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SAP HCM Overview

Introduction to SAP

29 Sep 2010

2010 Wipro Ltd - Confidential

 Introduction to SAP

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 Welcome to SAP Overview

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 What we learn from this session?

What is ERP? Why is it required? How

did it all start?
What is SAP?
Basics of SAP R/3
Introduction to SAP HCM

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 ERP and its Evolution

Enterprise Resource Planning

Facilitates planning of resources at the enterprise-level

Facilitates enterprise-wide integration of information

systems, covering all functional areas

Performs core corporate activities efficiently thereby

leading to reduction in costs, faster business processes and
better customer service

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 ERP and its Evolution

Materials Requirement Planning (MRP 1970s)

Manufacturing Resource Planning (MRPII

1980s)

Enterprise Resource Planning

[MRP-II + New Technologies] (ERP 1990s)

Beyond ERP - SCM, CRM, SRM, etc (2005

onwards)

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 SAP A Brief

Started in 1972 by five ex-IBM engineers

Headquartered in Waldorf, Germany

Today, it has a commanding 75% of ERP market world-wide

With a turnover of over $ 20 billion, it is the third-largest

independent software vendor in the world

No. of Customers: 41,200

No. of Users: > 12 million
No. of Partners: > 1500

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 SAP

SAP stands for:

Systems (Hardware, Operating Systems, Database,

Networking)
Applications (Logistics, Accounting, etc)

Products (ABAP S/w code)

in Data Processing

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 Prior to ERP Information Islands

Quality
Finance
Human Resources
Sales

Material management

Production
Disadvantages:
Duplication of work
Information is scattered, difficult to obtain at the right time, and usually not
accurate
Management control is very difficult
More working capital requirements leading to higher costs

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 Post ERP Implementation Integrated
Information

Advantages:
Duplication of work is eliminated as data entered once can be re-used elsewhere
Information is available at the right time, at one place, and generally accurate
Better Management control
Lower costs through less working capital requirements

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 What does R/3 mean?

SAP R/3 is the former name of the ERP software produced by

SAP

Its new name is SAP ECC (ERP Central Component)

R Real Time (Immediate updating of data)

3 Three-tier System Architecture

Three-tier System Architecture

Presentation Server (User Interface)
Application Server (Business Logic)
Database Server (Data Storage)

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 R/3 Client Server Configuration

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 Characteristics of SAP R/3

SAP can be tailored for

SD FI both large and small
Integrated and Sales & Financial
Distribution Accounting organisations
Complete MM CO
Materials
Solutions Controlling
PP Mgmt. AM
Production Fixed Assets
Planning Mgmt.

Open QM
Quality
SAP R/3 PS
Project Multi-Industry
Systems Manag System
e-ment PM WF
Plant Main- Workflow
tenanceHR IS
Human Industry
Resources Solutions

Multi-
National

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 Characteristics of SAP R/3

SAP R/3 is arranged into distinct functional modules,

covering the typical functions performed in an organization

The most widely used modules are Financial Accounting

and Controlling (FICO), Human Resources (HR), Materials
Management (MM), Sales & Distribution (SD), and
Production Planning (PP).

In all there are about 20 modules

Each module handles specific business tasks on its own,

but is also integrated with other modules
Ex: A Sale Invoice posted in SD will also appear in A/R in FI

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 SAP R/3 Industry Solutions

To meet the specialized requirements of certain industries,

SAP has recently come out with Industry Solutions for
industries such as Retail, Utilities, Banking, etc

Each Industry Solution incorporates additional

functionalities and changes made to standard SAP R/3 as
per the demands of that Industry

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 SAP R/3 Industry Solutions

SAP High Tech & SAP Retail SAP Insurance

Electronics

SAP Consumer SAP Automotive SAP Banking

Products
SAP Utilities
SAP Chemicals

SAP Healthcare
SAP Pharmaceuticals
SAP Telecommunication
SAP Oil & Gas
SAP Aerospace & Defense
SAP Engineering &
Construction

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 SAP R/3 current version

The latest version of SAP R/3 is ECC 6.0

(ECC refers to Enterprise Central Component)

This version was released in 2005, and has been extremely

successful in the SAP market place

Most new implementations involving SAP R/3 use ECC 6.0

The most important feature of ECC 6.0 is the concept of

New General Ledger and Profit Centre

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 SAP HCM Fundamentals

SAP is run through transactions

A transaction can be run by drilling down through the Menu
Paths or the corresponding shortcuts
The shortcuts are termed as Transaction Codes in SAP

Ex:
To display employee data you can go through Human
Resources > Personnel Administration > Master Data >
Display
Alternatively you can type PA30 in the transaction box to
execute the same transaction

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 HR Structures

Personnel Administration contains of the following structures

Enterprise Structure
Personnel Structure
Organizational Structure
Pay Scale Structure (Will be explained in Payroll)
Wage Type Structure (Will be explained in Payroll)

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 Enterprise Structure

Contains of
Client
Company Code
Personnel Area
Personnel Subarea

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 Diagrammatic representation of Enterprise
Structure
Overview: SAP Enterprise Structure

Client

Company code Company code Company code

Personnel area Personnel area Personnel

Produktionarea

Personnel Personnel Personnel Personnel

subarea subarea subarea subarea
R

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 Client

An independent, legal and self-contained organizational unit of

the system with separate master records and its own set of
tables in an R/3 System. It is represented by a three
character alphanumeric code.
Ex:
100 productive client
200 testing client
300 training client

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 Company Code

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 Personnel Area

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 Personnel Subarea

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 Personnel Structure

The Personnel Structure consists of

Employee Group and
Employee Subgroup

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 Employee Group

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 Employee Subgroup

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 Organizational Structure

Organizational Structure contains

Organizational Unit (O)
Position (S)
Person (P)
Job (C) and
Cost Center (K)
Work Center (A) and
Task (T)

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 Ready!

Welcome to SAP HCM!!

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 Think about it!

Whatever the best technology that is used, its Success

depends on the people who will use it.

The make and break of the system depends on the people

who use the system !!!

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 Thank You

Veera Sasidhar
Jangam
SAP HCM Consultant

veera.sashidhar@bpc.
bt

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