SAP – System Applications and Products in data processing

SAP has 4 Core Modules

1. FICO (Finance & Controlling) – Finance
2. MM (Materials Management) – Procurement
3. SD (Sales and distribution) – Sales & Distribution
4. PP (Production Planning) – Manufacturing

5. HCM (Human Capital Management) – HR Module

200+ modules

MM – WM – EWM
SD – LE – TM
FICO – TRM
4 Modules are prepared considering all the Industry verticals
1. Automotive
2. Manufacturing
3. Agri Business
4. Airlines
5. Retail
6. Oil & Gas
7. Energy sector & Utilities
8. Service Industry (Hotel, Hospital etc)

IS –Specific (Industry Standard Specific)

IS - Automotive will only have automotive related configuration.

ECC – Enterprise Central Component

 V3, V4, V4.7, V6.0 EHP
V – Version
V6 EHP1, V6EHP2, V6EHP3……EHP7
Version 6 Enhancement package 1

SAP

Database Vendors
Oracle DB
IBM Mainframes
SQL – Sequel data base

HANA DB
S4 HANA =
ECC 6.0 + EHP + HANA BASE

2015 – S4 HANA 1511 (15 – YEAR, 11 – MONTH)

2016 – S4 HANA 1610
2017 – S4 HANA 1709
2018 – S4 HANA 1809
2019 – S4HANA 1909
CLOUD VERSION
GOOGLE CLOUD
AMAZON WEB SERVICES
MICROSOFT AZURE
SAP CLOUD

CLOUD – PUBLIC CLOUD / PRIVATE CLOUD

HISTORY
6 GERMAN SCIENTISTS WHO WERE WORKING WITH IBM RESIGNED FROM IBM AND
ESTABLISHED SAP.

SAP REVENUE – MAXIMUM REVENUE IS SENT ON R & D.

15 R & D
S4 HANA 2010 – (YEAR 2020 AND MONTH 10)
25 + YEARS

SAP RIVALS
 ORACLE
 BAN
 PEOPLE SOFT
 MICROSOFT DYNAMICS
 RAMCO

85 % INDUSTRIES IN WORLD PREFER SAP.

ORGANISATION STRUCTURE
- COMPANY (RELIANCE GROUP), Company is called Client.
- COMPANY CODES (JIO, RIL)
- PLANT
- STORAGE LOCATION
- WAREHOUSE
- PURCHASE ORG
- SALES ORG
- DISTRIBUTION CHANNEL
- DIVISION
t-codes – transaction codes
ERP – ENTERPRISE RESOURCE PLANNING

SAP ORGANIZATION STRUCTURE.

 1. COMPANY – HONDA LIMITED [ Company speaks about global market] – Company
sometimes also called as client in SAP terminology.
2. COMPANY CODE – Honda India Limited [ Company Code Speaks about country
specific market]
3. Plant – North Honda Plant, South Honda Plant, East Honda Plant, West Honda Plant.
4. Storage Location - Storage location is created with in the plant
5. Purchase Org: - Where procurement activities take place.
6. Shipping Point: - Where Goods are distributed through outbound/Inbound

N E W S

Vendor (Mumbai) – CEAT Tyres

1000 – N 2000 INR
1000 – S 1800 INR
1000 – E 2500 INR
1000 – W 1000 INR

Price in the plant is valuated at Plant level.

Nagpur – 1500
Valuation Price is based on plant level
Purchase Org is classified into three different types
1. Central Purchase Org – The Procurement activities for all the company code within
the company is take care by central purchase org.
2. Company code specific Purchase org – The procurement activities within the
company code is taken care by company code specific purchase org.
3. Plant Specific Purchase org.
Purchasing group – Group of Purchasing team who procure the stock t
Configuration –
 1. Base line configuration – SAP FICO/SD/MM/PP/HCM (Complete org. structure is
defined in the baseline configuration)
2. Functional Configuration – Module Specific configuration. First we have configured
baseline and then only we can configure functional configuration.
3. Technical Configuration – SAP ABAP Programming is used in the technical
configuration. It is taken care by Technical team.

SAP Consultants
1. Functional Consultants – MM, PP, FICO, SD, HCM
2. Technical Consultants – SAP ABAP, SAP PI
3. System Administration – SAP BASIS.

1 Functional Consultant there will roughly 2 ABAP’r

SALARY – FC – 5L. TC – 3L
Main T-code- SPRO (SAP PROJECT REFERENCE OBJECT).
SAP Has two types data.
1. Master Data – The data which cannot be changed frequently is called master data.
2. Transaction Data – Day to day transaction with in the sap system is called transaction
data

Procurement Cycle
1. Mobile (Demand) - IPhone (Max 10000 INR)
2. Amazon, Flipkart, Local Stores (Croma, Reliance Digital, Future digital)
Amazon – 9800
Flipkart – 10000
Croma – 9500
Reliance Digital – 9800
Amazon – 9800/-
Shopping at Amazon. – COD
Delivery of the Mobile
Invoice
Payment.

Demand/Need - PR (Purchase Requisition)

Prices from different vendor (Quotation/RFQ – Request for Quotation )
Prices comparison (Quotation maintenance and comparison)
Vendor Finalization
PR
RFQ
Quotation maintenance and Vendor Finalization
Purchase Order
Goods Receipts
Invoice
Settlement.

IMG – Implementation Guide

SAP architecture is 3 Tier (3 Servers)
1. Development Environment -
2. Quality Environment
3. Production Environment
Development Environment: -
1. Configuration
2. Master Data
3. Transaction Data

Creating something new which creates a request in SAP system is called configuration
Example: - Baseline configuration, Functional configuration.
Company, co_cd, plant, storage location, Pur.org, shipping points etc
Document Configuration, creating new business scenarios
PO, PR, RFQ, INVOICE
ASAP METHODOLOGY – Accelerated SAP Methodology – Water fall method.
1. Project Preparation
2. Business Blueprinting
3. Realization
4. Data migration and Go-live or Final Preparation.
5. Hyper care

 BUDGET is decided
 Cost of SAP Application
 Cost of SAP Implementation
 Other Expenses

AS – IS = Existence Process
TO – BE = New Process (SAP Process)
Testings
UNIT TEST (Positive Testing, Negative Testing) – Development Server
SYSTEM INTEGRATION TESTING (Regression Testing) – QA Server
USER ACCEPTANCE TESTING – QA Server

Realization
1. Configuration (Baseline, Functional, Technical Config)
2. Testing’s

WATERFALL METHODOLOGY (OLD)

ACTIVATION METHODOLGY (AGILE METHODOLY) - NEW
DATA IN SAP IS STORED IN TABLES.

IDES – International Demo Educational system.

 Enterprise Structure is Baseline Configuration.
Functional Configuration
1. Material Master Setup
2. Vendor Master Setup
3. Purchase Info Record
4. Source List
5. PR/RFQ/Contract/PO Document type setup

First four in the list is Master Data setup.

To setup master data we have do some configuration.
Documents/Number range setup falls under configuration.

Material Master
1. What is material Master
It is a master data which describes about the object.
Ex: -
Car – Tyres, Steering, Engine, Glass, Sofa, seats, horn, petrol tanks
Tyre is a material – Material Master

It is a common data shared by various departments in a company, this is not often

changed.

Tyre –

Material master is set of properties of material stored in the SAP system.

1. Lorry tyre – height, Width, Rubber quality,

Material master two things
1. Material Code and material code will have description and its properties assigned.
Define the length of the material Code
ECC – 18 Digits
1. Define Output Format of Material Numbers (OMSL)
2. Maintain Company Codes for Materials Management (OMSY)
3. Define Attributes of Material Types (OMS2)
4. Define Number Ranges for Each Material Type (MMNR)
5. Define Material Groups (OMSF)

000000000000000000
For ex:- 123456789123456789 – Glass
This 18 digits can alphanumeric, Alphabetical, numeric
000000000000000001 – Engine – leading zeros
Lexographical – 1 – engine
 Lexographical or leading zeros

Material type
10000000000000000
10000000000000001
19999999999999999
Grouping material with similar properties together
1. Material type
2. Material Group

Various Material Types

1. DIEN – SERVICES
2. ROH – Raw Material
3. FERT – Finished Products
4. HALB – Semi finished Goods
5. ERSA – Spare Parts
6. FRIP – Perishable Goods
7. HAWA – Trading Goods
8. KMAT – Configurable Material
9. PIPE – Pipe Line Material
10. VERP – Packaging Materials
11. FGTR – Beverages

12. LEIH – Returnable Packaging

13. NLAG – Non Stock Materials

01 – Creation
02 – Change
03 – Display
Creation of Material – T-code – MM01
Change of Material – T-code – MM02
Display of Material – T-code- MM03
Vendor Master – Vendor is also known supplier of Materials (RM/SFG) etc.
To Create a Vendor, we have to perform customization and then we create a vendor
record.
1. Vendor Account Group –
2. Assignment of Vendor Account group to a number range.

Vendor Partner Functions

1. Ship to party - Uncle
2. Payee – Avinash
3. Sold to party – Ashish

Vendor creation/Change/Display T-Codes

1. XK01 – Creation of Vendor Centrally
2. XK02 – Change of Vendor Centrally
3. XK03 – Display of Vendor Centrally
1. FK01 – Creation of Vendor (only Finance data)
2. FK02 – Change of Vendor (Only Finance data)
3. FK03 – Display of Vendor (Only Finance Data)

1. MK01 – Creation of Vendor (Only Purchasing Data)

2. MK02 – Change of Vendor (Only Purchasing Data)
3. MK03 – Display of Vendor (Only Purchasing Data)
Vendor Partner Functions

SD Partner Functions
Partner Functions
Sold to Ashish
Ship to Bharath
Bill to Ashish
Payee to Avinash

MM Partners Functions
VN – Vendor
OA – Ordering Address
GS – Goods Supplier
IP – Invoice presented by

Vendor is a person who is responsible for supplying material/stock to the company

OA – Ordering address is where the goods/materials to be supplied for
GS – Goods supplier where vendor will supply the goods
IP –

Volkswagen - Headquartered at Germany (Vendor)

Volkswagen India – Address for where stock Is being delivered (OA)
Volkswagen China – Goods Supplier
Volkswagen US – Invoice presented.
Amazon (Vendor) –
Amazon India (Ordering Address)
Mahesh Fashions - Warora (Goods Supplier)
Mahesh Fashions – Chandrapur (Invoice Presented)

1. Create Partner Roles

SPRO  Materials Management  Purchasing  Partner Determination  Partner Roles
 Define Partner Roles

Create/check VN, OA, GS, IP

 2. Define Permissible Partner Roles per Account Group
SPRO  Materials Management  Purchasing  Partner Determination  Partner Roles
Define Permissible Partner Roles per Account Group

3. Define Partner Schemas

SPRO  Materials Management  Purchasing  Partner Determination  Partner Settings
in Vendor Master Record  Define Partner Schemas
Click on new entries
Enter the Vendor partner schema name
Now select the Schema and double click on the Partner Functions in procedure
Enter Vendor (VN), Ordering Address (OA), Invoice Presented (IP) and Goods Supplier (GS)
and then select the no change and mandatory button for OA and VN as below.

4. Assign Partner Schemas to Account Groups

SPRO  Materials Management  Purchasing  Partner Determination  Partner Settings
in Vendor Master Record  Assign Partner Schemas to Account Groups.
Tyres
VN – Ashish Industries
Subsidory Factory – Avinash Manufacturing Facility.
Akshay Manufacturing Facility
Kunal Manufacturing Facility

Finance – Ashish Finance

Address to order – Ashish Industries

Vendor – Ashish Industries

GS – Avinash Manufacturing Facility
IP – Ashish Finance
OA – Ashish Industries
Purchase Info Record (PIR)
PIR is created in the combination of Material, Vendor and Plant.