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Intro to SAP Enterprise Intro to SAP Enterprise Systems ConfigurationSystems Configuration
EGN 5620 Enterprise Systems ConfigurationEGN 5620 Enterprise Systems Configuration (Professional MSEM) (Professional MSEM)
Fall, 2013 Fall, 2013
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SAP R/3 IntroductionSAP R/3 Introduction Enables a company to link it’s business
processesTies together disparate business
functions (integrated business solution)Helps the organization run smoothlyReal-time environmentScalable and flexible
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SAP R/3 IntroductionSAP R/3 Introduction Central relational database
◦Oracle, Informix, Microsoft SQL, etc.Client/Server – three-tieredERP Components – Oriented towards common
identifiable business modules: ◦MM, SD, PP, FI, CO, HR, WM, QM, PM
Add-ons: ◦Customer Relationship Mgmt (CRM)◦Supply Chain Mgmt (SCM)◦Product Lifecycle Mgmt (PLM) ◦Business Intelligence (BI)
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Relational Database Relational Database Tables: Defines and links a couple of tens
thousands of tables of information (25,000+)
Advantages◦Consistent and accurate data◦Common definitions for terms◦Shared, but restricted usage (e.g., profiles) ◦Eliminates data redundancy
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Client/Server Environment Client/Server Environment
Client◦Software/hardware combination that can
make a request for services from a central repository of resources
Server◦Software/hardware combination that can
provide services to a group of clients in a controlled environment
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Three-Tier SAP StructureThree-Tier SAP StructureGUI – Graphical User Interface or Web
InterfaceApplication server (one or many)Database server (one single location)
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SAP Enterprise System
Database
Application
Presentation
Browser ClientPCs, Laptops, etc.
Network
Application Servers
Database
Internet Transaction Server
Web Server
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Enterprise Systems (history & Evolution)Enterprise Systems (history & Evolution)
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SAP R/3 IntroductionSAP R/3 IntroductionInstance – each install of the SAP R/3
software on an individual application server
Configurable – each instance can be distinctively configured to fit the needs and desires of the customer (within limits)
Most of the infrastructure decisions, including configuration decisions, occur during project implementation
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SAP ConfigurationSAP Configuration
The process of tailoring SAP software by selecting specific functionality from a list of those supported by the software, very much like setting defaults (e.g., Word, Access)
DOES NOT involve changes to the underlying software code
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Programming Code Modifications Programming Code Modifications
Changes to the delivered code
ABAP/4 – Advanced Business Application Programming (ABAP)
This should be done carefully as it can make migration to new versions of the software much more difficult
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SAP Data TypesSAP Data Types
Required data types:
1.Organizational levels (data, elements)
2.Master data
3.Transaction data
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Data type: Organizational levelsData type: Organizational levelsDefines the enterprise structure in terms of legal or
business purposes, including legal entities, plants, storage areas, sales organizations, profit centers:
Client (e.g., 600)◦Highest organizational level◦Represents the enterprise consisting of many
companies Company Code (e.g., C099)
◦Identifies legal entities in an enterprise◦Central organizational element in financial accounting
Organizational levels in Logistics◦Plant (e.g. P099)
Represents factory, warehouse, office, distribution center, etc.
◦Storage locations (e.g., 10, 20, 30) A location within a plant where materials are stored
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Data Types: Organizational levelsData Types: Organizational levels
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Organizational levels in Accounting Client Company code Business area Controlling area Operating concern
Organizational levels in procurement Purchasing organization Purchasing group Plant Storage location
Organizational levels in fulfillment (sales)
Sales organizationsDivisionsDistribution channelSales areasShipping pointPlantStorage location
Organizational levels in PPPlantWork CenterStorage locationShipping Point
Data Type: Organizational levelsData Type: Organizational levels
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Procurement
Client GBI CC US##
Dallas DL##
Miami MI##
S. DiegoSD##
CA##
TorontoTO##
Shipping Point DL##
Storage Location
RM##
MI## SD## HD## HH##
AU##
PerthPE##
Central Purchasing Organization (global) GL##Purchasing Org. US##
CC DE##
Heidelb.
HD## Hamburg
HH##
SF##
FG##
MI##
TG##
FG##
MI##
TG##
FG##
MI##
TG##
FG##
MI##
RM##
SF##
FG##
MI##
TG##
FG##
MI##
TO##
TG##
FG##
MI##
PE##
CA##
Purchasing Group North America N##
PO DE##
PGr Europe N##
AU##
AsiaAS##
SAP Enterprise Structure ExampleSAP Enterprise Structure Example
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Sales and Distribution
Client GBI Credit Control Area (global) GL##
CC US##
SO East UE##
SO West UW##
CC CA##
SO East CE##
SO West CW##
CC DE##
SO South DS##
SO North DN##
CC GB##
SO South GS##
SO North GN##
CC AU##
SO South AS##
SO North AN##
Distribution Channel Wholesale WH
Distribution Channel Internet IN
Div
isio
n B
icyc
les
BI
Div
isio
n A
cces
sori
es A
S
SAP Enterprise Structure ExampleSAP Enterprise Structure Example
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Key Concepts in SAPKey Concepts in SAP
◦Long term data that represent entities of: Procurement
◦Vendor◦Material◦ Info records, source list
Fulfillment (Sales & Distribution) ◦Customer◦Material◦Conditions (pricing, output)
Production◦Bills of material◦Work centers◦Product routings
Data Type: Master data
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Key Concepts in SAPKey Concepts in SAP
◦Data generated during executing process (steps) combining: Organizational levels Master data Situational data (who, what, when, and where)
◦Example: sales order Organizational levels: customer, company code,
sales area Master data: customer master, material master Situational data: date, time, person, quantities
Types of Data: Transaction data
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• The Document concept◦ An electronic record of transactions◦ Each transaction creates document(s)
• Document types◦ Financial accounting documents (FI)◦ Management accounting documents (CO)◦ Material documents (goods movement)◦ Others
Key Concepts in SAPKey Concepts in SAP
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SAP R/3 Document Principle SAP R/3 Document Principle
Each business transaction that writes data to the database creates a uniquely numbered electronic document
Each document contains information such as◦Responsible person◦Date and time of the transaction◦Commercial content
Once created, a document can not be deleted from the database
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Key Concepts in SAPKey Concepts in SAPThe Document Concept: Transaction document
Global Bicycle Incorporated 5215 N. O’Conner Blvd. Dallas, Texas, 75039 Phone: +1.972.555.2000 Fax: +1.972.555.2001
PURCHASE ORDER Purchase Order Number: 4546
THE PURCHASE ORDER NUMBER MUST APPEAR ON ALL RELATED CORRESPONDENCE, SHIPPING PAPERS, AND INVOICES
TO: Olympic Protective Gear 2100 Summit Boulevard Atlanta, GA, 30319
SHIP TO: GBI San Diego Distribution Center 150 Spear Street San Diego, 94105 +1-415-555-7700
Purchase Order # P.O. DATE Delivery Date Shipped VIA F.O.B. Point Payment Terms
4546 July 11, 2009 July 27, 2009 Ground Destination Net 30
Quantity Material # Material Description Unit Type Unit Price Item Total
100 KPAD 2160 Knee Pads Each 37.50 3,750.00
100 EPAD 2130 Elbow Pads Each 37.50 3,750.00
50 OHMT 2220 Off-road Helmets Each 25.00 1,250.00
SUBTOTAL $ 8,750.00
SALES TAX Exempt
SHIPPING & HANDLING Included
OTHER N/A
ORDER TOTAL $ 8,750.00
, Authorized by: __________________________________________________ Purchasing Manager
Date: ____________________
Header
Line items
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Key Concepts in SAPKey Concepts in SAPThe Document Concept: Material Document
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PEN, Inc. PEN, Inc. System ConfigurationSystem Configuration
IntroductionIntroduction
EGN 5620 Enterprise Systems ConfigurationEGN 5620 Enterprise Systems Configuration (for Professional MSEM) (for Professional MSEM)
Fall, 2013Fall, 2013
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Learning by Creating a Model Learning by Creating a Model BusinessBusinessUnderstanding business processes and
their integrative natureUnderstanding SAP organizational
structuresCombining business processes and SAP
organizational structure (i.e., configuration)
Test the newly configured systemView system outputs - statistics, reports,
and graphics
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Pen Inc.Pen Inc.Start-up company in the promotional pen
businessInitially buys and re-sells different lines of
promotion pensSells to both wholesale and retail –
procure and distributeLater acquires a production facility to
manufacture its own product – produce and distribute
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Enterprise StructureEnterprise Structure
PlantPlant
Client Client
Chart of Chart of AccountsAccounts
CompanyCompanyCode (C_ _ _)Code (C_ _ _)
Fiscal YearFiscal YearVariantVariant
Credit ControlCredit ControlAreaArea
PurchasingPurchasingOrganizationOrganization
Purchasing Purchasing GroupGroup
Shipping Shipping PointPoint
SalesSalesOrganizationOrganization
Distribution Distribution ChannelChannel
DivisionDivision
Sales AreaSales Area
Controlling Controlling AreaArea
SL10SL10 SL20SL20
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Company configurationCompany configuration◦Pen Inc. _ _ _US manufacturing Company
Vermillion SD, US◦Facilities:
One manufacturing plant with warehouse in Vermillion (Plant)◦Work Center◦Storage Location
10 for Trading and finished goods 20 for Quality 30 for Raw materials
◦Shipping point◦Sales Organization◦Purchase Organization
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The company to be configuredThe company to be configuredCost Center Standard Hierarchy
ADMIN_ _ _ (Cost Center Group)• Acct-Finance • Administration• Purchasing• Information Tech
Sales _ _ _ (Cost Center Group)• Sales • Marketing
Distribution-Production Cost Center _ _ _ (Cost Center Group)• Warehouse • Production
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Pen Inc. : The companyPen Inc. : The companyProducts
◦Trading Materials BPEN _ _ _ (Barrel Pen) CPEN _ _ _ (Click Pen) PPEN _ _ _ (Premium Pen) Box _ _ (Pen Box)
◦Finished products EPEN _ _ _ (Executive Pen) ESET _ _ _ (Executive Set)
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Pen Inc. : The companyPen Inc. : The companyCustomers
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Pen Inc. : The companyPen Inc. : The companySuppliers
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Pen Inc.: Key ProcessesPen Inc.: Key Processes◦Procurement (buy)◦Fulfillment (sell)◦Production (make)◦Material planning (plan)◦Financial Accounting (track)◦Management Accounting (track)◦Inventory and Warehouse Management (store)◦Enterprise Asset Management (maintain)◦Customer Service (service)◦HCM (people)
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Pen Inc. : The companyPen Inc. : The company
The IS of the Pen, Inc. will ◦integrate and share all services for all business
functions in the Vermillion Office◦Centralize all ERP functions◦Achieve the primary business objectives:
Reduce Costs Deliver Best-in-Class Technology to all divisions
Information system requirement
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Exercises: Exercises: due date – 8/17/2013due date – 8/17/2013
21. Create company code22. Create chart of accounts23. Assign company code to chart of accounts24. Assign company code to fiscal variant25. Create Credit control area26. Assign company code to credit control area27. Assign permitted credit control areas to company
code 29. Define plant30. Define storage locations (inventory and quality)31. Define purchasing organization32. Create purchasing group
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Exercises: due date – 8/17/2013Exercises: due date – 8/17/201333. Assign plant to company34. Assign purchasing org. to company code35. Assign purchasing org. to plant36. Set up parameter ID37. Create Account groups38. Define retained earnings account40. Assign company code to field status variant41-57 Create 17 general ledger accounts58. Run general ledger list of accounts reports