SAP R / 3 Enables a company to link it's business processes Ties together disparate business functions (integrated business solution) Helps the organization run smoothly Real-time environment Scalable and flexible. Founded in Germany (1972) World's third largest software provider World's largest provider of Integrated Business Solutions software.
SAP R / 3 Enables a company to link it's business processes Ties together disparate business functions (integrated business solution) Helps the organization run smoothly Real-time environment Scalable and flexible. Founded in Germany (1972) World's third largest software provider World's largest provider of Integrated Business Solutions software.
SAP R / 3 Enables a company to link it's business processes Ties together disparate business functions (integrated business solution) Helps the organization run smoothly Real-time environment Scalable and flexible. Founded in Germany (1972) World's third largest software provider World's largest provider of Integrated Business Solutions software.
June 2005 SAP AG and The Rushmore Group, LLC 2005 2 Welcome SAP introductions Host institution introductions Instructor introductions Student introductions Course schedule Classroom materials Housekeeping issues Introduction to SAP June 2005 SAP AG and The Rushmore Group, LLC 2005 3 Course Materials Business Process Integration Slides Business Process Integration Exercises An Introduction to the Basics of SAPs R/3 Client / Server Integrated Business Solution June 2005 SAP AG and The Rushmore Group, LLC 2005 5 SAP Systems, Applications, and Products in Data Processing (SAP) Name of the company SAP AG SAP America Name of the software SAP R/2 Mainframe version SAP R/3 Client/Server version
June 2005 SAP AG and The Rushmore Group, LLC 2005 6 SAP AG Founded in Germany (1972) Worlds third largest software provider Worlds largest provider of Integrated Business Solutions software Company stock trades on the Frankfurt and New York exchanges
June 2005 SAP AG and The Rushmore Group, LLC 2005 7 SAP R/3 World-wide usage Designed to satisfy the information needs for business sizes (small local to large all international) Multi-lingual Multi-currency Designed to satisfy the information needs for all industries (industry solutions)
June 2005 SAP AG and The Rushmore Group, LLC 2005 8 SAP R/3 Enables a company to link its business processes Ties together disparate business functions (integrated business solution) Helps the organization run smoothly Real-time environment Scalable and flexible
Business Process Integration I The Rushmore Group, LLC
June 2005 SAP AG and The Rushmore Group, LLC 2005 10 Welcome SAP introductions Host institution introductions Instructor introductions Student introductions Course schedule Classroom materials Housekeeping issues Introduction to SAP June 2005 SAP AG and The Rushmore Group, LLC 2005 11 Course Materials Business Process Integration Slides Business Process Integration Exercises An Introduction to the Basics of SAPs R/3 Client / Server Integrated Business Solution June 2005 SAP AG and The Rushmore Group, LLC 2005 13 SAP Systems, Applications, and Products in Data Processing (SAP) Name of the company SAP AG SAP America Name of the software SAP R/2 Mainframe version SAP R/3 Client/Server version
June 2005 SAP AG and The Rushmore Group, LLC 2005 14 SAP AG Founded in Germany (1972) Worlds third largest software provider Worlds largest provider of Integrated Business Solutions software Company stock trades on the Frankfurt and New York exchanges
June 2005 SAP AG and The Rushmore Group, LLC 2005 15 SAP R/3 World-wide usage Designed to satisfy the information needs for business sizes (small local to large all international) Multi-lingual Multi-currency Designed to satisfy the information needs for all industries (industry solutions)
June 2005 SAP AG and The Rushmore Group, LLC 2005 16 SAP R/3 Enables a company to link its business processes Ties together disparate business functions (integrated business solution) Helps the organization run smoothly Real-time environment Scalable and flexible
June 2005 SAP AG and The Rushmore Group, LLC 2005 17 Integrated Business Solutions Software Vendors SAP Oracle (Peoplesoft and J.D. Edwards) Microsoft Great Plains, Axapta, Solomon IBM BAAN
June 2005 SAP AG and The Rushmore Group, LLC 2005 18 Architecture Central relational database (e.g., Oracle, Informix, Microsoft SQL and many others) Client/Server three-tiered ERP Component Oriented towards common identifiable business modules (FI, MM, SD, CO, PP, HR) Add-ons: Customer Relationship Mgmt (CRM) Supply Chain Mgmt (SCM) Product Lifecycle Mgmt (PLM)
June 2005 SAP AG and The Rushmore Group, LLC 2005 19 Relational Database Tables: Defines and links thousands of tables of information (25,000+) Advantages Consistent and accurate data Common definitions for terms Shared, but restricted usage (e.g., profiles) Eliminates data redundancy
June 2005 SAP AG and The Rushmore Group, LLC 2005 20 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 June 2005 SAP AG and The Rushmore Group, LLC 2005 21 Three-Tier SAP Structure GUI Graphical User Interface or Web Interface Application server (one or many) Database server (one single location) June 2005 SAP AG and The Rushmore Group, LLC 2005 22 SAP Enterprise System Database Application Presentation Browser Client PCs, Laptops, etc. Network Application Servers Database Internet Transaction Server Web Server June 2005 SAP AG and The Rushmore Group, LLC 2005 23 mySAP Business Suite SAP NetWeaver mySAP SCM mySAP PLM mySAP SRM mySAP CRM mySAP ERP SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 24 SAP Enterprise System R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. mySAP ERP Modules June 2005 SAP AG and The Rushmore Group, LLC 2005 25 Business Modules Collections of logically related transactions within identifiable business functions MM (Buy) PP (Make) SD (Sell) FI and CO (Track) HR
June 2005 SAP AG and The Rushmore Group, LLC 2005 26 SAP R/3 Basics Instance each install of the SAP R/3 software on an individual application server Configurable each instance can be distinctively configured to fit the needs and desires of the customer (within limits) Most of the infrastructure decisions, including configuration decisions, occur during project implementation
June 2005 SAP AG and The Rushmore Group, LLC 2005 27 Configuration The process of tailoring SAP software by selecting specific functionality from a list of those supported by the software, very much like setting defaults (e.g., Word, Access) DOES NOT involve changes to the underlying software code
June 2005 SAP AG and The Rushmore Group, LLC 2005 28 Programming Code Modifications Changes to the delivered code ABAP/4 Advanced Business Application Programming (ABAP) This should be done sparingly and carefully as it can make migration to new versions of the software much more difficult
June 2005 SAP AG and The Rushmore Group, LLC 2005 29 SAP R/3 Document Principle Each business transaction that writes data to the database creates a uniquely numbered electronic document Each document contains information such as Responsible person Date and time of the transaction Commercial content Once created, a document can not be deleted from the database
June 2005 SAP AG and The Rushmore Group, LLC 2005 30 Review SAP and SAP R/3 Integrated Business Solution Architecture Client/Server Software Relational Database SAP R/3 Modules Configurable Software Programming Code Modifications Be Careful!! SAP R/3 Document Principle
Unit 1 Business Processes, Integration, and Configuration in the SAP R/3 Environment June 2005 SAP AG and The Rushmore Group, LLC 2005 32 Two Differing Learning Approaches Standard SAP training Level 1: Introductory Level 2: Business processes Level 3: Configuration Our Approach Cross functional Understand business processes and their relationships to SAP's organizational structure Highlight integration/configuration!! SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 33 Learning by Creating a Model Business Understanding business processes and their integrative nature Understanding SAP organizational structures Combining business processes and SAP organizational structure (i.e., configuration) Test the newly configured system View system outputs - statistics, reports, and graphics SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 34 Pen Incorporated Start-up company in the promotional pen company Initially buys and re-sells different lines of promotion pens Sells to both wholesale and retail procure and distribute Later acquires a production facility to manufacture its own product produce and distribute SAP Enterprise System SAP R/3 and Business Processes - Overview -
June 2005 SAP AG and The Rushmore Group, LLC 2005 36 Pen Incorporated Procure for Sales Order SAP Enterprise System Pre-Sales Activity Sales Order Delivery Billing General Ledger Accounts Purchase Requisition Purchase Order Goods Receipt In Inventory Plant or Warehouse Invoice Receipt Availability Check NO YES Goods to Delivery Goods from Purchase Order Inventory Postings Accounts Receivable Accounts Payable June 2005 SAP AG and The Rushmore Group, LLC 2005 37 Pen Incorporated Produce for Sales Order SAP Enterprise System Pre-Sales Activity Sales Order Delivery Billing Planned Order Production Order Completion Confirmation In Inventory Plant or Warehouse Availability Check NO YES Goods Issued to Delivery Goods from Production Order General Ledger Accounts Inventory Postings Accounts Receivable Accounts Payable June 2005 SAP AG and The Rushmore Group, LLC 2005 38 SAP Enterprise System R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. June 2005 SAP AG and The Rushmore Group, LLC 2005 39 Logistics Materials Management (MM) Sales and Distribution (SD) Production Planning (PP) Quality Management (QM) Plant Maintenance (PM) Service Management (SM) SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 40 SAP Enterprise System Accounting and Finance Financial Accounting (FI) Controlling (CO) Enterprise Controlling (EC) Fixed Asset Management (AM) Project Systems (PS)
June 2005 SAP AG and The Rushmore Group, LLC 2005 41 SAP Enterprise System Human Resources Human Resources (HR) June 2005 SAP AG and The Rushmore Group, LLC 2005 42 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 43 Components of Materials Management Materials Management (MM) Materials Management (MM) Logistics Invoice Verification Material Master Physical Inventory Valuation MRP Service Entry Sheet Service Master Product Catalog Purchasing Inventory Mgmt. Foreign Trade/ Customs June 2005 SAP AG and The Rushmore Group, LLC 2005 44 Materials Management (MM) Integration Procurement Process (Procure-to-Pay) Purchase Requisition Payment to Vendor Notify Vendor Vendor Shipment Invoice Receipt Goods Receipt Purchase Order June 2005 SAP AG and The Rushmore Group, LLC 2005 45 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 46 Components of Sales and Distribution Sales and Distribution (SD) Sales and Distribution (SD) Sales Support Sales Credit Mgmt. Shipping Transport Billing Foreign Trade Sales Information System Master Data June 2005 SAP AG and The Rushmore Group, LLC 2005 47 Sales Order Process (Order-to-Cash) Integration Sales Order Entry Post Goods Issue Invoice Customer Pick Materials Receipt of Customer Payment Pack Materials Check Availability Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 48 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 49 Financial Accounting (FI) Components of Financial Accounting Financial Accounting (FI) Accounts Receivable Accounts Payable Special Purpose Ledger Fixed Assets Banks General Ledger June 2005 SAP AG and The Rushmore Group, LLC 2005 50 Materials Management (MM) Integration Procurement Process (Procure-to-Pay) Purchase Requisition Payment to Vendor Notify Vendor Vendor Shipment Invoice Receipt Goods Receipt Purchase Order June 2005 SAP AG and The Rushmore Group, LLC 2005 51 Sales Order Process (Order-to-Cash) Integration Sales Order Entry Post Goods Issue Invoice Customer Pick Materials Receipt of Customer Payment Pack Materials Check Availability Sales and Distribution (SD) SAP R/3 Configuration - Overview - June 2005 SAP AG and The Rushmore Group, LLC 2005 53 SAP Enterprise System R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. June 2005 SAP AG and The Rushmore Group, LLC 2005 54 Business Process Integration The Stool Components Organizational Data Master Data Rules Transactions SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 55 Business Process Integration R u l e s
FI MM SD FI SD MM SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 56 Organizational Data A hierarchy in which the organizational units in an enterprise are arranged according to tasks and functions Are static data and are rarely changed The definition of organization units is a fundamental step, it is a critical factor in how the company will be structured
SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 57 Master Data Master data is relatively fixed Material master data Vendor master data Purchasing information record General Ledger master data Before making the master data configurations, you must have completely defined the organizational structures
SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 58 Rules Defines the parameters for Master Data and Transactions Determines functionality for Master Data and Transactions Relatively fixed Changes as policy changes SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 59 SAP Enterprise System Transaction Data Includes internal and external exchanges that describe business activities Unlike master data, aggregate transactional data is dynamic each transaction is unique
June 2005 SAP AG and The Rushmore Group, LLC 2005 60 Functional Areas Where and When Business Process Integration I Financial Accounting (FI) Materials Management (MM) Sales and Distribution (SD) Business Process Integration II Controlling (CO) Production Planning (PP) SAP Enterprise System Unit 2 The Basics - An Introduction to Accessing and Navigating the SAP R/3 System -
June 2005 SAP AG and The Rushmore Group, LLC 2005 62 SAP Enterprise System R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. June 2005 SAP AG and The Rushmore Group, LLC 2005 63 Unit 2 Overview Logging on SAP R/3 screens Basics of data entry Working with multiple sessions Reporting On-line help and system messages Setting user defaults Logging off SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 64 SAP R/3 System Standard Features Logging on SAP R/3 screens Basics of data entry Working with multiple sessions Reporting On-line help and system messages Setting user defaults Logging off SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 65 Logging On - SAP R/3 Initial Screens SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 66 Logging On - The Client This is a numeric field This number defines a whole business entity
SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 67 Logging On - User Enter the name of the SAP user Users of SAP system are client-specific User identification on one client will only allow access to that client on that server SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 68 Logging On - Password Rules Letters Numbers Easy to remember 3-8 Characters long No 3 Characters can be the same Do not start with a ? or an ! Do not use previous 5 passwords
SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 69 Logging On - Language SAP supports multi-national character sets and languages on the same system, at the same time Default languages are English and German
SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 70 Logging On - Data Record SAP Enterprise System Valid Valid Client User Password From To 400 STEVE ******** 1/1/2000 12/21/2000 400 BOB ******** 1/1/2000 12/21/2000 400 JERRY ******** 1/1/2000 12/21/2000 410 STEVE ******** 1/1/2005 12/31/2008 410 BOB ******** 1/1/2005 12/31/2008 410 JERRY ******** 1/1/2005 12/31/2008 Table June 2005 SAP AG and The Rushmore Group, LLC 2005 71 SAP R/3 System - Standard Features Logging On SAP R/3 Screens Basics of Data Entry Working with Multiple Sessions Reporting On-line Help and System Messages Setting User Defaults Logging Off SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 72 SAP R/3 Screens - The Topics Easy Access desktop System menus System navigation Transaction name Transaction icons Transaction work area Status messages
SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 73 SAP R/3 Screens - Easy Access Desktop SAP Enterprise System System Menus Transaction Name Transaction Icons Transaction Work Area Status Messages System Navigation June 2005 SAP AG and The Rushmore Group, LLC 2005 74 SAP R/3 Screens - Easy Access Desktop SAP Enterprise System Favorites Folder and Sub-Folder Transactions June 2005 SAP AG and The Rushmore Group, LLC 2005 75 SAP R/3 Screens - System Menus SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 76 SAP Enterprise System SAP R/3 Screens - System Navigation June 2005 SAP AG and The Rushmore Group, LLC 2005 77 SAP R/3 Screens - Transaction Name SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 78 SAP R/3 Screens - Transaction Name SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 79 SAP R/3 Screens - Transaction Icons Screen or view dependant (e.g. materials master will differ from sales order entry will differ from the main menu) SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 80 SAP R/3 Screens - Transaction Work Area SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 81 SAP R/3 Screens - Status Messages SAP Enterprise System System Message System Information June 2005 SAP AG and The Rushmore Group, LLC 2005 82 SAP R/3 Transaction Screen Tabs Header Line Item SAP Enterprise System Line Item Detail June 2005 SAP AG and The Rushmore Group, LLC 2005 83 SAP R/3 Master Data Screen Tabs SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 84 SAP R/3 System - Standard Features Logging on SAP R/3 screens Basics of data entry Working with multiple sessions Reporting On-line help and system messages Setting user defaults Logging off SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 85 Using menus Using transaction codes System > status Using /n Multiple sessions Using /o
Basics of Data Entry SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 86 SAP Enterprise System Basics of Data Entry Types of entry fields Moving between fields Radio buttons and check boxes Possible entry fields Match-codes Saving data Canceling data
June 2005 SAP AG and The Rushmore Group, LLC 2005 87 SAP Enterprise System Basics of Data Entry Cancel Check Box Pull Down Entry (Input) Field Tab Save June 2005 SAP AG and The Rushmore Group, LLC 2005 88 Basics of Data Entry There are three types of entry fields: Required Default entry Optional entry field SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 89 SAP R/3 System - Standard Features Logging on SAP R/3 screens Basics of data entry Working with multiple sessions Reporting On-line help and system messages Setting user defaults Logging off SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 90 Working with Multiple Sessions SAP Enterprise System Opens another session June 2005 SAP AG and The Rushmore Group, LLC 2005 91 Working with Multiple Sessions An SAP session is a window in which the user may perform a particular task Users may have up to nine sessions open at one time SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 92 SAP R/3 System - Standard Features Logging on SAP R/3 screens Basics of data entry Working with multiple sessions Reporting On-line help and system messages Setting user defaults Logging off SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 93 Reporting Three basic steps to running a report Access the report Enter selection criteria Execute the report
SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 94 Reporting SAP Enterprise System Access Selection Execution June 2005 SAP AG and The Rushmore Group, LLC 2005 95 SAP R/3 System - Standard Features Logging on SAP R/3 screens Basics of data entry Working with multiple sessions Reporting On-line help and system messages Setting user defaults Logging off SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 96 On-line Help SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 97 SAP Enterprise System On-line Help Help on screen fields - F1 Extended help Reference information Technical information Displaying possible entries - F4 Using the Help menu Extended help R/3 library Getting started June 2005 SAP AG and The Rushmore Group, LLC 2005 98 SAP Enterprise System F1 - Key F4 - Key On-line Help June 2005 SAP AG and The Rushmore Group, LLC 2005 99 System Messages E = Error An invalid entry has been made The cursor moves to the field where the error has occurred W = Warning A possible error has been made The user can continue without changing I = Information Feedback from the system SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 100 SAP R/3 System - Standard Features Logging on SAP R/3 screens Basics of data entry Working with multiple sessions Reporting On-line help and system messages Setting user defaults Logging off SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 101 Setting User Defaults SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 102 SAP R/3 System - Standard Features Logging on SAP R/3 screens Basics of data entry Working with multiple sessions Reporting On-line help and system messages Setting user defaults Logging off SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 103 Logging Off System > logoff Exit button Control box For security purposes it is important to log off SAP whenever you leave your PC. Your user name is linked with all transactions you perform providing an audit trail. SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 104 Sales Order Entry Check Availability Procurement Process Pick Materials Purchase Requisition Purchase Order Goods Receipt Invoice Receipt Payment to Vendor Post Goods Issue Invoice Customer Receipt of Payment BPI I Exercise Roadmap Run MRP Sales Process Exercise Part 1 Order-to-Cash June 2005 SAP AG and The Rushmore Group, LLC 2005 106 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 107 Sales Order Process (Order-to-Cash) Integration Sales Order Entry Post Goods Issue Invoice Customer Pick Materials Receipt of Customer Payment Pack Materials Check Availability Sales and Distribution (SD) Procurement Process Exercise Procure-To-Pay June 2005 SAP AG and The Rushmore Group, LLC 2005 109 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 110 Materials Management (MM) Integration Procurement Process (Procure-to-Pay) Purchase Requisition Payment to Vendor Notify Vendor Vendor Shipment Invoice Receipt Goods Receipt Purchase Order 3- Way Matc h Sales Process Exercise Part 2 Order-to-Cash June 2005 SAP AG and The Rushmore Group, LLC 2005 112 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 113 Sales Order Process (Order-to-Cash) Integration Sales Order Entry Post Goods Issue Invoice Customer Pick Materials Receipt of Customer Payment Pack Materials Check Availability Sales and Distribution (SD) Financial and Managerial Accounting (FI and CO)
- Overview - Unit 3 June 2005 SAP AG and The Rushmore Group, LLC 2005 115 SAP Enterprise System R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. June 2005 SAP AG and The Rushmore Group, LLC 2005 116 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Financial Accounting (FI) Controlling (CO) June 2005 SAP AG and The Rushmore Group, LLC 2005 117 Unit 3, Part 1 Overview Financial Accounting (FI) Goals and Objectives Target Audience Components Managerial Accounting (CO) Goals and Objectives Target Audience Components Comparisons and Relationships Financial Accounting (FI) Controlling (CO) June 2005 SAP AG and The Rushmore Group, LLC 2005 118 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 119 Financial Accounting (FI) Goals and Objectives Financial accounting is designed to collect all of the data needed to support the preparation of financial statements for external users
June 2005 SAP AG and The Rushmore Group, LLC 2005 120 Financial Accounting (FI) Target Audience Internal Executives Senior Management Accounts Administration Staff Employees
June 2005 SAP AG and The Rushmore Group, LLC 2005 121 Financial Accounting (FI) Components of Financial Accounting Financial Accounting (FI) Accounts Receivable Accounts Payable Special Purpose Ledger Fixed Assets Banks General Ledger June 2005 SAP AG and The Rushmore Group, LLC 2005 122 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Controlling (CO) June 2005 SAP AG and The Rushmore Group, LLC 2005 123 Goals and Objectives Managerial accounting is designed to collect data for the preparation and analysis of reports for use by internal users
Controlling (CO) June 2005 SAP AG and The Rushmore Group, LLC 2005 124 Controlling (CO) Target Audience Executives Senior Management Department Managers Controllers Cost Accountants
June 2005 SAP AG and The Rushmore Group, LLC 2005 125 Components of Managerial Accounting Controlling (CO) Controlling (CO) Cost Element Acct Cost Center Acct Product Cost Controlling Internal Orders Activity Based Costing Profit Center Acct Profitability Analysis June 2005 SAP AG and The Rushmore Group, LLC 2005 126 Comparison Managerial Accounting Cost Center Accounting Profit Center Accounting Product Costing Profitability Analysis Different Valuations Flexibility
Financial Accounting External Accounting Balance Sheet Profit & Loss Statement Legal Requirements Standards Controlling (CO) Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 127 Comparative Reporting Controlling (CO) Financial Accounting (FI) Financial Accounting (FI) External Reporting Managerial Accounting (CO) Product Costs Reports Internal Reporting Cost Center Reports Profit Center Reports Profit Margin Retained Earnings Report Liquidity Calculation Income Statement Balance Sheet June 2005 SAP AG and The Rushmore Group, LLC 2005 128 Controlling (CO) Financial Accounting (FI) Income Statement Bal. Sheet
(CO) Transaction Document Cost Center Cost Element 20000657
Controlling 100 100 Bank Supplies Exp. Cost Center 100 Interrelated and Closely Connected Financial Accounting (FI) - The Basics -
June 2005 SAP AG and The Rushmore Group, LLC 2005 130 SAP Enterprise System R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. June 2005 SAP AG and The Rushmore Group, LLC 2005 131 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 132 Unit 3, Part 2 Overview General Ledger Chart of Accounts Balance Sheet Assets Liabilities Equity Income Statement Revenues Expenses Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 133 Financial Accounting (FI) General Ledger The General Ledger provides a complete record of all "acceptable" business transactions from the viewpoint of an accountant An acceptable business transaction has the following traits Affects the financial position of the entity Measurable in a currency Affects at least two accounts Assets = Liabilities + Equity Debits = Credits
June 2005 SAP AG and The Rushmore Group, LLC 2005 134 Chart of Accounts The foundation for the General Ledger is the Chart of Accounts A Chart of Accounts contains a complete list of all of the accounts utilized in the General Ledger for a given company Financial accounting reports are prepared from the balances contained in the General Ledgers Chart of Accounts Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 135 Chart of Accounts (continued) There are five types of accounts contained in a Chart of Accounts Assets Liabilities Equity Revenues Expenses There are two primary accounting reports prepared from the General Ledger Chart of Accounts Balance Sheet Income Statement Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 136 Balance Sheet Assets Things of value that a company owns or controls that accountants have agreed to measure in monetary terms. Examples of these accounts include: Cash Accounts receivables Plant and equipment Inventory
Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 137 Balance Sheet Liabilities Things that a company owes or must provide services in order to settle that accountants have agreed to measure in monetary terms. Examples of these accounts include: Accounts payable Notes payable Bonds payable Unearned revenue
Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 138 Financial Accounting (FI) Balance Sheet Equity Equity is simply the mathematical difference between assets and liabilities. Includes the monetary amounts collected with respect to all preferred and common stock transactions, the aggregate net income reported since organization of the company, and a reduction for dividends that have been paid to stockholders. June 2005 SAP AG and The Rushmore Group, LLC 2005 139
Financial Accounting (FI) Balance Sheet June 2005 SAP AG and The Rushmore Group, LLC 2005 140 Financial Accounting (FI) Income Statement Revenues The monetary amounts collected from customers in settlement for goods purchased from our company or services rendered by our firm to them during the current fiscal year.
June 2005 SAP AG and The Rushmore Group, LLC 2005 141 Income Statement Expenses The monetary amounts paid to vendors in settlement for goods purchased by our company or services rendered to our firm by other companies during the current fiscal year.
Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 142
June 2005 SAP AG and The Rushmore Group, LLC 2005 144 Business Process Integration Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 145 Organizational Data A hierarchy in which the organizational units in an enterprise are arranged according to tasks and functions Are static data and are rarely changed The definition of organization units is a fundamental step, it is a critical factor in how the company will be structured SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 146 Unit 3, Part 3 Overview Organizational Structures Client Company Chart of accounts Company code Credit control area Financial Accounting (FI) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 147 Client Highest hierarchical level in an SAP environment A complete database containing all the tables necessary for creating a fully integrated information system Master records are created at the client level Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 148 Financial Accounting (FI) Client June 2005 SAP AG and The Rushmore Group, LLC 2005 149 Company Consolidated financial statements are created at the company level A company can include one or more company codes All company codes must use the same chart of accounts and fiscal year Company is not required in the definition of an enterprise (optional) Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 150 Client Financial Accounting (FI) Company June 2005 SAP AG and The Rushmore Group, LLC 2005 151 Company Code A legally independent entity The smallest organizational unit for which accounting can be carried out Business transactions are processed at this level Accounts are managed at this level Legal financial statements, such as the balance sheet and the income statement, are generated at this level using the General Ledger balances
Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 152 Financial Accounting (FI) Client Company Company Code June 2005 SAP AG and The Rushmore Group, LLC 2005 153 Chart of Accounts A listing of the accounts (assets, liabilities, equity, revenues, and expenses) that are contained in the General Ledger A chart of accounts must be assigned to every company code in order to create the General Ledger for that company Several company codes can use the same chart of accounts Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 154 Company Code 010 Company Code 038 Company Code 110 Company Code 117 United States Chart of Accounts Canadian Chart of Accounts Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 155 Financial Accounting (FI) Client Company Chart of Accounts Company Code June 2005 SAP AG and The Rushmore Group, LLC 2005 156 Financial Accounting (FI) Fiscal Year Variant Specifies the accounting fiscal year for reporting purposes Special periods are created to aid in the quarterly or year-end adjusting process completed prior to preparing financial statements A single fiscal year variant is assigned to each company code
June 2005 SAP AG and The Rushmore Group, LLC 2005 157 Financial Accounting (FI) Client Company Chart of Accounts Fiscal Year Variant Company Code June 2005 SAP AG and The Rushmore Group, LLC 2005 158 Credit Control Area An organizational unit or area of responsibility created to control customer credit limits A company code is assigned to one and only one credit control area Multiple company codes can be assigned to one credit control area Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 159 Financial Accounting (FI) Client Company Chart of Accounts Company Code Fiscal Year Variant Credit Control Area June 2005 SAP AG and The Rushmore Group, LLC 2005 160 Financial Accounting (FI) Client Company Chart of Accounts Company Code Fiscal Year Variant Credit Control Area June 2005 SAP AG and The Rushmore Group, LLC 2005 161 Consolidation and Business Areas Company A company is an organizational unit in Financial Accounting which represents a business organization according to the requirements of commercial law in a particular country. Business Areas A unit in an enterprise that groups product and market combinations as homogeneously as possible for the purpose of developing unified business policy. Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 162 Financial Accounting (FI) Client General Motors GM Corp. Chart of Accts GMC Cadillac Chevrolet Corporate Fiscal Year Var. GMCorporate Credit CA Cars Cars Trucks Trucks Trucks Business Areas Consolidation of Company Codes June 2005 SAP AG and The Rushmore Group, LLC 2005 163 Financial Accounting (FI) Client 100 Chart of Accounts Company Code Fiscal Year Variant Credit Control Area Pen Inc. Financial Accounting (FI) - Rules -
June 2005 SAP AG and The Rushmore Group, LLC 2005 165 Rules Defines the parameters for Master Data and Transactions Determines functionality for Master Data and Transactions Relatively fixed Changes as policy changes SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 166 Unit 3, Part 4 Overview Rules Account groups BS Balance Sheet Account Group PL Income Statement Account Group RA Reconciliation Account Group Field status variant Field status groups Fiscal year variant Tax version Financial Accounting (FI) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 167 Account Groups Financial Accounting (FI)
Chrt/accts Acct group Description From To CHRT BS Balance Sheet 100000 399999 CHRT PL Income Sheet 400000 999999 CHRT RA Reconciliation 110000 310000 June 2005 SAP AG and The Rushmore Group, LLC 2005 168 So What is a Reconciliation Account? Postings to sub-ledgers (such as accounts receivable or accounts payable) are automatically concurrently posted to the corresponding reconciliation account in the General Ledger In this way, the General Ledger is automatically updated and remains in balance with the customer and vendor individual account totals Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 169 Financial Accounting (FI) Account Groups Identifier that controls which fields must be entered when an account is created Determine a valid number interval for each of the groups (types) of General Ledger accounts that have common attributes Must be created before General Ledger Chart of Accounts master records can be created You must assign each account to an appropriate account group June 2005 SAP AG and The Rushmore Group, LLC 2005 170 Financial Accounting (FI) Account control Suppress Req. entry Opt. entry Display
Currency Tax category Reconciliation account
Account Group BS
Account control Account management Document entry Bank/financial details Interest calculation Joint venture June 2005 SAP AG and The Rushmore Group, LLC 2005 171 Financial Accounting (FI) Field Status Field status controls how the data will be entered for a field when an accounting master record is being used in a transaction Determining whether a field is required, optional, suppressed, or display only Field status controls are also relevant to a specific activity create, change, or display
June 2005 SAP AG and The Rushmore Group, LLC 2005 172 Field Status Variant Financial Accounting (FI) Fld status group Text ZBSA Balance Sheet Accounts ZEXP Expense Accounts ZGRI Material Management (GR/IR) Accounts ZRCN Reconciliation Accounts ZREV Revenue Accounts June 2005 SAP AG and The Rushmore Group, LLC 2005 173 Financial Accounting (FI) Field status variant (V000) - Group ZBSA - Balance Sheet Acct.
General data Additional account assignments Materials management Payment transactions Asset accounting Taxes ... General Data Suppress Req. entry Opt. entry Display
Assignment number Text Invoice reference
June 2005 SAP AG and The Rushmore Group, LLC 2005 174 Financial Accounting (FI) Departure Country Destination County Customer Tax Classification (EU countries) Material Tax Classification Tax Version June 2005 SAP AG and The Rushmore Group, LLC 2005 175 Materials Management (MM) - Organizational Structures - Unit 4 June 2005 SAP AG and The Rushmore Group, LLC 2005 176 Business Process Integration Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 177 Organizational Data A hierarchy in which the organizational units in an enterprise are arranged according to tasks and functions Are static data and are rarely changed The definition of organization units is a fundamental step, it is a critical factor in how the company will be structured SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 178 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 179 Unit 4 Overview Unit Concept Purchasing and SAP R/3 Procurement Process Organizational Structures Organizational Relationships Warehouse Management Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 180 Unit Concept The purchasing process involves the acquisition of goods and services to support the creation of goods and services in the organization In this unit the structure required for the purchasing process is presented Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 181 Purchasing and SAP R/3 The purchasing process exists in the Materials Management (MM) module of SAP R/3 and Finance (FI) module The structure includes elements of the Materials Management (MM) and Finance (FI) modules Master data for the purchasing process exists in the (MM) and (FI) modules The purchasing process can and does interface with the Production Planning (PP), Warehouse Management (WM), and Quality Management (QM) modules Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 182 Components of Materials Management Materials Management (MM) Materials Management (MM) Logistics Invoice Verification Material Master Physical Inventory Valuation MRP Service Entry Sheet Service Master Product Catalog Purchasing Inventory Mgmt. Foreign Trade/ Customs June 2005 SAP AG and The Rushmore Group, LLC 2005 183 Materials Management (MM) Integration Procurement Process (Procure-to-Pay) Purchase Requisition Payment to Vendor Notify Vendor Vendor Shipment Invoice Receipt Goods Receipt Purchase Order 3- Way Matc h June 2005 SAP AG and The Rushmore Group, LLC 2005 184 Organizational Structures Plant Valuation Area Storage Locations Purchasing Organizations Purchasing Groups
Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 185 Plant Lowest valuation area Organizational level where Material Requirements (MRP) runs Generally used to describe a production site, a distribution center or centralized warehouse May be a physical or logical unit Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 186 Valuation Area The valuation area determines at which level a material is valuated (inventory value is established) SAP R/3 allows valuation at the company code or plant level, but recommends valuation area be set at the plant level Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 187 Storage Location Subdivision of a plant Where materials are managed (inventory management) Raw Materials Maintenance, Repair, and Other (MRO) Finished Product May be a physical or logical unit
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 188 Organizational Relationships Plant/Storage Location Materials Management (MM) Storage Location 20 - Quality Storage Location 10 - Inventory Plant P001 June 2005 SAP AG and The Rushmore Group, LLC 2005 189 Purchasing Organization Organizational unit responsible for the procurement of materials and services. SAP requires that purchasing organizations be assigned at the plant level A purchasing organization can be assigned to more than one plant A purchasing organization can be assigned to a company code Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 190 Organizational Relationships Plant/Purchasing Organization (1)
One plant multiple purchasing organizations Materials Management (MM) Purchasing Organization P002 Purchasing Organization P001 Plant P001 June 2005 SAP AG and The Rushmore Group, LLC 2005 191 Organizational Relationships (continued) Plant/Purchasing Organization (2) Each plant has its own purchasing organization Materials Management (MM) Purchasing Organization P002 Plant P002 Purchasing Organization P001 Plant P001 June 2005 SAP AG and The Rushmore Group, LLC 2005 192 Organizational Relationships (continued) Plant/Purchasing Organization (3) One purchasing organization for multiple plants Materials Management (MM) Plant P002 Plant P001 Purchasing Organization P001 June 2005 SAP AG and The Rushmore Group, LLC 2005 193 Organizational Relationships (continued) Plant/Purchasing Organization (4) One purchasing organization for multiple company codes Materials Management (MM) Company Code C002 Company Code C001 Purchasing Organization P001 Plant P002 Plant P001 June 2005 SAP AG and The Rushmore Group, LLC 2005 194 Purchasing Group Responsible for specified purchasing activities Often used to identify individual buyers Used for reporting
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 195 Organizational Relationships Purchasing Organization/Purchasing Group Materials Management (MM) Purchasing Group 002 Purchasing Group 001 Purchasing Organization P001 June 2005 SAP AG and The Rushmore Group, LLC 2005 196 Organizational Structure Materials Management (MM) Purchasing Organization P001 Company Code C001 Storage Location 20 - Quality Storage Location 10 - Inventory Plant P001 Purchasing Group 001 June 2005 SAP AG and The Rushmore Group, LLC 2005 197 Warehouse Management Not required for the purchasing functionality of SAP R/3 A separate module in the SAP R/3 environment Many functions and elements can be performed outside of the module
Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 198 Warehouse Management Elements Receiving, identifying and sorting goods Placing goods into storage bins Taking inventory Monitoring and inspecting goods in storage Preplanning distribution of materials Picking and accumulating orders Packaging, loading and shipping goods
Unit 5 June 2005 SAP AG and The Rushmore Group, LLC 2005 201 Business Process Integration Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 202 Master Data Master data is relatively fixed Material master data Vendor master data Purchasing information record General Ledger master data Before making the master data configurations, you must have completely defined the organizational structures
SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 203 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 204 Unit 5 Overview General Ledger Master Data Chart of Accounts Data Company Code Data Reconciliation Accounts Accounts Receivable Accounts Payable Goods Receipt/Invoice Receipt General Ledger Account Balances Financial Accounting (FI) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 205 General Ledger Master Data A unique master record is created for each General Ledger account General Ledger accounts are created at the client level Business transactions are posted to the portfolio of General Ledger accounts made available to a company through the assignment of a specific Chart of Accounts Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 206 General Ledger Master Data (continued) Contains control information for: Data entry Data processing Specifies the account type: Balance sheet Income statement Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 207 General Ledger Organization of the Data Contains one or more Chart of Accounts specific information areas Contains one or more Company Code specific information areas In this way, a General Ledger master account can be shared by several combinations of Charts of Accounts and Company Codes Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 208 General Ledger Chart of Accounts Data Account number Name of the Chart of Accounts Account group provides information that controls the creation of the master record for a company code Financial Accounting (FI) 100101 CPEN X BS Account number Chart of accounts
Account group P&L statement acct type Balance sheet account
June 2005 SAP AG and The Rushmore Group, LLC 2005 209 General Ledger Company Code Data Local currency Foreign currency Tax category Open item management Line item display Sort key
Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 210 General Ledger Company Code Data (continued) Local currency Specify the currency in which the account is to be posted Transaction figures are always updated and displayed in local currency Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 211 General Ledger Company Code Data (continued) Foreign currency Specify the alternative currency in which the account is to be posted It is possible to select up to two alternative currencies Transaction figures will be updated in both the local and alternative currencies Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 212 General Ledger Company Code Data (continued) Tax category Specify the type of tax on purchase and sales (input or output taxes) that can be posted to the account If the account is not tax relevant, do not make a specification in this field Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 213 General Ledger Company Code Data (continued) Open item management Indicates that the account is subjected to an affirmative clearing process involving the matching of debits to credits with the purpose of closing each individual line item For example, reconciliation accounts You can only archive an accounting document if all of its individual line items have been cleared Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 214 General Ledger Company Code Data (continued) Line item display Select if it is desirable to view all the debit and credit detail for the account Remember that when posting items to such accounts and displaying line items, additional storage space and system time are required Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 215 General Ledger Company Code Data (continued) Line item display should not be used for the following accounts: Reconciliation accounts Accounts that have a summation function and are analyzed by another application such as revenue or stock accounts Output and input tax accounts, since tax information is required only in connection with the document Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 216 General Ledger Company Code Data (continued) Sort Key Necessary when line item display is selected Determines the data field that will be used to sort the line items Posting date Document date Cost center Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 217 General Ledger Company Code Data (continued) Reconciliation accounts When you post to a sub-ledger, the system automatically concurrently posts to the corresponding reconciliation account in the general ledger In this way, the general ledger is automatically updated and remains in balance with the individual account totals Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 218 Subsidiary Ledger Accounts A/R, A/P, GR/IR General Ledger Reconciliation Accounts A/R, A/P, GR/IR
General Ledger Company Code Data (continued) General Ledger Debit Credit Debit Credit A/P Debit Credit A/R Debit Credit GR/IR $$ $$ $$ $$ $$ $$ $$ $$ Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 219 Accounts Receivable Reconciliation Account Financial Accounting (FI) Integration Accounts Receivable Reconciliation 950 300 Customer 142 150 Customer 123 400 Customer 135 100 Customer 189 Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 220 Accounts Receivable Integration FI Financial Accounting FI Financial Accounting Financial Accounting (FI) Integration FI Financial Accounting FI Financial Accounting MM Materials Mgmt. MM Materials Mgmt. Revenue Increase to A/R Goods Issue Sales Order Income Statement Balance Sheet FI Financial Accounting FI Financial Accounting CGS Decrease to Inventory Sales and Distribution (SD) SD Sales and Distribution June 2005 SAP AG and The Rushmore Group, LLC 2005 221 Accounts Payable Reconciliation Account Financial Accounting (FI) Materials Management (MM) Integration Accounts Payable Reconciliation 950 250 Vendor 100435 200 Vendor 100234 100 Vendor 100621 300 Vendor 100846 June 2005 SAP AG and The Rushmore Group, LLC 2005 222 Accounts Payable Integration MM Materials Mgmt. MM Materials Mgmt. FI Financial Accounting FI Financial Accounting FI Financial Accounting FI Financial Accounting Increase to A/P Goods Receipt Balance Sheet FI Financial Accounting FI Financial Accounting Increase to Inventory Financial Accounting (FI) Materials Management (MM) Integration Invoice Receipt MM Materials Mgmt. MM Materials Mgmt. June 2005 SAP AG and The Rushmore Group, LLC 2005 223 Line Item Display
Financial Accounting (FI) Account number 100999 Bank Account Company code C999 Period Debit Credit DC bal. Balance C/f bal. 750,000.00 Period 1 5,250.00 3,540.00 1,710.00 751,710.00 Period 2 25,000.00 15,000.00 10,000.00 761,710.00 Period 1 Doc. no. DT Doc.date Currency Amount 1500000013 KZ 01/05/04 USD 1,800.00 - 1500000014 KZ 01/06/04 USD 990.00 - 100000012 SA 01/08/04 USD 750.00 1400000342 DZ 01/14/04 USD 5,250.00 Unit 6 Materials Management (MM) - Master Data and Rules -
June 2005 SAP AG and The Rushmore Group, LLC 2005 225 Business Process Integration R u l e s
MM Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 226 Master Data Master data is relatively fixed Material master data Vendor master data Purchasing information record General Ledger master data Before making the master data configurations, you must have completely defined the organizational structures
SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 227 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solution s MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 228 Unit 6, Part 1 Overview (Master Data) Unit Concept Procure-to-Pay Process Vendor Master Data Purchasing Information Record
Integration Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 229 Unit Concept The purchasing process involves the acquisition of goods and services to support the creation of goods and services in the organization Master data and rules required for the purchasing process is presented Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 230 Materials Management (MM) Integration Procurement Process (Procure-to-Pay) Purchase Requisition Payment to Vendor Notify Vendor Vendor Shipment Invoice Receipt Goods Receipt Purchase Order 3- Way Matc h June 2005 SAP AG and The Rushmore Group, LLC 2005 231 Master Data General Business rules and supportive information are stored in master data records Each master data record is unique in name or number Internal or external number ranges are possible Usually created or converted (legacy system) in the beginning Maintained by numerous organizations
Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 232 Master Data General (continued) Vendor master records are maintained by both accounts payable (A/P) and purchasing Material master records are maintained by purchasing, sales, production, accounting, etc. Purchasing information records are maintained primarily by purchasing Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 233 Vendor Master Organization of the Data Integration Vendor 10001 General Data Company Code Data Financial Accounting (FI) Purchasing Organization Data (MM) Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 234 Vendor Master Data A master record must be created for every vendor General data, Company Code data (Financial Accounting - FI), and Purchasing Org data (Material Management - MM)
Materials Management (MM) Integration Purch. org data Purchasing data Partner functions
Company code data Account management Payment transactions General data Address Control data Payment transactions June 2005 SAP AG and The Rushmore Group, LLC 2005 235 Vendor Master Includes all data necessary for processing business transactions and corresponding with vendors Information is shared between the accounting and purchasing departments Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 236 Vendor Master Typical Screens Address Control Payment Transactions Accounting Information Correspondence Purchasing Data Partner Functions Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 237 General Data Address
Address Vendor Name Search Term Street address City, Region Postal code Country Communication Language Telephone, Fax, E-Mail Vendor Master General Data Address Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 238 Vendor Master General Data Control Data Account Control Customer Authorization Trading partner Group key Tax Information Tax codes Fiscal address Country code City code Reference Data / Area International locator number Industry Transport zone
Integration Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 239 Vendor Master General Data Payment Transactions Bank Details Bank Key Bank Account Account Holder Partner Bank Type Payment Transactions Alternative Payee Instruction Key
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 240 Vendor Master Company Code Accounting Information Accounting Information Reconciliation Account Sort Key Release Group Interest Calculation Interest Calculation Indication Interest Calculation Frequency Withholding Tax Withholding Tax Code Exemption Number
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 241 Vendor Master Company Code Payment Transactions Payment Data Payment Terms Tolerance Group Check Double Invoice Check Cashing Time Automatic Payment Transactions Payment Methods Alternate Payee Payment Block Invoice Verification Tolerance Group Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 242 Vendor Master Company Code Corr. Accounting Dunning Data Dunning Procedure Dunning Block Dunning Recipient Date of Legal Dunning Procedure Correspondence Local Processing Accounting Clerk Account With Vendor
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 243 Vendor Master Purch. Org. Data Purchasing Data Conditions Order Currency Terms of Payment Incoterms Minimum Order Value Sales Data Salesperson Control Data Acknowledgement Required Returns to Vendor Automatic Purchase Order Default Data Material Purchasing Group Planned Delivery Time
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 244 Vendor Master Purch. Org. Data Partner Functions Partner Functions Partner Function Partner Name
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 245 Vendor Master Purch. Org. Data Account Group Vendor masters are assigned to a vendor account group Through field status maintenance, vendor account groups can be setup for one-time vendors, regional vendors, and internal vendors The vendor account group controls both type and number range assignment for vendors Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 246 Unit 6, Part 2 Overview (Rules) Payment and Planning Plant Parameters MRP
Integration Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 247 Rules Defines the parameters for Master Data and Transactions Determines functionality for Master Data and Transactions Relatively fixed Changes as policy changes SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 248 Purchasing Info Record The purchasing info record provides continuously updated information about the relationship of a specific material with a specific vendor Order unit, price, price changes, tolerances, reminder infos, historic data, statistics, texts Choice of automatic or manual updating Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 249 Source List The source list stores information about where to acquire a given material for a given period of time It specifies whether this source should be used by Materials Requirement Planning (MRP) Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 250 Fiscal Period In order to execute any material postings, the current fiscal period has to be activated By initializing the company code for material management, the first major integration between Financial Accounting (FI) and Logistics is completed Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 251 Payment and Planning Payment Program Plant Parameters Material Requirements Planning (MRP)
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 252 Payment Program Invoice processing Partial or full payment requirements Automatic payments Manual payments Returns and credits (offset postings) Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 253 Plant Parameters Material Requirements Planning (MRP) controllers Individuals responsible for running and maintaining Material Requirements Planning data and reports Negative stock allowance If a material is allowed to go negative for inventory stock Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 254 Materials Management (MM) Plant Parameters (continued) Purchasing Special purchasing rules External purchasing only settings Planned orders Rescheduling Conversion to purchase requisitions
June 2005 SAP AG and The Rushmore Group, LLC 2005 255 Plant Parameters (continued) Document number ranges Planned orders Purchase requisitions Material Requirements Planning (MRP) lists Reservations
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 256 Material Requirements Planning Detailed planning level Primary Functions Monitor inventory stocks Determine material needs Quantity Timing Generate purchase or production orders
Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 257 Materials Requirements Planning (continued) Integrates Production Planning (PP) module with the Materials Management (MM) module Prerequisites for Materials Requirement Planning (MRP) Activate Material Requirements Planning (MRP) for a plant Material Master created Material Requirements Planning view Material Requirements Planning type Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 258 Material Requirements Planning Basic Process Exploding the Bill of Material (if using production) Netting Out Inventory Lot Sizing Time-phasing requirements Integration Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 259 Material Requirements Planning Net Requirements Material Requirements Planning (MRP) calculates the quantity of material needed, if any, based on Sales Orders Material Reservations Repair Parts Inventory Purchase Orders Etc Integration Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 260 Integration Materials Management (MM) Material Requirements Planning Net Requirements (continued) If adequate inventory is not available to meet Material Requirements Planning (MRP) needs then the system generates Planned Production Orders Planned Purchase Orders
June 2005 SAP AG and The Rushmore Group, LLC 2005 261 Material Requirements Planning Lot Sizing Static Based on fixed values in the Material Master Periodic Groups net requirements together from multiple periods Optimum Calculates the optimum lot size for a several periods of net requirements
Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 262 Unit 6, Part 3 Overview (Material Master) Material Type Industry Sector Maintenance Features Organizational Levels Primary Views Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 263 Material Master Data Material master data can be related to all organizational levels General information of a material (description, number, base unit of measure) Has to be related to the highest level of organization - the client Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 264 Material Master Material Type Material types group materials with the same attributes Material type information determines: What views are maintained Whether internal or external procurement is allowed If changes in material quantity are updated Which general ledger accounts are updated Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 265 Material Master Material Types Standard material types are used in all industries. ROH: Raw Materials Purchased externally only No sales view HAWA: Trading Goods Always purchased externally Sold without any change to the material No manufacturing views exist Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 266 Material Master Material Types (continued) FERT: Finished Products Are produced internally Normally no purchasing views exist
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 267 Material Master Additional Material Types HIBE: Operating Supplies VERP: Customer returnable packaging LEER: Empty containers KMAT: Configurable material ERSA: Spare parts DIEN: Services Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 268 Material Master Additional Material Types (continued) NLAG: Non-stock, non-valuated material UNBW: Non-valuated, stocked material FHMI: Production resources/tools WETT: Competitive products PROD: Product group IBAU: Maintenance assembly (Plant Maintenance) Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 269 Material Master Industry Sector Records are grouped according to industry sector and material type Determines the industry specific data that will appear on the master record Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 270 Material Master Maintenance Defaults - speeds entry of data by using the most frequently used field values (plant, purchasing organization, etc.) Reference Material - speeds entry of data by copying data from existing material master Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 271 Material Master Maintenance (continued) Profiles - speeds entry of data by copying standard data created in a profile into a selected view Materials Requirements Planning (MRP) Collective entry of storage location data - speeds creation of multiple storage locations Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 272 Material Master Levels Client Description Units of measure Material number Engineering data Plant Planning data Manufacturing data Purchasing data Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 273 Material Master Levels (continued) Storage Location Stock quantities Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 274 Material Master Views Basic data 1, 2 Classification Sales: sales organization data 1, 2 Sales: general/plant data Sales text Purchasing Purchase order text Forecasting Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 275 Material Master Views (continued) MRP 1, 2, 3, 4 Work scheduling Storage Warehouse management Quality management Accounting 1, 2 Costing 1, 2 Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 276 Material Master Material Management Basic Data Purchasing MRP 1,2,3 General Plant Data/Storage Accounting 1
Barrel Pen Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 277 Material Master Basic Data General data Basic Unit of Measure Unit of measure in which stocks of the material are managed Material Group Key that you use to group together several materials or services with the same attributes Division Used to determine the sales area and the business area for a material, product, or service
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 278 Material Master Basic Data (continued) Dimensions/EANs Gross weight Used to check storage capacity in warehouse Net weight Weight excluding packaging and extras this is needed for sales and distribution Weight Unit Unit of Measure for weight Volume The space that the material occupies per unit of volume
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 279 Material Master Purchasing View General Data Order Unit The unit of measure in which a company purchases the product Purchasing Group Key for a buyer or a group of buyers, who is/are responsible for certain purchasing activities. Purchasing Values Purchasing Value Key Define the reminder days and tolerance limits for purchasing Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 280 Material Master Plant Data/Storage 1 General Data Container Requirements Define the regulations that govern which type of container the material must be stored and shipped in Storage Conditions Defines the conditions on how a material must be stored or warehoused Shelf Life Data Minimum remaining shelf life Minimum time the material must keep upon goods receipt for the goods receipt to be accepted by the system Total Shelf Life Period of time the material will keep in total, from the date of production or receipt to the shelf life expiration date Integration Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 281 Material Master MRP 1 General Data Purchasing Group The buyer(s) who are responsible for certain purchasing activities MRP Procedures MRP Type Determines whether and how the material is planned Reorder Point If stock falls below this point, the system is flagged to create a planned order MRP Controller The person(s) responsible for the material planning Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 282 Material Master MRP 1 (continued) Lot Size Data Lot Size The lot sizing procedure to calculate the quantity to be produced or procured Minimum Lot Size The smallest order quantity Fixed Lot Size The quantity to be ordered Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 283 Material Master MRP 2 Scheduling Planned Delivery Time Number of calendar days needed to obtain the material Scheduling Margin Key Used to determine the floats required for scheduling Net Requirement Calculation Safety Stock Specifies the quantity whose purpose is to satisfy unexpectedly high demand in the coverage period
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 284 Material Master MRP 3 Availability Check Specifies whether and how the system checks availability and generates requirements for materials planning
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 285 Material Master Accounting 1 Current Valuation Valuation Class Allows the stock values of materials of the same material type to be posted to different G/L accounts. Allows the stock values of materials of different material types to be posted to the same G/L account. Determines together with other factors the G/L accounts updated for a valuation-relevant transaction (Material Movements) Price Unit Number of units to which the price refers
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 286 Material Master Accounting 1 (continued) Current Valuation Price Control Indicator The price control used to valuate the stock of a material (e.g, Standard or Moving Average Price) Standard Price The valuation of material stocks at standard prices means that all goods movements are valuated at the same price over an extended period Moving Average Price The system calculates the moving average price automatically by dividing the material value in the stock account by the total of all storage location stocks in the plant concerned Materials Management (MM) Financial Accounting (FI) - Rules -
Unit 7 June 2005 SAP AG and The Rushmore Group, LLC 2005 288 Business Process Integration R u l e s
FI Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 289 Rules Defines the parameters for Master Data and Transactions Determines functionality for Master Data and Transactions Relatively fixed Changes as policy changes SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 290 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 291 Unit 7 Overview Posting Periods Tolerance Groups for Account Postings Accounts Payable Settlement Document Numbers Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 292 Posting Periods Before it is possible to post documents, it is necessary to define posting periods Fiscal years are divided into one or more posting periods Each posting period is delimited by both a start and finish date A common division of a fiscal year involves defining 16 posting periods -- 12 months and 4 quarter ending posting periods
Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 293 Tolerances Groups for Account Postings Internal control amount limits that serve to define the maximum authorization levels for your employees Must be at least one entry for every company code Can be defined for an employee group with employees being assigned to a given group to effect the control Can be undefined at the group level meaning that the control is effective for everyone who is not a member of a group Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 294 Tolerances Groups for Account Postings (continued) Internal control amount limits that serve to define the maximum authorization levels for your employees with respect to: A single transaction A customer or vendor account line item Discount percentage granted to a line item Payment differences that can be accepted in settlement of an account (e.g., accounts payable) Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 295 Accounts Payable Settlement Financial Accounting (FI) Purchase Order Goods Receipt Invoice Receipt Debit Credit Payment Program Verification June 2005 SAP AG and The Rushmore Group, LLC 2005 296 Financial Accounting (FI) Accounts Payable Settlement (continued) Select payment method and bank Select items for payment Calculate the payment amount, taking account of cash discount periods Post the payment document Print payment medium
June 2005 SAP AG and The Rushmore Group, LLC 2005 297 Financial Accounting (FI) Document Numbers All posted transactions must have a unique number assigned to it Usually these numbers are system generated The numbers serve to specifically identify the business content of a transaction so that it may be recalled at a later time The actual system stored document number includes information respecting the year, date, and company codes
June 2005 SAP AG and The Rushmore Group, LLC 2005 298 Financial Accounting (FI) Document Numbers (continued) Before any documents can be posted to a company or company code, there must be a number range assigned to the document type New transaction document number ranges must be created at the start of each new fiscal year
Financial Accounting (FI) - Transactions -
Unit 8 June 2005 SAP AG and The Rushmore Group, LLC 2005 300 Business Process Integration FI Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 301 SAP Enterprise System R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solution s MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. June 2005 SAP AG and The Rushmore Group, LLC 2005 302 SAP Enterprise System Transaction Data Includes internal and external exchanges that describe business activities Unlike master data, aggregate transactional data is dynamic each transaction is unique
June 2005 SAP AG and The Rushmore Group, LLC 2005 303 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 304 Unit 8 Overview Document Principles Document Types Posting Keys Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 305 Financial Accounting (FI) Document Principles Each completed accounting transaction writes data to the database and creates a unique electronic document Each document contains information such as: Responsible person Date and time of the transaction Commercial content including company codes
June 2005 SAP AG and The Rushmore Group, LLC 2005 306 Financial Accounting (FI) Document Principles (continued) An accounting document captures the entire transaction in a manner that facilitates recall for reporting purposes It remains as a complete unit in the system until archived Once created, a document can not be deleted from the database
June 2005 SAP AG and The Rushmore Group, LLC 2005 307 Document Principles (continued) The SAP R/3 document principle provides a solid framework for a strong internal control system Audit trails allow an accountant to begin with an account balance on a financial statement and trace through the accounting records to the transactions that support the account balance or to trace individual transactions to the effected account balance(s) on a financial statement
Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 308 Financial Accounting (FI) Document Principles (continued) Each posted accounting document has a header June 2005 SAP AG and The Rushmore Group, LLC 2005 309 Financial Accounting (FI) Document Principles (continued) Each posted accounting document has at least two lines (e.g., debit and credit)
June 2005 SAP AG and The Rushmore Group, LLC 2005 310 Financial Accounting (FI) Document Types A way to categorize different transactions Many different document types are supplied in the system Document types are associated with number ranges All documents of the same document type are stored in the system by document number Determine the type of account that can be posted to
June 2005 SAP AG and The Rushmore Group, LLC 2005 311 Financial Accounting (FI) Document Types (continued) SA General ledger account documents DR Customer invoices DG Customer credit memos DZ Customer payments KR Vendor invoices KG Vendor credit memos KZ Vendor payments KN Vendor net invoices and credit memos
June 2005 SAP AG and The Rushmore Group, LLC 2005 312 Financial Accounting (FI) Posting Keys Determine whether the item to be posted is a debit or a credit Determine the type of account that can be posted June 2005 SAP AG and The Rushmore Group, LLC 2005 313 Financial Accounting (FI) The posting key (PK) has a control function that pertains to the document line items. It determines the following: Account type for posting the line item Debit or credit posting of line items Field status for additional information
Posting Keys (continued) June 2005 SAP AG and The Rushmore Group, LLC 2005 314 Financial Accounting (FI) Assets 70 75 General Ledger 40 50 Material 89 99 Customers 0 1 Vendors 2 3 Common Posting Keys Posting Keys (continued) Financial Accounting (FI) - Transactions -
Unit 9 June 2005 SAP AG and The Rushmore Group, LLC 2005 316 Business Process Integration FI Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 317 SAP Enterprise System Transaction Data Includes internal and external exchanges that describe business activities Unlike master data, aggregate transactional data is dynamic each transaction is unique
June 2005 SAP AG and The Rushmore Group, LLC 2005 318 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 319 Unit 9 Overview Monthly Rent Cycle Invoice Receipt Invoice Entry Accounts Payable Settlement Financial Accounting (FI) June 2005 SAP AG and The Rushmore Group, LLC 2005 320 Rental Agreement Accounts Payable Invoice Receipt Financial Accounting (FI) Monthly Rent Cycle June 2005 SAP AG and The Rushmore Group, LLC 2005 321 Invoice Receipt Financial Accounting (FI) Invoice Receipt Invoice Verification June 2005 SAP AG and The Rushmore Group, LLC 2005 322 Financial Accounting (FI) Invoice Header Line Items Vendor Information Invoice Entry Type of Transaction June 2005 SAP AG and The Rushmore Group, LLC 2005 323 Accounts Payable Settlement Select payment method and bank Select items for payment Calculate the payment amount, taking account of cash discount periods Post the payment document Print payment medium
- Rules - Unit 10 June 2005 SAP AG and The Rushmore Group, LLC 2005 325 Business Process Integration R u l e s
MM Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 326 Rules Defines the parameters for Master Data and Transactions Determines functionality for Master Data and Transactions Relatively fixed Changes as policy changes SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 327 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 328 Unit 10 Overview Reservations Tolerances Purchasing Goods Receipt Invoice Receipt Automatic Account Assignment Invoice Verification
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 329 Materials Management (MM) Reservations A request to have a material ready for issue at a future date for a production order, sales order, etc. The purpose of a reservation is to ensure that a material is available when required and not assigned to another use
June 2005 SAP AG and The Rushmore Group, LLC 2005 330 Materials Management (MM) Purchasing Tolerances A tolerance limit is set for allowed variance before a warning/error message is displayed Price variance Compares the price in the purchase order with the valuation price stored in the material master Maximum cash discount This tolerance limit is set to assure that cash discounts do not exceed allowable discounts
June 2005 SAP AG and The Rushmore Group, LLC 2005 331 Goods Receipts Tolerances Purchase order price quantity there are two tolerance levels maintained per item The maximum percentage variance before a goods receipt postings is not allowed A percent variance that generates a warning message but allows posting Moving average price variance the maximum allowable moving average price change allowed
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 332 Invoice Receipts Tolerances Many tolerance limits that can be configured for invoice receipts: price, quantity, and blanket purchase orders These tolerances include: Amount for item with or without order reference Form small differences automatically Percentage Over/Under Quantity Variance Exceed amount: quantity variance Blanket purchase order value and time limit Price variance
Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 333 Automatic Account Assignment Automatic account assignment is created to avoid manual postings of financial transactions which follow goods movements to reflect the values of transferred materials Automatic account assignment is used across all modules to keep track of the values of materials that are being consumed (e.g., production), or transferred into other valuation areas of the company Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 334 Automatic Account Assignment (continued) Automatic account assignment is a set of rules and master data which enable the financial tracking of logistics movement
Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 335 Automatic Account Assignment Components Components of Automatic Account Assignment Chart of Accounts Valuation Grouping Code Transaction Key Modifier for Transaction Key Valuation Class Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 336 Automatic Account Assignment Valuation Grouping Code Valuation grouping code - groups valuation areas together Example: valuation area is plant, five plants exist in the company, all five plants use the same accounts. Multiple valuation groups are possible Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 337 Automatic Account Assignment Valuation Grouping Code Materials Management (MM) Integration Plant P004 Plant P001 Grouping Code G001 Plant P003 Plant P002 Grouping Code G002 Plant P005 June 2005 SAP AG and The Rushmore Group, LLC 2005 338 Automatic Account Assignment Transaction Keys Transaction Keys The transaction keys are used to determine accounts or posting keys for line items which are created automatically by the system. The transaction keys are defined in the system.
Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 339 Automatic Account Assignment Transaction Keys Transaction Keys Inventory Postings BSX Offsetting Entry for Inventory Postings GBB Materials Management Small Differences DIF Cost (price) differences (PPV) PRD Goods receipt / inv. receipt clearing acct WRX
Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 340 Automatic Account Assignment Modifier Modifier modifies the transaction key for various movement types Blank Goods receipt from purchase order with account assignment VBR Goods issue to consumption VAX Goods issue to sales post to cost of goods sold AUF Goods receipt from a production order post to production settlement Etc. Many others Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 341 Material Types & Valuation Classes Account category reference: Builds the link between material types and the valuation class(es)
Material Type Account Category Reference Valuation Class ROH 0001 Reference for Raw Materials 3000/3001/3002/3003 HIBE 0002 Reference for Operating Supplies 3030/3031 HAWA 0005 Reference for Trading Goods 3100 FERT 0009 Reference for Finished Products 7920 Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 342 Material Types & Valuation Classes Materials Management (MM) Integration Material Type ROH (Raw Material) Acct Cat. Ref 0001 Raw Materials Valuation Class 3000 (Steel) Valuation Class 3001 (Paper) Valuation Class 3003 (Plastics) June 2005 SAP AG and The Rushmore Group, LLC 2005 343 Account 790000 Automatic Account Assignment P l a n t
P 0 0 1
Valuation Class 3100 (Trading Good) Grouping Code G000 Goods Movement GBB (Goods Issue) Account Modifier VBR (Iss. To Cons.) P l a n t
P 0 0 2
Valuation Class 3100 (Trading Good) Grouping Code G000 Goods Movement GBB (Goods Issue) Account Modifier VBR (Iss. To Cons.) P l a n t
P 0 0 3
Valuation Class 3100 (Trading Good) Grouping Code G001 Goods Movement GBB (Goods Issue) Account Modifier VBR (Iss. To Cons.) Account 790001 Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 344
Automatic Account Assignment What: Where Valued: Why 1: Why 2: Where Value is recorded: Material Valuation Area Goods Movement Additional Information Chart of Accounts Represented By: Valuation Class Valuation Grouping Code Transaction Event Key Account Modifier G/L Account Points To: Material Type Plant Materials Management (MM) Integration What: Where Valued: Why 1: Why 2: Where Value is recorded: BPEN000 Plant P001 Good Issue Issued to Consumption Chart of Accounts - C000 Represented By: 3100 G000 GBB VBR 790000 Points To: HAWA Plant P001 June 2005 SAP AG and The Rushmore Group, LLC 2005 345 Goods Receipt Materials can be received as stock items or non-stock items Receipt is possible from external or internal sources Individually / collectively Tolerance limits can be set for goods receipt Special movement type for initial inventory load
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 346 Goods Receipt (continued) Stock items can be received into restricted or unrestricted stock Non-stock items are received into orders, projects, cost centers Materials that are usually received into inventory can also be received into orders, projects, cost centers
Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 347 Invoice Verification Set parameters for invoice verification Quantity, price, receiving date, P/O quantity Updates material master if moving average price Automatic account assignment for price differences - if allowed Verify actual versus target
Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 348 3-Way Match Purchase order - Target quantity - - Target price - Goods receipt - Actual quantity - Invoice receipt - Actual price - Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 349 Accounts Payable Settlement Financial Accounting (FI) Purchase Order Goods Receipt Invoice Receipt Debit Credit Payment Program Verification Unit 11 Materials Management (MM) - Transactions -
June 2005 SAP AG and The Rushmore Group, LLC 2005 351 Business Process Integration MM Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 352 SAP Enterprise System Transaction Data Includes internal and external exchanges that describe business activities Unlike master data, aggregate transactional data is dynamic each transaction is unique
June 2005 SAP AG and The Rushmore Group, LLC 2005 353 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 354 Materials Management (MM) Integration Procurement Process (Procure-to-Pay) Purchase Requisition Payment to Vendor Notify Vendor Vendor Shipment Invoice Receipt Goods Receipt Purchase Order 3- Way Matc h June 2005 SAP AG and The Rushmore Group, LLC 2005 355 Basic Procurement Process Requirements Determination - Purchase Requisition Vendor Selection Order Processing - Purchase Order Order Tracking Goods Receipt and Inventory Management Invoice Verification Payment
Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 356 Purchase Requisitions Internal document Requesting a certain quantity of material or service on a certain date Can be created: Manually Automatically (Materials Requirements Planning (MRP), sales orders, etc.) Release approval procedures are optional
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 357 Purchase Requisitions Sources Manually created by user department Office supplies Projects Prototype materials Automatically created by Planning (Material Requirements Planning (MRP), Master Production Schedule (MPS)) Plant Maintenance Production Orders Sales Orders
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 358 Purchase Requisitions Processing Create purchase requisition (manually or automatically) Determine source of supply Release procedure (optional) Assign vendor and process
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 359 Purchase Requisitions Creating Default data for line items Delivery dates, plants, purchasing groups, etc. Maintain line item data Materials, quantities, delivery dates, etc. Maintain account assignment (if required) Cost center, General Ledger accounts, project number, etc. Check data Save
Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 360 Purchase Orders Purchase Orders are: A formal request to a vendor to provide materials or services An internal planning and tracking tool Purchase Orders identify: Vendor Material and/or service Quantity and price Delivery dates Terms of payment
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 361 Purchase Order Structure Header - information specific to the entire purchase order Vendor Currency Payment terms
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 362 Purchase Order Structure (continued) Line item details Account assignment Delivery schedule Materials or services quantity Price Description Item category
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 363 Purchase Order Request for Quotations Purchase Order Order Acknowledgment Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 364 Purchase Order Output Format Printed and mailed E-mail Electronic Data Interchange (EDI) Faxed (hardcopy or electronic) eXtensible Markup Language (XML) Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 365 Goods Receipt Goods receipt with reference to a purchase order Copy data from purchase order Delivery notification Invoice verification Updates purchase order history Inventory update Automatic update of General Ledger (G/L) accounts Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 366 Goods Receipt (continued) You can search for the purchase order number with Material number, vendor number, etc.
Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 367 Goods Receipt Destinations Stock - given a storage location, can be posted to three different stock statuses Unrestricted-use Quality inspection Blocked stock (valuated) Consumption - can be assigned a recipient or unloading point Goods receipt for blocked stock - updates inventory, but material is not valuated (conditional acceptance) Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 368 Goods Receipt Movement Types Movement types - stock transactions Goods receipt Goods issue Stock transfer Movement type determines which Quantity fields are updated Stock types are updated General Ledger (G/L) stock or consumption accounts are updated Fields are displayed during document entry Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 369 Goods Receipt Movement Types (continued) 101 - goods receipt for purchase order into warehouse/stores 102 - reversal of goods receipt for purchase order into warehouse/stores 122 - return delivery to vendor 501 - receipt w/o purchase order into unrestricted-use stock Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 370 Goods Receipt Account Postings Inventory account is debited at standard price Goods Receipt/Inventory Receipt (GR/IR) clearing account is credited at purchase order price Price difference account is debited (credited) with difference between standard price and purchase order price Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 371 Goods Receipt Effects Purchase Order (PO) history and Purchase Order (PO) updated Material Master - stock and value updated Notification of goods receipt issued (optional) Transfer request to Warehouse Management system (if active) Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 372 Materials Management (MM) Integration Goods Receipt Effects (continued) Material and financial documents created and/or updated Stock and consumption accounts updated Inspection notification in Quality Management (QM) - if active
June 2005 SAP AG and The Rushmore Group, LLC 2005 373 Invoice Verification Matches the vendors invoice to the purchase order and the goods receipt (3rd part of 3-way match) Matches price and quantity Updates the purchase order and its history Updates accounting information Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 374 Invoice Payment Selects invoices for payment based on the payment terms in the vendor master or purchase order Generates payment for released invoices Updates accounting information Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 375 3-Way Match for Payment Financial Accounting (FI) Purchase Order Goods Receipt Invoice Receipt Debit Credit Payment Program Verification June 2005 SAP AG and The Rushmore Group, LLC 2005 376 Accounts Payable Settlement Process Determines: Open items to be paid When they will be paid Bank from which payment will be made Payment medium Who will get paid Payment process creates a financial accounting document to record the transaction Materials Management (MM) Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 377 Goods Receipt / Invoice Receipt Reconciliation Account Purchase requisition Purchase order Materials Management (MM) and Financial Accounting (FI) via automatic account assignment Goods receipt No impact on Financial Accounting (FI) Dr Cr Inventory $100 Dr Cr GR / IR $100 Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 378 Goods Receipt / Invoice Receipt Reconciliation Account Amount owed is assigned and transferred to vendor account payable Invoice receipt Dr Cr Vendor A/P $100 Dr Cr GR / IR $100 Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 379 Vendor Payment Amount owed is paid to vendor and account payable is reduced Bank Dr Cr Vendor A/P $100 Dr Cr Bank $100 Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 380 Financial Accounting (FI) Materials Management (MM) Integration Points Invoice Receipt Payment Program Goods Receipt AP (Vendor) Dr Cr
GR / IR $100 Bank Dr Cr Inventory $100 $100 $100 Dr Cr Dr Cr Materials Management (MM) Integration $100 $100 June 2005 SAP AG and The Rushmore Group, LLC 2005 381 Automatic Account Assignment Debit posting $100 BSX - inventory posting to trading goods inventory account 201XXX Credit posting $100 WRX goods receipt posting to GR/IR account 310XXX Materials Management (MM) Integration Unit 12 Materials Management (MM) - Transactions - June 2005 SAP AG and The Rushmore Group, LLC 2005 383 Business Process Integration MM Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 384 SAP Enterprise System Transaction Data Includes internal and external exchanges that describe business activities Unlike master data, aggregate transactional data is dynamic each transaction is unique
June 2005 SAP AG and The Rushmore Group, LLC 2005 385 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 386 Unit 12 Overview A company may want to establish a long term purchasing relationship with a vendor Its is accomplished through a purchasing contract (outline agreement or blanket order) Purchases of that material from that vendor are then simplified and streamlined Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 387 Buyer/Supplier Relationships Four Types Antagonistic parties view each other as the enemy (lose/lose) Adversarial each party attempts to maximize their gain (win/lose) Cooperative parties understand the benefits of working together (win/win) Collaborative parties look for opportunities to create value (win/win)
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 388 Buyer/Supplier Relationships Long term partnerships are the objective of the supplier evaluation and selection process for contracts Traditional purchasing process Creates an environment of mistrust and low bidder mentality Leads to higher total purchasing costs Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 389 Supplier Evaluation and Selection Identify need for long term supplier contract Determine specific sourcing requirements Identify potential suppliers Determine method of evaluating suppliers Select supplier for contract Negotiate and execute contract Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 390 Benefits of Managing the Supply Base Contract with only world-class suppliers The fewer suppliers the lower the purchasing overhead Purchasing can pursue strategic sourcing issues, instead of clerical functions Streamline the supply chain Improved overall quality Improved delivery performance
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 391 Outline Agreement Long-term purchase agreements Outline agreements can be subdivided into the following types: Contracts Scheduling agreements Outline agreements can be subject to a release (approval or clearance) procedure
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 392 Contract Process Overview Step one is to identify and evaluate suppliers It may involve supplier development The goals are: Develop partnerships with good suppliers Reduce total cost of purchased materials and services Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 393 Contracting Questions How will potential suppliers be evaluated and selected? What procedures will be required to manage the contracts (and suppliers)? How will performance be measured? How many are too many suppliers? Too many suppliers cost money Supplier integration Collaborative agreements Supplier development Without material production shuts down What is the risk? Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 394 Contract Management Supplier performance metrics On-time delivery Material and/or service quality Returned materials Expedite issues Pricing analysis Problem resolution procedures Improve or else Continuous improvement process When to end the contract Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 395 Creating a Contract Is a long-term agreement with a vendor to provide a material or service For an agreed upon period of time At a negotiated price or quantity Can be created manually or with reference to purchase requisition, Request for Quote (RFQ)/quotation etc. Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 396 Two Types of Contracts Quantity contracts are agreements with a particular vendor to purchase a specific quantity of materials. Example: Target quantity of 50,000 meters of electrical wire at $2/meter. (MK) Value contracts are similar to quantity contract except the agreement is to purchase an established monetary value of materials. Example: Target value of $100,000 for electrical wire. (WK) Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 397 Quotations/Contracts Process Requirement for material is identified Process followed to select a vendor Request for Quotation (RFQ) Maintaining a Quotation Comparison of Prices Creating a Contract Creating a Release Order Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 398 Request for Quotation (RFQ) Is an invitation to a vendor to indicate their terms and conditions (in particular, their price) for the supply of a material or the provision of a service by submitting a quotation Identifies the required material, quantity, and delivery dates
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 399 Quotation A quotation contains the vendor's pricing and conditions for providing the material or service stated in the Request for Quotation (RFQ) In the SAP component Materials Management (MM) Purchasing, the RFQ and quotation are the same document. You enter the vendor's pricing and conditions in the original RFQ. Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 400 Maintaining a Quotation Enter each vendor's quotation in the associated Request for Quotation (RFQ) Compare prices using the price comparison list Store the best quote in an info record Optionally, send rejection letters to the losing bidders Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 401 Comparison of Prices You can compare the prices from all quotations from the competitive bidding process using the price comparison list The comparison list ranks the quotations by item from lowest to highest price
Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 402 Creating a Release Order Purchase order that references a contract is called a release orders, they specify: Number of the contract Quantity to be released Delivery date Release order documentation (open quantity, quantity released to date, total value) is automatically updated against the contract when a release order is created Materials Management (MM) June 2005 SAP AG and The Rushmore Group, LLC 2005 403 Creating a Release Order (continued) The vendor data, price data, and the delivery terms and conditions are copied directly to the release order Release orders can be created from a proposed purchase requisition generated off an Materials Requirement Planning (MRP) run (net requirements) Manually Automatically Materials Management (MM) Integration Unit 13 Sales and Distribution (SD) - Organizational Structures -
June 2005 SAP AG and The Rushmore Group, LLC 2005 405 Business Process Integration Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 406 Organizational Data A hierarchy in which the organizational units in an enterprise are arranged according to tasks and functions Are static data and are rarely changed The definition of organization units is a fundamental step, it is a critical factor in how the company will be structured SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 407 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 408 Components of Sales and Distribution Sales and Distribution (SD) Sales and Distribution (SD) Sales Support Sales Credit Mgmt. Shipping Transport Billing Foreign Trade Sales Information System Master Data June 2005 SAP AG and The Rushmore Group, LLC 2005 409 Sales Organization Sales Organization Sells and distributes products Negotiates terms of sales Responsible for these business transactions Critical organization element to the definition of business markets A sales transaction is linked to only one Sales Organization Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 410 Sales Organization (continued) US Sales S000 Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 411 Distribution Channel Identifies how products and services reach the customer Can be assigned to one or more Sales Organizations Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 412 Distribution Channel (continued) Sales and Distribution (SD) Retail Dist Channel (RE) Wholesale Dist Channel (WH) US Sales S000 June 2005 SAP AG and The Rushmore Group, LLC 2005 413 Division Often times used to define product line distribution Organization level to which customer specific information and requirements are maintained (e.g. pricing, partial delivery) Assigned to one or more Sales Organizations Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 414 Division (continued) Sales and Distribution (SD) Medical Division Chemical Division US Sales S000 June 2005 SAP AG and The Rushmore Group, LLC 2005 415 Sales Area Sales Area comprised of: Sales Organization Distribution Channel Division Will be used to link together the organizational aspects of sales to customers Used for statistical analysis Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 416 Sales Area (continued) Sales and Distribution (SD) Retail Dist Channel (RE) Wholesale Dist Channel (WH) US Sales S000 Medical Division Chemical Division Medical Division Chemical Division June 2005 SAP AG and The Rushmore Group, LLC 2005 417 Sales Area (continued) Sales and Distribution (SD) Retail Dist Channel (RE) Wholesale Dist Channel (WH) US Sales S000 Medical Division Chemical Division Medical Division Chemical Division June 2005 SAP AG and The Rushmore Group, LLC 2005 418 Internal Sales Organization Typically defines a territory or market Linked to one or more Sales Areas Optional organization structure Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 419 Sales Office Sales and Distribution (SD) Eastern Sales Western Sales US Sales S000 June 2005 SAP AG and The Rushmore Group, LLC 2005 420 Sales Group Sales Group Sub-division of a sales office, territory or market Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 421 Sales Person Sales Person Defined in Human Resources (HR) Personnel Admin. Specifically defines an individual rather than a position (sales rep.) in sales processing Integration Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 422 Internal Sales Organization Sales and Distribution (SD) Eastern Sales Western Sales US Sales S000 Northeast Sales Group Southeast Sales Group Northwest Sales Group Southwest Sales Group Salesperson 1 Salesperson 4 Salesperson 3 Salesperson 6 Salesperson 5 Salesperson 8 Salesperson 7 Salesperson 2 June 2005 SAP AG and The Rushmore Group, LLC 2005 423 Shipping and Loading Points Shipping Point Location that performs all delivery related activities Assigned a factory calendar A delivery can be processed from only one shipping point Loading Point A subdivision of the shipping point used for more specialized handling Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 424 Shipping Organization Sales and Distribution (SD) Plant P000 Freight Dock FD00 Express Dock ED00 Rail Dock RD00 Loading Point 3 Loading Point 2 Loading Point 1 Loading Point 4 Unit 14 Sales and Distribution (SD) - Master Data - June 2005 SAP AG and The Rushmore Group, LLC 2005 426 Business Process Integration
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 427 Master Data Master data is relatively fixed Material Master Data Vendor Master Data Purchasing Information Record General Ledger Master Data Before making the Master Data configurations, you must have completely defined the organizational structures
SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 428 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 429 Master Data Core Elements Integration
Material
Custome r
Pricing Master Data Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 430 Material Master Sales Views Sales: sales org. 1 Sales: sales org 2 Sales: general/plant Foreign trade export Sales: text
Barrel Pen Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 431 Material Master Sales: Sales Org. 1 View General Data Base Unit of Measure The Base Unit of Measure is the unit of measure in which stocks are managed within your company. Division You may enter the Division which your product is in for sales (defaults if entered in the Basic data screen). Material Group A key thats used to group several materials or services for analysis/reporting as well as search by match code. Sales Unit The unit of measure in which the material is sold, if left blank then uses the base unit of measure. Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 432 Material Master Sales: Sales Org. 1 View (continued) General Data (continued) Delivering Point Plant from which the material is available for sale. Cash discount Indicator used for materials, which allow for a cash discount. Conditions Pricing procedure for the material Tax Data Tax classification material The indicator with which the system determines output tax for the material when processing sales and distribution- specific documents
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 433 Material Master Sales: Sales Org. 1 View (continued) Quantity Stipulations Minimum Order Quantity Minimum quantity a customer may order. Minimum Delivery Quantity Minimum quantity that may be delivered to a customer Delivery Unit The delivery unit consists of a number and a unit of measure. In the case of a delivery unit of 30 pieces, 30, 60, 90, and so on pieces can be delivered, but not, however, 100 pieces.
Integration Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 434 Material Master Sales: Sales Org. 2 View Grouping Terms Material Statistics Group Determine which data the system updates in the logistics information system Material Pricing Group A way of grouping materials to which you want to apply the same conditions Volume Rebate Group Group definition used for rebate settlement. General Item Category Group Materials grouping that helps the system to determine item categories during sales document processing.
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 435 Material Master Sales: Sales Org. 2 View (continued) Grouping Terms Item Category Group A grouping of materials that the system uses to determine item categories during the processing of sales documents. Commission Group Commission group to which the material is assigned. Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 436 Integration Material Master Sales: General/Plant General Data Base unit The unit of measure in which items are managed in the company Gross weight Used to check storage capacity in warehouse Net weight Weight excluding packaging and extras this is needed for sales and distribution Available Check Option to do an availability check for orders and MRP Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 437 Integration Material Master Sales: General/Plant (continued) Shipping Data (times in days) Transportation Group Group materials that have the same transportation requirements. For example, bulk stock materials Loading Group Loading groups define materials that have the same loading requirements, such as forklift truck, or crane. Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 438 Integration Material Master Sales: General/Plant (continued) Packaging Material Data Material group Pack Materials Materials that require similar packaging materials
General Plant Parameters Negative stock Indicates if negative stocks of the material are allowed at the plant Profit Center Identifies the profit center in the current controlling area
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 439 Material Master Sales Texts View Sales Texts Exchange of information throughout the logistics chain In sales and distribution, this exchange of information is supported by texts in master records and documents You can define as many text types as you require (sales texts, shipping texts, internal notes, supplement texts etc.) for master records and documents
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 440 Master Data Core Elements Integration
Material
Custome r
Pricing Master Data Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 441 Customer Master Customer Master Data is created by Sales Area Sales Organization Distribution Channel Division
Sales and Distribution (SD) US Sales S000 Distribution Channel - RE Division - 01 Sales Area June 2005 SAP AG and The Rushmore Group, LLC 2005 442 Customer Master (continued) Integration Customer 43 General Data Company Code Data Financial Accounting (FI) Sales Data Sales and Distribution (SD) Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 443 Customer Master A master record must be created for every customer General data, Company Code data (Financial Accounting - FI), and Sales Org. data (Sales and Distribution - SD)
Integration Sales Org. data Sales Shipping Billing Partner Usage Company Code data Account Mgmt Payment transactions Correspondence General data Address Control data Payment transactions Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 444 General Data Address
Address Customer Name Search Term Street address City, Region Postal code Country Communication Language Telephone, Fax, E-Mail Customer Master General Data Address Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 445 Customer Master General Data Control Data Account Control Vendor Authorization Trading partner Group key Tax Information Tax codes Fiscal address Country code City code Reference Data / Area
Integration Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 446 Customer Master General Data Payment Transactions Bank Details Country Bank Key Account holder Bank Account Control Key Collection
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 447 Customer Master General Data Marketing Classification Nielsen ID Customer classification Industry Industry codes Operating Figures Annual sales Number of employees Fiscal year variant Sales Prospecting Legal status
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 448 Customer Master General Data Unloading Point Unloading Points Unloading point Default Calendar key Default Unloading Point Goods receiving hours
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 449 Customer Master General Data Foreign Trade Export Data Country key TDO Date (Table of Denial Orders) SDN Date (Specially Designated Nationals) Boycott Date Usage Mainly civilian usage Mainly military usage Classification Biochemical warfare Nuclear nonproliferation National security
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 450 Customer Master General Data Contact Persons Contact Person Name First name Department Function
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 451 Customer Master Company Code Accounting Information Accounting Information Rec. Account Sort key Head office Interest Calculation Interest indicator Interest cycle Interest calculation frequency in months Last interest run Reference Data Previous account number Buying group
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 452 Customer Master Company Code Payment Transactions Payment Data Terms of Payment Tolerance group Automatic Payment Transactions Payment methods Payment block Alternative payer Grouping key Lockbox
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 453 Customer Master Company Code Correspondence Dunning Data Dunning procedure Dunning block Dunning recipient Correspondence Accounting clerk Acct at customer Customer user Payment Notices To Customer Sales Accounting Legal
Integration Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 454 Customer Master Company Code Insurance Export Credit Insurance Policy Number Institution Number Amount Insure Valid Until Lead Months Deductible
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 455 Customer Master Sales and Distribution Sales Sales Order Sales District Sales Office Sales Group Order Probability Item Proposal Pricing / Statistics Price Group Customer Pricing Procedure Price List Type Customer Statistical Group
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 456 Customer Master Sales and Distribution Shipping Shipping Delivery Priority Shipping Conditions Delivering Plant Order Combination Partial Delivery Complete Delivery Required By Law Partial Delivery per Item Max Part Deliveries Under-delivery Tolerance Over-delivery Tolerance General Transportation Data Transportation Zone
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 457 Customer Master Sales and Distribution Billing Billing Section Subs. Invoice Processing Rebate Price Determination Invoicing Dates Invoice List Dates Delivery and Payment Terms Incoterms Payment Terms Accounting Account Assignment Group Taxes Tax Classification
Integration Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 458
Customer Master Sales and Distribution Partner Functions Partner(interlocutor) Functions Partner Function (PF) Number Partner Description
Sample Listing of Partner Functions Types SP Sold-to-party BP Bill-to-party PY Payer SH Ship-to-party Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 459 Business Partners Defines all of the parties involved in a business transaction Differentiates between their roles Customer Carrier Employees Etc. Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 460 Business Partners The system will automatically assign a business partner to the customer master and to any transaction There are four default business partner Sold-to Ship-to Bill-to Payer They may be the same or different. More business partners can be added to carry out additional business transactions Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 461 Customer Account Group Customer masters are assigned to a customer account group Through field status maintenance, account groups can be setup for one-time customers, regional customers, internal The customer account group controls both type and number range assignment for customers Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 462 Field Status Field status controls the use of each field within the customer master determining whether a field is required, optional, suppressed or display only Field status controls are also relevant to a specific activity create, change, or display Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 463 Business Partners Sold-to Party Customer who orders Can default for all partner functions sold-to, ship-to, payer, bill-to Primary type of business partner Independent and cannot be linked to other sold-to partners Sales and Distribution (SD) Sold-to Ship-to Bill-to Payer June 2005 SAP AG and The Rushmore Group, LLC 2005 464 Business Partners Ship-to Party (continued) Receive delivery Can be linked to more than one sold-to address Sales and Distribution (SD) Sold-to Ship-to Bill-to Payer June 2005 SAP AG and The Rushmore Group, LLC 2005 465 Business Partners Bill-to Party Partner who is delivered the invoice Can be linked to more than one sold-to address Sales and Distribution (SD) Sold-to Ship-to Bill-to Payer June 2005 SAP AG and The Rushmore Group, LLC 2005 466 Business Partners Payer Partner who pays the bill Can be linked to more than one sold-to address Sales and Distribution (SD) Sold-to Ship-to Bill-to Payer June 2005 SAP AG and The Rushmore Group, LLC 2005 467 Single and Multiple Ship-to Parties Single ship-to Multiple ship-tos Single payer Sales and Distribution (SD) Payer: 10 Bill-to: 10 Ship-to: 10 Sold-to: 10 Payer: 10 Bill-to: 10 Ship-to: 10 Sold-to: 10 Ship-to: 11 June 2005 SAP AG and The Rushmore Group, LLC 2005 468 Business Partners Sales and Distribution (SD) Sold-to Bill-to Payer Ship-to Ship-to Ship-to Ship-to Ship-to Ship-to Sold-to Unit 15 Sales and Distribution (SD) - Master Data - June 2005 SAP AG and The Rushmore Group, LLC 2005 470 Business Process Integration June 2005 SAP AG and The Rushmore Group, LLC 2005 471 Master Data Master Data is relatively fixed Material Master Data Vendor Master Data Purchasing Information Record General Ledger Master Data Before making the Master Data configurations, you must have completely defined the organizational structures
SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 472 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 473 Master Data Core Elements Integration
Material
Custome r
Pricing Master Data Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 474 Pricing Highly touted world-class functionality Very easily tailored to meet business needs A very robust module in SAP Gross to net pricing for material
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 475 Standard Pricing Process Standard Pricing Calculates the gross price Then applies Discounts Surcharges Applicable Taxes Calculates the final price Final price = gross price - discounts + surcharges + taxes Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 476 Cost-Plus Pricing Process Cost-plus pricing Captures the base cost Then applies Markup Discounts Surcharges Applicable Taxes Calculates the final price Final price = cost + markup - discounts + surcharges + taxes
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 477 Pricing Components Pricing uses tables to match the condition of order to the applicable pricing routine These routines can Add/Subtract amounts, percentages Give dollar, weight, quantity breaks/additions Accrue
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 478 Pricing Procedure Pricing uses one of possibly many procedures based upon Item Customer Order type Sales Area The procedure will then apply Prices (Gross) Discounts & Surcharges Freight Taxes
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 479 Pricing Procedure (continued) Pricing conditions for each item on the order Pricing condition uses Pricing procedure Access sequence Conditions type Determines adjustments and price
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 480 Line Item in Sales Order Pricing Procedure Determination Pricing Procedure Contains List of Condition Types Condition Types Point to Access Sequence Access Sequence Provides the Search Order for Pricing Sales Area S000-RE-01 Doc. Pric. Proc. OR=A Cus. Pric. Proc. 43 = 1 PPEN000 Condition Type PR00 = Price Access Sequence PR02 = Price 10 Customer/material 20 Price list cat./currency/material 30 Material
30 Material Price = $9.50 Pricing Procedure = RVAJUS Pricing Process Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 481 Sales Org. Dist. Chan. Div Doc. PP Cust. PP Price Prod. 0001 01 01 A 1 RVAA01 0001 01 01 A 2 RVAB01 0001 01 01 B 1 RVWIA1 0001 01 01 C 1 RVCA01 S000 RE 01 A 1 RVAJUS S000 WH 01 A 1 RVAJUS Price Prod. Ctyp Description Acces seq. RVAJUS PR00 Price PR02 PB00 Price (Gross) KA00 Sales deal K305 K007 Customer Discount K307 K004 Material K304 K005 Customer/Material K305 Access Seq. Access No. Description PR02 10 Customer/material with release status 20 Price list cat./cur/mat with rel status 30 Material with release status K305 10 Customer/material with release status K307 10 Customer with Release Status K304 10 Material with release status Line Item Pricing Proced. Det. CTyp points to Access Seq. Access Seq. points to Cond. Tbls. Cond. Tbls. contain the Item Pricing PPEN000 Sales Area Doc. PP Cust. PP PR00 Points to PR02 PR02 Points to Cond. Tables Cust. / Mat. Price List / Cur / Mat. Material N / A N / A $ 9.50 Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 482 Price Agreements Standard price agreements Product Customer Customer & material Customer group & material group Detailed price agreements Pricing scales Rebates Customer expected price Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 483 Credit Limits and Checking Define automatic credit limit checks to your companys requirements You can also define at what point the system carries out these checks (order, delivery, goods issue, and so on) A credit representative is automatically alerted to a customers critical credit situation as soon as order processing starts Employees can be automatically notified of critical credit situations via internal mail Integration Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 484 Credit Limits and Checking (continued) Credit representatives are able to check a customers credit situation to decide whether the customer should be granted credit Works in distributed systems Central financial accounting Non-central sales and distribution on several sales and distribution computers Integration Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 485 Credit Check You can use this function at any time within service processing to call up information about the current credit status of a customer Credit limit can be checked manually or automatically The system generally checks the planned costs without tax If a customer has exceeded their credit limit, the system issues a warning Integration Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 486 Credit Check (continued) The checks can be carried out at various times during the sales order cycle, from order receipt to delivery You can define a credit check for any valid combination of the following data: Risk category Document credit group Credit control area
Integration Sales and Distribution (SD) Unit 16 Sales and Distribution (SD) - Rules - June 2005 SAP AG and The Rushmore Group, LLC 2005 488 Business Process Integration R u l e s
SD Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 489 Rules Defines the parameters for Master Data and Transactions Determines functionality for Master Data and Transactions Relatively fixed Changes as policy changes SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 490 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 491 Assign Sales Area to Pricing Procedure Pricing Procedure Assignment uses a combination of: Sales Area Document Pricing Procedure Customer Pricing Procedure
Each combination of these has a pricing procedure assigned Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 492 Availability Check In determining the material availability date the system can include specific stocks if selected, such as: Safety stock Stock in transfer Quality inspection stock Blocked stock Restricted use stock All movements of stock
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 493 Credit Checking Static Credit Limit Check Open Orders Open Deliveries Open Billing documents Open Items (accounts receivable) Dynamic credit limit with credit horizon check (future dates) Credit check to maximum document value (per order)
Integration Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 494 Shipping Functions Shipping Point Determination The shipping point is selected for each line item based on the shipping point determination process Shipping point based on: Shipping condition Loading group Delivering plant Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 495 Shipping Functions (continued) Route Definition Delivery method and the transit time Dummy routes can be used to easily define transit time Route Determination Proposed route is chosen using Shipping point Destination country Transportation zone Shipping condition Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 496 Revenue Assignment Determination Transfers billing values from the Sales and Distribution to Finance Used to recognize revenue Keys used to allocate revenue to the proper account Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 497 Automatic Account Assignment Defines the G/L accounts that billing entries are posted to revenue, sales deductions, surcharges, freight charges, etc. Application V Sales Condition Type KOFI Condition Tables Chart of Accounts C001 Sales Document Sales Organization S001 Sales Document Customer Account Group 01 Customer Master Account Key ERL Pricing Procedure General Ledger Account 600999 Chart of Accounts Integration Sales and Distribution (SD) Unit 17 Sales and Distribution (SD) - Transactions - June 2005 SAP AG and The Rushmore Group, LLC 2005 499 Business Process Integration SD Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 500 SAP Enterprise System Transaction Data Includes internal and external exchanges that describe business activities Unlike master data, aggregate transactional data is dynamic each transaction is unique
June 2005 SAP AG and The Rushmore Group, LLC 2005 501 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 502 Document Types Inquiry Quotation Returns Contract Sales Order Cash Sales Consignment Scheduling Agreement Rush Order Debit Memo Returnable Packaging Credit Memo Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 503 Order Processing Functionality Delivery scheduling Availability check Transfer of requirements to Material Requirements Planning Pricing Credit check Shipping point and route determination Foreign trade and license processing Document flow Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 504 Delivery Scheduling Automatic scheduling of essential shipping activities Calculated using defined activity times Resulting in scheduled activity dates Determined using backward and forward scheduling rules Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 505 Delivery Scheduling (continued) Structure of sales documents Header Line Item # 1 Line Item # 2 Schedule Line # 1 Schedule Line # 1 Schedule Line # 2 Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 506 Delivery Scheduling Terminology Transportation lead time Time required to schedule transportation Pick/Pack time Time required for picking and packing Load time Time required to load Transit time Time required to transport goods from shipping point to ship-to Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 507 Backward Scheduling Requested Delv. Date Goods Issue
Loading Material Availability Order Date Transp. Sched. Transit Time (2 days) Loading Time (1 day) Pick & Pack Time (2 days) Transp. Sched. Time (1 day) 2nd 3rd 4th 5th 6th 1st Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 508 Forward Scheduling Transit Time (2 days) Loading Time (1 day) Transp. Sched. Time (1 day) New Delv. Date 1st 3rd 4th 5th 6th 2nd Pick & Pack Time (2 days) 7th Requested Delv. Date Goods Issue Loading Material Availability Order Date Transp. Sched. Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 509 Availability Check Determines the material availability date Considers inward and outward movement of inventory customizable Influences partial deliveries by Proposing a quantity that can be delivered on the requested date (complete delivery) Determines earliest date for full delivery Determines the number and dates for partial deliveries to fulfill the order Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 510 Availability Check (continued) In determining the material availability date the system can include specific stocks if selected, such as: Safety stock Stock in transfer Quality inspection stock Blocked stock Restricted use stock All movements of stock
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 511 Transfer Requirements to Material Requirements Planning Ordered quantities are passed to Material Requirements Planning Controlled by the schedule line category Blocking of documents can affect requirements passing delivery block Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 512 Pricing Highly touted world-class functionality Very easily tailored to meet business needs A very robust module in SAP Gross to net pricing for material
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 513 Credit Check Efficient means to implement credit management Integrated with Financial Accounting (FI) - - Via credit control area Automatically alerts when a credit check fails Comprehensive credit management reporting Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 514 Shipping Point and Route Determination A shipping point is determined for each line item shipping point determination A delivery can only be processed from one shipping point Routes - route to be traveled & transit time are determined using customized rules Routes can be used to simply define transit time Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 515 Foreign Trade and License Processing Predefined trade areas NAFTA, EU Automated reporting for trade areas Automated controls License management Embargo lists Control by customer, country, product, point in time Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 516 Document Flow The document flow feature allows you to find the status of an order at any point in time. The SAP system updated the order status every time a change is made to any of the documents created in the customer order management cycle (Order to Cash).
Sales and Distribution (SD) Unit 18 Sales and Distribution (SD) - Transactions -
June 2005 SAP AG and The Rushmore Group, LLC 2005 518 Business Process Integration SD Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 519 SAP Enterprise System Transaction Data Includes internal and external exchanges that describe business activities Unlike master data, aggregate transactional data is dynamic each transaction is unique
June 2005 SAP AG and The Rushmore Group, LLC 2005 520 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 521 Material Listing and Exclusion Inclusions or exclusions (availability) of material for a customer or a customer group Material Listing products that can be sold Material Exclusion products that cannot be sold Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 522 Product Substitution Material Determination Substitution of materials during sales order processing Automatic Manual Examples: Substitute a standard product with an appropriate replacement material Substitute based on a customer preference Substitute based on selection list (manual) Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 523 Customer Material Info Record Data on a material defined for one specific customer is stored in the customer material information records Customer-specific material number Customer-specific material description Customer-specific data on deliveries and delivery tolerances
Sales and Distribution (SD) Unit 19 Sales and Distribution (SD) - Transactions -
June 2005 SAP AG and The Rushmore Group, LLC 2005 525 Business Process Integration SD Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 526 SAP Enterprise System Transaction Data Includes internal and external exchanges that describe business activities Unlike master data, aggregate transactional data is dynamic each transaction is unique
June 2005 SAP AG and The Rushmore Group, LLC 2005 527 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 528 Scheduling Agreements Defines specific product quantities and delivery dates for a customer Schedule lines and processed through standard delivery processing Availability check is performed during creation and quantities are passed to MRP System automatically updates delivered quantities Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 529 Scheduling Agreements (continued) Delivery 02/10 150 Delivery 05/10 150 Delivery 08/10 150 Delivery 11/10 300 Scheduling Agreement
Date Qty 02/15 150 05/15 150 08/15 150 11/15 300 Sales and Distribution (SD) Unit 20 Sales and Distribution (SD) - Transactions -
June 2005 SAP AG and The Rushmore Group, LLC 2005 531 Business Process Integration SD FI MM SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 532 SAP Enterprise System Transaction Data Includes internal and external exchanges that describe business activities Unlike master data, aggregate transactional data is dynamic each transaction is unique
June 2005 SAP AG and The Rushmore Group, LLC 2005 533 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 534 Item Proposal Frequently occurring combinations of material and quantities used by a customer System can suggest the item proposal during order entry Transferred into a sales order document Selected from a selection list Can be assigned to more than one customer master records
Sales and Distribution (SD) Unit 21 Sales and Distribution (SD) - Transactions -
June 2005 SAP AG and The Rushmore Group, LLC 2005 536 Business Process Integration SD FI MM SAP Enterprise System June 2005 SAP AG and The Rushmore Group, LLC 2005 537 SAP Enterprise System Transaction Data Includes internal and external exchanges that describe business activities Unlike master data, aggregate transactional data is dynamic each transaction is unique
June 2005 SAP AG and The Rushmore Group, LLC 2005 538 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 539 Shipping Overview Comprehensive functionality to support picking, packing and loading functions Work list and deadline monitoring Functions with backorder processing Tightly coupled to the MM and FI modules Facility for transportation management
Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 540 Shipping Overview (continued) Sales and Distribution (SD) Order Combination Order 1 Order 2 Order 3 Delivery 812 Partial Delivery Order 4 Delivery 813 Delivery 814 Delivery 815 Complete Delivery Order 5 Delivery 816 June 2005 SAP AG and The Rushmore Group, LLC 2005 541 Shipping Overview (continued) Delivery creation activities checks order and materials to determine if a delivery is possible delivery block, incompleteness confirms availability confirms export/foreign trade requirements determines total weight & volume Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 542 Shipping Overview (continued) Delivery creation activities generates packing proposal considers partial deliveries updates route assignment assigns picking location determines lot batches updates sales order: status, delivery qty Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 543 Delivery Notes Initiates the delivery process Control mechanism for the process Changes to delivery are allowable - products, quantities Picking Packing Loading Post Goods Issue Delivery Note Each step in the delivery process updates the delivery note status Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 544 Delivery Due List Produces a work-list of deliveries Encompasses deliveries and transfers Can be scheduled to run in batch Automatically combines deliveries Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 545 Picking Quantities based on delivery Assigned date when picking should begin Automated storage location assignment Supports serial number tracking and batch management Integrated with Warehouse Management (WM) Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 546 Packing Identifies which packaging is to be used for specified products Identifies and updates accounts associated with returnable packaging Tracks the packed product by container Insures weight/volume restrictions are enforced Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 547 Goods Issue Event that indicates the change in ownership of the products Reduces inventory Automatically updates the G/L accounts Ends the shipping process and prevents changes to the shipping documents Integration Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 548 Integration General Ledger Goods Issue (continued) Sales and Distribution (SD) Cost of Goods Sold 1000 Debit Credit Inventory 1000 Debit Credit June 2005 SAP AG and The Rushmore Group, LLC 2005 549 Billing Overview Automated invoicing based on sales orders and/or deliveries Functionality for processing credit/debit memos and rebates Integration with Financial Accounting (FI) and Controlling (CO) Updates customers credit data Can create pro forma invoices Integration Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 550 Billing Overview (continued) Integration Sales Invoice
Sold To: Rushmore Group
Sales Org: S001 Dist Channel: RE Division: 01
Conditions/Price: $500 Sales and Distribution (SD) General Ledger Account Assignment
Debit Credit Customer A/R Recon 500 Revenue Debit Credit Debit Credit 500 500 June 2005 SAP AG and The Rushmore Group, LLC 2005 551 Billing Methods Integration Sales and Distribution (SD) Collective Invoicing Delivery based Invoicing Delivery 834 Delivery 833 Order 14 Order 9 Delivery 856 Invoice 968 Order 6 Delivery 820 Delivery 821 Invoice 945 Invoice 946 Split Invoicing Order 32 Delivery 886 Invoice 992 Invoice 991 June 2005 SAP AG and The Rushmore Group, LLC 2005 552 Billing Plans Periodic total amount for a planned billing period Milestone distributing the total amount over multiple billing dates - typically used with the project system (PS) Installment evenly proportioned amounts and defined payment dates Resource related consumed resources such as service or consulting Integration Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 553 Billing Documents Explicitly specify documents Billing due list builds a work list of invoices that should be generated Automatic posting to Financial Accounting (FI) Integration Sales and Distribution (SD) Unit 22 Sales and Distribution (SD) - Transactions -
June 2005 SAP AG and The Rushmore Group, LLC 2005 555 Business Process Integration SD FI MM June 2005 SAP AG and The Rushmore Group, LLC 2005 556 SAP Enterprise System Transaction Data Includes internal and external exchanges that describe business activities Unlike master data, aggregate transactional data is dynamic each transaction is unique
June 2005 SAP AG and The Rushmore Group, LLC 2005 557 R/3 FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt. Sales and Distribution (SD) June 2005 SAP AG and The Rushmore Group, LLC 2005 558 Customer Return Customer Return Order received Integration Goods Receipt Create Credit Memo Sales and Distribution (SD) Quality Inspection Payment to Customer Delivery Note June 2005 SAP AG and The Rushmore Group, LLC 2005 559 Customer Return (continued) Integration Sales and Distribution (SD) 1 2 3 Order 14 Delivery 856 Return Order Return Delivery Invoice 968 Payment Credit Memo Quality Inspection Return to Inventory June 2005 SAP AG and The Rushmore Group, LLC 2005 560 Customer Return (continued) Returns document Billing block can be proposed Use the Order reason field to identify the reason for the return Full access to pricing and ability to re-price Return delivery Issues a goods receipt to place material into inventory Integration Sales and Distribution (SD) The End!