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SAP R/3 System Overview
SAP AG
R
2.2. SAP R/3 System: SAP R/3 System: OverviewOverview
Unit Purpose
The purpose of this unit is to introduce the SAP R/3 System by explaining its benefits, application modules, and architecture.
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Unit 2 - Topics
SAP R/3 System OverviewSAP R/3 system benefits
SAP R/3 application modules
SAP R/3 Basis system
Unit Topics
This unit consists of the following main topics:
SAP R/3 System Benefits
SAP R/3 Application Modules
SAP R/3 Basis System
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Introduction
Worldwide usage
Open system
Interactiveprocessing
Integration
Designed for all types of business
R/3R/3Client / ServerClient / Server
ABAP/4ABAP/4
FIFIFinancialFinancial
AccountingAccounting
COCOControllingControlling
AMAMAssetAssetMgmt..Mgmt..
PSPSProjectProjectSystemSystem
WFWFWorkflowWorkflow
ISISIndustryIndustry
SolutionsSolutions
MMMMMaterialsMaterials
Mgmt.Mgmt.
HRHRHumanHuman
Ressources.Ressources.
SDSDSalesSales
PPPPProductionProductionPlanningPlanning
QMQMQualityQualityMgmt.Mgmt.
PMPMPlantPlant
MaintenanceMaintenance
Introduction
Benefits
Integration
Flexibility
Designed for all types of business
Worldwide usage
Interactive processing
Open system
Application Modules
Financial Accounting (FI)
Controlling (CO)
Asset Management (AM)
Project System (PS)
Workflow (WF)
Industry Solutions (IS)
Human Resources (HR)
Plant Maintenance (PM)
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SAP R/3 System Overview
Quality Management (QM)
Production Planning (PP)
Materials Management (MM)
Sales and Distribution (SD)
Basis System
Client/server architecture
Application architecture
System communication
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SAP R/3 System - Benefits
Integration
Integrated processes, data andorganizational elements
Application integration
Technical integration
Benefits
Integration
Integrated processes, data, and organizational elements
• Operational, financial, and managerial principles are satisfied simultaneously
• Common database
Application integration
• One point of data entry
• Consistency for the user across applications
Technical integration
• On-line, interactive edit and update
• Elimination of redundant data
• Data integrity
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SAP R/3 System - Benefits
Designed for all types of businessBusiness processes
Order processing
Productdevelopment
CustomerService
Financial Reporting
Personnel Devel-opment
MarketingSales
Pro-duction
Service FinancialAccounting
Functions
Benefits
Designed for all types of business, the SAP R/3 System:
Provides a complete business solution across all business functions for strategic and operational control of the organization.
Addresses critical business processes.
Provides an enterprise-wide solution:
• One system supports global business and accounting practices.
• Standardized business processes across the organization, yet tailoring by individual business units is allowed.
• Supports multiple organizational structures per business process to accommodate differences between business units.
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Worldwide Usage
Europe PacificAmerica
U.S.A.
Mexico
Argentina
Brazil
Canada
* = Through Partners
Belgium
Denmark
Germany
France
Greece*
Italy
Netherlands
Austria
Hungary*
Czech.Republic
U.K.
Portugal
Russia
Sweden
Switzerland
Slovak.Republic
Spain
Poland
Norway
Afrika/ Mittle East
Australia
Japan
Hong Kong
China
Indien*
Indonesia*
Korea*
Singapor
Malaysia
New- zealand
Thailand
Philippines
Mittle East*
Israel*
Turkey*
South Africa*
Benefits
Worldwide usage
Comprehensive multi-currency translation
Multiple language support
Customized reporting and document generation for individual countries
Local support in most major industrialized countries
Country-specific functionality
• Government reporting
• Accounting
• Taxation
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SAP R/3 System - Benefits
Interactive Processing
Benefits
Interactive Processing
Business transactions are processed as Logical Units of Work (LUW).
The database is managed by SAP to preserve data consistency and observe business requirements and is updated asynchronously.
The SAP system interactively processes multiple users’ input as it provides changes to the database simultaneously.
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SAP R/3 System - Benefits
Open System
Benefits
Open System
Portability: SAP R/3 System promotes its portability by the use of POSIX and X/Open standards - industry standards for interfacing allowing the interoperability of applications, data, and the user interfaces. This makes the R/3 System portable, i.e., it can run with different operating systems, databases and networks.
Industry Standards: SAP R/3 System utilizes Open System Industry standards such as TCP/IP, EDI, OLE, and Open Interfaces.
• TCP/IP: Network communications protocol
• EDI (Electronic Data Interchange): Mechanism for the exchange of business data between systems
• OLE (Object Linking and Embedding): Integrates PC applications with the R/3 system
• Open Interfaces: Interfaces to specialized applications such as Computer Aided Design (CAD), Optical Archiving and barcoding devices.
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SAP R/3 Application Modules
R/3R/3Client / ServerClient / Server
ABAP/4ABAP/4
FIFIFinancialFinancial
AccountingAccounting
COCOControllingControlling
AMAMAssetAssetMgmt.Mgmt.
PSPSProjectProjectSystemSystem
WFWFWorkflowWorkflow
ISISIndustryIndustry
SolutionsSolutions
MMMMMaterialsMaterials
Mgmt.Mgmt.
HRHRHumanHuman
ResourcesResources
SDSDSalesSales
PPPPProductionProductionPlanningPlanning
QMQMQualityQualityMgmt.Mgmt.
PMPMPlantPlant
MaintenanceMaintenance
Application Modules
The SAP R/3 System consists of application modules that support all of a company’s business transactions and are integrated in real time.
Because of the integration, a change in one application module will result in an automatic update of the data in the other application modules involved.
All application modules have a common architecture and user interface (i.e., the same “look and feel” and navigation).
Application Modules
Financials
• Financial Accounting (FI)
• Controlling (CO)
• Asset Management (AM)
• Project System (PS)
Common Systems
• Workflow (WF)
• Industry Solutions (IS)
Human Resources
• Human Resources (HR)
Logistics
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• Plant Maintenance (PM)
• Quality Management (QM)
• Production Planning (PP)
• Materials Management (MM)
• Sales and Distribution (SD)
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The FI application module is designed forautomated management and externalreporting of general ledger, accountsreceivable, accounts payable, and othersub-ledger accounts with a user-definedchart of accounts.
SAP R/3 Application Modules
FIFIApplication Modules: Financial Accounting (FI)
Application Module
Financial Accounting (FI)
The FI application module is designed for automated management and external reporting of general ledger, accounts receivable, accounts payable, and other sub-ledger accounts with a user-defined chart of accounts.
Key elements of the FI application module include:
• General ledger
• Accounts payable
• Accounts receivable
• Treasury
• Special Purpose Ledger (FI-SL)
• Legal Consolidation
• Accounting Information System
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SAP R/3 Application Modules
COCO
The CO application module representsthe company's flow of costs andrevenue.
Application module: Controlling (CO)
Application Module
Controlling (CO)
The CO application module represents the company’s flow of cost and revenue.
Key elements of the CO application module include:
• Cost center accounting
• Job order accounting
• Project accounting
• Product costing analysis
• Profitability analysis
• Profit center accounting
• Activity based costing
• Enterprise controlling
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SAP R/3 Application Modules
AMAM
The AM application is designed tomanage and supervise individualaspects of fixed assets.
Application Module: Asset Management (AM)
Application Module
Asset Management (AM)
The AM application is designed to manage and supervise individual aspects of fixed assets.
Key elements of the AM application module include:
• Technical asset management and plant maintenance
- Maintenance
- Repair
• Investment control
- Sale of assets
• Traditional asset accounting
- Asset replacement
- Depreciation
• Investment management
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SAP R/3 Application Modules
PSPS
The PS application module is designedto support the planning, control andmonitoring of long-term, highly complexprojects with defined goals.
Application Module: Project System (PS)
Application Module
Project System (PS)
The PS application module supports the planning, control, and monitoring of long-term, highly complex projects with defined goals.
Key elements of the PS application module include:
• Funds and resource management
• Quality control
• Time management
• Project Management Information System
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SAP R/3 Application Modules
WFWF
The WF application module links theintegrated SAP R/3 application moduleswith cross-application technologies,tools, and services.
Application Module: Workflow (WF)
Application Module
Workflow (WF)
The WF application module links the integrated SAP R/3 application modules with cross-application technologies, tools, and services.
WF is a support tool for all modules.
WF automates the business process according to predefined procedures and rules.
• As events occur that trigger a process, the Workflow manager initiates a Workflow item.
• Using the process logic, data and documents are incorporated at each step.
• Using the processing rules, the Workflow Manager routes the item to the appropriate role (location, person, unit, etc.).
WF can be automatically triggered by data or exceptions.
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SAP R/3 Application Modules
ISIS
The industry solutions combine the SAPR/3 application modules and additionalindustry-specific functionality.
Application module: Industry solution (IS)
Application Module
Industry Solutions (IS)
IS combines the SAP R/3 application modules and additional industry-specific functionality.
IS is a result of the efforts of the Industry Centers of Expertise (ICOE), which include the following:
• Consumer Packaged Goods
• Utilities & Telecommunications
• Healthcare
• Process Industries (chemical and pharmaceutical)
• Oil and Gas
• High Tech & Electronics
• Automotive
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SAP R/3 Application Modules
HRHR
The HR application module supports therecording and evaluation of allpersonnel data.
Application module: Human Resources (HR)
Application Module
Human Resources (HR)
The HR application module is a complete integrated system for the planning and control of personnel activities across applications.
Key elements of the HR application module include:
• Personnel administration and payroll accounting
- Payroll - USA and international
- Time management
- Travel expense accounting
- Benefits
- Recruitment
- Personnel administration
• Personnel planning and development
- Workforce planning
- Training administration
- Organization management
- Personnel planning
• Human Resources Information System
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SAP R/3 Application Modules
PMPM
The PM application module supports theplanning, processing, and completion ofplant maintenance tasks.
Application Module: Plant Maintenance (PM)
Application Module
Plant Maintenance (PM)
The PM application module supports the planning, processing, and completion of plant maintenance tasks.
• Helps you keep track of maintenance costs and resources.
• Provides information to facilitate decision-making about plant maintenance concerns.
Key elements of the PM application module are:
• Processing of unplanned tasks
• Service management
• Maintenance notification by date or counters
• Maintenance planning
• Maintenance bills of material
• Plant Maintenance Information System (PMIS)
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SAP R/3 Application Modules
QMQM
The QM application module is a qualitycontrol and information systemsupporting quality planning, inspection,and control for manufacturing andprocurement.
Application Module: Quality Management (QM)
Application Module
Quality Management (QM)
The QM application module is a quality control and information system supporting quality planning, inspection, and control for manufacturing, costing, and procurement.
Key elements of the QM application module are:
• Quality inspection
• Quality planning
• Quality Management Information System (QMIS)
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SAP R/3 Application Modules
PPPP
The PP application module is used toplan and control the manufacturingactivities of a company.
Application module: Production Planning (PP)
Application Module
Production Planning (PP)
The PP application module is used to plan and control the manufacturing activities of a company.
Key elements of the PP application module include:
• Bills of Material (BOM)
• Routings
• Work centers
• Sales and Operations Planning (SOP)
• Master Production Scheduling (MPS)
• Material Requirements Planning (MRP)
• Shop floor control (SFC)
• Production orders
• Product costing, activity-based costing
• Repetitive manufacturing
• Kanban
• Production planning for process industries
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SAP R/3 Application Modules
MMMM
The MM application module supports theprocurement and inventory functionsoccurring in day-to-day businessoperations.
Application module: Materials Management (MM)
Application Module
Materials Management (MM)
The MM application module supports the procurement and inventory functions occurring in day-to-day business operations.
Key elements of the MM application module include:
• Material procurement (purchasing)
• Inventory management
• Reorder point processing
• Invoice verification
• Material valuation
• Vendor evaluation
• External services management
• Purchasing Information System (PurchIS) and Inventory Controlling Information System
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SAP R/3 Application Modules
SDSD
The SD application module helps tooptimize all the tasks and activitiescarried out in sales, delivery and billing.
Application Module: Sales (SD)
Application Module
Sales and Distribution (SD)
The SD application module supports all the tasks and activities carried out in sales, delivery, and billing.
Key elements of the SD application module include:
• Pre-sales support
• Inquiry processing
• Quotation processing
• Sales order processing
• Delivery processing
• Billing
• Sales Information System
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SAP R/3 Basis System
R/3R/3Client / ServerClient / Server
ABAP/4ABAP/4
FIFIFinancialFinancial
AccountingAccounting
COCOControllingControlling
AMAMAssetAssetMgmt.Mgmt.
PSPSProjectProjectSystemSystem
WFWFWorkflowWorkflow
ISISIndustryIndustry
SolutionsSolutions
MMMMMaterialsMaterials
Mgmt.Mgmt.
HRHRHumanHuman
ResourcesResources
SDSDSalesSales
PPPPProductionProductionPlanningPlanning
QMQMQualityQualityMgmt.Mgmt.
PMPMPlantPlant
MaintenanceMaintenance
Basis System
The central SAP R/3 Basis System guarantees all application modules are integrated and platform-independent
Descriptions of the Basis System include:
• Client/server architecture
• Application architecture
• System communication
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SAP R/3 Basis System
Client/Server(Three-Tier)
DistributedPresentation
Client/Server(Multi-Layer,Cooperative))
Presentation Application DatabaseCentral System
(Laptop)
Client/Server(Two-Tier))
Basis System
Client/server Architecture
The SAP R/3 architecture is based on a three-tier client/server principle.
• Presentation
• Application
• Database
Dedicated servers linked by communication networks can be used to perform certain tasks without sacrificing integration of data and processes within the system as a whole.
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SAP R/3 Basis System
Windows 3.11, Windows 95, Windows NT, OSF/Motif, OS/2-Warp, Macintosh
ABAP/4, C, C+ +
DialogSAP-GUI
Languages
Windows 3.11, Windows 95, Windows NT,
OS/2-Warp
ADABAS DDB2 for AIX
INFORMIX-OnLine 7ORACLE 7.1
ADABAS DMS SQL Server 6.0
ORACLE 7.1DB2/400
AIXDigital UNIX
HP-UX
SINIXSOLARS Windows NT OS/400
Hardware AT&TBull/Zenith
Compaq
SequentSNI. . .
DataGeneral
HP (Intel)IBM (Intel)
BullDigital
HP
IBMSNISUN
UNIX SystemsIBM
AS/400
Operatingsystems
Databases
Basis System
Application Architecture
With the SAP R/3 Basis System, applications can run on different hardware and system platforms with higher performance, and can be adapted to users’ specific requirements.
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What is meant by "Integration"?SAP R/3 System Communication
RemoteFunction
Call (RFC)
ApplicationLink Enabling
(ALE)
Electronic DataInterchange
(EDI)
Object Linkingand Embedding
(OLE)
Interfaces
Common ProgramInterface -
Communications(CPI-C)
SDMM
PP
QAPM
HR
FICO
AM
PSWF
IS
R/3R/3
Basis System
System Communication
The SAP R/3 System meets current and future processing requirements by providing the seamless integration of software and technology and the ability to use communication tools that will not require a total reinvestment and redesign effort.
These tools include:
• Remote Function Calls (RFC) and Common Program Interface -Communications (CPI-C) facilitate the communications and processing of applications and programs between R/3, R/2, and other systems.
• Electronic Data Interchange (EDI) provides an electronic means for business partners to communicate and transact business using standard protocols.
• Object Linking and Embedding (OLE) facilitates the integration of various PC products thus providing enhanced processing capabilities in the SAP R/3 environment.
• Application Link Enabling (ALE) provides distributed processing autonomy and integration of loosely coupled applications between R/3, R/2, and other systems.
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Discussion
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