Introduction to SAP

Package 200 - FICO - Infosys

PP contacts
Purchasing for
raw material

Customers

Business without ERP

Purchasing

Customer
Calls to
place order
for a Car

Sales
office/Inventory
contacts PP

Production
Planning

3
Sales office
contacts
Inventory

Sales

Inventory

Business without ERP (Contd..)

Lets add some more Business Processes

Where is my
car

What is this
confusion

Business without ERP (Contd..)

Customers

What to
manufactur
e??
Whom to
contact for
status?

Production
Planning
What is
Cost and
profit

Sales

Shop floor
Finance

Purchasing
Vendors
Inventory

Lets Deliver the end product to

customer..
I did not order
for a
TRUCK!!!!

Dear Sir,
Your Order

Sales

Business without ERP (Contd..)

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

We are
SORRY Sir

Sales

Overall Picture
Vendors

Purchasing

Sales

Customers

A/R

General
Ledger

A/P

Production
Planning
Inventory

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

Enterprise Structure Integrating

Business
Marketing

FA

HR

Partner
Systems

Treasury
GL

Shop
Floor

AP
Purchasing

Sales

Mfg.

AR
Plants

Payroll

PP

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
ERP
Satisfying Partners/Customers
Reducing required manpower

Quiz Time
What is the full form of SAP?
When was SAP founded?

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)

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

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

Evolution of SAP

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

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

SAP R/3 Architecture

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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

SAP R/3 System Architecture

(Contd...2)

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

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)

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

Transport Request

Systems in R3
Development
System
(DC)

Client
110
100 etc..

Quality
System
(QC)

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

Clients in R/3

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

Client Server Benefit

Match the following

Quiz Time
Presentation
Server
Application
Server

Windows

3 Digit number

Quality System

Client Testing/
UAT

GUI

Basis

Match the following

Quiz Time
Presentation
Server

GUI

Application
Server

Business
Administration

3 Digit number

Client

Client Testing/
UAT

Quality System
(QC)

SAP R/3 Modules

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SAP Modules
SD Sales and Distribution

SD

MM Materials
Management

FI Financial Accounting

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 Warehouse
Management

WM

PS

HR Human Resources
WF Workflow

PS Project System

Financial accounting (FI)

SAP R/3 Application Modules

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)

Module Functionalities

MM
Material Procurement
Inventory Management
Batch Management
Goods inspection
Invoice Verification

FI
General Ledger
Accounts Payable
Accounts receivable
Cash management

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

SD
Inquiry processing
Sales Order Processing
Delivery Processing
Billing

CO
Cost Center Accounting
Product Costing
Order Contribution Analysis

Match the following

Quiz Time
Financial
Accounting
Controlling

Materials
Management

Inventory
Management
Shop Floor
Control
Financial
Reporting

Sales &
Distribution
Production

Profit center
Accounting
Billing

Match the following

Quiz Time
Financial
Accounting

Asset
Management
& Financial
Reporting

Controlling
Materials
Management

Profit center
Accounting
Inventory
Management

Sales &

Billing

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

Financial Accounting
Foreign exchange
management
Finance information
system

Bank

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

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

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

Sales
activity

Sales

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

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 Sales
andSupport
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

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

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

Production Planning
Customers

SD
Sales
Shipping
Billing

Vendors

FI

Financial
accounting

MM
SD
Purchasing
Warehouse
Invoice
verification

CO

Cost
accounting

SD
PP

Sales and Operations

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

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)

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

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

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)

IS Industry Solutions

Combines SAP R/3 application modules to additional industryspecific functionality

Result of the research by industry Centers expertise (ICOE)

mySAP
Industry
SAP for Aerospace
& Defense Solutions (Some
SAP for Media
Examples)
SAP for Automotive
SAP for Healthcare
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 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
SAP for Insurance
SAP for Utilities

SAP Product Overview

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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

Evolution of SAP products

SAP R/3

my SAP
Solutions

my SAP
Business
Suite

SAP R/3
Financials
HR
Corporate Services

Operations

mySAP Solutions
mySAP PLM

mySAP SCM

mySAP Financials
mySAP CRM

mySAP SRM

mySAP HR
Corporate Services
Operations

Adaptive Business Solutions

SAP R/3

my SAP Business Suite

mySAP PLM

mySAP SCM

mySAP
mySAP
SRM

mySAP Financials
mySAP HR
Corporate Services
Operations

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

CRM

mySAP Solutions & Netweaver

mySAP CRM
mySAP SRM
mySAP SCM
mySAP PLM
SAP Netweaver

My SAP Customer Relationship

Management (CRM)

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CRM Solution Map

CRM Holistic view

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

mySAP.com
Portal Users

CRM Component Landscape

OLTP
R/3 System

CRM System

BW
As one big
logical box
Internet

Mobile Clients

Telephone
Callers

APO

CRM Internet Sales

Enterprise

B2C Scenario

Consumer

BBP Scenario

Business Partner

B2R Scenario

Reseller

Internetselling

Service Planning
Service
module within CRM

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

Suite of tools
tailored module
to the needs ofwithin
the
Mobile
Sales
CRM
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

Quiz Time

What is the latest version of mySAP

CRM
Name the three service modules with in
CRM

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

My SAP Supplier Relationship

Management (SRM)

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SRM Solution Map

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

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

Key Components of mySAP

Supplier Enablement
SRM.Contd.

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

Quiz Time

Name any one key component of mySAP

SRM Solution map

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

My SAP Supply Chain Management

(SCM)

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SCM Solution Map

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

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

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
Demand
Planner/Deman Planner
d Management

Oracle Demand Demand

Planner
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

PP/DS
(Production
Planning and
Detailed

Oracle
Manufacturing
Scheduling

Manufacturing
Planning and
Scheduling

Manufacturing Factory
Planning
Planning

mySAP Product Life Cycle Management

(PLM)

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PLM Solution Map

SAP Netweaver

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A Roadmap for Web Services

Services are changing SAPs

Product portfolio

From Basis to WAS

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

PLM

Must support new business processes

quicker
Must reduce total cost of ownership (TCO)

Reduce Complexity
How to Address the Integration

Challenge

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

Increase business process flexibility

by using an Enterprise Services
Architecture

The fundamental Web services standards

are supported by the Web Application

SAP NetWeaver
The
integration and application platform for
Integrates across technologies
lower TCO
and organizational boundaries

Unifies and aligns people,

information and business
processes

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

SAP NetWeaver in Detail (SAP

SAP NetWeaver
Internal View)
Product

SAP Mobile Infrastructure

Tight coupling and alignment with SAP business solutions

SAP Enterprise Portal

Business packages

components and killer features

SAP Business information Warehouse

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

SAP Web Application Server

Proven, scalable, comprehensive toolsets
Leverage existing infrastructure/skillets

Multi-channel Access

Portal

Collaboration

Information Integration
Bus. Intelligence

Knowledge Mgmt

Master Data Management

Process Integration
Integration
Broker

Business Process
Management

Application Platform
J2EE

ABAP

Multi-channel Access

Life cycle Management

Business content

People Integration

Composite Application Framework

Collaboration

SAP Solutions Powered by SAP

NetWeaver
Business content makes the business
foundation

SAP Organizational units

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Business Scenarios Main Elements

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

Company Code

Organizational Structure - Levels

Organizational Structure Business

Functions

Enterprise Structure - Technology

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

Sales
Office

Sales
Group

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

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)

Organizational Elements in FICO

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Organizational Units in R/3 FI

Overview: Organizational Elements

in Accounting

Organizational Elements in Logistics

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Overview: Organizational Elements

in Logistics

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 ____________.

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

Organizational Elements in Sales

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Quiz Time
Fill in the blanks
Sales area is a combination of _____________,
________________ and _______________.

Quiz Time
Fill in the blanks
Sales area is a combination of
Sales Organization,
Division and
Distribution Channel

Navigation

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Logging on to SAP System

Logon pad with
different systems

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.

General Settings

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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

The Variant Principle

Define Public Holidays

Calendar

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

Define Factory Calendar

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.

Enables calculations with quantities and physical units.

Unit
of
measurement
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

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

Currency codes

SAP maintains about

187 currencies. If any transaction in a new currency
Currency
settings
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

Exchange Rate Type is used for different business purposes where

Exchange Rate Type

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.

Exchange rates in the system for the following purposes

Exchange
Rate
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

Quiz Time
Fill in the blank

The difference between ____________ and

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

Quiz Time
Fill in the blank

The difference between Buying rate and

Selling rate is called spread.
SAP maintains 187 number of currencies.

Thank You!

Package 200 - FICO - Infosys

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