SAP R/3FI/CO

Odaiah Pelley

What is ERP ?ERP stands for Enterprise Resource PlanningEnterprise stands for an entity,organisation,artificial personResource is 6 Ms concepts 1.MoneyFinance,Accounts,Costing/Controlling 2.Material MM, Stock inventory, Purchasing 3.Man Power HR

4 . Machinery PP,PM,QA 5 . Marketing SD 6 . Methods CRM, SCM, SRM Planning : is for utilization of Resources for a huge business organization.

ERP ProductsBAANPEOPLESOFTORACLE APPLICATIONSSAP R/3JD EDWARDSRAMCO

NON-ERPsOracleVBPower Builder etc

ERP is an Industry PackageAn Industry has several Departments - Finance Department - Purchasing Department - Inventory Department - Sales Department - Marketing Department - HR Department

- Production DepartmentPlant Maintenance Department etc,. Each Department in Industry is having its own functionality , In SAP we are calling as Module.

Need for ERPERP is used for planning our Resources to get more profits with less efforts

SAP ARCTECTURE 1. SAP R/2 2. SAP R/3

Positions in SAPFunctional Consultant like FI/CO,SD.MM,PP,PM,PS etc,.Technical Consultant a person who is skilled in ABAP/4 Programming LanguageTechno functional Consultant Having min.3 years of ABAP/4 experience and 2 years of Functional Experience

Basic skills of Functional ConsultantMS-OfficeWordPower PointExcelVisio (flow charts)Project ManagementSnagit (Tech smith - software)Webex

Role of Functional Consultant1.Implementation 2.Supporting 3.Rollouts4.Upgradation

SAP TechnicalABAP (Advanced Business Application Programming)Cross ApplicationNet weaver

ABAP Concepts1 . ABAP Transaction2 . BDC Concept (Batch Data Conversion)SAP ScriptsABAP Reports

- Total SAP Applications are developed with ABAP LanguageABAP Language developed based on c language.Cross/Applications are used to communicate the distributed business system.To implement ERP for a business organization it takes 14 to 27 months approximately

ABAP Transactions: Using this concept we can add a fields to the applications.BDC Concept : Using this concept we can transfer data from Non-SAP to SAPSAP Scripts: Using this concept SAP R/3 Communicate business partners.ABAP Reports are used for designing reports for SAP environments. It is most important concepts.

SAP AG Stands for System Applications and Products for Data ProcessingSAP was developed by 5 IBM employees in 1972.AG stands for company in Germany.This ERP is completed developed and wehave to customize what ever client needs it.

ERP Solution (Implementation)Business Process AnalysisDocument the AnalysisClient Sign OffGap AnalysisRealizationTestingQA (Quality Assurance)End User TrainingGo-livePost Production Support

1.Business Process Analysis: The SAP Implementation Team will study the project site and analysis it i.e. Gathers the requirements from the site to implement the SAP.2.Document the Analysis: After studying the site the team keep all analysis of that site onto the Document.3. Client Sign Off : Client Studies the document prepared by team and he will check the weather the analysis is met their business requirements.4. GAP-Analysis: GAP between the client requirements and team analysis i.e. what is actually required and what is available.5. Realization: Implementation starts on system for that organization.6. Testing: Different types of testing will be done over the implementation.7.Quality Assurance: Implementation is checked by Quality Team8.End User Training: Train the End users work on implementation SAP for that organization9.Go-Live: SAP is deployed for that organization.10.Post Production Support: Implementation team will support the SAP for some period.

Business Process ASAP Methodology Phase 1 Project Preparation The primary focus of Phase 1 is getting the project started, identifying team members and developing a high-level plan.Phase 2 Business Blueprint The primary focus of Phase 2 is to understand the business goals of the company and to determine the business requirements needed to Support those goals.Phase3 Realization The purpose of this phase is to implement all the business and process requirements based on the Business Blueprint.You customize the system step by step in two work packages, Baseline and Final configurationPhase 4 Final Preparation The purpose of this phase is to complete testing, end-user training, system management and cut over activities. Critical open issues are resolved.Upon the successful completion of this phase, you will be ready to run your business in your productive R/3 system.Phase 5 Go Live and Support Transition from a project oriented, pre-productive environment to a successful and live product operation

SAP OverviewSAP R/3 is integrated software solution for client/server and distributed open systems. SAP R/3 is the world's most-used standard business software for client/server computing. R/3 meets the needs of a customer from the small grocer with 3 users to the multi-billion dollar companies The software is highly customizable using SAP proprietary programming language, ABAP/4. R/3 is scalable and highly suited for many types and sizes of organizations. The R/3 architecture is comprised of application and database servers. The application servers house the software and the database servers handle document updates and master file databases. The system can support an unlimited number of servers and a variety of hardware configurations. SAP R/3 is based on various hardware and software architectures, running on most types of UNIX, on Windows NT and OS/400. SAP R/3 runs on several databases Oracle, Adabas D, Informix, DB2 for UNIX, DB2/400, Microsoft's SQL Server 6.0. Since R/3 foundation, SAP has made significant development and installed thousands of R/3 systems.

Procurement Process Purchase Requisition Advertising the TenderReceiving the QuotationAcceptance of selected vendors rejecting the othersRising the PO (legally binding document) (ME21N)Release the POGood Receipt (MIGO)Invoice Receipt (3 way matching i.e. content , price, quantity) (MIRO)Goods Issue to Production Finished Stock received from the Production (Technically completed)In FI module after Invoice Receipt Vendor Account will be credited. Vendor is open item. Any amount due to/ due from is known as Open Item. We have to make the payment to the vendor on due date. Payment Process in SAP is called as CLEARING Concept.This Payment process is done FI through Automatic Payment Program (APP).

Open Items Open items are incomplete transactions, such as a customer or vendor invoice that has not been paid. For a transaction to be completed, it must be cleared. This means that a clearing posting has to be carried out for an item group or group of items, so that the balance of the items is then zero. There are two ways to clear open items in R/3:Account Clearing (subsequent)Posting with clearing (during posting)

Sales & Distribution Hierarchy

NameTitle

NameTitle

Company Code

Sales Organisation

Distribution Channel

Sales Group

Division

Sales Office

Sales Area: It is the Combination of Sales Organization, Distribution Channel and Division. The sales area always represents the basic sales process of a company.Sales Line: It is the combination of sales organization and distribution channel. It is part of sales Organization.Sales Office: It is the geographical aspect of the structure of the client.Sales Group: The employees working for a sales office will be divided into sales groups.

Sales TransactionsInquiryQuotationSales Order (sales organization, Distribution Channel, Division)DeliveryPost Goods IssueBilling - Invoice

Sales Process

MM Hierarchy

Procurement CycleDetermination of requirements: The user department responsible can manually pass a requirement for materials to the Purchasing department via a purchase requisition. If you have set a MRP procedure for a material in the material master, the R/3 System automatically generates a purchase requisition.Determination of the source of supply: The R/3 System helps the buyer determine possible sources of supply. You can use determination of the source of supply to create requests for quotations (RFQs) and then enter the quotations. You can also access existing purchase orders and conditions in the system.Vendor selection: The system simplifies the selection of vendors by making price comparisons between the various quotations. It automatically sends rejectionLetter.Purchase order Processing: The system facilitates data entry by providing entry aids when you are entering purchase orders.Purchase order monitoring: The buyer can monitor the processing status of the purchase order online at any time and can determine whether goods or an invoice have been received for the relevant purchase order item. The system also supports reminder procedures.Goods receipt: The system compares the goods receipt quantity with the purchase order quantityInvoice verification : Vendor invoices are checked for accuracy of prices and contents.Payment processing : Financial Accounting normally deals with vendor payments

Division

Any Questions ?

Goal of Training

Initial TrainingTo gain a basic knowledge and understanding of the system for a particular application area in order to efficiently carry out implementationsTo learn about some typical project issues To understand the tools available for use in project implementations To be able to work as a project team member under the guidance of a senior consultant inthe first phase of a project (first year)Advance Training To gain a sound knowledge and understanding of the system for a particular application area in order to efficiently direct/supervise implementationsTo understand some typical integration issues in implementations To apply knowledge of this particular application area in different customer scenariosTo be able to work as a senior consultant in a project with limited complexity

SAP Delivers on Promises and Customer NeedsSolutions forAll geographic regions19 Comprehensive Industry SolutionsAll organizations regardless of size Solutions designed with enterprises and users in mindScalable for your businessContinuous technology evolutionConstant value innovationThe user is at the centerInstantly usable applications