Session 8 & 9

Session 8 & 9

Business Processes, Integration and Configuration in the SAP R/3

Environment

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!!

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

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 R/3 andBusiness Processes

- Overview -

Pen Incorporated Procure for Sales Order

SAP Enterprise System

Pre-Sales

Activity

Sales Order

Delivery BillingAccounts

Receivable

Accounts Payable

General Ledger

Accounts

Purchase Requisitio

n

Purchase Order

Goods Receipt

In Inventory

Plant or Warehouse

Invoice Receipt

Inventory Postings

Availability Check

NO

YES

Goods to Delivery

Goods from Purchase Order

Pen Incorporated Produce for Sales Order


Pre-Sales

Activity

Sales Order

Delivery BillingAccounts

Receivable

Production Order

Settlement

General Ledger

Accounts

Planned Order

Production Order

Completion Confirmation

In Inventory

Plant or Warehouse

Inventory Postings

Availability Check

NO

YES

Goods Issued to Delivery

Goods from Production Order


R/3

FIFinancial

AccountingCO

Controlling

PSProjectSystemWF

WorkflowIS

IndustrySolutions

MMMaterials Mgmt.

HRHuman

Resources

SDSales and

Distribution

PPProductionPlanning

QMQualityMgmt. PM

Plant Maintenance

SMServiceMgmt.

Client / ServerIntegrated Business

Solution

ECEnterpriseControlling

AMFixed Assets

Mgmt.

Logistics• Materials Management (MM)

• Sales and Distribution (SD)

• Production Planning (PP)

• Quality Management (QM)

• Plant Maintenance (PM)

• Service Management (SM)



Accounting and Finance• Financial Accounting (FI)

• Treasury (TR)

• Managerial Accounting (CO)

• Enterprise Controlling (EC)

• Investment Management (IM)

• Project Systems (PS)


Human Resources

• The Human Resources (HR) application component is a complete integrated system for supporting the planning and control of personnel activities

R/3

FIFinancial

AccountingCO

Controlling

PSProjectSystemWF

WorkflowIS

IndustrySolutions

MMMaterials Mgmt.

HRHuman

Resources

SDSales and

Distribution


QMQualityMgmt. PM

Plant Maintenance

SMServiceMgmt.


Solution


AMFixed Assets

Mgmt.

Materials Management (MM)

Components of Materials Management

Materials Management (MM)

MaterialsManagement

(MM)

LogisticsInvoice

Verification

MaterialMaster

PhysicalInventory

Valuation

MRP

ServiceEntrySheet

ServiceMaster

ProductCatalog

Purchasing

InventoryMgmt.

ForeignTrade/

Customs

Materials Management (MM) Integration

Procurement Process (Procure-to-Pay)

Purchase Requisition

Paymentto Vendor

Notify Vendor

VendorShipment

InvoiceReceipt

GoodsReceipt

Purchase Order

R/3

FIFinancial

AccountingCO

Controlling

PSProjectSystemWF

WorkflowIS

IndustrySolutions

MMMaterials Mgmt.

HRHuman

Resources

SDSales and

Distribution


QMQualityMgmt. PM

Plant Maintenance

SMServiceMgmt.


Solution


AMFixed Assets

Mgmt.

Production Planning (PP)

Components of Production Planning


Components of Production Planning


ProductionPlanning

(PP)

ProductionPlanning

SOP

CapacityPlanning

MRP

ProductCost

Planning

RepetitiveMfg.

ProductionControl

KANBANMasterData

DRP

Production Planning (PP) Integration

Scheduleand Release

Shop FloorDocuments

Goods Receipt

Order Settlement

GoodsIssue

ProductionProposal

(Planning/Other)

CompletionConfirmation

Capacity Planning

Production Process (Make-to-Stock)

R/3

FIFinancial

AccountingCO

Controlling

PSProjectSystemWF

WorkflowIS

IndustrySolutions

MMMaterials Mgmt.

HRHuman

Resources

SDSales and

Distribution


QMQualityMgmt. PM

Plant Maintenance

SMServiceMgmt.


Solution


AMFixed Assets

Mgmt.

Sales and Distribution (SD)

Components of Sales and Distribution

Sales and Distribution (SD)

Sales andDistribution

(SD)

SalesSupport

Sales

CreditMgmt.

ShippingTransport

Billing

ForeignTrade

SalesInformation

SystemMasterData

Sales Order Process(Order-to-Cash)

IntegrationSales and Distribution (SD)

Sales OrderEntry

Post Goods Issue

Invoice Customer

Pick Materials

Receipt ofCustomer Payment

Pack Materials

Check Availability

R/3

FIFinancial

AccountingCO

Controlling

PSProjectSystemWF

WorkflowIS

IndustrySolutions

MMMaterials Mgmt.

HRHuman

Resources

SDSales and

Distribution


QMQualityMgmt. PM

Plant Maintenance

SMServiceMgmt.


Solution


AMFixed Assets

Mgmt.

Financial Accounting (FI)

Financial Accounting (FI)

Components of Financial Accounting

Financial Accounting

(FI)

AccountsReceivable

AccountsPayable

SpecialPurposeLedger

FixedAssets

Banks

GeneralLedger

R/3

FIFinancial

AccountingCO

Controlling

PSProjectSystemWF

WorkflowIS

IndustrySolutions

MMMaterials Mgmt.

HRHuman

Resources

SDSales and

Distribution


QMQualityMgmt. PM

Plant Maintenance

SMServiceMgmt.


Solution


AMFixed Assets

Mgmt.

Controlling (CO)

Components of Managerial Accounting

Controlling (CO)

Controlling(CO)

CostElement

Acct

CostCenterAcct

ProductCost

Controlling

InternalOrders

ActivityBased

CostingProfitCenterAcct

ProfitabilityAnalysis