SAP functionality overview document

1.1 Fundamentals of SAP Client Server Module

1. SAP is fundamentally an ERP (Enterprise Resource Planning) application utilized in order to agglomerate all areas of business process/practice.

2. Configuration of SAP is required in order to meet the functional needs of businesses under one centralised integrated operation.

3. In order to achieve this, organisational data using key SAP logic is manipulated to reflect the structure of the clients business. Following this, every transaction is executed within the boundaries of the client’s sequential mapped enterprise structure.

1.2 Architecture of ECC

ECC (Enterprise Central Component) based on a three-tier architecture structure. These layers include; Database (server) layer, Application logic layer & Presentation (client) layer. Adoption of a three-tier approach utilising an application layer enables optimisation of input, process and output system logic. Additionally, the use of application logic also enables you to initiate transactions for functional areas of ECC.

Figure 1: Architecture of SAP Client/Server Model.

Figure 2: Core Modules within SAP ERP/ECC

Figure 3: Core Modules within SAP ERP/ECC Logistics Component.

SAP Logistics

Module Key Components

Materials Managmen

t (MM)

Sales & Distribution

(SD)

Quality Managmen

t (QM)

Plant Maintenance

(PM)

Production Planning

(PP)

Warehouse Management

(WM)

Customer Service

(CS)

1.3 SAP Basic Infrastructure

Primary Objective = optimise configuration pipeline management. SAP system landscaping ensures that the integrity of data is enhanced via enforcing a controlled configuration sequence that primarily targets the end productive system.

Superstructure & Substructure of SAP landscaping

SAP Server Arraignment (logical & unilateral)

EACH of the above landscapes would have multiple client databases (AS BELOW)

1. Development Server = SAP consultant customization practice 2. Quality Server = Core members perform testing & verification of customisation

practice. 3. Production Server = Live data of ERP functionality in real working practice.

In order to transcend data changes through clients SAP servers, Transport Requests must be executed in order for the optimisation/refinement process to be complete.

Sandbox server is primarily utilised during the initial stages of project implementation for configuration and mapping of the company’s functional business processes.

DEV (Development)

MSQ (Quality Measure)

MSP (Live/Productive)

DEV (Development)

Client (100 - Sandbox)

Client (101 - Unit Test)

1.4 Typical SAP High Level Organisation Structure

1.5 Typical Overview Of SAP FI High Level Organisational Structure

Client

Company Code (001)

Plant (001) Plant (002)

Purchasing Org (001)

Purchasing Group (001)

Purchasing Group (002)

Company Code (002)

Plant (003)

Company Code (003)

Plant (004)

Chart of Accounts

Client

Operating Concern

Controlling Area 001

Company Code 003

Company Code 004

Company Code 005

Controlling Area 002

Company Code 001

Company Code 002

Group Chart Of Accounts

Client – highest level of the enterprise structure. Represents the company as an entity through a centralised client server model.

Group Chart of Accounts - This is a list of all general ledger (G/L) accounts used by one or several company codes. For each individual G/L account, the chart of accounts contains the account number, account name, and the information that controls how an account functions and how a G/L account is created within a company code. Company codes must be assigned to a chart of accounts.

Operational Concern (OPCON) - Determined by the field analysis criteria, operational concern facilitates profitability analysis (COPA) through client specific means of field analysis. For example, you can analyse revenue from sales & distribution and cost from controlling based upon results posted.

Controlling Area – Contain the operational results from associated company codes. Operational postings for a company code are assigned to a pre-defined controlling object (i.e. cost department, profit department) in reflection of the internal structure of an organization.

1.6 Core SAP functionality

Objective = Provide organisations with a standard framework for cross functional integration across core business functions such as FI (finance), CO (controlling), HR (human resources), MM (materials management & PM (plant maintenance).

Consultants should always look to functionalise and map fundamental business processes within the remits of the core SAP modules.

1.7 Materials Management as part of logistics enterprise module

Logistics within SAP can be defined as the management of key business operations such as material acquisition, refinement, storage, transportation & delivery across the supply chain spectrum.

The supply chain can be defined as a network of retailers, distributors, transporters, storage facilities & suppliers that actively participate in the sale, delivery & production of a particular product.

1.8 Materials Management & Supply Chain Management

Integration between supply chain & material management within a SAP environment is based primarily on three key process/information flows.

1. The Material Flow2. The Information Flow3. The Financial Flow

The Material Flow – constitutes the movement of goods across the vendor, company & consumer spectrum. Increasingly, vendors are seeking competitive advantage through clarification & pro-active material movement.

The Information Flow – The transmission (i.e. EDI) of information on demand & order fulfilment status increases traceability and accountability across the supply chain spectrum.

The Financial Flow - The creation of financial documentation & postings across the supply chain spectrum in order to enable the calculation of financial costing’s & forecasting/review analytics.

SAP Mapped Material Flow Overview

The material flow can therefore be described as integral in driving the process of supply chain through the SAP client landscape.

ECC Demand SD forcast or Sales order instigated

Material Requirements Planning Run

(MRP)

Planning of Manufacture or

packing plan

Production order /process

order

WM Picklist of Components

WM & Goods issue against a

order

External pocurement

against demands

Purchase Requisitions

RFQ & Vendor Criteria Selection

PO Release & Processing

QM & Goods Reciept