browser. The Enterprise Application Integration (EAI) is a component that allows the direct viewing of originals in the product structure browser. Engineering Workbench (EWB): Is used as a maintenance environment for product structures and can be used to create and maintain BOMs + Routings. You define a worklist that contains selected objects copied from the database to be processed. *Engineering Change management (ECM): Advantages: Changes that belong together are grouped in a change number Monitoring and documentation of changes Saving multiple change statuses for an object Planning and realization of a specific effectivity Integration in the logistics process chain Change Number Header (general info -- date, validity, status) (No items) Object types Object management records (Actual objects affected) Other info (accompanying docs, Classification -- facilitates search for changes, alternate dates for individual objects)

The ECR/ECO unlike change master record has a status network that enables change processes to be requested, checked, and released.

Procurement Cycle
Organizational Levels/Units represent the legal and/or organizational views of an enterprise.

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Client Company Code Plant

oo | 1

Organizational Levels
oo | oo 1 | 1

Storage Location

Purchasing Organization * Purchasing Group


Highest organizational element) (defined in the system by a 3 digit key Represents an independent accounting unit. Balance sheet and P/L statements, required by law are created at this level. Several plants can be affiliated with one company code, but a plant can only have one company code. Are completely independent org. units with separate Inventory Mgt (=>can belong to <> plants, you can use the same storage location number in more than one plant). No Org. Level included for a PO because its not necessary until good are not received. Negotiate the general condition of purchase for one or more plants or companies / Legally responsible for completing purchasing contracts (do not set price conditions). Buyer or group of buyers responsible for certain purchasing activities. No assign to a purchasing.

Plant-Specific Purchasing Organization Purch. Org. procures materials for only one plant.

Purchasing Organization Types * Cross-Plant Purchasing Organization Purch. Org. procures materials for all plants belonging to one company code.

Cross-Company-Code Purchasing Organization you cant assign a company code to the Purch. Org. in Customizing. When you create a purchase order you must enter the company for which you want to procure the material.

Master data in Procurement: Material Master Data/record: Used by all Logistic modules. (The integration of all material data in a single database object prevents the problem of data redundancy). its subdivided into information grouped by user departments (functions) that manage the modules, so each one has a different VIEW of the material master record and is responsible for maintaining the data to support their function. The data maintained within a view may be valid for more that on Organizational level. For example the Views: Vendor Master Data It contains information about a vendor from a Purchasing (Material Management) and Accounting (Financial Accounting) perspective. It controls how transaction data is posted and processed for a vendor. Also, it contains all the data you require to do business with your vendors. In Accounting, the vendor is regarded as the companys crediting business partner. The vendor master record is therefore maintained by Accounting + Purchasing Data is structured by organizational levels: CLIENT = GENERAL DATA: valid for the whole corporate group. (address, bank account, etc) COMPANY CODE = COMPANY CODE DATA: (ACCOUNTING data, payment transactions, tax) Each PURCHASING ORG = PURCHASING ORG. DATA (payment conditions, etc) Basic Data applicable to the entire company -> Client: product description, material #, material group, unit of measure Purchasing data for orders -> relevant to the Plant Inventory Mgt data for posting goods movements and managing physical inventory Accounting data for material valuation upon goods movements or in invoice verification.-> is relevant to the Company Code Materials Planning data for material requirements planning (MRP) and Execution (Work Scheduling) -> is relevant to the Plant

Purchasing Info Records Contains info on a vendor and the material you procure from this vendor, allowing to find out at any time which vendors offer a particular material or which materials can be procured from a particular vendor. Purchasing info records can be referenced in the planning process to predetermine vendor specific information. Info store and maintain: Current and future prices and conditions (freight and discounts) Delivery data (planned delivery time, tolerances) Vendor data Texts Conditions Are used in purchase orders to determine price. Type of conditions in Purchasing: In a Contract: apply to all contract release orders created with reference to this contract. In a Purchasing Info record: apply to all purchase order items that contain the material and vendor contained in the purchasing info record. Extended conditions: are only included in the purchase order if it meets certain criteria. They are flexible. For ex. To define vendor discounts or include discounts for a material type. SEE PROCUREMENT PROCESS DIAGRAM
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Reporting Standard reports enable evaluation of documents and master data. Parameters that control the information presented in a purchasing report list Selection criteria (ROWS) Selection parameter determines which purchasing documents are analyzed by the report (COLLUMNS) Scope of list parameter determines which data is displayed for a selected document List Viewer and ALV Grid Control: standardize and simplify the handling of lists Uniform design of all lists and tables Key elements Cross application, standardized function with uniform icons Simple creation and changing of layouts (display variants) Choose detail Set filter: display lines with certain criteria Sort: ascending; descending order Functions Add values create totals Create subtotals Layout: change the appearance of the list (LIS) Logistics Information System The following application-specific information systems are available under LIS SIS (Sales Information System) PURCHIS (Purchasing Information System) INVCO (Inventory Controlling) TIS (Transportation Information System) SFIS (Shop Floor Information System) QMIS (Quality Management Information System) PMIS (Plant Maintenance Information System) How Information Structures are organized The Purchasing Information System is based on information structure which contains 3 basic types of information: Characteristics: criteria used for collecting data on a subject (Ex: vendor; customer) Period unit: (Ex: day; week; month) Key Figures: are performance measures; quantitative information based on measurable facts and are updated for each characteristic combination and periodicity. Standard Analyses: Drill down list Analyses can be archived Graphically supported Flexible analyses: allow to determine the way in which data should be combined in an individual report procurement. Combine characteristics and key figures from different information structures in one list Use your own formulas to calculate new key figures from existing ones Choose between a variety of layouts

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Material Planning
oo | 1 oo | Storage Location 1

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Organizational Levels
oo | 1

Client Company Code Plant


Highest organizational element) (defined in the system by a 3 digit key Represents an independent accounting unit. Balance sheet and P/L statements, required by law are created at this level. Several plants can be affiliated with one company code, but a plant can only have one company code. Are completely independent org. units with separate Inventory Mgt (=>can belong to <> plants, you can use the same storage location number in more than one plant).

Master data in Material Planning Material BOM Routing

Material Master Data/record: Represents the central source for releasing material-specific data. Used by all Logistic modules. (The integration of all material data in a single database object prevents the problem of data redundancy). its subdivided into information grouped by user departments (functions) that manage the modules, so each one has a different VIEW of the material master record and is responsible for maintaining the data to support their function. The data maintained within a view may be valid for more that on Organizational level. For example the Views: Basic Data applicable to the entire company (Client): product description, material #, material group, unit of measure Purchasing data for orders -> relevant to the Plant Inventory Mgt data for posting goods movements and managing physical inventory Accounting data for material valuation upon goods movements or in invoice verification.-> is relevant to the Plant Materials Planning data for material requirements planning (MRP) and Execution (Work Scheduling) -> is relevant to the Plant

In the Views 1 to 4 we have the fundamental settings for Material Planning: MRP type: specifies how a material should be planned o MRP o Consumption based planning (strategy 40) o No planning Lot size (key): determines the lot size (quantity) of each of the procurement proposals. Procurement type: controls how a material is to be procured o In house production (internal) o External procurement o Internal and External In house production time: specifies how long procurement will last. Safety stock can be set Strategy group: control the behavior of planned independent requirements Availability check group: control of the Available to Promise (ATP) check. Production versions: defines the production procedure.

Material type: Raw materials Operating supplies Semi-finished products Finished products Its the most important value assigned to a material. Materials with similar basic attributes are grouped together by material type. This means you can manage your materials according to their business requirements. The material type attached to product identifies/determines/controls: Business process and functions allowed. Views (Screens) that appear in the Material Master record Department-specific data that can be maintained Material # assignment Procurement types that are allowed (in-house production or external procurement) GL- general ledger accounts that are updated BOM: The BOM contains the assemblies or components that are to be included in the production of a material. BOMs are used in: MRP, production, procurement, product costing. A BOM consist of a BOM header and the BOM items. The base quantity in the BOM header specifies to which amount of the finished product the item quantities refer. An item of a BOM can itself also contain a further BOM In this way, multilevel production is described using the single-level BOMs of the finished product and those of the assemblies and where required, using the BOMs of the assemblies of and so on. Does SAP directly support multi-level BOMs? No. These are represented through several single-level BOMs A BOM can contain documents or text items.
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BOM structure:

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Header: settings that apply for the whole BOM o Material o Plant o Usage: determines the business applications for which a BOM can be used o Status: controls whether the BOM is active for particular applications o Description o Validity o Lot size area o Base Quantity (q of finished product the item q refers) Items: components necessary for the production of the finished product. o Item category: specifies what kind of item you are dealing with. Influence the processing of the component Stock item: executed in the warehouse and used in production / must have a material master Non stock item: directly assigned to a manufacturing order (not via the warehouse) / dont need material master (and its number) Variable size item Documents item (design or diagram) Text item Class item Intra material o Descriptions o Quantity o Control data Multi level BOM structure is exploded automatically by MRP and Product Cost Planning. Routings: Routings contain the steps that are necessary for production, that is: Operations, Operation Sequences Usage Time elements (and base quantity: for ex. 10 min. per 1 pc.) relevant for scheduling operations. Work Centers which these operations are to be executed. Component allocations

Routing can be transferred to SAP APO (Advanced Planning and Optimization) in the form of production process models (PPMs) A routing can be defined using the routing group and the group counter. SEE MATERIAL PLANNING DIAGRAM

Manufacturing Execution
Production types supported by ERP Operations: Make to order prod: production with a Production Order Process Manufacturing: production with a Process Order Repetitive manufacturing: Period and Quantity-oriented production. Not order-related. Project oriented production: with production lots. Kanban: Replenishment-controlled using stock transfer, external procurement, in-house prod. Via self-controlled control cycle.

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oo Client | Company Code 1 Plant

Organizational Levels
Highest organizational element) (defined in the system by a 3 digit key oo Represents an independent accounting unit. Balance sheet and P/L statements, required by law are created at this level. | oo 1 Several plants can be affiliated with one company code, but a plant can only have one company code. | Are completely independent org. units with separate Inventory Mgt (=>can belong to <> plants, you can use the same storage location 1 number in more than one plant).

Storage Location

Master data for Manufacturing Execution Material BOM Work Center / Resource Task Lists (can be routings, rate routings, or master recipes. PRTs (productions Resources / tools

Material Master Data/record: Represents the central source for releasing material-specific data. Used by all Logistic modules. (The integration of all material data in a single database object prevents the problem of data redundancy). its subdivided into information grouped by user departments (functions) that manage the modules, so each one has a different VIEW of the material master record and is responsible for maintaining the data to support their function. The data maintained within a view may be valid for more that on Organizational level. For example the Views: BOM: Basic Data applicable to the entire company (Client): product description, material #, material group, unit of measure Purchasing data for orders -> relevant to the Plant Inventory Mgt data for posting goods movements and managing physical inventory Accounting data for material valuation upon goods movements or in invoice verification.-> is relevant to the Plant Materials Planning data for material requirements planning (MRP) and Execution (Work Scheduling) -> is relevant to the Plant

The BOM contains the assemblies or components that are to be included in the production of a material. BOMs are used in: MRP, production, procurement, product costing. A BOM consist of a BOM header and the BOM items. The base quantity in the BOM header specifies to which amount of the finished product the item quantities refer. An item of a BOM can itself also contain a further BOM In this way, multilevel production is described using the single-level BOMs of the finished product and those of the assemblies and where required, using the BOMs of the assemblies of and so on. Does SAP directly support multi-level BOMs? No. These are represented through several single-level BOMs A BOM can contain documents or text items.

BOM structure: Header: settings that apply for the whole BOM o Material o Plant o Usage: determines the business applications for which a BOM can be used o Status: controls whether the BOM is active for particular applications o Description o Validity o Lot size area o Base Quantity (q of finished product the item q refers) Items: components necessary for the production of the finished product. o Item category: specifies what kind of item you are dealing with. Influence the processing of the component Stock item: executed in the warehouse and used in production / must have a material master Non stock item: directly assigned to a manufacturing order (not via the warehouse) / dont need material master (and its number) Variable size item Documents item (design or diagram) Text item Class item Intra material o Descriptions o Quantity o Control data Multi level BOM structure is exploded automatically by MRP and Product Cost Planning. Work Center

An organizational unit that defines where and when an operation must be performed. The work center has an available capacity. Work centers can be: - Machines - People - Production lines Difference between cost center and work center Cost center is place where you incur your costs. Work center is a place where an operation is performed by a person/machine (group). Link between them: The activities performed at or by the work center are valuated using charge rates which are defined/determined by cost centers and activity types. The resource-related data is maintained on several screens views: Maintained on Plant level Name and description Person or group responsible for the maintenance of the master data of this resource Basic data Task list usage: specify the task list types (routing, master recipe, equipment task list, inspection plans) in which the resource can be used. Standard value key: are planned values for the execution of an operation. EX: setup time, machine time, personnel time. Standard values are used in costing, scheduling and capacity requirements planning in order to calculate costs, execution times and capacity requirements. For the operation to be executed at a resource. By entering default values you reduce the effort necessary in editing operations, since the values are stored centrally and you do not need to enter them in each operation. Default Control key: how an operation is to be processed in a task list. Examples of such keys and indictors are: Scheduling: If you set this indicator, the system carries out scheduling for an operation. Capacity planning: If you set this indicator, the system creates capacity requirement records for the operation. values Standard text key Wage data Is assigned to a resource to link the resource to cost accounting and can now carry out product and order costing. Cost center Activity types: define specific output for the resource. Formula key: to calculate costs, execution times and capacity requirements of phases carried out at a resource. available Calculate the execution of an operation during process order scheduling. Capacities Formula key: to calculate costs, execution times and capacity requirements of phases carried out at a resource. calculate the execution of an operation during process order scheduling Scheduling Formula key: to calculate costs, execution times and capacity requirements of phases carried out at a resource. People HR Positions assignment Qualifications Routings: Routings contain the list the sequence of steps for producing a material, that is: Operations, Operation Sequences Usage Time elements (and base quantity: for ex. 10 min. per 1 pc.) relevant for scheduling operations. Work Centers which these operations are to be executed. Component allocations Routing (and BOM) can be transferred to SAP APO (Advanced Planning and Optimization) in the form of production process models (PPMs) A routing can be defined using the routing group and the group counter. Routings and Work Centers: A work center is assigned to an operation. The standard value key in the work center specifies the time elements (standard values) that have to be taken into consideration during planning. EX: setup time, machine time, personnel time. Scheduling formulas stored in the work center define the duration from the allowed time elements in the routing.

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Routings and Bills of Material: Production is described via a routing and a BOM BOM components can be assigned to a certain operation Production resource tools (PRTs) can also be assigned in the routing. PRTs are operating facilities that are not location related, but that are necessary for production, such as a measuring instruments or a support.

Order Creation Options: Without BOM Routing With BOM Routing With Routing With Planned Order

Sales Order Management - SD


Kanban: Replenishment-controlled using stock transfer, external procurement, in-house prod. via self-controlled control cycle.

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oo

tion of | 1

combina

Organizational Levels Highest organizational element) (defined in the system by a 3 digit key Client Represents an independent accounting unit. Balance sheet and P/L statements, required by law are created at this level. Company Code oo oo It defines the distribution channel; a sales organization uses to sell products from a certain division. | Each SD document is assigned to exactly one sales area. We use it to select master data when processing sales orders. Also select $ + discounts | 1 Is the highest level organizational elements in SD (Logistics) . Sales 1 Organization Sales Org. 1- oo CC. You maintain own master data. In sales statistics, is the highest level. Is responsible for: Sales oo Distributing goods and services Area | Negotiating sales conditions
1

Distribution Channel
oo | 1

Plant

oo Division | oo

oo | 1

Storage Location Shipping point


Product liability and rights of recourse Is the way in which sales materials reach the customer. Represents your strategies to distribute goods and/or services to your customer (ex. Wholesale, retail, internet) (1 or + Dist. Ch.) Its used to: Define responsibilities Achieve flexible pricing Differentiate sales statistics Represents a product line to group materials and services (pumps, motors, services) (1 or + Div) The system uses the division to determine the sales areas a material or a service is assigned to. Plant 1- oo Company Code. Plant and storage location are organizational levels that can be used by all logistic areas: <> points of views: MM: The plant is location where the material is kept. Production: represents a manufacturing facility Sales and Distribution: represents the location from which goods and services are distributed and corresponds to a distribution center. The relevant stocks are kept here. The plant has a central function: You have to create at least one plant in order to be able to use the sales and distribution module oo A plant must be uniquely assigned to a company code The assignment between sales organizations and plants does not have to be unique The plant is essential for determining the shipping point. | Are completely independent Org. units with separate Inventory Mgt (can belong to <> plants, it means that you can use the same storage location number in more than one plant). Its the highest level org. unit of shipping. It can be a loading ramp, a mail depot, etc You assign a shipping point at plant level oo A shipping point is a physical place and should be near the delivering plant. Shipping Point oo- oo Plant

Master data for SD Customer Customer-material Info record Material Output (mail, EDI, fax) Condition (EX: automatic pricing / customer discount)

Customer master: The customer master groups data into categories: (views) General data: relevant for the SD and for Accounting. Valid for all org. units (Client level). Sales Area data: relevant for SD. Valid for the sales area (sales org.-dist. channel-division). Here we store the mandatory partner functions for the customer master during the sales order processing: o Sold-to-party: places the order o Shipto-party: receives goods or services o Bill-to-party: receives the invoice for goods or services o Payer: is responsible for paying the invoice Company Code data: is relevant for Accounting. Valid for all org. units (CC level).


Material master: views: Customer-material Info Record master: Basic data1: Sales org. data: Sales plant data: Purchasing:

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is relevant for the entire company (Client): product description, material #, material group, unit of measure is relevant for SD. It is valid for the respective Sales org. and the Dist. Ch. is relevant for SD. It is valid for the respective Delivery plant. is relevant for MM. It is valid for the Delivery plant.

You can use the customer- material information to record data for a combination of certain customers and materials when processing a document (order, delivery). It is not obligatory for Sales. The data that can be maintained are: Cross-reference from your customers material number to your material number and the customers material description. Specific shipping information for this customer and material (such as delivery tolerances, specifying if the customer accepts partial deliveries or the default delivering plant).

Definition of customer group: Customer Group identifies a particular group of customers for the purpose of pricing or generating statistics.

Output master: is information that is sent to the customer using various media (mail, EDI, FAX). In this master data you define: Output Types: (Quotation, Order confirmation, Invoice) Partner functions: (Sold-to-party, Shipto-party, Bill-to-party, Payer) Transmission medium: (Printer, Tlex, Fax, Mail, EDI) Time (at which output is sent): (Immediately when saving, Using standard program)

The definition can be found by placing the cursor on the field and choosing the F1 function key or pressing the Help icon; or the definition can be found in the glossary.

Condition master: Prices Surcharges & Discount Freight Taxes Order to cash business process SEE SALES ORDER MANAGEMENT DIAGRAM Reporting and analysis tools SIS - Sales Information System belongs to SD. With SIS, you can compress data from sales docs. to obtain information which will help you make strategic business decisions. SIS contains standard analyses as well as flexible analyses to help you evaluate statistical data. Lists and reports: 2 categories: Online list (provide data from documents / display documents / allow to review and change documents) Worklists (display work that needs to be processed / allow to organize tasks into efficient work unit) Information structures: (where data is stored) Characteristics Time unit Key figures Standard analyses: Helps create sophisticated presentations and analyses for the data. The analysis is based on the information structures. In the first step, you select the required data scope according to the characteristics and the period of the info structure. This data is displayed in an initial list. A variety of drill-down features are available in the lists. Each analysis can be saved. Tools to analyze data include: ABC analyses Correlation Classification Dual classification The analyses can be: Printed Download as a file to your local PC Downloaded into a spreadsheet program Sent to one or employees using the SAP workplace component

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Tasks in Financial Accounting:

ERP Financials Financials Accounting (FI)


The component Financial Accounting (FI) focuses on the General Ledger, the processing of receivables and Asset Accounting. Important tasks of Financial Accounting are the recording of monetary and value flows as well as the evaluation of the inventories. The General Ledger (GL) contains the recordings of all accounting-relevant business transactions on to G/L accounts from a business point of view. Every general ledger is structured according to a chart of accounts. The Chart of accounts contains the definitions of all G/L accounts of the general Ledger. These definitions basically include the account number, the G/L account designation and the categorization of the G/L account as an income statement or Balance sheet account. Reconciliation accounts connect the subledgers to the General Ledger in real time. (transactions cannot be posted to reconciliation accounts). The Accounts Payable Accounting (AP) records all business transactions that have to do with the relationships to suppliers. It takes much of its data from Puchasing (MM Materials Management) The Accounts Receivable Accounting (AR) records all business transactions that have to do with the relationships to customers. It takes much of its data from Sales & Distribution (SD). The Asset Accounting (AA) records all business transactions that have to do with the management of assets. The Bank Ledger (BL) supports the booking of cash flows. GR/IR account: its a clearing account used to ensure that goods are received for each invoice and vice-versa. Integration of the G/L accounts in FI:

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The General Ledger is managed at company code level and from this the Balance sheets required by the legislator as well as the P/L statement are compiled. The assets of a company are listed in the Balance sheet, divided into: Assets - (application of funds) Liabilities - (source of funds) The business transactions that are entered in MM (material stock) or in Treasury, flows into Balance sheet in real time. The component Treasury (TR) focuses on functions such as payment means, Treasury Management, loans and Market Risk Management. The aim of recording business transactions is to create a Balance sheet and P/L Statement in the sense of a report. Financial Accounting VS Management Accounting:

Goal

Financial accounting (FI)

Management accounting (CO)

External reporting purposes - legal reporting. Balance sheet and P/L accounts are Internal management information regarding cost and revenues. created in FI with general accounting standard (US-GAAP or IAS) Defined by law for compliance. Legal reporting will be different for each country. Cost and Revenues at a higher level (across countries) Level Additional account assignment with specification of the assignment object Integration Direct Relation. Invoice verification accounts payable and purchasing // GI to prod. Order-GL accounts

Organizational Levels Company Code


Its an independent accounting entity. Does not usually extend across national boundaries. Its an independent accounting entity. You should create a Company Code according to tax law, commercial law, and other financial accounting criteria. Company Code is usually created based on geographic considerations. The Company Code is the smallest SAP entity that supports a full legal set of books. 1 There must be at least one company Code in the production environment for a business to be live. Is assigned to ONE controlling area. Internal purposes to create Balance sheet and Profit/Lost statements Facilitate external segment reporting across CC, covering the companys main areas of operation. | Can run across many CC. You can make postings to business area from several company codes because they are generally CC independent. Identifies a self-contained org. structure for which Costs and Revenues can be managed and allocated. It represents a separate unit of cost accounting. One or more company codes can be assigned to a controlling area, which enables cross company cost accounting between the assigned company 00 codes. This is only possible if company codes and controlling area use the same operating chart of account and fiscal calendar year. GL- General Ledger Accounting

Business Areas Controlling Area


Charts of Accounts (COA):


Contains the definitions (Account #, A. name, Type of G/L account > 1) Profit and Lost or 2) Balance sheet) of all GL accounts. You can define an unlimited number of charts of accounts in the system. Each GL is set up according to a chart of accounts. Each CC is associated with 1 chart of accounts. Chart of Accounts oo 1 CC. If Cross Company Code controlling required, the Chart of Accounts can be assigned to multiple company codes. This means that the GL of these company codes have identical structure. A CC can also have a country specific chart of accounts. G/L Account Master Record: 2 segments. COA-Chart of accounts: high level: Account description. A. type (balance sheet or P/L) A. group, A. consolidation number. Company Code: details how the CC manages every account: account ctrl., mgt, bank details, interest calculation, doc. ctrl, field status Account Groups for G/L Accounts: Acc. groups classify GL acc. into user-defined segments. (cash, asset, material, P/L, etc). The Field Status: SUPRESS, REQUIRED, DISPLAY, OPTIONAL, is specified in the CC seg.
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Reconciliation Accounts and Sub-Ledgers: The Reconciliation account can post only through a subledger account (not directly). This ensures real-time integration of a subledger account with the general ledger. Benefits of the New General Ledger: - Extended data structure: allows additional fields. - Real time Document split (online split) (a single invoice can be posted to multiple segments). - Real time Integration (Reconciliation) between CO and FI. - Parallel accounting. Multiple books can be maintained. - Contains functions that unify the conventional general ledger with the special ledgers components. Posting Key (PK): has a controlling function for the documents item. Each document line item contains one posting key. It specifies the following: Account Type : (Balance sheet or P/L) Debit or Credit posting Field Status: SUPRESS, REQUIRED, DISPLAY, OPTIONAL .Which fields of the line item may have or require an entry In the new ENJOY transaction (FB50); you no longer need to enter the posting key.

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Account Information: The balance display and line item display are provides to display the account data. The balance display is an overview of the saved transaction figures of an account. From the line item list, you can drill down to the document overview.


Accounts Payable (Cuentas por pagar)
(Integration of procurement cycle (Procure-to-Pay Process) with account payable)

Vendor Master Record: contain all data about a vendor, this controls how transaction data is posted and processed.


Vendor

Level stored

Level stored

Level stored

Client
Specific information, such as name, address

CC
how particular CC will process transactions

Purch. Org.
Specific data to purchasing

Procurement process from the accounting view - Integration with Materials Management

MM Doc

FI Doc

FI Doc

Purchase order

Goods Receipt GR

Invoice IR 2

Pay 3

Storage location
105

103

101

MM Doc

Goods receipt area

F Q X

Documents generated

MM Doc

FI Doc 1

CO Doc

Balance sheet
Consumption Raw Stock Raw Bank-Cash GR / IR

Vendor Reconciliation

Vendor Subledger

Libro mayor auxiliar de proveedores

300
1

3000
1

3300
3

3300
2

3300
1

3300
3

3300
2

3300
3

3300
2

A Financial document is created when goods are received and when the invoice is received, but not when the purchase order is created.

Effects of Goods Receipt Material document is created (quantity) Accounting document is created (value) Purchasing (Purchase Order History is updated) Quality Management (Inspection lot is created) Warehouse Mgt (Transfer Req. is created) Output may be generated (GR slip

Effects of Invoice Verification Accounting document is created The provision in the GR/IR clearing account are reversed PO history is updated Open Item is created in the vendors account

Account Posting 1. Good Receipt : Debit Stock, Credit GR/IR 2. Invoice Receipt: Debit GR/IR, Credit Vendor 3. Pay Vendor: Debit Vendor, Credit Bank/Cash

If the invoice $ differs from the PO $, the stock value and the current mov. price is recalcul. and updated in the material master, for a material valuated with moving aver. $

AP Invoice / Credit Memo Entry: You create and post a vendor invoice or credit memo using a one screen transaction. This type of invoice entered directly in A/P is a miscellaneous invoice, without reference to a purchase order. The A/P entry screen is divided into 4 areas: Work templates Header and vendor data Line item information Information area Elements of the Payment process: The standard system contains common payment methods and corresponding forms that have been defined separately for each country. During the payment run, the system does the following: Posts payment documents Clears open items Prepares data for the printing of payment media

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Accounts Receivable (Integration between order to cash cycle and accounts receivable)
Level stored

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Customer master record: contain data that controls how transaction data is posted and processed.

Customer
us

Level stored

Level stored

Client
specific information, such as name address

CC
how particular CC will process transactions

Sales area
(Sales org-Dist.Ch.-Div)

Specific data: conditions and terms of payments

Credit control area:

The organizational unit for credit control is the credit control area. Can be assigned to individual company codes (decentralized organization) or to a group of company codes (centralized organization). A credit control area is generally managed by a separate credit department, which is divided into a number of credit representative groups, with each group consisting of several credit representatives.

Credit Control Area Credit Department Company Company Company

Credit Represent. groups

Credit Represent. groups


Credit Management master record: The credit dept. sets up a separate credit mgt master record, which is an extension of the customer master record, so that data relevant to credit management can be maintained and monitored. The credit management master record consists of the following sections: General data (customers address, communication data) Credit Credit control area data (credit limit, customers risk category) Customer Overview (which contain the most important data from all sections) Mgt us Credit Control Process: us When the order is placed, a check is run (credit control) to see whether the customers credit limit would be exceeded if the order were to be accepted. If this is not the case, the sales process can be carried out the usual way. If the credit limit is exceeded, the order is blocked, and the credit department has to act. The responsible credit representative can either be notified automatically via mail. Or can use a report to check list of all blocked orders. The credit representative then clarifies the situation, either by using credit information system, or by calling the customer. Once clarification has been made, the credit representative releases the order, and the transaction can be processed in SD. If the credit representative decides not to release the order, the order is rejected.

Sales Process & integration:


Inquiry Quote Sales Order
Confirm Pick Quantity

Warehouse
Transfer Order Pick Quantity TO Transfer Request

Delivery/ Shipping
10

Goods Issue

Invoice/ Billing

Receive Payment


Inventory Change 4000 1 Inventory 4000 1 Cash/Bank 10000 3

Documents generated

MM FI CO Doc Doc Doc

MM FI CO-PA Doc Doc Doc

FI Doc

1 Revenue 10000 2

2 Customer Reconciliation 10000 2 10000 3 Auto

3 Customer Sub-Ledger 10000 10000 2 3

Sales Sales order (SD) No document (FI)

Shipping Outbound delivery (SD) Transfer order (picking) Goods issue (MM) (FI)

Billing Billing document (SD) Invoice (FI)

Account Posting

1. Goods Issue : Credit Inventory, Debit Cost of goods sold (Inv. Change) 2. Billing a customer : Credit Revenue, Debit customer (Reconc+Subdledger) 3. incoming Payment: Credit Customer(Reconc+Subdledger), Debit Bank account

On the day of shipping, an outbound delivery documents is created. At this stage the effects in accounting start to appear. The goods to be delivered are posted as a goods issue. A GI doc is created in MM, When the billing document is created in SD, an FI-accounting document that debits the customer and credits revenue is automatically created so that the goods issue is posted to the correct G/L accounts. The accounting documents debits cost of goods sold and credit inventory.
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The last stage in the sales process is billing. A billing document is created in SD, and a printed invoice is sent to the customer. At the same time, a document is created in FI so that the receivable and revenue can be posted to the correct accounts. The accounting document debits the customer and credits revenue.

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Incoming payments in Accounts Receivable:


The items are cleared if the customer pays his open items to the full amount or with an authorized deduction of cash discount. If a minor payment difference exists, this can be charged off automatically. The maximum amount that constitutes a minor payment difference is defined in tolerance group settings. Any greater difference (outside of tolerance) must be dealt with manually. Partial payment: the item being short-paid does not clear. Residual item: the open invoice is cleared and a new open item (residual item) in the amount of the payment difference is created.


Fixed Asset Accounting

Assets in FI Organizational levels:


Each asset belongs to a company code and a business area. All postings made for the asset (acquisitions, retirements, depreciation, etc.) are applied in the assigned company code and business area. Additionally, you can assign the asset to various CO objects (cost center, internal order, and activity type) and logistic organizational units (for selection purposes only).

Asset class: The asset class is the main criteria for defining the asset.

Each asset has to be assigned to an asset class. Ex. Building: Accounts for building. Machinery: account for machinery. In the asset class, you can define certain control parameters and default values for depreciation and other master data. You can create asset classes for intangible assets and leased assets. The application component PM (Plant Maintenance) is used for the technical management of assets. The application component TR (treasury) is used for managing financial assets.


Asset Transactions: can be posted in various ways. In FI-AA you can post the following ways:
Without a vendor or a purchase order To a vendor, but without reference to a purchase order Via materials management using the MM functions (purchase order, goods receipt and invoice receipt) Transaction type: is necessary to enable the asset to be correctly listed in the asset history sheet. Asset explorer: gives a clear overview of the activity for an asset per depreciation area and fiscal year for planned value, posted transactions, posted amounts, posted and planned depreciation, and depreciation parameters.


Depreciation Areas: Often asset balances and transactions need to be valuated differently for various purposes. To keep more than one valuation basis, depreciation areas are kept in the system. Depreciation Run: Only after the depreciation posting run has been completed is the depreciation actually posted in asset accounting and in the GL. The depreciation is posted to the corresponding depreciation accounts in the general ledger and to the assigned CO cost object assigned to the asset master record. The run can be in direct or batch mode.


Prepare Financial Statements To support legal reporting requirements, currently several reports meet country-specific requirements. Company code financial statements Business area financial statements Operating chart of accounts Country specific chart of accounts The Financial statement version determines the structure of a Balance sheet and income statements as far as which accounts map to which line items on the report. When a transaction is posted in FI, it automatically appears on the Balance sheet. (The account must be assigned to an appropriate line item in the financial statement version used when running the Balance sheet. Otherwise, the posting will appear at the end of the financial statement in a category called accounts not assigned).
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Comparison of Financial and management Accounting:

Management Accounting - Controlling - CO


Management accounting contains all the functions necessary for effective cost and revenue controlling. It covers all aspects of management controlling and includes many tools for compiling information for company management. Financial reports used for external reporting purposes, such as Balance sheets and P/L statements, are created in Financial Accounting according to accounting standards (GAAP/IAS). Typical Tasks in Management Accounting: The main components of CO-Management Accounting: are used for different tasks and types of analysis. Classify cost and reconcile data Cost Element Accounting: Classifies the costs and revenues posted to CO. It also enables you to reconcile costs between Mgt. Accounting and Financial Accounting (CO-FI). Control overhead costs and allocates costs Overhead Cost Controlling: examines the origin of costs in the functional areas of an enterprise. Overhead costs include costs that cannot be directly assigned to a product or service. It is often difficult to determine what caused overhead costs. Activity-Based Costing (ABC) provides you with more ways of allocating costs. Evaluate the cost of goods or services Product Cost Accounting is used for costing and evaluating the cost of goods manufactured for a product and the costs associated with providing a service or when carrying out a project. Analyze Profit Profitability Analysis: external focus. Looks at how profitable various market segments are (product divisions for ex.) and how profitability has evolved over a period of time. Analyze success of individual profit centers Profit Center Accounting: internal focus. Looks at how individual profit centers are performing in the enterprise. It can be used to represent the internal market in the enterprise, particularly if multiple valuation approaches and transfer prices are used. Flow of values within Management Accounting: Costs incurred in one part of the enterprise are often passed on to a different part. For example, you can allocate overhead costs from administrative cost center to production cost centers. These costs are then allocated to production processes. Integration with other SAP ERP Applications: Financial Accounting (FI) is a primary source of data for Management Accounting. Most expense in the general ledger result in a cost posting in Management Accounting. These expense postings to the General ledger can be journal postings, vendor invoices, or depreciation postings from Asset Management. Sales Order Management (SD) is a primary source for revenue postings from billing documents to revenue postings in Profitability Analyses (CO-PA), and Profit Center Accounting (PCA). Human Capital Management (HCM) can generate cost postings in Management Accounting. HCM offers you the opportunity to allocate labor costs to various controlling objects. In addition, planned personnel costs can be transferred and used for Management Accounting planning. In Materials Management (MM), a goods issue transaction can create a cost posting in Management Accounting to whichever cost object is specified. Product cost estimates created in Management Accounting can update price fields in material master records. Finally, the creation of purchase orders in Materials Management can generate commitment postings within Management Accounting. The Manufacturing area of Logistics also works closely with Management Accounting. BOM and routings, created in Manufacturing, can be used in Product Cost Accounting.

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Organizational Levels
Is the basic organizational unit in CO-Management Accounting. Is a closed entity used for cost accounting. You can allocate costs only within a controlling area. These allocations cannot affect (CO-OM/CO-PC/EC-PCA) objects in other controlling areas. oo Multiple Assignments: You can assign more than one CC to a controlling area. This enables controlling across company codes. The controlling area and its company code must use the same operating chart of accounts and the same fiscal year. | Represents the structure of external segments for the enterprise. You can assign several controlling areas to each operating concern Operating Concern (CO-PA) so you can analyze them together. Profitability analysis (CO-PA) is used with Operating Concern. Company Code oo 1 Is an independent accounting unit. Financial and P/L statements are prepared at company code level to meet legal reporting requirements. Can be used to group strategic business units for reporting P/L and financial statements (not suitable for auditing, suitable for Business Areas | reporting purposes only). Business areas can also be cross-company code. Represents a production unit and is the central organizational unit in Materials Management and Production Planning. Plant (MM/PP) 1 A Plant is assigned to a company code. Is an organizational unit used Materials Management Purchasing. Purchasing Organ. (MM-PP) Is an organizational unit used in Sales Order Management. Sales Organ. (SD)

Controlling Area

In cross-company code cost accounting, the controlling area and the company code can have different currencies. You can use 3 currencies in CO: Controlling area currency Company Code currency or object currency (by default) Transaction currency (used for posting a document to Management Accounting)

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Cost Center Accounting G/L Accounts and Costs Elements: As we know the chart of accounts is created in FI. CO FI All expense accounts are groups in one class (class 4) and all revenue accounts in another (class 8) Expense accounts - class 4 Primary cost element Expense accounts to which costs are posted for cost accounting purposes must also be created as cost Revenu accounts - class 8 Revenu element elements in CO-Management Accounting. This ensures that all postings to this type of expense account always arrive in CO at the same time. Primary cost elements: (material cost, personnel cost, energy cost) give a direct, one to one, correspondence with GL account in FIto allow costs to flow. Secondary cost elements: (production costs, material overheads, production overheads) are created only in CO and are used for internal cost allocations, overhead calculation, settlement transaction and do not have any corresponding GL account in FI.it does not flow to FI

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Standard hierarchy represents all Cost Centers per Controlling Area: Only 1 standard hierarchy. The cost center is an organizational unit in a Controlling area representing a clearly delimited location where costs occur. Cost Center Accounting answers the question of where costs occur. ABC -Activity-based Costing answers the question of why (for what purpose) costs occur. Cost centers can be defined according to several different design approaches (Ex: low level unit that has responsibility for managing costs / geographic location / activities or services provided), but whichever approach is selected, it should be consistent throughout the enterprise. Activity Types: Classifies the activities performed or produced by a cost center (ex. Machine Hour Rate). The costs of these resources need to be allocated to the receivers of the activity. Activity types serve as tracing factors for this cost allocation. Activity Document: Activity type, Q. (ex. Consulting, 10 hs) Relationship between Cost Center/Activity Type: In an internal direct activity allocation, you need to enter Activity type Cost center Quantity Unit $ (is calculated based on the $ of the activity + Q) and generates a debit to the receiver and a credit to the sender for both the quantity and costs. Internal activity is allocated using secondary cost elements, which are store in the master data types as default values. You can restrict the use of the activity type to certain types of cost centers by entering the allowed cost center categories in the activity type master record. You can enter up to eight allowed cost center categories in the activity type master record, or leave the assignments unrestricted by entering an asterisk (*). Statistical Key Figures: Are a measurable quantity that can be assigned to Cost Centers, Activity types, Overhead Orders, Business Processes, and Profit Centers. (EX: total number of employees in a cost center, minutes of long distance calls) You can use statistical key figures for cost allocation as a Tracing Factor in overhead cost allocations. Types: Fixed value is useful for statistical key figures that tend to remain constant over time (EX: number of employee) Totals value must be entered for each individual period and is useful for values that tend to change each period (EX: Kilowatt hour of electricity consumption). You can also transfer statistical key figures values from the Logistics Information System (LIS) by linking key figures from LIS with SKFs in CO. Master Data Groups:
When you use master data groups in reporting, each hierarchical level can produce automatic totals of the levels beneath it. The value (cost center, cost element, activity type, etc.) is represented only once in the group. Each value can be used in more than one group. Each controlling area must have a unique standard hierarchy. The name of a master data group has to be unique for a client-CC, even if there are to CC for a Client (=>2 names)

Cost Center Planning Process: Imputs: Manual entries, formulas, HCM-Assests ? Steps: SOP, Production planning, Cost center planning, Product cost plann.
Planned values (such as planned personnel costs and planned depreciation) can also be transferred automatically to the Cost Centers from HR and Assets Accounting (FI-AA). Both fixed and variable costs can be planned for each area of responsibility (Cost Center). It is the aim of Cost Center Planning to calculate planning costs to define deviations later and to prepare the allocation to cost bearers. The activity type planning is an important step in Cost Center Planning, as the planned activity amounts can influence planned costs.

Prod / Product Group

COST CENTER PLANNING PROCESS

Sales Info Syst Sales Plan vs

CO-PA
Sales Plan

Forecast Plan Quant


SOP

Additional Resources Obtained or Sales Plan changed Non

HR

Assets Accounting

values Activity Scheduled Cost Center Plan can In the Sales Information System (SIS), the company can plan sales quantities for depreciation Sales & Operation Yes Requirements be met? Activities Planning vs (created in SOP) Planning a product or product group level for the following year. Similarly, sales quantity planning can be accomplished in Profitability Analysis. The sales plans can be Production Product Plan Activity Plan Activity Cost Cost Resources compared with one another so that a single forecast can be transferred to SOP. Cost prices Quantities Planning Center Planning A capacity-based comparison of plan quantities with production resources then Additional takes place in SOP. If the plan cannot be met, additional resources must be Internal activity Orders planning obtained or the sales plan must be changed. Routing BOM The activity requirements can then be created in SOP or Long Term Overhead Cost Requirements (LTP) and transferred as scheduled activities to cost center Controlling planning. In cost center planning, the plan activity quantities are created on the basis of scheduled quantities from SOP. Cost planning is performed for cost centers and internal orders, as well as additional activity planning for Overhead Cost Controlling. Planned costs from HR and Assets can be transferred to cost center planning. Plan activity prices are then calculated. The calculated plan activity prices go to Product Cost Planning, which estimates the production costs of the planned products by using BOM and Routings. The costs of goods manufactured that were calculated on the basis of the sales plan are then transferred to CO-PA. These costs are used, alongside the forecasted revenues, to create a profit plan. You can use the results of this plan to make adjustments to the original sales plan, which then initiate the complete integrated planning process again.

Planned

Planned personnel costs,

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Activity allocation

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Posting from FI to a Cost Center: Activity allocation When a journal entry is created in FI that includes an expense line item, that expense can be posted to CO as a cost if: A primary cost element has been created in CO that corresponds to the expense account used in the FI journal entry. A valid controlling object (such as cost center) is referenced in the FI line item. As a result is created (each document has a unique document number): 1 FI document 1 CO document. When an FI documents is created that posts to an expense or revenue account Having a corresponding cost element, A valid controlling object (such as cost center) is referenced for the expense line item, As a result is created: 1 CO document. This CO document has its own unique number and contains the following details: Controlling object posted to Cost element used Amount When a primary cost is initially posted to in CO, it is treated as a one-sided journal entry, unlike a conventional, balanced financial accounting journal entry. Any transactions that create cost movements within Management Accounting are balanced entries. When a cost is moved from one controlling object to another, such as from one cost center to another, the sending object is credited and the receiving object is debited for the same amount. Posting from MM to a Cost Center: Goods issue for material consumption transactions posted in the MM can be assigned to a cost center. Also, you must enter a movement type to differentiate between the various categories of goods movements. As a result is created: 1 FI document that debits material consumption account and credits material stock (inventory) account. The cost center is debited with the value of the goods issued using a primary cost element. Direct activity Allocation: Deals with the measurement, posting, and allocation of an organizational activity. You need to create the corresponding (measurable) tracing factors, known as activity types in Cost Center Accounting. For a direct activity allocation, the following info is needed: Sender cost center credited (Cost center that provides the activity (using secondary cost element) Receiver debited (Object that receives the activity (using secondary cost element) Activity type Quantity of the activity provided. Periodic Allocations with sender/receiver relationships techniques (examples): Periodic Reposting (use original cost element) Distribution (use original cost element) Assessment (use secondary cost element) Indirect Activity Allocation Template Allocation Internal Order Is a cost collector that allows a better view of costs that could not be itemized in detail in a cost center. Useful for planning, monitoring, alloc. of costs and reporting. 4 types/categories: Overhead orders: used to monitor overhead costs incurred for a particular purpose, such as conducting a trade fair, or tracking costs for mainten. and repair work. Investment orders: used to monitor costs incurred in the production of a fixed asset, such as building a storage facility. Accrual orders: used to offset postings of accrued costs (costs calculated in CO) to cost centers. Orders with revenue: used to replace the cost accounting parts of SD customer orders if SD is not being used, so that both costs and revenues can be tracked; or to monitor revenues not affecting the organizations core business (miscellaneous revenue). Internal Orders - Cost Planning: Costs are normally planned for orders that have a long life cycle. Orders with a short life cycle, such as for unexpected small repairs, are normally not planned. 3 options/ways for planning cost on internal orders: Overall Planning: is the simplest level for planning order costs. You can plan overall values and annual values irrespective of the cost elements. Primary/secondary cost and revenue planning: can be used if you have detailed information about an internal order. For manual planning purposes, primary/secondary cost and revenue planning comprises the planning of primary costs, activity inputs, and revenues. Unit costing: can be used to carry out more detailed planning than is possible on costs elements. Posting to an Internal Order: can be real or statistical (information postings only). Commitments (future costs): Identifies costs which be incurred in the future for materials and services requested or ordered. By recording commitments, as well as actual costs, you can compare the funds you have allocated to your planned or budgeted costs to determine funds availability. Are created in the Purchasing function of Materials Management. Is recorded automatically when you assign an overhead order to a purchase order.
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You reduce the commitment by posting a goods receipt against a purchase order. Actual costs are posted to the internal order. This process continues until the purchase order is closed and the commitment is reduced to zero. You must have activated commitment management in Management Accounting for each controlling area. Order Settlement: Internal orders are usually used as an interim collector of costs and an aid to the planning, monitoring, and reporting processes. When the task is complete, the costs have to be passed on to their final destination (cost center, fixed asset, profitability segment, etc.). This is called settlement. It is another form of periodic cost allocation. Settlement can occur periodically, or at the end of the orders life, depending on the type of order and its business purpose. A settlement rule must be defined for each order. This rule is defined in the order master record. Profit Center Accounting internal focus (EC-PCA) Profit Center Accounting Measure profitability of areas of responsibility within the organization. reflects the success of a given profit center at meeting the profitability goal for which it was given responsibility. Internal controlling purposes. Comparison: If you divide your enterprise into profit centers, you can analyze the areas of responsibility and delegate responsibility to distributed units, which then become companies within the company. Typical questions in Profit Center Accounting: What is the operating profit of a profit center? Which fixed asset value is assigned to a profit center?

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Profit centers set up according to: Products (product lines, division) Geographical factors (regions, offices, or production sites) Functions (production, sales) Profit Centers are not real account assignment objects CO linked to Profit Centers: Controlling objects master data contain a profit center field. This is the link to debits and credits posted to those controlling objects Profit Centers Planning Is an integral part of overall business planning. 2 steps: 1. Transfer of planning data from cost centers, internal orders, CO-PA, product cost planning. 2. Modification of these planning data directly in the profit centers. Profitability Analysis (CO-PA) external focus You can use Profitability Analysis (CO-PA) to analyze the profitability of segments in your external market. These segments can be defined by product, customer, geographical area, or other characteristics, and by your internal organizational units, for example: Company Code, Business Area. The aim of Profitability Analysis is to provide the board of directors, SD, marketing, planning, and other groups in your organization with market-oriented decision support. Typical questions in CO-PA: How successful was the last marketing campaign for a certain product line? Who are the largest customers and who has the strongest growth? What effect does a price determination strategy have on a customer group? Profitability Segment (the affected market segment): Is the combination of: Characteristics: answer the question: about what aspect do I want to report? EX: divisions, regions, products, customers. Characteristics values: are the key figures, answer the question: what values can I have for the characteristics? EX: Region south, Region north. Value field: provide a view of a segment of the business. Answer the question: which key figures do I want to track and analyze? EX: gross sales, discounts, cost of sales. Product Cost Accounting/controlling (CO-PC) Its concerned with all aspects of planning the cost of producing products or services, as well as tracking and analyzing the actual costs. 3 step process:

1. Product Cost Planning: used to estimate the costs to produce goods or services. -If a quantity structure (BOM and Routing) is available in Manufacturing Planning, then the system can automatically create a cost estimate based on this data. -If no quantity structure is available, then you can either enter the costing items manually with the unit costing tool or transfer them automatically from a non-SAP system using batch input. 2. Costs Object Controlling: collects costs incurred during production of a product or service using cost objects (such as production orders, sales orders, process orders, production cost collectors). It focuses on simultaneous costing and the period-end closing, in order to compare planned and actual costs.

3. Actual Costing and Material Ledger: provides actual costs for each material at the end of the period.

When you create a cost estimate with a quantity structure, you must enter costing variant material plant lot size
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The dates proposed from the costing variant specify the following: The period of validity of the cost estimate (costing date from/to) The selection date for the BOM and routing (quantity structure dates) The pricing data for the material components and activities (valuation date)

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The costing results can be saved and displayed as Itemizations: (shows detail detailed information about the origin of the costs, such as quantities and prices of the materials and internal activities used). Cost element itemizations: (groups the individual costing items into cost elements) Cost component split: (groups the cost elements into cost components Cost Rollup in Product cost Planning: Its used to ensure that the costs of goods manufactured, material and production costs, of all materials in a multilevel BOM are included in the cost estimate of the higher-level material. This is achieved by assigning the costs in a cost estimate to cost component. Standard Price Update: 3 steps 1. Analyze the costs 2. Marking 3. Releasing Effects of Marking and releasing a standard cost estimate Standard prices in material master is updated. Inventory is revaluated. The following prerequisites must be met before a standard cost estimate can be marked or released: Standard cost estimate must be free of errors (status KA, costed without errors) The marking and release must be allowed When you release the standard cost estimate, these future prices are updated as the current standard price. You can release a standard cost estimate only once per period, unless you delete the previously released standard cost estimate from the database. The standard or moving average prices used to valuate inventory is determinate in the Price control setting in material master. Material Master: prices: Planned Prices 1, 2, 3: can be used for raw materials and purchased parts, and to valuate the materials in the cost estimate. Tax based and commercial prices: are entered for purchased parts in inventory costing for values such as the determination of lowest value. An inventory cost estimate can use these prices for valuation, and then update the costing results for finished and semi finished products in these fields. Price control: indicator that controls which price is used to valuate the inventory of a material. The following option are available: o Standard price o Moving average price These prices are used to valuate goods movements within SAP ERP and to valuate inventories. A standard cost estimate can be used to update the standard price. You can branch from the accounting and costing views to the results of standard cost estimates these results update the standard price.

Integration: Standard Price and Standard Cost Estimate:

Price control plays a crucial role in material valuation. When the price control indicator is set to S, the inventory is valuated at standard price. In addition, goods movements are valuated directly in the System using a price selected in accordance with the price control indicator. If the standard price was updated by a standard cost estimate, it can be used in Cost Object Controlling. The system can use the itemization of standard cost estimates to determine the target costs for manufacturing orders. The difference between target cost and actual cost can be analyzed at the level of variance categories, such as quantity or price variances. The saved itemization provides the basis for the variance calculation. In Profitability Analysis, you can use standard cost estimates (or other material cost estimates) to compare the revenues of the billed quantity with the cost component split of the product. A standard price is also required in the Material Ledger to determine the actual price.

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Inventory and Warehouse Management / Stock Transfer and Transfer Posting


Goods Receipt: is a goods movement in which the receipt of goods from both an external vendor and from production is posted. A GR leads to an increase of warehouse stock.

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Good issue: is a goods movement in which a material withdrawal, goods issue, material consumption, or goods shipment is posted to a customer. A goods issue leads to a decrease of warehouse stock.

A stock transfer/transfer posting consists of goods issue from the issuing point and a goods receipt at the receiving point. Stock transfer: is a removal of materials from a particular storage location into another storage location, within the same plant and between two plants. With stock transfer there is always a physical movement of goods. (1 and 2 step procedures possible). Example: Stor. Loc to stor. Loc, Plant to Plant, Company Code to Company Code

Transfer posting: results in a change in the stock ID number or the stock category of a material. Transfer postings need not involve an actual physical goods movement. (Additional material movement is possible). Example: Stock to stock (quality inspection to unrestricted use), Material to material, Consignment to warehouse

1 and 2 steps Stock Transfer Procedures


Same Plant stock transfer Storage Loc. Its carried out within the same plant. to Advantage : you enter a single transaction in the system. Storage Loc Docs generated: stock transfer 1 MM material doc, containing 2 items for each item entered. 1 item for the removal (goods issue); 1 item for the placement (goods receipt). 1 step No FI accounting document because the transferred material is managed in the same plant, and therefore has the same posting data. There is an accounting procedure document if the material is split-valuated and the valuation type changes in the course of the transfer. Advantage: enables to monitor stocks that are in the process of transferring from one place to another. Storage Loc. Once the goods issue is posted from the issuing point, the quantity is booked out. The stock is regarded as in transfer at the receiving point to In the case of stock transfer between two plants, the two step procedure is necessary if users have authorizations only for their own plant in each case. Storage Loc At the time of physical inventory, you should not have any stocks in transfer because you cannot inventory such stocks. stock transfer Restriction: only transfer material from (F) unrestricted use stock at the issuing location to (F) unrestricted use stock at the receiving storage location. 2 steps Docs generated: procedure 2 MM material docs: 1 at the time of goods issue (removal from storage), and the 2 at the time of goods receipt (placement in storage). No FI accounting document. There is not valuation. Cross-plant stock transfer (plant to plant in the same CC or diff CC) The plants between which material is transferred can belong either to the same CC or to diff. ones. 1 step procedure 2 steps procedure Can only be booked out of (F) unrestricted use stock . 1 MM material doc, 2 MM material Docs generated (also affects MRP) containing 2 items When removing the material from MM --> (GR-GI) storage, you must specify: Plant to Plant 1 FI (if the 2 plants are assigned to a diff. valuation areas). - the material - Update in the stock accounts. - the receiving plant, - The stock transfer is valuated at the valuation price of the material in the issuing plant - the issuing organiz. level (no valuation if the 2 plants are assigned to the same valuation area) Valuation takes place at the time of the Docs generated: first step. CC to CC 2 MM 2 FI: one for each CC.

Stock Transport Order: A stock transfer using a stock transport order has the following advantages compared with a stock transfer without a stock transport order: Integration with MRP Can plan GR for shipping and receiving Can manage transportation and freight (delivery cost/carrier) Can post (GR) to Consumption Can receive goods into all stock types (F,Q ,X) Can monitor transport with PO history

The following statements are correct: A stock transfer between storage locations is not relevant to accounting You can enter stock transfers using the transaction MIGO

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Logistic Execution (LE) the link between procurement and distribution

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Transfer order: is the document with which all material movements in the warehouse are executed. In Logistics Execution, there are 2 ways of modeling GR and GI: you can create either a delivery or an inventory management posting (generally with reference to a preceding document) at the beginning of the process. The following overview shows the document flow and the posting process for each of these methods: If deliveries are used, the warehouse management activities (creating and confirming a transfer order) are completed before the inventory management posting. This posting always refers to the delivery.
The terms shipping or shipping process are often used in conjunction with deliveries. These actually only describe outbound goods movements, the original delivery process that relates to an order. Shipping is also the name given to the department responsible for the logistical process of delivery handling (picking, packing, loading). Since the delivery document can also be used in other areas, we refer to deliveries related to sales documents as outbound deliveries.

Organizational Levels in LE
| Transportation | 1 Planning Point oo 1 1 Plant oo | Shipping Point oo | | oo Storage Location Warehouse Number oo

Client oo Company Code oo

Highest organizational element) (defined in the system by a 3 digit key Is an independent accounting unit. Financial and profit loss (P&L) statements are prepared at company code level to meet legal reporting requirements. Can be linked with only one company code (necessary because of the shipment cost calculation and settlement). Represents a production unit and is the central organizational unit in Materials Management and Production Planning. A Plant is assigned to a company code. Highest level org. unit of shipping . Its a physical place and should be near the delivering plant, It can be a loading ramp, a mail depot, You assign a shipping point at plant level Are completely independent Org. units with separate Inventory Mgt . Storage Loc. enables Inventory mgt. Linking it to a warehouse allows warehouse mgt. Is always linked with at least one combination of plant and storage location. Several plant-storage locations combinations can be lined with one warehouse number. It is not possible to assign a plant-storage location combination to two or more warehouse number.

Interim storage area: serve as the link between Inventory and Warehouse Mgt (GR and GI areas)

Storage type-category (F, Q, X) Storage areas (or storage section) are created within storage types for further separation of storage spaces. Picking Area: (same hierarchy level as the storage section) is used to divide storage type area for technical stock removal purposes. Unlike the storage section, picking area is optional. Storage bins are master data that you create within a storage section.

GR item from PO is received into a Stor. Loc. subject to Warehouse Mgt.


(MM + FI docs)

Transfer requirement doc Material is booked into the goods receiving area/section (interim storage area) Transfer requirement is created (in a put away process) the destination storage type and the storage section, storage bin are determined A Warehouse Mgt tab appear in the items section of a PO You enter a GR against a PO. Quality inspection is required. Where can this stock type be entered? On the purchase order document On the material Master record On the goods receipt transaction

Physical Inventory Procedures The physical inventory has 2 reasons: MRP: correction of incorrect stock quantities Accounting: determination of material stocks for current assets Its carried out on the basis of Stock Management Unit (a non-divisible part of stock of materials): is uniquely defined by: Material Plant- Storage location Stock type (F,Q,X) Batch Special stock

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The physical inventory process comprises 3 phases: 1. 2. 3. Creation of physical inventory (PI) documents Entry of counts Posting of inventory difference

Combining physical inventory steps: you have the option of combining individual phases and performing them in a single step: 1. Enter count without PI document 2. Enter count and post PI difference 3. Enter count without PI document and post inventory difference

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PI document: Is created per plant-storage location Can be for special stocks: per plant, storage loc, special sock, vendor or customer or project You can specify the storage bin or the material group as grouping values (the items are then all assigned to a material group or a storage bin) You can specify a physical inventory number in the document header (different from the number of PI doc) to facilitates the selection of the PI doc to be process during entry of the count data, posting of diff and in evaluation. The status of an item indicates if the item has been: processed, counted, posted, or recounted. Changes allowed in the PI doc Header: Change the planned count date Set or Unset the posting block freeze book inventory Create or change the physical inventory number In a item still to be counted (no count yet) o Change the stock type o Change the count unit of measure o Set the Deletion indicator Enter new items, as long as no count has taken place Delete the document Blocking Goods Movements and Freezing Book Inventory You can block all goods movements relating to a stock management unit for the purposes of a physical inventory by means of the posting block indicator in the PI document header (shows the value X). If it is not possible to block the goods movement for organizational reasons, you can freeze the book inventory in the PI document at the time of the count. Entering physical inventory count: 1. You must print out the PI doc and forward it to the persons responsible for the count. 2. When entering the physical inventory count, you can enter a percentage variance of the count quantity from the book inventory, above which the system issues a warning message. 3. When the entered data is saved, the system determines the book inventory in the system. The difference between the count result and this book is the Inventory difference. You can analyze the difference via the list of differences. The list of differences contains the following information on each item: Contains the following information on each item You can perform the following functions with the list of differences Quantity counted - Q Enter, change, display count Book inventory - Q Post difference (via List of Diff. or via separate transactions) Difference quantity Diff Q Display or change document Difference amount - Diff $ Recount documents or item Posting of Inventory difference: either via the list of differences or via separate transactions, the system creates: MM doc that correct the stock figures, FI doc recording the necessary account movement. The system fixes the posting period of FI doc automatically. You can specify a reason for the inventory difference discovered for each item, EX theft. If a document exceeds the document tolerance defined for the user group, a user who is assigned to the physical inventory tolerance group may not post an inventory difference for this document. If the total value of the documents lies below the document tolerance, but certain items exceed the maximum amount per item, the user may not post the differences for these items, he can process the other items. The fiscal year is set as a result of specification of the planned count date when the PI documents is created. You have created a physical inventory documents. At what point are the inventory count adjusted? When the differences are posted ABC Analysis of the Cycle Counting Inventory The cycle counting indicator is used to group the materials together into various cycle counting categories (for example, A, B, C, and D). A cyclic count indicator A or B or C or D is allocated to material in the material master based on either consumption or forecast value. The item with more consumption value are classified as A, and with minimum as D. A indicator items will be counted frequently (say every month), D will be less frequently (say every 6 months or every one year). There is an option in SAP to have a fixed indicator for a material say A for a material which does not have a high consumption value but it is important to count it every month, then the material can be marked as A indicator in material master with indicator fixed. Options: Consumption Analysis: The system uses the consumption quantities and valuation price based in the master data of the specified plant. Requirement Analysis: The system determines the total value of the requirement of the material from: Indp. Req, Dep. Req., Sales Orders, Stock transp. orders and the Valuation Price of the material.

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Enterprise Asset Management and Customer Service Organizational Levels


Client General
Company Code (FI) Plant (MM/PP)
Highest organizational element) (defined in the system by a 3 digit key Is an independent accounting unit. Financial and profit loss (P&L) statements are prepared at company code level to meet legal reporting requirements. Within Logistics, is one of the most important org. level. Is the Plant at which the operational systems of a company are installed. If the maintenance work is planned at this plant, the maintenance plant is also the maintenance planning plant. Subdivide a maintenance plant according to location criteria. Ex. Site, building. Manages the units of capacity. They are assigned to the respective maintenance plant as workshops. Ex. Mechanics Org. level in which maintenance requirements are planned. The planners. Ex. Foreman, work scheduling

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Location- Based Planning- Based

Maintenance Plant
Location Maintenance Work Centers

Maintenance Planning Plant


Maintenance Planner Groups

Maintenance Plant: Plant-specific planning: maintenance plant = (maintenance) planning plant. In most organizational structures, the maintenance requirement is planned in the same plant where it occurs. Cross plant planning: Multiple maintenance plants are assigned to a planning plant, which does the maintenance planning, order execution, spare parts storage. Other constellations: The planning of a plants requirements (plant 1300) as well as the spare parts procurement takes place in another plant (1000), however, the tasks are performed by workshops available locally. Maintenance Work center: WC is an organ. unit within an operational system. It can be: Machine, Group of machine, Person, Group of people Used for: Main functions: Contain: Main WC in the Master Data for the Costing: determine the costs of an internal activity by a product unit. Default values for task list and ordes equipment or functional locations Scheduling: determine the dates when operations should be Costing data Main WC in a maintenance item performed Scheduling data Main WC in the order header Capacity planning: the capacity requirements for the operations in Available capacity Main WC in the task list header the orders are determined and compared with the available capacity Performing WC in the operations for an order defined in the work center.
Performing WC in the operations for a task list

Service: Organ. level: service center are defined as plants Plant Planning plant: is a plant, in which the services are planned and scheduled. The planning plant need not be the plant that performs the services. Planner group Work center Employee Technical objects (4 types) Functional locations (places) Functional locations Are hierarchically (not network) ordered structures that represent a technical system, building, or part thereof in which objects can be installed. The aim is to structure a technical system or building into units that are relevant for Plant Maintenance. Criteria / Reasons to justify a Functional locations Master Data Structures criteria Structure indicator system structure (Views) Building 1, building 2 The identification for funct.loc. is created using the G eneral Spatial Execution of maintenance tasks
structure indicator. It consists of two input fields:

Pieces of Equipment

Serial Numbers #

BOM

Technical Functional
(process-oriented)

Press, press frame, press hydraulics Polymerization, condensation

Recording of maintenance tasks

Coding template: which characters may be used for identification (Alpha-Numeric-Alphanumeric) Technical data has to be store and evaluated over a O rganization Hierarchy levels: How many levels the structure long period of time may contain Costs of maintenance tasks need to be monitored. S tructure Effects of the usage conditions on the installed equipment have to be analyzed.

L ocation

Differences: - Equipment can be managed with inventory functions while functional locations cannot. - Functional locations are arranged hierarchically while equipment is not. Pieces of Equipment Are individual physical objects maintained as an autonomous unit. The usage list displays all the pieces of equipment that have been installed in chronological order Criteria / Reasons to justify a Piece of Equipment Installation / dismantling of Equipment: Master Data (Views) (bis) structure G eneral Equipment can be installed and dismantled at functional locations. Management of individual data You can monitor the installation times for a piece of equipment from both L ocation Recording of maintenance tasks the functional location view and the equipment view. O rganization Object-based recording of costs S tructure Evaluation of technical data Recording of usage times

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Serial Numbers # Is a number that is assigned to an individual material item in addition to its material number. The combination of material number and serial number is always unique. Serial numbers enable you to track individual items for a given material number. This in turn enables you to perform inventory management. You can assign as many numbers to a material number as is necessary. The same serial number may occur for different material numbers. An equipment master data is created for each serial number. Maintenance BOM Are used to structure functional locations and pieces of equipment in more detail. The maintenance BOM differs from other BOMs in that it only contains items relevant to plant maintenance. Material BOMs are always used in Plant Maintenance if a number of similarity constructed objects have to be maintained. This is indicate in the Structure view of the technical object (construction type field). The aim is to create just one BOM for several same technical objects. 3 important functions Structuring of the objects Spare parts (piezas de repuesto) planning in the order Spare parts planning in the task list 3 categories of maintenance BOM Material BOM Equipment BOM Functional location BOM

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Corrective Maintenance Process


5 steps. 1. Notification: what?, where? 2. Planning: Work, material, tools 3. Scheduling: Release, availability chk 4. Execution: material usage plnd/unplnd . Task is performed; the required materials are withdrawn from storage with reference to the order. 5. Completion: Time, settlement - TECO. In the corrective maintenance process, maintenance requirements are collected within notifications and then dealt with during order processing Maintenance Notification Structure Technical Objects Maintenance notification can be created for the following type of objects Header data: information use to identify and manage the maintenance notification. Functional location (with or without assembly) Notification item: data about the problem, damage or activity in detail; a Piece of Equipment (with or without assembly) notification can contain several items. Material with Serial number o Activities: document the work performed for a notification, they prove BOM certain tasks have been performed. No object: without specifying an object number (for new objects or for ones that o Task data: describes activities that should still be performed. are not managed in the system under a number) Maintenance Order Structure Header data: serves to identify and manage maintenance order. Object list: contains the objects to be processed (functional locations, equipment, assemblies, serial numbers). Its used to compile multiple notifications and also to assign several technical objects to the order. Operation: describe the tasks that should be performed for the maintenance order and who performs them with what guidelines. o Material list (component list): contain spare parts, which are required and used when the maintenance order is executed. o PRT - Production resources/tools: are required to execute the maintenance order. (Ex. Protective clothing, trucks, etc). Settlement rule: provides information on who should bear the costs. This info comes from the Object Master data that is maintained. Costs: tells you how much the estimated plan and actual costs are in the value categories for this order. Maintenance Creation of Maintenance Order: Options Notification Maintenance Maintenance Directly Order Notification Maintenance From a notification Notification From many notifications Order is first created and then a notification/activity report is created Maintenance Order is automatically created based on a maintenance plan Plan Stock material process flow Non stock material process flow You can plan materials, which are required to execute the task, for each operation in the maintenance order. The materials can be BOM components for the reference object or freely assigned materials 1. Component assignment (availability check) 1. Component assignment 2. Material reservation (in the warehouse) 2. Purchase Requisition (application) 3. Order release (automatic availability check) 3. Purchase Order 4. Printing 4. Order release 5. Goods issue 5. Goods receipt 6. Invoice receipt

Cost analysis in maintenance order: can be performed/display in 2 ways, at: Cost element level (controlling view) Value category level (maintenance view)
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Order release: Effects of order release: Reservation becomes effective, can be withdrawn Printing of papers Confirmation becomes possible Goods movement becomes possible The Document Flow allows a view of that. Documents Printed with an order Job ticket: is a document which gives the person executing the maintenance work a complete overview of the order. If connected to DMS can print graphics Operation control ticket: shows the maintenance engineer responsible a complete overview of the maintenance order. Material pick list: Shows the warehouse clerk which materials have been planned for each operation in this order. Object list: Shows an overview of the objects (technical objects, notifications) involved in the order. Time ticket: contains the standard time and duration, and is only printed for operations with the corresponding control key. Confirmation slip: used by workers an entry sheet for their work times. Material withdrawal slip: authorizes the person executing the maintenance work to take the materials required for the order from the warehouse. Order Confirmation: times/activities: There are 4 different ways to confirm the time required for work on a maintenance order: 1. Individually entry of times for each order operation 2. Collective entry by direct entry or using an operation list 3. Overall completion confirmation: times, activities, measurement values, and so on, on a collective screen 4. Entry using the cross-application time sheet (CATS) Completion confirmation: Contains the following info Time, Material, Measurement documents Technical Completion: TECO can then only be changed online as follows: It can be locked or unlocked The deletion flag can be set Post cost to order (even after Teco) - Location and account assignment data for an order is determinate by the date of the order creation (not date entered during TECO). -Cost Center info can be updated if there are changes after order creating using Update reference object data Document flow: Docs. Available: Notification Completion confirmation Goods movement Purchase requisition Purchase order Reporting and Analysis Reports available Maintenance history o Completed notifications and orders o Historical orders Material usage o Material where-used list (material withdrawals planned-unplanned Standard Analyses Action log: Changes to notifications, orders, equipment, and functional locations are displayed in chronological order in an action log. This enables you to track who has changed the data or status of which fields and when. Automatic activities after TECO If there is no settlement rule, one is created automatically PRs for which there are no POs are marked for deletion Close the open capacities Close open requisitions Reverse techn. completion: UNTECO: Effects Order becomes modifiable Status becomes RELeased Location and account assignment data are re-copied from object Open purchase requisitions are recompiled Open reservations are recompiled Open capacities are recompiled Material withdrawal: Manual workers withdraw materials from the warehouse to perform maintenance tasks. There are two types of withdrawal: The report called Material Where-used List enables to see which one was used. Planned withdrawal of stock material Unplanned withdrawal of stock material Materials can also be procured externally The Document Flow allows a view of the maintenance order goods movements

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Service Order Process


10 steps in Process flow 1. Creation (not order): the employee enters a serv. notif. for the customer call. They generate a serv.order from the notification. Each order must contain at least 1 operation. 2. Planning: 3. Release: the processor put the service order in process. The order receives the status released and shop papers are printed. 4. Print / communication 5. Execution 6. Confirmation: after performing the work, the technician confirms the number of hours worked and materials consumed. 7. Technical completion: the technician then technically completes the order and simultaneously the notification 8. Billing document: the employee responsible for order settlement creates a billing request from the service order 9. Settlement 10.Business completion

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Structure Header data (Customer, Service data, Responsibility, Dates, Reference object) Operations: Who should do what when? Components: Which materials are required / PRTs? Costs: Estimated, planned & actual costs, revenues Partners: Internal and external Objects: Technical objects and notifications (object list)

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Service Order Creation Option: Notification Service Direct entry (with order type and planning plant) Service Order From a service notification Notification From several notification. Combine several notifications in one order Sales Order From a sales order item Item Automatically from a maintenance item Maintenance Item Value flow: The 3 service order type controls whether the service order is revenue-bearing or not. When posting confirmation, cost and revenue are posted to the service order. without assignment to a sales order item revenue bearing The result of this difference is charged to the settlement receiver of the service order. When posting confirmation, cost and revenue are posted to the superior sales document item or with assignment to a sales order item non revenue-bearing Service order for returns and repair processing non revenue bearing the service order. The result is charged to the settlement receiver of the sales doc item.

Service External: Process Flow: (we buy a service in this case) External operation Purchase requisition Purchase order Order release Goods receipt Invoice receipt.

Service External with service sheet or specifications: Process Flow: External operation Purchase requisition Purchase order Order release Service entry (services performed) using service entry sheets Service accepted (serv. order is debited with the order value Invoice receipt

Order release: Effects of order release When you perform the function put in process, the shop papers can be printed and the order is released (status RELEASED) and saved at the same time. The function release is used to release the order without a printout and without saving automatically. Printing of shop papers Posting costs to the order, time confirmations, material withdrawals, goods receipt postings, and so on. Revenue postings to the order by generating billing documents Technical and business completion of the order. Order Confirmation: All relevant information that has been created during execution of the order is entered during order confirmation. You can use overall conf. Working time: internal activity External services (Goods receipt, Service entry sheet) Activities (Activity reports, Completion confirmation texts) Material postings (Planned withdrawals, Unplanned withdrawals, Goods receipt for purchase order) Object changes Measurement values / counter readings Travel expenses Resource-related Billing: During billing, the system generates dynamic items from the information about the expenses involved. The billing request is a special form of sales order and forms the basis of the billing document. Billing documents Order settlement: Settlement: further allocation of costs and revenues for an order to the settlement receiver(s). These are located in the settlement rule. This can be automatically determined based on the order header data entered Manual changes to the settlement rule are possible. Prerequisites for the settlement of a service order: The order must be released A settlement rule must exist The order must contain costs or revenues that have not been settled. Possible settlement receivers are: G/L account, cost center, order, WBS element, asset, material, network, profitability segment, sales order, and business process. A profitability segment is a combination of account assignment features, such as company code, sales organization, division, and article. Cost and Revenue Analysis in the service order: Costs and revenues are collected and displayed on the order header level. Revenues are only posted to the order if the order type is classified as revenue bearing. There are two views for costs and revenues: By value category a value category contains one or more cost elements By cost element
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Program and Project Management - PS


Projects are tasks with particular characteristics: They are usually complex, unique, and involve a high degree of risk. They have precise targets that are agreed on between the contractor and the sold-to-party. They are limited in duration and are cost and capacity intensive. Several departments are involved in a project. They are subject to specific quality requirements. They are of mostly strategic significance for the business carrying them out. Organizational units in the SAP system: The project system has no organizational units on its own. Depending on the project type and configuration, the organizational units from a wide range of areas are used (SD, Purchasing, Production, FI, CO, HCM, etc). Master Data: Work Breakdown Structure (WBS) Activities is a model of a project, and shows the project show the flow of a project or of activities involved in a project. The individual tasks are linked activities to be fulfilled in hierarchical form to each other, and grouped together to form what are known as networks. It forms the planning costs, revenues, and payments, as well as planning and controlling dates, costs, and resources (personnel, machinery, PRTs, and operative basis for for scheduling, and budgeting materials) Linking Activ-WBS Total up (aggregation) of dates and costs of individual activities at the WBS level. Checking against budgets also becomes possible WBS Functions WBS element - operative indicators WBS elem. for which we want to plan costs manually. PLANNING elements ACCOUNT ASSIGNMENT elem WBS elem. for which we want to post actual costs. WBS elem. for which we want to post revenues. BILLING elements Project Builder: Is a tool that enables the maintenance of any object (WBS elem, activ, networks, materials, relationships, PS texts) in the project system, except for the assignment of PRTs. Editing the project via the project builder: You can use the project builder to create or change objects in your project (project definition, WBS elements, activities, activity elements, PS texts, document, milestones, relationships and material components). When you create projects, you can copy an operative project or a standard project together with all the lower-level objects (WBS elements, activities, PS texts, documents, milestones, components). Activities and networks: Structures: The activities in a project describe the various steps and work involved in the project. In the project builder, you create activities for WBS elements. This means that the activities are assigned to the WBS elements in question. It also means that the planned and actual data for the activities (dates, costs, and payment) can be aggregated at the WBS element level. Activities are linked to each other by means of relationships this result in a causal and chronological activity sequence. There are 4 activity types or categories: Internal processing for capacities to be staged in your own company External processing for tasks to be assigned externally Services for procuring external services Cost for planning additional primary costs Functions: The activities in the network are used to plan the labor, capacities, materials, tools, and services to carry out various tasks in your project. Network structure graphic: All of the functions you need to create a network are available in the network graphic (EX: inserting activities or relationships) You can access the network graphic from various functions in the Project System (the Project Builder, project planning board, or the information system, for EX) Cycle analysis is a function that you can only perform in the network graphic. A cycle is a closed sequence of relationships and activities. Cycle analysis is a tool that enables you to detect cyclical relationships, and correct them. PS Texts, Documents, Milestones: Assignments: PS texts are user-definable texts that are managed in a PS text catalog. The texts are classified into different text types. You can assign PS texts to 1 or more WBS elem. or activ. Document Management System can assign document info records to WBS elements and activities. Project Information System, can display the documents info records and the corresponding original documents online. You can assign milestones to activities and WBS elements.

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Project Planning Project planning board: Objects: (based on Gantt chart) Is a graphical interface you can use to create and edit all the data for a project: Project definition WBS elements Six typical areas of focus for project planning Activities Project structures Relationship Dates Milestones Payments Documents Resources PS text Materials Materials Basic Dates Basic Dates for WBS Elements: You can plan dates for individual WBS elements as well as you can enter outline dates for your project in the project definition. Resource Planning: You use activities in a network to plan the resources required for a project. The Project System draws a distinction between the following resources:

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Internally Internally processed activity determines the output to be provided by machines or personnel in order to complete the activity. You can evaluate the capacities of the various work centers involved, reschedule these capacities as necessary, and distribute work among employees. You must enter work data for an activity so that the system can plan capacities for a project and calculate costs for activities. You need to specify the amount of work (machine or personnel) involved and the work center that is to perform the work. Work centers (where activity is carried out): contain data for costing activities, scheduling, capacity.

Externally Externally processed activity Services activities to specify the necessary services to be are also used to procure services externally. The difference between provided by other companies in order to service activities and externally processed activities is that, if you use complete the activity. External service activities, you can draw up service specifications and set value processing is carried out via the limits for any unplanned services. The purchasing department carries purchasing department. out service processing: entry of services + acceptance of services Steps in externally processed activity: Purch. Req. -> Bid invitation -> Quotation Entry -> Vendor selection -> PO processing -> PO monitoring -> Goods Receipt GR -> Invoice verification (In GR or Invoice verificatin actual costs are posted) Goods Receipt for services involves 2 steps : 1. Entry of services performed 2. Acceptance of serv. performed

Materials in projects: Materials establish the link between the Project System (PS) and Sales and Distribution (SD), Materials Management (MM), Production Planning and Control (PP). Actual data is posted to the project by business transactions from various SAP components including: Material Management (purchase order, goods receipt for materials and services) Inventory Management (goods issue) Sales and Distribution (billing of the sales order) Production Planning (confirmation of assigned production orders) Plant Maintenance (confirmation of assigned PM orders) Controlling (internal activity allocation, assigned CO orders) Financial Accounting (down payments, Payments, journal entries) Asset Management (settlement to assets) Human Resources (entry of work for persons, posting of activity confirmation) Cost Planning in projects: Overall (cost) planning (hierarchical planning) Cost element planning Unit costing Easy cost planning: is an easy to use tool for planning costs in WBS elements, you access from the project builder. Cost planning using activities / network costing o The resulting plan can be copied to new projects o If parts of the project are shifted, cost planning is shifted automatically along with the activities. o Planning using network activities is by cost element and period. Project: Assignment of Orders: You can assign various orders to a project: Internal orders, Production orders, Maintenance orders, Network, etc and then evaluate them. Depending on the order type and the plant, networks can be header assigned or activity assigned. Activity-assigned network are used where costs are gathered in each activity. Header-assigned networks are only significant for sales order.

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Project budgeting Cost planning and budgeting: 1. Bottom up extrapolation 2. Overall plan value 3. Cost planning 4. Requested budget 5. Approved budget 6. Budgeting 7. Top down distribution Project costs must be estimated as accurately as possible during cost planning, it is in the approval phase that funds are assigned in the form of a budget. The budget differs from the project cost plan in that it is binding. It is the device by which management approves the anticipated development of project costs over a given period of time. Budgeting overview: Maintain original budget transaction is used to assign funds for the project and its parts. In the budget profile: you can specify whether funds are to be assigned as overall values, or distributed by year instead. Budget release function is used to make funds available at various pints within a fiscal year. Budget carry forward function is used to transfer any funds not used up in the previous year to the budget of the new fiscal year. Assigned funds and availability control: When a project is being executed, the available funds are committed to various places. These so called commitments are created, and actual costs are incurred. Together with the costs of apportioned orders, both these forms of fund commitments result in what are referred to as assigned funds. The funds overview can be regarded as passive availability control. However, the Project System also supports active availability control (certain events can be triggered if certain tolerance limits are exceeded). The corresponding assigned funds are calculated and checked against the budget. The assigned funds can be found in the budget bearing WBS element and in the lower level assignable WBS elements. If certain tolerance limits are violated (shortfall in budget, budget exceed), this can trigger various system responses. In customizing for the tolerance limits, you can specify which response is to be triggered and when. Project Execution Confirmation Documents the processing status of activities and activity elements in a network, and enable you to make forecasts as to how the project will progress. Transactions that are triggered automatically by confirmations: Posting actual costs, Actual dates, Actual labor (work) Changing activity status You can create confirmations in the following ways: Individually for each network, activity, activity element, or individual capacity Collectively Using the SIS - Structure information system Using CATS (Cross-Application Time Sheet): is an integrated function for entering actual time data important in HR, PS, PM, CS, and CO. Via the Internet Using Palm Pilot Via the PDC interface PeriodEnd Closing

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Schedule Manager Its a tool to carry out Period-end closing, that is period-related commercial transactions. You use it to ensure that all data belonging to a period is determined and that data is available for enterprise controlling purposes. Period-end closing procedures are performed periodically in the background, usually once every period. The procedures are generally carried out for the previous month at the start of the next month.

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Settlement: Debit and Credit Actual costs and actual revenues arise in a project or order as a result of: Material withdrawals and goods receipts Vendor invoices Customer billing Internal activity allocations, transfers, cost distribution, process costs, overheads Confirmation of network activities In settlement, Costs/revenues are transferred to: FI-Financial Accounting (G/L account) AA-Asset Accounting (fixed assets) CO-Cost Accounting/Profitability Analysis (order, cost center, profitability segment) PS-Project system (WBS elements, networks, activities) You need a settlement rule to carry out settlement which is defined in the sender object. The settlement rule contains the distribution rules and the settlement parameters for a sender object. Multi-Level Settlement Direct Settlement: Direct settlement, each object (WBS elements, networks, orders and activities) in a project is settled directly to a cost object not included in the project, such as a profitability segment. Its used for the settlement of PS structures to receivers other than those specified below. Multi-level settlement, each object (WBS elements, networks, orders and activities) are first settled to the higher-level WBS elements in the project. The top element then settles the costs collected. Its used for settlement to WBS elements of other projects or internal orders.

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Information System Information Systems: Overview You can use the following information systems to evaluate important key figures for your project: Structure information system (SIS): not only a tool for displaying info, also you can create and change project structures from the reports. Cost/revenue/payment (Controlling) information system, with hierarchy reports, cost element reports, and the SAP List Viewer for line items. Capacity analysis Order report, lists of reservations, purchase requisitions, purchase orders pertaining to the project, ProMan Stock/requirements overview Progress analysis, progress tracking SAP Business Information Warehouse The following reports and systems are available, in particular for cross-project evaluations: Project summarization SAP Executive Information System Profit center Accounting reports Profitability Analysis Reports Cost Element Report: Display costs by cost element. In a navigation panel in the cost element reports, for example, you can go to a structure and choose the object whose costs you want to analyze or call up an appropriate list and choose the object whose costs you want to analyze or call up an appropriate list and choose the period you want to evaluate. You can use sort and filter functions here, as well as different currencies to display the data.

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Human Capital Management / HCM Structures


Enterprise, Personnel, and Organizational Structures: A personnel management system enables you to reproduce company hierarchies and relationships within the hierarchies, and to store and manage employee data. The first step in recording personnel data is to assign the employee within the company structures. You assign employees in infotype 0001, Organizational Assignment. In doing this, you include employees in the enterprise, personnel and organizational structures. Information on the organizational assignment of employees is of great importance for authorization checks, for the entry of: Additional data, Time Management, Payroll Accounting.

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When you enter data for an employee in infotype 0001, Organizational Assignment the employee is assigned to: A company code - A personnel area - A payroll area - A position This result in the employees assignment to: An organizational unit - A job - A cost center. If Personal planning and administration are integrated, positions can be entered in infotype 0000

Organizational Structures (Levels)


Is hierarchy. Its a legal and financial structure. Highest organizational element) (defined in the system by a 3 digit key Client Is an independent accounting unit. Financial and profit loss (P&L) statements are prepared at company code level to meet Company Code (FI) legal reporting requirements. Is unique within to Personnel Administration and to a client. Each personnel area must be assigned to a company code, represents a subdivision of CC Functions: define/generate: Personnel Area Default values for data entry (EX: payroll accounting area). Selection criterion for reporting. Unit in authorization checks. Enterprise Is also unique to Personnel Administration. Represents a further subdivision of the personnel area. Structure Principal HR aspects are controlled at this level: (Pay scale, Wage type structures, Planning work schedules). Functions: define/generate: Specify the country group. wage types and pay scale groups in payroll depend on the country grouping. The grouping must be unique within a company code. Assign a legal person which differentiates between companies in legal terms. Personnel Subarea Groupings for Time Management so that work schedules and substitution, absence and leave types can be set up for individual personnel subareas. Default pay scale type and area for an employees basic pay. Public holiday calendar. Wage types for each personnel area. Is relational. It forms employee groups by specific status (active/inactive) and type (salary or hourly). (Work hours and compensation) It defines the relationship between an employee and a company creating various types of employees. Active employees, Pensioners, Early retirees, Contractors Functions: define/generate: Employee Group Default values for data entry (EX: payroll accounting area). Selection criterion for reporting. Unit in authorization checks. Is a fine division of employee groups. Its used to define different payroll procedures (hourly VS salaried). Personnel Active employees are differentiated according to their position: trainee, hourly wage earner, salaried employee. Structure Functions: define/generate: Employee Sub-group Payroll procedures for different employee subgroups (EX: hourly or monthly basis pay) Wage types controls the validity of wage types on an employee subgroup level. Default values using employee subgroup (EX: payroll area) Is used to determine payroll run batches. Payroll for all employees of an area are run together. The payroll area provides the payroll driver with two pieces of information: The number of employees for whom payroll is to be run (determined using Org. Assig. infotype 0001) Payroll Area Dates of the payroll period An employee may only change payroll areas at the end of a period. provides a model of the structural and personnel environment Organizational units Represents the hierarchy that exists between the various organizational units in your enterprise Are general classifications of tasks that are performed by employees. One job may have many positions. Jobs (general, tasks Jobs are used in the following components: definitions) Shift Planning Personnel cost Planning Manager Personnel Development Organizational Are the individual employee assignments. Positions are occupied by employees Structure/Plan Position (specific) Positions are enterprise specific A number of positions are based on the same job Purchasing Manager, Each position represents one employee. However, it is possible for a position to be occupied by more than one employee. Sales Manager, etc Positions can be 100%, partially filled or vacant One position may be shared by a # of employees (each working less than full time (ex. 50% each) Represent employees that hold positions. Persons (assign. to Infotypes for persons are maintained in Pers. Admin. And are linked to an Organ. Plan through their position assignment. position)

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Infotypes: organ. Assignment 0001

Employee Records Are logical groupings of data fields, like Individual information, such as name, first name and date of birth. Data fields are groups into data groups or information units according to their content. In HR, these information units are called information types or infotypes for short. Infotypes have names and 4 digit keys. Each infotype record has a validity period or a key date Infotypes Maintenance 3 ways of processing infotype records: single screen maintenance (individual infotype maintenance) personnel actions (1 person many actions) fast entry (1 action, many persons) Initial entry screen for Infotype Maintenance: Infotypes that are most frequently used are grouped together by subject matter and assigned to static menus. You can use the tabs pages or make a direct entry (search directly for the word or phrase) The green ticks next to the menu list of infotypes indicate that these records already exist for the selected personnel number. Personnel File: Lists all of the infotypes for which records have been created for a personnel number. Organizational Assignment: After you save the personal data (0002) infotype, the system automatically displays the organizational assignment (0001) infotype.
The following fields are already filled by the organizational assignment: Company code Personnel area Personnel subarea Business area Employee group Employee subgroup The position entered and its existing relationships to a job, organizational unit, and cost center are imported.

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HCM Process Human Capital Management Process: 1. Recruitment 2. Hiring 3. Training and Personnel Development 4. Managing Work Time 5. Compensation and Benefits 6. Payroll Administration 7. Travel Planning 8. Personnel cost planning and reporting 9. Employee Self-Services Recruitment Process: from the vacancy to hiring an Applicant: 1. Vacancy 2. Advertisement 3. Applicant 4. Profile matchup 5. Hired as an employee When you hire an applicant, you can transfer the applicant data recorded in Recruitment to Personnel Administration. The system adopts all data you enter in the Recruitment infotypes as default values in Personnel Administration. Managers can use the Managers Desktop tool to carry out their recruitment processes. Jobs openings can be advertised online (web based browsing) (display and apply) Externally: web based application called Employment Opportunities Internally: the employee self-service solution Job Advertisements Personnel Development and Qualifying Actions: The Personnel Development function can help you maximize the value of your employees for your enterprise. You can plan and implement specific personnel and training measures to promote the professional development of your employees. Management can determine the personnel development needs by comparing current and future working requirements with existing qualifications and the development preferences of the employees: Identifying the need an employee can be transferred to a specific post. Retaining or enhancing existing employee skills and abilities You can group qualifying actions (training courses or job rotation) into development plans You can assign qualifications to employees and positions. When related with employees, we refer to them as qualifications, when related with positions; we refer to them as requirements. Personnel Development: All qualifications and requirements are stored centrally in a catalog. Both refer to the same object but from a different perspective Training Proposals for Training Deficits: If Personnel Development is integrated with Training and Event Management, you can use the Generate training proposals function. In this case, the system proposes training courses (business events) that can provide any missing qualifications. You can book employees for courses directly, or alternatively prebook them for business event types. The system proposes only business events and development plans that result in the same or a higher level of proficiency at the qualification.

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4 main processes: 1. The business event preparation: creation of master data: time sched., event locations, resources 2. Create the business event catalog 3. Carry out day-to-day activities 4. Recurring activities phase

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Career and Succession Planning: Has 2 goals 1. Encourage the professional development of employees in a company 2. Ensure that there is always sufficient headcount Career Planning involves identifying possible career goals for employees, and planning their professional development. Succession Planning involves looking for suitable candidates to fill open posts. Time Management: overview: Displays and records working times flexibly Information on working times is used to calculate gross wages in Payroll Several options are available for recording working times: Time Managers workplace Central time sheet Online menus Time recording systems Employee Self-Service (ESS) applications. You can manage time accounts (such as leave, flextime) manually or automatically. Working times can be used for activity allocation in Controlling: costs generated by working times can be assigned according to their source in Controlling. Information in time management is used in Logistics to determine employees availability for capacity requirements planning. You can determine work requirements for the enterprise and plan employee shifts. Types of Time Data Valuation and remuneration of employee working time is based on time data recording. Deviations or exceptions of an employees work schedule are recorded in the Time Managers Workplace. This info is stored in the appropriate infotypes. Example of time data are: hours worked, leave, illness, overtime, substitutions, and business trips. CATS - Cross Application Time Sheet Is another form of Employee Self-Service. You can use it to record the actual working times of individual employees. The CATS-Cross-Application Time Sheet offers the following advantages: Cross-application standard screens for entering working times Ease of use for all users Default values and data entry templates Integrated approval process Support for corrections Flexibility in the definition of authorization checks, plausibility checks, and default values. CATS Business Process: steps Create account assignment Record times Release times Approve times Transfer data to follow-on processes Compensation Management: The Compensation Management component controls and manages remuneration policy at an enterprise. 4 areas: Job pricing: determine the internal value of jobs and positions at your enterprise to ensure that you remain competitive. Budgeting: you assign budgets to organizational units. Compensation administration: distribute salary increase, shares and so on. Long-term incentives (stock options plans): supports 5 types: o Incentive stock options o Nonqualified stock options o Performance shares o Performance units o Restricted stock

Integration with other Application Components: Sales and Distribution Billing of attendance fees Materials Management Generation of purchase requisitions and material reservations Personnel Development Check for and transfer of qualifications Time Management Recording and checking of attendance Organizational Management Use of organizational units as attendees and organizers of business events Personnel Administration Use of persons from the HR Master Data as attendees and instructors Appointment Calendar Automatic generation of entries in the Appointment Calendar SAP Knowledge Warehouse Display of information material from the Knowledge warehouse Cost Accounting Internal activity allocation of attendance fees and instructor costs

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Benefits: In many countries, employees generally participate in benefit plans offered by their employers as part of their compensation package. There are 6 international plan categories define in the system: Health Insurance Savings Stock Purchase Credit Miscellaneous Personnel Cost Planning and Simulation: Its integrated with other applications. You can take payment info from different sources and planned compensation data for positions and jobs to generate personnel cost plans. You can perform scenario specific cost planning runs. This enables you to simulate the effect of certain planning assumptions on your future cost situation. It as a web based interface. You can export generated cost plans to SAP Business Intelligence for analysis. After you have released the plan, SAP HR users can use the data to: Generate the salary budget for Compensation Management Create training budgets for Training and Event Management You can also transfer the data to Accounting. Payroll Accounting: Its the calculation of payment for work performed by each employee, also includes a number of subsequent activities, for example: Transfer of payroll results to Financial Accounting Various evaluations, such as evaluating the payroll account Transfer of payments to third parties, such as taxes. Calculation of Remuneration Elements: The remuneration elements for an employee are formed from individual wage and salary types that are used during a payroll period. Remuneration elements: Basic pay, Gratuities, Illness, Bonuses, Leave, Overtime, Shift Work Bonuses Overview of the payroll Process: During the payroll run, master data and time data changes that affect the payroll past and payroll present are not permitted. The payroll program reads the master data and time data infotypes, so changes made during the payroll run could put in risk the accuracy of the payroll results. It also means that you must not run the payroll during master data maintenance. Travel management This component includes all necessary functions for dealing with business trips: travel request, approval, settlement, and if needed corrections and retroactive accounting. Travel Management is interfaced with FI / CO / HR and non SAP systems. Travel expenses: The Travel Expenses settlement program lets you settle all trips with the status approved/to be settled. The trips must end before the end date of payroll period in order to be settled. Employee Self Service (ESS) Is a set of applications that empower employees to view, create and maintain data in the SAP system via the Intranet. Components: Office Time Management Payment Benefits Personal Information Training and Event Management Qualifications Appraisals (evaluations) Highlights: Extensive functionality beyond basic HR functionality, including travel management and purchasing Inherent integration between SAP system business scenarios, SAP ESS, and workflow ESS functionality that leverages the strengths of underlying SAP infrastructure Global capabilities Enabling access from any platform at anytime from anywhere Easy to use Personalized

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Reporting and Analysis HCM You can access Standard Reports from the SAP Easy Access Menu or using general report selection. The Human Resources Information System (HIS) starts all HR reports within Structural Graphics. Ad Hoc Query enables you to create reports. Its integrated into SAP Query. Managers Desktop: consists of the 6 theme categories and their function lists: Employee, Organiz, Cost and Budget, Recruitment, Special areas, Workflow inbox The Business Warehouse is an independent system in which analyses can be performed.
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Business Intelligence / Business Information Warehouse


Business Intelligence: Information Warehouse SAP BW data sources: SAP ERP Non-SAP XML Databases (external: databases, online services, internet) The BW system (data storage, loading and reporting) Is preconfigured for core areas and functions by Business Content. Has its own database and SAP system InfoObject: are business analysis-objects (companies, sales volumes). They can be divided into: Characteristics: specified criteria based on characteristics or organizational elements (EX: company, division, segment, product, vendor; customer) which are divided in:
o Units o Time characteristics o Technical characteristics (EX: request ID)

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Key figures are performance measures; quantitative information based on measurable facts: sales volumes, net sales, costs Characteristics describe the affiliation key figures. InfoCube: The central data stores that form the basis for reports and analyses is SAP BW are called InfoCubes. They contain key figures and links to its associated characteristics (master data) Master data in the BW system consists of attributes of a characteristic, as well as hierarchies and texts of a characteristic. An InfoCube consists of several database tables that are linked according to the star schema. Each InfoCube has 1 fact table and a maximum of 16 dimensions tables Each fact table can contain a maximum of 233 key figures A dimension can contain up to 248 freely available characteristics. InfoCubes are stored in structures called InfoAreas. (folders to store infocubes) InfoProvider: Is an object or view that you can use to create reports in Business Explorer (BEx). InfoProviders deliver data that can be analyzed using a query. There are two types of data stores: Physical data stores include: o BasicCubes o ODS objects o InfoObjects Logical views of physical data stores include o InfoSets o RemoteCubes o VirtualInfoCubes o MultiProviders Operational Data Store (ODS): An ODS, is a data store that stores data at the basic level (document level). It is normally used to resolve and consolidate datasets. These datasets are often from various data sources and/or source systems. Administrator Workbench (AWB): Is a workplace for SAP BW administrators. AWB functions are used to configure, control, and administrate SAP BW elements. OLAP technology permits multi-dimensional analysis according to various business perspectives. The Business Explorer (BEx) component provides users with extensive analysis options. Reporting in Business Warehouse Business Explorer - BEx is the SAP BW component that provides flexible reporting and analysis tools that you can use for strategic analysis and supporting the decision-making process in your company. Employees can analyze historical and current data at differing levels of detail and from different perspectives. BEx allows multiple ways to access to information into SAP BW: BEx Analyzer Web Application Formatted Reporting (using Crystal Reports) Mobile Intelligence SAP BEx: choose Query: Using the SAP BW reporting functions, you can evaluate a dataset from an InfoProvider according to various characteristics and key figures. To do this, you define a query for your chosen InfoProvider in the BEx Query Designer. By selecting and combining the InfoObjects in a query, you determine the way in which data from the chosen InfoProvider is evaluated.
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Query Designer: Once you have selected the InfoProvider, the query Designer is divided into 6 subareas: 1. Directory tree of the selected InfoProvider: all available objects (dimensions, key figures, structures) are displayed. 2. Columns: define the columns of the report 3. Rows: define the rows of the report 4. Free Characteristics: those characteristics are transferred 5. Filter: characteristics, key figure or combination. 6. Preview Using Drag & Drop, drag the selected objects of the InfoProvider tree to the appropriate subarea (rows, columns or free characteristics). Filtering Data in the Query Definition: It is often necessary to restrict (filter) characteristics to specific characteristics values in the report. You can restrict the characteristics value of characteristics in the rows, columns, free characteristics and filter areas of the of the query designer. 2 ways of restricting characteristics: By selecting a characteristic from the InfoProvider of the characteristic and double clicking on the value icon. Call the context menu of an already included in the definition and chose restrict. Including Text Elements in BEx Analyzer Reports: You have the option of displaying different text elements as additional information in a query (EX: the author, last changed by, InfoProvider) these text elements are referred to as the header information of the query. Finding a query: To find a query for which you already know a part of the description or other info, choose find. In the search for queries dialog box enter the technical name or descr. query. Web query: To publish the query on the web, save it and choose display Query on the Web. The query displays in a standard Web template. You can change the stan. Web temp, if require.

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