Finance and Controlling Day 1

Introduction to SAP

Business without ERP

Customers 4
PP contacts Purchasing for raw material

Purchasing
Customer Calls to place 1 order for a Car

Sales office/Inventory contacts PP

Production Planning
3
Sales office contacts Inventory

Sales
-3-

Inventory

Business without ERP (Contd..)

Lets add some more Business Processes

-4-

Business without ERP (Contd..)

Customers
Where is my car What is this confusion

What to manufactur e?? Whom to contact for status? What is Cost and profit

Production Planning

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

Sales General Ledger

Purchasing

Customers

A/R

A/P

Production Planning

Inventory

Shop Floor Execution

-8-

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

FA Marketing Treasury GL Shop Floor Sales AR AP Purchasing

Payroll HR

Partner Systems
PP

Mfg.

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 Inter-Enterprise Co-operation Collaborative Business

Create Strategic Value Total Company Value Automation Efficiency and Control

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)

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

(Authorizations/Ids/etc)

-25-

Systems in R3
Transport Request

Development System (DC)

Quality System (QC)

Production System (IC)

Client 110 100 etc..

-26-

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 Bull/Zenith Compaq Data General ... Digital NCR HP (Intel) Sequent IBM (Intel) SNI IBM AS/400 IBM S/390

Operating AIX Reliant systems Digital UNIX UNIX (SINIX)

HP-UX SOLARIS

Windows NT

OS/400

OS/390

Databases

ADABAS D DB2 for AIX INFORMIX-OnLine ORACLE

ADABAS D MS SQL Server INFORMIX-OnLine ORACLE

DB2 for OS/400

DB2 for OS/390

Dialog SAPGUI Languages

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 SOLARIS HP-UX Digital Unix

IBM SNI SUN Digital HP Bull

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

DB2 for AIX Informix Online Oracle 7.1 ADABAS D Oracle 7.1 SQL Server 6.0 ADABAS D

Windows NT

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

OS/400

AS/400

Win 95 OS/2

DB2/400

-30-

Client Server Benefit

-31-

Quiz Time
Match the following
Presentation Server Application Server 3 Digit number Client Testing/ UAT Unix Systems Authorizations Windows Basis Quality System GUI Oracle Client Business Administration
-32-

Quiz Time
Match the following
Presentation Server Application Server 3 Digit number Client Testing/ UAT Unix Systems Authorizations GUI Business Administration Client Quality System (QC) Windows Basis

-33-

SAP R/3 Modules

SAP Modules

SD Sales and Distribution MM Materials Management PP Production Planning

FI Financial Accounting

SD
MM PP

FI CO
AM

CO Controlling AM Asset Management

SAP R/3
QM
QM Quality Management PM Plant Maintenance WM Warehouse Management

HR PM WM PS WF
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

SD Inquiry processing Sales Order Processing Delivery Processing Billing

FI General Ledger Accounts Payable Accounts receivable Cash management

CO Cost Center Accounting Product Costing Order Contribution Analysis

-37-

Quiz Time
Match the following
Financial Accounting Controlling Materials Management Sales & Distribution Production Planning Project System Inventory Management Shop Floor Control Financial Reporting Profit center Accounting Billing Activity monitoring Asset Management

-38-

Quiz Time
Match the following
Financial Accounting Controlling Materials Management Sales & Distribution Production Planning Project System Asset Management & Financial Reporting Profit center Accounting Inventory Management Billing Shop Floor Control 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
Payables

Bank accounts
Receivables

Accounts receivable

General Ledger
Invoice verification Extended General Ledger
Consolidation

Credit management

-41-

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 and Distribution Processing

SALES INFORMATION SYSTEM Sales Support
Sales activity

MATERIALS MANAGEMENT

Sales

Inquiry Quotation Contract Scheduling agreement

USD

Delivery free of charge

Subsequent delivery free of charge

Sales order

Returns

Shipping
Delivery

Billing
Debit memo Invoice Credit memo

FINANCIAL ACCOUNTING
-44-

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
Material Special stock Batch Vendor/one-time customer Purchasing info record Service specifications Workflow Optical archive

PURCHASING
Purchase requisition

SD PP PM

Third-party order Requirements

RFQ/Quotation

Purchasing information system Vendor evaluation

MRP Direct requisition Release procedures Material/service Price comparisons Price comparison list Purchase orders Outline agreements Scheduling agreements

Purchasing

Service/ Spare Parts Service / parts lot Inspection QM spare

FI AM CO PS

G/L accounts Cash management and forecast

Fixed assets Cost center / Budget Project

INVENTORY MANAGEMENT

Texts Mail Communication

Classification Documents

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

INVOICE VERIFICATION

Conditions

Check and post Price update

-46-

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 Shipping Billing

SD

Sales and Operations Planning Demand management / MPS Material requirements planning
Detailed Schedeling and Planning Capacity planning Shop floor control Costing Information system

Project Networks

PS SD

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

Vendors

MM SD Purchasing Warehouse Invoice verification

FI

Financial accounting

CO

Cost accounting
-48-

HR

Human resources

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

Key elements

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 Media SAP for Automotive SAP for Mill Products SAP for Banking SAP for Mining SAP for Chemicals SAP for Oil & Gas SAP for Consumer Products SAP for Pharmaceuticals SAP for Engineering, Construction & Operations SAP for Professional Services SAP for Insurance SAP for Utilities SAP for Healthcare SAP for Public Sector SAP for High Tech SAP for Retail SAP for Higher Education & Research SAP for Service Providers

SAP for Industrial Machinery & Components

SAP for Telecommunications

-55-

SAP Product Overview

Evolution of SAP products

mySAP ERP R/3 Enterprise

Web AS

Solutions mySAP CRM mySAP SCM mySAP HR mySAP PLM ..

mySAP Business Suite

R/3

SAP NetWeaver

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

my SAP Business Suite

-58-

SAP R/3

Financials

HR Corporate Services

Operations

-59-

mySAP Solutions

mySAP PLM

mySAP SCM

mySAP Financials

mySAP CRM

mySAP HR Corporate Services Operations

mySAP SRM

Adaptive Business Solutions

-60-

SAP R/3

my SAP Business Suite

mySAP PLM mySAP SCM

mySAP

mySAP

SRM
mySAP Financials mySAP HR Corporate Services Operations

CRM

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 Service Executives

Service
Use a CRM Solution to complete the Cycle

Engage

Fulfill Transact

Workplace
Which way How
Internet Mobile Telephony

Operational
-66-

Analytical

Collaborative

CRM Component Landscape

mySAP.com Portal Users OLTP R/3 System

CRM System

BW As one big logical box Internet

Telephone Callers Mobile Clients

APO

-67-

CRM Internet Sales

Enterprise

B2C Scenario

Consumer

Internetselling

BBP Scenario

Business Partner

B2R Scenario
-68-

Reseller

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

Business Inf. Whouse 3.0B Requisite Bugs Eye 3.5

Supplier self services 1.0 Bidding Engine 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 Master Data

Module includea Demand Planning, SNP & Deployment, PPDS, GATP, TPVS and TLB Planning system where selective Master data maintained and sourced from R/3

Core interface SAP CRM, SAP SRM and SAP PLM

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

Legacy Systems

BAPI

-83-

One-on-One comparison
i2 Technologies (Tradematrix SCM) SAP SCM ORACLE APS Manugistics (Networks SCM)

Forecasting

Demand Planner/Demand Management Demand Fulfillment

Demand Planner

Oracle Demand Planner

Demand Management

ATP and 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) TP/VS (Transportation Planning/Vehicle Scheduling)

Oracle Manufacturing Scheduling

Manufacturing Planning and Scheduling Logistics Management Solutions

Transportation

TMS (Transportation Management Solutions)

Oracle Transportation

-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
Document Mgmt Call Center Market Analysis

Extended Value Network Increased Market Dynamics

Integration costs are high

Long integration projects IT environments become increasingly rigid Lots of heterogeneous systems

SCM

ERP
E-sales

Pressure on IT increases
Must leverage existing investments Must support new business processes quicker

Trading

E-procurement
Technical systems

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 Market Analysis

Use only one platform to integrate all people, information, and systems

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

Increase business process flexibility by using an Enterprise Services Architecture

PLM

-92-

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
People Integration Composite Application Framework
Multi-channel Access Portal Collaboration

SAP Enterprise Portal

Business packages Collaboration

SAP Business information Warehouse

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

Life cycle Management

Information Integration
Bus. Intelligence Knowledge Mgmt Master Data Management

Master Data Management

Coming in 2003

Process Integration
Integration Broker Business Process Management

SAP Exchange Infrastructure

Proxy generation and mapping tools Integration directory SAPs ability to execute

Application Platform
J2EE ABAP Multi-channel Access

SAP Web Application Server

Proven, scalable, comprehensive toolsets Leverage existing infrastructure/skillets -95-

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

Plant

Company Code

Controlling
Controlling Area

Client

Human Resources
Personnel Area

Sales and Distribution

Materials Management

Sales Area

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

Company Code

Purchasing Org.

Plant

Sales Organ.

Shipping Point

Storage Location

Distribution Channel

Sales Office

Sales Group

Loading Point

Division

-104-

-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 ____________.

-115-

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

-116-

Organizational Elements in Sales

-118-

-119-

-120-

-121-

-122-

-123-

Quiz Time
Fill in the blanks

Sales area is a combination of _____________, ________________ and _______________.

-124-

Quiz Time
Fill in the blanks

Sales area is a combination of

Sales Organization, Division and Distribution Channel

-125-

Navigation

Logging on to SAP System

Logon pad with different systems

-127-

-128-

-129-

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.

-130-

-131-

-132-

-133-

-134-

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

-136-

The Variant Principle

-137-

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

-138-

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.

-139-

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

-140-

Currencies
Legal means of payment in a country. You can manage ledgers in two parallel currencies in addition to the local currency

-141-

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
-142-

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.
-143-

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

-144-

Quiz Time
Fill in the blank

The difference between ____________ and

____________ is called spread.

SAP maintains ___________ number of currencies.

-145-

Quiz Time
Fill in the blank

The difference between Buying rate and Selling rate is

called spread.
SAP maintains 187 number of currencies.

-146-

Thank You!