Intro to SAP Enterprise Systems Configuration

EGN 5620 Enterprise Systems Configuration Fall, 2012

SAP R/3 Introduction

Enables

a company to link its business processes Ties together disparate business functions (integrated business solution) Helps the organization run smoothly Real-time environment Scalable and flexible

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SAP R/3 Introduction

Central

relational database

Oracle, Informix, Microsoft SQL, etc.

Client/Server

three-tiered ERP Components Oriented towards common identifiable business modules:

MM, SD, PP, FI, CO, HR, WM, QM, PM
Add-ons:

Customer Relationship Mgmt (CRM) Supply Chain Mgmt (SCM) Product Lifecycle Mgmt (PLM) Business Intelligence (BI)
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Relational Database
Tables:

Defines and links a couple of tens thousands of tables of information (25,000+) Advantages
Consistent and accurate data Common definitions for terms Shared, but restricted usage (e.g., profiles) Eliminates data redundancy

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Client/Server Environment
Client

Software/hardware combination that can make a request for services from a central repository of resources
Server

Software/hardware combination that can provide services to a group of clients in a controlled environment

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Three-Tier SAP Structure

GUI

Graphical User Interface or Web Interface Application server (one or many) Database server (one single location)

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SAP Enterprise System

PCs, Laptops, etc. Browser Client

Network
Web Server

Presentation Application Database

D ta a e a bs

Internet Transaction Server

Application Servers

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Enterprise Systems (history & Evolution)

SAP R/3 Introduction

Instance

each install of the SAP R/3 software on an individual application server each instance can be distinctively configured to fit the needs and desires of the customer (within limits) of the infrastructure decisions, including configuration decisions, occur during project implementation
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Configurable

Most

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SAP Configuration
The

process of tailoring SAP software by selecting specific functionality from a list of those supported by the software, very much like setting defaults (e.g., Word, Access) NOT involve changes to the underlying software code

DOES

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10

Programming Code Modifications

Changes ABAP/4

to the delivered code

Advanced Business Application Programming (ABAP) should be done carefully as it can make migration to new versions of the software much more difficult

This

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11

SAP Data Types

Required data types:

1.Organizational levels (data, elements) 2.Master data 3.Transaction data

Data type: Organizational levels

Defines

the enterprise structure in terms of legal or business purposes, including legal entities, plants, storage
areas, sales organizations, profit centers: Client (e.g., 600) Highest organizational level Represents the enterprise consisting of many companies Company Code (e.g., C099) Identifies legal entities in an enterprise Central organizational element in financial accounting Organizational levels in Logistics Plant (e.g. P099) Represents factory, warehouse, office, distribution center, etc. Storage locations (e.g., 10, 20, 30) A location within a plant where materials are stored

Data Types: Organizational levels

Data Type: Organizational levels

Organizational levels in Accounting Client Company code Business area Controlling area Operating concern Organizational levels in procurement Purchasing organization Purchasing group Plant Storage location
Organizational

levels in fulfillment (sales) Sales organizations Divisions Distribution channel Sales areas Shipping point Plant Storage location Organizational levels in PP Plant Work Center Storage location Shipping Point

SAP Enterprise Structure Example

Procurement
Shipping Point Storage Location
DL## RM## SF## FG## MI## MI## TG## FG## MI## SD## TG## FG## MI## TO## TG## FG## MI## HD## RM## SF## FG## MI## HH## TG## FG## MI## PE## TG## FG## MI##

Central Purchasing Organization Purchasing Org. US## CA## PO (global) GL## DE##
Purchasing Group North America N## PGr Europe N##

AU## Asia AS##

Dallas

Miami

S. Diego

Toronto

Heidelb. Hamburg

DL##

MI##

SD##

TO##

HD##

HH##

Perth

PE##

CC US## Client GBI

CA##

CC DE##

AU##

SAP Enterprise Structure Example

BI es A nA
AN##
SO South

icy cle s

Div isio

SO West

SO West

SO North

SO North

SO North

UW##
SO East

CW##
SO East

DN##
SO South

GN##
SO South

UE##

CE##

DS##

GS##

AS##

CC US##

CC CA##

CC DE##

CC GB##

CC AU##

Credit Control Area (global) GL## Client GBI

D iv isio

Distribution Channel Internet IN

nB

cce

Distribution Channel Wholesale WH

sso ri

Sales

and Distribution

Key Concepts in SAP

Data

Long term data that represent entities of:

Procurement Vendor Material Info records, source list Fulfillment (Sales & Distribution) Customer Material Conditions (pricing, output) Production Bills of material Work centers Product routings

Type: Master data

Key Concepts in SAP

Types

of Data: Transaction data

Data generated during executing process (steps) combining:

Organizational levels Master data Situational data (who, what, when, and where)

Example: sales order

Organizational levels: customer, company code, sales area Master data: customer master, material master Situational data: date, time, person, quantities

Key Concepts in SAP

The Document concept
An electronic record of transactions Each transaction creates document(s)

Document types
Financial accounting documents (FI) Management accounting documents (CO) Material documents (goods movement) Others

SAP R/3 Document Principle

Each

business transaction that writes data to the database creates a uniquely numbered electronic document Each document contains information such as
Responsible person Date and time of the transaction Commercial content

Once

created, a document can not be deleted from the database

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Key Concepts in SAP

The
G b lB y lo a ic cle In o o te c rp ra d
. O o n r B d N C n e lv . D lla a s , T x s , ea P o e + . hn: . . Fx a: + . . .

Document Concept: Transaction document

P R HS U C AE
P rch se O e N m e u a rd r u b r:

ODR R E

T E H

P R H S O DR U C AE R E

N M E M S A PE R O U BR UT P A

NA L R L T D L EAE

C R E P N E C , S IP ORS O DNE H

PIN PA R , A D G PE S N

IN O E V IC S

T : O

S IP T H

O :

O m ic P te tiv G a ly p ro c e e r u m B u v rd S m it o le a A n tla ta , G , A

G I S n D g D trib tio C n r B a ie o is u n e te S e rS e p a tre t S nD g , a ie o + - - -

Header
Po t in Pa m n T rm y e t e s

Pu a O e # rch se rd r

P.O D T . AE

D live D te e ry a

S ip e h pd

V IA

F .B .O .

J ly , u

J ly , u

G ud ro n

Ds a n e tin tio

Nt e

Q a tity un

M te l # a ria

M te l D scrip n a ria e tio

U it T e n yp

U it P n rice

Ite m

T ta o l

KA PD EA PD OM H T

Ke Pd ne as E o Pd lb w a s O -r a ff od H lm ts e e

Ec ah Ec ah Ec ah

. . .

, . , . , .

Line items

S B OA UT T L S L ST X AE A S I P N &H N L G HP I G A D IN OHR TE O DR RE T TL OA

$ , . Ee p x mt I c dd n lu e N /A $ , .

A th riz d b u o e y

: _________________________ _________________________ P r h s gM n g r u c a in a a e

D te a

:_ _ _ _ _ _ _ _ _ _ __________

Key Concepts in SAP

The

Document Concept: Material Document

PEN, Inc. System Configuration Introduction

EGN 5620 Enterprise Systems Configuration Fall, 2012

Learning by Creating a Model Business

Understanding

business processes and their integrative nature Understanding SAP organizational structures Combining business processes and SAP organizational structure (i.e., configuration) Test the newly configured system View system outputs - statistics, reports, and graphics
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Pen Inc.
Start-up

business Initially buys and re-sells different lines of promotion pens Sells to both wholesale and retail procure and distribute Later acquires a production facility to manufacture its own product produce and distribute
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company in the promotional pen

Enterprise Structure
Credit Control Area Chart of Accounts Purchasing Organization Purchasing Group Shipping Point Client (600) Company
Code (C_ _ _)

Fiscal Year Variant Controlling Area

Plant (P_ _ _)
SL10 SL20

Sales Organization Distribution Channel

Division

Sales Area

Company configuration
Pen Inc. _ _ _US manufacturing Company Facilities:
Vermillion SD, US

One manufacturing plant with warehouse in Vermillion (Plant) Work Center Storage Location
10 for Trading and finished goods 20 for Quality 30 for Raw materials Shipping point

Sales Organization Purchase Organization

The company to be configured

Cost

Center Standard Hierarchy

ADMIN_

_ _ (Cost Center Group) Acct-Finance Administration Purchasing Information Tech Sales _ _ _ (Cost Center Group) Sales Marketing Distribution-Production Cost Center _ _ _ (Cost Center Group) Warehouse Production

Pen Inc. : The company

Products

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

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

Pen Inc. : The company

Customers

Pen Inc. : The company

Suppliers

Pen Inc.: Key Processes

Procurement (buy) Fulfillment (sell) Production (make) Material planning (plan) Financial Accounting (track) Management Accounting (track) Inventory and Warehouse Management (store) Enterprise Asset Management (maintain) Customer Service (service) HCM (people)

Pen Inc. : The company

Information

system requirement

The IS of the Pen, Inc. will integrate and share all services for all business functions in the Vermillion Office Centralize all ERP functions Achieve the primary business objectives:
Reduce Costs Deliver Best-in-Class Technology to all divisions

Exercises: due date 9/17/2012

65. Initialize 66. Maintain

Fiscal Period for Company Code Plant Parameters for Material Management 67. Activate Materials Requirements Planning 68. Define Attribute for Material Types 71. Define Posting Periods Variant 72. Open and Close Posting Periods 73. Assign Posting Periods Variant to Company Code

Exercises: due date 9/17/2012

Create Tolerance Groups for Account Postings 75. Setup Payment Program 76. Create Tolerance Groups for Accounts Receivable and Accounts Payable 77. Create Financial Accounting (FI) Document Numbers 78. Review Document Types (Only Watch, and dont make any changes) 79. Post Initial Cash Investment by Owners 80. Post Purchase of Operating Supplies 81. Display and Review General Ledger Account Balances and Individual Line Items (Only Watch, and dont make any changes)
74.