sap terp10 part0 - introduction

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Integrated business processes with SAP ERPScript 0: Introduction in SAP ERP

Prof. Dr. Heimo H. AdelsbergerDipl.-Wirt.-Inf. Pouyan KhatamiDipl.-Wirt.-Inf. Taymaz Khatami


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Integrated business processes with SAP ERP

page 2Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/Dipl.-Wirt.-Inf. Taymaz Khatami

Table of contentsTable of contents ........................................................................................................................ 2 Table of figures .......................................................................................................................... 5 Copyright .................................................................................................................................... 7 Very Important advises for processing case studies ................................................................... 8 List of literature ........................................................................................................................ 11 Glossary .................................................................................................................................... 12 1 Introduction: Introduction into SAP ERP ........................................................................ 18

1.1 Course objectives ....................................................................................................... 18 1.2 Course outline ............................................................................................................ 19

2 Theory – Introduction in Enterprise Resource Planning with SAP ERP ......................... 20 2.1 Overview of SAP ....................................................................................................... 21

2.1.1 SAP – the company ............................................................................................ 21 2.1.2 Milestones of SAP history .................................................................................. 21

2.2

SAP R/3, SAP ERP, and SAP NetWeaver ................................................................ 23

2.2.1 SAP R/3 .............................................................................................................. 23 2.2.2 SAP ERP ............................................................................................................ 23 2.2.3 Service-oriented architecture and enterprise service architecture ...................... 27 2.2.4 SAP NetWeaver ................................................................................................. 29

2.2.4.1 People Integration ....................................................................................... 31 2.2.4.2 Information Integration ............................................................................... 32 2.2.4.3 Process Integration ...................................................................................... 33 2.2.4.4 Application Platform ................................................................................... 35 2.2.4.5 Advantages of SAP NetWeaver .................................................................. 37

2.3 Organizational plan of a SAP ERP system ................................................................ 38

2.3.1 Financials: organizational units .......................................................................... 39 2.3.1.1 Company Code ............................................................................................ 39 2.3.1.2 Operating Concern ...................................................................................... 39 2.3.1.3 Controlling Area ......................................................................................... 39 2.3.1.4 Credit Control Area ..................................................................................... 39 2.3.1.5 Chart of Accounts ....................................................................................... 40 2.3.1.6 Business area ............................................................................................... 40

2.3.2 Sales areas: organizational units ........................................................................ 40 2.3.2.1 Sales Organization ...................................................................................... 40 2.3.2.2 Sales office .................................................................................................. 40 2.3.2.3 Distribution Channel ................................................................................... 40

2.3.2.4 Division ....................................................................................................... 40 2.3.2.5 Sales area .................................................................................................... 41

2.3.3 Logistics: organization units .............................................................................. 41 2.3.3.1 Plant ............................................................................................................ 41 2.3.3.2 Storage Location ......................................................................................... 42 2.3.3.3 Shipping Point ............................................................................................. 42 2.3.3.4 Purchasing Organization ............................................................................. 42 2.3.3.5 Purchasing Group ........................................................................................ 42

2.3.4 Human resources: organizational units .............................................................. 42 2.3.4.1 Personnel Area ............................................................................................ 42 2.3.4.2 Personnel Subarea ....................................................................................... 42 2.3.4.3 Employee Group ......................................................................................... 43


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2.3.4.4 Employee Subgroup .................................................................................... 43 2.3.5 Additional organizational units in SAP .............................................................. 43

2.4 Master data, transactions, and transaction data ......................................................... 44 2.4.1 Master data ......................................................................................................... 44 2.4.2 Transactions ....................................................................................................... 44

2.4.3 Transaction data ................................................................................................. 45 2.5 Example processes in SAP ERP ................................................................................ 46

2.5.1 Procurement: example process ........................................................................... 46 2.5.2 Engagement management: sample process ........................................................ 47

2.6 Reporting solutions .................................................................................................... 48 3 Excursus – IDES: The SAP model company ................................................................... 50

3.1 The IDES concept ...................................................................................................... 50 3.1.1 Characteristics .................................................................................................... 50 3.1.2 IDES for training ................................................................................................ 51 3.1.3 IDES negotiated agreement ................................................................................ 51

3.2 The IDES group ......................................................................................................... 52

3.2.1 Group areas ........................................................................................................ 52 3.2.2 Company Code 1000 .......................................................................................... 53 3.2.3 Company Code 2000 .......................................................................................... 55 3.2.4 Company Code 2100 .......................................................................................... 55 3.2.5 Company Code 2200 .......................................................................................... 56 3.2.6 Company Code 2300 .......................................................................................... 56 3.2.7 Company Code 3000 .......................................................................................... 57 3.2.8 Company Code 4000 .......................................................................................... 57 3.2.9 Company Code 5000 .......................................................................................... 58 3.2.10 Company Code 6000 .......................................................................................... 58

3.3 IDES Organizational structure ................................................................................... 59 3.3.1 IDES Human Ressources ................................................................................... 59 3.3.2 IDES Financials .................................................................................................. 60 3.3.3 IDES sales and distribution ................................................................................ 61 3.3.4 IDES Logistics ................................................................................................... 62 3.3.5 Conclusion .......................................................................................................... 63

3.4 Information about UCC ............................................................................................. 64 3.5 Summary .................................................................................................................... 64

4 Practical application – Installation and Navigation .......................................................... 65 4.1 Setting up a connection .............................................................................................. 65

4.1.1 Installation of the SAP-GUI ............................................................................... 65

4.1.2

Activating your IP-Address ................................................................................ 69

4.1.3 Creating a Logon-Group Item ............................................................................ 70 4.2 Logging on and off .................................................................................................... 75

4.2.1 Logon ................................................................................................................. 75 4.2.2 Logoff ................................................................................................................. 78

4.3 Navigation in SAP ERP ............................................................................................. 79 4.3.1 SAP ERP Screen ................................................................................................ 79 4.3.2 Navigation .......................................................................................................... 80

4.4 Session concept .......................................................................................................... 83 4.5 SAP ERP help ............................................................................................................ 83 4.6 Data sheet .................................................................................................................. 84

4.7 Navigation unit for SAP ERP .................................................................................... 85 4.7.1 System log-on ..................................................................................................... 85 4.7.2 User-specific settings ......................................................................................... 85


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4.8 Answers to the navigation unit .................................................................................. 88 4.9 Summary .................................................................................................................... 91


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Table of figuresFigure 1: Milestones of SAP .................................................................................................... 22 Figure 2: SAP R/3 modules: Nicolescu/Wittges 2006 ............................................................ 23 Figure 3: SAP ERP architecture ............................................................................................... 24 Figure 4: Solution map mySAP ERP ....................................................................................... 25 Figure 5: From SAP R/3 to SAP NetWeaver: following: Nicolescu/Wittges 2006 ................. 26 Figure 6: SAP Business Suite ................................................................................................... 27 Figure 7: SAP Enterprise Service Architecture ........................................................................ 29 Figure 8: integrated system landscape ..................................................................................... 30 Figure 9: SAP ERP and SAP NetWeaver ................................................................................ 30 Figure 10: SAP NetWeaver components ................................................................................ 31 Figure 11: SAP Enterprise Portal – central GUI ...................................................................... 32 Figure 12: Integrated SAP MDM ............................................................................................. 33 Figure 13: connection of external systems with SAP XI ......................................................... 34

Figure 14: Attributes and structure of SAP Web AS ............................................................... 35

Figure 15: SAP Web AS as part of distinct SAP systems ........................................................ 36 Figure 16: SAP NetWeaver components ................................................................................. 37 Figure 17: SAP organizational structure: terminology............................................................. 38 Figure 18: SAP organizational structure .................................................................................. 39 Figure 19: SAP sales areas ....................................................................................................... 41 Figure 20: Plants in SAP ERP .................................................................................................. 41 Figure 21: Purchasing organization in SAP ............................................................................. 42 Figure 22: Customer master records: example ......................................................................... 44 Figure 23: Transactions in SAP ............................................................................................... 45 Figure 24: Procurement: example process ............................................................................... 46

Figure 25: Engagement management: sample process ............................................................ 47 Figure 26: Data warehouse concept ......................................................................................... 48 Figure 27: Distinction between operative and informative environment ................................. 49 Figure 28: Overview of IDES group areas: IDES – Das integrierte Modellunternehmen fürForschung und Lehre, 2005 ...................................................................................................... 52 Figure 29: IDES company codes: IDES – Das integrierte Modellunternehmen für Forschungund Lehre, 2005 ........................................................................................................................ 53 Figure 30: company code 1000: Das integrierte Modellunternehmen für Forschung und Lehre,2005 .......................................................................................................................................... 53 Figure 31: Company Code 2000 (Great Britain): Das integrierte Modellunternehmen fürForschung und Lehre, 2005 ...................................................................................................... 55

Figure 32: Company Code 2100 (Portugal): Das integrierte Modellunternehmen fürForschung und Lehre, 2005 ...................................................................................................... 55 Figure 33: Company Code 2200 (France): Das integrierte Modellunternehmen für Forschungund Lehre, 2005 ........................................................................................................................ 56 Figure 34: Company Code 2300 (Spain): Das integrierte Modellunternehmen für Forschungund Lehre, 2005 ........................................................................................................................ 56 Figure 35: Company Code 3000 (USA): Das integrierte Modellunternehmen für Forschungund Lehre, 2005 ........................................................................................................................ 57 Figure 36: Company Code 4000 (Canada): Das integrierte Modellunternehmen für Forschungund Lehre, 2005 ........................................................................................................................ 57 Figure 37: Company Code 5000 (Japan): Das integrierte Modellunternehmen für Forschungund Lehre, 2005 ........................................................................................................................ 58 Figure 38: Company Code 6000 (Mexico): Das integrierte Modellunternehmen für Forschungund Lehre, 2005 ........................................................................................................................ 58


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Figure 39: IDES Industry: Das integrierte Modellunternehmen für Forschung und Lehre, 2005.................................................................................................................................................. 59 Figure 40: IDES HR: Das integrierte Modellunternehmen für Forschung und Lehre, 2005 ... 60 Figure 41: IDES Financials: Das integrierte Modellunternehmen für Forschung und Lehre,2005 .......................................................................................................................................... 60

Figure 42: IDES sales and distribution: Das integrierte Modellunternehmen für Forschung undLehre, 2005 ............................................................................................................................... 61 Figure 43: IDES sales and distribution details: Das integrierte Modellunternehmen fürForschung und Lehre, 2005 ...................................................................................................... 62 Figure 44: IDES logistics: Das integrierte Modellunternehmen für Forschung und Lehre, 2005.................................................................................................................................................. 62 Figure 45: SAP GUI Installation – Step 1: SAP-System-Screenshot ...................................... 65 Figure 46: SAP GUI Installation – Step 2: SAP-System-Screenshot ...................................... 66 Figure 47: SAP GUI Installation – Step 3: SAP-System-Screenshot ...................................... 66 Figure 48: SAP GUI Installation - Step 4: SAP-System-Screenshot ....................................... 67 Figure 49: SAP GUI Installation – Step 5: SAP-System-Screenshot ...................................... 67

Figure 50: SAP GUI Installation – Step 6: SAP-System-Screenshot ...................................... 68 Figure 51: SAP GUI Installation – Step 7: SAP-System-Screenshot ...................................... 68 Figure 52: Remote-Login – Identification ......................... Fehler! Textmarke nicht definiert. Figure 53: Remote-Login – IP-Activation ......................... Fehler! Textmarke nicht definiert. Figure 54: Start des SAP Logon ............................................................................................... 71 Figure 55: SAP Logon - Configuration – Step 1: SAP-System-Screenshot ............................ 71 Figure 56: SAP Logon - Configuration – Step 2: SAP-System-Screenshot ............................ 71 Figure 57: SAP Logon - Configuration – Step 3: SAP-System-Screenshot ............................ 72 Figure 58: SAP Logon - Configuration – Step 4: SAP-System-Screenshot ............................ 73 Figure 59: SAP Logon - Configuration – Step 5: SAP-System-Screenshot ............................ 73 Figure 60: SAP Logon – logging on to the SAP system – Step 1: SAP system screenshot .... 75 Figure 61: SAP Logon – logging on the SAP system – Step 2: SAP system screenshot ......... 76 Figure 62: SAP Logon – logging on to the SAP system – Step 3: SAP system screenshot .... 76 Figure 63: SAP license agreement: SAP system screenshot .................................................... 77 Figure 64: SAP Easy Access Menu: SAP system screenshot .................................................. 77 Figure 65: SAP system – logoff: SAP system screenshot ........................................................ 78 Figure 66: Menu bar: SAP system screenshot ......................................................................... 79 Figure 67: System function bar: SAP system screenshot ......................................................... 79 Figure 68: SAP Easy Access title bar: SAP system screenshot ............................................... 79 Figure 69: Application tool bar: SAP system screenshot ......................................................... 79 Figure 70: SAP – Easy Access Menu – detail view 1: SAP system screenshot ...................... 80

Figure 71: Status bar: SAP system screenshot ......................................................................... 80

Figure 72: SAP – Easy Access Menu – detail view 2: SAP system screenshot ...................... 81 Figure 73: SAP – Easy Access Menu – assign to favorites: SAP system screenshot .............. 81 Figure 74: command field: SAP system screenshot ................................................................. 82 Figure 75: SAP – Easy Access Menu – technical names: SAP system screenshot ................. 82 Figure 76: System prompts you to save: SAP system screenshot ............................................ 82 Figure 77: help menu: SAP system screenshot ........................................................................ 83 Figure 78: SAP message: SAP system screenshot ................................................................... 88 Figure 79: Display customer (accounting): SAP system screenshot ........................................ 88 Figure 80: Favorites: SAP system screenshot .......................................................................... 89 Figure 81: Performance Assistant: SAP systems screenshot ................................................... 90

Figure 82: input help, F4 help function: SAP system screenshot ............................................ 90


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Copyright

- This document is mostly based on publications for the TERP10 course “ mySAP ERP – integrated business processes “– those parts are subject to the copyright of SAP AG.

- All figures used within this course are created in the style of the TERP10, if notlabeled else wise. Those parts are subject to the copyright of SAP AG.

- All screenshots used within this document, even if displayed in extracts, are subject tothe copyright of SAP AG.

- Distri bution and reproduction of this document or parts of this document in anyform is prohibited without the written permission of Prof. Dr. Heimo H.Adelsberger, Dipl.-Wirt.-Inf. Pouyan Khatami, and Dipl.-Wirt.-Inf. TaymazKhatami .


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Very Important advises for processing case studies

Please read the following information carefully to prevent problems from occurring while processing the case studies.

1. Make sure that you commence early with processing the case studies. Do not wait andsee until the last month of your working time. As experience teaches, this leads tonegligence and thus compromises the successful completion of this course.Furthermore, consider that this is a certification course, i.e. you will not receive aconfirmation of participation but only a certificate in case of the successful completionof this course. This doesn‟t mean that making mistakes while processing the casestudies result in failing the course, but you need to allow extra time for fixing errors(with the assistance of your supervisor). If you leave processing the case studies untilthe last minute, there will not be time for fixing errors. Only in case of completionwithout any mistakes, a university certificate will be issued. This is to ensure thequality level of this course.

2. This course covers the content of the SAP-owned course TERP10. Along withtheoretic knowledge, you will be practically working with the SAP ERP system. Oneof our goals is to condition you to successfully pass the certification exam by SAPEducation. In case of successful completion of this SAP exam, you will receive theSAP TERP_10_05 certificate. In case of successful completion of all case studies, youwill receive a university certificate by the University of Duisburg-Essen.

3. The case studies‟ degree of difficulty provides the possibility of successful completioneven without prior knowledge of SAP. You will be instructed clearly for case studies.Case studies provide you both with content-related and methodological knowledge ofthe SAP functional areas

- Procurement,- Material Planning,- Lifecycle Data Management,- Manufacturing Execution,- Inventory and Warehouse Management,- Sales Order Management,- Human Capital Management,- Financial Accounting,- Management Accounting,

-

Enterprise Asset Management and- Program and Project management.

Furthermore, case studies teach you how to deal with SAP and you will gain a profound knowledge of the SAP system. What is more, you will get a theoreticalinsight into Business Information Warehouse, Strategic Enterprise Management andSAP NetWeaver.

4. Our concept aims at the self-directed processing of case studies. Accordingly, thecertification is based on the supposition that participants are able to independently usethe SAP system. Hence, please pay attention thoroughly to the introductions in thescript before execute transactions (safe).

5. That does not imply that no mistakes may be made. These things happen and that iswhy you will be continuously supervised by a tutor. In case of any errors during the


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processing of case studies, immediately abort processing without further change andcontact your tutor. Further processing without error correcting may cause irreversibleirregularities. A course-specific forum and contact via email are available in case ofquestions, errors, or technical issues. As a general rule, you should receive an answerto your question on the same day , usually even on week-ends and on public holidays.

Submitted data sheets will be marked on a weekly basis, usually on a Sunday. A progress report will be downloadable in the learning environment (forum).

6. Please understand that email queries regarding the SAP course or concerning particular problems can only be answered if sent to the support email address namedin the initial email. This applies also to submitting data sheets.

7. Furthermore, we kindly ask you to pay attention to the following rules when errorsoccur while processing the case studies to ensure an efficient and smooth support sothat you can continue processing promptly.

- Detailed description of the problem and the corresponding script passage

- Summarize all already existing records of the particular data sheet- Mention your three-digit user number and your three-digit client number

8. Further on, please comply with the following naming rules. Non-compliant data sheetswill not be accepted.

Data sheet naming0. Introduction 00-introduction-xyy-zzz-surname.doc1. Procurement 01-procurement-xyy-zzz-surname.doc2. Material Planning 02-material_planning-xyy-zzz-surname.doc3. Lifecycle Data Management 03-life_cycle-xyy-zzz-surname.doc4. Manufacturing Execution 04-manufacturing-xyy-zzz-surname.doc5. Inventory and Warehouse Management 05-inventory_management-xyy-zzz-surname.doc

6. Sales Order Management 06-sales_order_management-xyy-zzz-surname.doc7. Human Capital Management 07-human_capital_management-xyy-zzz-surname.doc8. Financial Accounting 08-financial_accounting-xyy-zzz-surname.doc9. Management Accounting 09-management_accounting-xyy-zzz-surname.doc10. Enterprise Asset Management 10-enterprise_asset-xyy-zzz- surname.doc11. Project Management 11-project_management-xyy-zzz-surname.doc

Thereby replace:- xyy“ your three-digit user number (WIP x-yy ), which was referred to you at the

beginning of this course- zzz“ the client number that you are using- surname “ your surname

9. To increase learning progress, it is advisable to always look for and run particulartransactions in SAP via the SAP easy access menu (tree structure – you will get toknow this during the case studies). Please avoid from the beginning to retrievetransactions by the means of transaction codes. While using the SAP easy accessmenu, you will implicitly understand the SAP system‟s structure and its interrelation.Accordingly, this will help you in practice to be able to familiarize yourself with anew scope of duties in SAP quickly.

10. Furthermore, please note that you will only install SAP presentation software (SAPGUI) on your computer to access the SAP system. All processes and data storage will

be conducted on the UCC system (Magdeburg and Munich, Germany). Consequently,you do not have to worry about your computer-dying (knock on wood ). No casestudy-related data will be stored locally on your computer so that you can access yourdata anytime and anywhere.


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11. Your supervising tutor during the case studies and person in charge for the course“integrated bus iness processes with SAP ERP” is Taymaz Khatami.

Enjoy this course!

Program executive: Prof. Dr. Heimo H. Adelsberger

Project manager: Dipl. Wi-Inf. Pouyan Khatami

Course supervisor: Dipl. Wi-Inf. Taymaz Khatami


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List of literatureThis cours e‟s content is partially based on the following references.

1. Appelrath, H ans-Jürgen/Ri tter, Jörg: SAP R/3 Implementation – Methods and Tools,

Springer, 2000.2. Brinkmann, Sandra/Zeilinger, Alex : Finanzwesen mit SAP R/3 -Betriebswirtschaftliches Customizingwissen für SAP R/3 – FI. SAP Press, 1999.

3. Br ück, Uwe: Praxishandbuch SAP-Controlling. SAP Press, 2005.4. Di ckersbach, Jörg Thomas/Kell er, Gerhard/Weihr auch, Klaus : Produktionsplanung

und -steuerung mit SAP. SAP Press, 2008.5. Edinger, Jörg/Kr ämer, Christian/Lübke, Christian/Ri ngl ing, Sven :

Personalwirtschaft mit SAP ERP HCM. SAP Press, 2008.6. Forsthuber , Heinz: Praxishandbuch SAP-Finanzwesen. SAP Press, 2006.7. Franz, M ario: Projektmanagement mit SAP Projektsystem. SAP Press, 2007.8. Hell berg, Tor sten : Einkauf mit SAP MM. SAP Press, 2007.

9. M aassen, Andr é/Schoenen, M arkus/Werr, I na: Grundkurs SAP R/3 – Lern- undArbeitsbuch mit durchgehendem Fallbeispiel – Konzepte, Vorgehensweisen undZusammenhänge mit Geschäftsprozessen. 3. Auflage, Vieweg 2005.

10. M oos, Eckhard : Kostencontrolling mit SAP - Business Engineering mit SAP-CO,2002.

11. Ni colescu, Valentin/Wittges, Holger : SAP® HCC Kurs NetWeaver™ 04 basierendauf den SAP NetWeaver Ramp-Up Unterlagen, 2006. SAP- Archiv: mySAP™ ERP – Alle Neuheiten auf einem Blick, 2004.

12. Scheibl er, Jochen : Vertrieb mit SAP. SAP Press, 2007.13. Schr ader, Heino/Weidner, Stefan: IDES – Das integrierte Modellunternehmen für

Forschung und Lehre 2005

14. Schulten, Ernst: FH Aschaffenburg – Customizing in SAP R/3, 200515. Thome, Rainer: Vom Customizing zur Adaption des Standardsoftwaresystems R/3;

in: Schriften zur Unternehmensführung; Band 62, Wiesbaden 1998 SAP-Bibliothek16. Weidner, Stefan: Fallstudie Customizing März 2005 SAP-Hochschulkompetenz-

Zentrum Magdeburg17. http://help.sap.com 18. SAP Education : TERP10 – mySAP Integrierte Geschäftsprozesse. 2006

http://help.sap.com/http://help.sap.com/http://help.sap.com/http://help.sap.com/


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these tasks in a central system and distribute the data to the systems in thesystem group.

Customizing Settings that you need to make when implementing a system, for example,to adjust the company-independent functions provided to the businessrequirements specific to your company.

Digital certificate Dynamic Information and Action Gateway: protocol for communication

between the SAP GUI and the application server (also known as the SAPGUI protocol).DlAG Digital document that contains the information required to verify a user‟ s

identity and the keys used for encrypting and decrypting messages. Themost commonly used format for client certificates is the X.509 standard. Inthe context of the Workplace, cookies are one of the options forimplementing Single Sign-On.

DME Data medium exchangeDrag-and-drop You can use Drag&Drop to select objects in one area (source) with the

mouse, and then move them to another area (target).Drag-and-relate Browser-based navigation tool that enables you to link data from one

application with another application. This includes both SAP applicationsand applications on the Web.

Drag-and-relate servlet Processes information requests that are launched in the mySAP.comWorkplace system landscape from a source system using Drag&Relate.

EAI viewer Enterprise Application Integration is a set of technologies that allows themovement and exchange of information between different applications and

business processes within and between organizations.ECL viewer Optional component for visualizing files in cFoldersEDI Electronic data interchangeERP Enterprise Resource Planning: ERP systems ensure enterprise-wide resource

planning using targeted workflow management. ERP includes back-officesystems such as, for example, production, financial, human resource, salesand materials management systems.

ESA Enterprise services architecture

ESS Employee Self-Service: enables employees to be actively involved inhuman resource business processes. Employees can display, create andmaintain certain types of data, anytime and anywhere, with an easy-to-useWeb browser.

EWB Engineering WorkbenchField attribute In Central User Administration, you can specify a field attribute for every

element of the user master data. This defines the system in which you mustmaintain that field entry and how the entry is distributed to the relevantcomponent systems.

Firewall Protects a local network against unauthorized outside access.Flow logic Flow logic is a programming model provided by the Internet Transaction

Server for creating Web applications, and it is stored as a file in XML-enabled format on the AGate.

Frame

Front End

A WWW page can consist of several HTML pages that are separated byvisible or invisible frames.Work station

Global user manager In the Global User Manager, the system administrator in the central systemhas an overview of all the users in the system group, existing user groups,the systems in the system group, and roles. The system administrator canuse this overview to make changes and distribute them to the relevantsystems.

GSS-API Generic Security Services: standardized security interface with a standardcommunication model for abstracting from the individual products and theircharacteristics.

GSS-API V2 Standard interface for security functions that are used by SNC.GUI Graphical user interfaceHTML Hyper Text Markup Language. Contains formatting instructions (that the

Web browser can interpret) and links to other documents or objects.HTML Business SAP‟ s own macro language that includes statements used to merge R/3


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data dynamically into the HTML business templates of Internet applicationsthat are driven by the Internet Transaction Server (ITS).

HTTP HyperText Transfer Protocol: protocol between the Web server and theWeb client.

HTTPS Hyper Text Transfer Protocol Secure Sockets. Data packets that aretransferred using an HTTPS connection are encrypted using SSL.

IAC Internet Application Component: easy-to-use application in the mySAP.comWorkplace. These components enable even first-time users to executesimple Web applications.

IDES Internet Demonstration and Evaluation System that contains modelcompanies to map the relevant business processes in the mySAP.comsystem.

Incoterms International Commercial TermsInternet BusinessFramework

Enables the integration of users, applications, and data distribution bysupporting XML on all architecture levels. Cross-company business

processes can be triggered at Workplace level from various internalapplications and external Internet services.

ISAPI Internet Server Application Programming Interface: Microsoft softwareinterface for application programs for creating Web applications.

ITS Internet Transaction Server: interface between the component systems andthe Internet. The ITS enables Internet and intranet users to communicatedirectly with SAP systems by starting business transactions, functionmodules, and reports as Internet applications. It consists of two maincomponents – the WGate and the AGate.

KW Knowledge Warehouse: integrated environment for creating, translating, presenting, distributing, and administering multimedia content. TheKnowledge Warehouse provides a comprehensive range of tools andfunctions to support corporate knowledge management and transfer.

LaunchPad Role-specific list of activities in the Workplace containing links to SAPcomponents and to the Web.

LIS Logistics information systemLogical system System on which applications that are integrated and have a common

database run. In the SAP environment, this corresponds to a client in anSAP System.

LTI Long Term IncentivesMarketplace Electronic marketplace that companies use to provide information, content,

and products.Migration Data transfer from one software system to another (for example, master data

and transaction data).MiniALV List display in a small display area of the browser window. The MiniALV

(SAP List Viewer) can be used either as a MiniApp in its own right, or as part of another MiniApp.

MiniApp Intuitive, easy-to-use Web application or Web document. When the userstarts the mySAP.com Workplace, MiniApps provide the user with anoverview of and access to his or her most important information on theinitial screen. The WorkSpace can contain several MiniApps.

MPS Master Production SchedulingMRP Material Requirements PlanningmySAP Business Suite SAP‟ s comprehensive solution concept for optimum integration of all

relevant business processes on the Internet. mySAP Business Suite providesseamless, complete integration between SAP solutions and non-SAPsystems across all business processes, thereby delivering a complete e-

business environment.NSAPI Netscape Server Application Programming Interface: Netscape software

interface for application programs for creating Web applications.OLAP Online Analytical ProcessingOLE Object Linking and Embedding: enables objects from one application to be

linked to another application.OLTP Online Transaction ProcessingOne-Step Business Dovetailing of business processes between business partners, for example,


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using a marketplace.Partner profiles Definition of parameters for the electronic interchange of data with a trading

partner using the IDoc interface: Which message is interchanged how inwhich direction?

Plug-In Additional program that enhances a software system‟ s functionality. Portal Pages that serve as initial screens for Internet users, immediately provide

relevant information and form a platform for visiting other Web sites.PortalBuilder ITS service responsible for the HTML page structure. The PortalBuilder

also takes over role-dependent administration of the LaunchPad andMiniApps. The PortalBuilder communicates directly with the WorkplaceServer for displaying the Workplace on the front-end.

Profile (Authorization) Summarizes authorizations. A user‟ s authorization profiles are stored in the user master record.

Protocol Collection of rules for formats and types of data transmission betweendifferent computer systems.

Remote system Independent system in a different location, with which your system cancommunicate.

Repository Central storage facility for all ABAP Workbench development objects.RFC Remote Function Call: SAP interface protocol, based on CPI-C. An RFC

enables you to call and execute predefined functions in a remote system – oreven in the same system.

role In the mySAP.com context, a role is a collection of activities that arerequired for participation in a business scenario. The Workplace offers arole-based view of all functions that the user requires for his/her businessscenario..

Role maintenance You can use the Profile Generator to create authorization profiles based onthe activities (transactions) contained in a role.

SAP English: Systems, Applications, & Products in Data ProcessingGerman: Systeme, Anwendungen, Produkte in der DatenverarbeitungFrench: Systèmes, applications et produits dans l'informatiqueItalian: Sistemi, appli cazioni & prodotti nell‟ elaborazione die dati

SAP DCOM Distributed Component Object Model: standardized basis for creating andintegrating distributed software components. External client applicationscan use DCOM as the infrastructure for communicating with SAP servers, ifthey need to access mySAP.com components.

SAP Easy Access Navigation menu providing a user-specific initial screen for SAP Systems.SAP GUI for HTML GUI that runs in the Web browser and dynamically generates HTML pages

based on SAP screens.SAP GUI for JAVA Platform-independent GUI, requires a JAVA environment on the PC.SAP GUI for Windows GUI for 32-Bit-Windows.SAP Service Marketplace SAP‟ s global information and communication network. SAP Web Studio PC tool for developing Internet applications that are driven by the Internet

Transaction Server (ITS) and access data from the SAP System.SAPGUI

Graphical user interface for SAPSAProuter SAP program that acts as part of a firewall system. It enables the routing oftraffic to and from the SAP network.

SEM Strategic Enterprise Management: group of tools and processes enablingmanagers to introduce company-wide value-oriented management

procedures.Session handling Session handling in the mySAP.com Workplace enables you to have several

sessions open at the same time. The user works with several browserwindows, all of which are directly displayed as frames in the mySAP.comWorkplace.

Single role s. „role‟ Single sign-on Mechanism that removes the need for users to enter a password every time

they log on to a system. The user only needs to enter a password once, and

can then log on to all systems that are part of the Single Sign-Onenvironment.SIS Sales information systemSMTP Simple mai1 transfer protocol (internet email)


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SNC Secure Network Communication: software layer in SAP systems thatenables them to communicate with an external security product. Theexternal product can protect the communication links between thecomponents of an SAP System.

SOAP Simple object access protocolSSL Secure Sockets Layer: protocol that uses powerful authentication

mechanisms and encryption to protect data transmitted over the Internet.SSO Single sign-onSystem infrastructure The system infrastructure defines the systems and clients required for the

implementation and maintenance processes and their significance, as well asthe transport routes between the systems.

TCO Total cost of ownershipTCP/IP Transmission Control Protocol/Internet Protocol: software protocol that

defines communication between computers.Template Templates are used for certain types of HTML documents, to ensure

consistency or provision of functions.Ticket Authentication used for Single Sign-On (SSO) in the mySAP.com

Workplace. The central Workplace server gives the user an SSO Ticket.This ticket is then verified by the component systems to allow the useraccess without having to enter the user ID and password again.

Transaction Logically self- contained action in an SAP System. From the user‟ s point of view, a transaction represents one unit (for example, changing a customeraddress).

URL Uniform resource locator: internet address (e.g. http://www.mysap.com)User interface Work stationUser master record/User master data

Records with important master data of a particular user in SAP. User masterrecords are used to assign user menus including particular authorizations foractivities to a user.

VBM Value based managementWAP Wireless Application Protocol: protocol that defines the transmission and

display of special Internet content on devices with limited display

capabilities, for example, cell phones.Web application builder Tool for developing Internet applications driven by the Internet TransactionServer (ITS). You can use the Web Application Builder to create all thefiles required to run an application on a Web browser.

Web browser Simple navigation program with GUI interpreting and displaying htmldocuments from the internet.

WebDav Web-based distribution authoring and versioning: http-extension enablingthe joint access of documents via internet.

WebFlow SAP WebFlow enables the running of SAP business workflow via internet.WebServer Server managing connections to the internet.WGate WebGateway: component of the internet transaction server (ITS); connects

the ITS with the web server. Wgate receivers queries from the web browservia web server and forwards them to AGate.

Wizard Software assistant displaying instructions for running particular actionswithin applications.

WML Wireless markup language: internet standard language to characterize pagesfor mobile WAP devices.

Work item Runtime representation of steps to define a workflow or task.Workflow IT-enabled processing of structured, interrelated, and repetitive business

processes.Workplace Role-based, personalized web browser portal for SAP systems, external

systems, and internet applications.Workplace middleware Communication software on a server replicating, synchronizing,

monitoring, and distributing data between the center (network) and externalusers, e.g. business warehouse or mySAP ERP system.

Workplace middleware Part of the workplace architecture consisting of a web server, an internettransaction server, and optional drag-and-relate services.

Workplace server Main server to store information about the workplace user roles.


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WorkSpace Right hand side of the mySAP.com workplace browser window displayingMiniApps, Transactions, and web sites.

XML Extensible markup language: standard for the definition of individualdisplay languages characterizing structured information with tags. Likehtml, xml is a link-oriented language for internet content.


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1 Introduction: Introduction into SAP ERP

This course deals with the leading standard software for Enterprise Resource Planning,namely SAP ERP. Covering the content of the SAP-owned course TERP10, this course givesattention to a bilk of SAP ERP, SAP analysis, the management solution SAP BW (businessinformation warehouse), and SAP SEM (strategic enterprise management). Besides gainingin-depth theoretical knowledge about SAP solutions and components, you get the chance to

practically apply your new knowledge to the SAP system within case studies. The ultimateambition for students in this course is to gain competencies in the area of SAP ERP standardsolutions as well as receiving a certificate issued by the University of Duisburg-Essen and to

be accepted for the TERP10 exam by SAP.

1.1 Course objectives

Usefu l ti ps for practical application:Being a SAP consultant, you focus on consulting, sales, and implementation of SAP ERPcomponents. That is why you need to be familiar with the integrated logistical and financial

processes in SAP ERP and the utilization of analysis components like Business InformationWarehouse (SAP BW) or Strategic Enterprise Management (SAP SEM).

At the end of this course you will be able to:

- Explain how basis business processes in the areaso Sales Order Managemento Material and Production Planningo Procuremento Inventory Managemento Customer Serviceo Financial Accounting ando Controllingo Plant Maintenanceo Project Managementinteract in SAP ERP,

- Explain analysis and reporting functions, especially for SAP SEM and SAP BWcomponents.

- explain Enterprise Resource Planning with SAP ERP,- explain the technical platform of SAP ERP, i.e. SAP NetWeaver,- describe the integration of SAP ERP core components, and- perform integrated business processes and business cases in SAP ERP.


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1.2 Course outline

Conventional courses equip you with concepts, principles, and theories by reading andteaching. Objective of courses like this is transfer of knowledge and of theoretical links.Contrastingly, case studies will encourage your capabilities of analyzing business problems,developing solutions, and decision-making.

The main objective of this course is to give you an understanding of theoretical foundationsand practical application with the leading standard software for businesses and thus to developcompetencies in the area of Enterprise Resource Planning (ERP). Besides the possibility ofattain a certificate by the University of Duisburg-Essen, this course serves as extensive

preparation for the SAP TERP 10 exam. Therefore, teaching units are structured in theory ,application, excur sus , and reflection parts.

TheoryTheory -labeled sections of this course deal with theoretical foundations of SAP ERP. SinceSAP AG considers substantiated knowledge of a product as most important criterion for theadmission to the certification exam for SAP consultants and associates, the content of thetheoretical sections is of high relevance for the certification exam of SAP. Therefore, youshould familiarize yourself with those sections during preparation for the exam.

Practical applicationSections labeled practical appli cation teach you how to apply theoretically gained knowledgeto the SAP ERP system using case studies to practically substantiate theoretical knowledgeand enhance the total comprehension. Additionally, you will receive a certificate for proper

processing of all case studies issued by the University of Duisburg-Essen.

ExcursusThe Excursus section consists of topics to ensure in-depth understanding, although they arenot relevant to the SAP examination.

ReflectionIn the reflection section, you will answer questions concerning the covered topics for revision

purposes. This section is not compulsory but highly advisable with respect to the SAP exam.


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2 Theory – Introduction in Enterprise Resource Planningwith SAP ERP

This introduction gives you an insight into SAP ERP and the required capabilities to deal with

this complex standard softwareYou will familiarize yourself with the software producer SAP, the differences of SAP R/3 andits successor SAP ERP, the technical platform for SAP ERP, i.e. SAP NetWeaver, the SAPorganization structure, and foundations of master data and transactions in I ntroduction inEn terpri se Resource Planni ng with SAP ERP (chapter 2) . Additionally, you will get anoverview of technical foundations of SAP ERP analytics. Those remarks will enable you to

process further units and case studies since you gain basic theoretical knowledge.The second part of the introduction, the model company IDES (chapter 3), an excursus willoutline briefly the model company IDES. Being a SAP-created sample for education

purposes, all relevant business processes of SAP ERP can be implemented in IDES.The third part of the introduction, handli ng and navigation in SAP ERP (chapter 4) , youwill be actively involved with the SAP ERP system for the first time. First, establishing aconnection with the SAP system is explained. Then, you learn how to use the SAP graphicaluser interface (GUI) using the different navigation methods and the integrated help function.Finally, you will work on a navigation case study that will enable you to process case studieson your own.

Educational objectives in chapter 2:- SAP company and history- SAP R/3 enterprise in contrast to its successor SAP ERP- Explaining SAP ERP architecture- Components of SAP NetWeaver- Enhancing business processes with SAP NetWeaver- Strategic advantages of SAP NetWeaver- Explaining functionality of SAP ERP master data- Explaining SAP ERP analytics

Educational objectives in chapter 3:- Familiarize with IDES AG- Insight into organizational structure of IDES AG- Brief information about UCC (University Competence Center)

Educational objectives in chapter 4:- Setting up a remote connection with the SAP ERP system- Handling of the SAP ERP system and navigating in the SAP ERP system


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2.1 Overview of SAP

This chapter briefly introduces the software producing company SAP.

2.1.1 SAP – the company

SAP AG (German: Systeme, Anwendungen, P rodukte, English: sytems, applications, products) was founded in 1972 by five former IBM employees. Today, SAP is the third-largest independent software vendor. SAP‟s head office is in Walldorf, Germany. Asoriginator and market leader for ERP software, SAP employs 48.500 people worldwide,10.600 of them work in the head office in Walldorf (as of 2007). In addition to the maindevelopment center in Walldorf, SAP maintains amongst others branches in Palo Alto (USA),Tokyo (Japan), Bangalore (India) and Sophia Antipolis (France), as well as in Berlin,Karlsruhe, and Saarbrücken (Germany). With branch offices in more than 50 countries, SAP

generated a provisional turnover of 11.565 billion Euros in 2008. SAP AG is listed at diversestock exchanges, e.g. DAX and NYSE (as of 2007). SAP services 89.000 customers withnumerous installations of SAP products. 12 million users in more than 120 countries use SAP

products in 28 different languages. Additionally, SAP offers 22 business solutions, e.g., forautomotive and pharmacy businesses.A brief selection of SAP‟s clientele :

- General Motors Corp.- Bayer AG- Discovery Channel- DHL- Callaway

- Asics- BP- Shell- Deutsche Telekom AG- Siemens AG- Porsche AG- Daimler AG- Audi AG- Deutsche Post AG

2.1.2 Milestones of SAP history

After the founding in 1972, software engineering regarding ERP advances constantly. The biggest milestone of SAP AG was the going live in 1992 of the SAP R/3 system. R/3 meansthat transactions and the processing of transactions, respectively, can be conducted in real-time. Since 1993, there is a cooperation agreement between Microsoft and SAP for the

porting of the R/3 system to Windows NT, which was accomplished in 1994.The development of a user-friendly GUI was carried out in 1998 with Enjoy SAP. Since 1999,mySAP.com is existent, allowing the connection of e-commerce applications with presentERP applications. The software products mySAP ALL-in-One and SAP One Server wereintroduced in 2002.The latest generation of ERP software by SAP is called (my)SAP ERP (the prefix my issupposed to be dropped for future releases), focusing on the inter-company integration ofenterprise software with the connection over SAP NetWeaver. Like the introduction of SAP


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R/3 in 1992 was the migration from mainframe computing to client/server architecture, SAPERP/NetWeaver is another paradigm shift with the migration to service-oriented architectures(SOA) to preferably integrate all present systems and gradually transfer them into the newsystem landscape. This is to ensure the value of all prior investments of a customer, partiallyreflected in the latest SAP AG license agreements.

Figure 1: Milestones of SAP


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2.2 SAP R/3, SAP ERP, and SAP NetWeaver

In the following section of this script, you will learn about the software products SAP R/3,SAP ERP und SAP NetWeaver. The focus is on both theoretical foundations as well asimportant fundamental terms with respect to the case studies.

2.2.1 SAP R/3

SAP R/3 in basis version is an integrated, branch-neutral standard software covering almostall business purposes. The flexible adjustment to company-specific requirements is referred toas customizing in SAP R/3 (and all other SAP systems). Diverse applications modules can beadded to the present basis module to eventually achieve complex branch-specific modules.The particular units are visualized in Figure 2.

Figure 2: SAP R/3 modules: Nicolescu/Wittges 2006

We will take a pass on detained module description at this point. This monolithic structure ofthe unitized design was a proper solution to include all relevant business processes back in the1990s; however new requirements for companies resulted in the lack of flexibility concerningthis design. Especially with respect to the integration of external systems (non-SAP systems),customers, and vendors of the supply chain, a new way to represent business processes

became necessary.

2.2.2 SAP ERP

With increasing globalized markets, competition changes constantly and requires companiesto adjust quickly to those new conditions. A vital factor of success is the time needed for acompany to flexibly adjust their business processes and information flow along the inter-company supply chain. SAP R/3 required extensive changes and complex and timely interface

configurations and maintenance. Contrastingly, SAP ERP with its service-orientedarchitecture offers, in combination with SAP NetWeaver, an extensive solution.


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SAP ERP 6.0 is the latest ERP solution by SAP AG. The following image shows that thissolution is no longer based on the core component SAP Basis, but the complete integrationinto the SAP NetWeaver concept is in place. This ensures the guaranteed future of this ERPsolution.

Figure 3: SAP ERP architecture

In 1992, SAP R/3 was introduced as successor of SAP R/1 and SAP R/2 featuring a two layerarchitecture (technology and application layers). With the introduction of SAP ERP in 2003,a bunch of components is available to support and enhance ERP business processes. At thattime, SAP R/3 Enterprise was one of those components. As you can see in Figure 3, SAP ERPconsisted at that time already of more components than merely SAP R/3 Enterprise and SAP

NetWeaver and featuring many new functional enhancements, e.g., self-services, SAP SEM

etc.SAP ERP Central Component (ECC) is the latest generation of SAP enterprise resource planning software. As you can see above, elements operated by SAP ERP Central Componentare displayed orange. In the area of SAP NetWeaver, those elements being integratedtechnically with SAP ERP Central Component (Business Intelligence merely on project basis)are shown.Since Release 4.6C, SAP R/3 consists of the already described parts (layers) SAP basis(technological layer) and application. To come to a more recent SAP R/3 release, customershad to upgrade both the technology layer as well as the application layer.With SAP ERP, a new SAP solution was generated. Along with other SAP components, SAPR/3 Enterprise is included in SAP ERP as well. That is why customers wanting to upgrade

their present SAP R/3 Enterprise to SAP ERP are not required to perform technologicalchanges.


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SAP ERP is based on the open technology platform SAP NetWeaver and features anextensive range of functions, which can be extended in accordance with companyrequirements and needs. One example for this is the direct inclusion of catalogues in

procurement processes. SAP responds to growing requirements and this is why the latest ERPsolution is more flexible.

Besides those small but necessary extensions, SAP ERP offers functional advancements in allfunctional areas traditionally covered by SAP R/3. The functional areas

- User services (e.g. intuitive GUI),- Analytics (extensive information),- Financials (e.g. functions to automate external and internal accounting processes),- Human Capital Management (e.g. talent management),- Operations (e.g. logistics management and product lifecycle management) and- Corporate Services (e.g. optimizing central and local services for managing real

property, portfolios, business trips, environmental issues, health issues, andemployment protection as well as quality management)

were improved largely and extended. Additionally, functions not being part of SAP R/3 before are integrated in the latest SAP framework with the SAP NetWeaver (cf. followingfigure: SAP Solution Map – Analytics), e.g. functions regarding the Business InformationWarehouse (SAP BW). You can see distinct areas from the following figure. In those areas,mySAP ERP offers new functions in contrast to SAP R/3. By the way of example, SAP ERPcustomers may use SAP NetWeaver functions by implementing either SAP BusinessInformation Warehouse or SAP Enterprise Portal. In addition, self-service procurement,internet sales, and other functions may be implemented.SAP Best Practices is the pre-configuration of frequently-used highlight functions, e.g. newgeneral ledger and analytics.

Figure 4: Solution map mySAP ERP


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Please note that SAP ERP is not meant to be a remake of R/3, but a solution for a service-oriented architecture as aimed for both in the academic world as well as in the businesscommunity.As opposed to SAP R/3 (monolithic structure, applications were linked to the business logic),SAP ERP is based on the open, service oriented architecture of SAP NetWeaver. The

technology platform allows SAP R/3 customers to overcome the costly and timely problemsof real-time business regarding integration of application and external systems as well asmaintenance of interfaces.

Figure 5: From SAP R/3 to SAP NetWeaver: following: Nicolescu/Wittges 2006

You can see from the figure (down on the right) that SAP ERP is a solution within the SAPBusiness Suite . The SAP Business Suite is based on the demand of customers or customergroups, and on contributions of analysts and leading experts to allow customers tosuccessfully face challenges on the market. The solution embraces business, tactical, andstrategic requirements within and beyond a company ensuring inter-company collaborationamongst partners.


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Figure 6: SAP Business Suite

SAP Business Suite features the following business solutions that need to be licensedseparately:

- mySAP Enterprise Resource Planning- mySAP CRM – mySAP Customer Relationship Management- mySAP PLM – mySAP Product Life-Cycle Management- mySAP SRM – mySAP Supplier Relationship Management- mySAP SCM – mySAP Supply Chain Management

All SAP solutions are based on the new service-oriented architecture paradigm. Accordingly,we will focus in more detail on service-oriented architectures and SAP NetWeaver in thefollowing chapter.

Note: Please note that the terms SAP ERP and mySAP ERP are used synonymously in this script. The ‘my’ prefix in mySAP was introduced with a new generation of SAP products being combined in the SAP Business Suite Framework. Thus, this is a product relatedmeasure. However, this prefix is not longer used since SAP ERP ECC 6.0 we won’t use it inthis script either, except for this introduction chapter.

2.2.3 Service-oriented architecture and enterprise service architecture

Service-oriented architecture is an IT concept aiming at supporting business processes.Therefore, the old, monolithic structures are broken up into small, graspable components.Those encapsulated services can be interlinked to handle business processes. Thus, servicesmay be used within distinct processes.A decisive advantage of those services (also known as web services) is that they are based onwell known standards and that many software companies, e.g. Microsoft, IBM, Sun, and SAP,agreed on furthering web service standards. Those standards are combined in the web service

standard stack.


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This includes:- XML (eXtensible Markup Language): specification language for data contents

defining both data as well as corresponding metadata.- SOAP (Simple Object Access Protocol): method and function call of remote

applications using XML as basis language.

- UDDI (Universal Description, Discovery and Integration Services): Directory tolocate web service functionalities.- WSDL (Web Service Description Language): specification for describing web service

interfaces.- BPEL/BPEL4WS (Business Process Execution Language/for Web Services):

specification language defining the sequence and conditions for the interaction ofservices to realize (parts of) business processes.

Those specifications allow web services to interact with each other. A remote programmodule can for example prompt another application to look into somebody‟screditworthiness. Therefore, the remote program seeks a matching service using the UDDIdirectory. After that, information about interfaces, parameters, etc. of the service may beconveyed to the remote program in WSDL to then call the service using SOAP. Thus, themapping of a particular business process with multiple services is enabled due to standardized

protocols. Since services can interact and communicate with each other, no disruptions are thecase and thus the process is independent of systems, platforms, and infrastructure, being

processed only by machines.

Enterprise service architectureThe consequent implementation of the web service concept was realized by SAP with itsEnterprise Service Architecture (ESA). Multiple enterprise services are combined incomposite applications and delivered as packaged composite applications, i.e. as so calledxApps, which represent complex business functionality. Next is a list of the hierarchy, statingwith a single service to a complete xApp:

1. Service: simple function2. Web service: web-compatible function3. Application service: consists of a web service making services from an application

available.4. Enterprise service: consists of one to n application services and serves as inter-

application web service to abstract business.5. Composite application: complex application consisting of enterprise services

6.

Packaged Composite Application: packages of composite applications from softwarecompany7. xApps: composite application created by SAP or partners.

Currently, multiple business processes are realized as xApps by SAP, SAP partners, and third party providers. However, it is required time until a complete coverage of business processesusing xApps is realized. Nevertheless, even today SAP offers many best practice solutions

based on xApps.


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Figure 7: SAP Enterprise Service Architecture

An enterprise service is not concentrated on a particular function, but rather in the complete, branch-specific process. An enterprise service can for example be used to cancel an order.From a company perspective, enterprise services can represent different actions in differentsystems:

- sending confirmations to customers- delete order from production- cancel material requirements- change order status- …

An enterprise service consists of all single steps and represents thus context-based business process logic. This context orientation is decisive, since the particular functions of orderreversal processes in automotive industry differ from a similar process e.g. in media industry.Web services enhance the processing of the single steps within an enterprise service.So what is the difference between a web service and an enterprise service? Well, enterpriseservices characterize business process logic more generally, while web services are small,modularized applications using internet technology, and usually being accessed as singlefunction in applications or enterprise services.

2.2.4 SAP NetWeaver

As mentioned earlier, SAP ERP is a flexible successor due to its modularized structure. It ismodeled on enterprise service architecture, in which business applications may interact witheach other via open interfaces. This construction principle is quite demanding when it comesto technical infrastructure. An open application and integration platform is required for callingtechnical applications and seamlessly integrating external third-party systems. SAP

NetWeaver covers this key role and is thus the company-wide infrastructure for all businessapplications.


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Figure 8: integrated system landscape

Thus, new applications can be integrated properly with this platform (technically speaking,middleware) – regardless if SAP-own applications or applications from third parties. Thehitherto existing complex adjustment of interfaces does not apply anymore, or is facilitated(reduced total cost of ownership (TCO)).

Figure 9: SAP ERP and SAP NetWeaver

We will now take a closer look at the four integration layers of SAP NetWeaver.


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Figure 10: SAP NetWeaver components

2.2.4.1 People IntegrationComponents of people integration are:

- Portal infrastructure: enables the unified, personalized, and role-based user access toheterogeneous IT environments.

- Collaboration (inter-company collaboration): promotes the dynamic and efficientcommunication of teams or communities.- Multi-Channel access: enables access to enterprise systems via computer, internet,

mobile devices, and voice-based systems.

People integration is the top-level integration layer of SAP NetWeaver. It combines functionsthat users need for their every-day work, regardless if it is about one system or applications onmany, distributed systems. Since access to the portal is role-specific, it can be used forcustomers, vendors, or employees in equal measure. The portal (SAP Enterprise Portal) is asingle point of contact and access to all sources of information and is thus a consistent userinterface for accessing applications of a business process with all role-specific content and

personalization functions. All SAP, data warehouses, desktop files, web content, webservices, and third-party systems of an enterprise are comprised in one single GUI. Usingsingle sign-on, a facilitated method for authentication and communication processes betweendifferent IT systems is implemented. Portal knowledge management transforms unstructureddata into important company information. Furthermore, collaboration facilitates inter- andintra-company group efforts.


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Figure 11: SAP Enterprise Portal – central GUI

Thus, particular functions are consistently subservient for all ERP processes. SAP BusinessIntelligence and SAP Master Data Management (SAP MDM) are all-purpose instrumentsapplicable to all ERP fields such as human capital management, financials, or operations.Furthermore, the collaboration component represents a possibility for cooperation of diverse

partners. Services facilitating communication and information exchange are combined in thefrontend.To ensure smooth integration for users and access to relevant media for all participants, amulti-channel access was put in place. Thereby, access to the SAP system is possible eitherover an internet portal, or a SAP GUI, or via a mobile communication device.

2.2.4.2 Information IntegrationAreas of information integration are:

- Business Intelligence: enables enterprises to integrate, analyze, and distribute criticalinformation.

- Knowledge Management: manages unstructured information, e.g. text files, presentations, or audio files and thus facilitates accessing this content.

- Master Data Management: enables a company-wide standardization of data andinformation in heterogeneous IT environments.

Central access for all business-relevant information is carried out on the people integration

layer in SAP NetWeaver. Information integration is concerned with information supply.Therefore, the solution encompasses the following aspects:

- Data integration and transformation- Data analysis and planning- Reporting- Data cleansing- Knowledge management

Along with the integration and transformation of data, data analysis is powered by analyticaltools of the SAP Business Information Warehouse (SAP BW). Integrated planning functionsin BW are enabled SAP BW-Business Planning and Simulation (SAP BW-BPS). SAP BWand SAP BW-BPS together represent business intelligence.


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SAP Master Data Management enables data cleansing, which is important for maintaining proper data quality. Thereby, functions from all attached systems are available to consolidateand harmonize master data and allow a central master data management.

Figure 12: Integrated SAP MDM

Using Master Data Management (MDM), inter-company standardized master data may becreated and distributed via divers, interconnected systems. MDM is technically based onexchange infrastructure (SAP XI) to distribute data. However, MDM not only distributeddata. Moreover, it checks master data for duplicates, which can be taken over into SAP BWfor analysis

Finally, SAP Knowledge Management allows for the integration of unstructured data (textfiles etc.) for all employees from distinct systems using a generic framework.

2.2.4.3 Process Integration

Sub-areas of process integration are:- Integration Broker: The integration broker enables communication betweenapplication components from distinct sources via XML/SOAP.

- Business Process Management: powers modeling and acceleration of processes in adynamic IT environment.

Process Integration enables an inter-system realization of business processes. SAP XI(Exchange Infrastructure) is the vital component for process integration. The IntegrationBroker realized SAP XI communication between software modules and applications,regardless if within an ERP system, or inter-company-wise, if using SAP or third-partyapplications. The open architecture of SAP XI enables complete interoperability with IBM

WebSphere and Microsoft .NET. Furthermore, SAP XI‟s adapter f ramework offers multipleconnectors to SAP and non-SAP systems.


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- SAP to SAP adapter:o IDoc adapter: intermediate documento RFC adapter: remote function call

- SAP to non-SAP adaptero File adapter to reading out files (for old systems)o JMS adapter for calling Java-based messageso JDBC adapter to connect with databaseso http adapter to connect with http applicationso SOAP adapter for reading out web service data

- B2B adaptero EDIFACTo RosettaNeto et al.

Figure 13: connection of external systems with SAP XI

Data is transmitted from a sender system via protocol to the adaptor in a particular dataformat, e.g. IDoc. The adapter then transforms the document in SAP XI format and forwardsit via HTTP(S) to the integration server . System configuration determines which adapter isused when receiving a message. The integration server sends a message to the particularadapter , which in turn transforms the message into the receiver‟s protocol before sending it .The latest SAP XI implementation module can be used if SAP XI is supposed to beimplemented to realize an inter-system integration process, and the involved systems are

based on SAP web AS 6.20 or higher.Therefore, platform-independent interface specifications are defined in the integrationrepository . Using this description, proxies are created in the distinct application systems forJava applications of SAP systems.In an application system, the proxy acts in place of an interface in the integration repository.From a technical point of view, proxy objects are classes and methods in a programminglanguage (ABAP or Java), creating and processing messages for a particular message format,which is defined in the integration repository.

The integrated Business Process Management Engine serves as main element for thecomponent-spanning modeling and monitoring of business processes. Thus, complex

processes can be graphically modeled, implemented, and monitored within an IT


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environment. Usually, this is about processes running between distinct business partners, being linked loosely through information exchange. Either eclipse-based tools by SAP orARIS for NetWeaver are used for process modeling.

2.2.4.4 Application Platform

Finally, the Application Platform enables through its structure the running of ABAP and Javacode. Thus, it is possible to program SAP applications, which are already in place in an open,standard-based development environment, e.g. J2EE. The Web Application Server (Web AS)as basis of SAP NetWeaver provides the complete infrastructure for development and

processing of all SAP NetWeaver components and is thus the foundation of all SAPapplications, e.g. SAP CRM or SAP SCM. Furthermore, the Application Platform is thefoundation of all customer developments and J2EE-conform third party applications.Additionally, Web AS features an integrated life-cycle management based on standardizeddevelopment and implementation tools.

Web Application Server (Web AS)In addition to the runtime environment for ABAP programs already in place, SAP WebApplication Server (Web AS) features a runtime environment for J2EE-based Java programs,the SAP J2EE engine. In combination with the database, SAP Web Application Server servesas the SAP NetWeaver application platform.SAP Web AS features:

- a reliable and time-tested runtime environment, which was advanced continuouslyover the past ten years,

- a safe and secure framework for the processing of complex e-business processes,- a reliable and easy to operate development environment,- support of open technical standards, such as HTTP(S), SMTP, Unicode, HTML and

XML,- high scalability as is already known from SAP basis, and- support of multiple operating systems and databases.

Figure 14: Attributes and structure of SAP Web AS

Web AS is part of distinct SAP systems as well. Different SAP software components such asSAP ERP, SAP BW, SAP CRM and SAP SCM use SAP Web AS. Thus, SAP Web AS is themain component in connection with the Application Platform.


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When taking a closer look at the distinct SAP systems (e.g. SAP ECC 6.0 and SAP CRM),you will see that they can be roughly structured in two types:

- Basis functions- Application functions

Figure 15: SAP Web AS as part of distinct SAP systems

The distinct SAP systems (or products, respectively), differ considerably in their applicationfunctionality. You can for example process marketing measures using SAP CRM (marketing

planning, campaign management). SAP ERP ECC 6.0 does not feature this functionality.Contrastingly, you can represent warehouse management using SAP ERP ECC 6.0. In turn,SAP CRM does not feature this function

As opposed to application functions, basis functions are quite similar in the distinct SAPsystems. SAP Web AS features the basis functionality being an enhancement in contrast toSAP basis. Thus, both systems (ERP and CRM) do not differ considerably regarding their

basis functions,

sap terp10 part0 - introduction

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