Right Solution, Right Time, Right Price

R/3 Overview

Purpose of Overview
Provide an introduction to the SAP R/3 system Explain the systems functionality Introduce SAP R/3s approach to business processes

SAP R/3 Pre-Configured Client (PCC)

SD
Sales & Distribution

FI
Financial Accounting

MM PP
Materials Mgmt. Production Planning

CO
Controlling

AM

R/3
Client / Server
PM HR
Human Resources

Fixed Assets Mgmt.

QM
Quaity Manage-ment

PS
Project System

Plant Main-tenance

WF
Workflow

IS
Industry Solutions

SAP R/3 Application Modules

Sales and Distribution (SD)
The SD application module helps to optimize all the tasks and activities carried out in sales, delivery, and billing.
Quotation processing Sales order processing Delivery processing Billing Reporting

SAP R/3 Application Modules

Materials Management (MM) The MM application module supports the procurement and inventory functions occurring in day-to-day business operations.
Material procurement Reorder point processing Inventory management Invoice verification Material valuation

SAP R/3 Application Modules

Production Planning (PP) The PP application module is used to plan and control the manufacturing activities of a company.
Bills of Material (BOM) Routings Work centres Master Production Scheduling (MPS) Material Requirements Planning (MRP) Production Planning Execution Production orders Product costing Repetitive manufacturing

SAP R/3 Application Modules

Financial Accounting (FI)
The FI application module is designed for automated management and external reporting of general ledger, accounts receivable, accounts payable, and other subledger accounts with a pre-defined chart of accounts.
General ledger Accounts payable Accounts receivable Special Purpose Ledger

SAP R/3 Application Modules

Controlling (CO) The CO application module represents the companys flow of cost and revenue CO is a management instrument for organizational decisions
Cost centre accounting Internal orders Product costing analysis Profit centre accounting

SAP R/3 Application Modules

Asset Management (AM) The AM application is designed to manage and supervise individual aspects of fixed assets
Traditional asset accounting Asset replacement Depreciation Capital orders

Benefits of the system

SAP
Integrated

SAP and Integration

The value of Integration: Integrated systems enable simplified business processes, standard data definition, and a common business language Simplified business processes enhance productivity to allow focus on value added activities Data has to be entered only once and all related information is updated automatically Integrated applications instill confidence in information and eliminates need for redundant analysis and reconciliation

Integrated & Process Driven

Purchas e Order Goods Receipt Manufacture Product Delivery

MM, FI, CO, PP

MM, FI, CO, QM

MM, FI, CO,

MM, SD, FI, CO

SAP
Enterprise-Wide

This means that if fully implemented, it is able to run the business, all processes and procedures. Even if your business is geographically spread out, SAP is able to operate across the physical distance seamlessly.

SAP
Best Business Practices

SAP utilizes known and proven business and industry practices to achieve its goals. The developers have tried to include as many generic processes that would cover the entire business cycle that a company may require in all of its day-today operations.

SAP
Multi-Currency

SAP is able to use different currencies at the same time. SAP uses a table of currency rates that may be updated by the firm at any time, as often as required, to translate transactions entered in one currency to another. Once a company is set up, it is given a home currency in which it stores its amounts. Other currencies may be used in the entering of business transactions (eg. invoice entry), but they are translated internally automatically into the home currency. Any changes in currency valuation are also picked up and the necessary gain or loss on currency valuation accounts updates automatically.

SAP
Multi-Lingual

SAP is multi-lingual ie. you can have different users logged onto the same system in different languages all at the same time.eg. A SAP system implemented in Montreal, Toronto and Mexico City can be used simultaneously in French, English and Spanish. The system has a built-in language translator that will translate items into the desired language, automatically. When logging onto the system, a user is asked which language he/she would like to work in. A default language is normally set when the system is installed.

Secure Information

SAP

The SAP system uses different levels of security to ensure that its data is kept secure. User sign-on and passwords are the first level. Authorizations allowing entry into only certain screens and the type of access onto certain screens form the next tier. eg. a user may have entry access to the invoice screens, but he may only display invoices and not add, change or delete invoices. Users with like access requirements are grouped together using profiles. Profiles themselves may be grouped together forming composite profiles. The third level of security is field level security. Various screens can be customized to allow access to certain fields where data can be entered and other fields that are display only.

SAP GUI: Graphical User Interface

Operates on the WYSIWIG principal (What you see is what you get). It is a point & click system.

Concepts and Features System-wide Concepts System-wide Features are used to logically, safely, and flexibly organize the data a business uses Organizational Elements Master Data Security

Organizational Structure
The fundamental data and functional architecture of the R/3 system... Defines the legal and organizational structure of a company from different points of view Includes flexible organizational units for creating a comprehensive company structure Links different application areas in the R/3 system to create an integrated company structure
The different points of view include: Financial Accounting, Materials Management, and Sales and Distribution.The process of determining the organizational structure is critical to the SAP implementation project. Everything depends on the hierarchy decisions that are made.

Master Data
Customer Master Purchasing ?

Vendor Master
RFQ

Quotation

Vendor

G/L Account Master

Client

Chart of Accounts A

G/L Account Bal sheet acct Account group . .

BANK X FIN.

Chart of Accounts B

Material Master
Company Codes
CC 0001 Currency Line item Display . . USD

CC 0003 Currency Line item Display . . CAD

The Material Master

SAP R/3

Purchasing

Material Master Record Central repository of material data for all areas within logistics: Finished Products Semi-finished products Raw materials Consumables Marketing Materials

Sales Order Processing

1998

Invoice Verification

Production Planning

Inventory Management

System-wide Features
Security:
Profiles Objects Authorization

Objects describe various business and system-related groupings such as accounting documents, customer and vendor accounts. Profiles are a collection of objects used to control system access privileges. Security authorizations assign profiles to users to determine what privileges they have within an object or group of objects. You choose relevant profiles for your users from the delivered SAP profiles. Users may access only the objects assigned to them.

Authorization Groups
There are pre-defined authorization groups which have been established for the PCC. The pre-defined authorization groups are based on roles and responsibilities. They are for unit and integration testing They can be modified to meet your needs (new hires, responsibility etc.)

SAP Reporting
SAP Standard Reports?

Business Process Overview

5 A C C O U N T I N G
Sales Processing

1
Forecast

2
Material Requirements Planning
Capacity Req. Planning

Demand
Independent Requirements

Purchase Orders
Dependent Requirements

Production Orders

3
Purchasing Requisitions Purchase Orders Goods Receipt

Planned Orders

4
Production Orders Raw Mat. Goods Issue Finished Goods Receipt

Warehouse

ERP : Overall picture by computerized functions

DISTRIBUTION

ACCOUNTING

MANUFACTURING

HUMAN RESOURCE

Business Process Versus Computerized Functions

FI& CO A C C O U N T I N G
Sales Processing

Forecast

SD
Material Requirements Planning
Capacity Req. Planning

Demand
Independent Requirements

MRP
Dependent Requirements

Purchase Orders

CRP
Planned Orders

Production Orders

Purchasing Requisitions Purchase Orders Goods Receipt

PO

Production Orders Raw Mat. Goods Issue

PP

IM
Warehouse

IM

Finished Goods Receipt

Expected Benefits of ERP

Top Management
Simulate the Future before making a Decision Operate on One Game Plan Improved Performance Reporting

Engineering
A Simple way to tie Engineering and Manufacturing Priorities Improved Design Control

Sales and Marketing

Better Customer Deliveries through Improved Planning More Accurate Delivery Promises

Expected Benefits of ERP

Purchasing
A way to reduce expediting , and concentrate on sourcing and negotiating Improved request control and approval

Manufacturing
A way to Have All the Facts when faced with though decisions A way to plan ahead, rather than expedite a losing battle

Expected Benefits of ERP

Finance
Integrated Operating and Accounting Data. Improved Data Accuracy

Personnel
A way to reduce on-the-job frustrations associated with constant expediting A Chance for everyone to see their efforts count A move away from numbers posting to a setting of achievable plans

ERP : Overall picture by computerized functions

DISTRIBUTION
(Sales, Distribution, Inventory Purchase, etc)

ACCOUNTING
(General Ledger, Account Payables, Account Receivables, Asset,etc)

MANUFACTURING
(Material Requirement Planning, Capacity Requirement Planning, Shop Flor Control, etc)

HUMAN RESOURCE

Main SAP Modules and Integration

- Sales & Distribution

SAP R/3 Functionality - Sales and Distribution

SD
Sales & Distribution

FI
Financial Accounting

MM
Materials Mgmt.

AM
Fixed Assets Mgmt.

PP
Production Planning

R/3
Client / Server ABAP/4
OC IS HR
Human Resources

CO
Controlling

QM
Quality Mgmt.

PS
Project System Office Comm

PM

Plant Maintenance

Industry Solutions

Business View - Sales Cycle

Sales Order

Receive Payment

Credit Check

Goods Issue

Billing Document

SAP R/3 Functionality - Sales and Distribution

Master data
S A L E S I N F O S Y S T E M Sales Support
Competitors Sales activities Direct mailing campaigns

Business partners Material Bills of material Product proposals

Sales
Customer inquiry Customer quotation Order processing Orders Scheduling agreements Contracts

MM PP PM CO FI PS

Customer-materialinfo record
Equipment Classification Texts

Materials Management Production Planning Plant Maintenance Controlling Financial Accounting Project System

Shipping
Picking Packing Transportation
FI

MM

Conditions
Sales taxes Statistics

WM

Inventory Management Creditworthiness Warehouse Management

Billing
FI

Single invoice Collective invoice Invoice list Credit/debit memo

CO

PA

Accounts Receivable Controlling Profitability analysis

SAP R/3 Functionality Sales and Distribution Integration

SD Business Process Flows in SAP Order Processing
SD
Inquiry Quotatio n Order Delivery Goods issue Billing documen t

Sales orders Update demand Management

ATP Update Update Financials

Run MPS/MRP

PP
Inventory Management

FI/CO

MM

Main SAP Modules and Integration

- Material Management

SAP R/3 Functionality - Material Management

SD
Sales & Distribution

FI
Financial Accounting

MM
Materials Mgmt.

AM
Fixed Assets Mgmt.

PP
Production Planning

R/3
Client / Server ABAP/4
OC IS HR
Human Resources

CO
Controlling

QM
Quality Mgmt.

PS
Project System Office Comm

PM

Plant Maintenance

Industry Solutions

Business View - Procurement Cycle

Purchase Requisition Request For Quotation

Vendor Payment

Purchase Order

Invoice Receipt

Goods Receipt

Business View - Goods Issue

-----

From Warehouse Goods Issue From Consignment Stores

Consumption Cost Centre Asset Sales

Issue Sample Scrap

SAP R/3 Functionality - Material Management

MRP
BOM Lot-sizing
FI
PP PP SD

Production Planning Sales & Distribution

Master data
L O GI S T I C S I N F O S Y S T E M

Purchasing

Financial Acctg. Production Planning Controlling Fixed Assets Mgmt.

Requisition
Order Creation Invoice verification
CO AM

Vendor data Material Material types Bills of material Product proposals Equipment Classification Texts Conditions Purchasing info records

Receiving
QA Inspection
QM

FI PP

Financial Acctg. Production Planning Quality Mgmt.

Inventory mgmt.
FI

Cycle counting Physical inventory Movements

PP CO QM

Financial Acctg. Production Planning Controlling Quality Mgmt.

Valuation

Warehouse mgmt.

SAP R/3 Functionality Material Management Integration : Purchasing

MRP Planned Order RFQ (Request For Quotation) Purchase Requisition Manual Creation

Purchase Order

Goods Receipt Update Financial (see the Example slides)

Invoice Verification

M a t e r i a l M a s t e r

SAP R/3 Functionality Material Management Integration : Material Master

Production Planning

Sales & Distribution

Inventory Management on a Quantity & Value Basis Purchasing

Production

Material
Product Costing Quality Management Plant Maintenance

Invoice Verification Material Requirements Planning

SAP R/3 Functionality Material Management Integration : Goods Issue

Material

----- ------ ----------- - ----- -------- ------- ---------

MateriaL

Reservation Accounting Document Posting of Goods Issue Material Document

Stock quantity Consumption statistics ...

Point of Consumption (CO Module): Cost centre Order ...

G/L accounts (GL Module): Stock account Consumption accnt.

Consumption 80.00

Inventory 80.00

Main SAP Modules and Integration

- Production Planning

SAP R/3 Functionality - Production Planning

SD
Sales & Distribution

FI
Financial Accounting

MM
Materials Mgmt.

AM
Fixed Assets Mgmt.

PP
Production Planning

R/3
Client / Server ABAP/4
OC IS HR
Human Resources

CO
Controlling

QM
Quality Mgmt.

PS
Project System Office Comm

PM

Plant Maintenance

Industry Solutions

Business View - Production Cycle

Sales Order or Sales Forecast

Finished Goods Issued for Sales

Production Planning (Material, Capacity)

Finish Goods Received to Store Material Issued from store

Production Control

SAP R/3 Functionality - Production Planning

Master data
P R O D U C T I O N I N F O S Y S T E M

Sales & Operations Planning

Product Group Sales Plan

SD

Sales & Distribution

Material Bills of material Work centers Routings Documents Production resources/ Tools(PRTs) Inspection plan/ characteristics

Production Planning/MPS
Master Production Scheduling

MRP
BOM Material Requirement Planning Capacity Evaluation Capacity Dispatching and leveling
MM FI

Capacity Planning
Financial Acctg. Inventory Management Warehouse Management Controlling Quality Mgmt.

Production Activity (Shop Floor) Control

Production Order Creation Production Order Confirmation

CO QM

Product Costing

SAP R/3 Functionality Production Planning Integration

Production Planning in SAP R/3

Organization Structure for Production Planning

Basic Client Holding Data Company Company Code Legal Reporting Plant MRP Productio DATA n Site Storage LocationStorage Inventory Data Management

Material Master
CO

(See next Costs Calc. CO Planned Order Page) Order Proposal Order creation Availability check
MM Manual/Automatic
Rough Cut Planning Sales Plan
Transfer Stock Requirements Overview

In-house Production
MM Stock Items Time Tickets Reservation Withdrawal Slips CO Order Shop Floor Release Paper Printing Load in the WC

Acc. Data

COPA

SD

Forecast Manual

Planned Order MRP

MM

FI CO Completion Partial/Milestone conf. MM FI SD Inward Stock Mvt. Stock Updating MM

SOP
SIS
Transfer

Demand Mgmt.

MPS
Transfer

MRP List

Withdrawal Material Back Flushing Yes/No? Costs Settled Archive/ Order settlement Delete FI CO

Order processing

Production Plan

Manual

Sales OrderSD Make to Order

Production Planning Data

Forecast Cons. History

MM

Purchase Requisition

Material Master Bill of Material (BOM) Routings Work Centers Production Resources/Tools (PRT) Capacity Engineering Change Management (ECM) Classification Product Costing Material Requirements Planning Manufacturing Resources Planning

External Procurement (See MM module)

Manual/Automatic CO Planned order Purchase req. Source Determination Vendor selection Net Price Comparison FI Invoice Receipt RFQ FI Quotations Payment Invoice Verification Purchase order FI Goods Receipt

Manual

Information contained in this chart is not all-inclusive.

SAP R/3 Functionality Production Planning Integration : In house Production

In-house Production
Time Tickets Withdrawal Slips Shop Floor Paper Printing

Costs Calc. CO

Reservation Availability check CO Order Release

FI
Account Postings

Planned Order Order creation Order Proposal MM MM Stock Items Manual/Automatic

Load in the WC

CO
Order Cost Calculation Order Settlement

CO

FI

Completion conf. Partial/Full MM

FI SD

Order processing

Withdrawal Material Back Flushing Yes/No?

Costs Settled Order settlement FI CO Archive/ Delete

Inward Stock Mvt. Stock Updating MM

SAP R/3 Functionality Production Planning Integration : In house Production

In-house Production
Time Tickets Withdrawal Slips Shop Floor Paper Printing

Costs Calc. CO

Reservation Availability check CO Order Release

MM
Material Availability Check Goods Movements

Planned Order Order creation Order Proposal MM MM Stock Items Manual/Automatic

Load in the WC

CO

FI

Completion conf. Partial/Full MM

FI SD

Order processing

Withdrawal Material Back Flushing Yes/No?

SD
ATP Quantity

Costs Settled Order settlement FI CO Archive/ Delete

Inward Stock Mvt. Stock Updating MM

Main SAP Modules and Integration

- Financial Accounting and Asset Management

SAP R/3 Functionality Financial Accounting and Asset Management

SD
Sals & Distribution

FI
Financial Accounting

MM
Materials Mgmt.

AM
Fixed Assets Mgmt.

PP
Production Planning

R/3
Client / Server ABAP/4
HR
Human Resources

CO
Controlling

QM
Quality Mgmt.

PS
Project System

PM

Plant Maintenance

OC IS
Office Comm Industry Solutions

SAP R/3 Functionality Financial Accounting and Asset Management

MM MM

Master data
E X E C U T I V E I N F O S Y S

General Ledger
Financial Statements Account Analysis Multi-currency Taxation

CO SD

Materials Management Controlling Sales and Distribution

Chart of Accounts Company Codes Business Areas Credit Control Areas Assets Depreciation Areas

Accounts Payable
Account Analysis (I/C) Payments History
FI

MM

Inventory Management Vendor Payments Intercompany Reconciliation

Accounts Receivable
Account Analysis (I/C) Credit
MM SD FI

Cash Management
Cash Plan Cash Forecasting

Inventory Management Customer Billing Credit Worthiness Intercompany Reconciliation

Asset Management
Asset Values Depreciation Forecast Additions Retirements
CO

PP

FI PS

Purchasing Controlling Financial Reporting Project System

Main SAP Modules and Integration

- Controlling

SAP R/3 Functionality - Controlling

SD
Sals & Distribution

FI
Financial Accounting

MM
Materials Mgmt.

AM
Fixed Assets Mgmt.

PP
Production Planning

R/3
Client / Server ABAP/4
OC IS
Office Comm Industry Solutions

CO
Controlling

QM
Quality Mgmt.

PS
Project System

PM

Plant Maintenance

HR
Human Resources

SAP R/3 Functionality - Controlling

Master data E X E C U T I V E I N F O S Y S Profit Center Accounting
MM MM

Financial Statements Management Account Analysis Multi-currency

SD

Materials Management Sales and Distribution

Controlling Areas

Cost Center Accounting

CO

MM

Profit Centers
Cost Centers Operating Concerns

Cost Center Expense Planning Budgeting

FI

Inventory Management Allocations Fixed Asset Management

Internal Orders
Project Tracking Planning Budgeting

CO PS AM PA

Allocations Project System Fixed Asset Management Profitability Analysis

Profitability Segments

Profitability Analysis
PS

SD

Profitability
CO

Sales and Distribution Project System Internal Orders Cost Center Accounting

Summary - SAP ERP : R/3 Product Suite

SD
Sales & Distribution

FI
Financial Accounting

MM
Materials Mgmt.

AM
Asset Mgmt.

PP
Production Planning

R/3
Client / Server ABAP/4
HR
Human Resources

CO
Controlling

QM
Quality Mgmt.

PS
Project System

PM

Plant Maintenance

OC IS
Office Comm Industry Solutions

Enterprise Portals

Strategic Enterprise Management (SEM) Analytical Application (AA)

Enterprise Portals

S u p p l i e r

Business Information Warehouse (BW) APO

Supply Chain Management

Enterprise Resource Planning (R/3) Product Life Cycle Management (PLM) E Procument Enterprise Buyer E - Marketing

CRM
Customer Relationship Management

C u s t o m e r

Enterprise Portals

Enterprise Portals