R3 Module Overview

7/29/2019 R3 Module Overview

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Right Solution, Right Time, Right Price

R/3 Overview


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Purpose of Overview

Provide an introduction to the SAP R/3 system

Explain the systems functionality

Introduce SAP R/3s approach to business

processes


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SAP R/3 Pre-Configured Client (PCC)

R/3Client / Server

FIFinancial

Accounting

COControlling

AMFixed Assets

Mgmt.

PSProjectSystem

WFWorkflow

IS

IndustrySolutions

MMMaterials

Mgmt.

HR

HumanResources

SD

Sales &Distribution

PPProductionPlanning

QMQuaity

Manage-ment

PMPlant Main-tenance


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SAP R/3 Application Modules

The SD application module helps to

optimize all the tasks and activitiescarried out in sales, delivery, and

billing.

Sales and Distribution (SD)

Quotation processing

Sales order processing

Delivery processing

Billing

Reporting


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The MM application module

supports the procurement and

inventory functions occurring inday-to-day business operations.

Materials Management (MM)

Material procurement

Reorder point processingInventory management

Invoice verification

Material valuation


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The PP application module is used to plan

and control the manufacturing activities of a

company.

Production Planning (PP)

Bills of Material (BOM)

Routings

Work centres

Master Production Scheduling (MPS)

Material Requirements Planning (MRP)Production Planning Execution

Production orders

Product costing

Repetitive manufacturing


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The FI application module is designed for

automated management and external

reporting of general ledger, accountsreceivable, accounts payable, and other sub-

ledger accounts with a pre-defined chart of

accounts.


Financial Accounting (FI)

General ledger

Accounts payable

Accounts receivable

Special Purpose Ledger


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The CO application module represents the

companys flow of cost and revenue

CO is a management instrument for

organizational decisions

Controlling (CO)

Cost centre accounting

Internal orders

Product costing analysis

Profit centre accounting


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The AM application is designed to

manage and supervise individualaspects of fixed assets

Asset Management (AM)

Traditional asset accounting

Asset replacementDepreciation

Capital orders


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Integrated

SAP

Benefits of the system


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SAP and Integration

The value of Integration:Integrated systems enable simplified business processes,

standard data definition, and a common business language

Simplified business processes enhance productivity to

allow focus on value added activities

Data has to be entered only once and all relatedinformation is updated automatically

Integrated applications instill confidence ininformation

and eliminates need for redundant analysis and

reconciliation


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PurchaseOrder

GoodsReceipt

ProductDelivery

MM, FI,CO, PP

MM, FI,CO, QM

MM, FI,CO,

MM, SD,FI, CO

Integrated & Process Driven

Manufacture


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Enterprise-Wide

SAP

This means that if fully implemented, it is able to run the

business, all processes and procedures. Even if your

business is geographically spread out, SAP is able to operate

across the physical distance seamlessly.


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Best BusinessPractices

SAP

SAP utilizes known and proven business and industry

practices to achieve its goals. The developers have tried to

include as many generic processes that would cover the entire

business cycle that a company may require in all of its day-to-day operations.


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SAP

Multi-Currency

SAP is able to use different currencies at the same time. SAPuses a table of currency rates that may be updated by the firm

at any time, as often as required, to translate transactionsentered in one currency to another. Once a company is set up,it is given a home currency in which it stores its amounts.Other currencies may be used in the entering of business

transactions (eg. invoice entry), but they are translatedinternally automatically into the home currency. Anychanges in currency valuation are also picked up and thenecessary gain or loss on currency valuation accounts updatesautomatically.


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SAPMulti-Lingual

SAP is multi-lingual ie. you can have different users logged

onto the same system in different languages all at the sametime.eg. A SAP system implemented in Montreal, Toronto and

Mexico City can be used simultaneously in French, English

and Spanish. The system has a built-in language translator that

will translate items into the desired language, automatically.

When logging onto the system, a user is asked which language

he/she would like to work in. A default language is normally

set when the system is installed.


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SAPSecure

Information

The SAP system uses different levels of security to ensure that its

data is kept secure. User sign-on and passwords are the first level.

Authorizations allowing entry into only certain screens and the typeof access onto certain screens form the next tier. eg. a user may

have entry access to the invoice screens, but he may only display

invoices and not add, change or delete invoices. Users with like

access requirements are grouped together using profiles. Profilesthemselves may be grouped together forming composite profiles.

The third level of security is field level security. Various screens

can be customized to allow access to certain fields where data can

be entered and other fields that are display only.


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SAP GUI: Graphical User Interface

Operates on

theWYSIWIG

principal

(What you

see is whatyou get). It

is a point &

click system.


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Concepts and Features

System-wide Concepts

System-wide Features are used to logically,

safely, and flexibly organize the data abusiness uses

Organizational Elements

Master Data

Security


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Organizational Structure

The fundamental data and functional architecture ofthe R/3 system...

Defines the legal and organizational structure of a

company from different points of view

Includes flexible organizational units for creatinga comprehensive company structure

Links different application areas in the R/3

system to create an integrated company structure

The different points of view include: Financial Accounting,Materials Management, and Sales and Distribution.The process

of determining the organizational structure is critical to the

SAP implementation project. Everything depends on the

hierarchy decisions that are made.


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Master DataCustomer Master

Material Master

?

Purchasing

Vendor

RFQ

Quotation

Vendor Master

Chart of AccountsB

Chart of AccountsA

Company Codes

Client

Currency CAD

Line itemDisplay X..

CC 0003

Currency USD

Line itemDisplay X..

CC 0001

G/L Account BANK

Bal sheet acct X

Account group FIN...

G/L Account Master


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The Material Master

Inventory

Management

ProductionPlanning

InvoiceVerification

Sales OrderProcessing

Purchasing

SAP R/3

Material Master Record

Central repository

of material data for allareas within logistics:

Finished Products

Semi-finished products

Raw materials

Consumables

Marketing Materials

1998


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Profiles

Objects

Authorization

System-wide FeaturesSecurity:

Objects describe various business and system-related groupings such as

accounting documents, customer and vendor accounts.

Profiles are a collection of objects used to control system access

privileges.

Security authorizations assign profiles to users to determine whatprivileges they have within an object or group of objects.

You choose relevant profiles for your users from the delivered SAP

profiles. Users may access only the objects assigned to them.


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Authorization Groups

There are pre-defined authorization groups whichhave been established for the PCC.

The pre-defined authorization groups are based on

roles and responsibilities.

They are for unit and integration testingThey can be modified to meet your needs (new hires,

responsibility etc.)


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SAP Reporting

SAPStandardReports?


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Business Process Overview

Material RequirementsPlanning

PlannedOrders

Purchasing

Requisitions

Production

Orders

PurchaseOrders

GoodsReceipt

Finished GoodsReceipt

DependentRequirements

Warehouse

Forecast

PurchaseOrders

ProductionOrders

IndependentRequirements

Demand

SalesProcessing

Capacity Req.Planning

Raw Mat.Goods Issue

A

C

CO

U

N

T

I

N

G

1

2

3 4

5


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ERP : Overall picture by

computerized functions

MANUFACTURING

ACCOUNTING

DISTRIBUTION

HUMAN RESOURCE

B siness Process Vers s


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Business Process Versus

Computerized Functions

Material RequirementsPlanning

PlannedOrders

Purchasing

Requisitions

Production

Orders

PurchaseOrders

GoodsReceipt

Finished GoodsReceipt

DependentRequirements

Warehouse

Forecast

PurchaseOrders

ProductionOrders

IndependentRequirements

Demand

SalesProcessing

Capacity Req.Planning

Raw Mat.Goods Issue

A

C

CO

U

N

T

I

N

G

SD

MRP

CRP

PO

PP

IMIM

FI&CO


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Expected Benefits of ERP

Top Management Simulate the Future before making a

Decision

Operate on One Game Plan

Improved Performance Reporting

Engineering A Simple way to tie Engineering and

Manufacturing Priorities

Improved Design Control

Sales and Marketing Better Customer Deliveries

through Improved Planning

More Accurate Delivery Promises


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Manufacturing

A way to Have All the Facts whenfaced with though decisions

A way to plan ahead, rather than

expedite a losing battle

Purchasing A way to reduce expediting , and

concentrate on sourcing and

negotiating

Improved request control and approval



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Finance Integrated Operating and Accounting Data.

Improved Data Accuracy

Personnel A way to reduce on-the-job

frustrations associated with constant

expediting

A Chance for everyone to see theirefforts count

A move away from numbers posting

to a setting of achievable plans



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MANUFACTURING(Material Requirement

Planning,Capacity Requirement Planning,

Shop Flor Control, etc)

ACCOUNTING(General Ledger,

Account Payables,

Account Receivables,Asset,etc)

DISTRIBUTION(Sales, Distribution,

Inventory Purchase, etc)

HUMAN RESOURCE

ERP : Overall picture by

computerized functions


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Main SAP Modules andIntegration

- Sales & Distribution

SAP R/3 Functionality Sales and


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R/3Client / Server

ABAP/4

FIFinancial

Accounting

COControlling

AMFixed Assets

Mgmt.

PSProjectSystem

OCOfficeCommIS

IndustrySolutions

MMMaterials

Mgmt.

HR

HumanResources


QMQualityMgmt. PM

PlantMaintenance

SDSales &

Distribution

SAP R/3 Functionality - Sales and

Distribution


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Business View - Sales CycleSales Order

Receive Payment Credit Check Goods Issue

Billing Document

SAP R/3 Functionality Sales and


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Competitors Sales activities Direct mailing campaigns

Customer inquiry Customer quotation

Order processingOrdersScheduling agreementsContracts

Picking Packing Transportation

Single invoice Collective invoice Invoice list Credit/debit memo

Business partners

MaterialBills of materialProduct proposals

Customer-material-info record

Equipment

Classification

Texts

Conditions

Sales taxes

Statistics

Master data

Sales

Sales Support

Shipping

Billing

SALES

INFO

SYSTEM

CO

PM

FI

PS

FI

CO

Materials ManagementProduction PlanningPlant Maintenance

ControllingFinancial AccountingProject System

Inventory ManagementCreditworthinessWarehouse

Management

Accounts ReceivableControllingProfitability analysis

PP

MM

MM

FI

PA

WM

SAP R/3 Functionality - Sales and

Distribution

SAP R/3 Functionality


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Quotation

Inquiry Order DeliveryGoodsissue

Billingdocument

SD Business Process Flows in SAP Order Processing

SD


Sales and Distribution Integration

Update demand

Management

Run MPS/MRP

Inventory

Management

Update

Financials

Sales orders ATP

PP

MM

FI/CO

Update


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- Material Management

SAP R/3 Functionality - Material


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R/3Client / Server

ABAP/4

FIFinancial

Accounting

COControlling

AMFixed Assets

Mgmt.

PSProjectSystem

OCOfficeCommIS

IndustrySolutions

HR

HumanResources


QMQualityMgmt. PM

PlantMaintenance

SDSales &

Distribution

MMMaterials

Mgmt.


Management


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Business View -Procurement Cycle

Goods Receipt

PurchaseRequisition

Invoice Receipt

Purchase OrderVendor Payment

Request ForQuotation


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From Consignment Stores

From Warehouse

Consumption Issue

Sample

Scrap

Sales

Asset

Cost Centre

Goods Issue

-----

Business View - Goods Issue



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Vendor data

MaterialMaterial typesBills of materialProduct proposals

Equipment

Classification

Texts

Conditions

Purchasing inforecords

Master data

LOGISTI

CS

INFO

SYS

TEM

Financial Acctg.

Production PlanningControlling

Fixed Assets Mgmt.

CO

FI

AM

PP

Production Planning

Sales & Distribution

PP

SD

Quality Mgmt.QM

Financial Acctg.

Production Planning

FI

PP

Purchasing

MRP

Warehouse mgmt.

Inventory mgmt.

Receiving

Requisition

Order Creation

Invoice verification

QA

Inspection

Cycle counting

Physical inventory

Movements

Valuation

BOM

Lot-sizing


Management

Financial Acctg.

Production Planning

ControllingCO

FI

PP

Quality Mgmt.QM



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PurchaseOrder

RFQ(Request For Quotation)

Goods Receipt

PurchaseRequisition

ManualCreation

Invoice Verification

PlannedOrder

MRP

Update Financial(see the Example slides)


Material Management Integration : Purchasing

Ma

t

e

ri

a

l

M

as

t

e

r



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Material

Production

MaterialRequirementsPlanning

QualityManagement

InventoryManagement

on a Quantity &Value Basis

ProductionPlanning

PlantMaintenance

Sales &Distribution

Purchasing

InvoiceVerification

ProductCosting


Material Management Integration : Material Master



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Stock quantityConsumption statistics...

Reservation

Point of Consumption(CO Module):Cost centreOrder

...

G/L accounts (GL Module):Stock account

Consumption accnt.

Accounting

Document

MaterialDocument

Material

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

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

MateriaL

Posting ofGoods Issue


Material Management Integration : Goods Issue

Inventory80.00

Consumption

80.00


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- Production Planning

SAP R/3 Functionality - Production


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R/3Client / Server

ABAP/4

FIFinancial

Accounting

COControlling

AMFixed Assets

Mgmt.

PSProjectSystem

OCOfficeCommIS

IndustrySolutions

MMMaterials

Mgmt.

HRHuman

Resources

QMQualityMgmt. PM

PlantMaintenance

SDSales &

Distribution


SAP R/3 Functionality - ProductionPlanning

B i Vi P d ti C l


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Business View -Production Cycle

ProductionControl

ProductionPlanning

(Material, Capacity)

Finished GoodsIssued for Sales

Material Issuedfrom store

Finish GoodsReceived to Store

Sales Orderor Sales Forecast

SAP R/3 Functionality - Production


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Material

Bills of material

Work centers

Routings

Documents

Production resources/Tools(PRTs)

Inspection plan/characteristics

Master data

PRODUCT

ION

INFO

SY

STEM

Sales & OperationsPlanning

Capacity Planning

MRP

Production Activity(Shop Floor) Control

ProductionPlanning/MPS

Sales &DistributionSD

SAP R/3 Functionality ProductionPlanning

Product Group

Sales Plan

Master Production

Scheduling

BOM

Material Requirement

Planning

Capacity Evaluation

Capacity Dispatching and leveling

Production Order Creation

Production Order Confirmation

Product Costing

Financial Acctg.

Inventory ManagementWarehouse Management

ControllingCO

FI

MM

Quality Mgmt.QM



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Production Planning in SAP R/3

Organization Structurefor Production Planning

Client Holding

Company

CompanyCodeLegal

Reporting

PlantProductio

n Site

Storage LocationInventory

Management

BasicData

Acc.Data

MRP

DATA

StorageData

Production Planning Data

Material Master Bill of Material (BOM) Routings Work Centers Production Resources/Tools

(PRT) Capacity Engineering Change

Management (ECM) Classification Product Costing Material Requirements

Planning Manufacturing Resources

Planning

SIS

ForecastManual

Manual

COPA

External Procurement

PaymentInvoice

Verification

InvoiceReceipt

GoodsReceipt

FI

FI

FI

Purchaseorder

CO

Vendorselection

SourceDetermination

Planned orderPurchase req.

RFQ

Order settlementArchive/Delete

CO FI

Completionconf.

Orderprocessing

Withdrawal Material

Inward StockMvt.

Shop FloorPaper Printing

FI

Planned OrderOrder Proposal

Order creation

Availabilitycheck Order

Release

MM

MM

CO

MMMM

FI SD

CO

Manual/Automatic

Costs Calc.Time Tickets

Withdrawal Slips

Back FlushingYes/No?

Load in the WCStock Items

Costs SettledMPS

DemandMgmt.

SOP

Sales Plan

ProductionPlan Manual

ForecastCons.

History

CO

MM

SD

PlannedOrder

Rough CutPlanning

Transfer

Transfer

Sales Order

Make to Order

SD

MMMRP

Transfer

PurchaseRequisition

MRPList

CO

Information contained in this chart is not all-inclusive.

Partial/Milestone

Stock Updating

Reservation

Net PriceComparison

Quotations

Manual/Automatic

StockRequirements

Overview

SAP R/3 Functionality Production Planning Integration

(See MM module)

In-house Production(See next

Page)

Material

Master



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Ordersettlement

Archive/Delete

CO FI

Completionconf.

Orderprocessing

WithdrawalMaterial


FI


Order creation


Release

MM

MM

CO

MMMM

FI SD

CO

In-house Production

CostsCalc.

Time TicketsWithdrawal

Slips



Costs Settled

CO

Stock Updating

Manual/Automatic

Partial/Full

Inward StockMvt.

Reservation FI

Account

Postings CO

Order Cost

Calculation Order

Settlement


Production Planning Integration : In house Production



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MM

Material

AvailabilityCheck

Goods

Movements

SD

ATP Quantity


Production Planning Integration : In house Production

Ordersettlement

Archive/Delete

CO FI

Completionconf.

Orderprocessing

WithdrawalMaterial


FI


Order creation


Release

MM

MM

CO

MMMM

FI SD

CO

In-house Production

CostsCalc.

Time TicketsWithdrawal

Slips



Costs Settled

CO

Stock Updating

Manual/Automatic

Partial/Full

Inward StockMvt.

Reservation


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Main SAP Modules and

Integration

- Financial Accounting and Asset

Management

SAP R/3 Functionality -


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R/3Client / Server

ABAP/4

COControlling

PSProjectSystem

OCOfficeCommIS

IndustrySolutions

MMMaterials

Mgmt.

HRHuman

Resources


QMQualityMgmt. PM

PlantMaintenance

SDSals &

Distribution

FIFinancial

Accounting

AMFixed Assets

Mgmt.


Financial Accounting and Asset Management

SAP R/3 Functionality -


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Financial Statements Account Analysis Multi-currency Taxation

Account Analysis (I/C) Payments History

Chart of Accounts

Company Codes

Business Areas

Credit Control Areas

Assets

Depreciation Areas

Master data

Accounts Payable

Cash Plan Cash Forecasting

Cash Management

EXECUTIV

E

INFO

SY

S

General Ledger

Accounts Receivable

Account Analysis (I/C) Credit

Asset Values Depreciation Forecast Additions Retirements

Asset Management

Materials ManagementControllingSales and Distribution

CO

PurchasingControllingFinancial ReportingProject System

FI

Inventory ManagementVendor PaymentsIntercompanyReconciliation

MM

PP

FI

PS

CO

MM

SD

MM

FI

Inventory ManagementCustomer BillingCredit WorthinessIntercompanyReconciliation

MM

SD


Financial Accounting and Asset Management


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- Controlling

SAP R/3 F ti lit C t lli


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R/3Client / Server

ABAP/4PS

ProjectSystem

OCOfficeCommIS

IndustrySolutions

MMMaterials

Mgmt.

HRHuman

Resources


QMQualityMgmt. PM

PlantMaintenance

SDSals &

Distribution

FIFinancial

Accounting

AMFixed Assets

Mgmt.

COControlling

SAP R/3 Functionality - Controlling

SAP R/3 F ti lit C t lli


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Financial Statements Management Account Analysis Multi-currency

Cost Center Expense

Planning Budgeting

Controlling Areas

Profit Centers

Cost Centers

Operating Concerns

Profitability Segments

Master data

Cost Center Accounting

Profitability

EXECUT

IVE

INFO

S

YS

Profit Center Accounting

Profitability Analysis

Internal Orders

Project Tracking Planning Budgeting

Materials ManagementSales and Distribution

MM

SD

MM

FI

Inventory ManagementAllocationsFixed Asset

Management

CO

MM

AM

AllocationsProject SystemFixed AssetManagementProfitability Analysis

PS

PA

Sales and DistributionProject SystemInternal OrdersCost CenterAccounting

PS

CO

CO

SD

SAP R/3 Functionality - Controlling

S SAP ERP R/3 P d t S it


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R/3Client / Server

ABAP/4

FIFinancial

Accounting

COControlling

AMAssetMgmt.

PSProjectSystem

OCOfficeCommIS

IndustrySolutions

MMMaterials

Mgmt.

HRHuman

Resources

SDSales &

Distribution


QMQualityMgmt. PM

PlantMaintenance

Summary - SAP ERP : R/3 Product Suite

Enterprise Portals Enterprise PortalsStrategic Enterprise Management (SEM)


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Business Information Warehouse (BW)

Analytical Application (AA)

Product Life Cycle Management (PLM)Enterprise Resource Planning (R/3)

EProcument

Enterprise Buyer

APOSupplyChain

Management

E - Marketing

CRMCustomer

Relationship

Management

Su

p

pl

i

er

Cu

s

to

m

er