SAP Overview workshop at

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Copyright IBM Corporation 2011

Content
SAP Overview
SAP Integration & Data Structures
Overview of SAP Applications
- Project Systems (PS)
- Production Planning (PP)
- Materials Management (MM)
- Quality Management (QM)
- Plant Maintenance (PM)
- Sales & Distribution ( SD)
- Finance (FI)
- Controlling (CO)

SAP Overview

Copyright IBM Corporation 2011

Past : Stand alone solutions

Interface between applications

Simply put, an ERP System is..

An IT based transaction processing system
Integrated information management and retrieval
Covers strategic and operational requirements of the business

Production

Finance

Projects

Materials

Sales

Procure to cash cycle Process - An example

Site Indent

Material
requirements planning

Purchase order

Invoice

Goods receipt

Accounts
Payable

What Does SAP Stand For?

Systems

Applications and
Products in Data Processing
(Or in German
Systemanalyse

Und
Programmentwicklung)

What is SAP?
Founded in 1972 by four ex-IBM executives, SAP is the recognized
leader in providing collaborative business solutions for all types of
industries and for every major market
Headquartered in Waldorf, Germany, SAP is the world's largest interenterprise software company.
Over 3,000 developers
SAP invests almost 12% of its revenue on research and development
SAP is used by more than half of the worlds top 500 companies
Largest market-share in the ERP segment - larger than three of the
closest competitors combined

Who is using SAP?

Based on the Fortune 500 companies
7 out of the top 10 companies in the world
9 of the 10 most profitable companies in the world.
7 of the top 10 companies with the biggest increases in profits
10 of the top 10 chemical companies
7 of the top 8 computer companies
7 of the top 10 petroleum companies
7 of the top 10 pharmaceutical companies

10

SAP Integration & Data

Structures

Copyright IBM Corporation 2011

Types of Data in SAP ECC 6.0

Organizational Data
-

Organization Structure (e.g. Controlling Area, Company Code, Sales

Organization, Purchasing Organization, Plant, Storage Location etc.)

Master Data
-

Static data (e.g., material, vendor, Cost Center, Customer

G/L Account, Equipment, Inspection Plan etc.)

Transaction Data (Movement Data)

-

Data created by business activities (e.g., requisitions,

Purchase Orders, G/L postings)

SAP Hierarchy Structure

FINANCIAL

Profit Centre
1000

Company
BOOT

MATERIALS MANAGEMENT
Plant
MEXT

Profit Centre
2000

Company
Profit Centre
Code
3000
BOOT

Client
Company
BT00

Sales
Organization

Company Code
BOOT

1000

10

01

Sto. Loc.
HIRB

Plant
TUXT

SALES & DISTRIBUTION

Division

Sto. Loc.
HIRA

Plant
MONT

Company
BT01

Distribution
Channel

Sto.Loc.
MAIN

2000

3000

10

10

10

02

01

01

01

02

01

Solution Scope Overview A Snapshot

MII - MANUFACTURING INTEGRATION AND INTELLIGENCE

PV Planvisage (Non-SAP)
NI Nirvana (Non-SAP)

Overview of SAP Applications

Copyright IBM Corporation 2011

SAP ECC 6.0 components

Sales &
Distribution
Materials
Management
SD
Production
Planning
MM

PP

PM

Plant
Maintenance
Human Resources

FI

HR

Controlling
Treasury

CO
FSCM

SAP
ECC
6.0

QM
Quality
Management

Financial
Accounting

PS
WF
IS

Project
Systems
Workflow
Industry Solutions

PS: Project Systems

FI

SD

Financial
Accounting

Sales &
Distribution

CO

MM

PP

Materials
Mgmt.

Product
Planning

QM

Quality
Mgmt.

ECC

Controlling

FSCM
Treasury

Client/Server PS
PM ABAP/4 WF

Plant Maintenance

Project
System

Workflow

In a projectHR
based environment
the PS
IS
Human
Industry
Resourcesthe crucial
Solutions
module plays
role of initiating the
business process right from tender stage
through execution and through sales.
Also enables effective MIS to determine
profitability
17

PS

Project Structure

18

Project Definition
Identifier, SAP Framework, Start &
Finish
Work Breakdown Structure
Hierarchy model of the Project
The lowest chunk of work that cannot
be divided further is called work
package.
Network
Sequential structure showing
activities
Activity
Component of process with duration,
start and finish date
Processed w/o interruption, incurring
costs, resources are required for
execution
Milestones

Project Definition

WBS Elements

Networks

Network Activities

SAP Organisation Structures in Project System

Controlling Area
Company Code
Business Area
Profit Center
Plant
Cost Center

Project Definition

WBS Elements

Networks

Profit Center
Business Area
Plant

Activities
Internally Processed

Externally Processed
General Cost
Service
19

PS

Plant
Work Center
Purchasing Organization
Purchasing group
Plant
Purchasing Organization
Purchasing group
Service master record

Material Components
Purchasing Organization
Purchasing group
Plant
Storage Location

Project Lifecycle Stages

Project Award /
Initiation

Direct FI JV

Sales order

postings to Project

Creation

Project structuring & planning

BOM creation
Budgeting and
Availability

Release the
project for

control activated

execution

Actual Data Entry

Project Execution and

Requirements during execution for:

Materials, Services to be procured
Materials to be manufactured

20

Profitability Segment
Period End Closing:
Costs / Revenues
settled to Prof Seg

Monitoring, Simulation
Billing During Project
Cost at

SAP

Project Closing
Final Settlement to

General costs / Misc. expenses

Revenue at Project

Project
Relevant cycle execution with
PO/GR/GI
PO/SES/SA
MRP/Production/GR/GI

PP: Production Planning

FI

SD

Financial
Accounting

Sales &
Distribution

CO

MM

PP

Materials
Mgmt.

ECC

Product
Planning

QM

Quality
Mgmt.

Controlling

TR
Treasury

Client/Server PS
PM ABAP/4 WF

Project
System

Plant Maintenance

HR

Human
Resources

Workflow

IS
Industry
Solutions

The PP application module is used to

plan and control the manufacturing
activities of a company
21

Production Planning

BOM

Yield Analytics

Work Centers
Routing

Production Analytics

Sales Operation Planning

Production Costing
Distribution Resource Planning
Interfaces

Demand Management
ATO / MTO

Long Term Planning

Production Lot Planning

Production Orders

Capacity Planning
Material Requirement Planning

Business Process for Manufactured Items

Reservation From Project

MRP run at
Manufacturing plant

Material Costs to project

Planned order for

Billing of Issued materials

production item(s)

Goods Issue
to Project
Delivery from
Project

Production
Cycle

Production Order
Creation and Release
Requirements for
Components followed
by Procurement Cycle

Goods receipt in
FG stores

Goods Issue to
Production order
Order confirmation

23

MM: Materials Management

FI

SD

Financial
Accounting

Sales &
Distribution

CO

MM

PP

Materials
Mgmt.

ECC

Product
Planning

QM

Quality
Mgmt.

Controlling

FSCM
Treasury

Client/Server PS
PM ABAP/4 WF

Project
System

Plant Maintenance

HR

Human
Resources

Workflow

IS
Industry
Solutions

The MM application module supports the

procurement and inventory functions
occurring in day-to-day business
operations
24

Material Management

Knowledge Management

Purchase Requisition
RFQ & Purchase Orders

Supplier Payments

Tendering

Supplier Collaboration

Supplier Evaluation & Blacklisting

Contract Management

Quality Inspection
Delivery Schedules

Physical Inventory Audits

Approvals & Workflows

Shelf Live & Status
Goods Movements

Warehouse Management

Service Masters
Workflows

MM Overview

MM
Material requirement
planning

External procurement

Internal procurement

Purchasing

Production

Invoice
verification

Goods
receipt

Goods
issue

Internal and external accounting

26

Inventory
management

Transfer
posting

Sales and distribution

Master data

Material
Batch
Vendor
Customer
G/L
...

Business Process for Purchased Material

Purchase
Requisition

Requirement for Material

Request For

Payment to vendor

Quotation
Material costs to Project

Invoice
verification

Goods issue
to project

Goods receipt
at project

Material
Cycle

Quotations

Vendor
Finalization

Purchase order
monitoring
27

Receiving

Release of
purchase order

Business Process for Procured External Services - II

Requirement from Service activity

Purchase
Requisition

Payment to vendor

Quotation

Invoice
verification
Service activity
costs to Project

Receiving

Service
Cycle

Service
Acceptance

Service Entry
Sheet

28

Request For

Quotations
Vendor
Finalization

Purchase order
monitoring

Release of
purchase order

QM: Quality Management

FI

SD

Financial
Accounting

Sales &
Distribution

CO

MM

PP

Materials
Mgmt.

Product
Planning

QM

Quality
Mgmt.

ECC

Controlling

FSCM
Treasury

Client/Server PS
PM ABAP/4 WF

Plant Maintenance

Project
System

Workflow

HR
IS crucial role of
The QM module
plays
the
Human
Industry
Resources
Solutions
quality controlling right from Goods
receive to production to goods issue.

29

Quality Management
QM linked to Invoice Verification

Quality Planning & Test Equipment Calibration

Quality Inspection for Incoming Material

Customer Complaints

Grading & Sample Management

Deviations & Problem Management

SQC
Statistical Process Control
In-Process Quality Inspection

QM linked to Maintenance

Batch Management

Quality Notifications

Finished Material Inspection

Shelf Live & Status

Quality Management Linked to Vendor Evaluation
Certificate Management

LIMS integration & Result Recording

Pre Delivery Inspection

PM: Plant maintenance

FI

SD

Financial
Accounting

Sales &
Distribution

CO

MM

PP

Materials
Mgmt.

ECC

Product
Planning

QM

Quality
Mgmt.

Controlling

FSCM
Treasury

Client/Server PS
PM ABAP/4 WF

Project
System

Plant Maintenance

HR

Human
Resources

Workflow

IS
Industry
Solutions

The PM module plays an important role

in maintenance of all Plant equipment's.

31

PM: Plant maintenance

Equipment History

Work Force Management

Location & Asset Mapping
Maintenance Planning & Scheduling

Early Warning System

Budgeting & Sanctions

Meter Reading & Counter Based
Tools & Documents

Mobile Device

Complaint Management

Valuation & Status Management

Warranty & AMC

Preventive / Predictive / Breakdown / Shutdown

Maintenance
Work Clearance

Contracts & Subcontracting

Spares Management

SD: Sales and Distribution

FI

SD

Sales &
Distribution

CO

MM

PP

Materials
Mgmt.

Product
Planning

QM

Quality
Mgmt.

Financial
Accounting

ECC

Controlling

FSCM
Treasury

Client/Server PS
PM ABAP/4 WF

Project
System

Plant Maintenance

HR

Human
Resources

Workflow

IS
Industry
Solutions

The SD application module helps to

optimize all the tasks and activities
carried out in sales, delivery, and billing
33

Sales & Distribution

Sales Analytics

Customer Masters
Enquiry

Internet Sales
Billing

Quotation

Transportation

Sales Order Management

EDI Interface

ATP
Pricing & Commisions

Picking Packing - Shipping

Scheduling Agreements / Contracts

Configurable Orders
Batch Management
Trading Goods

Credit management

SD

SD Overview
Inquiry

Quotation

Construction sch

Billing
Independent

Sales Order
Pricing

Billing

Payments

35

Customer Balances

FI: Financial Accounting

FI

SD

Financial
Accounting

Sales &
Distribution

CO

MM

PP

Materials
Mgmt.

Product
Planning

QM

Quality
Mgmt.

ECC

Controlling

FSCM
Treasury

Client/Server PS
PM ABAP/4 WF

Plant Maintenance

Project
System

Workflow

The FI application
module
HR
IS is designed for
Human
Industry
automatedResources
managementSolutions
and external
reporting of general ledger, accounts
receivable, accounts payable, and other
sub-ledger accounts with a user-defined
chart of accounts
36

FICO: Financial Accounting & Controlling

General Ledger

Analytics

Legal Consolidation

Parallel Accounting

Accounts Receivables

Billing

Accounts Payable
Expense Management
Asset Accounting

Cheque Printing

Budgeting

Payroll

Overhead Cost Controlling

Funds Management
Treasury

Product & Project Costing

Profitability Analysis

Cash Management

Components of FI

FI

FI-GL General Ledger

FI-AA Asset Accounting
FI-AR Accounts Receivable
FI-BA Bank Accounting

FI-AP Accounts Payable

The concepts of New GL, Document Splitting and

Real time FI-CO integration enable real time
segmental and MIS reporting
38

CO: Controlling
FI

SD

Financial
Accounting

Sales &
Distribution

CO

MM

PP

Materials
Mgmt.

ECC

Product
Planning

QM

Quality
Mgmt.

Controlling

FSCM
Treasury

Client/Server PS
PM ABAP/4 WF

Project
System

Plant Maintenance

HR

Human
Resources

Workflow

IS
Industry
Solutions

The CO application module represents

the companys flow of cost and revenue

CO is a management instrument for

organizational decisions
39

CO

Components of CO

CO-CCA Cost Center Accounting

CO-PC

Product Costing

CO-OPA

Order and Project

Accounting

CO-CEA Cost Element Accounting

CO-PA Profitability Analysis

40

Thanks

Copyright IBM Corporation 2011