SAP - Online Transaction Processing (OLTP)

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Process-Based Enterprise Logic

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Data Flow Logic

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Procurement Process Example

In the procurement process, there may be different business partners for different roles in the transaction. These partner roles are defined in vendor master data

Vendor

OrderingAddress

GoodsSupplier

InvoicePresentedBy

PaymentReceivedBy

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GoodsReceipt

PayInvoice

Procurement Process

PurchaseRequisition

PurchaseOrder

InvoiceReceipt

InternalDemand

Customer Vendor

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Material Master Data

An advantage of the SAP system is that it maintains one set of data in real time. Material data is used by many functional areas.

With non-integrated systems, each system may contain material data, and this data is not always consistent. In the SAP system, the data is consistently correct or incorrect.

Material Master data is organized by Views. Depending on the type of material, only certain views need to be used. As the system is configured, additional views can be added as necessary.

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Material Master Views

Basic Data 1 Basic Data 2 Classification Sales: Sales Org Data 1 Sales: Sales Org Data 2 Sales: General/Plant Data Foreign Trade: Export Data Sales Text Purchasing MRP 1 MRP 2 MRP 3 MRP 4 Forecasting Work Scheduling

• General Plant Data/Storage 1• General Plant Data/Storage 2• Warehouse Management 1• Warehouse Management 2• Quality Management• Accounting 1• Accounting 2• Costing 1• Costing 2

Basic Data, Classification arenot plant-specificOther views are plant-specific

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Material Master Views

Plant 1000

NRG-A BarsBase unit: CS

Gross wt: 72 lb.

NRG-A BarsLead Time: 2 daysStd. Price: 216.80

Plant 2000

NRG-A BarsLead Time: 3 daysStd. Price: 223.20

BasicDataView

MRPViews

Non-plant specific

Plant specific

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Purchasing Process

Create Purchase Requisition Where analysis/vendor selection occurs

Create Purchase Order from Requisition Requisition items can be used to generate multiple purchase orders

Create Goods Receipt Create Invoice Receipt Post Outgoing Payment

Unfortunately, there is no purchasing “document flow” (BT: why not? )

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Sales & Credit Management Example

Credit Management is a cross-functional activity between SD and FI

SD FICREDIT

SalesPeoplewant tosell

FI Peoplewant toreducerisk

Credit is an independent functionin the SAP R/3 system

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Credit/Risk Process

Credit Management SD, FI

Cust: Health ExpressRisk: MediumCredit Limit: $10,000Ttl. Commit: $6,000

Order: 5923Order Amount: $5,000 Credit Limit ExceededBlock orderE-mail to credit rep. (opt.)

Blocked document listor E-mail (opt.)

Review situationRelease order

Pick, pack & ship orderBill Customer

Credit control (blocks) can be applied at order entry,delivery creation or goods issue

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Static vs. Dynamic Checks

Receivables

Opendelivery value

Openorder

Credit Limit

Openorder

Openorder

Receivables

Opendelivery value

Openorder

Openorder

Openorder

Credit HorizonStatic Check

Dynamic Check

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Decentralized Credit Management

Each company code sets and monitors a credit limit independently

Credit Control Area 1

Company Code 1

Sales Org.1

Health ExpressLimit: $50,000

Credit Control Area 2

Company Code 2

Sales Org.2

Health ExpressLimit: $100,000

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Centralized Credit Management

Transactions with each company code apply to the single credit limit set for the single credit control area

Credit Control Area 1

Company Code 1

Sales Org.1

Limit: $150,000

Company Code 2

Sales Org.2

Health ExpressHealth Express

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Exchange Rates

Receivables for Company Code 2 are converted from Euros to US Dollars when credit is checked

Credit Control Area 1Currency: USD

Company Code 1Currency: USD

Sales Org.1

Limit: $150,000

Company Code 2Currency: EU

Sales Org.2

Health ExpressHealth Express

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Automatic Credit Control

Determine points at which credit check is carried out (order creation, delivery creation or goods issue)

Determine type of check Based on:

Credit control area Risk category Document (credit group)

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Automatic Credit Control

Salesorganization

CompanyCode

Credit Control Area

Customer

RiskCategory

TransactionType

Credit group

When Credit is CheckedWhy Credit is CheckedWhat the system does (warning, error)

As of release 4.0, Credit control area can also be Determined via:

user exitspayersales area