SAP- ERP

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What is ERP?What is ERP?

An Enterprise Resource Planning system is a packaged business software system that allows a company to:

Automate and integrate the majority of its business processes

Share common data and practices across the entire enterprise

Produce and access information in a real-time environment

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What is

S A P

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What is S A P

S A P

Stands for

Systems Applications and Products

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About SAPAbout SAPSAP

ystems,

pplications,

roducts...

Founded in Founded in Walldorf, Walldorf, Germany in 1972Germany in 1972

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•4th largest independent software supplier in the world•Largest ERP vendor•More than 2,500,000 users in over 50 countries•Over 21,000 R/3 installations worldwide•An average of 25% of revenue invested in R&D•High customer and employee satisfaction

World Leader in enterprise business softwaresolutions

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Why SAP is UniqueWhy SAP is UniqueHighly integratedComprehensive functionalityComplex data structuresAvailability of dataSingle point of entryOn-line data capture and real-time updateRequires strong application knowledgeCauses personnel and organizational

structure changesCauses business process changes

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SAP Business PartnersSAP Business PartnersBusiness

DevelopmentPartners

Logo and Implementation

Partners

TechnologyPartners

PlatformPartners

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Support & ServicesSupport & Services

User GroupsUser Groups

CompetenceCompetenceCentersCenters

SAP EmployeesSAP Employeesover 18,330 over 18,330

worldwideworldwide

HotlineHotline( 24 hours a day( 24 hours a day7 days a week )7 days a week )

OSSOSSOnlineOnlineServiceServiceSystemSystem

RemoteRemoteSupportSupport

CCMSCCMSComputing CenterComputing Center

Management SystemManagement System

Early WatchEarly Watch

Logo/Implementation PartnersLogo/Implementation Partnersover 10,000 consultantsover 10,000 consultantstrained in SAP worldwidetrained in SAP worldwide

TrainingTrainingover 400 differentover 400 different

SAP training coursesSAP training courses

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Industries Served By SAP01 Raw Materials, Mining Agriculture

02 Oil and Gas

03 Chemical

04 Pharmaceutical

05 Building Materials, Clay, Glass

06 Building and Heavy Construction

07 Primary Metal, Metal Products, Steel

08 Industrial and Commercial Machinery

09 Automotive

10 Ship, Aerospace & Train Construction

11 Transportation Services, Tourism

12 Electronic/Optic Equip., Common Devices

13 Wood and Paper

14 Furniture

15 Consumer Packaged Goods - Food

16 Consumer Packaged Goods - Non-Food

17 Clothing and Textiles

18 Retail and Wholesale

19 Communication Services, Media

20 Storage, Distribution, Shipping

21 Utilities

22 Financial Services, Banks and Insurance

23 Government, Public Admin. and Services

24 Museums and Associations

25 Healthcare and Hospitals

26 Educational Institutions, Unis, Research

27 Consulting, Software

28 Services

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SAP - The ProductSAP - The ProductOriginal product was SAP R/2 on the

mainframe introduced in 1972SAP R/3 introduced for smaller platforms in

1992Developed using a fourth generation

proprietary language developed by SAP called ABAP/4

Major SAP versions: 2.2h3.0d, 3.0e, 3.0f , 3.1g, 3.1h, 3,1i4.0b, 4.5b, 4.6b, 4.6c, 4.75.0, 6.0 www.sapendusers.com

SAP - Enterprise System

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SAP - Client/Server Environment

• Client

– Software/hardware combination that can make a request for services

from a

central repository of resources

• Server

– Software/hardware combination that can provide services to a group of

clients in

a controlled environment

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SAP - Three-Tier SAP Structure

• GUI – Graphical User Interface or Web Interface

• Application server (one or many)

• Database server (one single location)

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SAP ComponentsSAP ComponentsSAP R/3 is comprised of modules categorized in three

core functional areas:• Financial• Human Resources • Logistics

Special software packages on top of R/3, targeted to specialized vertical industries:

Industry Solutions (IS)Special set of modules positioned between the

technical and functional areas of the system:Cross Application (CA) ModulesWorkflow (WF)

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Financial AccountingFinancial Accounting

General LedgerGeneral Ledger

Accounts ReceivableAccounts Receivable

Accounts PayableAccounts Payable

Tax and Financial ReportsTax and Financial Reports

Special Purpose LedgerSpecial Purpose Ledger

Legal ConsolidationsLegal Consolidations

FIFIFIFI

Financial Applications. . . . . . . .

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ControllingControlling

Cost Center AccountingCost Center Accounting Profit Center AccountingProfit Center Accounting Product Cost ControllingProduct Cost Controlling Profitability AnalysisProfitability Analysis Activity Cost ManagementActivity Cost Management Internal OrdersInternal Orders

COCOCOCO

Financial Applications. . . . . . . .

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Fixed Asset ManagementFixed Asset Management

DepreciationDepreciation

Property ValuesProperty Values

Insurance PoliciesInsurance Policies

Capital Investment Capital Investment GrantsGrants

AMAMAMAM

Financial Applications. . . . . . . .

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Project SystemProject System

Project TrackingProject Tracking

Work Breakdown StructureWork Breakdown Structure

Budget ManagementBudget Management

Cost and Revenue PlanningCost and Revenue Planning

Networks and ResourcesNetworks and Resources

PSPSPSPS

Financial Applications. . . . . . . .

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Sales and DistributionSales and Distribution

Computer Aided SalesComputer Aided Sales

QuotationsQuotations

Sales Order ManagementSales Order Management

PricingPricing

DeliveryDelivery

InvoicingInvoicing

SDSDSDSD

Logistics Applications . . . . . . . .

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Materials ManagementMaterials Management

ProcurementProcurement

Inventory ManagementInventory Management

Vendor EvaluationVendor Evaluation

Invoice VerificationInvoice Verification

Warehouse ManagementWarehouse Management

MMMMMMMM

Logistics Applications . . . . . . . .

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Production PlanningProduction Planning

Sales & Operations Sales & Operations PlanningPlanning

Demand ManagementDemand Management

Material Requirements Material Requirements PlanningPlanning

Production Activity ControlProduction Activity Control

Capacity PlanningCapacity Planning

PPPPPPPP

Logistics Applications . . . . . . . .

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Quality ManagementQuality Management

Quality CertificatesQuality Certificates

Inspection ProcessingInspection Processing

Planning ToolsPlanning Tools

Quality ControlQuality Control

Quality NotificationsQuality Notifications

QMQMQMQM

Logistics Applications . . . . . . . .

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Plant MaintenancePlant Maintenance Plant MaintenancePlant Maintenance

Equipment and Technical Equipment and Technical ObjectsObjects

Preventive MaintenancePreventive Maintenance

Service ManagementService Management

Maintenance Order Maintenance Order ManagementManagement

PMPMPMPM

Logistics Applications . . . . . . . .

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Human ResourcesHuman Resources Personnel AdministrationPersonnel Administration

Payroll, BenefitsPayroll, Benefits

Time ManagementTime Management

Planning and DevelopmentPlanning and Development

Organization ManagementOrganization Management

HRHR

Human Resources. . . . . . . . Human Resources. . . . . . . .

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Industry SolutionsIndustry Solutions BanksBanks HospitalsHospitals Oil CompaniesOil Companies Publishing SectorPublishing Sector TelecommunicationsTelecommunications RetailRetail UtilitiesUtilities OthersOthers

ISIS

Industry Solutions. . . . . . . . Industry Solutions. . . . . . . .

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Audit CyclesAudit CyclesRevenueExpenditureInventory ManagementFixed AssetsTreasuryPayroll/PersonnelBusiness ProcessesOr: audits specified by your organization

e.g. Cross functional, Operational

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Management ChallengesManagement ChallengesSAP Modules

Three Main Functional CategoriesMultitude of ModulesMultitude of Sub-Modules

SAP Business Processes1000+ Processes

Many Audit cyclesAuditors will determine how all these components

interrelate in order to audit effectivelyManagement should have continuous monitoring

processes in place

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Business/SAP/Audit Process Business/SAP/Audit Process Views Views

Audit Audit CyclesCycles

SAP ModulesSAP Modules

Business Business ProcessesProcesses

Application Level - Application Level - Client EnvironmentClient EnvironmentModel Level - SAP Model Level - SAP Process ModelProcess Model

Organizations’ Organizations’ Audit - Business Audit - Business CyclesCycles

Implementation Implementation Level - SAP Level - SAP Software ModelSoftware Model

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Relationship of Audit to SAPRelationship of Audit to SAPSAP Module Functional Categories, Modules

and Components Business Cycles Audits and SAP Modules

SAP SAP ComponentsComponents

AuditAudit SAP ProcessesSAP Processes

SAPSAPModulesModules

Account Account BalancesBalances

(Financial (Financial Accounting)Accounting)

(A/R)(A/R)

(Revenue)(Revenue)

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Linking Audit Cycles to SAP Linking Audit Cycles to SAP ModulesModules

ExpenditureFixed Assets

Inventory Management

Payroll and Personnel

Revenue

TreasuryFinancial Applications

Logistics Applications

Human Resources

Cross Applications

Industry Solutions

Audit Business Cycles

Basis Component

SAP Module Functional Category

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Nirmal (originally designed).

Collection, modification & circulated by

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