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SAP AG

CSU Chico

SAP Lecture 1

Copyright 1999 - Raymond F. BoykinCopyright 1999 - Raymond F. Boykin

Contents of this file are for the exclusive use of the University Contents of this file are for the exclusive use of the University of Missouri and CSU, Chico pilot project. Reproduction of of Missouri and CSU, Chico pilot project. Reproduction of this material in any form is not allowed without the written this material in any form is not allowed without the written permission of the author. This material is confidential.permission of the author. This material is confidential.

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SAP AG

CSU Chico

SAP AG

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What is an R/3 System?

DatabaseServer

ApplicationServer

PresentationServer

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SAP AG

CSU Chico

SAP AG

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What does an R/3 Database Contain?

R/3System

database

Repository ObjectsRepository Objects

Customizing ObjectsCustomizing Objects

ClientClient ClientClient ClientClient

Global SettingsGlobal Settings

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SAP AG

CSU Chico

SAP AG

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What is a Client?

“A client is an autonomous unit in the R/3 System withregard to commercial law, organization, and data.”

ClientClient

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SAP AG

CSU Chico

Common Client Roles

CUST

QTST

PROD

Development &Development &CustomizingCustomizing

Quality AssuranceQuality Assurance

ProductionProduction

Configuring of client settings andcreation of new functionality

Functionality testing andverification of configuration

Productive activities and businessdata

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SAP AG

CSU Chico

Additional Client Roles

SAND

PPRD

SandboxSandbox

TestTest

TrainingTraining

Pre-productionPre-production

Sampling of customizingtransactions and settings

Testing of configuration settingswith data

Configured environment for theload of legacy data prior to thestart of productive activities

TRNG End-user customer trainingenvironment

TEST

SAP AG

CSU Chico

SAP R/3Materials Management Module

SAP AG

CSU Chico

Materials Management

Procurement

Inventory Management

Warehousing

Material Master

Materials Planning

Hazardous Materials Management

SAP AG

CSU Chico

Organizational Elements

Organizational elements are structures that represent the and/or organizational views of an enterprise.

Company structure is designed based on business processes.

The organizational elements provide a framework that supports all business activities.

SAP AG

CSU Chico

Organizational Elements for the Procurement Process

Company Code

Plant

Storage Location

Purchasing Organization

Purchasing Group

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CSU Chico

Company Code

A company code represents an independent accounting unit.

Balance sheets and Profit & Loss statements, required by law, are created at the company code level

SAP AG

CSU Chico

Plant

A plant is an organizational unit within a company. It produces goods, renders services, or distributes goods.

A plant can be one of the following types of locations:

Manufacturing facility

Warehouse distribution center

Regional sales office

Corporate headquarters

SAP AG

CSU Chico

Storage Location

Storage locations are organizational units that allow the differentiation of material stocks within a plant.

SAP AG

CSU Chico

Purchasing Organization and Groups

Decentralized with a separate organization for each plant.

Centralized, one organization for all plants.

Hybrid - multiple organizations buy for multiple plants.

Groups can be a further division of purchasing responsibility and/or structure.

SAP AG

CSU Chico

Material Master

The material master contains all data required to define and manage material. It integrates data from engineering, manufacturing, sales and distribution, purchasing, accounting, and other departments.

The material master is used as a source of data for purchase order processing throughout the procurement cycle.

SAP AG

CSU Chico

Material Master - View(s)

The R/3 system allows selection and maintenance of the data that is relevant to a particular department.

To create a view, the view must be selected on the “Select View(s)” screen before the material data is entered.

Users are responsible for creating and maintaining the view(s) of the materials that are relevant to their departments.

SAP AG

CSU Chico

Material Master - Industry Sector

Industry sector determined the type of industry to which the material will be assigned.

Industry sector information determines:

which screens will appear and in what sequence

what industry-specific data will appear

SAP AG

CSU Chico

Material Master - Maintenance

Defaults - speeds entry of data by using the most frequently used organizational levels and views as default values. These defaults are user-specific and may be overridden.

Reference Material - speeds entry by copying pertinent data from existing material master records.

Profiles - speeds entry by copying standard data created in a profile into a selected view.

Collective entry of storage locations - speeds creation of additional storage locations by adding multiple locations at one time.

SAP AG

CSU Chico

Material Master - Material Type

Groups material with same basic attributes

Determines:

which department views are maintained

Whether changes in material quantities are updated

Whether internal or external procurement is allowed

Which general ledger accounts are updated

SAP AG

CSU Chico

Vendor Master

The vendor master includes all the data necessary for processing business transactions and corresponding with vendors.

Information is shared between the accounting and purchasing departments.

Data is grouped into three categories:

general data

accounting data

purchasing data

SAP AG

CSU Chico

Basic Procurement Process

Requirements determination - purchase requisition

Source determination - RFQ and quotation

Vendor selection

Order processing - purchase order

Order follow-up

Goods receipt and inventory management

Invoice verification

Payment

SAP AG

CSU Chico

Purchase Requisitions

Internal document

Requesting a certain quantity of material or service on a certain date

Can be created:

Manually

Automatically (MRP, sales orders, etc.)

Release approval procedures can be established

SAP AG

CSU Chico

Purchase Requisition Sources

Manually created by user department

Automatically created by:

Planning (MRP, MPS)

Plant maintenance

Production orders

Sales orders

SAP AG

CSU Chico

Processing Purchase Requisitions

Create purchase requisition (manually or automatically)

Determine source of supply

Release procedure (optional)

Allocate vendor and process

SAP AG

CSU Chico

Creating a Purchase Requisition

Default data for line items

delivery dates, plants, purchasing groups, etc.

Maintain line item data

materials, quantities, delivery dates, etc.

Maintain account assignment (if required)

cost center, G/L accounts, project number, etc.

Check data

Save

SAP AG

CSU Chico

Purchase Requisitions - Menu Paths

Create: Logistics -> Materials management -> Purchasing -> -> Requisition -> Create

Change: Logistics -> Materials management -> Purchasing -> -> Requisition -> Change

Display: Logistics -> Materials management -> Purchasing -> -> Requisition -> Display

SAP AG

CSU Chico

Purchase Orders

Purchase orders are:

a formal request to provide materials or services

an internal planning and tracking tool

Purchase orders identify:

vendor

material and/or service

quantity and price

delivery dates

terms of payment

SAP AG

CSU Chico

Purchase Order Structure

Header - information specific to the entire purchase order

vendor

currency

payment terms

SAP AG

CSU Chico

Purchase Order Structure

Line item details

account assignment

delivery schedule

materials/services quantity

price

description

item category

SAP AG

CSU Chico

Item Category

Item category defines the form of procurement

Whether a purchase order requires:

material number

account assignment

goods receipt and/or invoice receipt

Examples:

subcontracting

consignment

stock transfer

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CSU Chico

Purchase Order Output

Request for quotations

Purchase order

Order acknowledgment

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CSU Chico

Purchase Order Output Format

Printed and mailed

EDI

Faxed (hardcopy or electronic)

SAP AG

CSU Chico

Purchase Order - Menu Paths

Create: Logistics -> Materials management -> Purchasing -> -> Purchase order -> Create

vendor known

vendor unknown

via requisition

Change: Logistics -> Materials management -> Purchasing -> -> Purchase order -> Change

Display: Logistics -> Materials management -> Purchasing -> -> Purchase order -> Display

SAP AG

CSU Chico

Goods Receipt

Goods receipt with reference to a purchase order:

copy data from purchase order

delivery notification

invoice verification

updates PO history

inventory update

automatic update of G/L accounts

You can search for the PO number with:

material number, vendor number, etc.

SAP AG

CSU Chico

Goods Receipt Destinations

Stock - given a storage location, can be posted to three different stock types:

unrestricted-use

quality inspection

blocked stock (valuated)

Consumption - can be assigned a recipient or unloading point

Goods Receipt Blocked Stock - updates inventory, but material is not valuated (conditional acceptance)

SAP AG

CSU Chico

Goods Receipt - Movement Types

Movement types - stock transactions:

goods receipt

goods issue

stock transfer

Movement type determines which:

quantity fields are updated

stock types are updated

G/L stock or consumption accounts are updated

fields are displayed during document entry

SAP AG

CSU Chico

Movement Type - Examples

101 - goods receipt for purchase order into warehouse/stores

102 - reversal of goods receipt for purchase order into warehouse/stores

122 - return delivery to vendor

501 - receipt w/o purchase order into unrestricted-use stock

SAP AG

CSU Chico

Goods Receipt - Account Postings

Inventory account is debited at standard price

GR/IR clearing account is credited at purchase order price

Price difference account is debited (credited) with difference between standard price and purchase order price

SAP AG

CSU Chico

Effects of a Goods Receipt

PO history and PO updated

Material master - stock and value updated

Notification of goods receipt issued (optional)

Transfer request to Warehouse Management system (if active)

Material and financial documents created and/or updated

Stock and consumption accounts updated

Inspection notification in QM (if active)

SAP AG

CSU Chico

Goods Receipt - Menu Paths

Create: Logistics -> Materials management -> Inventory management -> -> Goods movement -> Goods receipt -> For purchase order ->

PO number known

PO number unknown

Change: Logistics -> Materials management -> Inventory management -> -> Material document -> Change

Display: Logistics -> Materials management -> Inventory management -> -> Material document -> Display

SAP AG

CSU Chico

Invoice Verification

Matches the vendor’s invoice to the purchase order and the goods receipt (3rd part of 3-way match)

Matches price and quantity

Updates the purchase order and its history

Updates accounting information

SAP AG

CSU Chico

Invoice Payment

Selects invoices for payment based on the payment terms in the vendor master or purchase order

Generates payment for released invoices

Updates accounting information

SAP AG

CSU Chico

Accounts Payable Payment Process

Determines:

open items to be paid

when they will be paid

bank from which payment will be made

payment medium

who will get paid

Payment process creates a financial accounting document to record the transaction

SAP AG

CSU Chico

Invoice Processing - Menu Paths

Enter an Invoice: Logistics -> Materials management -> Invoice verification -> Invoice verification ->-> Document entry -> Enter invoice

Change: Logistics -> Materials management -> Invoice verification -> Invoice verification ->-> Further processing -> Change

Display: Logistics -> Materials management -> Invoice verification -> Invoice verification ->-> Further processing -> Display

SAP AG

CSU Chico

Invoice Processing - Menu Paths

Payment Processing: Accounting -> Financial accounting -> Accounts payable ->-> Document entry -> Outgoing payment -> Post

View PO History Documents: Logistics -> Materials management -> Purchasing ->-> Purchase order -> List display -> By PO number

SAP AG

CSU Chico

SAP R/3Sales and Distribution Module

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SAP AG

CSU Chico

SD Overview Introduction

Overview

Organizational Units

Master Data

Main Process

Integration

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SAP AG

CSU Chico

Overview

Handles the selling of products or services to business partners

Master data forms the basis for all activities in S/D

Need a customer to sell to, product to sell, and a price

Perform the task of sale, delivery and billing

Each activities creates a document flow based on Sale Doc

Allows for current status for a Bus. Event anytime, anywhere along the value chain

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SAP AG

CSU Chico

Overview

S/D handles several functions to support a sale

Material and price determination, availability check, schedule determination, collective invoice processing, etc.

In addition to a standard order, S/D handles different business events involving a sale activity

Consignment goods, leases, free of charge, third-party orders, etc.

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SAP AG

CSU Chico

Organization Units

Sales Organization - Sell and distributes products

Distribution Channel - Method in which material or services reach customer

Wholesale, retail, and direct sales

Sales Division - Responsible for sales or profits from services or materials

Group materials products or services

Sales Area - Combination of sales organization, dis. Channels, and divisions

Used for reporting

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SAP AG

CSU Chico

Organizational Unit

Sales Area:

Sales

Organization

DistributionChannel

Division

Plant

30003000

USUS

12

Resales

0202

MotorcyclesMotorcycles

9090

AccessoriesAccessories

40001000

CanadaGermany

12

Resale

Sales Area:

Sales

Organization

DistributionChannel

Division

Plant

Company Company

0202

MotorcyclesMotorcycles

9090

AccessoriesAccessories

40001000MSIMSI

CanadaGermanyy

30003000MSIMSIUSUS

30003000

New YorkNew York

34003400

SeattleSeattle

40001000

MontrealHamburg

41001400

TorontoStuttgart

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SAP AG

CSU Chico

Organization Units

Sales Office - Reflects the geographical aspects of a sales organization

Establishes contact between the firm and the regional market

Sales Group - Individuals responsible for the sale

Plant - Place where a product or services is render from

Company Code - Legal reporting for external users

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SAP AG

CSU Chico

Organization Unit

SAP AG

Internal Organization in Business Developmentand Sales

SalespersonSalesperson

Sales groupSales group

Sales officeSales officeNorthern

officeSouthern

office

004001 002 003 005

Jones DouglasBrownMiller White Kramer Smith

Client

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SAP AG

CSU Chico

Master Data

SAP AG

Origins of Data in Sales Documents

Customer master data Sales order

Material master data

.....

Control tables

Texts

Conditions

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SAP AG

CSU Chico

Master Data Customer - sale org. (General View)

Various relationship can be stored (sales view)

Sold-to, Bill-to, Ship-to, shipping, etc.

Customer account is stored (accounting view)

Credit, invoice payment, etc.

Material - plant

Different characteristics

Sales status, Material type, etc.

Pricing

Uses a condition technique that allows prices to be executed automatically in the order

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SAP AG

CSU Chico

Processes

SAP AG

R

Pre-Sales ActivitiesPre-Sales Activities

Sales Order ProcessingSales Order Processing

Inventory SourcingInventory Sourcing

DeliveryDelivery

BillingBilling

PaymentPayment

Invoice

Order Management: Business Processes inCOM Cycle

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SAP AG

CSU Chico

Main Process - Sale All activities from request for quotation processing to

processing all kinds of orders

Data from the first document is carried forward to subsequent documents

The sale document may result in a single order or a longer-term relationship in the form of outline agreement with special conditions

Outline agreements: divided into contracts and scheduling agreement, and are valid for a defined period of time

Contracts: quantities and prices are specified for scheduling agreements and delivery dates

Orders: price determination, availability check, credit limit check, and delivery scheduling serve as a basis for rejection or acceptance

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SAP AG

CSU Chico

Main Process - Shipping

Guarantee on-time and cost-saving retrieval and shipments of products agreed upon in a customer order

Data is copy from the sales order (integration) or created without reference to an order

Shipping handles picking, creation of packaging and loading instructions, and transportation routing and tracking

Foreign trade requirements are handled (export permits, notices to government agencies, etc.)

Good issue is performed

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SAP AG

CSU Chico

Main Process - Billing

Creation of invoices based on deliveries and services rendered, of credit and debit memos, and proforma invoices

Deliveries from different orders can be combined or split into different invoices

Creations are passed on to FI, which monitors receipt of payment

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SAP AG

CSU Chico

Main Process (Function) - Sales Supportand SIS Contains marketing- and sales-related information about

customers, potential customers and partners, as well as competitors and their products

Supports marketer in segmenting markets, business development and customer service

SIS is tightly linked with Sales Support

Used to gather, condense and evaluate data from sales

Analysis of performance measure according to various methods

Correlation curves, planned/actual comparisons, etc.

Warning system

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SAP AG

CSU Chico

Integration In order processing, an availability check for stocks in MM

Delivery processing, creates goods issues which is MM

Existing sales quantities of an order, can be transferred to PP and CO as planned independent requirements to be produce

Data of a product in S/D is passed to CO for product costing

During billing, profit centre postings are automatically updated

During billing, the invoice amounts is automatically transferred to FI as revenues where receipt of payment is monitored or open item are dunned

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SAP AG

CSU Chico

Integration

SAP AG

R

Order Management: Business ProcessSummary

MATERIALS

MANAGEMENT

Pre-SalesPre-Sales

Sales OrderSales OrderProcessingProcessing

Delivery/Delivery/TransportationTransportation

BillingBilling

Customer payment/Customer payment/Financial AccountingFinancial Accounting

Accounts Receivable

Accounts Receivable

Schedulingagreement

Schedulingagreement

InventoryInventory Sourcing Sourcing

ContractContract

SALES

INFORMATION

SYSTEM

InvoiceInvoice

Transfer Order

Transfer Order

ContactContact

InquiryInquiry

QuotationQuotation

DeliveryDelivery Goods IssueGoods Issue

Material Stock Account

Material Stock Account

ShipmentShipment

PPRROODDUUCCTTIIOONN

PPLLAANNNNIINNGG

OrderOrder