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1

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CustomersCustomers

Customer

Calls to place

order for a

Car

1

Salesoffice/Inventory

contacts PP

3

Sales office

contactsInventory

2

ProductionProductionPlanningPlanning

InventoryInventory

3

4

PP contacts

Purchasing for

raw material

PurchasingPurchasing

SalesSales

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Lets add some more Business Processes

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CustomersCustomers

VendorsVendors

Shop floorShop floor

ProductionProductionPlanningPlanning

InventoryInventory

FinanceFinance

Where is my

car

Whom to

contact for

status?

What is this

confusion

What is

Cost and

profit

What to

manufactur

e??

SalesSales

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SalesSales

Dear Sir,

Your Order

I did not order

for a

TRUCK!!!!

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I AM NOT TAKING

DELIVERY ANDWILL

NEVERDEALWITH YOU!

SalesSales

We are

SORRY Sir

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Production

Planning


CustomersCustomers

VendorsVendors

InventoryInventory

A/RA/RA/PA/P

Shop FloorShop FloorExecutionExecution

GeneralGeneralLedgerLedger

SalesSales

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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

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PP

GL

Plants

Shop

Floor

Sales

HRFA

AP

AR

Purchasing

Partner

Systems

Payroll

TreasuryMarketing

Mfg.

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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

E RP

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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)

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Systems Applications and Products in Data Processing German : Systeme, Anwendungen, Produkte in der Datenverarbeitung

Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner andTschira

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, whichcovers virtually every aspect of the business

Three systems developed : R/1, R/2, R/3

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Enterprise Resource Planningis evolved through these stages

Total

Company

Value

Evolution of ERP

CreateCreate

StrategicStrategic

ValueValue

Efficiency andEfficiency and

ControlControl

AutomationAutomation

80s R/280s R/2 90s R/390s R/3 Today mySAP ERP

Inter-Enterprise

Co-operation

Inter-Enterprise

Co-operation

Enterprise

Resource

Planning

Enterprise

Resource

Planning

Collaborative

Business

Collaborative

Business

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70s

SAP Invents

Real-Time ERPSAP defines and

establishes a new

approach toIntegrated

Standard

Business

Software.

ERP = TheBusiness

Software

IndustryThe approach that

SAP established

becomes industry

standard. Newcompetitors enter

the market.

ERP Rapid

AdoptionCompanies start to

adopt ERP on a

massive scale

Dot.com Hype:

ERP = Old

E-Business = New

Trends seemed toindicate that ERP

was an out-of-

fashion model

mySAP ERPE-Business is

now seen as anextension of

ERP, not a

replacement.

SAP is leading

the new industry

standard for

collaborativebusiness

applications.

80s 90s 00s

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SAP R/3 client server architectureevolved in year___________.

Which is the latest SAP product?mySAP ERP

mySAP Business Suite

mySAP.com with one step business

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SAP R/3 client server architectureevolved in year 1992

Which is the latest SAP product?mySAP ERP

mySAP Business Suite

mySAP.com with one step business

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19

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Development

System

(DC)

Quality

System

(QC)

Production

System

(IC)

Client

110

100 etc..

Transport Request

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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

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DB2 forDB2 for

OS/390OS/390

ADABAS DADABAS DDB2 for AIXDB2 for AIX

INFORMIXINFORMIX--OnLineOnLineORACLEORACLE

Windows 3.1, Windows 95, Windows NT,Windows 3.1, Windows 95, Windows NT,

OSF/Motif *, OS/2 Presentation Manager (PM),OSF/Motif *, OS/2 Presentation Manager (PM),

Macintosh *, JavaMacintosh *, Java

ADABAS DADABAS DMS SQL ServerMS SQL Server

INFORMIXINFORMIX--OnLineOnLineORACLEORACLE

ABAP/4, C, C++, HTML, JavaABAP/4, C, C++, HTML, Java

DB2 forDB2 for

OS/400OS/400

OS/390OS/390AIXAIX

Digital UNIXDigital UNIXHPHP--UXUX

ReliantReliant

UNIX (SINIX)UNIX (SINIX)SOLARISSOLARIS

Windows NTWindows NT OS/400OS/400

HardwareHardware Bull/ZenithBull/Zenith

CompaqCompaqData GeneralData General

......

NCRNCR

SequentSequentSNISNI

DigitalDigital

HP (Intel)HP (Intel)IBM (Intel)IBM (Intel)

BullBullDigitalDigital

HPHP

IBMIBMSNISNI

SUNSUN

UNIX SystemsUNIX Systems

IBMIBMAS/400AS/400

OperatingOperatingsystemssystems

DialogDialogSAPGUISAPGUI

LanguagesLanguages

DatabasesDatabases

IBMIBMS/390S/390

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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

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30

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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)

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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

FIGeneral Ledger

Accounts Payable

Accounts receivable

Cash management

COCost Center Accounting

Product Costing

Order Contribution Analysis

Module Functionalities

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Match the following

Financial Accounting Asset Management

& Financial Reporting

Controlling Profit center Accounting

Materials Management Inventory Management

Sales & Distribution Billing

Production Planning Shop Floor Control

Project System Activity monitoring

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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

Module FI Financial Accounting

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ConsolidationConsolidation

Extended General LedgerExtended General Ledger

PayablesPayablesReceivablesReceivables

BankBankaccountsaccounts

General LedgerGeneral Ledger

Cash managementCash managementand forecastand forecast

Foreign exchangeForeign exchangemanagementmanagement

ManagementManagementof securetiesof securetiesand loansand loans

Finance informationFinance informationsystemsystem

BankBank

InvoiceInvoiceverificationverification

AccountsAccountspayablepayable

CreditCreditmanagementmanagement

AccountsAccountsreceivablereceivable

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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 CO Controlling

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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

Module SD Sales and Distribution

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MATERIA

LS

MANAG

EMENT

F I N A N C I A L A C C O U N T I N G

Sales

activity

SALES

INFORMAT

ION

SYSTEM

Sales Support

Sales

Shipping

Billing

Subsequent

delivery freeof charge

Inquiry

Quotation Contract

Delivery

free ofcharge

Sales

order Returns

Scheduling

agreementUSD

Delivery

InvoiceDebit memo Credit memo

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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

Module MM Materials Management

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Service /spare parts

Material

Special stockBatch

Vendor/one-timecustomer

Purchasinginfo record

Servicespecifications

Workflow

Optical archive

TextsMail

Communication

Classification

Documents

Conditions

BASIC DATABASIC DATA

Purchasinginform

ationsystem

Vendorevaluation

Purchase requisition

PURCHASINGPURCHASING

MRP Direct requisition Release procedures

RFQ/Quotation Material/service Price comparisons Price comparison list

Purchasing Purchase orders Outline agreements Scheduling agreements

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

Check and post Price update

INVENTORY MANAGEMENTINVENTORY MANAGEMENT

INVOICE VERIFICATIONINVOICE VERIFICATION

SDSD

PPPP

PMPM

QMQM

FIFI

AMAM

COCO

PSPS

Third-partyorder

Requirements

Inspection lot

Fixed assets

Cost center /

Budget

Project

G/L accounts

Cash management

and forecast

Service/

Spare Parts

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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

Module PP Production Planning

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FIFI COCO HRHRCostCostaccountingaccounting

FinancialFinancialaccountingaccounting

HumanHumanresourcesresources

ProjectProjectNetworksNetworks

MaintenanceMaintenance

RepairsRepairsPlantPlantmaintenancemaintenance

Inbound RawInbound RawMaterialMaterial

Finished GoodsFinished Goods

Sales and OperationsSales and OperationsPlanningPlanning

Demand management /Demand management /

MPSMPS

Material requirementsMaterial requirements

planningplanning

Detailed Schedeling andDetailed Schedeling and

PlanningPlanning

Capacity planningCapacity planningShop floor controlShop floor controlCostingCosting

Information systemInformation system

PurchasingPurchasingWarehouseWarehouse

InvoiceInvoiceverificationverification

SalesSalesShippingShippingBillingBilling

CustomersCustomers

VendorsVendors

SDSDPPPP

SDSDSDSD

SDSDMMMM SDSDQMQM

SDSDPMPM

SDSDPSPS

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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 QM Quality Management

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PS Project Systems

Support planning, control, & monitoring of long term highly complex projectswith 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

Module PS Project System & HR Human Resource

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To integrate SAP R/3 with cross-applications

Support tool for all modules

Automates business process

As events occur that trigger a process, the Workflow manager initiates a

Workflow item

Using the process logic, data and documents are incorporated at each step

Using the processing rules, the Workflow manager routes the item to the

appropriate role (location, person, unit, etc....).

Example:

Posting a PO will trigger automated mail to sales support for customer

service.

ModuleWF Work Flow

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Combines SAP R/3 application modules to additional industry-

specific functionality

Result of the research by industry Centers expertise (ICOE)

IS Industry Solutions

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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 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

SAP for Insurance SAP for Utilities

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R/3

R/3

EnterpriseSAP NetWeaver

mySAP ERP

Solutions

mySAP CRM

mySAP SCM

mySAP HR

mySAP PLM

..

mySAP

Business

Suite

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

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SAP R/3my SAP

Solutions

my SAP

BusinessSuite

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Operations

Corporate Services

HR

Financials

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Operations

Corporate Services

mySAP HR

mySAP Financials

Adaptive Business Solutions SAP R/3

mySAP SCMmySAP PLM

mySAP SRMmySAP CRM

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mySAPPLM mySAP SCM

mySAP

mySAP

SRM CRM

Operations

Corporate Services

mySAPHR

mySAP Financials

Application Platform ( Web As)People Integration (Portal)

Information Integration( BI,MDM)

Process Integration (XI)

SAP NetWeaver

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mySAP CRM

mySAP SRM

mySAP SCM

mySAP PLM

SAP Netweaver

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Who Sales ServiceMarketing Executives

What Service

TransactFulfill

Engage

Which way Internet Mobile Telephony

How Operational CollaborativeAnalytical

Workplace

Use a CRMSolution tocompletethe Cycle

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OLTP

R/3 System

BW

APO

Mobile Clients

Internet

mySAP.com

Portal Users

As one big

logical box

CRM System

Telephone

Callers

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B2C Scenario Consumer

BBP Scenario Business Partner

B2R Scenario Reseller

Internet-

selling

Enterprise

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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

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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

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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

Requisite eMerge 3.5

Enterprise Portal 5.0

Supplier self services 1.0

Bidding Engine 3.5

User Management 3.0

Exchange Infrastructure Content Integrator

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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

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Supplier EnablementSupplier 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

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Core Interface

SAP R/3

Dominant source ofMaster Data in SAPSCM, destination oftransaction data likeplanning outputs or

Availability Checks forExecution systems

Planning system whereselective Master data

maintained and sourcedfrom R/3

SAP SCM

Planning Outputsinclude Forecasts, SNP

or PPDS PlannedOrders, StockTransfers and

Production Orders

Module includeaDemand Planning, SNP& Deployment, PPDS,GATP, TPVS and TLB

Transaction Data

Master Data

LegacySystems

BAPI

SAP CRM,SAP SRM

andSAP PLM

Core interface

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i2 Technologies

(Tradematrix

SCM)

SAP SCM ORACLE APS Manugistics

(Networks SCM)

Forecasting Demand

Planner/Demand

Management

Demand Planner Oracle Demand

Planner

Demand

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

Manufacturing

Planning

Factory Planning PP/DS (Production

Planning and

DetailedScheduling)

Oracle

Manufacturing

Scheduling

Manufacturing

Planning and

Scheduling

Transportation TMS

(Transportation

Management

Solutions)

TP/VS

(Transportation

Planning/Vehicle

Scheduling)

Oracle

Transportation

Logistics

Management

Solutions

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Document Mgmt

E-sales

E-procurement

PLM

Technical

systems

Trading

Call Center

ERP

Market

Analysis

SCM

Business Drivers

Extended Value NetworkIncreased Market Dynamics

Integration costs are high

Long integration projects

IT environments become increasingly rigid

Lots of heterogeneous systems

Pressure on IT increases

Must leverage existing investments

Must support new business processes

quickerMust reduce total cost of ownership (TCO)

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Document MgmtMarket

Analysis

SCM

E-sales

E-procurement

PLM

Technical

systems

Trading

Call Center

ERP

Reduce Complexity

Minimize the number of connectionsthrough hubs

Use only one platform to integrate all

people, information, and systems

Reduce Cost Integration

Deliver .NET and J2EE interoperability

Deliver adaptors for ISV products

Deliver products, not projects

Increase company

performance

Increase ease of use, scalability andadaptability

Increase business process flexibility

by using an Enterprise Services

Architecture

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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

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SAP NetWeaver

People Integration

Application Platform

Process Integration

Information Integration

Multi-channel Access

Portal Collaboration

Master Data Management

Bus. Intelligence Knowledge Mgmt

IntegrationBroker

Business ProcessManagement

Multi-channel Access

J2EE ABAPCom

positeApplicationF

ramework

Lif

ecycleManagement

SAP Mobile Infrastructure

Tight coupling and alignment with SAP business solutions

SAP Enterprise Portal

Business packages

Collaboration

SAP Business information Warehouse

Business content

Tight integration to Sap

Open architecture (Crystal, Accentual )

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

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ClientClient

Chart ofChart of

AccountsAccounts

DistributionDistributionChannelChannel

SalesSales

Organ.Organ.

SalesSalesOfficeOffice

SalesSalesGroupGroup

DivisionDivision


GroupGroup

PlantPlant

ShippingShipping

PointPointStorageStorage

LocationLocation

CompanyCompanyCodeCode

LoadingLoading

PointPoint


Org.Org.

SAP Organizational Structure: Cardinality

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96

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99

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103

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Logon pad with

different systems

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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.

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Variants

Calendar Public Holidays

Holiday Calendar

Factory Calendar

Unit of Measurements

Currencies Currency codes

Conversions (quotations)

Exchange Rate Type Rates

Rounding rules

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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

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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.

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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 globalsetting can affect the whole system performance

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Currency codes

SAP maintains about 187 currencies. If any transaction in anew 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

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Exchange Rate Type is used for different business purposes wheremultiple 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.

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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 typefor an effective date between two currencies