1. Intro to SAP Enterprise Systems Configuration EGN 5620 Enterprise Systems Configuration Fall, 2015

2. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.2 SAP ERP Introduction Enables a company to link it’s business processes Ties together disparate business functions (integrated business solution) Helps the organization run smoothly Real-time environment Scalable and flexible

3. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.3 SAP ERP Introduction Central relational database ◦Oracle, Informix, Microsoft SQL, etc. Client/Server – three-tiered for database, application, and presentation. ERP Components – Oriented towards common identifiable business modules: ◦MM, SD, PP, FI, CO, HR, WM, QM, PM Add-ons: ◦Customer Relationship Mgmt (CRM) ◦Supply Chain Mgmt (SCM) ◦Product Lifecycle Mgmt (PLM) ◦Business Intelligence (BI)

4. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.4 Relational Database Tables: Defines and links a couple of tens thousands of tables of information (25,000+) Advantages ◦Consistent and accurate data ◦Common definitions for terms ◦Shared, but restricted usage (e.g., profiles) ◦Eliminates data redundancy

5. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.5 Client/Server Environment Server ◦Software/hardware combination that can provide services to a group of clients in a controlled environment Client ◦Software/hardware combination that can make a request for services from a central repository of resources

6. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.6 Three-Tier SAP Structure GUI – Graphical User Interface or Web Interface Application server (one or many) Database server (one single location)

7. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.7 SAP Enterprise System Database Application Presentation Browser Client PCs, Laptops, etc. Network Application Servers Internet Transaction Server Web Server

8. Enterprise Systems (history & Evolution)

9. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.9 SAP ERP Introduction Instance – each install of the SAP ERP software on an individual application server Configurable – each instance can be distinctively configured to fit the needs and desires of the customer (within limits) Most of the infrastructure decisions, including configuration decisions, occur during project implementation

10. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.10 SAP Configuration The process of tailoring SAP software by selecting specific functionality from a list of those supported by the software, very much like setting defaults (e.g., Word, Access) DOES NOT involve changes to the underlying software code

11. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.11 Programming Code Modifications Changes to the delivered code ABAP/4 – Advanced Business Application Programming (ABAP) This should be done carefully as it can make migration to new versions of the software much more difficult

12. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.12 SAP Data Types Required data types: Organizational levels (data, elements) Master data Transactional data (e.g., documents)

13. Data Type 1: Organizational Levels Defines the enterprise structure in terms of legal or business purposes, including l egal entities, plants, storage areas, sales organizations, profit centers:  Client (e.g., 330) ◦ Highest organizational level ◦ Represents the enterprise consisting of many companies  Business area (e.g., BI##) ◦ An organizational unit within financial accounting. It corresponds to a defined business segment or area of responsibility, to which you can assign value movements recorded in Financial Accounting.  Company Code (e.g., US##) ◦ Identifies legal entities in an enterprise ◦ Central organizational element in financial accounting.

14. Data Type 1: Organizational Levels  Organizational levels in Logistics ◦ Plants (e.g. DL##, MI##, SD##)  Represents factory, warehouse, office, distribution center, etc. ◦ Storage locations A location within a plant where materials are stored At plant DL##: FG##, SF##, RM##, MI## At MI##: FG##, MI##, TG## At SD##: FG##, MI##, TG##

15. Storage Locations Plant Company Code Client GBI Enterprise (330) GBI Company 1 DL## MI## SD## RM ##TG##FG ## GBI Company 2 Data Types 1: Organizational Levels DL## MI## SD## MI##SF ##

16.  Organizational levels in Accounting  Client  Company code  Business area  Controlling area  Operating concern  Organizational levels in procurement  Purchasing organization  Purchasing group  Plant  Storage location Organizational levels in fulfillment (sales) Sales organizations Divisions Distribution channel Sales areas Shipping point Plant Storage location Organizational levels in PP Plant Work Center Storage location Shipping Point Data Type 1: Organizational Levels

17. Procurement Client GBI CC US## Dallas DL## Miami MI## S. Diego SD## CA## Toronto TO## Shipping Point DL## Storage Location RM## MI##SD##HD##HH## AU## Perth PE## Central Purchasing Organization (global) GL## Purchasing Org. US## CC DE## Heidelb. HD## Hamburg HH## SF## FG## MI## TG## FG## MI## TG## FG## MI## TG## FG## MI## RM## SF## FG## MI## TG## FG## MI## TO## TG## FG## MI## PE## CA## Purchasing Group North America N## PO DE## PGr Europe N## AU## Asia AS## Enterprise Structure Example

18. Sales and Distribution Client GBI Credit Control Area (global) GL## CC US## SO East UE## SO West UW## CC CA## SO East CE## SO West CW## CC DE## SO South DS## SO North DN## CC GB## SO South GS## SO North GN## CC AU## SO South AS## SO North AN## Distribution Channel Wholesale WH Distribution Channel Internet IN Division Bicycles BI Division Accessories AS Enterprise Structure Example

19. ◦Long term data that represent entities of:  Procurement ◦ Vendor ◦ Material ◦ Info records, source list  Fulfillment (Sales & Distribution) ◦ Customer ◦ Material ◦ Conditions (pricing, output)  Production ◦ Bills of material ◦ Work centers ◦ Product routings Data Type 2: Master Data

20. ◦Data generated during executing process (steps) combining:  Organizational levels  Master data  Situational data (who, what, when, and where) ◦Example: sales order  Organizational levels: customer, company code, sales area  Master data: customer master, material master  Situational data: date, time, person, quantities Types of Data 3: Transaction Data

21. Document concept ◦An electronic record of transactions ◦Each transaction creates document(s) Document types ◦Financial accounting documents (FI) ◦Management accounting documents (CO) ◦Material documents (goods movement, MM) ◦Others

22. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.22 SAP ERP Document Principle Each business transaction that writes data to the database creates a uniquely numbered electronic document Each document contains information such as ◦Responsible person ◦Date and time of the transaction ◦Commercial content Once created, a document can not be deleted from the database

23. Document Example: Purchase order Header Line items

24. Global Bike, Inc. (GBI) System Configuration Introduction

25. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.25 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

26. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.26 GBI Inc. A company in the promotional Bike business buy and re-sell different lines of promotion bikes sell to both wholesale and Internet with a production facility DL##, at Dallas to manufacture its own product and two distribution centers MI## at Miami, and SD## at San Diego. with two sales organizations UE## and UW## and one purchase organization US##.

27. Enterprise Structure Plants(DL##/MI##/SD##) Client (330) Chart of Accounts (GL##) Company Code (US##) Fiscal Year Variant (K1) Credit Control Area (GL##) Purchasing Org. (US ##) Purchasing Group (N##) Shipping Point (DL##/MI##/SD##) Distribution Channel (IN/WH) Division (BI/AS) Sales Area Controlling Area (NA ##) FG##SF## Sales Org. (UW##/UE##) Work center (ASSY/INSP/PAC K/MANT/SERV) Cost centers RM##MI## TG## Business Area (BI##)

28. Company configuration ◦Global Bike Company (GBI) Inc. (US##)  Dallas TX, US ◦Facilities:  One manufacturing plant at Dallas (plant, DL##) ◦ Work Centers (ASSY10##/INSP10##/PACK10##) ◦ Storage Locations  FG## - Finished products  SF## - Semi-finished products  RM## - Raw materials  MI## - Misc. materials ◦ Shipping point (DL##)  Two Distribution centers (Plants, MI##/SD##) ◦Sales Organizations (UE##/UW##) ◦Purchase Organization (US##)

29. Company configuration Cost Center Standard Hierarchy (NA##) NA10## (Cost center group for Company headquarter) N11## (Cost center group for Executive board) N12## ( Cost center group for Internal service) NA20## (Cost center group for Admin. and financials) NA30## (Cost center group for Marketing) NA40## (Cost center group for Operations) N41## (Cost center group for R&D) N42## (Cost center group for Production) N43## (Cost center group for Plant maintenance) N44## (Cost center group for Quality) N45## (Cost center group for Service) NA50## (Cost center group for IT)

30. GBI Inc. : Products: Finished Materials Your Material Number Material Description (Short Text) Standard Price (Cost) Sales Price (WH/IN) DXTR10## ## Deluxe Touring Bike (black)$1,400$2,800 DXTR20## ## Deluxe Touring Bike (Silver)$1,400$2,800 DXTR30## ## Deluxe Touring Bike (red)$1,400$2,800 ORMN10#### Men's Off Road Bike$1,200$2,400

31. GBI Inc. : Products: Trading materials Your Material Number Material Description Moving Ave. Price (Cost) Sales Price (WH/IN) EPAD10#### Elbow Pads $ 37.50 $ 70 KPAD10#### Knee Pads $ 37.50 $ 70 OHMT10## ## Off Road Helmet $ 25.00 $ 50 RHMT10#### Road Helmet $ 25.00 $ 50 RKIT10#### Repair Kit $ 16.00 $ 32

32. GBI Inc.: Key Processes ◦Procurement (buy) ◦Fulfillment (sell) ◦Production (make) ◦Material planning (plan) ◦Financial Accounting (track) ◦Management Accounting (track) ◦Inventory and Warehouse Management (store) ◦Enterprise Asset Management (maintain) ◦Customer Service (service) ◦HCM (people)

33. GBI Inc. : The company IS of the GBI, Inc. will ◦integrate and share all services for all business functions in the Dallas Office ◦Centralize all ERP functions ◦Achieve the primary business objectives:  Reduce Costs  Deliver Best-in-Class Technology to all divisions Information system requirement

34. Exercises: due date –9/7/2015 1. Define company code 2. Define business area 3. Define empty chart of accounts 4. Maintain controlling area 5. Define credit control area 6. Define variants for open posting period 7. Define field status variants 8. Enter global parameters 9. Assign company code to controlling area 10.Assign controlling area to op. concern 11.Define standard hierarchy 12.Assign company code to permitted credit control area 13.Maintain company code for materials

35. 14. Define plants 15. Maintain storage locations 16. Assign plants to company code