SAP01_EN_Col10_FV_Inst_A4

SAP01SAP Overview

INSTRUCTOR HANDBOOKINSTRUCTOR-LED TRAINING

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About This Handbook

This handbook is intended to complement the instructor-led presentation of this course, and serve as a source of reference. It is not suitable for self-study.

Typographic ConventionsAmerican English is the standard used in this handbook.

The following typographic conventions are also used.

This information is displayed in the instructor’s presentation

Demonstration

Procedure

Warning or Caution

Hint

Related or Additional Information

Facilitated Discussion

User interface control Example text

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Contents

ix Course Overview

1 Unit 1: SAP Overview

2 Lesson: Identifying SAP Applications and Components

17 Unit 2: Navigation

18 Lesson: Accessing The SAP System21 Exercise 1: Log On to the SAP System 10

minutes26 Lesson: Personalizing the SAP Interface38 Exercise 2: Create Favorites 10

minutes41 Exercise 3: Personalize Your User Interface 10

minutes43 Exercise 4: Use Navigation Options 10

minutes

55 Unit 3: System Wide Concepts

56 Lesson: Identifying Elements of SAP's Organizational Structure62 Exercise 1: Display a Customer Master Record 10

minutes

75 Unit 4: Logistics

77 Lesson: Ordering Material86 Exercise 1: Create a Purchase Order for Materials 10

minutes89 Exercise 2: Create a Goods Receipt 10

minutes94 Exercise 3: Process a Vendor Invoice 10

minutes100 Lesson: Using Supplier Relationship Management105 Lesson: Creating a Production Plan110 Exercise 4: Create a Planned Order 10

minutes115 Lesson: Processing Production Orders121 Exercise 5: Create and Release a Production Order 10

minutes125 Exercise 6: Confirm a Production Order and Goods Receipt 10

minutes130 Lesson: Using Supply Chain Management136 Lesson: Managing Sales Orders

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140 Exercise 7: Create a Sales Order 10minutes

144 Lesson: Creating Delivery Process Documents148 Exercise 8: Create a Delivery and Post a Goods Issue 10

minutes154 Lesson: Creating Billing Documents158 Exercise 9: Create a Sales Order Billing Document 10

minutes161 Lesson: Using Customer Relationship Management168 Lesson: Using Product Lifecycle Management

185 Unit 5: Financials

186 Lesson: Viewing Financial Processes193 Lesson: Outbound Payments196 Lesson: Analyze General Ledger accounting200 Exercise 1: Create a Journal Entry 10

minutes204 Lesson: Generating Financial Statements208 Exercise 2: Generate a Financial Statement 10

minutes212 Lesson: Monitoring Internal Costs222 Exercise 3: Execute a Cost Center Report 10

minutes225 Exercise 4: Execute a Profitability Analysis Report 10

minutes

231 Unit 6: Human Capital Management

232 Lesson: Viewing Components of Human Capital Management250 Exercise 1: Hire an Employee 10

minutes

257 Unit 7: Analytics and Strategic Planning

258 Lesson: Executing Analytics and Strategic Planning Reports266 Exercise 1: Create a Business Intelligence Report 10

minutes

273 Unit 8: SAP Services

274 Lesson: Accessing SAP Services

vviii © Copyright . All rights reserved.

Course Overview

TARGET AUDIENCEThis course is intended for the following audiences:

� Developer IT Adminstrator IT Support

� User End User

� User Super Key Power User

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UNIT 1 SAP Overview

Lesson 1

Identifying SAP Applications and Components 2

UNIT OBJECTIVES

� Identify SAP’s applications and components

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Unit 1Lesson 1

2Identifying SAP Applications and Components

LESSON OVERVIEWAfter completing this lesson, you will be able to identify the basic applications and components offered by SAP.

Business ExampleYou are responsible for deciding which applications and components your company will implement, and you must be able to identify and explain the basic functionality of an enterprise resource planning system. For this reason, you require basic knowledge of the following:

� Elements of an enterprise resource planning (ERP) system

� SAP applications and components

� Industry applications

� SAP solutions for small and midsize companies

The lesson on the history of SAP has been removed from this course.Course participants should know SAP is a global company. If students are interested in details they can learn more by logging onto www.sap.com.

SAP is the abbreviation for System, Applications and Products in Data Processing. Link to acronyms: http://wiki.sdn.sap.com/wiki/display/home/sap+acronyms

LESSON OBJECTIVESAfter completing this lesson, you will be able to:


Elements of an ERP System

Most students are familiar with SAP’s products. Clarify that SAP ERP is the product following R/3 and that SAP ERP is more then just R/3. SAP ERP combines SAP NetWeaver, SAP ECC (the technical successor of R/3) and other components. All of the SAP product solutions use components from the SAP ERP.

Enterprise Resource Planning (ERP) is an integrated computer-based system used to manage internal and external resources, including tangible assets, financial resources, materials, and human resources. The purpose of an ERP system is to facilitate the flow of information between all business functions inside the boundaries of the organization. ERP also helps manage the connections to employees and outside stakeholders such as customers, partners, and suppliers. Built on a centralized database, and usually utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and

22 © Copyright . All rights reserved.

enterprise-wide system environment. An ERP system can either reside on a centralized server or be distributed across modular hardware and software units that provide "services" and communicate on a local area network. The distributed design allows a business to assemble modules from different vendors without the need for the placement of multiple copies of complex and expensive computer systems in areas that will not use their full capacity.

SAP R/3 has a wide palette of standard, integrated functions. For example, for processes in sales, shipping, or inventory management, data is automatically transferred to accounting.

SAP ECC is the evolutionary successor of SAP R/3 and is one of the main components of the SAP ERP application.

SAP R/3 has been through a number of release cycles. For each new release, the functions have been extended, applications have been optimized, and interfaces to other software components have been enhanced. SAP R/3 was developed using ABAP, SAP's own programming language.

Figure 1: From R/3 to ERP

Since the release of SAP R/3 Enterprise, changes and enhancements were integrated into the SAP system first as extensions. Changes and enhancements are now integrated as enhancement packages. This accelerates and simplifies the upgrade process and adaptation to industry sectors.

SAP Applications and Components

It is important for students to be able to differentiate between an application and a component. Explain the difference between an application and a component . Remember that what used to be called "Solution" in this section is now an "Application". Suggestion: Start a drawing on the board of the “SAP Business Suite” and continue to add to the drawing as you speak to the following figures. This should be a short introduction into SAP NetWeaver. The lesson on NetWeaver is no longer included in this course.

“IT practices” is the new term for SAP NetWeaver features and functions. They are then broken down into “IT scenarios”.

Information of name changes and components:

New name Abbreviation Old Name

Lesson: Identifying SAP Applications and Components


SAP NetWeaver Application Server

SAP NetWeaver AS SAP Web Application Server

SAP NetWeaver Portal SAP Enterprise Portal

SAP NetWeaver Business Information Warehouse

SAP NetWeaver BW SAP Business Information Warehouse

SAP NetWeaver Master Data Management

SAP NetWeaver MDM SAP Master Data Management

SAP NetWeaver Mobile SAP Mobile Infrastructure

SAP NetWeaver Process Integration

SAP NetWeaver PI SAP Exchange Infrastructure / SAP NetWeaver Exchange Infrastructure

SAP products consist of individual applications, which are available as an entire suite or individually. Each application has its own focus area and provides functions to map this area flexibly and comprehensively. All the applications are based on the SAP NetWeaver technology platform. SAP NetWeaver is an integration and application platform that reduces total cost of ownership across the entire IT landscape and supports the evolution of the SAP Business Suite to a services-based architecture.

Definition of applications and components:

SSAP applications SAP applications describe processes and functions from a process point of view.

SAP components Components represent SAP's technical view of software and are the technical building blocks for the system.

The flexibility and comprehensive integration and adaptation options offered by SAP software results in high-performance, industry-specific, and cross-industry e-business applications.

SAP Solutions

Figure 2: Different Sizes - Different Products

SAP offers different solutions to help companies manage their growth. These solutions provide the functionality required to increase operational efficiency, elevate customer service, and boost innovation within an integrated system.

Unit 1: SAP Overview


SAP Business SuiteIndividually, SAP Business Suite applications help you manage your most critical business processes. Collectively, they form a tightly integrated business application suite that adds value to every facet of your organization and your external value chain (for example, customers, suppliers, and partners).

Figure 3: SAP Business Suite

Consider drawing an overview to SAP as illustrated in these figures.

Figure I-1: SAP Business Suite.ppt



Figure I-2: SAP ECC.ppt

ERP is the core application of the Business Suite. It uses ABAP as its operational language. ECC, or Enterprise Core Component, is the core of this area.

SAP Business Suite is a comprehensive group of business applications that allows companies to manage their entire value chain and the most critical business processes in open, integrated applications. These business applications provide users with consistent results throughout the entire company network. SAP Business Suite consists of a number of different products that enable cross-company processes. Customers, employees, suppliers and partners are brought together to form one unit in a process.

SAP Solution Details

SAP solutions include the following:

SSAP ERP Human Capital Management

SAP ERP Human Capital Management (SAP ERP HCM) enables you to utilize employees effectively toward the success of your company. This solution covers all aspects of human resources, from recruitment and training through payroll.

SAP ERP Financials The aim of SAP ERP Financials is to utilize a company's funds effectively and, therefore, increase profitability in the long term.

SAP ERP Operations SAP ERP Operations provides an extensive operations solution for automating and streamlining procurement and logistics execution, product development and manufacturing, and sales and service.

SAP ERP Corporate Services

SAP ERP Corporate Services introduces service solutions for travel management, environment, health and safety, and real estate management. It also addresses the development of efficient incentive programs.

The core features and solutions of SAP ERP are enhanced and extended through the following applications in the SAP Business Suite:

SAP Customer RelationshipManagement

Customer relationship management (CRM) is a company-wide business strategy embracing all client-facing departments, and even beyond. With CRM, people, processes, and technology work together to increase profitability, and reduce operational costs.



SSAP Product LifecycleManagement

Product lifecycle management (PLM) integrates people, data, processes, and business systems and provides a product information backbone for companies and their extended enterprise.

SAP Supply Chain Management

Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by customers. SCM spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

SAP Supplier RelationshipManagement

Supplier relationship management (SRM) involves working with your suppliers to maximize the potential value of those relationships.

SAP Solutions for Small Businesses and Medium Companies

Point out that Small to Medium Businesses have IT requirements that are not met by the SAP Business Suite. For an SAP Business Suite implementation, solutions need to be as flexible as possible and an implementation is usually time-consuming and cost-intensive. Small and medium businesses often do not have sufficient financial means for such projects and their requirements are usually less complicated. Small and medium businesses require integrated processes on one database and cost-efficient pre-configured systems with low operating costs.

Qualified SAP Business All-in-One packages from SAP partners are pre-configured, micro-vertical industry solutions delivered by partners on a fixed-bid, fixed-scope, and short implementation cycle. Target prospects are $40-$500M in revenue.

Qualified SAP Business All-in-One packages from SAP partners:

- Combines SAP Business Suite and SAP Best Practices templates with industry-specific partner solutions and implementation services.- Delivers 45 micro-vertical industry solutions via 20+ partners.For customers who have limited budgets and vertical requirements that can be satisfied through an available SAP All-in-One solution.

There is no lesson going into more details of these solutions for small and medium businesses. It is up to you, but should of course depend on your participants, how much you go into details here. The table should help you to position the different solutions (this table is taken from an overview brochure available on SAP.com).

SAP Business One SAP Business ByDesign

SAP Business All-in-One

Summary of SolutionRequirements

A single solution to manage the entire business

A complete, on-demand business solution that is affordable,predictable, and easy to adopt.

A comprehensive, extensible, and customizablebusiness solution with support for industry-specificrequirements.



Challenges with Current Solutions

Outgrown your accounting-onlysystems.

Replace your point solutions, manual processes, and spreadsheets.

Outgrown your point solutions or legacy systems.

Nature of Operations

Relativelystraightforwardbusiness processes. Lower transaction volumes.

Moderately complex business processes. Moderatetransactionvolumes.

Deep, micro-vertical and industry-specific business processes.Demanding, high-volume product, manufacturing, and service operations.

TypicalOrganizationalStructure

Up to 5 locations and independent subsidiaries.

Multiple locations, multiple divisions, and independent subsidiaries.

Multiple locations, multiple divisions, and all types of subsidiaries.

IT Preferences Limited IT capability with preference for an on-premise system.

Limited IT capability with a preference for an on-demand solution.

IT capability with a preference for an on-premisesolution.

Typical Number of Employees

Less than 100 employees.

100-500employees.

100-2500employees.

SAP Business All-in-One Solutions

SAP Business All-in-One solutions allow you to choose from industry-specific solutions, qualified SAP partner solutions, or solutions created within the fast-start program.

Each SAP Business All-in-One solution is a prepackaged, industry-specific version of the SAP Business Suite with built-in content, tools, and methodologies for a cost-effective, turnkey implementation. SAP Business All-in-One solution partners offer out-of-the-box flexibility, combined with the power of SAP's world-class business applications.

Figure 4: SAP Business All-in-One



SAP Business All-in-One Solutions Details

SAP Business All-in-One solutions include the following:

SSolution Functionality

SAP ERP Effectively manage financials, human resources, operations, and corporate services.

SAP Customer Relationship Management (CRM)

Effectively manage all aspects of your customer relationships, from marketing, to sales, to service.

SAP Business Analytics Gain insight and improve decision making with tools and reports for financial and operational reporting.

SAP Best Practices Benefit from industry-specific configuration and business processes based on SAP's experience in industries worldwide.

SAP NetWeaver technology platform

Quickly and cost-effectively add on to your existing solution as your business grows and your needs change.

If your company has deeper needs in specific process areas, SAP's complete portfolio of business software can extend the functionality of your SAP Business All-in-One solution to address other critical facets of your business

SAP Business ByDesignSAP Business ByDesign is an adaptable, on-demand business offering designed specifically for medium sized companies. It provides transparency and control over all your operations, so you can immediately identify and respond to issues and opportunities. SAP Business ByDesign is adaptable and allows you to meet new business requirements with minimal time, effort, and cost.

With SAP Business ByDesign, SAP manages your software for you, so you can be confident about a successful deployment and predictable operations, with minimal cost of ownership.

Figure 5: SAP Business ByDesign



Business ByDesign Details

Business ByDesign includes the following solutions:

SSolution Functionality

Financials� Financial and management accounting

� Cash flow management

Customer Relationship Management� Marketing

� Sales

� Service

Human Capital Management� Organizational management

� Human resources

� Employee self-service

Supply Chain Management� Supply chain setup management

� Supply chain planning and control

� Manufacturing, warehouse, and logistics

Supplier Relationship� Sourcing

� Purchasing

Executive Management Support� Business performance management

Project Management� Management of projects

Compliance Management� Management of compliance

SAP Business OneSAP Business One is designed exclusively for small businesses. SAP Business One is a single, affordable business management solution that integrates the entire business across financials, sales, customers, and operations. With SAP Business One, small businesses can streamline operations, obtain instant and complete information, and accelerate profitable growth. Combined with additional industry-specific capabilities, SAP Business One can adapt to your unique and fast-changing needs as your business grows.



Figure 6: SAP Business One

SAP Business One Details

SAP Business One provides the following advantages:Rapid implementation

SAP Business One can be implemented within a few days and is easily maintained. Its familiar Microsoft Office environment allows occasional users to rapidly learn to use the software. The application is based on open technologies and can be readily extended with special functions.

Lower costs

SAP Business One is cost effective and offers a wide range of functions for integrated data processing.

Increased productivity and cost control

The user interface of SAP Business One is simple and easy to understand and users will quickly learn how to work with the system. This will increase productivity and help reduce costs.

Sound business decisions

SAP Business One allows managers to quickly access strategic information from all enterprise areas.

Scalability

When a company grows, processes usually become more complex and software requirements change. SAP Business One's flexible and efficient system technology can easily keep pace with the company's growth. SAP Business One can be extended by the functions your company requires. It also facilitates the transition to a more comprehensive IT system, such as SAP Business Suite.



SAP BusinessObjects

Figure 7: SAP BusinessObjects

The SAP BusinessObjects portfolio, from a product perspective, includes groups of technologies and applications.

SAP BusinessObjects

Groups of technologies and applications include:

SSAP BusinessObjects enterprise information management solutions

The primary focus of enterprise information management (EIM) is on delivering trusted information to the organization, which is used by a variety of applications and business users. “Turning data into decision-quality information you can trust.”

SAP BusinessObjects business intelligence solutions

Business intelligence (BI) delivers integrated reporting capabilities to business users for decision making. “Turning information into insight for better decision making.”

SAP BusinessObjects enterprise performance management solutions

Enterprise performance management (EPM) builds on the other areas, capturing and sharing information in a standard form. “Using insight and informed decisions to drive strategy and alignment.”

SAP BusinessObjects governance, risk, and compliance solutions

Governance, risk, and compliance (GRC) delivers a set of applications to manage risk, ensure that internal and external rules are followed and enforced, and control access to systems and information. “Making risk and compliance part of decision-making, strategy, and performance management."

Bringing together the SAP BusinessObjects portfolio with SAP’s business process platform helps companies achieve closed-loop business performance optimization. Decisions can be executed efficiently and effectively through industry-specific business processes. Process changes required for optimization can be easily implemented by combining process components on the platform. Execution can be monitored, and business events responded to, in real time across the business network. The power the full SAP portfolio, including the SAP BusinessObjects portfolio, brings together the world of making decisions and the world of executing them.



Industry ApplicationsSAP also offers industry-specific applications, which perform targeted, industry-specific business functions and processes. Many industries require solutions that are specially bundled and enriched with additional industry-specific functions and processes. SAP fulfills this requirement through the solution portfolios for industries.

Figure 8: Industry Packages

Industry Application Details

Industry offerings for more then 20 industries are available and include the following industries:

AAutomotive SAP for Automotive is designed to streamline and improve disjointed business practices, enabling you to closely manage many-tiered networks of customers, suppliers, and partners.

Banking SAP for Banking is based on a flexible, scalable infrastructure and provides a robust environment for incorporating new technologies, controlling core banking processes, and extending operations to the Internet.

Chemicals SAP for Chemicals delivers capabilities for sales and operations planning, quality management, recipe and batch management, and supply chain operations.

Healthcare SAP for Healthcare integrates your healthcare processes, from staffing and inventory to financials and patient-centric processes, on an open platform designed for growth.

Transportation & Logistics

SAP for Travel & Logistics handles all order volumes and supports complex business processes in procurement, fulfillment, returns management, warehousing, and value-added logistics.

Mining SAP for Mining enables you to meet the specific challenges of the mining industry by helping you manage your assets and operations and leverage global supply chain networks. As a result, you can increase efficiency and reduce costs.

Oil & Gas SAP for Oil & Gas solutions provide comprehensive tools that enable you to leverage key data, manage assets effectively, and maximize cash flow.



PPublic Sector SAP for Public Sector creates fast, flexible, and responsive e-government by electronically connecting public administrations with citizens, businesses, suppliers, and other organizations via the Internet. This enhances communications, streamlines services, and reduces costs.

Retail SAP for Retail provides a comprehensive solution where every piece of your retail value chain, from forecasting and planning to allocation and replenishment, must be focused on meeting and surpassing customer expectations.

SAP Applications and Components

FACILITATED DISCUSSIONPose specific business scenarios and ask how the lesson information applies.

FACILITATED DISCUSSIONCan an application share a component with another solution?

LESSON SUMMARYYou should now be able to:




Unit 1

13Learning Assessment

1. SAP is a solutions company.Determine whether this statement is true or false.

X True

X False

2. List at least three cross-industry or industry applications.

3. All SAP applications are role-based.Determine whether this statement is true or false.

X True

X False


Unit 1

14Learning Assessment- Answers

1. SAP is a solutions company.Determine whether this statement is true or false.

X True

X False

Business experience, strategy, and know-how are intangibles, which, bundled together with the vast flexibility, integration, and customizing potential of SAP software, have resulted in more powerful e-business solutions within specific industries and across industry borders.

2. List at least three cross-industry or industry applications.

Cross-industry applications: SAP Enterprise Portal, SAP CRM, SAP SCM, SAP SRM, SAP PLM, SAP ERP HCM, SAP ERP Financials

Industry packages: SAP for Aerospace & Defense, SAP for Automotive, SAP for Banking, SAP for Chemicals, SAP for Consumer Products, SAP for Engineering, Construction & Operations, SAP for Healthcare, SAP for High Tech, SAP for Higher Education & Research, SAP for Insurance, SAP for Media, SAP for Mill Products, SAP for Mining, SAP for Oil & Gas, SAP for Public Sector, SAP for Retail, SAP for Telecommunications, SAP for Utilities.

3. All SAP applications are role-based.Determine whether this statement is true or false.

X True

X False

The SAP NetWeaver Portal lets you customize your interface so that you can perform tasks associated with your role.


UNIT 2 Navigation

Lesson 1

Accessing The SAP System 18Exercise 1: Log On to the SAP System 21

Lesson 2

Personalizing the SAP Interface 26Exercise 2: Create Favorites 38Exercise 3: Personalize Your User Interface 41Exercise 4: Use Navigation Options 43

UNIT OBJECTIVES

� Log On to the SAP system

� Use the SAP interface

� Navigate in the SAP system

� Find help from the SAP Easy Access Screen


Unit 2Lesson 1

16Accessing The SAP System

LESSON OVERVIEWThis lesson shows you how to log on to an SAP system using the SAP Logon.

For many of the students, this lesson will be the first exposure to the SAP GUI. You may want to complete the exercise with the students ensuring each student is able to successfully logon to the correct the server.

The actual logon procedure and how to add an entry in the SAP Logon is different in each country and training location.

Business ExampleTo access the SAP system, you must familiarize yourself with the logon process and related screens. For this reason, you require the following knowledge:

� A good understanding of the logon process



Log On to the SAP SystemThe SAP Graphical User Interface (SAP GUI) is the general front-end program used to access SAP systems. Several variants of the SAP GUI are available and are adapted for use in different environments. In this lesson, we refer to the SAP GUI for the Windows environment.

The SAP GUI program connects the front-end computer with a specific SAP system. To start the SAP GUI, SAP provides another program: SAP Logon. When the user launches SAP Logon, a window displays a list of available SAP systems. This list is derived from a file on the front-end computer, and is usually preconfigured and made available to users.

Figure 9: The SAP Logon Program


Establish that SAP is a client system. Define the client within SAP as a separate entity with its own master data, configuration, transactions, and databases.

Before you log on for the first time, your system administrator will give you an initial password. During the process of logging on, you enter a new password--one that you alone will know. You will use your own password whenever you log on.

Note:These procedures may differ somewhat at your company. For more information, contact your system administrator.

The Logon Screen

Figure 10: Logging On to an SAP System

If there are system-wide messages, the System Messages dialog box appears. After you have read the messages, choose Continue (or press Enter) to close the dialog box.

How to Log On to the SAP SystemHow to access the SAP system.

11. Choose <<your training system>> in the SAP Logon window.

2. Choose Log on.

3. Enter <<your client>>.

This is 800 if you use the instructor training system,or the client that was assigned to your class if you use the participant system.

4. Enter <<your user ID>>

5. Enter <<your password>>.

6. Enter the language.

7. Choose Enter.The SAP Easy Access screen displays.

Lesson: Accessing The SAP System


Explain to the participants that they may be prompted to change their password.

Unit 2: Navigation


Unit 2Exercise 1

Log On to the SAP System

Business ExampleTo perform your daily business transactions, you must log on to the SAP system.

Every SAP subsidiary and every SAP training center works differently. In Germany, for example, the participants have a direct shortcut to the assigned training system in the Windows menu. In other countries, the participants have to maintain an entry in the SAP logon.Depending on the GUI version and the office connection, this is done in different ways. Please explain this to the participants and guide them through this first part.

Caution:This exercise depends on your location.The details may be different, depending on local settings, installations,the connection to SAP systems, and if the training is at an SAP facility or on site. Your instructor will explain the proper logon procedure.

Create a logon entry and access the appropriate system with the client, user ID, and password provided by the instructor.

11. Create an entry in the SAP GUI logon screen, based on the information provided by the instructor.

Field Entry

Your SAP Training System Provided by your instructor

Message Server Your instructor will tell you if this is required

SAP Router Your instructor will tell you if this is required

User Provided by your instructor

Password Provided by your instructor

Client Provided by your instructor

Language Provided by your instructor

New Password Create a new password of your choice

2. Use your logon entry to gain access to the SAP system with the information provided.


Unit 2Solution 1

Log On to the SAP System

Business ExampleTo perform your daily business transactions, you must log on to the SAP system.

Every SAP subsidiary and every SAP training center works differently. In Germany, for example, the participants have a direct shortcut to the assigned training system in the Windows menu. In other countries, the participants have to maintain an entry in the SAP logon.Depending on the GUI version and the office connection, this is done in different ways. Please explain this to the participants and guide them through this first part.

Caution:This exercise depends on your location.The details may be different, depending on local settings, installations,the connection to SAP systems, and if the training is at an SAP facility or on site. Your instructor will explain the proper logon procedure.

Create a logon entry and access the appropriate system with the client, user ID, and password provided by the instructor.

11. Create an entry in the SAP GUI logon screen, based on the information provided by the instructor.

Field Entry

Your SAP Training System Provided by your instructor

Message Server Your instructor will tell you if this is required

SAP Router Your instructor will tell you if this is required

User Provided by your instructor

Password Provided by your instructor

Client Provided by your instructor

Language Provided by your instructor

New Password Create a new password of your choice

a) Locate the SAP Logon program on your desktop.


Note:There are a variety of ways to find the program and a variety of places it could reside on your desktop. These variables depend on how the GUI software was installed.

bb) Choose New .

c) Enter <<Your SAP Training System>> in the Search for field.

d) Select the system ID (SID) from the list presented.

e) Select Next .

f) Under Group / Server, select Public. If Public is not available, select Space.

g) The system will display a list of defined server groups for your training system. Select the Public group if it is available. If Public is not available, select Space.

h) Select Next twice.

i) Select Finish.

Note:If desired, you can enter a different system name for this system.

The new logon entry appears in the list of SAP systems.

2. Use your logon entry to gain access to the SAP system with the information provided.a) From the SAP logon pad, select the system provided by the instructor.

b) Choose Log on.

c) Enter the Client: <<to be provided by the instructor>>.

d) Enter the Password: <<to be provided by the instructor>>.

e) Enter the Language: <<to be provided by the instructor>>.

f) Choose Enter .

Note:You might be asked to change your password. If so, continue with the following steps. If you are not asked, skip to solution step j.

g) In the password change dialog box, enter your own new password in the New Password field.

h) Enter your password again, in the Repeat Password field, to confirm the password change.

i) Choose Enter .


jj) Choose Enter as many times as needed, reading any system messages that are displayed, until you are returned to the SAP Easy Access screen.




Lesson: Accessing The SAP System


Unit 2Lesson 2

22Personalizing the SAP Interface

LESSON OVERVIEWThis lesson shows you how to efficiently work in the SAP system by personalizing your screens and using different navigation options.

Business ExampleTo efficiently use the SAP system, you must be able to navigate the screens and utilize the various options available. For this reason, you require the following knowledge:

� A clear understanding of screen structure elements

� How to create a personal favorites list of transactions

� How to personalize screens

� How to navigate various screens

� How to find help





Screen Structure Elements

In this section, you will familiarize the participants with the layout of the SAP Easy Access screen. Explain that the SAP Easy Access screen is the system default screen after logging on. This default can be changed to any desired start transaction using Extras -> Set start transaction.

The main focus of this lesson is to explain how to navigate within the system. Ensure that participants are comfortable with the overall layout and navigation before moving on. If you have participants who are interested in a specific application area , you can prepare and use demonstrations that are more suitable for your audience.

From Col.92 on, the participants and the instructors have an assigned user menu (this is centrally created and assigned to SAP01-INS-XX and the template user SAP01-99).

The SAP Easy Access screen is the initial default screen in SAP systems.


Figure 11: SAP Easy Access

The left side of the screen contains a tree hierarchy of the available menus. The graphic on the right side is made available centrally by your system administrator and cannot be customized by individual users. The graphic could, for example, be the company's logo.

SAP Screen Structure

Figure 12: Screen Structure

Please note that the figure is a combination of screens and does not exist as you see it in the system. Two system releases were used for this screen shot, an 6.0 system for the main screen and a 5.0 system for the small radio button part.

An SAP screen can contain the following screen elements:

CCommand field You can start applications directly by entering the transaction code in the command field. You can find the transaction code for an application either in the Overview menu on the SAP Easy Access screen, in the status bar, or in the application itself under System -> Status .

Lesson: Personalizing the SAP Interface


MMenu bar The menu bar is the top line of any primary window in the SAP system. The menu displayed depends on the application you are using.

Standard toolbar The buttons in the standard toolbar are shown on every SAP screen. If certain buttons are not available in an application, they are deactivated (greyed out). If you mouse over a button, the system displays a flag with the name or function of that button.

Title bar The title bar displays the name of the function that you are currently using.

Applicationtoolbar

The application toolbar shows the buttons available in the application you are currently using.

Check boxes Check boxes allow you to select several options from a group of fields.

Radio buttons Only one radio button option may be selected.

Tab A tab page allows you to organize several screen areas to improve clarity and organize data.

Status bar The status bar displays information on the current system status, such as warnings and errors. You can also change the display variant to show, for example, the transaction code of the transaction you are currently using.

Other elements Other elements include input fields and buttons.

Role-Based User Menus

Explain that role-based menus allow for limiting the wide range of functionality provided by SAP solutions to those required by the specific user according to the assigned role. Point out that when a user is assigned a role, they are assigned not only the menu, but also the authorizations they require to access the information.

SAP currently delivers over 1200 predefined roles.

SAP offers two formats to display a menu of transactions, reports, or Web-based applications to the user.

Menu formats include the following:

SAP standard menu This is a complete list of all possible transactions and reports offered by the system.

Role-based user menu

This is a collection of activities used in business scenarios. Users can access transactions, reports, or Web-based applications through their role-based menus.

Unit 2: Navigation


Figure 13: Role-Based User Menus

Users are assigned the role menu and the authorizations associated with the role. Authorizations control access to the specific activities required to perform the job function. The system administrator can tailor role-based menus to specific job requirements by adding or removing menu entries.

Caution:As a system administrator, you may be responsible for setting up role-based menus, which are then transferred to the front end. Therefore, keep roles as small as possible, since large roles could take a long time to transfer to the front end.

Favorites

Examples of items that can be added to a favorites list include the following:

� Transactions

� Links to files

� Internet addresses

Hint:Favorites can be organized into folders, and you can edit your favorites in the SAP Easy Access screen using the Favorites menu.



Figure 14: Favorites Menu

The favorites list, which is initially empty, can be edited according to your preferences. Only you can view your favorites list.

How to Create a Favorite TransactionHow to create a favorites entry using the transaction for posting incoming payments in accounts receivable.

11. From the SAP Easy Access screen, choose Accounting -> Financial Accounting -> AccountsReceivable -> Document Entry .

2. Choose Incoming Payments.

3. Choose Favorites -> Add .

4. Choose the transaction.

Control Your User InterfaceYou have several personalization options available to help you set up your working environment.

Some of the personalization options are as follows:

� Change the layout of the SAP Easy Access screen.

� Track your input history to provide input help.

� Display status messages in a dialog box instead of on the status bar.

� Set preferences to determine how data is displayed.

� Adjust the color and behavior of the screens and fields.

Status BarThe status bar provides general information on the SAP system and the transaction or task on which you are working. System messages are displayed on the left side of the status bar, and system information is displayed on the right side.

Unit 2: Navigation


Figure 15: Status Bar

Discuss and demonstrate the location of the different types of information available on the status bar. Explain the difference between the following types of system messages: informational, warning, and error.

The following information can be displayed in the status bar:

� System

� Client

� User

� Program

� Transaction

� Response time

To hide the information status fields, choose the arrow to the left of the fields.

How to Personalize Your User InterfaceUse this demonstration to show the participants several of the many personalization options available in the SAP system, such as how to customize the local layout and the user profile.

11. Choose System -> User profile -> Own data .

Provide a general description of the information that the user can maintain with for their user profile.

From the standard toolbar, choose Customizing of local layout, under Options -> VisualDesign. You also have the option to change the font size on your SAP GUI screen. You will need to log out and log back on to the system again before your changes to the settings will take effect.Choose Defaults tab.

Review the different settings the user can make from the Defaults tab. This is especially helpful for people who may want to change their date, decimal or currency formats.



Close the Maintain User Profile window. Choose the Customizing of local layout button .

In this demonstration, show participants the personalization available under Options . Point out that there are other opportunities for further personalization using the other menu items.Choose Options .

Take some time explaining the different options the user can set. For example:

� Set the error, information, and warning messages to display in a dialog box.

� Explain that the cursor can be modified.

Multiple SessionsThe SAP system tracks multiple logons. The primary reasons for tracking multiple logons are security and licensing. If the same user logs on more than once, the system displays a warning message. for each subsequent logon.

Warning messages include the following options:

� Continue with this logon and end any other logons of this user in the system.

� Continue with this logon without ending any other logons in the system (this is tracked).

� Terminate this logon.

You should only be logged on once per SAP system. Using multiple sessions allows you to open several windows at the same time on the same computer.

Figure 16: Multiple Sessions

The user can create a new session at any time. This is helpful if you are in the middle of a transaction and need to verify information to complete the transaction. You can create several sessions, each independent of the others. You will not lose any data in sessions that are already open. For example, closing the first session does not cause the other sessions to close.

Too many open sessions can result in slower system performance. Your system administrator may limit the number of sessions users can create.

Before you end a session, save any data you want to keep.

Unit 2: Navigation


Hint:The system does not prompt you to save your data when you end a session.

Navigation

Introduce the participants to the three basic options for navigating in the system. At this point, touch on them very briefly because each is covered in more detail as we progress through this lesson.

Explain navigation in SAP systems using the SAP standard menu, the menu bar and the command field (transaction codes). Point out that transaction codes can be found by selecting System -> Status .

The following options are available when navigating in the SAP system:

Navigation in the SAP system includes the following:

� Enter transaction codes in the command field.

� Choose items from menus in the menu

� Choose items from the favorites list.

� Choose from the role-based user menu.

Figure 17: Navigation Options

Menus allow you to find a specific transaction when you do not know the transaction code. The menu is organized according to the task you are performing in the SAP system. Menus are drop-down lists; therefore, when you choose a menu item, further options appear.

Transaction Codes

Participants frequently ask about transaction code lists. You may want to mention a simple method for administrators to create their own lists of transaction codes: select the entries required for the list from the table TSTCT and save them in Excel. The easiest way of doing this is to use the functions System -> List -> Save -> Local file . Users do not need to create



transaction code lists in this way since they have their role-based menus and usually lack the authorizations to do so.

Every transaction or function in the system has a transaction code. You can enter the transaction code in the command field to initiate the transaction or function. This is convenient, provided you know the transaction code for the required transaction or function. You can find the transaction code by first navigating to a transaction, and then choosing System -> Status .

The following entries are time-saving tips for using transaction codes:

EEntry in the Command Field Result

/n Cancels the current transaction

/nXXXX Initiates the specified transaction directly from another transaction

/o Displays an overview of sessions

/oXXXX Initiates the specified transaction in a new session

/nend Ends the logon session with a confirmation dialog box

/nex Ends the logon session without a confirmation dialog box

/i Deletes your current session

How to Use Transaction CodesHow to use transaction codes and the command field.

Hint:Show the different possibilities of how to find a transaction code by:

-Choosing System Status (when the transaction is already on the screen).- Choosing Extras Technical details (from the SAP Easy Access).- Activating the display of the transaction in the status bar.- Activating the display of the transaction in the SAP menu or user menu by choosing Extras Settings and then choosing Display technical names.

In the detailed description of this demonstration, only the first system status is explained.

1. Navigate to the transaction from the SAP Easy Access screen and choose HumanResources -> Personnel Management -> Administration -> HR Master Data.

2. Choose Maintain.

3. Choose System -> Status .Point out where to locate the transaction code, which is PA30.

Unit 2: Navigation


44. Return to the SAP Easy Access screen.

5. Enter PA30 in the Command field.

6. Press Enter.

The Maintain HR Master Data screen is displayed.

Help Features

Point out that the Help menu is available on the menu bar of every screen.

The SAP system provides comprehensive online help, which is available from any screen in the system.

The help menu contains the following options:

Application help Application help displays comprehensive help for the application currently opened on your screen.

SAP Library SAP Library contains online documentation.

Glossary You can search for definitions of terms in the glossary.

Release notes Release notes describe functional changes that occur between SAP system releases.

SAP Service Marketplace

A user ID and a password are required to access the SAP Service Marketplace.

Create Support Message

With support messages, you can directly contact the responsible solution manager support unit from your SAP system.

Settings You can select settings for help (for example, how you would like F1 and F4 help to be displayed).

Figure 18: Getting Help



Field HelpF1 is used to find help on fields, menus, functions, and messages. F1 help also provides technical information on the relevant field (for example, the parameter ID and the technical name of the field).

Figure 19: Field Help: F1

F4 HelpF4 is used to find information on the possible values that can be entered in the field. You can access F4 help for a selected field by choosing the button immediately to the right of that field, or by selecting the F4 key.

Figure 20: Field Help: F4

How to Find Field-Level HelpHow to find the field-level help (F1 and F4).

11. Access the Customer Master Display transaction. From the SAP Easy Access screen, choose Accounting -> Financial Accounting -> Accounts Receivable -> Master Records -> Display .

Unit 2: Navigation


22. Place the cursor on the Customer field and select F1.

3. Choose Technical info.Point out the technical information available for that particular field.

4. Close the F1 help again, make sure that the cursor is placed on the Customer field, and select F4. Select the Customers (by company code) tab. Enter Company code 1000 and

Name Customer*. Choose Start search .

Demonstrate the use of the search functionality, how to sort the list, and how to reduce the entries (by specifying more detailed search terms).



Unit 2Exercise 2

Create Favorites

Business ExampleYou have specific transactions, files, and Web sites that you use frequently. To facilitate access, you must create entries in your Favorites folder.

Create Favorite TransactionsCreate a variety of favorite transactions that will appear in the Favorites menu on your SAP Easy Access screen.

11. Create a favorite for the transaction to post an incoming payment in accounts receivable. This is transaction code F-28.

2. Create a favorite for the transaction to display a customer (centrally) in Sales and Distribution. This is transaction code XD03.

3. Create a favorite for the transaction to maintain master data in human resources. This is transaction code PA30.


Unit 2Solution 2

Create Favorites

Business ExampleYou have specific transactions, files, and Web sites that you use frequently. To facilitate access, you must create entries in your Favorites folder.

Create Favorite TransactionsCreate a variety of favorite transactions that will appear in the Favorites menu on your SAP Easy Access screen.

11. Create a favorite for the transaction to post an incoming payment in accounts receivable. This is transaction code F-28.

a) From the SAP Easy Access screen, choose Accounting -> Financial Accounting -> Accounts Receivable -> Document Entry .

b) Choose Incoming Payments .

Caution:Do not double-click Incoming Payment. You want to highlight the menu item, not initiate the transaction.

This menu path is at the top of your window. You can also choose Add to Favorites .

c) Choose Favorites -> Add .

2. Create a favorite for the transaction to display a customer (centrally) in Sales and Distribution. This is transaction code XD03.

a) From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> MasterData -> Business Partners -> Customer -> Display .

b) Choose Complete .

Caution:Do not double-click Complete. You want to highlight the menu item, not initiate the transaction.


Hint:This menu path is at the top of your window. You can also choose Add to Favorites .


33. Create a favorite for the transaction to maintain master data in human resources. This is transaction code PA30.

a) From the SAP Easy Access screen, choose Human Resources -> PersonnelManagement -> Administration -> HR Master Data .

b) Choose Maintain .

Caution:Do not double-click Maintain. You want to highlight the menu item, not initiate the transaction.



Unit 2Exercise 3

Personalize Your User Interface

You are a new user of the SAP system and would like to personalize your user interface to facilitate navigation. For this reason, you must make adjustments to the local layout of your screen.

11. You would like system and error messages to appear in a dialog box instead of on the status bar.

2. Change the display of the date and currency format.


Unit 2Solution 3

Personalize Your User Interface

You are a new user of the SAP system and would like to personalize your user interface to facilitate navigation. For this reason, you must make adjustments to the local layout of your screen.

11. You would like system and error messages to appear in a dialog box instead of on the status bar.a) From the SAP Easy Access screen, navigate to the standard toolbar and choose

Customize Local Layout .

b) Choose Options

c) Choose Interaction Design

d) Choose Notifications

e) In the Messages area of the screen, select:

� Show success messages in a dialog box

� Show warning messages in a dialog box

� Show error messages in a dialog box

f) Choose Apply .

g) Choose OK .

2. Change the display of the date and currency format.a) From the SAP Easy Access screen, navigate to the main menu bar and choose System -

> User profile -> Own data .The Maintain User Profile screen opens in a new window.

b) Choose the Defaults tab.

c) Change the decimal notation and date to the format of your choice.

d) Choose Save .


Unit 2Exercise 4

Use Navigation Options

Execute Transaction CodesYou are new to SAP and need to familiarize yourself with transaction codes. For this reason, you execute a few transaction codes using the command field.

11. Execute the transaction codes in the table and record each activity in the space provided. Do not return to the SAP Easy Access screen after viewing each transaction code.

Hint:If you log out, please log back on to the system.

Entry in the Command Field Result

su3

sm04

/nsm04

/nend

Navigate to Find Transaction codesYou are new to SAP and would like to familiarize yourself with transaction codes using the folders in the SAP Easy Access screen. To do this, you navigate the folders in the SAP Easy Access screen to find transaction codes.

1. Display a list of users who are logged on to the system.

2. Display the transaction code for this transaction using the System status menu.

3. Return to the SAP Easy Access screen and use the transaction code to initiate the transaction to display the user overview, which provides a list of users who are logged on to the system.


Unit 2Solution 4

Use Navigation Options

Execute Transaction CodesYou are new to SAP and need to familiarize yourself with transaction codes. For this reason, you execute a few transaction codes using the command field.

11. Execute the transaction codes in the table and record each activity in the space provided. Do not return to the SAP Easy Access screen after viewing each transaction code.

Hint:If you log out, please log back on to the system.


su3

sm04

/nsm04

/nend

a) From the SAP Easy Access screen, enter transaction code su3 in the command field and choose nter.

b) Record the name of the transaction in the result section of the table below.

c) From the screen displayed using transaction code su3, enter SM04 in the command field and record the result.

d) From the screen displayed using transaction code sm04 , enter /nsm04 and record the result.

e) From the screen displayed using transaction code /nsm04, enter /nend and record the result.


su3 Initiates the screen for maintaining your own user settings.

sm04 Does not initiate a transaction. A transaction can only be started directly from the SAP Easy Access screen, unless you use a prefix.


EEntry in the Command Field Result

/nsm04 Initiates the user overview successfully. /n first ends the active transaction and then initiates the specified transaction.

/nend A logoff confirmation dialog box appears. You can now exit the system.

Navigate to Find Transaction codesYou are new to SAP and would like to familiarize yourself with transaction codes using the folders in the SAP Easy Access screen. To do this, you navigate the folders in the SAP Easy Access screen to find transaction codes.

1. Display a list of users who are logged on to the system.a) From the SAP Easy Access screen, choose Tools -> Administration -> Monitor ->

System Monitoring -> User Overview .

2. Display the transaction code for this transaction using the System status menu.a) Double-click User Overview.

b) Choose System -> Status.

c) Locate the transaction code, which is SM04.

3. Return to the SAP Easy Access screen and use the transaction code to initiate the transaction to display the user overview, which provides a list of users who are logged on to the system.a) Close the System Status dialog box by choosing Cancel .

b) Exit out of the User List by choosing Back .

c) Enter sm04 in the command field.

d) Choose Enter .

e) Choose Exit to exit the screen and return to the SAP Easy Access menu.






Unit 2: Navigation


Unit 2


1. Which of the following are required to log on to the SAP system?Choose the correct answers.

X AA Enter a specific client number

X B Enter your user ID

X C Enter your password

X D Customize your settings

X E Set your language preference

2. You can only have one SAP system session open at a time.Determine whether this statement is true or false.

X True

X False

3. What menus are standard on all SAP screens?Choose the correct answers.

X A System

X B Help

X C Information

X D Environment

4. Which of the following provides general information on the SAP system and transaction or task on which you are working?Choose the correct answer.

X A Status bar

X B Menu path

X C Role bar

X D Application toolbar


5. In the SAP Easy Access menu, you can create a favorites list containing:Choose the correct answers.

X AA Web addresses

X B Transactions

X C Links to files

X D Language preferences

X E Attachments

6. Select all of the following entries that are valid in the command field. If you are uncertain, try them on the system before you select the correct answers.Choose the correct answers.

X A /nend

X B /nex

X C ?sm04

X D /nsm04

X E sm04

7. You have navigated to a transaction you have never used before and would like to learn more about the transaction before completing it. Which of the following forms of help would most efficiently provide the information you are looking for?Choose the correct answers.

X A F1

X B F4

X C Application help

X D SAP Library

X E Glossary

X F Release notes

8. List and describe three different types of online help that are available in the SAP system.

Unit 2: Learning Assessment


9. You would like to preset a value for a field that you have to enter frequently. To do this, you need the parameter ID. Which help function would you use to locate the parameter ID when you are on the field?Choose the correct answers.

X AA F1

X B F4

X C System help

X D F11

X E Application help

10. Application help, which is available through the Help menu, is context-sensitive. This means that it will link you directly to the help for whatever application area of the system you are currently working in.Determine whether this statement is true or false.

X True

X False



Unit 2


1. Which of the following are required to log on to the SAP system?Choose the correct answers.

X AA Enter a specific client number

X B Enter your user ID

X C Enter your password

X D Customize your settings

X E Set your language preference

That is correct. You do not customize your settings or set the language preference until you are already logged on to the SAP system.

2. You can only have one SAP system session open at a time.Determine whether this statement is true or false.

X True

X False

That is correct. You can create up to 16 sessions. Each session is independent of the others.

3. What menus are standard on all SAP screens?Choose the correct answers.

X A System

X B Help

X C Information

X D Environment

That is correct. The System menu contains functions that affect the system as a whole, such as Create session, User profile, and Log off. The Help menu provides various forms of online help.


4. Which of the following provides general information on the SAP system and transaction or task on which you are working?Choose the correct answer.

X AA Status bar

X B Menu path

X C Role bar

X D Application toolbar

That is correct. The status bar contains information on system messages, as well as system information such as client, user, transaction codes, and response time.

5. In the SAP Easy Access menu, you can create a favorites list containing:Choose the correct answers.

X A Web addresses

X B Transactions

X C Links to files

X D Language preferences

X E Attachments

That is correct. Favorites can consist of Web links, standard and customer transaction codes, and links to other files such as Microsoft Word documents or PowerPoint files.

6. Select all of the following entries that are valid in the command field. If you are uncertain, try them on the system before you select the correct answers.Choose the correct answers.

X A /nend

X B /nex

X C ?sm04

X D /nsm04

X E sm04

You can enter any valid transaction code directly on the SAP Easy Access screen. If you are in another screen,you need to enter /n in front of the transaction code for the transaction code to work. /nend and /nex are two different logoff options. ?sm04 is not a valid entry.

Unit 2: Learning Assessment- Answers


7. You have navigated to a transaction you have never used before and would like to learn more about the transaction before completing it. Which of the following forms of help would most efficiently provide the information you are looking for?Choose the correct answers.

X AA F1

X B F4

X C Application help

X D SAP Library

X E Glossary

X F Release notes

Although you could locate the information in the SAP Library, the most efficient method is the application help because it is context-sensitive.Here you will find comprehensive information about the application.

8. List and describe three different types of online help that are available in the SAP system.

9. You would like to preset a value for a field that you have to enter frequently. To do this, you need the parameter ID. Which help function would you use to locate the parameter ID when you are on the field?Choose the correct answers.

X A F1

X B F4

X C System help

X D F11

X E Application help

F1 provides help on the purpose of a specific field, and also provides technical information for the field. Here you will find the parameter ID for the field in question.



10. Application help, which is available through the Help menu, is context-sensitive. This means that it will link you directly to the help for whatever application area of the system you are currently working in.Determine whether this statement is true or false.

X True

X False



UNIT 3 System Wide Concepts

Lesson 1

Identifying Elements of SAP's Organizational Structure 56Exercise 1: Display a Customer Master Record 62

UNIT OBJECTIVES

� Identify the elements of SAP's system-wide concepts


Unit 3Lesson 1

50Identifying Elements of SAP's Organizational Structure

LESSON OVERVIEWThis lesson explains the system-wide concepts on which the SAP system is based.

Business ExampleYou are part of the implementation team and must be able to define and explain the system-wide concepts on which your organizational structure and master data will be based. For this reason you require the following knowledge:

� A good understanding of how organizational elements are used to depict an organizational structure

� A good understanding of how master data is set up and made available to users

� A basic understanding of transactions that execute business processes



Organizational Elements

Explain that the focus of this lesson is to develop an understanding of the system-wide concepts of the SAP System. These concepts, organizational elements, master data, and transactions, are the basic elements designed and utilized to represent a company’s enterprise structure and business processes within the SAP System. Emphasize that these are common threads across all SAP applications.

Other SAP Business Suite components are also based on these principles, but there the concepts often look different in the details. For example in SAP SCM some of the organizational units play a different role (they are more on the same level as customers and suppliers for planning purposes) and sometimes terms change (like from material to products).

The exercises re-enforce the ideas of master data and organizational elements. Students should understand that master data and organizational element ideas extend to all areas of the ERP system

One of the first steps in implementing SAP applications is to define the specific organizational structures of your company in the SAP system. Organizational units are provided for accounting, logistics, and human capital management functions. The first step is to analyze the structures and procedures in your company, and then assign them to the SAP structures.

Organizational elements include the following:


CClient: The client is the highest-level element of all organizational elements. It represents the enterprise/headquarters group.

Company code: The company code is a legal, independent accounting unit representing the central organizational element of financial accounting. The company code represents the tax law (national) view of the company, the fiscal calendar, the local currency, and the tax reporting requirements.

Plant: The plant is the central organizational unit of production. A plant can manufacture product, distribute product, or provide a service.

Storage location: The storage location differentiates material stock within one plant according to the storage location.

Sales organization: The sales organization is the central organizational element in sales order management. It controls the terms of sale to the customer.

Distributionchannel:

Distribution channels are used to define how different products reach consumers, for example, wholesale.

Organizational unit: Organizational units describe the various business units that exist in a company. Organizational units are often loosely defined as functional or regional departments.

Position: Positions are the individual employee assignments within your company.

The figure shows typical SAP enterprise terminology for organizational elements. Emphasize that organizational elements are used to represent a company’s enterprise structure within SAP either for legal and/or business-related purposes. Highlight this by using some of the examples noted on the figure. Point out that organizational elements may be used by all applications (client), multiple applications (plant), or a single application (sales organization). Explain we are showing a simple structure and that there are other organizational elements. This section is important to provide participants with an overview of IDES, our demo company.. IDES AG operates on a global level with global business partners. The participants need to be made aware that the different solutions overlap. You can find information about IDES in the SAP Corporate Portal under "/go/IDES". The sample of IDES is available for customers as well.

IDES is a demo system developed and used by SAP. IDES is an international company that is dependent upon collaborations with external business partners. IDES operates worldwide and has a number of subsidiaries.

Lesson: Identifying Elements of SAP's Organizational Structure


Figure 21: Organizational Structure: Terminology

Master Data Concepts

Since this is the only unit where master data will be discussed take your time explaining the concept.In this lesson, the participants will have an opportunity to display several types of master data.

Be aware that the concepts here are ERP focused. They change when additional Business Suite applications are added.

In SAP, master data is created centrally and is available to all applications and all authorized users. Storing master data centrally means data records are always consistent, up to date, and free of redundancy. Master data is organized into views that are assigned to organizational elements (for example, plant, organizational unit, and so on). The segmented structure of master records makes it possible to flexibly depict the various organizational structures of an operation.

When the corresponding data (such as information on customers or materials) is integrated in one single database object, data redundancy is no longer an issue and data integrity is enhanced. All areas use the same stored data, including sales, purchasing, inventory management, materials planning, invoice verification, finance, and human resources.

Customer Master

Explain to participants that the customer master contains key information that defines the business relationship between a company and its customer, for example ship-to information, delivery requirements, billing terms and payment terms. Point out that the information in the customer master is organized into three views with each located at a different organizational level: General Data (Client), Financial Accounting Data (Company Code), and Sales Data (Sales Area).

This is of course still the “old” SD customer master. We do not use Business Partners in this unit nor in this course.

Unit 3: System Wide Concepts


A customer master record contains key information that defines the business relationship between a company and the customer. Company code data controls the posting procedure and subsequent processing, such as payments. Sales organization data provides information on customers to support the execution of business processes such as entering sales orders, shipping, billing, and processing payments.

The structure of customer master records includes the following information:

GGeneral data: This data is relevant to every company code and every sales organization in a company.

Data for company codes:

This data reflects company-specific agreements with the customer.

Data for sales: This data has different characteristics for a company’s sales organizations and channels.

The layout of customer master records may also include special requirements.

Figure 22: Master Data: Customer Master

How to Display a Customer Master Record

1. From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> MasterData -> Business partners -> Customer -> Display -> XD03 Complete .

2. Display the details of the customer master record of customer RohrerXX for company code 1000 and sales area 1000/10/00.

3. The required steps are detailed in the Display a Customer Master exercise.

4. Complete a brief review of the structure of the customer master record. Highlight the different views and content of the master data and the sales and finance integration.

Material Master

This figure introduces a second important type of master data: material master. The figure highlights how the data in the material master is grouped into views that are organized by business function. The figure also shows the type of information maintained in the material master. Note: the majority of the views in a material master are at plant level.



The material master contains all of the key information a company needs to manage a material within its organization. The material master defines, among other things, how a product is sold, manufactured, purchased, inventoried, accounted, and calculated. The information in the material master is grouped into views that are organized by business function.

Figure 23: Master Data: Material Master

Transactions

Review the terminology for transactions(executing business processes) and documents (data record of a specific transaction). An example transaction is a create sales quote and the resulting document is a sales quote. Emphasize how organizational and master data are integrated during transaction processing. Explain that whenever possible, master data is copied during transaction processing thus avoiding re-entry of data.

Transactions are application programs that execute business processes in the SAP system. Whenever possible, master data is copied during transaction processing, thus avoiding re-entry of data. For example, when executing the transaction create sales order, the user must enter the customer master number. The customer master number is copied into all of the relevant customer information areas. Once the material master numbers are entered for the items being ordered, the relevant material data will be copied to the sales order.When performing each transaction, applicable organizational elements must be entered. For example, by specifying the sales organization, the appropriate sales group is given credit for the sales activity. The designation of the plant and storage location determines product sourcing.



Figure 24: Transactions

Whenever a transaction is executed in the system, a document is created. This document is a data record of the transaction and contains all of the relevant, predefined information from the master data and organizational elements.



Unit 3Exercise 1

Display a Customer Master Record

Business ExampleYour are a customer service administrator and are responsible for the maintenance of customer information. For this reason, you must access customer master records and ensure their accuracy.

Display a Customer Master RecordNavigate to a customer master record and take note of information related to the organizational areas of general data, sales, and company code.

The exercises within the System-wide concepts unit use the Procurement area as an example to re-enforce the ideas of master data and organizational elements. Remind students that master data and organizational element ideas extend to all areas of the ERP system

11. Using the information provided in the table, display the customer master record.

Hint:Remember, ## refers to the group number assigned by your instructor.

Field Data

Customer Rohrer##

(Rohrer AG Gr.##)

Company Code 1000

(IDES AG)

Sales Organization 1000

(Germany Frankfurt)

Distribution Channel 10

(Final Customer Sales)

Division 00

(Cross-division)

2. Locate and record the following general data.

Field Data

Street/House number

City


FField Data

Search Term

3. Locate the following company code data.

Hint:Choose the Company Code Data icon from the application toolbar.

Field Data

Recon.account

Hint:The Reconciliation Account in the general ledger is the account that is updated parallel to the subledger account for normal postings (for example, invoice or payment).

4. Locate the following sales area data.

Hint:Choose the Sales Area Data icon from the application toolbar.

Field Data

Shipping conditions

Terms of payment


Unit 3Solution 1

Display a Customer Master Record

Business ExampleYour are a customer service administrator and are responsible for the maintenance of customer information. For this reason, you must access customer master records and ensure their accuracy.

Display a Customer Master RecordNavigate to a customer master record and take note of information related to the organizational areas of general data, sales, and company code.

The exercises within the System-wide concepts unit use the Procurement area as an example to re-enforce the ideas of master data and organizational elements. Remind students that master data and organizational element ideas extend to all areas of the ERP system

11. Using the information provided in the table, display the customer master record.

Hint:Remember, ## refers to the group number assigned by your instructor.

Field Data

Customer Rohrer##

(Rohrer AG Gr.##)

Company Code 1000

(IDES AG)


(Germany Frankfurt)

Distribution Channel 10

(Final Customer Sales)

Division 00

(Cross-division)

a) From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> MasterData -> Business Partners -> Customer -> Display .

b) Double-click Complete .

c) Enter Customer: Rohrer##.


dd) Enter Company Code: 1000.

e) Enter Sales Organization: 1000.

f) Enter Distribution Channel: 10.

g) Enter Division: 00.

h) Choose Enter .

2. Locate and record the following general data.

Field Data

Street/House number

City

Search Term

a) Choose the Address tab.

b) Record the Street name in the table provided above: Waldstrasse 86–90.

c) Record the City in the table provided above: Berlin.

d) Record the Search term in the table provided above: SAP01.

3. Locate the following company code data.

Hint:Choose the Company Code Data icon from the application toolbar.

Field Data

Recon.account

Hint:The Reconciliation Account in the general ledger is the account that is updated parallel to the subledger account for normal postings (for example, invoice or payment).

a) Choose the Company Code Data icon.

b) Choose the Account Management tab.

c) Record the Recon. Account in the table provided above: 140000.

4. Locate the following sales area data.

Hint:Choose the Sales Area Data icon from the application toolbar.


FField Data

Shipping conditions

Terms of payment

a) Choose the Sales Area Data icon.

b) Choose the Shipping tab.

c) Record the Shipping conditions in the table provided above: 10 (immediately).

d) Choose the Billing Document tab.

e) Record the Terms of payment in the table provided above: ZB01.

f) Choose Exit .


Unit 3


1. Organizational elements define a company's enterprise structure within the SAP system for legal or business-related purposes.

Determine whether this statement is true or false.

X True

X False

2. Which of the following are examples of organizational elements?

Choose the correct answers.

X AA Company code

X B Client

X C Plant

X D All of the above

X E None of the above

3. Which of the following are true statements about master data?


X A Master data is created centrally and is available to all applications and all authorized users.

X B Master data decreases data redundancy.

X C Master data is organized into views that are assigned to organizational elements.

4. Name the two types of master data discussed in this lesson.


X A Plant and customer

X B Material and customer

X C Material and storage location

X D None of the above


5. Which of the following is a true statement about customer master data?Choose the correct answers.

X AA Customer master data contains key information that defines the business relationship between a company and its customer.

X B Customer master data contains material-specific parameters that support execution of business processes.

X C Customer master data must be created for each company that plans to sell to that customer.


6. Transactions are application programs that execute business processes in the SAP system.Determine whether this statement is true or false.

X True

X False

7. What is created in the system each time a transaction is executed?Choose the correct answers.

X A Report

X B Log

X C Document

X D Inventory



Unit 3


1. Organizational elements define a company's enterprise structure within the SAP system for legal or business-related purposes.Determine whether this statement is true or false.

X True

X False

A company’s enterprise structure is mapped to the SAP applications using organizational elements. Organizational elements are the mechanism for defining a company’s enterprise structure within the SAP system for legal and business-related purposes.

2. Which of the following are examples of organizational elements?Choose the correct answers.

X AA Company code

X B Client

X C Plant



Organizational elements include legal company entities, plants, storage locations, sales offices, and profit centers, and may be assigned to a single application (for example, sales organization is assigned to sales order management) or to several applications(for example, plant to procurement and production planning).


3. Which of the following are true statements about master data?Choose the correct answers.

X AA Master data is created centrally and is available to all applications and all authorized users.

X B Master data decreases data redundancy.

X C Master data is organized into views that are assigned to organizational elements.

When all of the corresponding data (such as customer and material) is integrated into one single database object, the problem of data redundancy is no longer an issue and data integrity is enhanced. All areas can use the stored data, including sales, purchasing, inventory management, materials planning, invoice verification, and so on.

4. Name the two types of master data discussed in this lesson.Choose the correct answers.

X A Plant and customer

X B Material and customer

X C Material and storage location


A customer master contains key information that defines the business relationship between a company and its customer. A material master contains all of the key information a company needs to manage a material within its organization.

5. Which of the following is a true statement about customer master data?Choose the correct answers.

X A Customer master data contains key information that defines the business relationship between a company and its customer.

X B Customer master data contains material-specific parameters that support execution of business processes.

X C Customer master data must be created for each company that plans to sell to that customer.


The customer master contains key information that defines the business relationship between a company and its customer. These customer-specific parameters support execution of business processes.



6. Transactions are application programs that execute business processes in the SAP system.Determine whether this statement is true or false.

X True

X False

Transactions are application programs that execute business processes in the SAP system. Whenever possible, master data is copied during transaction processing, thus avoiding re-entry of data.

7. What is created in the system each time a transaction is executed?Choose the correct answers.

X AA Report

X B Log

X C Document

X D Inventory

Whenever a transaction is executed in the system, a document is created. This document provides a data record of the transaction and contains all of the relevant predefined information from the master data and organizational elements.



UNIT 4 Logistics

Lesson 1

Ordering Material 77Exercise 1: Create a Purchase Order for Materials 86Exercise 2: Create a Goods Receipt 89Exercise 3: Process a Vendor Invoice 94

Lesson 2

Using Supplier Relationship Management 100

Lesson 3

Creating a Production Plan 105Exercise 4: Create a Planned Order 110

Lesson 4

Processing Production Orders 115Exercise 5: Create and Release a Production Order 121Exercise 6: Confirm a Production Order and Goods Receipt 125

Lesson 5

Using Supply Chain Management 130

Lesson 6

Managing Sales Orders 136Exercise 7: Create a Sales Order 140

Lesson 7

Creating Delivery Process Documents 144Exercise 8: Create a Delivery and Post a Goods Issue 148

Lesson 8

Creating Billing Documents 154Exercise 9: Create a Sales Order Billing Document 158

Lesson 9


Using Customer Relationship Management 161

Lesson 10

Using Product Lifecycle Management 168

UNIT OBJECTIVES

� Create a purchase order

� Create a goods receipt

� Verify a vendor invoice

� Outline Supplier Relationship Management processes

� Create a planned order

� Create and release a production order

� Confirm a production order and goods receipt

� Utilize SAP Supply Chain Management to manage supply and demand

� Create a sales order

� Create a delivery and post a goods issue

� Create a sales order billing document

� Use SAP Customer Relationship Management

� Outline the tasks associated with processes supporting product lifecycle management

Unit 4: Logistics


Unit 4Lesson 1

69Ordering Material

LESSON OVERVIEW

This lesson reviews procurement, including purchase orders, goods receipt, and logistics invoice verification processes in SAP ERP.

This lesson shows you how the procurement processes are executed within SAP.

Business ExampleAs a purchasing agent, you are responsible for ordering material. You must be able to create purchase orders, confirm the receipt of the ordered material, and verify the vendor invoice prior to payment. For this reason, you require the following knowledge:

� A good understanding of purchase order processes

� A good understanding of the goods receipt process

� A good understanding of Logistics Invoice Verification





Procurement ProcessProcurement in SAP ERP covers traditional processes such as requisitioning, purchase order management, and invoice verification. ERP procurement also covers catalog-based self-service requisitioning for maintenance, repair, and operating (MRO) materials and services.

Procurement in SAP ERP improves procurement processes by facilitating plan-driven and ad hoc purchasing, complete inventory management, and reporting on all procurement activities. In addition to providing supplier relationship management tools, SAP ERP enables supplier selection and qualification, contract negotiations, bid invitations, and vendor evaluation.

Determination of requirements:

Material requirements are identified either in the user departments or via materials planning and control. You can enter purchase requisitions yourself, or they can be generated automatically by the materials planning and control system.

Material requirements can cover both material requirements planning (MRP) and the demand-based approach to inventory control. Important aspects of inventory control include


regular checking of stock levels of materials defined by master records; use of the order-point method; and forecasting on the basis of past usage.

Source determination

SAP ERP helps you identify potential sources of supply based on past orders and existing longer-term purchase agreements. This speeds the process of creating requests for quotation (RFQs), which can be sent to vendors electronically, if desired.

Vendor selection and comparison of quotations

The system is capable of simulating pricing scenarios, allowing you to compare a number of different quotations. A quote can result in a frm order. Rejection letters can be sent automatically.

Purchase order creation

The purchase order adopts information from the requisition and the quotation to help you create a purchase order. As with purchase requisitions, you can generate purchase orders yourself or have the system generate them automatically. Vendor scheduling agreements and contracts are also supported.

Purchase order follow-up

The system checks the reminder periods you specified and, if necessary, automatically prints reminders or expediters at the predefined intervals. The system also provides you with an up-to-date status of all purchase requisitions, quotations, and purchase orders.

Goods receiving and inventory management

Goods receiving personnel can confirm the receipt of goods by entering the purchase order number. By specifying permissible tolerances, buyers can limit over-deliveries and under-deliveries of ordered goods.

Invoice verification

The system supports the invoice checking and matching. The accounts payable clerk is notified of quantity and price variances because the system has access to purchase order and goods receipt data. This speeds the process of auditing and clearing invoices for payment.

Note: In Procurement, MRP is Material Requirements Planning; in Production, MRP is Manufacturing Resource Planning

Unit 4: Logistics


Basic Procurement Cycle

Figure 25: Procurement

The basic procurement (purchase-to-pay) cycle for a service or material consists of the following phases:

11. Demand determination: Determine material requirements

2. Source determination: Identify sources of supply

3. Supplier selection: Compare quotations

4. Purchase order creation: Create purchase orders; purchase order adopts information from the requisition and/or the quotation

5. Order monitoring: Track orders; system provides up-to-date status of all purchase requisitions, quotations, and purchase orders

6. Goods receipt: Confirm goods received

7. Invoice verification: Check and match invoice for processing

8. Payment processing: Process payment to the supplier

Purchase Orders

This section provides an overview of how purchase order processing is supported by SAP ERP. Explain that a purchase order is a formal request to a vendor to supply certain goods or services under the stated conditions.

Purchase orders can be created with reference to a purchase requisition, quotation, or other Purchase order. The advantage is that all known order information is automatically copied into the purchase order document. In addition, you can emphasize the integration of master data in the processing of purchase orders. Explain that key data is copied from the vendor master and material master, such as terms of payment and material description, respectively. This minimizes data entry and maximizes data accuracy / consistency.

A purchase order is a formal request to a vendor to supply certain goods or services under stated conditions.You can create purchase orders with or without reference to a purchase requisition, a request for quotation, or another purchase order.

Lesson: Ordering Material


When you enter the purchase order data, the system suggests default values such as ordering address, terms of payment, and freight from the vendor master record. If a purchasing source already exists in the system, the system copies a price proposal to the new purchase order.

Figure 26: Purchase Order

You can either send the purchase order to a vendor or carry out a stock transport order in another plant belonging to your company or group. The associated freight costs in the purchase order are taken into account.

How to Create a Purchase Order for MaterialsHow to create a purchase order for stock materials in the SAP system.

11. From the SAP Easy Access screen, choose Logistics -> Materials Management -> Purchasing -> Purchase Order -> Create -> ME21N Vendor/Supplying Plant Known .

2. Using the data specified in the table, create a purchase order for a stock material.

Field Data

Order type Standard PO

(NB)

Vendor BaltusXX

(Baltus AG Gr.XX)

Purchasing organization 1000

(IDES Deutschland)

Purchasing group BXX

(SAP01 Gr.XX)

Company code 1000

IDES AG

Material R-T1XX

PO Quantity 10

Unit 4: Logistics


FField Data

Plant 1000

(Hamburg)

Storage Location 0001

Purchase Order Number

The required steps are detailed in the Create a Purchase Order for a Stock Material exercise.

3. Complete a brief review of the structure and format of the purchase order (that is,formatand header vs. line item detail). Emphasize the master data integration by highlighting specific data elements copied from master data records. Some examples of data elements are:

� Vendor master: Terms of payment and communications data

� Material master: Base unit of measure, material description, and material group

Goods Receipt

The advantages of posting a goods receipt with reference to a purchase order include the following:

� At the goods receiving point, the total goods received are checked against what was ordered.

� Data from the purchase order is copied into your document when you enter the goods receipt (for example, items and quantities). This makes it easier to enter the goods receipt and check overdeliveries and underdeliveries when goods arrive.

� The purchase order history is automatically updated as a result of the deliveries. The purchasing department can send a reminder if a delivery is late.

� When you post a goods receipt to the warehouse, the system creates a material document. This document contains information such as the material and quantity delivered, and the storage location for materials placed into stock in the plant.

� If the transaction is relevant for material valuation, the system creates at least one accounting document that records the effects of the goods movement on the value of the stock.



Figure 27: Goods Receipt

How to Create a Goods ReceiptHow to post a goods receipt to stock with reference to a purchase order in the SAP system.

11. From the SAP Easy Access screen, choose Logistics -> Materials Management -> InventoryManagement -> Goods Movement -> Goods Receipt -> For Purchase Order -> MIGO PO Number known.

2. Using the data specified below, enter a goods receipt with reference to a purchase order.

Field Data

Purchase order If using group 00, use PO number 45000018000 (refer to table in exercise for additional numbers)

Material Document Number

The required steps are detailed in the Enter a Goods Receipt Referencing a Purchase Order exercise.

3. Complete a brief review of the structure and format of the goods receipt transaction (for example, header vs. line item detail).

Vendor Invoice Verification

Explain that the procurement process concludes with the logistics invoice verification process, during which invoices and credit memos are entered and the contents and prices checked for accuracy. Note that the actual payment to the vendor is handled by the accounting department using appropriate information that is passed from the system.

The procurement process is concluded by the Logistics Invoice Verification process, during which invoices and credit memos are checked for accuracy and entered into the system. Payment and evaluation of invoices are part of the accounting process. Logistics Invoice Verification creates a link between procurement and accounting.

Unit 4: Logistics


When you enter an invoice with reference to a purchase order, data (for example, vendor, material, quantity still to be invoiced, or terms of payment) is displayed on your screen.

Figure 28: Logistics Invoice Verification

If there are discrepancies between the purchase order or goods receipt and the invoice, a warning is displayed and, depending on the system configuration, the system blocks the invoice for payment.

Invoice posting completes the Logistics Invoice Verification process. The system updates the purchase order history, and financial accounting initiates payment for the open invoice items.

How to Process a Vendor InvoiceHow to process a vendor by posting the invoice for the material you received.

11. From the SAP Easy Access screen, choose Logistics -> Materials Management -> LogisticsInvoice Verification -> Document Entry -> MIRO Enter Invoice .

2. Using the data specified below, enter an invoice.

Field Data

Invoice date <current date>

Reference 234## (## = your group number)

Amount 56,21

Tax Amount 5,11

Purchase Order If using group number 00, enter PO 45000018031 (created by the CATT). Alternatively, refer to the table in the exercise.



Vendor Messages

Messages for a purchasing document are shown here as an example which is generally valid for the whole SAP system. Explain that this is possible, for example, in sales as well. Note that other messages exist, such as system messages. This section deals with messages which are printed or faxed or sent by any other means.

Each time you create an request for quotation (RFQ), purchase order, contract, or scheduling agreement, the system creates a message. This message is then placed in the message queue that contains all messages that have not yet been transferred to the vendors. You can issue messages to vendors by print, email, fax, or electronic data interchange (EDI).

The options to issue messages are as follows:

IIssueImmediately:

The system issues the message directly from the queue as soon as you save the document.

Issue Later: A background job is scheduled. This job processes the message queue in intervals determined by configuration setup. You may also start the message issue directly from the purchasing menu. As a rule, messages are issued using the background job and messages issued manually are an exception (for example, rush orders).

Figure 29: Messages

In the ordering transaction, you can display a document before printing it.SAP systems support Smart Forms, SAPscript, and PDF-based forms for printing.

How to Display a Message OutputHow to display message output from the purchase order.

1. Choose Logistics -> Materials Management -> Purchasing -> Purchase Order -> ME32NDisplay .

2. Choose Goto -> Message and explain the messages that were sent.

Unit 4: Logistics


33. Choose Back.

4. Show the print preview. Choose Goto -> Print preview .



Unit 4Exercise 1

Create a Purchase Order for Materials

Business ExampleAs a buyer, you are responsible for purchasing. You have received an order from sales and to procure the material, you must create a purchase order that can be forwarded to the vendor.

Create a Purchase Order for Stock Materials

11. Create a purchase order for stock material using information in the table.

Field Data

Vendor Baltus##

(Baltus AG Gr.##)


(IDES Deutschland)

Purchasing group B##

(SAP01 Gr.##)

Company code 1000

IDES AG

Material R-T1##

PO Quantity 10

Plant 1000

(Hamburg)

Storage location 0001


2. Display the purchase order.


Unit 4Solution 1

Create a Purchase Order for Materials

Business ExampleAs a buyer, you are responsible for purchasing. You have received an order from sales and to procure the material, you must create a purchase order that can be forwarded to the vendor.

Create a Purchase Order for Stock Materials

11. Create a purchase order for stock material using information in the table.

Field Data

Vendor Baltus##

(Baltus AG Gr.##)


(IDES Deutschland)

Purchasing group B##

(SAP01 Gr.##)

Company code 1000

IDES AG

Material R-T1##

PO Quantity 10

Plant 1000

(Hamburg)

Storage location 0001


a) From the SAP Easy Access screen, choose Logistics -> Materials Management -> Purchasing -> Purchase Order -> Create .

b) Choose Vendor /Supplying Plant Known .

c) Enter Vendor: Baltus## (Baltus AG Gr.##) and press Enter.

Hint:If you do not see the details in the header of the purchase order, choose Expand header to expand the header area.

d) Select the Org. data tab.


Note:The Org. data tab should be the system default.

ee) Enter Purchasing org.: 1000.

f) Enter Purch. group: B##.

g) Enter Company Code: 1000.

h) Choose Enter .

Hint:If you do not see the details in the item overview area of the purchase order, choose Expand items to expand the item area.

i) Enter Material: R-T1##.

j) Enter PO quantity: 10.

k) Enter Plnt: 1000.

l) Enter stor. location : 0001.

m) Choose Enter .

n) Choose Save .You receive a system message that a purchase order was created.

Note:Do not return to the SAP Easy Access menu.

2. Display the purchase order.a) Choose Purchase order -> other purchase order .

b) From within the dialog box, choose other document.

c) Your purchase order is displayed.

d) Choose Exit to exit the screen and return to the SAP Easy Access menu.


Unit 4Exercise 2

Create a Goods Receipt

Business ExampleYou are responsible for receiving material and have received a shipment. You must now enter the material into stock by completing a goods receipt.

This exercise is modularized. The CATT created the purchase order numbers in the table to allow participants to complete the exercise. If you are delivering a regular ILT class, you may elect to have students use the purchase order number they created in the previous exercise.

Create a Goods ReceiptGGroup Number Purchase Order

NumberGroup Number Purchase Order

Number

00 45000018000 16 45000018016

01 45000018001 17 45000018017

02 45000018002 18 45000018018

03 45000018003 19 45000018019

04 45000018004 20 45000018020

05 45000018005 21 45000018021

06 45000018006 22 45000018022

07 45000018007 23 45000018023

08 45000018008 24 45000018024

09 45000018009 25 45000018025

10 45000018010 26 45000018026

11 45000018011 27 45000018027

12 45000018012 28 45000018028

13 45000018013 29 45000018029

14 45000018014 30 45000018030

15 45000018015

Enter a goods receipt to stock and view the documents created by the receipt.

1. Using the data provided in the table below, enter a goods receipt with reference to a purchase order.


FField Data

Purchase order Enter the ourchase order for your group number (##) from the table provided, unless instructed otherwise by the instructor.

Material R-T1##

Quantity 10

Plant 1000 (Hamburg)



2. Display the material document.

Hint:You can display the material documents from the same transaction that you use to post goods issue (MIGO).Change the selection option from GoodsReceipt to Display.


Unit 4Solution 2

Create a Goods Receipt

Business ExampleYou are responsible for receiving material and have received a shipment. You must now enter the material into stock by completing a goods receipt.

This exercise is modularized. The CATT created the purchase order numbers in the table to allow participants to complete the exercise. If you are delivering a regular ILT class, you may elect to have students use the purchase order number they created in the previous exercise.

Create a Goods ReceiptGGroup Number Purchase Order


Number

00 45000018000 16 45000018016

01 45000018001 17 45000018017

02 45000018002 18 45000018018

03 45000018003 19 45000018019

04 45000018004 20 45000018020

05 45000018005 21 45000018021

06 45000018006 22 45000018022

07 45000018007 23 45000018023

08 45000018008 24 45000018024

09 45000018009 25 45000018025

10 45000018010 26 45000018026

11 45000018011 27 45000018027

12 45000018012 28 45000018028

13 45000018013 29 45000018029

14 45000018014 30 45000018030

15 45000018015

Enter a goods receipt to stock and view the documents created by the receipt.

1. Using the data provided in the table below, enter a goods receipt with reference to a purchase order.


FField Data

Purchase order Enter the ourchase order for your group number (##) from the table provided, unless instructed otherwise by the instructor.

Material R-T1##

Quantity 10




a) From the SAP Easy Access screen, choose Logistics -> Materials Management -> Inventory Management -> Goods Movement -> Goods Receipt -> For Purchase Order .

b) ChooseGR for Purchase Order (MIGO) .

c) Enter The purchase order number for your group (##) from the table provided, unless instructed otherwise by the instructor.

Hint:

You may search for your purchase order number by choosing and searching on the Material field using material number R-T1##.

d) ChooseExecute or press Enter.

e) Choose the Where tab.

f) Verify that the Plant is 1000 and that the Storage location is 0001.

g) Select Item OK.

h) ChoosePost to post the goods receipt. You will receive a system message that a material document has been posted.

Hint:Do not return the to the SAP Easy Access menu.

2. Display the material document.

Hint:You can display the material documents from the same transaction that you use to post goods issue (MIGO).Change the selection option from GoodsReceipt to Display.

a) Choose Display.


bb) ChooseExecute .

c) ChooseExit to exit the screen and return to the SAP Easy Access screen.


Unit 4Exercise 3

Process a Vendor Invoice

Business Example

This exercise is a separate module. The CATT created the purchase order numbers in the table to allow participants to complete the exercise. If you are delivering a regular ILT class, you may elect to have students use the purchase order number they created in the previous exercise.

You are responsible for processing invoices and have received an invoice for purchased material. You must now post the invoice for payment.

Process a Vendor InvoiceGGroup Number Purchase Order


Number

00 45000018031 16 45000018047

01 45000018032 17 45000018048

02 45000018033 18 45000018049

03 45000018034 19 45000018050

04 45000018035 20 45000018051

05 45000018036 21 45000018052

06 45000018037 22 45000018053

07 45000018038 23 45000018054

08 45000018039 24 45000018055

09 45000018040 25 45000018056

10 45000018041 26 45000018057

11 45000018042 27 45000018058

12 45000018043 28 45000018059

13 45000018044 29 45000018060

14 45000018045 30 45000018061

15 45000018046

Field Data

Invoice date <today>

Reference ## (your group number)

Amount 56,21


FField Data

Tax Amount 5,11

Invoice Document

Hint:There may be a popup asking you to enter the Company Code. Please enter Company Code 1000 and choose Continue .

.

Note:Make sure your taxes have defaulted to 10%

The Reference Document Category should show Purchase Order / Scheduling Agreement.Enter your Purchase Order Number for your group ## from the table provided. Choose Enter.

Hint:The invoice can be posted if the balance indicator is green. If the balance indicator is red or yellow, please contact your instructor.

Choose Post .Choose Exit to exit the screen and return to the SAP Easy Access menu.

1. Using the data provided in the table, enter the vendor's invoice using the data in the table.

2. The Reference Document Category should show Purchase Order / Scheduling Agreement. Enter your purchase order information for vendor Baltus##.

3. Post your invoice.

4. Return to the SAP East Access screen.

5. Exit the SAP Easy Access screen.


Unit 4Solution 3

Process a Vendor Invoice

Business Example

This exercise is a separate module. The CATT created the purchase order numbers in the table to allow participants to complete the exercise. If you are delivering a regular ILT class, you may elect to have students use the purchase order number they created in the previous exercise.

You are responsible for processing invoices and have received an invoice for purchased material. You must now post the invoice for payment.

Process a Vendor InvoiceGGroup Number Purchase Order


Number

00 45000018031 16 45000018047

01 45000018032 17 45000018048

02 45000018033 18 45000018049

03 45000018034 19 45000018050

04 45000018035 20 45000018051

05 45000018036 21 45000018052

06 45000018037 22 45000018053

07 45000018038 23 45000018054

08 45000018039 24 45000018055

09 45000018040 25 45000018056

10 45000018041 26 45000018057

11 45000018042 27 45000018058

12 45000018043 28 45000018059

13 45000018044 29 45000018060

14 45000018045 30 45000018061

15 45000018046

Field Data

Invoice date <today>

Reference ## (your group number)

Amount 56,21


FField Data

Tax Amount 5,11

Invoice Document

Hint:There may be a popup asking you to enter the Company Code. Please enter Company Code 1000 and choose Continue .

.

Note:Make sure your taxes have defaulted to 10%

The Reference Document Category should show Purchase Order / Scheduling Agreement.Enter your Purchase Order Number for your group ## from the table provided. Choose Enter.

Hint:The invoice can be posted if the balance indicator is green. If the balance indicator is red or yellow, please contact your instructor.

Choose Post .Choose Exit to exit the screen and return to the SAP Easy Access menu.

1. Using the data provided in the table, enter the vendor's invoice using the data in the table.a) From the SAP Easy Access screen, choose Logistics -> Materials Management ->

Logistics Invoice Verification -> Document Entry -> Enter Invoice (transaction code MIRO).

b) Enter Invoice date : <current date> .

c) Enter Reference : ## .

d) Enter Amount : 56,21 .

e) Enter Tax Amount : 5,11 .

2. The Reference Document Category should show Purchase Order / Scheduling Agreement. Enter your purchase order information for vendor Baltus##.a) Enter the purchase order number for your group (##) from the table

provided in the Purchase Order / Scheduling Agreement field.

b) Enter your vendor Baltus## (## = your group number).

c) Choose Enter.

3. Post your invoice.a) Choose Post .

4. Return to the SAP East Access screen.


aa) Choose Return .

5. Exit the SAP Easy Access screen.a) Choose Exit to return to the SAP Easy Access screen.


Unit 4Lesson 2

86Using Supplier Relationship Management

LESSON OVERVIEWThis lesson provides an overview of SAP Supplier Relationship Management.

This lesson provides an overview of the basic concepts of SRM including procurement and sourcing processes, business benefits, procurement, supplier enablement, and integration.Some of the SAP SRM component is already part of SAP ERP, for example for the usage of the Self-Service Procurement Scenario. Other functions (for example Strategic Purchasing) and components (like the Bidding Engine) are only included in SAP SRM.

Business ExampleYou are responsible for managing relationships with suppliers and must be able to explain the benefits of SAP Supplier Relationship Management. For this reason, you require the following knowledge:

� A basic understanding of procurement and sourcing processes

� A good understanding of the business benefits of supplier relationship management

� A good understanding of the procurement (requisitioning) process

� A basic understanding of how suppliers are linked to the purchasing process (supplier enablement)



Procurement and Sourcing Processes

If participants would like to view a demonstration of SRM, refer them to the service marketplace.

The materials and services you receive from your suppliers directly impact the quality of the products and services you deliver to your customers. Suppliers are very important to the overall value chain.

Building relationships across your entire supply base is more profitable than pressuring individual suppliers for marginal cost reductions. SAP Supplier Relationship Management (SAP SRM) facilitates effective management of the entire supply base in a way that streamlines procurement and sourcing processes, maintains supply quality, and increases profits, supplier collaboration, and innovation.


Figure 30: SAP Supplier Relationship Management

SAP SRM manages spending for continuous profitability and delivers a quick, measurable return on investment. With increased supply chain visibility and automated processes that connect the entire supply base, you gain an insight into global spending and you are able to cut the cost of purchased goods and services across the company.

Effective ProcurementSAP SRM covers the full supply cycle from strategy to execution, helping you optimize supplier selection, increase collaboration, and reduce cycle times. With the unique advantages of consolidated content and master data, SAP SRM also helps you make and execute decisions that align with corporate strategy.

Figure 31: Effective Procurement

Business Benefits of Supplier Relationship ManagementSAP SRM focuses on bottom-line results, helping you reduce the cost of goods sold throughout the company. SAP SRM provides a fully integrated source-to-pay process. SAP SRM delivers significant business benefits by improving supply-related efficiency and enhancing the value of supplier relationships,

The benefits of Supplier Relationship Management are realized in the following key areas:

Lesson: Using Supplier Relationship Management


KKey Area Benefit

Centralized management� Procurement department has centralized

and standardized control over services categories

� Improved sourcing strategy

� Rationalization and optimization of the supply base

� Better access to data on supplier performance

� Improved quality of supply and reduced risk

Supplier collaboration� Collaboration with suppliers on service

definitions, bid responses, purchase order delivery, service confirmations, and invoice distribution

Realized savings� Reduced costs

� Lower unit prices

� Demand consolidation across multiple business units

� Lower inventory-carrying costs

� Better prices through competitive bidding

Unit 4: Logistics


KKey Area Benefit

Automated processes� Streamlined, automated, and integrated

processes from request to settlement

� Compressed cycle times

� Automation of tedious request-for-proposal (RFP) and request-for-quotation (RFQ) cycles

� Faster procurement execution through online approval

� Faster acknowledgment and response from suppliers

� Reduced process costs

� Increased compliance through reduced ad hoc buying

� Reduced complexity through content consolidation

� Increased efficiency through procurement automation

Compliance enforcement� Compliance enforcement with the

approved suppliers at the negotiated rates

ProcurementCatalog-based requisitioning can be integrated with your traditional procure-to-pay process by using SAP SRM. You gain the benefits of e-procurement without losing your back-end enterprise resource planning processes. Purchasers can use self-service functions in SAP SRM and back-office functions in SAP ERP.

Purchasers can execute the following activities:

Requisitioning Create requisitions automatically with SAP ERP through a materials requisition process run, or create them manually with SAP SRM using shopping carts.

Order management Assign sources of supply, validate restrictions, and perform order generation and tracking.

Receiving Capture the process of receiving goods and services to prepare for follow-on processes such as automated financial settlement.

Financialsettlement

Handle financial transactions through SAP SRM and SAP ERP to make financial settlement more efficient by using tools for invoice management, evaluated receipt settlement, and invoice payment.

Supplier EnablementLink suppliers to your purchasing processes through the supplier portal. With SAP SRM, you can choose the optimal interaction channel for numerous business processes and documents and collaborate more effectively with suppliers.

Lesson: Using Supplier Relationship Management


Supplier enablement includes the following activities:

DDocumentexchange

Exchange any document in any format smoothly across diverse systems through messaging between SAP and non-SAP systems, both internally and externally.

Supplier portal management

Give suppliers direct access to their customers' SAP and non-SAP applications through the preassembled content on the SAP supplier portal for collaboration.

Suppliercollaboration

Collaborate with suppliers and make integration with suppliers of all sizes economical and easy to manage. With SAP SRM's supplier self-services, suppliers can access supply-side transactions and other relevant information,update their catalog data, process acknowledgements, track payment status, suggest changes to orders, and receive information on inventory and supply-and-demand plans.

IntegrationThe main operational components in the SAP SRM application are SAP SRM for the special functions required, and SAP ECC as part of the ERP back end.

Purchasers and standard users work in SAP SRM through a Web browser. Purchase orders created in this way are then posted in the ERP back end for follow-up processing, for example, goods receipt or invoice verification, and the data is available for material planning and availability checks.

In addition to this standard scenario, SAP SRM can also be used for a standalonescenario, where the ERP back end is only used for the financial accounting posting.

Procurement through SAP SRM is a highly integrated process in the complete logistics value chain. Requirements for materials that are to be externally procured can be created through planning processes in SAP SCM or through actual sales processes. As a result of the automation of the actual purchasing process, the purchasing department can focus on strategic tasks and quality improvement.

Supplier Relationship Management

FACILITATED DISCUSSIONAsk specific business scenarios and ask how the lesson information applies

FACILITATED DISCUSSIONAsk participants for their business experiences that relate to the lesson material.



Unit 4: Logistics


Unit 4Lesson 3

91Creating a Production Plan

LESSON OVERVIEWThis lesson shows you how to create a planned order by running manufacturing resource planning (MRPII).

Note: In Production, MRPII is Manufacturing Resource Planning and in Procurement MRP is Material Requirements Planning.

Business ExampleYou are responsible for production plans and you must be able to create Manufacturing Resource Planning (MRPII) orders. For this reason, you require the following knowledge:

� A good understanding of the production planning process



Production Planning ProcessSAP ERP helps enterprises manage the full range of manufacturing activities, from planning to execution and analysis, in a single end-to-end system. SAP ERP delivers all elements of a customer-oriented manufacturing management system and is fully compatible with Just-in-Time (JIT) and kanban methodologies. SAP ERP supports all manufacturing strategies for businesses in the discrete process and consumer products industries.

Just-in-Time methodologies reduce the in-process inventory and associated carrying costs. Kanban methodologies include manufacturing specification requirements used to regulate the supply of components.

SAP ERP supports the development and execution of efficient production plans and ensures that accurate, comprehensive information is available at any time by combining information from a variety of business processes.

Business processes include the following:

� Planning

� Cost accounting

� Human capital management

� Materials management

� Warehouse management


� Plant maintenance

� Quality management

Briefly explain that the planning process uses forecasts and customer demand to create production and procurement schedules for finished products and component materials. Depending on your knowledge you can also choose to explain these planing steps in the SCM lessons in order to work out the differences between the production planning in ERP and SCM.

Planning Process Overview

Figure 32: Production Planning

Planning is generally divided into several steps. These steps may be executed independently of each other, or they may collaborate.

Planning Process Details

Planning steps include the following:

SSales and OperationsPlanning

Sales and Operations Planning (SOP) generates sales plans and production plans using forecast values and requirements from the Sales Information System and costing/profitability analysis. The requirements are reflected in the system as planned quantities of a product over a given period of time, and are not necessarily created on the basis of a customer requirement.

Demandmanagement

In demand management, forecasting functionality is connected with production scheduling. Requirement quantities and dates for finished products and assemblies based on the plans from SOP are determined.

Master production scheduling

Master production scheduling (MPS) allows critical resources items to be planned with extra attention. This procedure ensures that the instabilities in planning are kept to a minimum. MPS is an optional step in the planning process.

Unit 4: Logistics


MMaterialrequirementsplanning

Material requirements planning (MRP) is the detailed planning of replenishment schedules for required components. The output of MRP is either a planned order or a purchase requisition.

Manufacturingexecution

Manufacturing execution includes the creation and release of a production order, goods issues of components, confirmation of production activity, and goods receipts of the finished goods.

Overall Procedure

Figure 33: Overall Procedure

Manufacturing information is shared across the enterprise and supply network to coordinate production processes and promote cooperation. Data plant process control and data-collection systems can also be included in the shared information. This enhances decision making by including accurate production data.

Manufacturing and production in SAP ERP does much more than just facilitate efficient production. It establishes critical links between sales, production planning, and the factory floor. SAP integrates your supply chain processes to make the enterprise as competitive as possible. It integrates seamlessly with external real-time process control and laboratory information systems. This represents a significant advancement for information systems in the repetitive manufacturing and process industries.

SAP offers full integration between its project planning, material requirements planning (MRP), and shop floor control system modules. Standard interfaces link SAP to external computer-aided design (CAD), product data management, and plant data collection systems. Therefore, SAP ERP is also the state-of-the-art manufacturing system for discrete manufacturers and engineering-to-order companies.

Full integration within SAP ERP simplifies periodic forecast revisions. You can break down forecast demands from the planning level to the level of the individual product. Rough-cut capacity planning at the planning level provides a check of resource bottlenecks. Forecasts are easily transferred to demand management and master production scheduling (MPS), where they can be offset by incoming sales orders. You can also add unexpected demands any time.

How to Create a Planned OrderHow to run the material requirements planning program to create a planned order.

Lesson: Creating a Production Plan


11. From the SAP Easy Access screen, choose Logistics -> Production -> MRP -> Planning -> MD02 Multilevel Single-Item Planning.

2. Using the data specified below, start the MRP run.

Field Data

Material R-F4XX

MRP area 1000

Plant 1000

You can leave the rest of the entries as they are (they are written below just for continuity).

Field Data

Processing key NETCH

Create purchase req. 2

Delivery schedules 3

Create MRP list 1

Planning mode 1

Scheduling 1

Leave the Process control parameters unchecked.

3. Press Enter or choose Continue.

Hint:You have to confirm the input parameters by pressing Enter again.Youcan use this to explain to the students how to continue with a warning message.

The MRP results screen, which will appear at the end of the run, summarizes the proposals created by the MRP program.

4. Explain the results briefly. Why are there five different materials?

How to Display the Stock/Requirements ListHow to display the stock/requirements list and show the production order.

An exercise on the stock/requirements list is not included for participants.

1. Choose Logistics -> Production -> Shop Floor Control -> Information System -> MD04Stock/Reqmts List

Unit 4: Logistics


Note:If you are working with two sessions, or you have created the production order out of the stock/requirements list, just choose Refresh and continue with Step 4

22. Enter Material: R-F4XX

3. Plnt = 1000

4. Press Enter or choose Continue.

5. Highlight the production order.

Lesson: Creating a Production Plan


Unit 4Exercise 4

Create a Planned Order

You are responsible for calculating material requirements and creating planned orders, and have received a new request. You must now start an MRP run to calculate the requirements and to create planned orders for the new request.

11. Using the information provided in the table, create a standard order.

2. Display the stock/requirements list to confirm that your sales order was created.


Field Data

Material R-F4##

MRP area 1000

Plant 1000


Field Data




Create MRP list 1

Planning mode 1

Scheduling 1

Leave the process control parameters unchecked.

4. Using the information provided in the table, view the stock/requirements list and record your planned order.

Material R-F4##


Planned order


Unit 4Solution 4

Create a Planned Order

You are responsible for calculating material requirements and creating planned orders, and have received a new request. You must now start an MRP run to calculate the requirements and to create planned orders for the new request.

11. Using the information provided in the table, create a standard order.a) From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> Sales -

> Order

b) Choose Create.

c) Enter Order Type: OR and press Enter.

d) Enter Sold-to-party: Rohrer##.

e) Enter Purch. Order no.: Group-## and press Enter.

f) Enter Req. Del.date : Today + 4 weeks and press Enter.

g) Enter Material: R-F4## and press Enter.

h) Enter Order Quantity: 10 and press Enter.

i) Choose Save.

j) Choose Exit to leave the sales order and return to the SAP Easy Access screen.

2. Display the stock/requirements list to confirm that your sales order was created.a) From the SAP Easy Access screen, choose Logistics -> Production -> Shop Floor

Control -> Information System

b) Choose Stock/Requirements List.

c) Enter Material: R-F4##.

d) Enter Plant: 1000.

e) Choose Continue.


Field Data

Material R-F4##

MRP area 1000

Plant 1000



FField Data




Create MRP list 1

Planning mode 1

Scheduling 1

Leave the process control parameters unchecked.a) From the SAP Easy Access screen, choose Logistics -> Production -> MRP -> Planning .

b) Choose Multilevel Single-Item Planning .


d) Enter MRP area: 1000.

e) Enter Plant: 1000.

Note:The information may default, and a user entry may not be required.

f) Choose Enter .

Hint:You have to confirm the input parameters by pressing Enter again.

g) Choose Exit to leave the MRP run result and return to the SAP Easy Access menu.

4. Using the information provided in the table, view the stock/requirements list and record your planned order.

Material R-F4##


Planned order

a) From the SAP Easy Access menu, choose Logistics -> Production -> Shop Floor Control -> Information System .

b) Choose Stock/Requirements List .




Note:The information will default, so a user entry may not be required.

ee) Choose Continue .

f) After the MRP run, a planned order is required for the sales order and a new MRP element. Record the planned order in the space provided in the table above.

g) Choose Exit to leave the stock/requirements list and return to the SAP Easy Access screen.




Unit 4: Logistics


Unit 4Lesson 4

99Processing Production Orders

LESSON OVERVIEWIn this lesson you will learn how to create, release, and confirm production orders.

Business ExampleYou are responsible for the processing of production orders and must be able to create and release orders. For this reason, you require the following knowledge:

� A good understanding of creating production orders

� A good understanding of releasing production orders

� A good understanding of confirming production orders

� A good understanding of posting goods receipts




Production Orders

The production order contains information on production dates and quantities, required components and production costs. Note: In Production MRP is Manufacturing Resource Planning and in Procurement it is Material Requirements Planning.

The production order is the central data object in shop floor control and manufacturing execution. The production order contains all data relevant to production objectives, material components, required resources, and costs. A normal production order covers the demand for a single material or product. You can produce multiple products jointly in one production order (co-products) and distribute incurred costs between the different products.


Figure 34: Production

In a production order, you can specify external operations that are to be processed in an outside workshop. Production orders are usually created from planned orders.

The Production Process

The production process includes the following steps:

11. Production planning: Determine production requirements and ensure sufficient manufacturing capability.

2. Order creation: Create the production order.

3. Order release: Release the production order to check availability of required components and production tools.

4. Order printing: Print the production order for the shop floor.

5. Material staging: Issue material to use in production.

6. Order execution: Execute the production order.

7. Confirmations: Confirm the production order.

8. Goods receipt: Post the goods receipt.

Releasing a Production OrderBefore an order is released, you must ensure that sufficient manufacturing capacity is available. The graphic planning table provides an overview of short-term orders and released production orders. You must release a production order before you can process it.

Unit 4: Logistics


Figure 35: Production Order

When you release a production order, you set up the system to check the availability of components and production resources or tools. You specify the type of availability check to be carried out (available-to-promise calculation) per order type. For example, you can work with either dynamic or static availability checking. Once the production order is released, you print shop floor papers, issue materials from stock, and confirm operations.

Releasing a Production Order: Details

Production orders may be released in the following ways:

� Individually

� Order by order

� As a group

� Based on order start date

� As soon as they are created

You can release production orders operation by operation, if, for example, operation times are long and work center assignment for an operation is only carried out after the previous operation has finished. Examples of where steps must be processed in a specific order are at a components plant in the aircraft industry and during assembly of precision instruments.

How to Create and Release a Production OrderHow to create a production order for the planned order from the MRP run.

11. From the SAP Easy Access screen, choose Logistics -> Production -> Shop Floor Control -> Order -> Create -> CO40 From Planned Order .

2. Enter the planned order created in the MRP run by the CATT. If you are using group 00, your planned order will be 37031. For other planned order numbers, refer to the table in the exercise.

3. Once you have entered your planned order, choose Enter .

Lesson: Processing Production Orders


Hint:You can also use the Stock/Requirements List and convert the planned order directly. Show the details of the planned order by choosing Details of Element or double clicking on the element. Then choose: Convert planned order to production order.

44. Choose Release order .

5. Choose Save .

How to Display a Bill of MaterialHow to display a bill of material and the data required for a production order.

1. From the SAP Easy Access screen, choose Logistics -> Production -> Master Data -> Billsof Material -> Bill of Material -> Material BOM -> CS03 Display .

2. Enter Material: R-F1XX, Plant: 1000, and BOM Usage: 1. Press Enter or choose .

3. Explain the BOM briefly.

4. Explain that the components for the final material are assembled with other components.Display the components for the component R-B1XX. Select the component and choose Extras -> Display Assembly . Confirm the validity date request with Confirm.

How to Display the Routing and Review the MaterialHow to display the routing and review the material for a production order.

1. From the SAP Easy Access screen, choose Logistics -> Production -> Master Data -> Routings -> Routings -> Standard Routings -> CA03 Display.

2. Enter Material: R-F4XX, Plant: 1000. Press Enter or choose .

3. Explain the routing.

Order Confirmation and Goods Receipt

Explain that production order confirmations record internal activities carried out for the order. A confirmation can record the following: quantity produced by operation, personnel, production dates, goods movements and amount of activity (for example, labor hours). A confirmation can reduce capacity on the work center, update costs, and/or automatically trigger the goods receipt of the manufactured goods.

Production order operations are confirmed to deliver feedback to sales order processing and shop floor planning. Completion confirmations collect important data, such as quantities

Unit 4: Logistics


produced, scrap, production times, and completion dates. Completion confirmations clear capacity loads and collect data for production cost controlling. Confirmed labor can be transferred to SAP ERP Human Capital Management.

Figure 36: Confirmation and Goods Receipt

Types of Completion ConfirmationsThe following types of completion confirmations are possible:

The following types of completion confirmations are possible:

MMilestone completion confirmation

The system confirms all preceding operations, including sub-operations, up to the previous milestone. Confirmations are based on reported quantities (yield plus scrap) and standard times.

Standard completion confirmation

Operations are confirmed using target values.

Normal completion confirmation

Individual completion confirmations are conducted using target values as defaults. You can overwrite all input values so you can report variances in the production process.

Collective completion confirmation

A a fast-entry screen allows you to confirm multiple operations.

Completionconfirmation at order header level

Orders can be confirmed at the order header level, which can drive the automatic backflush of material consumption for all operations.

You can confirm production orders operation by operation. In a lean, process-oriented production environment, confirmation of a milestone operation at the end of a production order may be sufficient. The order is confirmed either upon receiving the product in the finished products warehouse, or at the ramp just before delivery to your customer. If you create the necessary organizational requirements, you can confirm all operations and materials with a single confirmation transaction.

Goods ReceiptGoods receipts to stock can be automatically posted when you confirm the specified operation in a production order. Alternatively, you can report goods receipts in a separate transaction.

Goods receipts can be processed as follows:



� For partial deliveries from production by posting them directly to available stock

� For partial deliveries from production by posting them to quality inspection stock

� From co-products and by-products

Goods receipt processing generates a credit posting to the production order that corresponds to the value of the product quantity based on its standard price. SAP ERP debits the value in the general ledger (G/L) to the stock account for finished products and credits a specific revenue account, which represents the value of goods produced. You assign the general ledger accounts when you set up the system.

How to Confirm a Production Order and Goods Receipt

11. From the SAP Easy Access screen, choose Logistics -> Production -> Shop Floor Control -> Confirmation -> Enter -> CO15 For Order.

2. Enter the production order you created and choose Enter .

3. Choose Save to confirm the production order and save the goods receipt.

Unit 4: Logistics


Unit 4Exercise 5

Create and Release a Production Order

This exercise is modularized. The CATT created the planned order numbers in the table to allow participants to complete the exercise. If you are delivering a regular ILT class, you may elect to have students use the planned order number they created in the previous exercise.

You are responsible for production orders and have received a new order. For this reason, you must create and release the production order.

Use the stock/requirements list to confirm creation and processing of the production order.GGroup Number Planned Order

NumberGroup Number Planned Order

Number

00 37031 16 37047

01 37032 17 37048

02 37033 18 37049

03 37034 19 37050

04 37035 20 37051

05 37036 21 37052

06 37037 22 37053

07 37038 23 37054

08 37039 24 37055

09 37040 25 37056

10 37041 26 37057

11 37042 27 37058

12 37043 28 37059

13 37044 29 37060

14 37045 30 37061

15 37046

1. Using the information provided in the table, create a production order. Do not forget to release your order before posting. Record your production order in the table.

Field Data

Planned Order The planned order for your group ## from the table provided.

Order type PP01


FField Data

Production Order

2. Access the stock/requirements list to display the production order.


Unit 4Solution 5

Create and Release a Production Order

This exercise is modularized. The CATT created the planned order numbers in the table to allow participants to complete the exercise. If you are delivering a regular ILT class, you may elect to have students use the planned order number they created in the previous exercise.

You are responsible for production orders and have received a new order. For this reason, you must create and release the production order.

Use the stock/requirements list to confirm creation and processing of the production order.GGroup Number Planned Order

NumberGroup Number Planned Order

Number

00 37031 16 37047

01 37032 17 37048

02 37033 18 37049

03 37034 19 37050

04 37035 20 37051

05 37036 21 37052

06 37037 22 37053

07 37038 23 37054

08 37039 24 37055

09 37040 25 37056

10 37041 26 37057

11 37042 27 37058

12 37043 28 37059

13 37044 29 37060

14 37045 30 37061

15 37046

1. Using the information provided in the table, create a production order. Do not forget to release your order before posting. Record your production order in the table.

Field Data

Planned Order The planned order for your group ## from the table provided.

Order type PP01


FField Data

Production Order

a) From the SAP Easy Access screen, choose Logistics -> Production -> Shop Floor Control -> Order -> Create .

b) Choose From Planned Order .

c) Enter Planned Order: (The planned order for your group ## from the table provided)

d) Enter Order Type: PP01.

Hint:Order type PP01 should default.

e) Choose Enter .

f) From the application toolbar, choose Release Order .

g) Choose Save .

h) Record your production order in the space provided in the table.

i) Choose Exit to exit the screen and return to the SAP Easy Access menu.

2. Access the stock/requirements list to display the production order.a) From the SAP Easy Access screen, choose Logistics -> Production -> Shop Floor

Control -> Information System .

b) Choose Stock/Requirements List .



Note:The information will default.

e) Choose Enter .

f) Choose Details of element .

g) A dialog box opens.

h) From within the dialog box, choose Display Element to display the production order.

i) Choose Exit twice to leave the stock/requirements list and return to the SAP Easy Access screen.


Unit 4Exercise 6

Confirm a Production Order and Goods Receipt

This exercise is a separate module. The CATT created the production order numbers in the table to allow participants to complete the exercise. If you are delivering a regular ILT class, you may elect to have students use the purchase order number they created in the previous exercise.

GGroup Number Production Order Number

Group Number Production Order Number

00 60002700 16 60002716

01 60002701 17 60002717

02 60002702 18 60002718

03 60002703 19 60002719

04 60002704 20 60002720

05 60002705 21 60002721

06 60002706 22 60002722

07 60002707 23 60002723

08 60002708 24 60002724

09 60002709 25 60002725

10 60002710 26 60002726

11 60002711 27 60002727

12 60002712 28 60002728

13 60002713 29 60002729

14 60002714 30 60002730

15 60002715

You are responsible for maintaining production orders and goods receipts and have received a new order. You must now confirm the production order and post the goods receipt.


2. Enter the production order for your group number from the table provided and choose ->

Enter .

3. Choose -> Save to confirm the production order and save the goods receipt.


Unit 4Solution 6

Confirm a Production Order and Goods Receipt

This exercise is a separate module. The CATT created the production order numbers in the table to allow participants to complete the exercise. If you are delivering a regular ILT class, you may elect to have students use the purchase order number they created in the previous exercise.

GGroup Number Production Order Number

Group Number Production Order Number

00 60002700 16 60002716

01 60002701 17 60002717

02 60002702 18 60002718

03 60002703 19 60002719

04 60002704 20 60002720

05 60002705 21 60002721

06 60002706 22 60002722

07 60002707 23 60002723

08 60002708 24 60002724

09 60002709 25 60002725

10 60002710 26 60002726

11 60002711 27 60002727

12 60002712 28 60002728

13 60002713 29 60002729

14 60002714 30 60002730

15 60002715

You are responsible for maintaining production orders and goods receipts and have received a new order. You must now confirm the production order and post the goods receipt.


2. Enter the production order for your group number from the table provided and choose ->

Enter .

3. Choose -> Save to confirm the production order and save the goods receipt.


Unit 4Lesson 5

109Using Supply Chain Management

LESSON OVERVIEWThis lesson shows you how to use SAP Supply Chain Management to manage supply and demand.

Business ExampleYou are responsible for global planning and must ensure deliveries are made from the nearest distribution center. For this reason, you require the following knowledge:

� A good understanding of supply chain collaboration

� A good understanding of supply chain execution

� A good understanding of supply chain coordination



The Supply Chain

Production is emphasized in SAP SCM, but it also incorporates functionalities for Sales Order and Purchase Order Processing. SAP SCM has a strong impact on SAP CRM and SAP SRM. SAP CRM uses the APO component from SAP SCM for the Global-ATP (availability to promise). With the actual release of SAP SCM, it is also extended by Extended Warehouse Management (EWM). Transportation Management (TM) is based on SAP SCM. This lesson focuses on the extended features for the production planing. To view a demonstration of SCM, refer participants to the service marketplace.

Today’s fast-paced business environment places increasing pressure on companies to balance the push and pull of supply and demand. Accomplishing this requires an adaptive supply network driven by real-time customer demand and 24x7 supply monitoring.

Your supply chain must:

� Meet the highest levels of demand accuracy

� Have a high level of customer satisfaction

� Fully support order, product, execution tracking, and logistics

� Have smooth synchronization between fulfilment and transportation operations

You can balance between supply and demand by ensuring the most profitable match possible between supply and demand.


Traditional enterprise resource planning (ERP) systems allow plants and distribution centers to plan timely and cost-efficient replenishment. In today’s environment, you must be able to plan the entire supply chain, not just the locations inside your company.

Figure 37: SAP SCM

The Supply Chain Solution

Businesses must be able to:

� Plan timely and cost-efficient replenishment throughout the entire supply chain

� Quickly react to constantly changing business relationships, customer expectations, and business processes within the supply chain

� Manage the supply chain on a global basis

Figure 38: The Supply Chain

To meet supply chain challenges, software solutions must:

� Provide immediate visibility to all supply and demand information

Lesson: Using Supply Chain Management


� Ensure replenishment plans are synchronized throughout the entire supply chain

� Provide modeling tools to help determine the best approach to reducing overall cycle time in the network

� Support buying and selling products and services over the Internet

� Allow automation of business process between suppliers and customers in the supply chain

The ultimate goal of supply chain management is to perform just-in-time delivery of goods and services to all locations in the supply chain, at the lowest cost possible. This includes goods and services such as purchasing, manufacturing, transportation, storage, and handling.

SAP Supply Chain Management (SAP SCM) is the only solution that delivers a complete set of features and functions for building adaptive supply chain networks.

Features and functions of SAP Supply Chain Management include the following:

PPlanning: SAP SCM enables you to model supply chains by providing comprehensive planning capabilities, including supply chain design, demand and supply planning, manufacturing planning, and transportation planning.

Execution: SAP SCM integrates planning, promising, logistics, and transactional systems through materials management, manufacturing execution, order promising, transportation execution, and warehouse management.

Coordination: SAP SCM allows you to monitor and analyze processes both within and outside your company by providing supply chain event management and supply chain performance management.

Collaboration: SAP SCM enables you to share information and set and achieve common supply chain goals through Collaborative Planning, Forecasting and Replenishment (CPFR), support for vendor-managed inventory (VMI), and support for supplier-managed inventory (SMI).

Elements of Supply Chain Execution

What is Supply Chain Execution? It is sales order management, procurement and production, plus logistics execution. These activities happen mostly in SAP ERP. SCM delivers additional functions like optimization (transportation planning, TP/VS, EWM) and G-ATP (global availability check).

Elements of supply chain execution include the following:

Materialsmanagement

SAP SCM ensures that the materials required for manufacturing are in the right place at the right time by sharing information on inventory and procurement orders.

Manufacturingexecution

SAP SCM supports all production processes, including engineer-to-order, configure-to-order, make-to-order, and make-to-stock. It also generates optimized production schedules that take into account real-time material and capacity constraints. By integrating manufacturing with other supply chain processes, SAP SCM enables a rapid, flexible response to engineering changes and customer requirements.

Unit 4: Logistics


OOrder promising Based on the Global Available-to-Promise (Global ATP) capability, order promising receives queries from order management or CRM systems. Global ATP determines when a product is available across a fulfillment network or when it can be built. It also shows how much the product will cost, and how long it will take to deliver. Order promising is the critical link between order management or CRM systems and supply chain planning systems. Order promising provides a window into product availability.

Transportationexecution

SAP SCM allows distributed enterprises to manage transportation from a centralized location or from locations throughout business units. Transportation managers consolidate orders and optimize shipments from suppliers to customers to achieve maximum efficiency for their transportation dollars. They also consider transportation constraints and costs while ensuring time-definite deliveries.

SAP Supply Chain Management supports the following activities:

� Shipment tendering and booking: select and book a service provider for the shipment of the goods

� Carrier selection: select preferred carriers

� Freight building: load the truck according to the deliver schedule of the freight

� Freight cost calculation,: calculate the cost of freight

� Shipment cost settlement: Calculate the total cost of the shipment and finalize the freight cost

� Document printing: print documents for logistics execution

� International trade management, such as denied-party list screening and embargo lists: comply with global trade laws

Warehouse Management

Warehouse Management reconciles open purchase orders with incoming shipments, supports a putaway system that remembers where goods are stored, and optimizes employee picking assignments. Warehouse Management also supports warehousing tasks such as labeling, kitting, and deferred handling.

There is no graphic for Supply Chain Coordination

Supply Chain Coordination

Supply Chain Event Management

Supply chain event management provides insight into changes in plans that occur across the supply chain. Monitoring at every stage of the supply chain process provides visibility from price quotation to procurement to product delivery. Supply chain event management also distributes alerts and recommends actions when key events are missed. Detailed reports on supply chain status are also available.

Supply Chain Performance Management

Supply chain performance management measures, monitors, and displays key performance indicators associated with supply chain processes. It enables decision makers to proactively



control the effectiveness of the extended supply chain and to share this insight with business partners.

Collaboration Elements of Supply Chain ManagementTo reduce costs, you must foster collaborative relationships with suppliers, outsource manufacturers, and customers.

Figure 39: Supply Network Collaboration

SAP Supply Network Collaboration, included in SAP SCM, helps you connect to and collaborate with the following:

SSuppliers Give them easy and seamless access to supply chain information to facilitate your ability to synchronize supply with demand.

Customers Provide broad capabilities for replenishment, including minimum-based and maximum-based vendor-managed inventory and exclusion of promotions and transport load building.

Contractmanufacturers

Provide easy, seamless access to supply chain information by extending visibility and collaborative processes to manufacturing processes.

Integration

The name of the component is no longer SAP APO. With Release 4.0 the name has changed to SAP SCM. APO is a part inside SAP SCM which also includes SNC (Supply Network Collaboration (formerly known as inventory collaboration hub), EM or SCEM (Event Manager), and EWM (Extended Warehouse Management). There maybe more in the future. SAP TM (Transportation Management) is based on SCM, but usually requires a standalone installation.

The two main components inthe management of a supply chain are SAP ERP and SAP Supply Chain Management (SAP SCM). While most of the execution processes are performed in SAP ERP, SAP SCM optimizes planning and delivers additional functionality for coordination and collaboration.

SAP SCM also adds additional execution functionality through Global Available-to-Promise or Extended Warehouse Management.

Unit 4: Logistics


Supply Chain Management






Unit 4Lesson 6

114Managing Sales Orders

LESSON OVERVIEWThis lesson shows you how to create a sales order.

Business ExampleYou are responsible for managing sales orders and must be able to create sales orders. For this reason, you require the following knowledge:

� A good understanding of sales order processes

� A good understanding of creating a sales order



Sales Orders

Organizational units and master data, as explained in the unit System Wide Concepts are used to create sales documents so you can refer to this unit. The sales order is delivered and a goods issue is posted when the material leaves the warehouse.

Sales order management in SAP ERP provides insight into back-office sales processes.

Figure 40: Sales Order Management

The sales order processing (or order-to-cash) scenario describes the complete process.


Sales order management includes the following processes and basic functions:

11. Sales order:The sales order can adopt information from the pre-sales documents (a quotation or an inquiry). Pre-sales activities can be used as a reference during the creation of a sales order. Sales scheduling agreements or sales contracts (long-term sales agreements) can also be created with reference to a sales order and are supported by the sales process steps. During the creation of the sales order, the availability of the material is checked to confirm the customer's requested delivery date.

2. Availability check: The availability of required material is confirmed.

3. Outbound delivery: An outbound delivery is the basis for a process where the goods are physically moved, as well as for the posting of the goods issue. Picking can be fulfilled using the warehouse management system, and transportation is planned and carried out.

4. Transportation: Transportation includes the selection of the vendor to transport the finished product to the customer.

5. Picking: Take goods from a storage location and stage the goods in a picking area, where the goods are prepared for shipping.

6. Goods issue: Warehouse stock for the delivery is reduced and the value of the stock is posted to the balance sheet account in inventory accounting.

7. Billing: Calculate pricing and taxes and check credit limits. Invoice the sales order.

8. Payment processing: Create the posting in financial accounting.

Sales Order CreationDuring sales order creation, the system carries out basic functions. System configuration determines if these basic functions are completely automated or require manual processing. The sales document stores data resulting from the basic functions. This data includes, for example, shipping dates, confirmed quantities, prices, and discounts. The resulting data can be displayed by a user and, in some cases during subsequent processing, it can be manually changed by the user.

Figure 41: Sales Order

Sales orders can be created in various ways. Sales order management provides an e-commerce platform through which products can be sold.

Lesson: Managing Sales Orders


Sales orders can be created in the following ways:

� Over the Internet using catalog browsing

� Product search

� Shopping basket

� Order history

How to Create a Sales OrderHow to create a sales order.

11. From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> Sales -> Order -> VA01 Create .

2. Using the data specified in the table, create a sales order.

Field Data

Order type Standard Order

(OR)


(Germany Frankfurt)

Distribution channel 10

(Final customer sales)

Division 00

(Cross-division)

Sold-to party RohrerXX

(Rohrer AG Gr.XX)

Purchase order number. Sales Order XX

Requested delivery date <Today + 1 week>

Material R-F2XX

(Pump Precision 1XX)

Order Quantity 10

The required steps are detailed in the Create a Sales Orderexercise.

3. Choose Save .

Hint:When you save the sales order, a message is displayed confirming the sales order document. The sales order document number is presented on the status bar.

Unit 4: Logistics


The sales order document has now been saved and the information entered is recorded. Because of the type of order, the material is now relevant for materials planning and will be relevant for materials anagement forecasting and planning.



Unit 4Exercise 7

Create a Sales Order

Business ExampleYou are responsible for the maintenance of sales orders and have received an new order from a customer. You must now enter the order into the system.



Field Data

Order Type OR

(Standard order)

Sales organization 1000

(Germany Frankfurt)



Division 00

(Cross-division)

2. Using the information provided in the table, continue creating the order. Record the sales order document number.Record the sales order document.

Field Data

Sold-to party Rohrer##

(Rohrer AG Gr.##)

Purch. order no. Group—##

Req. deliv.date <Today + 1 week>

Material R-F2##

(Pump)

Order quantity 10

Sales order


Unit 4Solution 7


Business ExampleYou are responsible for the maintenance of sales orders and have received an new order from a customer. You must now enter the order into the system.



Field Data

Order Type OR

(Standard order)

Sales organization 1000

(Germany Frankfurt)



Division 00

(Cross-division)

a) From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> Sales -> Order .

b) Choose Create .

c) Enter Order Type: OR.

d) Enter Sales Organization: 1000.

e) Enter Distribution Channel: 10.

f) Enter Division: 00.

g) Choose Enter .

2. Using the information provided in the table, continue creating the order. Record the sales order document number.Record the sales order document.

Field Data

Sold-to party Rohrer##

(Rohrer AG Gr.##)

Purch. order no. Group—##


FField Data

Req. deliv.date <Today + 1 week>

Material R-F2##

(Pump)

Order quantity 10

Sales order

a) Enter Sold-to party: Rohrer##.

b) Enter Purch. order no.: Group-##.

c) Choose Enter .

Hint:Make sure you are on the Sales tab on the order entry screen.

d) Enter Req. deliv.date: <Today + 1 week>.

e) Choose Enter .

f) Enter Material: R-F2##.

g) Enter Order quantity: 10.

h) Choose Enter .

Hint:

If a dialog box appears, choose Enter to confirm that you have read the information.

i) Choose Save and record the document number in the table provided.

Hint:The system displays a message that the sales order has been saved with the sales document number. This number appears on the status bar.

j) Choose Exit to exit the screen and return to the SAP Easy Access screen.


Unit 4Lesson 7

121Creating Delivery Process Documents

LESSON OVERVIEWThis lesson shows you how to create a delivery and post a goods issue.

Business ExampleYou are responsible for delivery procedures, and must be able to explain the process, create a delivery document, and process a goods issue. For this reason, you require the following knowledge:

� A good understanding of the delivery process

� A good understanding of how to create a delivery

� A good understanding of how to post a goods issue



Delivery ProcessLogistics execution is the physical movement of goods, from the procurement of raw material through to the shipment of the sales item. Shipping is an important part of the logistics chain and a subsequent activity of the core sales process.

Figure 42: Delivery and Goods Issue

The outbound delivery document is a central object of the goods issue process and is used to support the delivery process. Processes supported include all shipping activities, such as picking, packing, transportation, and goods issue. During the outbound delivery process, shipping and planning information is recorded, the status of shipping activities is monitored, and the data accumulated during shipping processing is documented. Shipping activities are


initiated when the outbound delivery is created. Data that is generated during shipping processing is included in the delivery.

Delivery Process Details

An outbound delivery can be created in the following ways:

� With reference to a sales order

� With reference to a stock transport order

� With reference to a subcontract order

� With reference to a project

� Without any reference

Outbound deliveries can be created automatically or manually using worklists. These deliveries can include complete or partial orders or order combinations. Outbound deliveries can be combined to form a single group of deliveries.

Warehouse and sales overview reports allow you to monitor created outbound deliveries and outstanding sales activities.

Picking the Delivery

The picking process involves taking goods from a storage location and staging the goods in a picking area where the goods will be prepared for shipping. A picking status is recorded in each delivery item for the purpose of scheduling and monitoring. This status indicates where the item is in the picking procedure.

System settings allow picking to be carried out in the following ways:

� Automatically (during outbound delivery creation)

� Routinely (at certain times)

� Manually (via an employee request)

For a goods issue to be posted, the delivery quantity must equal the picking quantity in the outbound delivery. This prerequisite requirement is included in the standard system settings.

Goods Issue Posting Functions

The outbound delivery forms the basis of the goods issue posting. The data required for the goods issue posting is copied from the outbound delivery to the goods issue document. The goods issue document cannot be changed manually. Any changes must be made in the outbound delivery itself. After the goods issue is posted for an outbound delivery, the scope for changing the delivery document becomes very limited. This prevents any discrepancies between the goods issue document and the outbound delivery. In this way, you can be sure that the goods issue document is an accurate reflection of the outbound delivery.

When you post a goods issue for an outbound delivery, the following functions are carried out:

� Warehouse stock of the material is reduced by the delivery quantity.

� Value changes are posted to the balance sheet account in inventory accounting.

� Requirements are reduced by the delivery quantity.

� The serial number status is updated.

Lesson: Creating Delivery Process Documents


� Goods issue posting is automatically recorded in the document flow.

� Stock determination is executed for the vendor's consignment stock.

� A worklist for the proof of delivery is generated.

You can post goods issues in the following ways:

� Automatically (during outbound delivery creation)

� Routinely (at certain times)

� Manually (via an employee request)

How to Create a DeliveryHow to create a delivery. This is basis for the warehouse activity and the goods issue.

11. From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> Shippingand Transportation -> Outbound Delivery -> Create -> Single Document -> VL01N With Reference to Sales Order.

2. Use the sales order number created by the CATT. If you are using group 00, this will be 14000. Alternatively, refer to the table in the exercise for additional numbers.

Hint:The shipping point is 1000.

Caution:With the automatically entered Selection date (the actual date) the system will give you an error message: Order cannot be delivered (No schedule lines due for delivery up to the selected date). You have to move the date forward several days. You can try to avoid this message by changing the date immediately on the entry screen, or show this and explain the “problem”, as the students will run into the same problem in the exercise!

The required steps are detailed in the Create a Delivery exercise.

3. Briefly explain the delivery.

4. Choose Save .You will receive a system message that a delivery document has been created.

How to Post a Goods Issue

1. From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> Shippingand Transportation -> Outbound Delivery -> Change -> VL02N Single Document orLogistics -> Sales and Distribution -> Shipping and Transportation -> Post Goods Issue -> VL02N Outbound Delivery Single Document .

Unit 4: Logistics


22. Post a goods issue for the delivery created in the previous demo.

Note:The number of the last delivery should already appear in the Delivery field. Use the sales order created by the CATT and the associated delivery. If you are using group 00, the sales order number will be 14000.

Hint:You may use the Post Goods Issue button on the entry screen or use it when you display the details of the delivery in change mode.

After pressing the Post Goods Issue button,you receive a system message that the Delivery has been saved.

The required steps are detailed in the Create a Deliveryexercise.



Unit 4Exercise 8

Create a Delivery and Post a Goods Issue

Business Example

This exercise is modularized. The CATT created the sales order numbers in the table to allow participants to complete the exercise. If you are delivering a regular ILT class, you may elect to have students use the sales order number they created in the previous exercise.

You are responsible for deliveries and have been notified that your customer's order is ready to ship. You must now create a delivery and post a goods issue.

Create a Delivery and Post a Goods IssueGGroup Number Sales Order Number Group Number Sales Order Number

00 14000 16 14016

01 14001 17 14017

02 14002 18 14018

03 14003 19 14019

04 14004 20 14020

05 14005 21 14021

06 14006 22 14022

07 14007 23 14023

08 14008 24 14024

09 14009 25 14025

10 14010 26 14026

11 14011 27 14027

12 14012 28 14028

13 14013 29 14029

14 14014 30 14030

15 14015

Create a delivery document with reference to your customer's order. Post the delivery document and verify that the shipping documents were processed using document flow.

Note:This exercise uses the sales order number indicated for your group number, as shown in the table.


11. Using the information provided in the table, create a delivery document.

Field Data

Order Use the sales order number for your group number ## provided in the table.

Shipping point 1000

(Shipping Point Hamburg)

Selection Date <Today + 1 week>

Delivery

2. Post the goods issue for the delivery and view the document flow. Record your findings in the table.

Hint:You have to save the delivery before you can post the goods issue. You cannot post the goods issue while you are still in the transaction to create the delivery.

Document Document number Status

Standard order

Delivery

WMS transfer order

GD goods issue


Unit 4Solution 8

Create a Delivery and Post a Goods Issue

Business Example

This exercise is modularized. The CATT created the sales order numbers in the table to allow participants to complete the exercise. If you are delivering a regular ILT class, you may elect to have students use the sales order number they created in the previous exercise.

You are responsible for deliveries and have been notified that your customer's order is ready to ship. You must now create a delivery and post a goods issue.

Create a Delivery and Post a Goods IssueGGroup Number Sales Order Number Group Number Sales Order Number

00 14000 16 14016

01 14001 17 14017

02 14002 18 14018

03 14003 19 14019

04 14004 20 14020

05 14005 21 14021

06 14006 22 14022

07 14007 23 14023

08 14008 24 14024

09 14009 25 14025

10 14010 26 14026

11 14011 27 14027

12 14012 28 14028

13 14013 29 14029

14 14014 30 14030

15 14015

Create a delivery document with reference to your customer's order. Post the delivery document and verify that the shipping documents were processed using document flow.

Note:This exercise uses the sales order number indicated for your group number, as shown in the table.


11. Using the information provided in the table, create a delivery document.

Field Data

Order Use the sales order number for your group number ## provided in the table.

Shipping point 1000

(Shipping Point Hamburg)

Selection Date <Today + 1 week>

Delivery

a) From the SAP Easy Accessscreen, choose Logistics -> Sales and Distribution -> Shipping and Transportation -> Outbound delivery -> Create -> Single Document .

b) Choose With Reference to Sales Order .

c) Enter Shipping point: 1000.

d) Enter Selection date: <Today + 1 week>.

e) If needed, enter the Order: Enter the sales order number for your group ## provided in the table.

Note:Change the default sales order to the sales order provided in the table.

f) Choose Enter .

g) Choose Save . Record the delivery document number in the table provided.

2. Post the goods issue for the delivery and view the document flow. Record your findings in the table.

Hint:You have to save the delivery before you can post the goods issue. You cannot post the goods issue while you are still in the transaction to create the delivery.

Document Document number Status

Standard order

Delivery

WMS transfer order

GD goods issue

a) From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> Shipping and Transportation -> Post Goods Issue .


bb) Choose Outbound Delivery Single Document .

Hint:The delivery document number should default.

c) Choose the Post goods issue icon from the application toolbar.

Hint:The document will be saved and the posting will be performed. This is indicated by the message in the status bar.

Caution:Do not back out of the Change Outbound Delivery screen!

d) Choose Document flow . Record the documents in the table provided.

e) Choose Exit to exit the screen.


Unit 4Lesson 8

130Creating Billing Documents

LESSON OVERVIEWThis lesson shows you how to create a sales order billing document.

Business ExampleYou are responsible for the billing process and must be able to create billing documents and verify the accuracy of billings. For this reason, you require the following knowledge:

� A good understanding of the billing process

� A good understanding of the creation of billing documents



Billing Documents

This lesson explains the billing process in SAP ERP.

Billing represents the final processing stage for a business transaction in sales order processing.

Billing information is available at the following stages of the order and delivery process:

� Create invoices based on deliveries or services.

� Issue credit and debit memos and invoices.

� Cancel billing transactions.

� Review pricing functions.

� Issue rebates.

� Transferbilling data to financial accounting.


Figure 43: Billing

It is important to point out billing creates another document in the sales order process. The billing document is created with reference to the original sales order and invoice the customer. SAP uses the term billing and invoice interchangeably. When the billing document is created in the sales process, an associated accounting document is created recording the receivable in the customers' account.

The process of creating the accounting document from the billing document is automatic. Master data and organizational elements determine which account in the general ledger the accounting information posts to.

Billing is integrated into the organizational structures, just like all parts of sales order processing in SAP ERP. You can assign a specific sales organization, a distribution channel, and a division to the billing transactions. The organizational structures of the accounting department include the company codes and the sales organizations assigned to the company codes. These are important for the interface between billing and financial accounting.

During billing processing, you can create, change, and delete billing documents.

It is possible to create billing documents in the following ways:

� With reference to a sales order document

� With reference to a delivery document

� With reference to external transactions

� By having the system automatically process a billing due list as a background task

� By manually processing from a worklist

� By creating a billing document explicitly

� By combining several sales order documents into a collective billing document

� By billing one or more sales order documents with several billing documents (this is called an invoice split)

� By creating an individual billing document for every sales document

Lesson: Creating Billing Documents


Billing and Financial AccountingThe system automatically posts billing amounts to the appropriate accounts by means of account determination. Account determination controls the posting of billing amounts to the appropriate general ledger accounts.

Costs and revenue can be posted to the following accounts:

AAccount Account

Customer accounts receivable General ledger (for example, a cash clearing account)

Revenue Sales deductions

Accruals (for rebate agreements) Accrual account

Accrual clearing account

Document Flow

The document flow provides access to all related documents within the sales processes. Use document flow as an example to show that documents are referenced to one another.

Sales documents form part of a chain of interrelated documents displayed in a document flow. A document flow records each activity executed during the processing of the sales document, and includes activities resulting from various interactions with customers.

An example of a document flow is as follows:

� A customer's telephone inquiry is recorded in the system.

� The customer requests a quotation and a quote is created referencing the inquiry.

� The customer later places an order based on the quotation, and a sales order is created with reference to the quotation.

� The goods are shipped.

� An invoice is issued to the customer.

Unit 4: Logistics


Figure 44: Document Flow

Continuing the example of document flow: After delivery of the goods, the customer claims credit for some damaged goods and you create a free-of-charge delivery with reference to the sales order. The entire chain of documents–the inquiry, the quotation, the sales order, the delivery, the invoice, and the subsequent free-of-charge delivery–creates a document flow, or history. The flow of data from one document to another reduces manual activity and makes problem resolution easier.

How to Create a Sales Order Billing Document and View the Document FlowHow to create a sales order billing document and display the document flow.

11. From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> Billing -> Billing Document -> VF01 Create.

2. Create a billing document for the delivery created by the CATT.

3. Save your entries. The document is saved and the posting is performed. This is indicated by the message in the status bar.

Note:The sales order was created by the CATT. If you are using group number 00, user material document number 4900000296. Refer to the table in the exercise for additional numbers.

The display of document flow has changed to an ALV display with ECC (in case you have participants who have worked on a previous version already).

Note:You can also show the document flow from other documents (such as a delivery or billing document).

Lesson: Creating Billing Documents


Unit 4Exercise 9

Create a Sales Order Billing Document

Business Example

This exercise is modularized. The CATT created the goods issue numbers in the table to allow participants to complete the exercise. If you are delivering a regular ILT class, you may elect to have students use the goods issue number they created in the previous exercise.

You are responsible for sales orders and have received an order from a customer. You must now create a sales order billing document.


11. Using the information provided in the table, create a sales order billing document.


Unit 4Solution 9


Business Example

This exercise is modularized. The CATT created the goods issue numbers in the table to allow participants to complete the exercise. If you are delivering a regular ILT class, you may elect to have students use the goods issue number they created in the previous exercise.

You are responsible for sales orders and have received an order from a customer. You must now create a sales order billing document.


11. Using the information provided in the table, create a sales order billing document.a) From the SAP Easy Access screen, choose Logistics -> Sales and Distribution -> Billing

-> Billing Document .

b) Choose Create .

c) Enter Your Material Document Number from the table provided.

d) Choose Save . The document is saved and the posting is performed. This is indicated by the message in the status bar.

e) Choose -> Exit to return to the SAP Easy Access screen.




Unit 4: Logistics


Unit 4Lesson 9

136Using Customer Relationship Management

LESSON OVERVIEWIn this lesson you will learn how to use SAP Customer Relationship Management.

Explain that SAP CRM is acomponent used to provide additional functionality.

Business ExampleYou are responsible for maintaining relationships with customers and must understand the capabilities of SAP Customer Relationship Management. For this reason you require the following knowledge:

� A good understanding of how SAP Customer Relationship Management makes customers the focus of business processes

� A good understanding of the capabilities of SAP Customer Relationship Management



Customer Focus

Explain that SAP CRM is an additional component used to provide additional functionality.

Example:

Nothing is more frustrating for a salesperson than not closing a deal because the necessary information was not available. A salesperson needs to know: What has the customer already purchased? How profitable is the customer? Can we deliver the required quantity?

Nothing is more frustrating for customers than having to deal with a company that does not meet their needs. Only satisfied customers will return in the future. Customer Relationship Management has become a decisive success factor.

The challenge for large companies is to promote a local store mentality throughout all departments and all employees. Refer participants to the service marketplace if they would like to view a demonstration.

Customer relationship management (CRM) is the concept of making the customer the focus of a company and its business processes. CRM must be implemented as the primary company philosophy, and the strategies it promotes have to be adopted within the company. The aim of all corporate activities must be to place customers at the center, and not view them as the means to an end.


Figure 45: SAP Customer Relationship Management (SAP CRM)

Make it clear that CRM is more then just using the right software: it is a business philosophy. The software is only a tool used to support this philosophy.

The principles of customer relationship management must predominate at all levels of the company. CRM is intended to create and build upon long-term relationships with customers during all phases of the business relationship.

Customer relationship management includes the following phases:

AApproaching possible customers:

A customer is interested in the company and its products (first contact).

Gaining the customer: The company receives an order from the customer.

Service: The company ensures that the customer is satisfied with the product or service purchased.

Keeping the customer: Specific and attentive customer support ensures that the customer is a satisfied and loyal customer.

Traditional KnowledgeTraditional direct sales is characterized by decentralized information about the customer. In some cases, only one employee has knowledge about the customer and the relevant contact information. Employee turnover means that vital customer information is often lost.

Unit 4: Logistics


Figure 46: Traditional Knowledge

Often, information within a company is incomplete or inaccurate.

Knowledge with SAP CRM

Figure 47: Knowledge with SAP CRM

SAP CRM facilitates the sharing of information.

Capabilities of SAP Customer Relationship ManagementSAP CRM allows every employee who needs information about customer contacts to access all relevant information immediately. Field sales and field services enable sales representatives to access all contact information in the field using a laptop or other mobile device. Analyzing this information gives the company a deeper understanding of its customers. As a result, the company can increase its service package, process queries faster, strengthen relationships, and benefit from increased customer loyalty.

During the different phases of customer interaction, various company departments interact with the customer. This is reflected in the key capabilities of SAP CRM.

Lesson: Using Customer Relationship Management


SalesSales spans all customer sales channels, ensuring seamless, scalable customer transactions. It supplies organizations with enterprise sales, telesales, field sales, and e-selling solutions to transact with customers anytime, anywhere.

SSales Solution Benefit

Sales planning and forecasting Report on and analyze all sales planning and forecasting activities.

Organizational and territory management Define territories based on size, revenue, geography, product lines, and strategic accounts. Assign sales representatives and identify prospects and products.

Account and contact management Capture, monitor, store, and track all critical information about customers, prospects, and partners.

Activity management Schedule and manage simple and complex tasks.

Opportunity management Give your channels complete visibility into each sales opportunity so they can capture, manage, and monitor business contacts and account information.

Quotation and order management Configure, price, and create quotes for customers. Generate follow-up activities, such as sales orders.

Billing and contract management Develop and manage long-term customer contracts, incorporate customer agreements into ongoing customer processes, and monitor the sales process.

Incentive and commission management Develop, implement, and manage compensation plans. Track current performance and measure the potential compensation of sales representatives based on sales in the pipeline.

ServiceService in SAP CRM offers consolidated, operational insight enabling unparalleled service and fulfillment appropriately matched to customer revenue potential. It equips organizations with capabilities in the areas of customer service and support, e-service, service operations management, and field service.

Service Solution Benefit

Multichannel service Deliver customer service through preferred channels, such as field representatives, interaction centers, partners, or the Internet.

Unit 4: Logistics


SService Solution Benefit

Customer service and support Manage and fulfill commitments to customers and partners through efficient service planning and execution. Connect the entire service process, from initial customer contact to final resolution and financial settlement.

Resource planning and optimization Plan long-term resource strategies and optimize short-term scheduling tactics. Schedule on-site service engagements and identify resource requirements based on product forecasts, planned services, and geographic product placements.

Service operations management Support single-tiered and multi-tiered service operations, including tactical and strategic service planning, service administration, transactional support, and operational and financial analytics.

Service planning and forecasting Establish service plans and forecasts that proactively maintain products for optimum performance and ensure the availability of resources.

One Face to the CustomerThe goal of CRM as a company philosophy is to “speak to the customer with one voice ”.Customers receive the same information no matter which channel of communication customers use to contact your company. All employees who have customer contact need to know about all previous customer contacts that took place using all channels of communication.

SAP CRM incorporates both tasks and contact channels. It covers all business tasks related to sales, service, and marketing using the Internet, Interaction Center, and field applications. This results in the SAP CRM solution matrix. SAP CRM includes the full integration of all tasks and channels of communication.

Communicate with CustomersThere are three basic channels of communication with the customer that are used in traditional sales and distribution, as well as in the new business concepts of SAP CRM.



Figure 48: Customer Interaction Channels

Channels of communication with customers include the following:

FFieldapplications:

Field applications are used for traditional direct contact when the employee meets personally with and a customer.

InteractionCenter:

The Interaction Center (IC) is a central communication hub for all telephone-based customer contact. As in a traditional call center, employees in different departments receive customer calls, process inquiries, and create orders. The Interaction Center can also be used as a help desk resource. This results in a central processing point for all customer-related information. The Interaction Center can operate independently of the contact medium, which could be telephone, e-mail, fax, or text messaging.

Internet e-commerce:

CRM Web Channel is used to buy and sell products with Internet connections (e-commerce).

Areas in which the Internet is used to buy and sell products include the following:

B2C Business to consumer: Internet business directly with end customers

B2B Business to business: Internet business between two companies

CRM Web Channel also supports other key capabilities of SAP CRM, for example, e-service.

IntegrationSales orders in SAP CRM can come from different sources.

Source of the Sales Order Description of Activity

Telesales The agent can use the Interaction Center to create orders directly in the CRM system.

Sales Sales employees can use field sales to create orders directly on their laptop or Personal Digital Assistant (PDA) and then send them to the SAP CRM system.

Internet Orders can be entered through CRM Web Channel.

Unit 4: Logistics


SSource of the Sales Order Description of Activity

Direct Entry in SAP CRM Orders can be entered directly in SAP CRM, independent of the communication channel.

Orders from all sources are ultimately executed in the SAP ERP system. Business processes such as the shipment of goods and the billing are processed in the SAP ERP system. The completion progress is transferred to the SAP CRM system in a status update.






Unit 4Lesson 10

142Using Product Lifecycle Management

LESSON OVERVIEWThis lesson outlines how SAP Product Lifecycle Management supports product development and innovation and integrated product and asset management.

With Col.92, this lesson was extensively changed. In the previous Business Suite versions, most PLM features were part of ERP in the ECC system. Additional products were the cProject Suite and RPM. With Business Suite 7.0 the PLM 7.0 was also released. PLM 7.0 is an add-on to ECC.

PLM is very complex. You should make clear there is much more then the core processes and solutions..

From a Customer FAQ regarding PLM 7.0.

Question: Is PLM 7.0 a completely new PLM solution from SAP? I am an SAP PLM user now – do I have to migrate?

Answer: The SAP PLM 7.0 contains amongst others a new Web UI and architecture on top of the existing ECC 6.0 data objects Document, Material Master, Material BOM and Engineering Change Master. Due to the major change in the UI and leap in usability, it is perceived as a “new solution” but it is the same data objects in the background and no migration is required. Both UIs can typically be run in parallel as well.

Question: Where can I find more information on PLM 7.0 and the PLM road map?

Answer: PLM Wiki in SAP Developer Network: https://wiki.sdn.sap.com/wiki/display/PLM

Help.sap.com -> SAP ERP -> SAP ERP Enhancement Packages -> SAP Enhancement Package 4 for SAP ERP 6.0

Business ExampleYou are responsible for the management of market and customer demands and must be able to respond quickly to these demands. For this reason you require the following knowledge:

� A basic understanding of how SAP Product Lifecycle Management supports procurement, production, and sales order management

� A basic understanding of integration elements



Product Lifecycle ManagementSAP Product Lifecycle Management (SAP PLM),enables management of the life cycle of a product using various processes.The life cycle of a product is characterized by strong intra-


company divisions and a heterogeneous system landscape. Processes end artificially at system and departmental limits.

Figure 49: SAP PLM

The goal of SAP PLM is to support the entire product life cycle. The life cycle of a product includes product development, procurement, and service. Starting in product development, the product data that is gathered is used for all subsequent processes. This enables other areas, such as SAP Supply Chain Management, to benefit from the data. According to this principle, an integrated product development process goes far beyond the current methods used in product development. SAP Business Suite enables customers and vendors to be equally involved in the extended process chains of product development.

Product and Service Leadership

Figure 50: Product and Service Leadership

Many companies focus on a set of interdisciplinary business processes, also called end-to-end scenarios, to address the following business drivers:

� Differentiation

� Shortening product life cycles

� Margin pressure

� Increasing regulations

Lesson: Using Product Lifecycle Management


These business drivers typically cut across the value chain and span multiple departments and organizational units.

Goals of these business drivers include the following:

CContinuous product innovation

Managing innovation includes corporate strategy, product roadmapping, idea and concept management, feasibility assessment, and a new product development and introduction (NPDI) process and market launch.

Integrated product development

Integrated product development represents the core product definition and production ramp-up process, when the product design and structure are defined, tested, and validated.

Product delivered as a service

Many manufacturers of classical products make their product benefits available to customers through service agreements. This changes the business model from “product ” to “solution provider. ”

Embedded product compliance

Regulations concerning safety, environmental, or other aspects of the products are becoming more important. To comply with these regulations, companies must take them into account during design, manufacturing, shipment, servicing, and end-of-life phases of PLM.

SAP PLM brings together numerous benefits that help your company keep ahead of the competition.

Benefits of SAP PLM include the following:

� Reduce costs through measures such as effective cost control in projects or by minimizing the maintenance costs.

� Increase productivity by pooling information and sharing it with your partners and customers.

� Achieve higher productivity by quickly introducing new products to the market.

� Gain competitive advantage by increasing customer satisfaction, for example, by involving your customers early in the development process. This enables you to tailor your products to the needs of both customers and the marketplace.

Unit 4: Logistics


Key Functional Areas of SAP PLM

Figure 51: Key Functional Areas of SAP PLM

SAP Product Lifecycle Management offers all the functionality you need for integrated product and asset management.

Features and functions of PLM include the following:

FFeature / Function Description

Program and project management Program and project management provides advanced capabilities to plan, manage, and control the complete product development process.

Lifecycle management Lifecycle data management provides an environment for managing specifications, bills of materials, routing and resource data, project structures, and related technical documentation throughout the product life cycle.

Lifecycle collaboration Lifecycle collaboration supports collaborative engineering and project management, employing XML-based Web standards to communicate information such as project plans, documents, and product structures across virtual development teams.

Quality management Quality management provides integrated quality management for all industries throughout the entire product life cycle.

Enterprise asset management Enterprise asset management manages physical assets and equipment, covering all components of an enterprise asset management system.

Lesson: Using Product Lifecycle Management


FFeature / Function Description

Environment, health, and safety management

Environment, health, and safety management provides a solution for environment, health, and safety issues by enhancing business processes to comply with government regulations.

SAP PLM is a complete solution. It covers the entire life cycle of a product. SAP PLM is aimed at providers of complete solutions who develop a product for a specific customer, manufacture and deliver this product to the customer, and then provide service activities for the customer once the product is live.

Integration ElementsMost of the functions of SAP PLM are also core functions of SAP ERP. SAP PLM runs in the same system as SAP ERP and is directly connected to the logistic functions in SAP ERP. Additional functions are delivered through collaboration projects and SAP Portfolio and Project Management.

Product Lifecycle Management




Unit 4: Logistics


Unit 4


1. What is the basic procurement process in an SAP system?Choose the correct answers.

X AA Inquiry, sales order, purchase order, delivery

X B Purchase requisition, purchase order, goods receipt, invoice receipt

X C Sales order, production order, purchase order

X D Goods receipt, purchase order, invoice receipt, vendor master

2. When you enter an invoice with reference to a purchase order, the system suggests data from the purchase order and the goods receipt.Determine whether this statement is true or false.

X True

X False

3. SAP SRM can only manage the direct procurement of goods and services.Determine whether this statement is true or false.

X True

X False

4. Which of the following is an operational procurement process within SAP SRM?Choose the correct answers.

X A Design collaboration

X B Supply strategy development

X C Self-service procurement

X D Supplier registration

X E Spending analysis


5. It is impossible to create a catalog with SAP SRM.Determine whether this statement is true or false.

X True

X False

6. Which of the following processes (applications) are part of the production processes?Choose the correct answers.

X AA Sales and Operations Planning

X B Delivery processing

X C Material requirements planning

X D Manufacturing execution

X E Master production scheduling

7. Which of the following pieces of information is available in the production order?Choose the correct answers.

X A Order components

X B Production dates

X C Production instructions

X D Order costs

X E All of the above

X F None of the above

8. Name the manufacturing execution process step that allows someone to enter the actual time and activities of the various operations during the production process.Choose the correct answers.

X A Disaggregation

X B Confirmation


X D Costing



9. Name one of the two main components of SAP Supply Chain Management.Choose the correct answers.

X AA Customer Relationship Management

X B Radio Frequency Identification (RFID)

X C Global Available-to-Promise

X D SAP ERP

10. Order promising, which includes Global Available-to-Promise, is the critical link between which two applications?Choose the correct answers.

X A SAP NetWeaver and reporting

X B SAP Supplier Relationship Management and SAP Business Information Warehouse

X C SAP Customer Relationship Management and SAP Supply Chain Management

X D SAP Supply Chain Management and SAP NetWeaver

11. Which of the following is the correct sales order management process?Choose the correct answer.

X A Picking, sales order, goods issue, billing, delivery

X B Sales order, picking, goods issue, billing, delivery

X C Sales order, delivery, picking, goods issue, billing

X D Goods issue, picking, sales order, delivery, billing

12. What three activities can be performed with a delivery document?Choose the correct answers.

X A Picking

X B Debit memo

X C Packing

X D Credit memo

X E Goods issue



13. When you post goods issue on a delivery document, an accounting document is created in financial accounting.Determine whether this statement is true or false.

X True

X False


X AA Picking, sales order, goods issue, billing, delivery




15. A billing document can be created from what two types of documents?Choose the correct answers.

X A Inquiry

X B Sales order

X C Quotation

X D Rebate list

X E Delivery

16. During the creation of the billing document, an accounting document is created in financial accounting, thus creating an accounts receivable entry.Determine whether this statement is true or false.

X True

X False



17. What SAP components are included in SAP CRM?Choose the correct answers.

X AA SAP NetWeaver Business Information Warehouse

X B SAP Enterprise Portal

X C SAP ECC



18. Lifecycle data management can only be used when the design of a product is finished.Determine whether this statement is true or false.

X True

X False

19. Which of the following are key functional areas of SAP PLM?Choose the correct answers.

X A Lifecycle data management

X B Environment, health, and safety management

X C Quality management

X D Enterprise asset management

X E Development management



Unit 4


1. What is the basic procurement process in an SAP system?Choose the correct answers.

X AA Inquiry, sales order, purchase order, delivery

X B Purchase requisition, purchase order, goods receipt, invoice receipt

X C Sales order, production order, purchase order

X D Goods receipt, purchase order, invoice receipt, vendor master

In the SAP system, the standard flow of transactions in the basic procurement process is <MenuPath>Purchase requisition processing Purchase order processing Goods receipt entry Invoice receipt entry.

2. When you enter an invoice with reference to a purchase order, the system suggests data from the purchase order and the goods receipt.Determine whether this statement is true or false.

X True

X False

An advantage of entering an invoice with reference to a purchase order is that the system suggests this data, thereby eliminating the need to re-enter the data.

3. SAP SRM can only manage the direct procurement of goods and services.Determine whether this statement is true or false.

X True

X False


4. Which of the following is an operational procurement process within SAP SRM?Choose the correct answers.

X AA Design collaboration

X B Supply strategy development

X C Self-service procurement

X D Supplier registration

X E Spending analysis

5. It is impossible to create a catalog with SAP SRM.Determine whether this statement is true or false.

X True

X False

6. Which of the following processes (applications) are part of the production processes?Choose the correct answers.

X A Sales and Operations Planning

X B Delivery processing


X D Manufacturing execution

X E Master production scheduling

Delivery processing is part of the functionality of sales order management. All of the other processes listed (SOP, MRP, MPS, and manufacturing execution) are part of production.



7. Which of the following pieces of information is available in the production order?Choose the correct answers.

X AA Order components

X B Production dates

X C Production instructions

X D Order costs

X E All of the above

X F None of the above

The production order, which is the central data object in shop floor control and manufacturing execution, contains all data relevant to production objectives, material components, required resources, and costs.

8. Name the manufacturing execution process step that allows someone to enter the actual time and activities of the various operations during the production process.Choose the correct answers.

X A Disaggregation

X B Confirmation


X D Costing

9. Name one of the two main components of SAP Supply Chain Management.Choose the correct answers.

X A Customer Relationship Management

X B Radio Frequency Identification (RFID)

X C Global Available-to-Promise

X D SAP ERP



10. Order promising, which includes Global Available-to-Promise, is the critical link between which two applications?Choose the correct answers.

X AA SAP NetWeaver and reporting

X B SAP Supplier Relationship Management and SAP Business Information Warehouse

X C SAP Customer Relationship Management and SAP Supply Chain Management

X D SAP Supply Chain Management and SAP NetWeaver


X A Picking, sales order, goods issue, billing, delivery




That is correct. The sales order must be created first, followed by the delivery document, picking, posting goods issue, and, finally, billing.

12. What three activities can be performed with a delivery document?Choose the correct answers.

X A Picking

X B Debit memo

X C Packing

X D Credit memo

X E Goods issue

From a delivery document, you can pick, pack, and post goods issue.



13. When you post goods issue on a delivery document, an accounting document is created in financial accounting.


X True

X False

Posting goods issue in sales order management causes an accounting document to be created in financial accounting. This records the financial impact of goods leaving your premises.

14. Which of the following is the correct sales order management process?

Choose the correct answer.

X AA Picking, sales order, goods issue, billing, delivery




15. A billing document can be created from what two types of documents?


X A Inquiry

X B Sales order

X C Quotation

X D Rebate list

X E Delivery

A billing document can only be created from a sales order or delivery. Inquiry and quotation documents and rebate lists in the standard system are not billable, since no goods or services have been rendered.

16. During the creation of the billing document, an accounting document is created in financial accounting, thus creating an accounts receivable entry.


X True

X False

As soon as the billing document is created, it is automatically passed to financial accounting and the appropriate entries are made to the general ledger accounts.



17. What SAP components are included in SAP CRM?Choose the correct answers.

X AA SAP NetWeaver Business Information Warehouse

X B SAP Enterprise Portal

X C SAP ECC



A through C are all components in SAP Customer Relationship Management.

18. Lifecycle data management can only be used when the design of a product is finished.Determine whether this statement is true or false.

X True

X False

Lifecycle data management can manage the data during all phases of a material: the design phase, the planning and production phase, and the maintenance phase.

19. Which of the following are key functional areas of SAP PLM?Choose the correct answers.

X A Lifecycle data management

X B Environment, health, and safety management

X C Quality management

X D Enterprise asset management

X E Development management

Development management is not a key functional area of SAP PLM.



UNIT 5 Financials

Lesson 1

Viewing Financial Processes 186

Lesson 2

Outbound Payments 193

Lesson 3

Analyze General Ledger accounting 196Exercise 1: Create a Journal Entry 200

Lesson 4

Generating Financial Statements 204Exercise 2: Generate a Financial Statement 208

Lesson 5

Monitoring Internal Costs 212Exercise 3: Execute a Cost Center Report 222Exercise 4: Execute a Profitability Analysis Report 225

UNIT OBJECTIVES

� Outline the tasks associated with financial accounting

� Process an outbound payment

� Create a journal entry

� Generate financial statements

� Execute a cost center report

� Execute a standard cost estimate

� Execute a profitability analysis report


Unit 5Lesson 1

160Viewing Financial Processes

LESSON OVERVIEWThis lesson explains the tasks in financial accounting and how they are integrated with other areas.

Note- Financial Supply Chain Management has been removed. Just in case you are asked about this, FSCM helps reduce working capital and float, improve billing and payment processes, and make more accurate cash forecasts. FSCM offers a comprehensive treasury and Corporate Finance Management solution for companies from various industries. It enables companies to manage financial resources and to analyze and optimize business processes.

Business ExampleAs a new member of the finance department, you must familiarize yourself with various accounting tasks and understand the integration points with other areas. To meet these expectations, you require the following knowledge:

� A basic understanding of financial functions

� A good understanding of the tasks in financial accounting

� A basic understanding of integration points with other applications



Financial Accounting

Accountants are really interested in the ability to process financial transactions.

As a financial professional, you must produce accurate, timely, financial reports that satisfy accounting and regulatory standards that vary by industry and by country. The Sarbanes-Oxley Act of 2002 permanently raised the stakes. You are now responsible for enforcing standards for internal controls and governance to ensure transparency of your company’s accounting practices. Your consolidation and reporting processes must be executed quickly and efficiently.


Figure 52: Financial Excellence

SAP Enterprise Resource PlanningSAP ERP Financials, which is part of the SAP ERP application, combines core accounting and financial reporting capabilities with various financial functions.

Financial functions include the following:

� Financial Supply Chain Management

� Treasury management

� Performance management

� Compliance management

Figure 53: Accounting Architecture

SAP ERP Financials simultaneously supports global financial reporting standards and multiple currencies with more than 45 country-specific versions. The solution powers the highest-performing finance organizations in the world. SAP ERP Financials provides benefits to ensure compliance and better predict business performance.

Benefits to ensure compliance include the following:

Lesson: Viewing Financial Processes


IImprove corporate performance

Provides the ability to quickly respond to changing business conditions with effective business strategies. Examples of these strategies include defining financial targets, developing a suitable business plan, and monitoring costs and revenue during execution.

Achieve faster closes Streamline day-to-day and period-end business processes, automate many tasks, and improve communication and collaboration.

Improve corporate governance and transparency

Provides broader support for accounting standards and federal regulations, and improved administration of internal controls.

Shorten days sales outstanding

Automates dispute, credit, and collections management, and offers electronic invoicing and payment capabilities.

Optimize global cash management

Report, analyze, and allocate cash in real time, and establish in-house banks or payment centers.

Improve financial and managerial reporting

Provides the flexibility to report performance by multiple types of business units and/or organizational structures, including cost and profit centers.

Improve process integration between finance and treasury

Integrate risk and treasury transactions with core accounting and financial reporting processes.

Make finance costs more competitive

Innovate processes, collaborate with supply chain partners, and establish global shared-service operations.

Enterprise Performance Management is a key functional area of the SAP Financials solution that supports the strategic management processes in a company at all relevant levels. The strategy should determine the company processes. It is supported by the Business Intelligence Platform (BW & SAP BusinessObjects). Enterprise Performance Management includes:

� BPC Business Planning & Consolidation

� SSM SAP Strategy Management

� PCM Profitability & Cost Management

� FIM Financial Information Management

� FC Financial Consolidation.

Financial Accounting DetailsCompany-wide control and integration of financial information is essential to strategic decision making. SAP ERP Financials gives you the ability to centrally track financial accounting data within an international framework of multiple companies, languages, currencies, and charts of accounts. For example, when raw materials move from inventory to manufacturing, the system reduces quantity values in inventory and simultaneously subtracts monetary values for inventory accounts in the balance sheet.

Unit 5: Financials


Figure 54: Financial Accounting

The financial accounting function complies with international accounting standards, such as US GAAP and IAS. It also fulfills the local legal requirements of many countries and fully reflects the legal and accounting changes resulting from market and currency unification.

Tasks in Financial Accounting

Draw the following picture

Figure I-3: Financial Accounting

To your diagram, add in a customer in A/R, vendor in A/P and fixed asset in A/A. Explain that they have a reconciliation account attached to their master data. Draw the reconciliation accounts in the G/L and link the two together. This is a key point for accountants – Real time update – not two documents. The same document updates the sub-ledger and the G/L.The document is either in both or neither. They cannot be out of balance.

General Ledger: external accounting and accounts; records all business transactions

Accounts Payable: records and manages vendor accounting data.

Travel Management: optimize entire travel processes, from the initial request to the payment of travel expenses.



Asset Accounting: maintains and analyzes fixed assets according to generally accepted rules in the company's country.

Special Ledger: develop your own accounting ledgers separate from the general ledger. These will continue to be available with the New General Ledger although the need for them should be greatly reduced.

Accounts Receivable: records and manages customer accounting data.

Figure 55: General Ledger and Sub-ledger

Financial accounting focuses on the general ledger (G/L), the processing of receivables and payables, and Asset Accounting. Important tasks of financial accounting include recording monetary and value flows and evaluating inventories.

Financial accounting includes the following:

GGeneral ledger The general ledger contains a recording of all accounting-relevant business transactions on G/L accounts from a business point of view. It is managed at the company code level.

G/L accounts The chart of accounts contains structured definitions of all G/L accounts in the general ledger.

Accounts payable Accounts payable accounting (A/P) records all business transactions related to suppliers. Accounts payable receives much of its data from procurement.

Accountsreceivable

Accounts receivable (A/R) records all business transactions that have to do with customer relationships. Accounts receivable receives much of its data from sales order management. Bank accounting supports the booking of cash flows.

Asset Accounting Asset Accounting (AA) records all business transactions that have to do with asset management.

Accountingstandards

For many companies, it may be necessary to prepare a balance sheet not only for national accounting standards, but also for other valuation guidelines such as IAS or US GAAP. To be able to carry out these different valuation approaches, valuation areas are established in the

Unit 5: Financials


SAP ERP system. These parallel accounting standards can be realized with SAP ERP Financials by handling the different valuations on different, parallel ledgers. These ledgers are used in different balance sheet and profit-and-loss structures.

SSAP Consolidation SAP Consolidation forms the group structure, using consolidation groups and units for consolidation tasks.

How to View the Integration ProcessHow to show the integration between financial accounting and sales anddistribution.

1. You can show any of the transactions that participants posted in an earlier unit.From the SAP Easy Access screen, choose Accounting -> Financial Accounting -> AccountsReceivable -> Account -> FBL5N: Display Change Line items.

Customer ROHRER##

Company Code 1000

2. Show the Change Layout function .

3. Choose any of the other layouts.

4. Double-click the document to show the details.

5. Choose the Document Overview icon to show whole document .

6. From the SAP Easy Access screen, choose Environment -> Document Environment -> Original Document . This takes you to the billing document;from here, you can show document flow.

For the next demo, if there are no transactions in the current year, re-execute for a previous year.

Demonstration continued: Show the Information on a G/L account7. From the SAP Easy Access screen, choose Accounting -> Financial Accounting -> General

Ledger -> Account -> DisplayBalances (new) or use transaction FAGLB03. Use Account 800000/Company Code 1000/ Fiscal Year = Current Year and Ledger OL .

8. Execute the transaction .

9. Drill down from the balance display to the line items by double-clicking in one of the cells. Ignore any message about migration.

10.Show the invoice again.

The following demo would work for the AR document too.11. Demonstrate the integration between financial accounting and materials management

12. From the SAP Easy Access screen, choose Accounting -> Financial Accounting -> AccountsPayable -> Account -> Display Change Line items or use transaction FBL1N. Use Vendor 1000 and Company Code 1000.

13. Execute the Display .



114.Drill down into the document by double clicking.

15. Choose Environment -> Document Environment -> Relationship browser .

16.Open up all the arrow heads. You can see all the logistics documents attached .

17. To display one, highlight it and choose the magnifying glass .



Unit 5: Financials


Unit 5Lesson 2

165Outbound Payments

LESSON OVERVIEWThis lesson shows you how to process a payment to a vendor.

The unit provides an introduction to the payment processing section of financial accounting.

Business ExampleYou are responsible for processing vendor invoices and must be able to process outbound payments. For this reason, you require the following knowledge:

� A basic understanding of the purchase-to-pay process

� A good understanding of the invoice verification process



Process an Outbound PaymentWhen using business-related processes, it is necessary to differentiate external and internal quantity and value flows.

Examples of business-related processes include:

� Purchase to pay (procurement)

� Plan to product (process from the planning to the internal added value)

� Order to cash (sales)

The costs and services quantity flows that are necessary for efficient accounting are displayed for the different accounting components.

One essential business process is the purchase of goods (purchase to pay).


Figure 56: Purchase-to-Pay Process Overview

The purchase-to-pay process includes the following steps:

11. Order requirement:

During purchase order handling, data such as supplier, material, plant, and other data relevant to the purchasing organization must be provided by the user. No postings are made at this point in financial accounting.

2. Order:

The order is placed.

3. Goods receipt:

When goods are received, the system checks, among other things, the quantity of goods received against the order quantity. A material document is created to update the stock. At the same time, a document is created in financial accounting to post the evaluated goods to the material stock account or the consumption account (debit) and to a goods receipt/invoice receipt account (credit).

4. Bill check

During invoice verification, the vendor's invoice is checked for correctness. These purchasing processes are handled as part of logistics in the SAP system. The vendor invoice is posted and, at the same time, a document is created in financial accounting. This document posts the invoice amount to the goods receipt/invoice receipt account (debit) and the vendor account (credit). The goods receipt/invoice receipt (GR/IR) account is used to make sure that a goods receipt is executed for every invoice, and vice versa.

5. Payment processing:Payment processing usually takes place in financial accounting. It is here that decisions are made about the payment process, for example, the payment methods and the bank settlement.

Unit 5: Financials


Purchase to Pay: Account View

Figure 57: Purchase to Pay: Account View

You can draw the different accounts during the demo to show the various postings. (Don’t forget Debit is on the left and Credit is on the right!)

When the Purchase Order is created, there is no update in Financial Accounting. The purchase order is just an order.

The first transaction that touches FI is the goods receipt. The goods receipt debits the expense or stock account and credits the GRIR Account. The value used for this is the purchase order cost multiplied by the goods receipt quantity. This way the cost is included in the correct place in the accounts and we have an accrual for the outstanding amount to be invoiced in the GRIR. This means that even if month end happens at this point there is no additional accounting to be done.

When the invoice is received, it debits the GRIR account thus cancelling out the goods receipt and credits the vendor account in accounts payable. The posting into the GRIR is the invoice quantity multiplied by the purchase order price. Any difference between the purchase order and Invoice price follows the original expense/stock posting. The only imbalance that the GRIR should show is if the quantities between goods receipt and invoice disagree. If this is the case, then it will be rectified with subsequent postings - additional goods receipts, returns and credit notes.

After several sequential postings in the purchase-to-pay process, the GR/IR clearing account and the bank clearing account are balanced again. The built up liabilities are balanced by the payment. From the balance sheet, the procurement into the warehouse is a material stock increase bound to a bank account reduction.



Lesson: Outbound Payments


Unit 5Lesson 3

168Analyze General Ledger accounting

LESSON OVERVIEWThis lesson shows you how to create a journal entry.

The unit provides an introduction to financial accounting and the new general ledger. A new exercise on creating a journal entry has been added to this lesson.

Business ExampleYou are responsible for the analysis of general ledger accounts and the creation of journal entries. You must understand the characteristics of the general ledger and must be able to create and modify entries. For this reason, you require the following knowledge:

� A good understanding of the general ledger

� A good understanding of the journal entry creation process



New General Ledger

The New General Ledger function is turned on in our training system. The New G/L is available from ECC 5.0. New customers from ECC 5.0 onwards must use the New G/L. Existing customers upgrading from earlier versions can continue with the classic ledgers. The New G/L accounting tables are FAGLFLEX and the tables for the Classic G/L Accounting are GLT0.

When you activate New General Ledger Accounting, the New General Ledger Accounting tables are updated in the standard system. The balances in the classic general ledger accounting tables also continue to be updated for migration scenarios. This default setting enables you to use comparison reports during the implementation phase of New General Ledger Accounting. These comparison reports are used to ensure that the New General Ledger Accounting delivers correct results. Once the results are verified, the classic General Ledger Accounting tables are deactivated.


Figure 58: General Ledger Accounting

Advantages of the New General LedgerEach area in the general ledger is a current application in financials. Each area has its own data tables and its own “ledgers.” If you post a document in finance, it is replicated in the other areas. With the New General Ledger, the structure changes.

Figure 59: General Ledger Accounting: New General Ledger

There is just one data table. The “dimensions” that were previously represented by other components, for example, profit center, now become fields in the New General Ledger. Profit center, in this example, is an extra piece of information that is stored in the general ledger.

Advantages of using New General Ledger Accounting are as follows:

� Management and segment reporting are enhanced.

� New General Ledger Accounting meets extensibility and international accounting standards.

Options to expand standard accounting functions are supported in the New General Ledger Accounting for both international and industry-specific needs. New General Ledger Accounting supports international requirements with the integration of a management

Lesson: Analyze General Ledger accounting


dimension in the general ledger, and support for simple cost accounting. Customers can also define their own standards and terminology.

New fields can be added to the general ledger coding block. (Prior to the new G/L, you could only do this with the special ledger.) This avoids the necessity of setting up additional special ledgers. It also means that some industry solutions will be possible in the general ledger now, rather than special ledgers.

Document Splitting

Document splitting means that dimensions are allocated to the document as you go along. The document structure has changed so that you have two parts to a finance document: the entry view and the general ledger view.

Parts of a finance document include the following:

EEntry view The entry view has not changed. This is how the document appears in the subledger of accounts payable or accounts receivable.

Generalledger view

The general ledger view includes the splitting information. For example, if an invoice is expensed to two profit centers, the vendor is allocated to the two profit centers as well. The general view is how the document appears only in the general ledger.

Balanced Book by Any Dimension

This area is essential to reporting balance sheets for segments, profit centers, and business areas. The real-time document split feature makes it possible to control balance sheet entries using segments. This feature helps you meet legal requirements.

Parallel Set of Books

Parallel accounting is possible with the assignment of one lead ledger. All company codes are assigned to the lead ledger. Management accounting is also integrated in the lead ledger. New General Ledger Accounting makes it possible to manage multiple books within the general ledger.

Fast Close

Activating the new general ledger accounting allows for the unification of financial and management accounting. This unification eliminates inconsistencies and reconciliation processes. Data is posted in real time from financial to management accounting, allowing legal and management data to reside in one uniform database.

Total Cost of Ownership (TCO) reduction

Using New General Ledger Accounting reduces data redundancy and implementation costs.

Legal Requirements and Compliance

This area of the new general ledger accounting covers the ever-increasing need to meet new legal requirements.

How to Create a Journal Entry

1. Create a journal entry.

a. From the SAP Easy Access screen, choose Accounting -> Financial Accounting ->General Ledger -> Document Entry -> Enter G/L Account Document.

2. If a Company Code dialog box appears, enter company code 1000.

Unit 5: Financials


33. Continue

a. Continue by choosing Enter.

4. Document Date

a. Enter today's date.

5. Posting Date

a. Enter today's date.

6. Enter short text

a. Increase in capital ## (## = your group number assigned by the instructor)

7. Enter line item entries.

a. If screen variants are not displayed, choose the Tree On button.

b. Open the Screen Variants for Items folder.

c. Under Screen Variants for Items, double-click the ZPROFITCENTER screen variant.

d. Choose the Tree Off button.

8. Enter the following information for Line Item 1: G/L account 113100, Credit: EUR 5000, Profit Center 1000.

9. Enter the following information for Line Item 2: G/L account 100000, Debit: EUR 5000, Profit Center 1000.

10. Post the document:

a. From the posting screen, choose Document -> Display Document.

b. Alternatively, you can display the document by navigating as follows from the SAP Easy Access screen: Accounting -> Financial Accounting -> General Ledger ->Document -> Display.



Unit 5Exercise 1

Create a Journal Entry

Business ExampleYou are responsible for reviewing general ledger entries and processing entries as required. You must create a journal entry to post EUR 5,000 to general ledger accounts 1131000 (credit) and 100000 (debit) under profit center 1000.

LLine Item 1: Field Name Field Value

G/L Account 113100

D/C Credit

Amount in Doc. curr. 5000

Profit Center 1000

Line Item 2: Field Name Field Value

G/L Account 113100

D/C Debit

Amount in doc. curr. 5000

Profit Center 1000

1. Create a journal entry to post EUR 5,000 to credit general ledger account 113100 and debit general ledger account 100000 using profit center 1000.

2. If a Company Code dialog box appears, enter company code 1000.

3. Enter the document date

4. Enter the posting date

5. Enter the reason for the journal entry.

6. Enter the line item entries as shown in the table above.

7. Enter the information for Line Item 1, as shown in the table.

8. Enter the information for Line Item 2 from the table provided.

9. Post the document.


Unit 5Solution 1

Create a Journal Entry

Business ExampleYou are responsible for reviewing general ledger entries and processing entries as required. You must create a journal entry to post EUR 5,000 to general ledger accounts 1131000 (credit) and 100000 (debit) under profit center 1000.

LLine Item 1: Field Name Field Value

G/L Account 113100

D/C Credit

Amount in Doc. curr. 5000

Profit Center 1000

Line Item 2: Field Name Field Value

G/L Account 113100

D/C Debit

Amount in doc. curr. 5000

Profit Center 1000

1. Create a journal entry to post EUR 5,000 to credit general ledger account 113100 and debit general ledger account 100000 using profit center 1000.a) From the SAP Easy Access screen, choose Accounting -> Financial Accounting ->

General Ledger -> Document Entry -> Enter G/L Account Document.

2. If a Company Code dialog box appears, enter company code 1000.a) Enter company code 1000.

b) Continue by choosing Enter.

3. Enter the document datea) Enter today's date.

4. Enter the posting datea) Enter today's date.

5. Enter the reason for the journal entry.a) Increase in capital ## (## = your group number assigned by the instructor)

6. Enter the line item entries as shown in the table above.a) If screen variants are not displayed, choose the Tree On button.

b) Open the Screen Variants for Items folder.


cc) Under Screen Variants for Items, double-click the ZPROFITCENTER screen variant.

d) Choose the Tree Off button.

7. Enter the information for Line Item 1, as shown in the table.a) Enter G/L Account 113100, Credit: EUR 5000, Profit Center 1000.

8. Enter the information for Line Item 2 from the table provided.a) Enter G/L Account 10000; Debit: EUR 5000; Profit Center 1000.

9. Post the document.a) From the posting screen, choose Document -> Display Document.

b) Alternatively, you can display the document by navigating as follows from the SAP Easy Access screen: Accounting -> Financial Accounting -> General Ledger -> Document ->Display.


Unit 5Lesson 4

175Generating Financial Statements

LESSON OVERVIEWThis lesson shows you how to generate financial statements.

Business ExampleYou are responsible for producing financial statements and must be able to generate the documents in a timely manner. For this reason, you require the following knowledge:

� A good understanding of financial statements

� A good understanding of financial reports required for external reporting purposes



Financial StatementsThe purpose of recording business transactions is to create balance sheet and profit and loss statement reports. These reports must be adapted to your specific national requirements. Various balance sheet and profit-and-loss structures can be set up in the SAP ERP system for different reporting requirements. These balance sheet and profit-and-loss structures define exactly which accounts should appear in which balance sheet items. Many structures are already predefined when your system is delivered.

Financial reports that are required for external reporting purposes are created in financial accounting. These external reporting requirements, such as the different legal requirements of the relevant financial authorities, are provided, as a rule, by general accounting standards. Examples of general accounting standard sources are US Generally Accepted Accounting Principles (US GAAP) or International Accounting Standards (IAS).

Two procedures that can generally be used to structure the profit and loss statement are as follows:

� Period accounting

� Cost-of-sales accounting

Both procedures result in the same operating income. Which procedure should be used is either stipulated by legal regulations, or can be selected freely when there is a legal option. In this case, you make a decision based on an analysis from a business point of view (for example, international comparability).

Period Accounting

You produce the profit account by grouping the general ledger accounts together and subtotalling them.

Examples of profit accounts that can be grouped are:


� Revenues

� Stock movements

� Salary costs

� Travel costs

� Utility costs

The total output of a period is set against the total costs for a period. The total output of a period is defined here as the sales revenue minus a decrease in the warehouse inventory, or plus an increase in the warehouse inventory. The total costs of the period are structured according to the individual expense type. This means the balances of similar expense accounts can be easily grouped (for example, different accounts for personnel expenses). This structuring clarifies how the expenses are distributed to the different production factors.

Cost of Sales Accounting

Cost-of-sales accounting includes grouping cost objects into functional areas. These groupings are in addition to the groupings for the general ledger accounts.

Functional area groupings could include the following:

� Sales and distribution costs

� Finance and administration costs

� Research and development costs

The revenues of the period are determined in exactly the same way as in period accounting. Stock movements are ignored and, instead, the cost of sales for the period shows the expenses that have been incurred for the realization of the revenue. The expenses are not structured according to expense types, as they are in period accounting, but according to their business origin.

Examples of period accounting business origins are as follows:

� Manufacturing

� Distribution

� Administration

� Research and development

� Production

The goal of financial accounting is to produce financial statements. These are aimed at people external to the organization (for example, shareholders, banks, auditors, and the general public). The standard way to produce financial statements in the system is to run a balance sheet and profit and loss statement. There are two standard reports: one Advanced Business Application Programming (ABAP) report and one drill-down report.

Lesson: Generating Financial Statements


Figure 60: Balance Sheet and Profit and Loss Statement

How to Generate a Financial Statement

11. Generate a financial statement.a) From the SAP Easy Access screen, choose Accounting -> Financial Accounting ->

General Ledger -> Information System -> General Ledger Reports (New) -> FinancialStatement / Cash Flow -> General -> Actual/Actual Comparisons ->S_PL0_860000028 Financial Statement: Actual/Actual Comparison.

Field Name Values

Currency Type 10

Company Code 1000

Ledger 0L (Leading Ledger)

FIS Annual Rep.Struc INT

Reporting year <Current Year>

Rep. period from <Current month>

Report period until <Current month>

Comparison year <Previous year>

Compar. period from <Current month>

Compar. period until <Current month>

Output type Graphical report-output

The required steps are detailed in the task titled balance sheet and profit & loss statement.

You can limit by account, companycode, business area,andcurrency. You specify which financial statement version you are using and which fiscal year you want.

Unit 5: Financials


An alternative account number prints out the alternative account number instead of the operating chart of accounts.

22. Briefly explain the balance sheet and profit andloss statement.

3. Double-click any item on the navigation pane (for example, profit center) to get a different view of the results.

4. Double click FS Items to go back to the starting view.

5. Open up the profit-and-loss and revenue folders in the hierarchy by clicking on the arrows. Drag gross sales revenue to the profit center. The sales revenue is now analyzed by profit center. If you don’t want this any more, double-click gross sales revenue in the navigation panel on the left. This defaults back to the profit center view. To get back to the financial statement view, double-click the financial statement version in the navigation panel.

6. Drag gross sales revenue to account number. Now you see a split of the revenue by account number.

7. You want to look at the detail behind account 800000. Click once on 800000 then choose

the Report button . Choose line items.

8. You see all the postings to the revenue account.



Unit 5Exercise 2

Generate a Financial Statement

Business ExampleYou are responsible for generating financial statements and have been asked to present these statements at a departmental meeting. You must now generate the statements.


11. Execute a standard report for the financial statement for company code 1000. Compare the actual posting period of the current year with the same posting period of the previous year. Use the drill-down report and financial statement version INT for the leading ledger 0L.

2. Check whether the balance of assets and liabilities is equal.

3. How much is the profit and loss statement? (Note: Revenue/ income is a negative number). What business processes triggered the profit ?Answer:___________________________

4. Which is the largest expense block in the profit and loss statement?Answer:_________________________

5. In which profit center did the company achieve the highest revenues?Answer:_________________________

6. Analyze the same revenues by business area.


Unit 5Solution 2


Business ExampleYou are responsible for generating financial statements and have been asked to present these statements at a departmental meeting. You must now generate the statements.


11. Execute a standard report for the financial statement for company code 1000. Compare the actual posting period of the current year with the same posting period of the previous year. Use the drill-down report and financial statement version INT for the leading ledger 0L.a) From the SAP Easy Access screen, choose Accounting -> Financial Accounting ->

General Ledger -> Information System -> General Ledger Reports (New) -> FinancialStatement/Cash Flow -> General -> Actual/Actual Comparisons -> FinancialStatement: Actual/Actual Comparison (transaction S_PLO_86000028) .

b) Enter the following data.

Field Name Values

General selection criteria

Currency Type 10

Company Code 1000

Report selections

FIS Annual Rep.Struc INT

Ledger 0L Leading Ledger (use the F4 help for selection)

Reporting year <Current year>

Rep. period from <Current month>

Report period until <Current month

Comparison year <Previous year

Compar. period from <Current month>

Compar. period until <Current month>

Output type

Graphical report-output Selected


Hint:Leave all other selection fields blank.

cc) Choose Execute to start the report.

Hint:Do not exit the report. The rest of the task steps are performed in the report.

2. Check whether the balance of assets and liabilities is equal.a) The balance of assets (application of funds) and liabilities (source of funds) should be

equal.Open up the rows of the financial statement by clicking on the arrows.

3. How much is the profit and loss statement? (Note: Revenue/ income is a negative number). What business processes triggered the profit ?Answer:___________________________a) Expand the sub-tree for the profit and loss statement by choosing the arrow in front

of the line you want to expand.The profit should be mostly derived from the sales revenues - gross sales revenues – domestic. It could also be triggered from inventory change, if a high number of finished goods were delivered to stock (stock increase).

4. Which is the largest expense block in the profit and loss statement?Answer:_________________________a) Check the positive value blocks (expenses) and determine if raw materials and

consumables, staff, or depreciation caused the highest costs.

5. In which profit center did the company achieve the highest revenues?Answer:_________________________a) Select the value for sales revenues and drag it to the profit center in the navigation area

to check for the profit center with the highest value.

Note:If you want to deselect a drill-down level, drag it from the navigation area to the report (or right-click).

b) Choose Exit to exit to the SAP Easy Access screen.

6. Analyze the same revenues by business area.a) Double-click on business area in the navigation panel.


Unit 5Lesson 5

182Monitoring Internal Costs

LESSON OVERVIEWThis lesson shows you how to generate cost center, profitability, and cost reports.

Business ExampleYou are responsible for management accounting and must be able to execute cost center, profitability, and cost reports. For this reason, you require the following knowledge:

� A good understanding of management accounting

� A good understanding of integration points

� A good understanding of Overhead Cost Controlling

� A good understanding of Product Cost Controlling

� A good understanding of profitability and sales accounting





Management Accounting

Many non-finance people will not want to perform the finance exercises. The key point of interest for finance people is the reporting and integration rather than the processing. The exercises have been updated to process various reports.

SAP ERP enables the valuation and recording of financial datafor financial reportingand for internal management reporting purposes. Management accounting contains all the functions necessary for effective cost and revenue controlling. It covers all aspects of management controlling and includes many tools for compiling information for company management. Financial data is tightly integrated with the business processes of SAP ERP logistics applications, and users can easily obtain detailed information about cost structures and profit margins.

Easy access to this data helps support and enable management to:

� Increase revenue

� Maximize customer profitability


� Reduce operating costs while increasing efficiency

� Reduce the cost of goods sold

� Improve inventory visibility

Areas in Management Accounting Management accounting offers many tools that can be used to prepare operating data for business analysis.

Figure 61: Areas in Management Accounting

Be careful with this diagram. This system is a new G/L and with the advent of New G/L the old EC-PCA is no longer used instead we use Profit Centers in Financial Accounting. This diagram suggests that PCA is still a separate module – it is not.

Basic Explanation of CO:

CO is the Management Accounting view for internal management purposes. It providesmore detail, flexibility and added functionality that we donot have in FI. CO is Profit and Loss only – there is no balance sheet. There can never be a balance sheet. Profit centers are not technically part of CO and never have been - they can have balance sheet items.

For G/L accounts that represent expenses and revenue we might want to analyze them further for internal purposes. To do this we create a cost element (the CO equivalent of a G/L account). This ensures that whenever we post to a G/L account with a Cost Element equivalent the transaction is relevant for CO and must have a CO cost Object on it (the place it is going in CO). For expenses, we have a choice of where it could go:

� Overhead Cost Controlling is mainly just for costs (not revenues)

� Cost centers (areas of cost in the business for example, marketing)

� Internal orders (specific events that we want to capture costs, for example a Trade Fair)

� Processes (used in activity based costing to record the cost of a process, for example, how much does it cost to process a purchase order as far as payment?

� Product Cost Controlling (specific external costs of production,for example, artwork)

Lesson: Monitoring Internal Costs


� Production Orders

� Sales Orders

� Product Cost Collectors

� Project Systems- You can also post to a WBS element if it is a cost for a particular project. From an accounting perspective, these act like big brother to internal orders

This now poses a problem as the costs and revenues are spread out all over the place. There are various tools in CO that you can use to reallocate the costs between the cost objects. We settle internal orders and WBS elements, (normally to cost centers eventually), so that they come to zero. The cost center costs are mainly reallocated to production orders and any differences are what make up the variances. production orders get turned into either stock or work in process (WIP).

Management Accounting Details

Details of management accounting include the following:

AAnalyze profit Profitability analysis enables you to determine how successful the enterprise is in different market segments (product divisions, for example), and its profitability over a period of time.

Analyzesuccess of individual profit centers

Profit Center Accounting is not technically part of controlling within the system. In New General Ledger Accouting, it is part of financial accounting; however it is often used to provide management and financial information. When you use profit centers, you assign a specific profit center to every object for which costs and revenues are incurred in your system. When data is posted on an object to which a profit center is assigned, the data is automatically transferred to profit center accounting. In this way, the actual data of the assigned objects is updated on the profit center.

Controloverhead costs and allocate costs

Overhead Cost Controlling allows you to analyze where overhead costs have been incurred. Cost Center Accounting is used to determine where costs are incurred in your organization. The internal order is a flexible accounting tool that can be used in many different ways to document costs and, sometimes, revenues.

Evaluate the costs of goods or services

Product Cost Controlling is concerned with all aspects of planning the cost of producing products or services, as well as tracking and analyzing the actual costs. Product Cost Controlling is used to calculate and evaluate the production costs of a product, and the costs or revenues from the rendering of a service or the execution of a project, in both plan and actual.

Classify costs and reconcile data

Cost Element Accounting answers the question of which costs have been incurred.

IntegrationData created in other SAP applications can have a direct influence on management accounting. For example, if a non-stock item is purchased, an expense is posted to the general ledger. This expense is also posted as a cost to a cost center or other management accounting object for which the item was purchased. Later, the cost from that cost center can be passed on as overhead to a production cost center, or elsewhere in management accounting.

Unit 5: Financials


Financial accounting is a primary data source for management accounting. Most expense postings that relate to the general ledger result in a cost posting in management accounting. These postings to the general ledger can be journal entries, or they can be created by accounts payable postings or depreciation postings from Asset Accounting or other SAP ERP applications. Thus, expense and revenue postings in financial accounting, for example, result in the costs and sales revenues in management accounting.

Figure 62: Integration

Overhead Cost ControllingOverhead Cost Controlling allows you to collect and analyze costs that cannot be directly assigned to the production of goods and services, and allocate them as far as possible according to their cause.

Cost Center Accounting is used to determine where costs are incurred in your organization. Costs incurred can be assigned to individual cost centers. Cost centers can also perform activities for which we can plan quantities and calculate values so that they may be recharged.

Cost centers can be grouped together to provide summary cost information. A fundamental requirement for implementing cost center accounting is the creation of a standard hierarchy for a controlling area. The standard hierarchy reflects the structure of all cost centers in the controlling area, and provides cost totals at each node of the structure.

Internal orders can be used to track costs and, in some cases, revenues within a controlling area. You can use internal orders to plan, monitor, and allocate costs. An internal order is known as a temporary cost collector. It analyzes costs for specific events and small projects that often exist below the level of a cost center or separately from cost centers. For example, you may have a cost center that holds all of your marketing costs, but you would like to analyze the costs for a specific advertising campaign. You could do this with an internal order.

Internal orders can be split into the following categories, depending on their purpose:

� Overhead cost orders are used to monitor costs that are incurred for a specific purpose, such as holding a trade fair, or for documenting costs, such as maintenance and repair tasks.

� Investment orders are used to monitor costs that are incurred for an asset under construction, for example, a building or a warehouse.

� Orders with revenues are used as cost objects so that costs and revenues can be tracked.



Cost Center Accounting answers the question of where costs were incurred, while Activity-Based Costing answers the question of why (for what purpose) costs were incurred.

How to Execute a Cost Center ReportFField Value

Controlling Area 1000

Fiscal Year 2006

Periods 1 - 12

Plan Version 0

Cost Center Group H100

Cost Element Group OAS

How to execute a cost center report.

1. Enter the information from the table above.a) From the SAP Easy Access screen, choose Accounting -> Controlling -> Cost Center

Accounting -> Information System -> Reports for Cost Center Accounting -> Plan/Actual Comparisons -> S_ALR_87013611 : Cost Centers Actual/Plan Variance.

2. Scroll down the cost center nodes on the left to H1210 Administration. Open this to get to cost center 2100.

3. Double-click the occupancy costs actual number.

4. Choose cost centers: Actual Line Items.

5. This displays the CO entries that make up the posting.

6. Double-click any of the items.

7. The source document is displayed.

8. From the FI document, choose Environment -> Document Environment -> AccountingDocument.

9. Here you can see that as well as the FI document, a separate controlling document was also created with its own number. If you use profit center accounting, you get a separate document for that and the same for special purpose ledger.

10.The list of documents is quite odd. Since this is a new G/L system, we are not expecting to see a profit center document but we do here for two reasons: This was posted prior to the new G/L migration, and since this is a teach system we have not switched off the old classic Profit Center Accounting (PCA), so we still see PCA documents.

Unit 5: Financials


Product Cost Controlling

Figure 63: Product Cost Controlling

Product Cost Controlling helps you understand the costs incurred in the production of products and/or services. It calculates the cost of goods manufactured (COGM) or cost of goods sold (COGS). This information is broken down by each step of the production process using cost information about the products gathered automatically in other SAP applications. Period-end closing activities include the calculation of work in progress, variances and scrap, and product cost settlement.

Product Cost Controlling DetailsThe approach of Product Cost Controlling is determined by the type of manufacturing process.

MManufacturing Process Product Cost Controlling Focus

Engineer-to-order / Make-to-order Controlling the individual sales order

Make-to-stock Controlling the individual production or process order

Repetitive manufacturing Period-based controlling may replace the individual order

Product Cost Controlling consists of the following components:Product Cost Planning is used to estimate the costs to produce goods or services.

� If a bill of material and routing are available in manufacturing planning and execution, the system can automatically create a cost estimate based on this data. If this information is not available, you can either enter the costing items manually with the unit costing tool or transfer them automatically from a non-SAP system using batch input.

Cost Object Controlling focuses on simultaneous costing and period-end closing.

� Actual production costs are accumulated alongside raw material consumption when completing the work. This information allows you to compare planned and actual costs for any phase of the production process.



� Period-end closing calculates the value of goods still in production (work in process) and the variances between the cost estimate and the actual costs.

� The costs incurred during production of a product or service are collected on cost objects. Several different types of cost objects are available, depending on your requirements.

� In addition to cost centers, internal orders, and projects, the material ledger allows you to valuate materials using a variety of criteria. Examples of this criteria are cost of material components, multiple levels of prices for inventory management, cross-country inventory movement, and transfer pricing.

Cost objects include the following:

� Sales orders

� Production orders

� Process orders

� Product cost collectors

How to Execute a Standard Cost EstimateHow to display a standard cost estimate.

11. From the SAP Easy Access screen, choose Accounting -> Controlling -> Product Cost Controlling -> Product Cost Planning -> Information System -> Object List -> For Material -> S_P99:41000111 Analyze/Compare Material Cost Estimates .

Field Name Values

Plant 1000

Material Number T-F1XX

Costing Variant PPC1

Select the Calculator button .

The required steps are detailed in the Product Cost Controlling exercise .

2. Briefly explain the cost estimate.The total cost of the product is made up of:

� Material costs:Derived from the bill of material (BOM)

� Activities:Derived from the routing

� Additional overheads/process C=costs:Built into costing

The costing structure shows the material costs. You can include the other costs by selecting the Materials only/All items button. You can pull the screen around to look at more or less of a particular area.The cost itemization is at the bottom right side of the screen. Scroll down to see all the costs.The I column (item category) shows you the type of cost: M (Material), E (Activity), G (Overhead), and P (Process). You can maintain different costs for different purposes, for example, sales andadministration Core Components Technical Specification (CCTS) are not included in cost of goods manufactured, but are included in cost of goods sold.

Unit 5: Financials


Select the Cost Comps button next to the cost of goods manufactured. Thisresults in a different analysis of the costs.

This cost estimate is used for stock valuation and for putting planned costs on the production order.

Profitability and Sales AccountingThe two basic tools in core financials for analyzing profit are profitability analysis and profit centers.

Profitability analysis allows you to analyze profits and contribution margins for market segments. Profitability analysis supports sales and distribution, product management, and company-wide planning and decision making using an external view with a market-oriented perspective.

Market segments are defined by characteristics such as product, product group, customer, customer group, or geographic area or region. For example, you can analyze the profitability of a certain product group sold to a certain customer (or a certain customer group).

You must specify which of the values that affect profitability are to be analyzed for this object. These value fields are the key figures. This allows you to define fields that represent costs that exist below the level of the account. An example of this is the component parts of the standard cost of materials. In comparison to financial accounting, the results presented here can also be subdivided into fixed and variable costs, offering you different contribution margin calculations.

For most people CO-PA means costing based profitability analysis and it is updated by SD documents (the conditions) rather than accounting documents. This is where revenues and cost of sales go normally. This allows you to analyze market segment profitability, for example, Red Widgets in the North vs Red Widgets in the South or Red Widgets vs Blue Widgets. It is meant as a sales and marketing tool. The market segments are defined by their characteristics so it is effectively a cube of information.

Figure 64: Profitability Analysis

Profitability analysis provides a multidimensional reporting tool, which you can use to create reports that analyze data for any market segment and profitability measure.



How to Execute a Profitability Analysis Report

11. From the SAP Easy Access screen, choose Accounting -> Controlling -> ProfitabilityAnalysis -> Information System -> KE30 Execute Report. If an Operating concern dialog box is displayed, choose IDEA and select costing-based.

2. Select the report SAP01–001.

Field Name Values

From Fiscal Year <Current Year>

From Period 1

To Period <Current Period>

Version 0

Graphical Report-output Mark

The required steps are detailed in the Profitability Analysis in Management Accounting task.

3. Briefly explain the report and the navigation (sizing areas).At the top right of the report is the analysis, spread horizontally. That same analysis is presented vertically at the bottom of the screen. (Drag the split screens around to make it easier to read.)

Drag and drop works like the previous drill-down report. Drag the actual value for the pumps division to the product on the left

Now we have division 1 presented by product. Drag a product to a customer.

Now we have the product split by customer. To remove a selection, for example, Division 1, double-click it in the left hand pane

Note:Many customers perform their profitability analysis reporting in BW, not in the system.

Profit Center AccountingProfit Center Accounting allows you to analyze internal profits and losses for profit centers. This enables the evaluation of different areas or units in your company using independent balance sheets and profit and loss statements.

Profit centers can be structured according to regions (subsidiaries or plants), functions (manufacturing or sales), or products (product groups or categories). Using profit center accounting, you can assess the internal aspects of profitability. This internal view of profitability allows you to measure the success of a specific profit center based on the profitability objectives of the respective area of responsibility. The new general ledger allows you to produce a full set of accounts per profit center.

Unit 5: Financials


There was a limitation to classic profit center accounting. It was not designed to give a full balance sheet – just the key items so that you could calculate key ratios, In the new G/L environment, profit centers move into the general ledger. With document splitting activated, it is possible to get a full balance sheet in profit center accounting. Without document splitting it is likely that there will be less of a balance sheet than was previously attainable.

How to Execute a Profit Center Report

11. From the SAP East Access screen, choose Financial Accounting -> General Ledger -> Information System -> General ledger reports (new) -> Financial Statement/Cashflow -> General -> Actual/Actual Comparisons -> Financial Statement Actual/Actual Comparison. Enter the following parameters.

Field Value

Currency Type 10

Company Code 1000

Profit Center 1500

FIS Version INT

Ledger 0L

Reporting Year Current Year

Reporting Periods 1-12

Comparison Year Last Year

Comparison Periods 1-12

Select graphical report output.

Execute the report .Explain the figures: assets = liabilities. This is good, as this is what they are supposed to do. Calculated profit in the liabilities section is the prior year'sprofit plus the current year's calculated profit on the financial statement usage.This is also correct and how it should be.However, the current year's calculated profit should be the same as the total on the profit and loss statement. This is not what we see here, as some accounts in the supplement section at the bottom are supposed to balance to zero,and they donot.If you have any accountants that ask, some of these are supposed to balance to zero at the company code level but may not balance to zero at an individual profit center level. It is the inter-profit center balance with the other profit centers, so at a profit center level they should be displayed somewhere in the balance sheet.



Unit 5Exercise 3

Execute a Cost Center Report

Business ExampleYou are responsible for comparing actual costs incurred to those originally planned. To facilitate your analysis, you must run a cost center report.

Execute a Cost Center ReportExecute a cost center report and drill down to source documents.

11. Execute a cost center report showing actual and plan costs, plus a variance for cost center group H1000 in 2006. Use cost element group OAS.

2. Navigate to the results for Cost Center Group H1200 and then Cost center 2100.

3. Investigate the occupancy costs by looking at a source document.

4. What type of document are you looking at, and who posted it?


Unit 5Solution 3

Execute a Cost Center Report

Business ExampleYou are responsible for comparing actual costs incurred to those originally planned. To facilitate your analysis, you must run a cost center report.

Execute a Cost Center ReportExecute a cost center report and drill down to source documents.

11. Execute a cost center report showing actual and plan costs, plus a variance for cost center group H1000 in 2006. Use cost element group OAS.

a) From the SAP Easy Access screen, choose Accounting -> Controlling -> Cost Center Accounting -> Information System -> Reports for Cost Center Accounting -> Plan/Actual Comparisons -> Cost Centers: Plan/Actual/Variance (transaction code S_ALR_87013611) .

b) Enter the information from the table.

Field Value

Controlling Area 1000

Fiscal Year 2006

Periods 1 - 12

Plan Version 0

Cost Center Group H1000

Cost Element Group OAS

c) Execute the report .

2. Navigate to the results for Cost Center Group H1200 and then Cost center 2100.

a) Select the H1200 Administrations and Financialsfolder in the Variation: Cost Center pane on the left-hand side of the screen. The values in the report area on the right will change.

Open folder H1210, which is inside the H1200 folder, by choosing .

3. Investigate the occupancy costs by looking at a source document.a) Double-click the act.cost column value forrow 470000 occupancy costs.

b) Double-click cost centers: Actual line items in the dialog box that opens. Here you see the CO documents that make up the total on the face of the report.

c) Double-click one of the documents to show the original financial accounting entry.

4. What type of document are you looking at, and who posted it?


aa) Choose the document header icon . The document type is KR, a vendor invoice. The document was posted by user ID STEINER.


Unit 5Exercise 4

Execute a Profitability Analysis Report

Business ExampleYou are responsible for the sales department and must run profitability reports.

Profitability AnalysisFField Name Values

From Fiscal Year Current Year

From Period 1


Version 0

1. Execute the profitability analysis report SAP01-001.

2. What sales characteristics can you select to analyze a specific sales area?

3. How are the different values of the contribution margin calculated?

4. What is the main objective of contribution margins I and II?

5. Analyze contribution margins I and II of one of the products listed.

6. Exit the report.


Unit 5Solution 4

Execute a Profitability Analysis Report

Business ExampleYou are responsible for the sales department and must run profitability reports.

Profitability AnalysisFField Name Values

From Fiscal Year Current Year

From Period 1


Version 0

1. Execute the profitability analysis report SAP01-001.a) From the SAP Easy Access screen, choose Accounting -> Controlling -> Profitability

Analysis -> Information System -> Execute Report or use transaction KE30 .

b) If a dialog box for operating concern is displayed, choose IDEA, and select costing-based .

c) Select report SAP01–001 .

d) Choose Execute to start the report.

e) Enter the data shown in the table.

f) Select the Output type : Graphical report—output .

g) Choose Execute to start the report.

2. What sales characteristics can you select to analyze a specific sales area?a) You can analyze by Division , Product , Customer, or Material Group. Select them in

turn by double-clicking on them in the navigation pane.

3. How are the different values of the contribution margin calculated?

4. What is the main objective of contribution margins I and II?a) Check the lower part of the screen to see the contribution margin scheme.

Contribution margin I is the difference of the net revenue after deductions and the variable costs, which are mainly the raw material costs and the variable manufacturing and machine costs. Contribution margin I could be directly changed by make-or-buy decisions, in a relatively short time period.

b) Contribution margin II depends on the fixed costs, mainly from the production area (fixed machine costs), for example, depreciation. This part of the costs of goods sold


cannot be changed in a short time period because in this case, long-term investments have to be changed.

55. Analyze contribution margins I and II of one of the products listed.a) Contribution margin II:_______________________

6. Exit the report.a) In the navigation area, double-click the characteristic value Product .

b) Position the cursor on your material number.

c) Double-click again and look for the required values on the detailed sheet at the bottom of the screen.

d) Choose Exit to exit the screen and return to the SAP Easy Access menu.






Unit 5: Financials


Unit 5


1. Only one accounting standard can be realized with SAP ERP Financials.Determine whether this statement is true or false.

X True

X False

2. What is the primary source of information for management accounting?Choose the correct answers.

X AA SAP Business Information Warehouse

X B SAP ERP Human Capital Management

X C Financial accounting

X D Procurement

3. What is the primary source for management accounting?Choose the correct answers.

X A SAP Business Information Warehouse



X D Procurement


Unit 5


1. Only one accounting standard can be realized with SAP ERP Financials.Determine whether this statement is true or false.

X True

X False

You can realize parallel accounting standards with SAP ERP Financials.

2. What is the primary source of information for management accounting?Choose the correct answers.

X AA SAP Business Information Warehouse



X D Procurement

Data created in other SAP applications can have a direct influence on managementaccounting, but financial accounting is a primary data source. Most expense postings that relate to the general ledger result in a cost posting in management accounting.

3. What is the primary source for management accounting?Choose the correct answers.

X A SAP Business Information Warehouse



X D Procurement

Data created in other SAP applications can have a direct influence on managementaccounting, but financial accounting is a primary data source. Most expense postings that relate to the general ledger result in a cost posting in management accounting.


UNIT 6 Human Capital Management

Lesson 1

Viewing Components of Human Capital Management 232Exercise 1: Hire an Employee 250

UNIT OBJECTIVES

� Identify the components of SAP ERP Human Capital Management

� Outline the organizational structures of SAP ERP Human Capital Management

� Maintain employee master data


Unit 6Lesson 1

198Viewing Components of Human Capital Management

LESSON OVERVIEWThis lesson provides an overview of the functions of SAP ERP Human Capital Management.

Business ExampleAs a human resources administrator, you are responsible for human resources administrative functions and must be able to manage the organizational structure and employee master data. For this reason, you require the following knowledge:

� A good understanding of the organizational structure

� A good understanding of employee master data

� A basic understanding of e-recruitment processes

� A basic understanding of the performance management process

� A basic understanding of self-services





Components of SAP ERP Human Capital ManagementTo compete effectively, you need to align all corporate resources, including employees, with business objectives. With SAP ERP Human Capital Management (SAP ERP HCM), you can maximize the value of your employees and align employee skills, activities, and incentives with business objectives and strategies by using tools to manage, measure, and reward individual and team contributions.

In this lesson, you will learn about the basics of SAP ERP Human Capital Management by examining processes in human resources.

There are defined interfaces throughout the system to connect an SAP system to other systems for specific data exchanges, for example, to integrate time recording terminals into the HCM solution.The next figure illustrates integration.

� Organizational management is controlled through the use of relationships between the various objects. The most common objects in organizational management are persons, organizational units, positions, cost centers and jobs.


� SAP E-Recruiting facilitates finding qualified applicants using efficient, streamlined processes. At the end of the recruitment process, the successful candidate is hired into a position within the organizational plan of the company.

� Personnel Administration includes the management of employees within an organization. This includes maintaining specific pieces of information on each employee. Information is grouped according to the type of information (for example, bank details, address, personal information, benefits, pay, time, etc.) and is stored on infotypes.

� Personnel Development includes the development of employee skills and providing additional education and training. Personnel development may also include succession planning and career development.

� Training and Event Management allows an organization to offer a range of courses (for example, first aid, safety, leadership skills, etc). Employees may attend these courses as part of a succession plan, their own career development choices or perhaps as a result of a performance review where a skill deficiency has been identified. Once an employee successfully completes a course, his/her profile is automatically updated in personnel development.

� Time management allows the tracking of individual time elements for employees. Some employees may be required to record all of their time (positive time recording) and other employees may only be required to enter exceptions to their normal working time (negative time recording). SAP offers a wide range of functionality to allow customers to manage, track and report on employee time elements.

� Performance management includes the appraisal cycle for employees. Once an appraisal has been completed and specific development concerns identified, the employee may be enrolled in the specific course which would provide the missing requirement. In addition to individual employee performance ratings, performance management may also include objectives related to the overall performance of the organization. The overall performance rating of each employee may be passed on to compensation management and be included in, for example, a merit or bonus payout calculation.

� Payroll includes the processing of pay in a timely and efficient manner utilizing information found on various employee infotypes.

� Personnel Cost Planning allows planners within an organization to determine which cost elements (for example: salary, overtime, employer cost of benefits, etc.) should be included in cost planning activities for the next planning period. Once a cost plan is approved, the detail can be integrated into finance and used, for example, to set up new budgets.

Lesson: Viewing Components of Human Capital Management


Figure 65: SAP ERP Human Capital Management

Human Capital Management Processes

SAP ERP Human Capital Management includes the following processes and functions:

OOrganizational Management Includes management of the organizational and personnel structures

Talent Management Includes the management of employees for their entire time with the company

SAP E-Recruiting Facilitates the management of vacant positions and hiring processes to find the best-qualified talent to fill those positions

Personnel Development Includes the development of employee skills

Training and Event Management

Offers training events to enable employees to develop their skills and bridge any gaps between position requirements and their abilities

Manager Self-Service and Employee Self-Service

Facilitates empowering employees to maintain their own data

Personnel Cost Planning Facilitates planning activities for budget generation

Time Management Iincludes the tracking of employee time (attendances and absences)

Payroll and benefits Includes the payment of employees for work done and participation in benefit programs

Human capital management (HCM) is a company-wide strategy and is not only confined to HCM processes and functions. Your company profits from a large value-added potential and the company's bottom line can be improved.

Organizational StructureThe structures of an enterprise are subdivided into organizational structures, based on an organizational plan, and administrative structures, based on the enterprise and personnel structures.

An organizational plan provides a model of the structural and personnel environment of your enterprise. Hierarchies and reporting structures are clearly laid out. The organizational plan is the foundation of Organizational Management and uses elements called objects. The most important objects for the organizational plan are organizational units, jobs, and positions.

Unit 6: Human Capital Management


The enterprise and personnel structures subdivide organizations and employees according to factors relevant to time management and payroll.

The answers to the questions in the following slide will aid in the creation of the organizational structure elements required to set up an organization within HCM.

Figure 66: Employees

The SAP ERP HCM system enables you to set up organizational hierarchies and employee relationships, and administer employee data in the system. Employees are linked to the organizational structure by the position they hold and the placement of that position within the structure. Reporting facilitates the evaluation of employee data from all enterprise-specific organizational aspects.

The Organizational Plan

Discuss how the organizational plan is typically a representation of an organization's department structure. An organizational plan includes organizational units and positions. The employees of an organization are assigned to positions within the organizational plan. Ask the class for examples relative to their organizations.

Organizational structures in HCM and organizational units as discussed in the “System Wide Concepts ” unit have one big difference: Most of the HCM organizational structures are not maintained in customizing, they are real master data. Most organizational units in logistics or in financials are customizing objects.

You may want to consider drawing a quick org chart on the board. This usually helps students with the concept of the structure. Draw a chief org unit (ie: Office of CEO) and a couple of additional org units linked with two way arrows which represent the relationship between the objects (ie: HR and Finance). Below the HR org unit, draw two additional org units linked by two way arrows and call them Payroll and Recruiting. Below the payroll org unit draw another box and indicate this is a position linked to the org unit payroll. Finally draw one last box and indicate this is the person who holds that specific position in the payroll org unit. A structure such as this one is what customers must clearly depict in the SAP system. The organizational structure is of importance, not only for HCM, but other functionalities such as workflow.

You use Organizational Management to quickly and effectively map your organizational and reporting structures with the relevant organizational objects. You create an organizational



plan, which is a comprehensive and dynamic model of the structural and personnel environment in your enterprise.

Figure 67: Organizational, Enterprise, and Personnel Structure

Employees are assigned to the organizational, enterprise, and personnel structures on infotype 0001, Organizational Assignment. When you enter data on this infotype, the employee is assigned to a company code, a personnel area, a position, and a payroll area. This results in the employee's assignment to an organizational unit, a job, and a cost center.

Information on the organizational assignment of employees is very important for authorization checks and for time management and payroll accounting. This assignment is often used to provide administrators access to employee information for the completion of time and payroll activities.

Key Objects Used in Organizational Management

The following are some of the key objects used in Organizational Management:

OOrganizationalunits

Organizational units describe the various business units in your organization. Organizational units could be the departments in your company. Several organizational units, along with their relationships, make up the organizational structure. Organizational units can be divided according to functional or regional criteria, for example.

Jobs Jobs are general descriptions of tasks and requirements. Jobs are used to define positions. An example of a job is "Manager."

Positions Positions represent the distribution of tasks among individual employees. Positions are occupied by persons. A position inherits the tasks and requirements of the job from which it was defined. A position can also be assigned additional tasks that have to be carried out only by this one position. An example of a position based on the "Manager" job is "Human Resources Manager."

Persons Persons occupy positions within the organizational structure and represent the employees in your organization. Employee data is maintained in Personnel Management. The assignment of employees to positions is usually part of the hiring or transfer process, which is handled in Personnel Administration.



Enterprise Structure

Figure 68: Enterprise Structure: Example

The enterprise structure for personnel administration is determined by the following elements:

CClient: A client can be valid for a company code at the smallest level, or for the entire corporate group. The company code is defined in accounting.

Companycode:

The company code is a legal, independent accounting unit representing the central organizational element of finance. The company code represents the national tax law view of the company, the local currency, and tax reporting requirements.

Personnelarea:

The personnel area is used exclusively in personnel administration and is unique within a client. Each personnel area must be assigned to a company code.

Personnelsubarea:

Personnel subareas allow for the further grouping of employees. This is typically used in payroll and time management.

Employee Master DataEmployee data is stored in SAP ERP HCM as infotype records. Infotypes have a text description and a four digit unique identifier (for example, the Organizational Assignment infotype has the number 0001). Employee data can be displayed, copied, corrected, and deleted.



Figure 69: Infotypes

You can maintain infotypes in various ways, including:

� Single-screen maintenance (one infotype for one person at a time)

� Personnel actions (a sequence of infotypes for one person)

� Fast entry (one infotype for multiple persons)

Personnel Actions

An action is one way to help ensure data completeness, however an infotype presented during an action may be skipped. This allows for a scenario where the person entering the data is missing a piece of information. This person could skip the infotype and continue with the execution of the action. The missing information can be added at a later time.

Personnel Actions

Personnel actions facilitate the maintenance of several infotypes for an employee in a specific order. For example, when you hire an employee, you have to enter informationsuch as master data (name, address, benefits, and so on), data that is relevant for time management (working hours, whether or not the employee must clock in/out, shifts, and so on), and payroll. When a hiring action is executed, the required infotypes are presented to the user one after the other in a specific sequence.

The following is a list of some of the infotypes created when you hire an employee:

� Organizational Assignment Infotype 0001

� Personal Data Infotype 0002

� Address Infotype 0006

� Planned Working Time Infotype 0007

� Basic Pay Infotype 0008

� Bank Details Infotype 0009

In addition to the information contained on these infotypes, country-specific infotypes are also included in a typical hiring action. Examples of these infotypes are taxes and benefits.



This is an example of a personnel action configured for the hiring of an employee. Infotypes are presented to the end user in a specific order and, upon saving, are stored as part of the employees master data record.

Examples of personnel actions are: hire, termination, retirement, maternity leave, personnel transfer, promotion, etc.

Figure 70: Personnel Actions

The completion of the hiring action results in the creation of a personnel file, which consists of the various infotype records. Actions simplify data entry because you do not have to access each infotype individually. If you do not have all of the employee's required information when carrying out an action, you can skip the infotype and add the missing information later.

Global Employees

Management of Global Employees includes maintaining data for employees who may be temporarily assigned to positions in other countries. A global employee can complete one or multiple global assignments for his or her global company. The Global Employment Model in SAP ERP 6.0 HCM describes the relationship between employee and employer. The most important concepts in the Management of Global Employees are as follows:

� Each employee can have multiple personnel assignments, each of which is in a different country.

� Each personnel assignment is linked to the person.

A personnel assignment describes details such as the tasks the person has to perform, the country of the global assignment and the duration of the assignment. This data is stored on various infotypes.

� The person ID enables you to track the global employee in the whole enterprise for the duration of his or her assignment (infotype 0709)

� In SAP ERP 6.0 HCM, a personnel number is assigned to each personnel assignment.

Global Employees

SAP ERP HCM allows you to manage employees with multiple assignments. You can track and manage all of an employee's employment relationships in various countries in the



standard system. This is especially important for global enterprises. In SAP ERP HCM, global employees are managed by linking each of an employee's personnel assignments to the person.

How to Display Employee Information

11. Display an employee record.

2. From the SAP Easy Access screen, choose Human Resources -> Personnel Management -> Administration -> HR Master Data -> PA20 Display .

3. Enter 11199100 in the Personnel no. field and pressEnter.

4. The Display Master data screen for Lars Becker is presented. Infotypes are listed under various tabs (such as Core Employee Info.) and may be displayed by selecting the box to the left of the infotype (which will highlight the line) and choosing the display icon.In case you are asked, the tabs, as well as the specific infotypes displayed on each tab, are completely configurable. An infotype may be listed on multiple tabs. The view presented to theuser will be based on the user group to which the user is assigned. Authorization profiles assigned to end users control the ability of the user to display or edit data for specifically defined groups of employees.

SAP E-RecruitingSAP E-Recruiting supports the entire recruitment cycle, including advertising, managing and selecting applicants and applicant correspondence. When an applicant is hired, integration allows applicant data in the recruitment system to be transferred to Personnel Administration as employee data.

SAP E-Recruiting includes:

� Requisition management

� Management of job postings

� Entry of applications

� Online services for internal and external candidates

� Talent Relationship Management

In addition to the requisition, you must also define the screening process, how incoming applications will be handled, correspondence to be generated and the activities (for example ; initial 'thank you for your application' e-mail, phone interview, first in-person interview, offer confirmation, etc.).

You must also consider how you will manage your talent pool. An individual who is not a fit for the initial position applied for might be the ideal candidate for a position at some point in the future. Establishing a relationship with candidates in your talent pool is an important step in the overall recruitment process.

SAP E-Recruiting is an all-round recruiting solution. It is fully Internet-enabled.

The following processes are included in SAP E-Recruiting:



RRequisitionmanagement

Requisitions are an agreement between managers and recruiters regarding how vacant positions should be handled during the recruitment process. This document specifies how the selection process will be handled.

Management of job postings

Job postings indicate the qualifications required of candidates. Management of this process includes defining how qualified candidates will be attracted to apply at the company.

Entry of applications

This process determines how incoming applications will be handled (for example, through channels such as e-mail, intranet, Internet, job fairs, and so on).

Online services Candidates have the ability to register and log on using their own personal start pages. Candidates may search for vacancies, complete an online application, and check on the status of their application.

Talent Relationship Management

This concept facilitates the integration of internal and external candidates in one talent pool. Search and match functionalities, along with classification of candidates, facilitates the search for the ideal candidate.

The hiring action executed for the successful candidate can initiate the transfer of information maintained on SAP E-Recruiting infotypes to personnel administration infotypes.

Performance Management

Performance Management is the basis of pay for performance and may also be part of the succession planning process. The goal of performance management is to align the goals and objectives of employees to the overall corporate strategy.

The overall performance rating of the employee can be passed to Enterprise Compensation Management and can be used to determine, for example, the percentage increase an employee receives.

Additional information can be found using the following links.http://www.sap.com/erp-hcm and service.sap.com/erp-hcm

The appraisal functionality in Personnel Development supports flexible appraisal processes that you can use to carry out standardized appraisals with the highest level of objectivity. Appraisals are part of employee master data information.

Figure 71: Performance Management

Performance Management allows you to:



� Align your workforce with enterprise strategy

� Communicate strategy

� Execute flexible and future-oriented performance planning

� Review performance and identify top performers

� Provide the transparency and flexibility required to reflect today's rapidly changing requirements

� Create a basis for performance-based pay and succession management

Performance Management offers a tool that enables you to track employee performance using individual objectives. Performance Management also enables you to pass corporate goals and strategies down to the employee level by helping you to establish detailed objectives and initiatives, hold performance feedback reviews (appraisals), and make compensation adjustments (for example merit and bonus awards).

Performance Management offers flexibility and integration.

Flexibility of Performance Management includes the following:

� Templates provide the framework to guide participants through the performance cycle

� Supports best-practice performance management processes

� Single-screen configuration

� Status and workflow management

� Open architecture for customer enhancements

� Enhanced analytics

Performance Management integration includes the following:

� Balanced Scorecard is integrated with individual objectives.

� Appraisal results can be used for compensation adjustment adjustment proposals.

� Job and position requirements are linked to employee objectives.

� Development plan steps are displayed and monitored.

� Individual training courses are displayed and monitored.

Performance Management Solution Capabilities

Figure 72: Solution Capabilities

Benefits of Performance Management include the following:



� Templates provide structure for objective setting and appraisal documents.

� By integrating with strategic enterprise management (SEM), the departmental objectives taken from the company objectives can be displayed in the Balanced Scorecard, and the relevant strategic objectives can be transferred directly to employee objectives.

� Better communication at all hierarchy levels.

� Integration with personnel development enables requirements profiles to be taken from position requirements.

� These are the qualifications required to perform the tasks of a position, and they are used in the employee's performance appraisal.Once the appraisal process is complete, you can use integrated, automated follow-on processes, such as updating the employee's qualification profile in personnel development or adjusting the employee's remuneration in payroll.

� Iintegration with SAP Learning Solution enables appraisal processes for business events (training classes) and appraisals for attendees, as well.

Personnel DevelopmentIn the Personnel Development component, you can plan development and further education and training for your employees by integrating with Training and Event Management.

Figure 73: Personnel Development

The comparison of the position requirements profile (the skills required to perform the tasks of the position) and an employee qualification profile (the skills the employee holding the position possesses) results in development requirements for that employee. Development plans may be used to assign qualifying actions, such as participation in a training program, to employees.

Training and Event ManagementTraining and Event Management is a highly integrated component that supports you in the planning, execution, and management of training courses and business events.



Figure 74: Processes in Training and Event Management

Training and Event Management includes the following main processes, each supplemented by reporting options:

11. Business event preparation: Includes the creation and maintenance of the master data used to create the business event catalog, including time schedules, event locations, resources, and so on

2. Business event catalog: Includes the creation of business events

3. Day-to-day activities: Includes booking participants, pre-booking attendance, replacing bookings, re-booking, cancelling attendance, and preparing correspondence.

4. Recurring activities: Includes activities required periodically, such as firmly booking events (confirming the event will run), locking and unlocking events (controlling enrollment), cancelling, and follow-up activities (reporting, performing cost re-allocations for internal attendees).

Due to a high level of integration with other SAP components,Training and Event Management is an ideal tool for constantly extending and updating employee knowledge. For example, the link with Personnel Development enables you to identify qualification deficits and react with targeted training programs in Training and Event Management. The link to the SAP Learning Solution enables you to combine traditional classroom training in Training and Event Management with Web-based learning methods.

Time Management

There are defined interfaces to connect an SAP system to other systems for very specific data exchanges, for example, to integrate time recording terminals into the SAP HCM solution. These are mentioned on the figure. SAP offers certification of vendors of theses systems and a list of certified partners can be found on the SAP homepage. The link is http://www.sap.com/ecosystem/customers/directories/searchsolution.epx (you should verify this link from time to time, as it might change). You can show a list of partners in the Certification Category “Human Resources.” Once you access the link, leave the Solution Name and Company Name blank and in the Certification Category section, select Human Resources from the drop down list, scroll to the bottom of the selection screen and select Search.

Briefly explain the different areas covered in Time Management as shown in the figure. An example of a time recording terminal is Kronos. Time Manager's Workplace is one method for recording time data using a Time Administrator.



Time Management data has impact in other application components, such as Controlling and Logistics (e.g. capacity planning). In order to use Time Data, Master Data has to exist. This data is passed to Time Evaluation and then to Payroll. After Payroll has been run, results are transferred into finance.

The Time Management application supports you in all processes that concern planning, recording, and valuating employee attendance and absence times. For example, if Training and Event Management is integrated with Time Management, the booking of an employee into a course causes a time data record to be created as an attendance. If an employee who is being booked on a course is absent, due to vacation, for example, the system notifies the person attempting to register the employee that the employee is not available.

Figure 75: Time Management: Overview

Evaluating work performed by employees and determining employee availability are essential elements for a human resources system. This information is also relevant for other areas, such as controlling (how the employee spent their time) and logistics (determines employee availability for planning activities), and is a factor that influences enterprise-wide decisions.

Time management allows you to flexibly display and record working times.Information on working times is used to calculate gross wages in payroll. There are various options available for recording time data, such as hours worked, vacation, off-site work, or substitutions.

Time recording options include:

� Online data entry by the time administrator (for example, using the Time Manager's Workplace)

� Using front-end time recording systems (for example, Kronos)

� Using the Cross-Application Time Sheet (CATS)

� Using Employee Self-Service (ESS) applications

Planned Working TimeTime data is stored in special time infotypes, just like HR master data information. The planned working time infotype 0007 is the central time management infotype. It contains the times when the employee is scheduled to work according to the assigned work schedule.



Figure 76: Planned Working Time Infotype

By defining the planned working time for your employees, you determine how long they must work on a daily basis.

PayrollDesigned for global business, SAP ERP HCM supports payroll functions and regulatory requirements.

In general terms, payroll is concerned with calculating each employee's remuneration for the work performed. It encompasses a multitude of processes, such as the creation of payroll results and salary statements, bank transfers, and payment to employees.

Figure 77: Payroll (1)

Payroll includes a number of additional subsequent activities.

Examples of these activities include the following:

� Transfer of payroll results to accounting (for example, expenses and liabilities)

� Data medium exchange (transfer of net pay amounts to financial institutions)

� Other evaluations, such as the payroll account and payroll journal

� The preparation of pay statements

The calculation of payments to employees includes the following:

� Calculation of pay elements (gross amount)

� Statutory and voluntary deductions (country-specific, net amount)



These payments and deductions are included in the payment calculation,using different wage types.The employee is usually paid by bank transfer or check, and the payment amount is printed on a form for the employee.

Employee Self-Service

Explain that the concept of self-service is to reduce the paperwork load of the HR department so that they may focus on more strategic functions. Review the benefits of ESS. Enabling employees to maintain their own data and to have access to their own information increases employee satisfaction and accuracy of data.

Using Employee Self-Service (ESS), employees maintain their own personal information and control many administrative transactions and other processes once handled by the HR staff. ESS streamlines approval processes for activities such as vacation requests and allows employes to check, for example, their vacation balance or benefits, thus reducing administrative costs.

With SAP ESS, employees can take responsibility for updating their own data. SAP ESS empowers employees to view, create, and maintain their data any time, anywhere, via Web-based technology.SAP ESS has an intuitive, HTML-based user interface.

SAP ESS is an effective means to provide real-time access and data maintenance capabilities to the source or owner of the data, and to offload many of the data entry and related customer service activities that may typically be performed in a company’s human resources, payroll, benefits, and travel departments.

Employees use SAP Employee Self-Service to complete the following activities:

EEmployee Self-Service Activity Employee Self-Service Activity

Submit travel expenses Enter work times

View the calendar Enroll in benefits

Search the Who's Who Update banking information

Update personal information (such as address, marital status, and so on)

Enroll in a training course

SAP ESS utilizes the same database as ERP. No dual maintenance or reconciliation is required. It takes full advantage of SAP system global capabilities, including country localization



Figure 78: SAP Employee Self-Service: Highlights

Benefits of SAP Employee Self-Service include:

� Well-informed employee decisions

� Reduced administrative costs and shorter cycle times

� Accurate employee records

� Time and resources saved for strategic HR initiatives

Manager Self-ServiceManager Self-Service consists of a set of easy-to-use tools, transactions, and reporting capabilities. MSS gives managers a single point of access to information and enables them to manage information efficiently, effectively, and proactively in one Web interface. It empowers managers to execute human capital and finance management strategies for budgeting, recruitment, compensation, and cost management, thus creatingreturn on investment.

MSS leverages human resources and financial back-end systems by making pertinent information available to managers throughout your enterprise. Self-service tools automate paper-based processes, such as requests for employee master data changes (for example, transfers and salary increases) or performance appraisals.

The MSS solution integrates different systems, and management information is consistent across the organization.

Figure 79: Single Point of Access



Managers can use Manager Self-Service to:

� Obtain information.

� Recruit employees.

� Perform compensation planning.

� Control costs.

� Manage budget and headcount planning.

� Submit personnel data changes.



Unit 6Exercise 1

Hire an Employee

Business Example

Turn the table locks on by running ZSENQON. This is required to enable participants to save infotype 2006 Absence Quotas.

You are responsible for the maintenance of new-hire information. For this reason, you must execute a hiring action for a newly hired employee.

Hire an EmployeeExecute a hiring action to create the required infotypes for the new employee. Use the field values provided in the table.

FField Value

Personnel Area CABB

Employee Group 1

Employee Subgroup X0

Personal Information Infotype Data of Your choice

Organizational Assignment Infotype : Personnel Subarea

001

Dialog Box: Assign to a Position? Select No Assignment

Address Infotype Data of your choice

Planned Working Time Infotype Press enter to accept defaults and save

Basic Pay Infotype: PS Group E01 (press enter to accept defaults

Bank Details Infotype: Payment Method S

Absence Quota Infotype Entry not required. Save this infotype.

Travel Privileges Infotype Entry not required. Save this infotype.

Communication Infotype Skip this infotype

1. Execute a hiring action to create the required infotypes for the new employee. Use the SAP Menu as the starting point for navigation by selecting the SAP Menu icon .

2. Infotype 0000 Actions is presented.

3. Infotype 0002 Personal Data is presented.


44. Infotype 0001 Organizational Assignment is presented.

5. When saving the Organizational Assignment infotype 0001, a dialog box is presented.

6. The dialog box Subtypes for Infotype Addresses is presented.

7. Address infotype 0006 is presented.

8. Planned Working Time infotype 0007 is presented.

9. Basic Pay infotype 0008 is presented.

10.Bank Details infotype 0009 is presented.

11. Absence Quotas infotype 2006 is presented.

12. Travel Privileges infotype 0017 is presented.

13. Communication infotype 0105 is presented.

14.The Personnel Actions screen is presented. This indicates that the execution of the hiring action has been completed.The newly hired employee now exists in the system with a personnel number and associated master data records.


Unit 6Solution 1

Hire an Employee

Business Example

Turn the table locks on by running ZSENQON. This is required to enable participants to save infotype 2006 Absence Quotas.

You are responsible for the maintenance of new-hire information. For this reason, you must execute a hiring action for a newly hired employee.

Hire an EmployeeExecute a hiring action to create the required infotypes for the new employee. Use the field values provided in the table.

FField Value

Personnel Area CABB

Employee Group 1

Employee Subgroup X0

Personal Information Infotype Data of Your choice

Organizational Assignment Infotype : Personnel Subarea

001

Dialog Box: Assign to a Position? Select No Assignment

Address Infotype Data of your choice

Planned Working Time Infotype Press enter to accept defaults and save

Basic Pay Infotype: PS Group E01 (press enter to accept defaults

Bank Details Infotype: Payment Method S

Absence Quota Infotype Entry not required. Save this infotype.

Travel Privileges Infotype Entry not required. Save this infotype.

Communication Infotype Skip this infotype

1. Execute a hiring action to create the required infotypes for the new employee. Use the SAP Menu as the starting point for navigation by selecting the SAP Menu icon .a) From the SAP Easy Access menu, choose Human Resources -> Personnel Management

-> Administration -> HR Master Data ->Personnel Actions.


bb) Enter Personnel Number 500997## ( ## = your group number).

c) Enter a From Date of the first of the current month.

d) Select the Action Type Hiring HR050 by highlighting the line.

e) Choose Execute .

2. Infotype 0000 Actions is presented.a) In the Personnel Area field, enter CABB.

b) In the Employee Group field, enter 1.

c) In the employee subgroup field, enter X0.

d) Save your entry .

3. Infotype 0002 Personal Data is presented.a) Enter data of your choice for the firs name, last name, and birth date of the new

employee. The remaining fields are optional and may be left blank.

b) Save your entry.

4. Infotype 0001 Organizational Assignment is presented.a) Under the Enterprise Structure section, in the Subarea field, enter 0004.

b) Save your entry.

5. When saving the Organizational Assignment infotype 0001, a dialog box is presented.a) Select the No Assignment radio button and choose Continue.

b) Save your entry.

6. The dialog box Subtypes for Infotype Addresses is presented.a) Select 1 Permanent Residence.

b) Select Copy.

7. Address infotype 0006 is presented.a) Complete this infotype with data of your choice.

b) Save your entries.

8. Planned Working Time infotype 0007 is presented.a) Press Enter to update the infotype with default information set up in configuration.


9. Basic Pay infotype 0008 is presented.a) In the PS Group field (pay scale group), enter E01 and press Enter. Default values are

presented.


10.Bank Details infotype 0009 is presented.a) In the Payment Method field, enter S and press Enter to confirm your entry.


11. Absence Quotas infotype 2006 is presented.


aa) Changes are not required to this infotype.


12. Travel Privileges infotype 0017 is presented.a) Changes to this infotype are not required.

b) Save your changes.

13. Communication infotype 0105 is presented.a) This infotype may be skipped by selecting the Next Record icon .

14.The Personnel Actions screen is presented. This indicates that the execution of the hiring action has been completed.The newly hired employee now exists in the system with a personnel number and associated master data records.


UNIT 7 Analytics and Strategic Planning

Lesson 1

Executing Analytics and Strategic Planning Reports 258Exercise 1: Create a Business Intelligence Report 266

UNIT OBJECTIVES

� Execute a sales report

� Execute an analytical business intelligence report


Unit 7Lesson 1

218Executing Analytics and Strategic Planning Reports

LESSON OVERVIEWThis lesson shows you how to generate various reports, including SAP Business Intelligence, SAP BusinessObjects Dashboards, and standard reports.

This lesson covers the different possibilities of reporting and analytics. The lesson starts with simple list reporting in SAP ECC, going to the more complex and advanced analytical reporting of SAP NetWeaver BW and SAP BusinessObjects Intelligence Platform.

The reasons for a data warehouse and reporting should be explained in this lesson.

With Col.92 this lesson was reworked due to the acquisitions of Business Objects, OutlookSoft and Pilot Software. SEM is no longer included in this course.

Also just shortly before this course was about to be finished, a branding change was announced, effecting most of the products:

� “Starting Jan 1, 2009, the use of the term Business Intelligence will be associated only with the solutions from the SAP BusinessObjects Portfolio.”

� “Business Intelligence will no longer be associated with SAP NetWeaver components or the SAP Business Suite.”

SAP NetWeaver BI goes back to SAP NetWeaver BW, also other SAP NetWeaver which previously had “BI” as part of the name, change back to “BW”.

Regarding the former Business Objects: The company was called Business Objects (with space), when referring to branded products or services, it was BusinessObjects (without space), at least after the takeover. After the takeover the name was first “BusinessObjects,an SAP company”, now it is changed to “SAP BusinessObjects” (and it seems that it is always the same way written, referring to the brand as well to the products).

To demonstrate BW functionality, you can use Client 900 in the instructor training system.In the instructor system portal Xselsius demos are available.

Business ExampleYou are responsible for reporting and must be able to create, modify, and manage various reporting options. For this reason, you require the following knowledge:

� A good understanding of the difference between reporting and analytics

� A basic understanding of online analytical processing (OLAP) and online transactional processing (OLTP)

� A basic understanding of SAP BusinessObjects Business Intelligence





Reporting Versus AnalyticsOnline transactional processing (OLTP) refers to the type of processing typically performed in an SAP ERP system.

The reporting in this type of system often refers to information requirements for day-to-day work. List displays are reports that access data that is generated directly from online transactions. The user can access the source documents directly from these lists. List displays enable the user to request a listing of documents or master data information.

Figure 80: Reporting and Analytics

Simple difference between “Information System” and “BW”: The information system is using tables in the ERP system to aggregate data, BW has it's own database.

It is also possible to have information structures aggregate data for simple operational analytics. This varies greatly from reporting used in an online analytical processing (OLAP) environment. Analytical systems use a data warehouse where key figures are derived from various sources and are aggregated.

Business IntelligenceBusiness intelligence is the use of an organization's disparate data to provide meaningful information and analysis to employees, customers, suppliers, and partners for more effective decision making. The core capabilities of business intelligence enable the user to group information together, measure it, give users access to it, and share information changes.

Lesson: Executing Analytics and Strategic Planning Reports


Figure 81: Business Intelligence

Companies create data during business activities. Employees use this data as a basis for making decisions. Business intelligence (BI) collates and prepares the enterprise data for analysis. By analyzing the data using BI tools, you gain insights that support the decision-making process. BI makes it possible to quickly create reports about business processes and results and to analyze and interpret data about customers, suppliers, and internal activities.

Explain the reason for a product like SAP NetWeaver Business Information Warehouse. In an operative system (OLTP) the detailed data is spread in several database tables, in an informative or analytical system (OLAP) aggregated data, normally coming from various systems, is combined for faster access.

OLTP versus OLAPOLTP environments are fundamentally different from OLAP environments.

Figure 82: OLTP versus OLAP

Unit 7: Analytics and Strategic Planning


OOLTP OLAP

Level of detail Stores data with a very high level of detail

Data is compressed for high-performance access (aggregation).

History Archiving data in the OLTP area means it is stored with minimal history.

Data warehouse area requires comprehensive historical data.

Changeability Frequent data changes Data is frozen at a certain point for analysis.

Integration not applicable Requests for comprehensive, integrated information are very high for analysis.

Normalization Due to the reduction in data redundancy, normalization is very high for operative use.

Less normalization in the data warehouse because of data staging and lower performance

Performance Operative applications also need to carry out additional performance functions, including change, insert and delete.

OLAP environment is optimized for read access.

SAP NetWeaver Business Warehouse

Figure 83: SAP NetWeaver Business Warehouse Platform

A complete business intelligence solution is subdivided into various areas. SAP brings together a powerful business intelligence infrastructure, a comprehensive set of tools, planning, and simulation capabilities, and data-warehousing functionality. This is delivered through enterprise portal technology. This enables strategic analysis and supports decision-making. Authorized employees can access and evaluate historic and current data with different levels of detail.



SAP NetWeaver BW Architecture

Figure 84: SAP NetWeaver BW Architecture

SAP NetWeaver BW and its tools is still central in the analytics area. It is supplemented by the various products coming from SAP BusinessObjects and others, which are not part of NetWeaver. Together they form SAP BI.

The SAP NetWeaver BW architecture contains the following layers:

EExtraction Enterprise data is collected centrally in the SAP NetWeaver Business Warehouse. The data is usually extracted from different sources and loaded into SAP NetWeaver BW. SAP NetWeaver BW supports various sources, including relational and multidimensional sources and SAP and non-SAP sources. To consolidate the data for evaluations, technical cleanup steps are performed and business rules are applied. The consolidated data is stored in the data warehouse. This entire process is called extraction, transformation and loading (ETL).

Data storage and data flow

SAP NetWeaver BW offers a number of options for data storage. These include the implementation of a data warehouse or an operational data store, as well as the creation of the data stores used for the analysis.

Data analysis and planning

Analysis can be used to obtain information from the data set and can be used as a basis for decisionmaking. Online analytical processing (OLAP) prepares information for large amounts of operative and historical data. The BW OLAP processor allows multidimensional analysis from various business perspectives. Data mining helps you explore and identify relationships in the data.

How to Execute a Sales Report

1. From the SAP Easy Access screen, choose Logistics -> Logistics Controlling -> SalesInformation System -> Standard analysis -> MCTE Sales organization .



22. Execute the report for Sales Organization 1000 and for the proposed period, and briefly explain the result and the drill-down possibilities.

SAP BusinessObjectsSAP BusinessObjects is a market leader in enterprise business intelligence. By making information easily accessible and consumable with simplified user interfaces, SAP BusinessObjects helps companies bridge the information divide between business intelligence (BI) power users and everyday business users. As a result, organizations gain better business insight, improving decision making and enterprise performance.

For details about the SAP BusinessObjects offerings you should make yourself familiar with the BI pages on SDN, where the differences and future developments are explained.

Figure 85: SAP and SAP BusinessObjects Products

While some products on the figure complement each other, SAP BusinessObjects Enterprise is not the same as SAP NetWeaver BW (the two lowest building blocks). BusinessObjects does not use a data warehouse in the same way as SAP, it is working with direct access to the data sources. BWA stands for BW Accelerator

SAP BusinessObjects Products

SAP BusinessObjects offers the following products:

SAP BusinessObjects Data Services

Provides a graphical interface that allows you to easily extract data from diverse sources, transform that data to meet business requirements, and load the data into a single location

SAP Netweaver BW Accelerator

Provides rapid access to data, while keeping administration effort to a minimum

SAP NetWeaver Master Data Management

Is used as a platform to consolidate, cleanse, and synchronize a single version of the truth for master data within a diverse application landscape



SSAP BusinessObjects Business Intelligence Solutions

A portfolio of solutions that enables the user to search through business information

SAP BusinessObjects Web Intelligence

Has a simple user interface for self-service reporting and analysis, independent from IT, and helps to combine SAP and non-SAP data in a single report

Crystal Reports Enables the creation and modification of highly formatted reports on top of SAP NetWeaver BW

SAP BusinessObjects Dashboards

A data visualization tool that enables the integration of dynamically updated data into Microsoft Office, PDF, and Web documents with SAP BusinessObjects queries and reports

Visual Composer A Web-based application that enables business experts and developers to quickly create business application components without coding

SAP NetWeaver Portal Offers a single point of access to SAP and non-SAP information sources, enterprise applications, information repositories, databases, and services inside and outside your organization. All information is integrated into a single source.

How to Execute an SAP BusinessObjects Dashboards Query

1. Download the file SAP01_XcelsiusI_Demo.xls from the Business Workplace shared folder SAP01 and save it to the My Documents folder in the Common Training WTS session.

2. Start Xcelsius using the path Start -> Programs -> Xcelsius -> Xcelsius 2008 . Import the Excel model SAP01_Xcelsius_Demo from the My Documents folder.

3. Insert a bar chart that visualizes the projected computer sales data in 1,000s with one bar per product line.

4. Use a horizontal slider to give the bar chart what-if capabilities. You should now be able to see the impact of a change in the sales growth rate for desktops in the bar chart.

5. Add more horizontal sliders to the dashboard to give the bar chart what-if capabilities for the other product lines.

6. Add a custom gauge to visualize the total projected sales for all product lines. Use alerts within the gauge to indicate bad, critical, and good values.

7. Add a custom pie chart that shows the product mix for 2009 for all product lines.

8. Finalize the presentation by adding a title text field for the dashboard. Also label the sliders with a text field. Increase the font size of the text fields to highlight them. Add a background element to the canvas. Preview the dashboard.

9. Save the dashboard in the local My Documents folder. Export the dashboard to PowerPoint and save the PowerPoint in the My Documents folder. Start the presentation mode in PowerPoint.



How to Execute an SAP BusinessObjects Web Intelligence Query

11. Download the file SAP01_WebI_Demo.xls from the Business Workplace shared folder SAP01 and save it to the My Documents folder in the Common Training WTS session.

2. From the SAP Easy Access screen, choose Start -> Business Objects XI 3.1 -> BusinessObjects Enterprise Client Tools -> Web Intelligence Rich Client. Select Authentication:Standalone and choose the Logon button.

3. Choose the Open a document icon , select the file type Text and Excel Files, select the SAP01_WebI_Demo.xls file in your My Documents folder, and choose Open.

4. Make sure that the Field Selection is All Fields and the check-box First row contains column names is selected. Choose Next.

5. Do not change anything in the Create a Query window and choose Run Query.

6. Rename the report title to Sales Order Report.Double-click the report title and enter the name Sales Order Report. Then press Enter.

7. Rename the column heading from Sold to party to Customer.Double-click the Sold to party cell and enter Customer, then press Enter. If you get a prompt to validate the formula, respond with Yes.

8. Create a section in the report according to the customers, then create a sum of Sales Order Items for each customer.1.Highlight any customer value cell, right-click, and choose Set as Section. 2. Highlight any empty customer value cell, right-click, and select Remove -> Remove Column. 3. Highlight any value cell of Sales Order Item and select the Insert Sum button from the tool bar to create totals by customer.

9. Visualize the section with a horizontal grouped bar chart.Right-click one of the tables with products and sales order items.

10.Choose Turn to and select the Bar Chart icon.

11. Select Horizontal Grouped.

12. Save the Web Document as a PDF in your My Documents folder and open it using Windows Explorer.Choose File -> Save As -> PDF and select the My Documents folder.Do not change any of the settings. Open the file using Windows Explorer.



Unit 7Exercise 1

Create a Business Intelligence Report

Business ExampleYou are responsible for the creation of reports. Using business intelligence, you must create a report listing the top 10 customers in Germany according to their sales volume.


11. Open the query T SAP01 Customer Analysis. Start the BEx Analyzer, log onto the training system, and search in the InfoAreas for BW Training -> BW Customer Training -> BW305 Reporting -> Customer Cube T_SDDEMO2 -> SAP01 Customer Analysis.

2. Drill down to Countries instead of Sold-to Parties.

3. Filter for the country DE-Germany.

4. Switch back again to see the Sold-to party.

5. Sort according to the sales volume . The highest sales volume should be at the top of the list.

6. Filter for the top 10 customers according to the sales volume.

7. Create a graphic for these 10 customers. First, remove the result rows. This has to be done on the Sold-to Party characteristic. Display the table as a chart, which should show the top 10 customers with the Sales Volume and Incoming Orders.

8. Close the analyzer again. Do not save the query.


Unit 7Solution 1


Business ExampleYou are responsible for the creation of reports. Using business intelligence, you must create a report listing the top 10 customers in Germany according to their sales volume.


11. Open the query T SAP01 Customer Analysis. Start the BEx Analyzer, log onto the training system, and search in the InfoAreas for BW Training -> BW Customer Training -> BW305 Reporting -> Customer Cube T_SDDEMO2 -> SAP01 Customer Analysis. a) From the SAP Easy Access screen, choose Start -> Programs -> Business Explorer ->

Analyzer.

b) Select BEx Analyzer -> Open Query.

c) In the SAP Logon dialog box, select the training system you are using and choose OK.

d) Enter the required user data (Client, User, Password, and Language) and choose OK. If an SAP Logon Control dialog box appears, continue by choosing OK.

e) Search in the InfoAreas. Choose W Training -> BW Customer Training -> BW305Reporting -> Customer Cube T_SDDEMO02 -> SAP01 Customer Analysis and double-click on the entry.

f) Choose the SAP01 Customer Analysis.

2. Drill down to Countries instead of Sold-to Parties. a) Right-click any line in the sold-to party column. You can also choose the header line

where it says sold-to party.

b) Choose Swap Sold-to party with Country.

3. Filter for the country DE-Germany.

4. Switch back again to see the Sold-to party.

5. Sort according to the sales volume . The highest sales volume should be at the top of the list.a) Select the arrow on any value field in the sales volume EUR field.

6. Filter for the top 10 customers according to the sales volume.a) Right-click any value field in the sales volume EUR column and choose Create Condition

-> Sales Volume EUR Top 10.

7. Create a graphic for these 10 customers. First, remove the result rows. This has to be done on the Sold-to Party characteristic. Display the table as a chart, which should show the top 10 customers with the Sales Volume and Incoming Orders.a) Right-click any line in the Sold-to party column. You can also choose the header line

(where it says Sold-to party)..


bb) Choose Parties.

c) Choose OK. The Overall Result line should vanish.

d) Choose Chart.

8. Close the analyzer again. Do not save the query.a) Choose File -> Exit. Choose No if the system asks Do you want to save the changes you

made to T_SAP01_Customer.xlx?.


Unit 7


1. Data in an online analytical processing (OLAP) environment is only saved for a short period of time.Determine whether this statement is true or false.

X True

X False


Unit 7


1. Data in an online analytical processing (OLAP) environment is only saved for a short period of time.Determine whether this statement is true or false.

X True

X False

The data warehouse area requires comprehensive historical data.


UNIT 8 SAP Services

Lesson 1

Accessing SAP Services 274

UNIT OBJECTIVES

� Explain the different services offered by SAP


Unit 8Lesson 1

232Accessing SAP Services

LESSON OVERVIEW

This lesson describes some of the most important services SAP provides to customers and partners. It is meant to be used as a final statement of how customers can effectively implement the systems discussed in the previous lessons. You do not need to spend a lot of time here. Briefly touch on the highlights, which are maintenance and support, consulting and education services. The demonstrations have been removed from this lesson. Should you decide demo some of the sites referenced, you may require a Service Marketplace User ID. If you do not have a User ID, it is recommended you access: http://service.sap.com and set-up a User ID before you begin this lesson.

This lesson shows you how to find additional information about the services SAP provides its customers and partners.

Business ExampleYou are responsible for presenting a summary of SAP services to the steering committee and you must create a presentation. You require the following knowledge:

� Good understanding of SAP services

� Good understanding of SAP maintenance and support

� Good understanding of finding information on the SAP Marketplace and help portals

� Good understanding of SAP Consulting services

� Good understanding of SAP Education services




SAP Services

Figure 86: SAP Services

With SAP Services, IT and business strategies can be aligned, and software can get up and running quickly and be kept at peak operating levels.

SAP Service Offerings

SAP Services include the following:

CConsulting services Offers best-in-class consulting through planning, implementation, and optimization services

Financing for SAP solutions

Provides companies with affordable, all-inclusive, and predictable financing options that cover the entire cost of the SAP solution

Business process outsourcing

Supports business process outsourcing (BPO) providers in setting up services that generate sustainable business value

Hosting and application management

Operates, manages, and maintains SAP solutions for organizations of any size

Software maintenance and support

Provides services for planning, implementation, and operations

Custom development Incorporates SAP development strategies to deliver solutions that meet unique business goals

SAP Maintenance and SupportSAP Active Global Support delivers the skills and resources you need to optimize the performance of your solution and manage your business processes effectively.

This should introduce the different levels of SAP support. Please note that SAP Enterprise Support is the standard level for SAP Business Suite customers. SAP MaxAttention offers additional services, while SAP Safeguarding concentrates on technical quality management.

Lesson: Accessing SAP Services


Figure 87: Software Maintenance and Support

SAP maintenance and support services include the following:

SSAP Enterprise Support

Provides SAP support through a 24/7 guaranteed service-level agreement, continuous quality checks, support advisory, and advanced support for implementing SAP ERP enhancement packages and support packages

SAP MaxAttention Aligns your needs with a strategy for the end-to-end operation of your SAP solutions, focusing on core business processes, the system landscape, IT automation, and protection of IT investments

SAP Safeguarding Manages risks and ensures the technical robustness of your SAP solutions during implementation, upgrade, and operations

SAP Enterprise SupportSAP Enterprise Support helps you reduce costs and risks and protect your IT investments by offering an easier methodology for deploying and managing software innovations. The focus of SAP Enterprise Support is the management of your IT landscape over the life cycle of your applications.

Categories of development included in SAP Enterprise Support include the following:

� Standard SAP software

� Custom development (delivered by SAP)

� Partner solutions

Figure 88: SAP Enterprise Support

Benefits of Enterprise SupportFast, effective problem resolution is essential to minimizing costly downtime. If you face an issue when running your core business processes, you need access to expert knowledge right away. With SAP Enterprise Support, you have access to the knowledge resources and collaboration capabilities of SAP global support.

Unit 8: SAP Services


SAP Enterprise Support provides:

� Consistent standards

� Tool- and process-supported diagnostics

� Life cycle management based on standards and tools

� Remote supportability

� Monitoring and management of your business processes

� Enabling management of your custom code

Figure 89: SAP Enterprise Support Offerings

SAP Service MarketplaceTo design, build, and maintain a high-quality solution, you need efficient access to a variety of services from SAP and others. The SAP Service Marketplace gives you one-stop access with easy, guided navigation to a full range of offerings from SAP and SAP partners. You benefit by completing your solution faster, with higher quality, and at a lower cost of ownership at all stages of the life cycle.

You can reach the SAP Service Marketplace from your SAP Enterprise Portal or directly at .



Figure 90: SAP Service Marketplace

The service marketplace is the primary point of information for all of SAP's services. Keep this at a very high level and just touch on some of them. Might be better to demo this.

SAP Service Marketplace Offerings

SAP Service Marketplace offerings include the following:

SSAP Support Portal Supports your SAP solution during its entire life cycle

SAP Partner Portal The best single source of information and services for SAP partners

SAP Channel Partner Portal

Provides tools, information, and services that enable SAP Business Partners to collaborate with SAP

Consulting, Solutions, and User Group areas

Provide a wide range of material on all SAP solutions and consulting services, as well as access to user group information

SAP Business One Customer Portal

Allows all SAP Business One customers quick access to support services, including information and applications to help you solve any problems you encounter with your system

SAP Developer Network

Offers a complete collection of content and collaboration dedicated to SAP technology topics

SAP Help Portal Provides Web-based documentation for all SAP solutions. This enables you to search the online library for the right information where and when you need it.

SAP Business Community

Where SAP experts, customers, and business leaders gather to exchange insights, solve problems, and share ideas

SAP Education Helps you design and implement learning strategies covering the entire corporate education value chain

SAP Library

The SAP Library provides the following search capabilities:

� Obtain a functional overview of all SAP systems.



� Find information organized according to information classes, including system components, objects, functions, processes, and step-by-step procedures.

� Search across the full SAP Library using a powerful search engine.

� Search for the meaning of terms in the SAP Glossary.

Figure 91: help.sap.com

The SAP Library is offered free of charge. You can access the SAP Library without an SAP Corporate Portal or SAP Service Marketplace at http://help.sap.com.

Consulting ServicesWith SAP Consulting as your valued business partner, you benefit from our SAP skills and experience, our close working relationship with SAP development, and our extensive partner network. SAP Consulting delivers sound advice and support throughout the entire solution life cycle with a portfolio of services.

The benefits of the consulting services portfolio include the following:

CCreate new value: Consulting services leverage the entire SAP network to create value for customers who are implementing SAP solutions by deploying SAP's latest technology and functional innovations.

Helps you realize additional value:

Consulting services help customers in the operations phase improve total cost of ownership and continuously adapt to changing business environments.

Protect value: SAP Consulting works with our team of partners, assuring quality and mitigating risk to protect your software investment.



Figure 92: SAP Consulting Services

SAP Consulting has a flexible engagement model that allows you to choose the level at which SAP is involved in your project. Some customers simply want strategic oversight from SAP, while others want complete end-to-end management and responsibility. Whatever your needs, SAP Consulting's flexible engagement model can support your drive toward a successful SAP implementation.

SAP Consulting Service Categories

SAP Consulting service categories include:

PProgram and project management services

Help you monitor progress toward program goals, identify potential problems, and increase the effectiveness of complex programs.

Business process design services

Focus on the architecture of business processes and their associated systems and organizational structures.

Solution implementation services

Provide input on how to best use applications to meet your business needs.

Solution optimization and upgrade services

Deliver comprehensive services for implementing the upgrade and addressing technology, business processes, training, and change and risk management.

Business and IT strategic consulting services

Help you identify and quantify the business value that comes with increased operational efficiency.

Solution integration services Help you integrate your company-specific IT systems with both SAP and non-SAP solutions.

Solution and architecture design services

Help integrate your business solutions into your overall enterprise architecture, ensuring that your IT infrastructure is aligned with business strategies.

Technical implementation services

SAP works with you to translate high-level system architecture into project-specific technical requirements.

Conversion, migration, and landscape optimization

Align your system landscape with individual business requirements.



TTechnology architecture design

You receive specific recommendations for making your IT environment robust, feasible, and scalable.

Quality and risk management services

Ensure that your projects achieve strategic and operational objectives.

SAP EducationSupported by cutting-edge software, services, and tools, SAP Education works with you to build a culture of continuous blended learning and realize a measurable return on education. SAP Education can help you design and implement learning strategies covering the entire corporate education value chain.

With comprehensive offerings from SAP Education, you can achieve the following:

� Optimize the value of your IT investment.

� Reduce total cost of ownership.

� Facilitate adoption and system use among your users.

� Manage your enterprise-wide knowledge transfer and communication.

You will benefit from training options based on solution, role, or program.

You can take advantage of various types of training, including:

� Instructor-led training at an SAP Education site or your own facility

� SAP Solution Academy

� End-user solutions

� E-learning courses

� Online knowledge products

SAP offers certifications and customized, industry-based education solutions in addition to market-leading education choices for corporate learning, talent management, and Web-based communication. With this breadth of course offerings, context, and delivery options, you can leverage education solutions that are comprehensive, effective, convenient, and right for you.

Figure 93: Knowledge Transfer



Students don't always know what other services SAP provides besides Project team training. Emphasize the SAP virtual classroom, on-site classes, and certification.

SAP Education Details

Academy program

Companies that implement state-of-the-art SAP solutions often use the services of SAP-certified consultants. As a result, they know they are getting expert help from partners equipped with the very latest SAP solution information and training. The SAP Education organization provides comprehensive training. Flexible, modular curricula enable you to harness the full power of SAP solutions and provide the right knowledge at the right time.

Certification programFew credentials in the business world carry the value of SAP certification. Those who hold it have honed their skills through rigorous study or direct experience. They have demonstrated their abilities by passing demanding, process-oriented exams. Regardless of whether you are an SAP partner, customer, or user, SAP certification can give you a distinct competitive advantage.

Education consulting servicesWith help from our experienced consultants, you can assess your educational needs, quantify your desired results, and leverage direct assistance to achieve your goals.

Education consulting services include the following:

CChange management Focuses on helping you introduce the change process, ensure organizational alignment, and coordinate and integrate key leadership, organizational, technology, and cultural issues so you can achieve goals and objectives

Education needs analysis

Examines your company's objectives, user communities, and current implementation or implementation plan and develops recommendations for helping you achieve your goals

High-levelassessment of education scope

Provides your senior management with a clear and easily understood definition of the size, scope, and cost elements required to successfully implement or upgrade SAP solutions

Human performance improvement

Empowers your employees to realize their full potential within the working environment. This allows employees to achieve real business results.

User services and products

Improve daily operations, streamline training time, and increase user productivity by bringing consulting, customized training, documentation, and the latest computer-based tools to your employees.

Training planning and support

Provides advice on organizational training requirements such as upgrades, new functionality and application implementation, and rollouts; addresses training needs related to attrition, new hires, and improvement initiatives



FACILITATED DISCUSSIONAsk participants to name an SAP service and explain how they would use the service in their

business.





Unit 8


1. The SAP Service Marketplace allows customers and partners to order SAP services via the Internet.Determine whether this statement is true or false.

X True

X False

2. SAP Education offers only classroom trainings.Determine whether this statement is true or false.

X True

X False

3. When is SAP Enterprise Support available?Choose the correct answers.

X AA Five days a week

X B From 8 am to 5 pm

X C 24 hours a day, 7 days a week

X D Not on holidays


Unit 8


1. The SAP Service Marketplace allows customers and partners to order SAP services via the Internet.Determine whether this statement is true or false.

X True

X False

The SAP Service Marketplace allows users to access a variety of services from SAP and its partners, and request services via the Internet.

2. SAP Education offers only classroom trainings.Determine whether this statement is true or false.

X True

X False

Besides instructor-led training at an SAP Education site or your own facility, SAP offers e-learning courses and online knowledge products.

3. When is SAP Enterprise Support available?Choose the correct answers.

X AA Five days a week

X B From 8 am to 5 pm

X C 24 hours a day, 7 days a week

X D Not on holidays

SAP Enterprise Support is available 24/7.


SAP01_EN_Col10_FV_Inst_A4

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