Finance and Controlling Day 1

Introduction to SAP

Business without ERP

PP contacts
Purchasing for
raw material

Customers

Purchasing

Customer
Calls to
place order
for a Car

Sales
office/Inventory
contacts PP

Production
Planning

3
Sales office
contacts
Inventory

Sales

Inventory

-3-

Business without ERP (Contd..)

Lets add some more Business Processes

-4-

Business without ERP (Contd..)

Where is my
car

Customers

What is this
confusion
What to
manufactur
e??

Whom to
contact for
status?

Production
Planning
What is
Cost and
profit

Sales

Shop floor
Finance

Purchasing
Vendors
Inventory

-5-

Lets Deliver the end product to customer..

I did not order
for a
TRUCK!!!!

Dear Sir,
Your Order

Sales

-6-

Business without ERP (Contd..)

I AM NOT TAKING
DELIVERY AND WILL
NEVER DEAL WITH YOU!

We are
SORRY Sir

Sales

-7-

Overall Picture

Vendors

Purchasing

Sales

Customers

A/R

General
Ledger

A/P

Production
Planning
Inventory

-8-

Shop Floor
Execution

Why Enterprise Architecture

Why Enterprise Architecture ?

Numerous disparate information systems
Integrating the data becomes costly
Time
Money
Resources

Inconsistencies and duplication of data

Lack of timely information
Required: Central enterprise definitions
Required: Centrally controlled business change

-9-

Enterprise Structure Integrating Business

Marketing

FA

HR

Partner
Systems

Treasury
GL

Shop
Floor

AP
Purchasing

Sales

Mfg.

Payroll

PP

AR
Plants

-10-

-11-

Enterprise Architecture - Benefits

Eliminates the duplication, discontinuity and redundancy in data

Increases the return on investment made on IT implementations
Delivers quality information designed for the Enterprise as a whole
Faster and cheaper
Delivers quality information to produce a quality enterprise
Satisfying Partners/Customers
Reducing required manpower

ERP
-12-

Quiz Time

What is the full form of SAP?

When was SAP founded?

-13-

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

When was SAP founded?

Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira
Renamed in 1977
Before 1977 : Systems Analysis and Program Development (German :
Systemanalyse und Programmentwicklung)

-14-

History of SAP

Systems Applications and Products in Data Processing

German : Systeme, Anwendungen, Produkte in der Datenverarbeitung

Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira

Renamed in 1977
Before 1977 : Systems Analysis and Program Development (German :
Systemanalyse und Programmentwicklung)

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

SAP system comprises of a number of fully integrated modules, which covers

virtually every aspect of the business

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

-15-

Steps to Strategic ERP

Enterprise Resource Planning
is evolved through these stages
Enterprise Resource
Planning

Collaborative
Business

Inter-Enterprise
Co-operation

Create
Strategic
Value
Efficiency and
Control

Total
Company
Value
Automation

80s R/2

90s R/3

Today mySAP ERP

Evolution of ERP

-16-

Evolution of SAP

-18-

Quiz Time

SAP R/3 client server architecture evolved in

year___________.
Which is the latest SAP product?
mySAP ERP
mySAP Business Suite
mySAP.com with one step business

-19-

Quiz Time

SAP R/3 client server architecture evolved in year

1992
Which is the latest SAP product?
mySAP ERP
mySAP Business Suite
mySAP.com with one step business

-20-

SAP R/3 Architecture

3 Tier Client / Server Architecture

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

principle
Presentation Server
Application Server
Database Server

Dedicated Servers are linked by Communication Networks

Perform tasks without sacrificing data integration and processes

within the system, as a whole

-22-

SAP R/3 System Architecture (Contd...2)

-23-

Overview of Presentation & Database Servers

The Presentation Server

GUI only
At workstation
Very light
Sends requests to application server
Obtains screens from application server and displays

The Database Server

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

-24-

SAP R/3 Conceptual Areas

SAP Conceptual Areas

Application Area
(Initiate and execute
SAP transactions)
(Functional)

Basis Area
(The technical
administration of
the system)
(Authorizations/Ids/etc)

-25-

Development Area
(1. A developers
workbench
2. Create & Test
ABAP/4 programs)
(Technical)

Systems in R3
Transport Request

Development
System
(DC)

Quality
System
(QC)

Client
110
100 etc..

-26-

Production
System
(IC)

Clients in R/3

The Logon Client

3 digit number ( 000 to 999)
Helps maintain independent sets of data within the same R/3 system

Client mechanism and handling

-27-

Clients in R/3

-28-

R/3 Technology Environment

Hardware

UNIX Systems
Bull
IBM
Digital
SNI
HP
SUN

Operating
AIX
Reliant
systems Digital UNIX UNIX (SINIX)
HP-UX

Databases

Dialog
SAPGUI
Languages

SOLARIS

ADABAS D
DB2 for AIX
INFORMIX-OnLine
ORACLE

Bull/Zenith
Compaq
Data General
...

Digital
NCR
HP (Intel) Sequent
IBM (Intel) SNI

Windows NT

ADABAS D
MS SQL Server
INFORMIX-OnLine
ORACLE

IBM
AS/400

IBM
S/390

OS/400

OS/390

DB2 for
OS/400

DB2 for
OS/390

Windows 3.1, Windows 95, Windows NT,

OSF/Motif *, OS/2 Presentation Manager (PM),
Macintosh *, Java
ABAP/4, C, C++, HTML, Java

Platforms and Databases supported by R/3

Operating Systems

Supported Hardware

Supported Front ends

Supported Databases

AIX SINIX

IBM SNI SUN

Win 3.1/ 95 / NT

DB2 for AIX

SOLARIS HP-UX

Digital HP

OSF / Motif

Informix Online

Digital Unix

Bull

OS/2
Macintosh

Oracle 7.1
ADABAS D

Windows NT

AT&T Compaq
Bull / Zenith
HP (Intel) SNI
IBM (Intel)
Digital (Intel)
Data-General

Win 3.1 / 95 / NT
OSF / Motif
OS/2
Macintosh

Oracle 7.1
SQL Server 6.0
ADABAS D

OS/400

AS/400

Win 95 OS/2

DB2/400

-30-

Client Server Benefit

-31-

Quiz Time
Match the following
Presentation Server

Windows

Application Server

Basis

3 Digit number

Quality System

Client Testing/ UAT

GUI

Unix Systems

Oracle

Authorizations

Client
Business
Administration

-32-

Quiz Time
Match the following
Presentation Server

GUI

Application Server

Business
Administration

3 Digit number

Client

Client Testing/ UAT

Quality System (QC)

Unix Systems

Windows

Authorizations

Basis

-33-

SAP R/3 Modules

SAP Modules

SD Sales and Distribution

FI Financial Accounting

SD

MM Materials
Management

FI

MM

PP Production Planning

CO Controlling

CO

PP

AM

SAP R/3

HR

QM
QM Quality Management

AM Asset Management

WF

PM

PM Plant Maintenance

WM

PS

WM Warehouse
Management

HR Human Resources
WF Workflow

PS Project System

-35-

SAP R/3 Application Modules

Financial accounting (FI)

Controlling (CO)

Asset management (AM)

Materials management (MM)

Sales and Distribution (SD)

Production Planning (PP)

Quality management (QM)

Plant maintenance (PM) & Customer Service (CS)

Project system (PS)

Human resources (HR)

Workflow (WF)

-36-

Module Functionalities

MM
Material Procurement
Inventory Management
Batch Management
Goods inspection
Invoice Verification

PP
BOM/Work Center/Routing
MRP
Capacity Evaluations
Production Orders
QM in production

FI
General Ledger
Accounts Payable
Accounts receivable
Cash management

SD
Inquiry processing
Sales Order Processing
Delivery Processing
Billing

CO
Cost Center Accounting
Product Costing
Order Contribution Analysis

-37-

Quiz Time
Match the following
Financial Accounting

Inventory Management

Controlling

Shop Floor Control

Materials Management

Financial Reporting

Sales & Distribution

Profit center Accounting

Production Planning

Billing

Project System

Activity monitoring
Asset Management

-38-

Quiz Time
Match the following
Financial Accounting

Asset Management
& Financial Reporting

Controlling

Profit center Accounting

Materials Management

Inventory Management

Sales & Distribution

Billing

Production Planning

Shop Floor Control

Project System

Activity monitoring

-39-

Module FI Financial Accounting

External reporting of

General ledger

Accounts receivable/payable

Sub-ledger accounts

with a user-defined Chart of Accounts

Key elements

General ledger

Accounts payable

Accounts receivable

Asset Management

Special Purpose Ledger (FI-SL)

Legal consolidation

Accounting Information System

-40-

Financial Accounting

Bank

Foreign exchange
management
Finance information
system

Management
of secureties
and loans

Cash management
and forecast

Accounts
payable

Bank
accounts
Payables

Accounts
receivable

Receivables

General Ledger
Invoice
verification

Extended General Ledger

Consolidation

-41-

Credit
management

Module CO Controlling

Represents the flow of cost and revenue

Instrument for organizational decisions

Key elements of the CO application module include :

Cost center accounting

Product cost Planning

Product Costing

Profitability analysis

Profit center accounting

Activity based costing

Enterprise controlling

-42-

Module SD Sales and Distribution

Optimize tasks/activities in

Sales

Delivery

Billing

Key elements of the SD application module include :

Pre-sales support

Inquiry processing

Quotation processing

Sales order processing

Delivery processing

Warehouse management

Billing

Credit Management

Sales Information system

-43-

Sales Support

Sales

Sales
activity
Inquiry
Quotation

USD

Delivery
free of
charge

Subsequent
delivery free
of charge

Sales
order

Contract

Returns

Scheduling
agreement

Shipping
Delivery

Billing
Debit memo

Invoice

Credit memo

F I N AN C I AL AC C O U N T I N G

-44-

M AT E R I AL S M AN AG E M E N T

SALE S INF O RMAT I ON SYST E M

Sales and Distribution Processing

Module MM Materials Management

Supports

Procurement

Inventory

Key elements

Materials procurement (purchasing)

Inventory management

Invoice verification

Material valuation

Vendor evaluation

External Services management

Purchasing Information System (PurchIS)

Inventory Controlling Information system

-45-

Materials Management
BASIC DATA

PURCHASING

Material
Special stock
Batch

Purchase requisition

Purchasing
info record
Service
specifications
Workflow
Optical archive
Texts
Mail
Communication
Classification
Documents
Conditions

MRP
Direct requisition
Release procedures

Purchasing information system

Vendor evaluation

Vendor/one-time
customer

RFQ/Quotation

Material/service
Price comparisons
Price comparison list

Purchasing

Purchase orders
Outline agreements
Scheduling agreements

INVENTORY MANAGEMENT

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

INVOICE VERIFICATION

Check and post

Price update

-46-

SD
PP

Third-party
order
Requirements

Service/
Spare Parts
Service /
Inspection
parts lot
QM spare

PM

FI
AM
CO
PS

G/L accounts
Cash management
and forecast
Fixed assets
Cost center /
Budget
Project

Module PP Production Planning

To plan and control the manufacturing activities
Key elements

Bill of Material (BOM)

Routings

Work Centers

Sales and Operations planning (SOP)

Master Production Scheduling (MPS) Capacity Planning

Materials Requirement Planning (MRP)

Shop Floor Control (SFC)

Production orders

Product costing, activity-based costing

Work in process

Kanban

Production planning for process industries (PP-PI)

Repetitive Manufacturing

-47-

Production Planning
SD
PP

Customers

Sales and Operations

Planning
Demand management /
MPS
Material requirements
planning

SD
Sales
Shipping
Billing

Vendors

FI

Financial
accounting

Detailed Schedeling and

Planning
Capacity planning
Shop floor control
Costing
Information system

MM
SD
Purchasing
Warehouse
Invoice
verification

CO

Cost
accounting

-48-

HR

Human
resources

PS
SD

Project
Networks

PM
SD
Maintenance
Repairs
Plant
maintenance
QM
SD
Inbound Raw
Material
Finished Goods

Module QM Quality Management

Supports

Quality planning

Inspection

Control for manufacturing

Costing

Procurement

Key elements

Quality planning

Quality during procurement, production, distribution

Quality Management Information - Quality inspection

Information System (QMIS)

-49-

Module PS Project System & HR Human Resource

PS Project Systems

Support planning, control, & monitoring of long term highly complex projects
with defined goals

Key elements
Project WBS Plan
Budget & Monitor
Network Management
Activity monitoring, Material Planning, Milestones, Capacities Scheduling
Project Management Information System

HR Human Resource

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

-50-

Quiz Time

Is Industry solutions an SAP module like FI/CO/MM etc?

True/False
PP Supports procurement and Inventory
FI Handles project budgeting and monitoring
WF management is a support tool for all modules

-52-

Quiz Time

Is SAP - Industry solutions a module like FI/CO/MM etc?

NO

True/False
PP Supports procurement and Inventory
(False MM Supports these functions)
FI Handles project budgeting and monitoring
(False PS handles these functions)
WF management is a support tool for all modules
(True)

-53-

IS Industry Solutions

Combines SAP R/3 application modules to additional industryspecific functionality

Result of the research by industry Centers expertise (ICOE)

-54-

mySAP Industry Solutions (Some Examples)

SAP for Aerospace & Defense

SAP for Healthcare

SAP for Media

SAP for Public Sector

SAP for Automotive

SAP for High Tech

SAP for Mill Products

SAP for Retail

SAP for Banking

SAP for Mining

SAP for Higher Education &

Research

SAP for Chemicals

SAP for Service Providers

SAP for Oil & Gas

SAP for Industrial Machinery &

Components

SAP for Consumer Products

SAP for Telecommunications

SAP for Pharmaceuticals

SAP for Insurance

SAP for Engineering, Construction &

Operations

SAP for Utilities

SAP for Professional Services

-55-

SAP Product Overview

Evolution of SAP products

mySAP ERP

R/3

R/3
Enterprise

Solutions
mySAP CRM
mySAP SCM
mySAP HR
mySAP PLM
..

mySAP
Business
Suite

SAP NetWeaver

Web AS

Easing Upgrade Plans & Providing Transition Options

Bringing benefits of SAP Netweaver into installed base
New Customers have more entry options & receive world class ERP

-57-

Evolution of SAP products

SAP R/3

my SAP
Solutions

-58-

my SAP
Business
Suite

SAP R/3

Financials
HR
Corporate Services

Operations

-59-

mySAP Solutions

mySAP SCM

mySAP PLM

mySAP Financials

mySAP CRM

mySAP SRM

mySAP HR
Corporate Services
Operations

SAP R/3

Adaptive Business Solutions

-60-

my SAP Business Suite

mySAP PLM

mySAP SCM

mySAP
SRM

mySAP
CRM

mySAP Financials
mySAP HR
Corporate Services
Operations

SAP NetWeaver
Application Platform ( Web As)
People Integration (Portal)
Information Integration( BI,MDM)
Process Integration (XI)

-61-

mySAP Solutions & Netweaver

mySAP CRM

mySAP SRM

mySAP SCM

mySAP PLM

SAP Netweaver

-62-

My SAP Customer Relationship

Management (CRM)

CRM Solution Map

-64-

CRM Holistic view

-65-

Where does a CRM solution fit?

Who
What

Marketing

Sales

Use a CRM
Solution to
complete
the Cycle

Service

Service

Executives

Engage

Fulfill
Transact

Workplace
Which way

Internet

Mobile

Telephony

How

Operational

Analytical

Collaborative

-66-

CRM Component Landscape

mySAP.com
Portal Users

OLTP
R/3 System

CRM System

BW
As one big
logical box
Internet

Telephone
Callers

Mobile Clients

-67-

APO

CRM Internet Sales

Enterprise

B2C Scenario

Consumer

BBP Scenario

Business Partner

B2R Scenario

Reseller

Internetselling

-68-

Service module within CRM

Service Planning

Proactively engage customers with the correct resources at the most

beneficial times

Customer Care

Provide customer with 24/7 accessibility from all communication channels

with precise and consistent informationon

Installed Base Management

Maintain an accurate, up-to-date record of a customers products and

installations to facilitate service and anticipate customer requirements

-69-

Mobile Sales module within CRM

Suite of tools tailored to the needs of the

offline mobile sales force
Provides an integrated view of customers, prospects, products,
services, competitors, activities, opportunities, quotations,
orders, etc.
Heavy cross-referencing for easy navigation

Facilitates the sales process by

Effectively managing customers and prospects
Providing appropriate customer, product and competitive information
Determining product and pricing configurations
Managing sales projects across sales teams
Generating presentation and proposals

-70-

Quiz Time

What is the latest version of mySAP CRM

Name the three service modules with in CRM

-71-

Quiz Time

What is the latest version of mySAP CRM

(Version 5.0)
Name three service modules with in CRM
Service Planning
Customer care
Installed base management

-72-

My SAP Supplier Relationship

Management (SRM)

SRM Solution Map

-74-

Key Components of mySAP SRM

mySAP SRM eProcurement

mySAP SCE
Supplier Collaboration Engine

Enterprise Buyer Prof 3.5

Supplier self services 1.0

Business Inf. Whouse 3.0B

Bidding Engine 3.5

Requisite Bugs Eye 3.5

User Management 3.0

Requisite eMerge 3.5

Enterprise Portal 5.0

Exchange Infrastructure

Content Integrator

-75-

Key Components of mySAP SRM

Strategic Sourcing
Sourcing analytics: Helps provide analytics based on supplier location, line of
business
Supplier evaluation: Helps you evaluate the supplier base within the organization
systems and external market places to identify and select supplier to ensure reliable &
uninterrupted supply
Request for quotation and auctions: Provides electronic auctioning and bidding tools
to compress sourcing cycle times
Contract management: Helps create and manage value and quantity contracts

Operational Procurement
Self-service procurement: Enables decentralizing procurement process within
organization, without diluting the control
Plan-driven procurement: Enables automatic purchase order generation for stock
materials across the integrated supply chain
Services procurement: Enables service procurement process to be managed

online

-76-

Key Components of mySAP SRM.Contd.

Supplier Enablement
Supplier portal: Provides portal features for suppliers to manage their product data
and orders
Supplier connectivity: Provides capability to connect multiple suppliers through XM_based document exchange

Content Management
Content consolidation: Provides capability to consolidate product and vendor
information
Catalog content management: Provides capability to manage OCI compatible catalog
with tools for data import, data edit and a search engine

-77-

Quiz Time

Name any one key component of mySAP SRM Solution map

-78-

Quiz Time

Name any one key component of mySAP SRM Solution map

Following are the three key components of mySAP SRM

Strategic Purchasing & Sourcing
Operational Procurement
Supplier Collaboration

-79-

My SAP Supply Chain Management

(SCM)

SCM Solution Map

-81-

mySAP SCM
SAP APO (Advanced Planning and Optimizing)
Flexible and Adaptive Planning, Integration with CRM, SRM and PLM

SAP ICH (inventory Collaboration Hub)

Collaboration with Suppliers

SAP EM (Event Management)

Monitor, alert and resolve exceptions

-82-

Typical SAP SCM Solution-scape

SAP R/3
Dominant source of
Master Data in SAP
SCM, destination of
transaction data like
planning outputs or
Availability Checks for
Execution systems

SAP SCM
Transaction Data
Core Interface

Planning system where

selective Master data
maintained and sourced
from R/3

Master Data
Module includea
Demand Planning, SNP
& Deployment, PPDS,
GATP, TPVS and TLB

Core interface
SAP CRM,
SAP SRM
and
SAP PLM

Legacy
Systems

-83-

BAPI

Planning Outputs
include Forecasts, SNP
or PPDS Planned
Orders, Stock
Transfers and
Production Orders

One-on-One comparison
i2 Technologies
(Tradematrix SCM)

SAP SCM

ORACLE APS

Manugistics
(Networks SCM)

Forecasting

Demand
Planner/Demand
Management

Demand Planner

Oracle Demand
Planner

Demand
Management

ATP and Fulfillment

Demand Fulfillment

SAP GATP (Global

ATP)

Oracle GOP (Global

Order Promising)

Fulfillment
Management

Material and
Resource planning

Supply Chain
Planning

SAP SNP (Supply

Network Planning)

Oracle ASCP
(Advanced SCP)

Master Planning

Manufacturing
Planning

Factory Planning

PP/DS (Production
Planning and
Detailed Scheduling)

Oracle Manufacturing
Scheduling

Manufacturing
Planning and
Scheduling

Transportation

TMS (Transportation
Management
Solutions)

TP/VS
(Transportation
Planning/Vehicle
Scheduling)

Oracle
Transportation

Logistics
Management
Solutions

-84-

mySAP Product Life Cycle Management (PLM)

PLM Solution Map

-86-

SAP Netweaver

A Roadmap for Web Services

-88-

Services are changing SAPs Product portfolio

-89-

From Basis to WAS

-90-

Integration is the Key Challenge

Business Drivers
Extended Value Network

Document Mgmt
Call Center

Increased Market Dynamics

Market
Analysis

Integration costs are high

Long integration projects

SCM

IT environments become increasingly rigid

Lots of heterogeneous systems

ERP
E-sales

Pressure on IT increases
Must leverage existing investments

Trading
E-procurement
Technical
systems

Must support new business processes

quicker
Must reduce total cost of ownership (TCO)

PLM

-91-

How to Address the Integration Challenge

Reduce Complexity
Minimize the number of connections
through hubs
Document Mgmt
Call Center

Use only one platform to integrate all

people, information, and systems

Market
Analysis

Reduce Cost Integration

SCM
ERP

Deliver .NET and J2EE interoperability

Deliver adaptors for ISV products
Deliver products, not projects

E-sales

Increase company
performance
Increase ease of use, scalability and
adaptability

Trading

E-procurement

Technical
systems
PLM

-92-

Increase business process flexibility

by using an Enterprise Services
Architecture

The fundamental Web services standards are supported by the Web

Application Server (Web AS), which is the basis for all other
NetWeaver components

-93-

SAP NetWeaver
The integration and application platform for lower TCO

Unifies and aligns people,

information and business
processes
Integrates across technologies
and organizational boundaries
A safe choice with full .NET and
J2EE interoperability

The Business foundation for

SAP and partners
Powers business-ready solutions
that reduce custom integration
Its Enterprise Services
Architecture increases business
process flexibility

-94-

SAP NetWeaver in Detail (SAP Internal View)

Product components and killer features
SAP Mobile Infrastructure
Tight coupling and alignment with SAP business solutions

SAP NetWeaver

SAP Enterprise Portal

Business packages

People Integration

SAP Business information Warehouse

Business content
Tight integration to Sap
Open architecture (Crystal, Accential )

Master Data Management

Coming in 2003

SAP Exchange Infrastructure

Proxy generation and mapping tools
Integration directory
SAPs ability to execute

Multi-channel Access
Portal

Information Integration
Bus. Intelligence

Knowledge Mgmt

Master Data Management

Process Integration
Integration
Broker

Business Process
Management

Application Platform
J2EE

SAP Web Application Server

Collaboration

ABAP

Multi-channel Access

Proven, scalable, comprehensive toolsets

Leverage existing infrastructure/skillets

-95-

Life cycle Management

Composite Application Framework

Collaboration

SAP Solutions Powered by SAP NetWeaver

Business content makes the business foundation

-96-

SAP Organizational units

Business Scenarios Main Elements

-98-

Organizational Structure in SAP

Production Planning

Financial Accounting
Company
Code

Plant

Controlling

Human Resources

Client

Controlling
Area

Personnel
Area

Sales and Distribution

Sales
Area

Materials Management
Purchasing
Organization

-99-

Company Code

-100-

Organizational Structure - Levels

-101-

Organizational Structure Business Functions

-102-

Enterprise Structure - Technology

-103-

SAP Organizational Structure: Cardinality

Client
Chart of
Accounts
Purchasing
Group

Purchasing
Org.

Shipping
Point

Loading
Point

Company
Code

Plant

Storage
Location

Sales
Organ.

Distribution
Channel

Division

-104-

Sales
Office

Sales
Group

-105-

Quiz Time

Which is not a part of SAP Business Scenario main Elements

Master Data
Organizational Unit
Transaction
Document
All the above

Answer True or False

One Chart of accounts can be assigned to many Company Codes
A plant can be assigned to many Company codes

-106-

Quiz Time

Which is not a part of SAP Business Scenario main Elements

Master Data
Organizational Unit
Transaction
Document
All the above

Answer True or False

One Chart of accounts can be assigned to many Company Codes
(True)
A plant can be assigned to many Company codes
(False)

-107-

Organizational Elements in FICO

Organizational Units in R/3 FI

-109-

Overview: Organizational Elements in Accounting

-110-

Organizational Elements in Logistics

Overview: Organizational Elements in Logistics

-112-

-113-

-114-

Quiz Time

State True/False
Company is obligatory in an organization structure

Fill in the blank

Unit responsible for procurement of materials/services and negotiating
with vendors is called ____________.

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Quiz Time

State True/False
Company is obligatory in an organization structure
(False Company code is obligatory)

Fill in the blank

Unit responsible for procurement of materials/services and negotiating
with vendors is called Purchasing Organization

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Organizational Elements in Sales

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Quiz Time
Fill in the blanks

Sales area is a combination of _____________, ________________

and _______________.

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Quiz Time
Fill in the blanks

Sales area is a combination of

Sales Organization,
Division and
Distribution Channel

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Navigation

Logging on to SAP System

Logon pad with

different systems

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Adding to favorites

Steps to add transaction to favorites

Step I: Select the transaction you want to add to
favorites
Step II: Right click on the transaction you want to
add to favorites
Step III: Select Add to favorites.

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General Settings

Global Settings (at Country level)

Variants

Calendar
Public Holidays
Holiday Calendar
Factory Calendar

Unit of Measurements

Currencies
Currency codes
Conversions (quotations)
Exchange Rate Type
Rates
Rounding rules

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The Variant Principle

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Calendar

Define Public Holidays

Define Holiday Calendar

A combination of a yearly 12-month calendar and a list of all public holidays that fall
within a calendar year.
Gives an overview of all working days and all days off for a calendar year. It can be
created to cover a validity period of several years.
Can be defined according to the country or region in which they are to be
implemented, and adapted to suit individual business requirements

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Calendar

Define Factory Calendar

Calendar in which working days are numbered sequentially.
Defined on the basis of a public holiday calendar.
Validity period of a factory calendar must be within the validity period of the
public holiday calendar.
The weekdays that are working days must also be specified in this calendar.
Examples:
Monday through Friday are working days.
Saturday, Sunday and public holidays are non-working days.

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Unit of measurement

Enables calculations with quantities and physical units.

Units of measurement are needed for internal conversions (such

as kilogram <-> gram, but also centimeter <-> inch).

The international system of units (SI) is used for this.

UOMs are held centrally in the SAP System for all applications.

Conversion factors are stored in the system with a unique

internal key.

Unit of measurement can be created according to requirements.

CAUTION: Extra care to be taken for any creation as this global

setting can affect the whole system performance

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Currencies

Legal means of payment in a country.

You can manage ledgers in two parallel currencies in addition to the

local currency

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Currency settings
Currency codes
SAP maintains about 187 currencies. If any transaction in a new
currency will happen for the organization, that currency to be
maintained
Standard quotation
Can specify direct or indirect quotation. System by default will take
direct quotes.
Conversion factors
Mention the conversion for currency to currency. For example, INR To
Yen will 1:100
Rounding rules
ensures that the amounts in this currency are always rounded to this
unit

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Exchange Rate Type

Exchange Rate Type is used for different business purposes
where multiple rates can be maintained for a pair of currencies
The following exchange rate types exist
Buying rate (G)
Bank selling rate (B)
Average rate (M)
Historical exchange rate
Key date exchange rate

Default exchange rate types can be maintained in document

types
For posting and clearing, the system uses the exchange rate
type M (average rate). This exchange rate type must be entered
in the system and you must also enter the exchange rates for
this type.

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Exchange Rate
Exchange rates in the system for the following purposes
Posting and Clearing
To translate amounts posted or cleared in foreign currency, or to
check a manually entered exchange rate during posting or clearing.
Exchange Rate Differences
To determine gains or losses from exchange rate differences.
Foreign Currency Valuation
To valuate open items in foreign currency and foreign currency
balance sheet accounts as part of the closing operations.
Valuation of Purchase Documents, Sales documents and
Commitments

Exchange rates maintained for a exchange rate type for an

effective date between two currencies

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Quiz Time

Fill in the blank

The difference between ____________ and

____________ is called spread.
SAP maintains ___________ number of currencies.

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Quiz Time

Fill in the blank

The difference between Buying rate and Selling rate is

called spread.
SAP maintains 187 number of currencies.

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Thank You!