erp & arbitration, 26th july 2015 at jaipur, introduction to sap erp
TRANSCRIPT
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A.P.SHRINGI
JULY 2015
Introduction to SAP ERP
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ERP / SAP
© 2008 by SAP AG. All rights reserved. 2
What are Enterprise Resource Planning (ERP) Systems?
SAP mean System Applications and Products
Incredibly large, extensive software packages used to manage a
Company's business processes.
Standard software packages that must be configured to meet the
needs of a company
Database programs with the following functions:
Input
Storage/Retrieval
Manipulation
Output 28,610+ Tables in SAP
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ERP /SAP
3
Who are the big ERP vendors? SAP, the German juggernaut
System, Anwendungen, Product in der Datenverarbeitung, or
Systems, Analysis and Products in Data Processing.
Don’t be a sap!
It is implemented in every fortunes 500 companies at least 9 out of 10
Oracle/PeopleSoft/J. D. Edwards (J.D. Orisoft)
Microsoft Great Plains, aimed at smaller companies SAP Business One is competing product
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WHY ERP /SAP
A,P,SHRINGI 4
Well integrated SAP has been implemented 9 out of 10 fortune 500 companies
It brings discipline in the Company
Has various authorization level, Complete tract record of entries, correction and movements.
Drilldown facility for mapping the complete transaction
Brings over all efficiency in the organization
Best for growth of business
Brings various controlling mechanism
Export / import of data to external source
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WHY ERP /SAP
A,P,SHRINGI 5
It can be implemented in various languages
It can handle multiple currencies
Auto bank reconciliation
Scope for work from home or gives freedom to work form remote location
It gives opportunity to use same data to address more then one period.
Provided confidence to auditors
It enhance your carrier
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SAP R/3 Enterprise
6
FI Financial
Accounting
CO Controlling
Workflow PP Prod.
Planning
SD Sales &
Distrib.
MM Materials
Mgmt.
QM Quality
Mgmt.
PM Plant
Maint.
HR Human
Resources
AM Asset
Mgmt.
PS Project
System
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SAP R/3 Enterprise
7
Oracle
DB2
MSSQL
SAP can use a
number of
database programs
to actually store
the data.
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Configuration
© 2008 by SAP AG. All rights reserved. 8
Configuration is the process of making standard software fit your business. SAP, as an example, has: Over 8000 configuration decisions
Data structuring Sales divisions, distribution channels
Rewriting Code (Modifications) Not recommended because of compatibility problems when updated
versions of the software are installed.
Customization Writing code at SAP-specified user exits
Third-party software solutions
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A typical manufacturing company
© 2008 by SAP AG. All rights reserved. 9
Manufacturing
Process Inputs Outputs
FI
CO
Material
Master
Vendor
Master
Pricing
Cust.
Master
Pricing
Basic
Data
Calendars
Currencies
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© 2008 by SAP AG. All rights reserved. 10
USER PCs USER PCs
Application Server
Application Server
Application Server
Application Server
Database Server
Three-tier Client/Server Architecture
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© 2008 by SAP AG. All rights reserved. 11
User PCs
Database and Application
Server
Two-tier Client/Server Architecture
(configuration typical for training)
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© 2008 by SAP AG. All rights reserved. 12
Database and Application
Server
Nothing is saved on your PC. Only things saved on our Server at X location are saved, and they are saved for good.
SAP vs MS Office
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. 13
FICO
FI Handles the company financials
CO Handles the company full Cost
Accounting cycle
http://www.guru99.com/sap-fico-training-
tutorials.html
SAP > Modules
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. 14
FI >> Organizing Structure
1. Creating a Company
2. Assigning the Code
SAP > Modules
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FI >> General Ledgers 1. Creating a Chart of Accounts
2. Creating COA Groups
3. Create G/L Accounts
4. Create retained earnings account
5. Fiscal Year variant ( i.e. Calendar & FY)
6.Assign Company Code to Fiscal Year variant
7.Hold and Park Documents features
SAP > Modules
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FI >> General Ledgers 1. Creating a Chart of Accounts
2. Creating COA Groups
3. Create G/L Accounts
4. Create retained earnings account
5. Fiscal Year variant ( i.e. Calendar & FY)
6.Assign Company Code to Fiscal Year variant
7.Hold and Park Documents features
SAP > Modules
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CO >> Cost & Profit Centre
1. Creating various cost centre
2. Internal Order and closing in to cc
3. Defining Profit Centre
4. Creating Profit Centre hierarchy
5. Assigning CC and MC to PC
SAP > Modules
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SD >> Sales & Distribution
1. It complete Sales cycle
2. Order Procurement
3. Invoicing
4. Shipping
SAP > Modules
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SD >> Sales & Distribution
1. Customer master & Material master
2. Sales
3. Delivery
4. Billing
5. Pricing
6. Credit Management
SAP > Modules
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Delivery Process DA ENTRY IN
SYSTEM
(PPC)
RECEIVE THE DA
(PPC+DESPATCH)
DAILY DESPATCH
PLAN TO
DESPATCH DEPTT.
(PPC)
GENERATION OF
INVOICE/CHALLAN
(DESPATCH)
SENT TO
REGION/DIRECT
(DESPATCH)
INFORMATION TO
REGION
(DESPATCH)
DAILY SALES
REPORT(PPC)
PRODUCTIO
N
ENTRY THE DESPATCH DETAIL
NO STOCK
E
X
P
E
C
T
E
D
D
E
S
P
A
T
C
H
D
A
T
E
YES
MARKET/REGION
VERIFY
STOCK
YES
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SAP>> MM( Material Management) Module
22
Master Data
Purchasing
Inventory
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SAP>> MM( Material Management) Module
23
Master Data
Materials master data creation
It consists of Description, allocation of code, Unit to measure, Category, Unit weight and Gross weight
Storage area reference
Re-ordering level
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SAP>> MM( Material Management) Module
24
Purchasing
Creation of purchase requisition
Conversion of purchase requisition in to purchase order
Quotation review, comparison & finalization.
Purchase order creation, release and edit
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SAP>> MM( Material Management) Module
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Pricing
Creation procedure to arrive at landed price
Price calculation and conditions i.e. discount , tax ,rounding off, plus / minus tolerance
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SAP>> MM( Material Management) Module
26
Inventory
Over view of inventory management
Rule for Goods receipt
Location of inventory
Issue of goods
Transfer posting of goods
Physical verification of inventory
Special stock and special procurement
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SAP>> MM( Material Management) Module
27
Inventory
Over view of inventory management
Rule for Goods receipt
Location of inventory
Issue of goods
Transfer posting of goods
Physical verification of inventory
Special stock and special procurement
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SAP>> PP( Production Planning) Module
28
Manufacturing Planning
It is calculated net quantity to be produced after adjusting availability of Finished Goods and wip.
The net quantity produced is calculated and BOM ( Bill Of Material) is generated to trigger requirement of the Raw material, Consumables and packing material requirements.
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SAP>> PP( Production Planning) Module
29
It also generates material requisition slip for quantities to be sourced godown wise.
Various production order is generated depending on the batch size
Now this each order is now becomes base for allocation of Raw Material, production consumables, production, packing and overheads allocation
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SAP>> PP( Production Planning) Module
30
Each order is closed at the end of the period.
Proper closed orders are considered for the Finished Goods( FG) to be transferred FG godown, while semi finished orders are carried forward for next period opening balance.
FG is now input for SD
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SAP>> IMPLEMENTATION STAP 1
31
Top level decision promoter / MD /CEO
Selection of the Consultant / implementation partner.
Selection of modules to be implemented
Section of business experts with reference to each module preferably one senior and two middle level executives.
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SAP>> IMPLEMENTATION step 2
32
The persons must be strong understanding of Business and deducted to work extra hours
Identification of best practices to be adopted for business process under each module.
Now SAP implementation and User team called LKU has to spent time on GAP analysis.
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SAP>> IMPLEMENTATION Step 3
33
GAP analysis is nothing but existing practice Vs best practice we have selected from SAP modules.
The existing DATA in the legacy system has to be manipulated in such a way that in becomes input for SAP.
Now next stage is setting the platform for the Hardware and testing SAP software.
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SAP>> IMPLEMENTATION Step 4
34
Testing has to be done on full cycle on each module till every thing righty appear in the FI and CO Module
LKU will be give full detailed training on usage of every module
Lastly legacy data to be transferred in SAP on a period ( Financial Year / Calendar Year) cut off in order to make SAP fully operational
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THE END
35
THANNKING YOU ALL FOR YOUR ATTENTION