Clients (and the interface level)

Application Server

(and the application level)

Database Server

(and the Database level)

System Configuration Tables (Don’t Touch)

Business Control Configuration Tables (IMG)(Business Process Design)

R/3 Applications: Sales and Distribution, Manufacturing, H/R, etc.

Master Data Tables: Customers, Materials, etc.

Transaction Data Tables: Orders,

Shipments, etc.

Organizational Structures in SAPFinancial View Client: the highest organizational level. Really a client of SAP. Company Code: a legal entity, own set of financial statements Business Area: for flexible reporting, even across companies Account Codes: every financial transaction must have one.

Controlling View Controlling area: highest org unit for reports, can cross companies Cost Center: lowest org unit to which costs are allocated Profit Center: level at which profit and loss statements are desired Cost Element: linked with account codes, but for controlling

Materials Management View Plant: locations where inventories are stored, processed or valued Storage Location: Many to many relationship to Plant Purchasing Organization: Responsible for purchasing for plants

Organizational Structures in SAP (continued)

Sales and Distribution View

Sales Organization: highest org unit. A legal “selling unit”. Must be within a single company. (1:M for company to Sales Org)

Distribution Channel: various ways of supporting customers, such as wholesale, retail, direct sales, etc. Sales specific material master data may vary by Dist Channel, such as price, minimum order quantity, etc. (M:M for Sales Org to Dist. Channel)

Division: to indicate product groupings, etc., i.e. Motorcycles, Industrial Pumps, etc. (M:M for Sales Org to Division)

Sales Area: a particular combination of Sales Org, Dist Channel and Division. Customer specific pricing can be at this level.

The Basic Sales and Distribution Process

Sales Order DocumentChecks material availability, etc., records order for this customer, records a sale against inventory, but does not remove from inventory. (Goods could actually be used to fill a "best customer" order instead of this order.) Sales Area specified!

Delivery DocumentIn effect, the instruction to the warehouse to now fill the order. Framework document within which the instruction transfer/pick the goods and Post Goods Issue actions occur

PickingInstructions for what to pull from where in the warehouse. Plant and Storage Location specified.

Post Goods IssueRecord goods as removed from inventory. Indicates picking was successfully carried out, and order is now shipped.

Billing DocumentCreates the Invoice, and associated accounting entries. What specified?

The Basic Purchasing Process

Purchase Order DocumentUsed to ask vendor to supply goods or services. Requires the following: -- an account number to which the expense will be credited for external reporting purposes. This must be set up at the enterprise (“client”) level. -- the company code. The account number must be valid for this “company” of the enterprise. -- a cost element. This associates an account code with a “controlling area” to which the expense will be credited for internal controlling purposes. -- a vendor. In our case, this will be known in advance. Sometimes it is not. -- description of what is to be purchased, quantities, etc.

Receipt of Goods DocumentWhen we take possession of the goods, we link that event to the purchase order document, and also create accounting entries showing the expense and the value of goods received.

Receipt of the Vendor InvoiceWe now have an accounts payable amount, and reverse the entry for value of goods received.

Payment. We remove the accounts payable amount and reduce cash.