ACADEMY SAP R/3 - Synthesis Week 1

INTRODUCING SAP

SAP MISSION To provide enterprise business solutions for sustained competitive advantage. Therefore our customers can: Run their business processes faster; Operate more productively; Have more profitable results; Are able to implement change by embracing new technology. OPEN SYSTEM: THECHNICAL R/3 ENVIRONMENT Hardware Unix Systems Digital HP IBM SUN Digital Unix HP Unix Etc. Adabas DB2 Oracle Informix AT&T Compaq Data General HP (Intel) IBM (Intel) Digital Windows NT IBM AS/400

Operating Systems Databases

OS/400

Adabas DB2/400 SQL Oracle Informix Dialog SAP-GUI Windows 95 Windows 95 Macintosh OS/2 Etc. Languages ABAP/4, C, C++, HTML (Internet) Tools TCP/IP (Network communications protocol) EDI (Electronic Data Interchange) OLE (Object Linking and Embedding) CAD Optical Archiving Bar Coding

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SAP MODULES: OVERVIEW

SD
Sales & Distribution

FI
Financial Accounting

MM PP
Materials Mgmt. Production Planning

CO
Controlling

R/3
Client / Server ABAP/4
HR
Human Resources

AM
Fixed Assets Mgmt.

QM
Quality Mgmt.

PS
Project System

PM

Plant Maintenance

WF
Workflow

IS
Industry Solutions

SAP MODULES: PP

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CP CO

CRP SO P

MR P MP S

PP
CADASTRO

SI S

LEGEND SOP- Sales and Operation Planning MPS- Master Production Scheduling MRP- Material Requirements Planning CRP- Capacity Requirements Planning SIS- Information System CO- Controlling CP=PC= Product Costing

THE R/3 INDUSTRY FOCUS Engineer-to-order production Make-to-order production Intermittent manufacturing Repetitive manufacturing Discrete manufacturing
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Process flow manufacturing (PI)

PP- PRODUCTION AND PLANNING OVERVIEW SOP- Sales and Operation Planning; MPS- Master Production Scheduling; MRP- Material Requirements Planning; CRP- Capacity Requirements Planning; Shop Floor Control; Production Order; Production Costing; BOM- Bill of Material; Work Centers; Routings; Logistic Information System.
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ENTERPRISE AREA/SCENARIO/APPLICATION

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Production Logistics Area (PP) Processing consumable material Management of consignment stocks Subcontract order processing Stock transfer processing Production by lot size Repetitive manufacturing Make-to-order production Process manufacturing Project-related engineer to order production Quality management in production Quality management for goods receipt from production Cost object controlling during process manufacturing Cost object controlling during repetitive manufacturing Cost object with order-related prod./production by lot size Cost object w/sales-order-related / make-to-order production Cost object during engineer-to-order Logistics - General Component (PP) Logistics Basic Data Forecast Variant Configuration Engineering Change Management Logistics Information System Production Planning and Control Component (PP) Basic Data Sales and Operational Planning Master Planning Capacity Planning Material Requirements Planning Production Orders KANBAN Repetitive Manufacturing Assembly Processing Production Planning for Process Industries Plant Data Collection Information System Demand Flow EDI Interface to Shop Floor System

SD- SALES AND DISTRIBUTION OVERVIEW Sales Distribution Billing

ENTERPRISE AREA/SCENARIO/COMPONENT/APPLICATION Sales Logistics Area (SD) Standard order handling Contract handling Scheduling agreement handling Handling customer scheduling agreement Third-party order handling Handling of delivery free of charge

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Customer consignment stock handling Rush order handling Cash order handling Rental contract handling Decentralized shipping Stock transfer processing Make-to- order production Service management Project-related engineer to order production Quality management in Sales and Distribution Profitability Analysis Sales and Distribution Component (SD) Master Data Basic Functions Sales Shipping Transportation Foreign Trade Billing Sales Support Information System Electronic Data Interchange Telephony Interface Dealer/External/Internet Orders Configure to Order Engineer to Order

MM- MATERIAL MANAGEMENT OVERVIEW Purchasing Warehouse Invoice Verification

ENTERPRISE AREA/SCENARIO/APPLICATION Procurement Logistics Area (MM) Processing stock material Processing consumable material Management of consignment stocks Subcontract order processing Stock transfer processing External services management Quality management in procurement Materials Management Component (MM) Consumption-Based Planning Purchasing Inventory Management Warehouse Management Invoice Verification Electronic Data Interchange Information System Interface-RF/Bar Code

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QM- QUALITY MANAGEMENT OVERVIEW Goods Receipt Quality-related cost for quality inspections Quality notifications Production Inspection during production Defects recording in QM Control charts Goods Issue Quality management in SD

ENTERPRISE AREA/SCENARIO/APPLICATION Quality Management Component (QM) Quality Planning Quality Inspection Quality Control Quality Certificates Quality Notifications Quality Management-Manufacturing Quality Management-Receipts LIMS Interface

PM- PLANT MAINTENANCE: OVERVIEW Organization Plants Shop floor Technical Objects Equipment spare parts Assemblies Planning & Processing Request Planning and unplanned Repair/maintenance order Confirmation History History and analysis Shutdown times Damage list Cost

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ENTERPRISE AREA/SCENARIO/APPLICATION Plant Maintenance and Service Handling Area (PM) Stock transfer processing Functional system information system Plant maintenance due to damage Planned plant maintenance Project related plant maintenance Service management Plant Maintenance Component (PM) Equipment and Technical Objects Preventive Maintenance Maintenance Order Management Maintenance Projects Service Management Information System

HUMAN RESOURCES: OVERVIEW

Organization and planning Recruitment Personal development Training and event management Financial accounting Payroll accounting Cost planning Time management Shift planning (Gerenciamento de turnos de trabalho) Travel expense accounting

ENTERPRISE AREA/SCENARIO/APPLICATION Organization and Human Resources Area (HR) Personnel and organizational management Determination of workforce requirements and recruitment Workforce Planning Business event processing Personnel Administration Travel expense processing Time management processing Payroll processing Benefits Administration Personnel Admin/Payroll Accounting Component (HR)

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Personnel Administration Benefits Recruitment Time Management Incentive Wages Travel Payroll Personnel Planning and Development Component (HR) Organizational Management Personnel Development Workforce Planning Training and Event Management Room Reservation Planning

FI- FINANCIAL ACCOUNTING OVERVIEW

ENTERPRISE AREA/SCENARIO/APPLICATION External Accounting Area (FI) Vendor processing One-time account vendor processing Vendor branch/head office processing Customer processing One-time account customer processing Customer branch-head office processing Purchase association processing customer processing General ledger processing Consolidation Fixed asset processing Handling of low value assets Leased asset processing Special Purpose Ledger Financial Accounting Component (FI) General Ledger Accounting Legal Consolidation Accounts Payable Accounts Receivable Asset Accounting Special Purpose Ledger Information System-IS EDI Sales & Use Tax Interface Finance Management Area (TR) Cash management Central/local budgeting Incremental budgeting

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Treasury Component (TR) Cash Management Commitment Accounting

CO- CONTROLLING OVERVIEW

ENTERPRISE AREA/SCENARIO/APPLICATION Business Planning and Control Area (CO) Direct capitalization Special Purpose Ledger Overhead Management w/cost assessment Overhead Management with overhead costing Overhead Management w/static standard costing Overhead Management.w/flexible standard cost.- marginal costs Cost object controlling for intangible goods/cost assessment Cost object controlling for intangible goods Cost object contr. During process manufacturing Cost object during repetitive manufacturing Cost Object with order-related prod./production by lot size Cost object w/sales-order-related / make-to-order production Cost object during engineer-to-order Profitability Analysis with cost assessment Profitability Analysis with overhead costing Profitability Analysis with static standard costing Profitability Analysis w/flexible standard cost.- marginal costs Account-based Profit Center- period accounting method Account-based Profit Center- cost-of-sales method Controlling Component (CO) Overhead Cost Controlling Product Cost Controlling Profitability Analysis Activity Based Costing Enterprise Controlling Component (EC) Profit Center Accounting Business Planning Management Consolidation Executive Information System

PS- PROJECT SYSTEM OVERVIEW Pipeline construction Primary flow Secondary flow Building Project system Etc.
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ENTERPRISE AREA/SCENARIO/APPLICATION Project System Component (PS) Basic Data Operative Structures Project Planning Project Budgeting Project Execution / Integration Information System

WORKFLOW OVERVIEW Process flux

IS- INDUSTRY SOLUTION OVERVIEW o PP na indstria qumica.

MISCELANEOUS OVERVIEW
COMPONENT/APPLICATION Cross-Application Component (CA) Workflow ALE Archiving Document Management System Classification CAD Integration General Task Functions Documentation Tools IDOC Interface/EDI

WORLDWIDE USAGE Comprehensive multi-currency transactions Multiple language support Customized reporting and document generation for individual countries Country-specific functionality; Government reporting Accounting Taxation
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BUSINESS PROCESSES There are four main business processes in most companies: Manufacturing Planning and Execution Procurement Customer Order Management Financial/Management Accounting and Reporting MANUFACTURING PLANNING Sales Operating Planning- SOP Manufacturing Execution Order Settlement

Forecast

MPS

MRP

PROCUREMENT Requirement for Goods/ Services Purchase Order Goods Receipt Invoice Verification Vendor Payment

CUSTOMER ORDER MANAGEMENT Pre-Sales Activities Sales Order Processing Inventory Sourcing Delivery Billing Customer Payment

SAP R/3 WALKTROUGH Sales

Presales Activity Sales Order Inventory Sourcing Delivery Customer Billing Customer Payment

Production
SOP MPS MRP Planned Order Production Order Shop Floor Control

Purchasing
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Requisition Vendor Selection Purchase Order Goods Receipt Invoice Verification Vendor Payment

DEFINITION OF ORGANIZATIONAL ELEMENTS In the SAP R/3 System, organizational elements form structures that represent the legal and organizational views of a company. These views include: accounting, manufacturing planning and execution, materials management, and sales and distribution. Some elements are considered core elements because they are used in all business processes. The core elements are: Client Company Code; Plant Business Area COMPANY CODE Is a legal entity, used to prepare financial statements such as balance sheets and income statements. Like to CGC. Have 4 (four) positions. BUSINESS AREA Optional structure: Used for flexible reporting across company codes Is a unit for which internal balance sheets and profit and loss (P&L) statements can be created An element that can be defined by sales area, plant/division, or cost object (e.g., by product group or geography) Example:
Motor Sports International

Motor Sports International Inc. USA

Motor Sports International Inc. Canada

Company Code

Motorcycles

Accessories

Motorcycles

Accessories

Business Area

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ORGANIZATIONAL ELEMENTS- OVERVIEW

FI Company Code SD Sales Organization SD Distribution Location Channel SD Division Business Area CO Purchasing Organization Sales Area MM Cost Center SD Profit Center Controlling Area

CO

Storage MM Plant

MM PP

PLANT Location in which inventory quantities and values are stored or manufactured, and where the products are produced. COST CENTER Used to represent a location to which cost are charged or allocated

USING THE R/3 SYSTEM

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Client User Password Language

XXXX YYYYYYYYYY ZZZZZ E

The R/3 system uses Windows front end It works in multiple sessions (Six sessions maximum) The system uses the mouse to click on menu entries For faster navigation, the R/3 can uses a transaction code (Example: /NSM50) in command line, or fast path (Example: .YMT) The system have extended help, help on help and glossary

SYSTEM CONCEPTS SYSTEM-WIDE CONCEPTS Workflow Archiving

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Is the process of removing documents from the database and merging them onto storage media. Reporting Internal Reporting Integrated Statutory Reporting (Relatrios Legais) External Interfaces Conditions Batch Input Standard method for entering a large number of records from legacy systems or routine interfaces. To insure data integrity, transfer data is subject to the same validation routines that are used during manual on-line processing. Output Printer Fax Mail EDI

SYSTEM-WIDE FEATURES Organizational Elements Client Company Code; Plant Business Area Customizations Customization is defined as the configuring of the system to represent your organizations legal structure, reporting requirements and business processes. The tool which is used for carrying out these customizing activities is know as IMG (Implementation Guidelines). Master Data Can be defined as records that remain in the database over extended period of time (e.g., Customer Master, Vendor Master, Material Master, Account Master). Master data is centrally stored and processed to eliminate data redundancy. Classification Can be defined as the assignment of objects to a class (for example: model, color, engine size, exhaust system, color, type). Matchcodes Query tools used to find fields specific information. Configuration Security
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Authorization

Profiles- area collection of objects used to control system access privileges. Example: Billing/Stocks/Treasure Objects- describes various business and system-related grouping such as accounting documents, customer and vendor accounts, business areas, etc. Activities. Example: Consult, Movement, Deletion.

EFFICIENT R/3 INTEGRATION ELEMENTS OF BUSINESS ENGINEER R/3 Procedure Model Method for implementing the R/3 System

Organization and Conceptual Design

Detailed Design and System Set-Up

Preparations for Going Live

Productive Operation

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Set Up System Environment GoPlan Quality Project Team Project User Establish Preparation Documentation System Define Administration System Functions / Processes Transfer Check Data to Train

Establish Global Settings

Create Interfaces / Enhancements Establish Reporting Create Live Quality Create Establish Archiving Application System Check Establish Authorization Set Up

Users Train Quality Establish Company Structure Conceptual Production Design Check Establish Master Data

Management

Production Environment

Production Design System Interfaces / Enhancements

Establish Functions / Processes

Management

Perform Final Test

Business Process Scenarios Process Model Application Components Session Manager IMG Business Objects Object-Oriented Data Model Workflow and Organization Enterprise Organizational Structure

MASTER DATA FINANCIAL MASTER DATA ACCOUNTING DATA Master Records GL Accounts- general ledger
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Vendors- creditors accounts Customers- debtors accounts Bank Data- creditors and debtors accounts

Transaction Data Documents G/L-GENERAL LEDGER Represents the total of all G/L Accounts, and define and produce a balance sheet and a profit and loss statement. SUB-LEDGERS Includes details about a General Ledger Account: Customer Receivables Vendors Payables Fixed Assets Fixed-Assed Account CHART OF ACCOUNTS Contains all acounts for financial accounting and all cost elements for cost accounting.
FINANCIAL ACCOUNTING Current Neutral Material assets expenditu assets and short res and term revenues capital CHART OF ACCOUNTS COST ACCOUNTS Primary SeconSeconcost dary cost dary cost elements elements elements FINANCIAL ACCOUNTING Stocks of Revenues/ Closing semiinventory finished changes / and internal finished services products Direct cost Transfer allocation posting from Order financial settlement account

Fixed assets and long Term capital

Transfer Assesspostings of ment financial account imputed costs COST ACCOUNTING Overhead cost control Profit control

VIEWS IN THE MATERIAL MASTER RECORD Engineering; Requirements planning; Stocks in plant-warehouse; Accounting; Storage; Warehouse management; Purchasing; Sales and distribution; Job preparation;
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Quality management; Forecast; Classification.

MATERIAL MASTER RECORD- DATA AREAS

GENERAL DATA Material number Description Units of measure Technical Data

PLANT-SPECIFICDATA MRP Type Planned delivery time Purchasing group Batch indicator

VALUATION Valuation price Valuation procedure Valuation Quantity

WAREHOUSE MANAGEMENT Unit of measure Palleting instruction

SALES-SPECIFIC DATA Delivering plant Sales texts

STORAGE LOCATIONSPECIFIC DATA Storage time Stock fields FORECAST DATA CONSUMPTION DATA

MATERIAL NUMBER Uses 18 characters MASTER DATA IN PP Routings Describes the processing steps required to produce a material or provide a service. Example: NUMBER WORKSTEPS
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10 20 30 40 50 Pre-assembly Inspection Final Assembly Inspection Delivery

Work Centers Where or by whom a certain operation is carried out. Bill of Material A Bill of material is a complete, formally structured list of the components which make up a product or assembly. The list contains the description and object number of each component together with the quantity and unit of measure. BUSINESS PARTNERS- FI PERSPECTIVE BUSINESS PARTNER MASTER RECORD The business partner record has three levels of information: Client level; Company Code level; Function specific information for either vendors (MM) or customers (SD). Client Level

Company Code

Company Code

MM

SD

MM

SD

MM

SD

BUSINESS PARTNER In the FI relationships, the customer and the vendor are mirror images of each other. NUMBER RANGES

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Is a two character alphanumeric code. Each number range has a lower limit and an upper limit. There are two ways to number master record:

Internally- the system assigns the numbers serially and retains the number status assigned; Externally- you enter the number and the system checks if it is available.

Example: Number Range 01 02 From Number 10000000 AAAAAAA To Number 19999999 ZZZZZZZZ Status 10000093 External YES

COMMUNICATION LANGUAGE In R/3 there are many standard forms of communications, whether for invoices, purchase orders, correspondence, and so forth. These correspondence types have the layout specified in which they will appear, and the information that they will contain, such as open items lists, or account balances specified in the SAPscrip tool. SAPscript can have many languages implemented in parallel, so that a single execution of an invoice run for example, will produce the required multinational invoices. As they are produced the system will read the master data to determine which is the appropriate language to send, and will pick up the correct text and place it in the specified layout. One billing run will produce three different language texts for the three different customers.

BUSINESS PARTERS- CUSTOMER MASTER RECORD

Sold-to party (a quem vender) ----------------------Ship-to-party (onde enviar mercadoria)

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Carrier (transportador) paga) Bill- to party (cliente) Payer (quem

Customers functions (sold-to party, payer, bill-to party) are stored in the customer master record; Vendors (such as carrier) are stored in the vendor master record; Data on employees of your own company (for example sales representatives or office staff) is stored in the personnel master record.

VIEWS OF CUSTOMER (Cliente) MASTER RECORD Company Code Account Management Payment Transactions Correspondence Sales and Distribution Sales Shipping Billing General Data Address Control Data Marketing Payment Transactions Contact Persons

BUSINESS PARTERS- VENDOR MASTER RECORD VENDOR MASTER RECORD Reflected the structure of your own company only; Vendor Sub Range (VSRs) reflect your vendor's organization; Every vendor master is managed under an account group. Partner is an active vendor which has a valid vendor master record in the system.

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