terp01 sap erp introduction latest

7/29/2019 TERP01 SAP ERP Introduction Latest

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TERP01 SAP ERP Introduction

About This Module

Organizational Levels and Master Data is the basic framework that

supports business processes. As part of this module, you will be

introduced to the transition from R/3 to SAP ERP, and therefore

understand how to create the Organizational Levels and Master Data for

the business processes inside SAP ERP.

Module Objectives

Understand the positioning of R/3 to SAP ERP, identify its variouscomponents, describe the Organization Levels and Master Data, which

are needed to support business processes in SAP ERP, explain reportingand analysis solutions available in SAP ERP to support internal and

external reporting needs of an organization.

Appreciate the transition from R/3 to SAP ERP. Identify the various components of SAP ERP. Describe the various Organization Levels and Master Data which are

needed to support various Business Processes in SAP ERP.

Explain Reporting and Analysis solutions available in SAP ERP, tosupport various internal and external reporting needs of anorganization.

Module Content

SAP ERP Positioning Organizational Levels Master Data Reporting SolutionsTarget Audience

Solution architect, project managers, team members, and solution

consultants who want to gain a broad fundamental understanding of the

core processes, business interrelations, and integration of the individual

business applications within the SAP ERP solution.

SAP ERP Positioning

About This Topic

This topic explains the transition from R/3 to SAP ERP. It also aims tointroduce participants to the various components of SAP ERP.


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Estimated time to complete this topic: 30 minutes What's in it for me?

To understand the positioning of R/3 enterprise towards SAP ERP

A New Wave of Information Technology

Audio Transcript

As technology grows and changes, software has to upgrade accordingly.

However, SAP believes in an environment where you do not have to scrap your

existing software setup.Instead, it would provide upgrades and extend the

functionality of the existing software, therebyreducing costs.

In this image, you can see that to begin with SAPs technology was based on

Mainframe architecture based on ABAP and R2. Keeping pace with business

requirements and integrated business processes,technology changes were madefrom R2 to three tier R/3 and moved from Mainframes to Client-

ServerArchitecture. SAP R/3 has always been an integrated system where

business processes wereintegrated within an enterprises operations. Capable of e-

commerce since 1996, SAP productsincorporated business technology for the

future, thus paving the way for incorporating futuredevelopments. This

eliminated the need for customers to change existing systems and allowed

forintegration of business processes between enterprises.

Finally, with Technology advances and the internet revolution, you now have

services catering toadaptive businesses like Web services. SAPs Enterprise service

architecture platform featuresNetweaver, business suites and xApps offerings,

keeping pace with the business requirements of todayand the future.

Architecture of SAP ERP (Image)

Audio Transcript

After the SAP R/1 and SAP R/2 products, SAP introduced SAP R/3. Later, in

March of 2003, SAPreleased SAP ERP, where many other SAP components wereincluded along with SAP R/3. Inside SAPERP, SAP R/3 enterprise was just a

component.

As you can see here, from this point on SAP ERP was more than just SAP R/3

Enterprise with SAPNetWeaver, since it offers many functional enhancements

like Self Services, self service procurement,internet sales, and SAP SEM. SAP Net

Weaver also contains the SAP Web Application Server. With SAPERP, a new

SAP solution was born.


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The SAP ERP Central Component or SAP ECC, is the evolutionary successor of

the previously offeredSAP R/3 Enterprise, and is the central core of SAP ERP.

Compared to the SAP R/3 Enterprise, in SAP ECC there are architectural changes

with respect toEnterprise Services Architecture, enhanced usability and newdeveloped functionality, like the newgeneral ledger.

SAP Business Warehouse, SAP Strategic Enterprise Management, and Internet

Transaction Serverintegrated into SAP ECC. Customers now have the option to

run these components on the sameinstance that runs SAP ECC to reduce the

system landscape and save costs. Running the componentson separate instances is

also possible. SAP Web Application Server contains all capabilities of SAPbasis as

well as additional web capabilities.

SAP ERP and SAP NetWeaver

Audio Transcript

SAP ERP is the result of an ERP offering to SAP R/3. SAP ERP includes all the

functionality of SAPR/3 Enterprise with the large number of additional business

processes like self service, strategicmanagement, and others. SAP ERP is an

integrated and personalized functionality. SAP ERP is builton the NetWeaver

technology. SAP NetWeaver is used as a technology platform for integration and

asan application infrastructure with open connections to Microsoft .NET andIBM WebSphere.

SAP ERP is a Solution within SAP Business Suite (image)

Audio Transcript

SAP Business Suite comprises SAP ERP, SAP PLM, SAP CRM, SAP SCM, and

SAP SRM.

SAP Business Suite is built on SAP NetWeaver. As you can see from this image,

the core component ofthe Business Suite is ERP. SAP ERP consists of: Life Cycle Data Management Quality and Asset Management Sales Order Management Internet Sales Inventory Warehouse Management Manufacturing and Transportation Purchase Order Processing.


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SAP ERP also supports mobile technologies featuring GPS and GSM-supported

service options forcollaborative businesses.

SAP ERP Solution Map (Image)

Audio Transcript

The slide here shows the solution map. As is the case with other SAP solutions, a

solution map showsyou the processes enabled by a specific solution. In the image

shown here, you can see varioushighlighted areas in different colors. These areas

indicate additional capabilities offered by SAP ERPas against those already

available to SAP R/3. For example, you have New General Ledger inFinancial

Accounting, E-Learning, and E-Recruitment in Work Force Process Management,

and Self-Service Procurement in Procurement.

Summary

We now come to the end of the topic on SAP ERP Positioning.

Organizational Levels

About This Topic

This topic describes the Organizational Levels which provide a framework

to support Business Processes in SAP ERP.

What's in it for me?

Describe the SAP enterprise organizational levels

Organizational Levels Terminology (image)

Audio Transcript

An Organizational Unit is a unit used to map an Organizational Structure of an

enterprise to the SAPApplication. Familiar terminology like Storage Location,

Sales Office, Profit Center, and Legal Entityare all represented by the team

Organizational Unit inside the SAP Application.

In the image here, the Organizational Unit CLIENT is the highest on the order

and is used torepresent the complete Enterprise.

Next would be the company code followed by Plant, Sales Organization, Division

and StorageLocation. The purpose of this hierarchy or Organizational Unit is to

avoid re-entering data more thanis required. For example, specifications or data

that is valid for all organizational units in all R/3applications can be entered at

the CLIENT level, eliminating the need to enter this information morethan once.A client usually represents a company in an SAP system.


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A company code is an independent legal accounting entity. An example would be a

company within acorporate group. Here company and subsidiary in SAP can be

called as company code. This isrequired for Financial Accounting.

Similarly, Plant is the central organizational unit for Production Planning and inthe context of Salesand Distribution, the Sales Organization is the central

organizational element that controls the termsof sales to the customer. Division is

usually used to represent a product line.

Organizational Levels (image)

Audio Transcript

In this image, you can see how Organizational Units are used to represent the

Enterprise Structure. Atthe highest level is the Client. This has two derivative

Company Codes, 1000 and 3000. Company Code1000 has two derivation Plants

under it, and similarly Company Code 3000 has one plant and oneControlling

area under it.

When you define the organizational units for your enterprise, please bear in mind

how you would likethe data to be entered, tracked, and extracted from the system,

as this is a representation of the existingbusiness processes.

Sales Areas image

Audio Transcript

Sales and distribution is organized according to the sales organization,

distribution channel and division. A combination of these three

organizational units forms the sales area. The sales organization is an

organizational unit within logistics that structures the company according

to its sales requirements.

A sales organization is responsible for the sale and distribution of goods

and services. The distribution channel represents the channel throughwhich saleable materials or services reach customers. Typical distribution

channels include wholesale, retail and direct sales. In the SAP ECC System,

you can define a division-specific sales organization. Product groups, or

divisions, can be defined for a wide-ranging spectrum of products. In this

image, you can see that in sales organization 1000, products of divisions 02,

03 and 05 are only sold through distribution channel 10.

Plants image

Audio Transcript


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Let us now look at what a Plant is in the Organizational Structure. A Plant

is an organizational unit defined in Material Management which represents

a location where stock of material is kept or manufactured. The assignment

of plants to company code can be n to 1.

This means any number of Plants can be assigned to one Company Code.

Here you can see plants 1000, 1100, 1200, 1300, and 1400 are all assigned to

the company code 1000. Any relevant company- code transaction from one

of these five plants is posted to company code 1000 in Accounting.

Purchasing Organizations image

Audio Transcript

Let us now look at a Purchasing Organization. A purchasing organization

is an organizational unit within logistics, subdividing an enterprise

according to the requirements of Purchasing. This Unit procures materials

and services, negotiates conditions of purchase with vendors, and bears

responsibility for such transactions. Each country in which plants operate

has one purchasing organization.

Hence, you will notice that Purchasing organization 1000 purchases for

plants 1000, 1100, 1200, 1300, and 1400, which are located in one country

and posts all the entries into the countrys company code in 1000.Summary

We now come to the end of the topic on Organizational Levels for ERP

Basics.

Master Data

About This Topic

This topic describes the Master Data that are needed to support Business

Processes in SAP ERP. Estimated time to complete this topic: 20 minutesWhat's in it for me?

Describe the functions of master data

Master Data: Customer Master image

Audio Transcript

Let us now understand what we mean by Master Data. Any data that has

to be used across several business processes and is consistent for longer

periods of time can be termed as Master Data in the SAP System. Master


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data is usually created centrally and is then available across applications

and users. For this slide, you will look at the Customer Master as an

example.

A customer master contains information that defines the businessrelationship between a company and its customer. The master contains

data that is required to execute key business processes between the

customer and the company. Example of such activities would include

customer requests, deliveries, invoices, and payments. The customer

master is organized into three views which are located at different

organizational levels.

General Data: which does not depend on the company code. This data is

entered at the client level.Financial Accounting Data: is relevant to Financial Accounting and applies

to one company code.

Sales Data: wherein data for one customer can differ for each sales area. As

you have seen earlier, the sales area is a combination of sales organization,

distribution channel and division. This data is only relevant to Sales and

Distribution.

Transactions ImageAudio Transcript

While Master Data refers to data that remains unchanged for longer

periods of time, transactions are application programs which execute

repeating business processes, referencing the master data, such as creating

a customer order, posting an incoming payment, or approving a leave

request.

Any transaction that has been executed in the system creates a document.

When these documents are created, they will automatically copy the

referenced predefined data from the master eliminating the need to enter it

again.

Process Overview: Purchase to Pay Image

Audio Transcript

Let us understand the business process flow from purchasing goods to

paying for the same. This is typically termed as the Purchase to Pay


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process flow. We will be referring to two courses, the MM or Material

Management Course and FI or Finance Course.

Order Requirement: The first step in the purchase to pay process is the

Order Requirement. Order Requirement can be done manually byregistering a requirement using Order Requirement. In the SAP ECC

system, the Order Requirement can also be automatically created. Note that

at this stage no postings are created in the FI course.

Order a Material: Next, in Purchase order process you order a material

by using a basic form of the purchase order document. While creating a

purchase order, data such as supplier, material, plant and any other data

relevant to the purchasing of an organization must be provided. In the SAP

ECC system, the purchaser can control or supervise the processing status ofthe purchase order. You can post the goods receipt or invoice receipt for

the concerned purchase order. This purchase order creation is handled only

in the MM course. In the SAP ECC system, no document is created in the FI

course during purchase order creation.

Good Receipt: Once goods are received after the purchase order is

processed, the system compares the goods receipt with purchase order

quantity. A goods receipt entry is passed in the MM course. Two

documents are created in real time in the system, one for the materialdocument and the other for the FI document. The material document is

created to update the inventory. In the FI course, values are posted by

debiting the Material stock account or the consumption account and

crediting goods receipt or the invoice receipt account.

Invoice Verification: The vendor invoice receipt is then verified during

invoice verification. All these purchasing processes are settled in the SAP

ECC system via Logistics. The vendor invoice is posted in MM and, in real

time, an FI document is created, by debiting the goods receipt or invoicereceipt account, and crediting the vendor account.

Payment: The final step is the payment process which is finally updated in

Financial accounting, with details like the payment methods and bank

settlement.

Process Overview: Order to Cash image

Audio Transcript


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Next, you will understand the Order to Cash process flow. A sales order

is the basis of the sales process. Let us understand with the help of two

examples: product sale ex-stock and sale of service.

Product sale ex-stock: In this process, a sales order is created for materialwhich is kept in inventory. Costs and revenues are derived automatically

from the material production costs or from the SD Course.

From the incoming order, you create the transport order, where in required

goods are removed from the stock and prepared for delivery. Then

outbound delivery document is created. The goods to be delivered are

posted as goods issue. At the time of goods issue two documents are

created. One in MM as a goods issue document and another in FI as an

accounting document. Billing is done only after the goods issue is posted.During billing an invoice document is created. Finally you come to

payment and dunning. When payment is received from the customer an

entry of receipt is posted in FI. If you have not received payments from

your customers by the net due date, the customers will be dunned.

Our second example is for Sale of service: - Here you sell a service. A direct

service generation process can also be displayed via a sales order item. The

sales order item is a cost bearer; in this case, you need to define Goods

lnward accounts in order to post the entries in to FI. All the other steps likeincoming orders, billing, payment are almost identical to the steps in sales

ex-stock.

Summary

We now come to the end of the topic on Master Data for ERP Basics.

Reporting Standards

About This Topic

This topic explains the Reporting and Analytical Solutions available in SAP

ERP, to support the internal and external reporting needs of an

organization.

What's in it for me?

Explain ERP analytical and reporting solutions

Data Warehouse Concepts imafge

Audio Transcript


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OLAP or Online Analytical Processing is an approach to quickly provide

the answer to analytical queries that are dimensional in nature. It is part of

the broader category of business intelligence. Typical applications of OLAP

are in business reporting for sales, marketing, management reporting,

business process management or BPM, budgeting and forecasting, financial

reporting, and other similar areas.

OLTP or Online Transaction Processing is a class of programs that facilitate

and manage transactionoriented applications, typically for data entry and

retrieval transaction processing. If you are using the transactions in the

Logistics applications, the Logistics Information System (LIS) updates

relevant information. You can also update information from other systems

in the LIS. The LIS aggregates and stores this information in the data

warehouse.

Distinction: Operative/Informative Environments image

Audio Transcript

This slide discusses some of the most important demands placed on a

modern data warehouse. Decision criteria for the efficiency of a data

warehouse solution are highlighted here.

SAP BW enables the analysis of data from operative SAP applications, aswell as, all other business applications and external data sources such as

databases, online services, and the Internet. The transaction-oriented

Online Transactional Processing, or OLTP and the analysis-oriented Online

Analytical Processing or OLAP environment must be seen as an integrated

entity.

Master data, and the business processes that result from it, produce a

multitude of information that cannot easily be used for target-oriented

analysis. Therefore, data is cleansed first and, because of the variety of itssources, it is prepared both technically and in terms of content. Knowledge

can then be generated from the analysis that follows. This knowledge helps

the organization to define its business strategy and supports the business

processes derived from it.

Summary

We now come to the end of the topic on Reporting and Analytical Solutions

for ERP Basics.

Module Summary


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The participant should now be able to appreciate the transition from R/3 to

SAP ERP, identify the various components of SAP ERP and describe the

various Organization Levels and Master Data which are needed to support

various Business Processes in SAP ERP. The participant should also be able

to describe the Reporting and Analysis solutions available in SAP ERP to

support various internal and external reporting needs of an organization.

terp01 sap erp introduction latest

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