Configuring SAP R/3

Presentation by
Raimundas MATULEVICIUS
& Darijus STRASUNSKAS

Literature: Nancy H.Bancroft, Henning Seip & Andrea Sprengel: Implementing

SAP R/3 – How to introduce a large system into a large organization

Configuration Concepts
v The SAP system is standard business software
package based on a data model.
v The SAP data model is implemented in relational
database systems such as Oracle or Informix.
v The software can be configured quickly if:
.
1 experienced support staff is available;
.
2 all business requirements have been defined and can
be met by the software.

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 The client Data
Structure

The client Data Structure

v Companies traditionally have built their own
proprietary systems responding to the unique
business requirements of their user community.
These requirements vary from company to
company in all areas except one: finance.

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 The client Data Structure
v Accounting firms, which maintain the financial
data of many large organizations, want to have
data structured in the same way, thus one
separate company must be maintained
independently of other data of other client.
v This triggered the development of client-oriented
system.
v A client-oriented system is a software package,
which has the ability to maintain and protect data
of different clients within the same database
using the same program code.
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The client Data Structure

v These environments can be set up within the same

physical SAP system, eliminating the need to
purchase hardware and software for each of them
individually.
v Technically a client-oriented system is
implemented by defining a client key for all data
tables, which should be separated by client.

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 The client Data Structure

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The client Data Structure

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 The client Data Structure
v In SAP the client concept is implemented for most
of the data tables.
One important exception: ABAP/4* programming
environment, which is called workbench. ABAP/4
programs are stored in client-independent tables,
which means that all clients have to share the same
programs.

* ABAP/4 - Advanced Business Application Programming/4. SAP’s fourth generation

programming language used to develop dialog applications and to evaluate databases.
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Architecture of SAP
applications
 Architecture of SAP applications
v There is a common architecture all applications share.
Common elements are called architectural elements:
.1 Central and client-independent functions
.2 Organizational elements
.3 Control elements
.4 Master data
.
5 Documents/operations
.
6 Reports

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Architecture of SAP applications

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 Architecture of SAP applications
v Client-independent function, central function,
organizational elements, and control elements are
software functions within the SAP system used to
configure and program it to a company’s
requirements.
v The architectural elements – master data,
documents/operations, and reports – are the SAP
functions used by the end user who is working
with the system on a daily basis.
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Architecture of SAP applications

The project team works with:
v the Business Engineering function, manipulating
the configuration tables.
v a tool called Implementation Management Guide
(IMG) to configure each application by selecting
parameters and assigning the table.

The team can store the parameters setting in the

project documentation with the project history.
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 Architecture of SAP applications
v The ABAP/4 Developers work with the ABAP/4
Workbench to create reports and new customer
applications.
v To test configuration, the project team also creates
master data and documents.
v Once the customization process is complete and
the R/3 system goes live, the business work only
with the function provided by the SAP applications.

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Tables and Data Types

 Tables and Data Types

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Application data
 Application data
v Application data tables contain either master data or
transaction data.
v Transaction data is used only once.
v Master data is used multiple times after it has been
created.
v The majority of transaction data is derived from master
data at the time of transaction.
v This composition results in a transaction and is called a
document by SAP.
v A document ties together all data of the transaction.
v A transaction is unique and gets document number
assigned by the SAP system.
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Application data
Document number

Master data
Master data

Master data Transaction data

Transaction data
Master data

Master data
Master data
Transaction data
Transaction data

Transaction data

Master data

Transaction data
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 Configuration Data

Configuration Data
v The adaptation of the SAP R/3 system to your
business requirements is a key process in the
SAP project:
.
1 Create the companies’ organizational structure
.
2 Change table entries for validation
.
3 Change a business process in its flow
.
4 Change the characteristics of a business transaction or
business function
.
5 Change report selection, displays, summation levels
.
6 Change screens
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 Configuration Data
v The degree to which this adaptation can
performed through configuration depends on the
flexibility of the specific application and the type
from the business since the configurability has its
limits.

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Configurable Elements
 Configurable Elements
v The configurable elements, which are accessed
through the IMG, are:
.
1 central functions;
.
2 organizational elements;
.
3 control elements;
.
4 data validation;
.
5 and system control.

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Central Function
 Central Function
v When a project team starts to configure the SAP
system, it first describes its current environment.
The country in which the
company is legally
The currency used and registered.
the exchange rates with
other countries.

What calendar is used.

Which rounding rules

are applied when dealing
with currency.
Which units of measure
are being used for
products and services.

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Central Function
v Mapping process means to match the existing data
fields of your legacy system with the fields
available in the SAP. This is a very important
process since you will be laying the foundation for
moving your existing data into SAP system.

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 Organizational Elements

Organizational Elements
vA company can be described by its organizational
elements, that is, the entire company, a department,
a division, a plant, or a subsidiary.
v Later, all company master and transaction data will
be linked to these organizational elements.
v Organizational elements are defined in the
corporate structure of the enterprise IMG.
v SAP uses its own language to name things.

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 Organizational Elements
v The company description is configured by these
SAP org. elements:
v control area,
v functional area,
v plants,
v sales organization & etc.

v These elements are parts of the description of the

company which is then by entering the respective
data of your company into the appropriate tables.
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Organizational Elements

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 Organizational Elements
v It is not necessary to define all organizational
elements provided by SAP. But some
organizational elements are mandatory. For
example:
.1 Company code, which defines the company as a
legal entity and separates the general ledger accounts
from accounts of other companies.
.
2 If you are selling products or services you must
define a sales organization, a division, and a
distribution channel.

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Organizational Elements

vAfter entering all elements

the assignment have to be
done.
vThat is, you have to tell the
system how the organizational
elements (tables) which you
define, relate to each other

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 Organizational Elements
Structuring the company into five sales
organizations will request necessity to go through
the assignment screen of SAP for these two
organizational elements five times.

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Organizational Elements
v The definition of the organizational elements for
your company and their relationships is known as
the SAP hierarchy.
v The project team is determines how company’s
organization is structured and, by this definition, is
created or limited the flexibility of the overall
system for your company.

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 Control Elements

Control Elements
v Configuration table define and control documents
and the way data can be entered into these
documents. They are referred to as control
elements and take various appearances depending
on the application.
v The project team will define what fields are visible
on the screen for a particular user or what number
ranges can be entered by a user.

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 Control Elements
v In R/3 a document is composed of master data and
additional input. The composition is assigned a
unique number by the SAP system at the time of
creation to identify it throughout the existence of
the SAP installation.
v The programs and configuration tables used to
configuration documents are called control
elements.

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Data Validation
 Data Validation
v Tables used for data validation are simple
configuration tables used to maintain text
information that appears as straight output only.
This means that no calculation or any other
manipulation of the information in these tables is
performed in order to display the information on
the screen or on a printed document.

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Data Validation
v These tables only contain a key and an associated text,
which appears in the document.
v The R/3 system uses the key in order to determine the text.
v Project teams can easily extend these tables to satisfy their
requirements.

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 System Control

System Control
v System control tables are used to configure the
Basis System of R/3.
v This includes the ABAP/4 development
environment, user authorizations, printer setup,
and others.
v These tables are maintained by the system
administration.

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 Configuring an SAP Document

Configuring an SAP Document (1)

During configur ation of a document type there are often

information items, which are automatically generated on
creation of a document.

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 Configuring an SAP Document (2)
Creating a sales document in the SAP system user has to
enter the following information into SAP screen:
.1 Document type (sales order, quotation)
.2 Customer (sold-to party)
.3 Sales area (sales organization, sales channel,
division)

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Configuring an SAP Document (3)

There are six types of information on a sales document ,
which can be generated automatically:
. 1 Price
. 2 Tax
. 3 Material
. 4 Business partners
.5 Output
.6 Text

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 Configuring an SAP Document (4)
v In the IMG*, SAP provides the necessary configuration
tools to set the parameters.
v All steps to determine the data appearing on the screen (for
example price) within a document during its creation or
change are called a determination procedure in the IMG.

IMG* - Implementation Management Guide is an online

documentation tool that steps the project team through the
implementation process.

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Configuring an SAP Document (5)

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 Configuring an SAP Document (6)

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Configuring an SAP Document (7)

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 Configuring an SAP Document (8)
The SAP system comes with:
v about 30 standard price determination procedures - for
customization a project team should select the procedure
which closest matches the requirements.
v over 100 standard condition types, which may be used as
templates.

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Working with Master Data

 Working with Master Data (1)
v Users may have to maintain master data in their daily
work.
v The creation of master data is not part of the configuration
process and should not be confused with it.
v Responsibility for the maintenance of master data is
assigned to departments by defining the appropriate
authorization.
v Since master data is the primary source for transaction
data, it has to be dealt with carefully.

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Working with Master Data (2)

Example of master data:
Area Master Data
Accounting G/L accounts
Asset management Asset
Controlling Cost elements, cost centers
Material management Materials
Sales Customer
Purchasing Vendor
Human resources Employee
Production Work center, routings
Plant maintenance Plant
Warehouse Storage bins
Projects Work breakdown structure

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 Working with Master Data (3)
v Dealing with master data can become complex depending
on the aspects of its use. Employees of different
departments often have a different perspective on the
same data.

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Working with Master Data (4)

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 Working with Master Data (5)
The most complex master data structure in the SAP
system is the material master.

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Working with Master Data (6)

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 Working with Master Data (7)
v The number of data items in the material master file is
very large.
v It is the heart of the SAP system.
v Once it is set up correctly, the various user groups can
easily use it.

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Working with Documents

 Working with Documents (1)
The term working with documents means to execute a
business transaction within the SAP system.
v A document contains header and item information.
v The header contains the document number and context
information for the transaction while the line items specify why
the transaction takes place.
v The line items specify the article bought from the vendor / sold
to the customer.

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Working with Documents (2)

v In areas, which are production-related, SAP uses the term
operation instead of line item.
v In production planning, an operation is a processing step
within the context of a production plan for a specific
product.
v In the plan maintenance application, the equipment is
maintained through operations which are performed by a
service technician.

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 Working with Documents (3)
v The main source for transaction data within a document
is the master data.
v The master data is retrieved from the master tables and
manipulated by the SAP programs before it appears on the
screen.
v The user has the ability to further change some of the data
items (manual override) before he or she stores the set of
data items as a document.

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Working with Documents (4)

v Depending on the configuration, either the SAP system
assigns a unique document number or the document
number is manually assigned by the user.

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 Working with Documents (5)

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Working with Reports

 Working with Reports (1)
vWithin every application, SAP gives the user the
capability to select from the menu standard reports,
which display information about a certain subject.
v Online reports are executed and produce results on the
screen while the user waits for them.
v Batch reports are like online reports except their
execution is scheduled for a later time. They are placed
into a queue to wait for their execution.

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Working with Reports (2)

Whether user should execute the report online or in batch
depends on the runtime of the report itself. The runtime
depends on the complexity of the report and the amount
of data that has to be processed.

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 Working with Reports (3)
v The simplest report is straight list, which can be
displayed on screen, printed and/or sent via email to
another user.
v A more sophisticated approach is the type of report
where the layout is configured by the project team:
v The user may select from different report display variants.
v In these types of report the user can also restrict the selection of
items he or she wants to appear in the list.

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Working with Reports (4)

v The report is a list of SAP objects which can be
manipulated directly by double click on specific data
element. When selecting:
v a sales document number, the user branches info the
maintenance transaction of the contract.
v a equipment number, the user branches into the maintenance
transaction of the equipment.
v a customer, the user branches into the customer maintenance
transaction.
v In addition, data can be summarized directly on the
report.

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 Working with Reports (5)
v The interactive reports give even more flexibility to the
user. These reports give users direct control over how the
data appears on the screen:
v User can directly change the sort sequence or the displayed
columns, and generate graphics from the data, or branch into
transactions related to the data on the screen.
v Columns can be hidden or additional columns can be displayed
as part of the report.

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Working with Reports (6)

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 Summary
v Understanding basic IT concepts becomes more and
more important for business departments.
v Configuration of SAP is very complex due to the
flexibility the package provides.
v Functions and processes, which are relatively easy to
configure can also be maintained by the key user in the
business departments.
v Traditionally, IT’s role was to coordinate the
integration of software functions and, with this, the
integration of business process.
v Business users must understand how their software
tools work in order to apply them most effectively.
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Configuring SAP R/3

Presentation by
Raimundas MATULEVICIUS
& Darijus STRASUNSKAS

Literature: Nancy H.Bancroft, Henning Seip & Andrea

Sprengel: Implementing SAP R/3 – How to introduce a large
system into a large organization