INTRODUCTION TO SAP

Presenter: Jidhun Mathew

What is SAP? SAP is the acronym for Systems, Applications, Products

SAP is an audit of a computer system from SAP enterprise to check its security and data integrity

It comes under Enterprise Resource Planning(ERP) system, which is a business management software

Other common ERP systems available include Oracle and PeopleSoft apart from SAP

It is a system that provides users with a soft real-time business application

It contains a user interface and is considered extremely flexible

In SAP the two main areas of concern are security and data integrity

OVERVIEW Originally introduced in the 1980s as SAP R/2

SAP brought out a server based version of their software called SAP R/3, which was launched in 1992

SAP also developed a graphical user interface, or GUI

For the next 12 years SAP dominated the large business applications market

It was successful primarily because it was extremely flexible and versatile system

One among the ERP softwares, which are specifically designed to help with the accounting function and the control over various other aspects of the companies business such as sales, delivery, production, human resources, and inventory management

SAP MODULES

Functional Modules Overview

Sap Modules Integration

What is R/3 Client? R/3 Client is defined as an “independent accountable

business unit within an R/3 system”

A client can be a company, corporation or even a business unit

The simplest definition of an R/3 system is “one database.” In one R/3 system, there is only one database

R/3 is considered to be all of the components attached to that one database

What is ABAP? ABAP (Advanced Business Application Programming, is

an object-oriented programming language used to develop applications for the SAP R/3 system

The ABAP programming language was originally used by developers to develop the SAP R/3 platform and was also intended to be used by SAP customers to enhance SAP applications

Customers can develop custom reports and interfaces with ABAP programming

MODULES IN DETAIL Currently in SAP we have twelve modules; some of them

are integrated by the combination of other modules:

SAP Module FI - Financial Accounting An important core module, designed for meeting all the

accounting and financial needs of an organization. Within this module Financial Managers as well as other Managers within your business can review the financial position of the company in real time

Sub modules of Financial Accounting:

SAP FI-GL - General Ledger SAP FI-AP - Accounts Payable SAP FI-AR - Account Receivable SAP FI-SL- Special Purpose Ledger SAP FI-BL – Bank Accounting SAP AA - Asset Accounting

Functions of Financial Accounting module:

Accounts Receivables Accounts Payable Asset Accounting Bank Accounting Consolidation Funds Management General Ledger/New General Ledger Special Purpose Ledger Travel Management

SAP Module CO – Controlling

Represents the company’s flow of cost and revenue, offers all the support information needed by Management for the purpose of planning, reporting and decision making. Decision making can be achieved with a high level of information reducing drastically risks. Basically It is a management instrument for organizational decisions.

Sub modules of Controlling:

SAP CO-CEA - Cost Element Accounting SAP CO-CCA - Cost Center Accounting SAP CO- Internal Orders SAP CO- Activity-Based Costing SAP CO-PC- Product Cost Controlling SAP CO-PA- Profitability Analysis SAP CO-PCA- Profit Center Accounting SAP CO-OM- Overhead Cost controlling SAP CO-ML- Material Ledger

Functions of Controlling module:

Cost Element Accounting Cost Center Accounting Internal Orders Activity-Based Costing Product Cost Controlling Profitability Analysis Profit Center Accounting

SAP Module SD - Sales & Distribution

The SAP sales and distribution support your customers, starting from quotations, sales order and all the way towards billing the customer.  It is tightly integrated with the MM (Material Management) and PP (Product Planning) functional modules.  It allows companies to input their customer sales price, check for open orders and forecast etc.

Sub modules of Sales & Distribution:

SAP SD-MD - Master Data SAP SD-CAS - Sales Support SAP SD-SLS - Sales SAP SD-SHP - Shipping SAP SD-TR - Transportation SAP SD-BIL - Billing SAP SD-SIS - Sales Information System SAP SD-EDI - Electronic Data Interchange (EDI) SAP SD-GF General Sales Functions SAP LE - Logistic Execution

Functions of Sales & Distribution module:

Pre-sales activities Sales Order processing Inventory Sourcing

SAP Module MM - Material Management

It is the materials management module of the SAP. This module is used for Procurement Handling and Inventory Management. Materials management (MM) is integrated with other modules such as SD (Sales & Distribution), PP (Product Planning) and QM (Quality Management). Materials management is used for procurement and inventory management.

Sub modules of Material Management:

SAP MM-PUR - Purchasing SAP MM-IM - Inventory Management SAP MM-WM - Warehouse Management SAP MM-IV - Invoice Verification SAP MM-IS - Information System SAP MM-CBP - Consumption Based Planning SAP MM-EDI - Electronic Data Interchange SAP MRP - Materials Requirement Planning SAP ML - Material Ledger

Functions of Material Management module:

Consumption Based Planning Purchasing Inventory Management Invoice Verification External Services Management

SAP Module PP - Production Planning

The purpose of PP&C (Production Planning and Controlling) is to ensure that manufacturing runs effectively and efficiently and produces products as required by customers. The Production Planning module of SAP takes care of Master data needed like Bill Of Materials, Routings and Work Centers and stores it in one separate component.

Sub modules of Production Planning:

SAP PP-SOP - Sales and Operations Planning SAP PP-CRP - Capacity Requirement Planning SAP PP-MP - Master planning SAP PP-ATO - Assembly orders SAP PP-BD - Basic Data SAP PP-IS - Information System SAP PP-KAB - Kanban/Just-in-Time SAP PP-MRP - Material Requirements Planning SAP PP-PDC - Plant Data Collection SAP PP-PI - Production Planning for Process Industries SAP PP-REM - Repetitive Manufacturing SAP PP-SFC - Production orders SAP DS - Detailed Scheduling

Functions of Production Planning module:

Master Data SOP DRP Production Planning MRP Shop Floor Control Capacity Planning Repetitive Manufacturing KANBAN Product Cost Planning

SAP Module QM - Quality Management

Quality management is a method for ensuring that all the activities necessary to design, develop and implement a product or service are effective and efficient with respect to the system and its performance. Quality management is the comprehensive solution that supports the company throughout the product life cycle and along the supply chain.

Sub modules of Quality Management:

SAP QM-QP - Quality Planning SAP QM-IM - Quality Inspection processing SAP QM-QC-AQC - Quality control SAP QM-IT - Test equipment management SAP QM-QN - Quality notifications SAP QM-CA - Quality certificates SAP QM-CR - General functions SAP QM-PT-RP - Control in logistics

Functions of Quality Management module:

Quality planning Quality Inspection Quality Control Quality Certificates Quality Notifications Test Equipment Management

SAP Module PM - Plant Maintenance

Oriented to cover all maintenance activities, supporting the Planning, Programming and Implementation, with emphasis on the availability of equipment, staff costs and assurance, guaranteeing so the state of the art of database and optimization. SAP’s Plant Maintenance comprises of the following activities such as inspection, to measures and establishes the actual condition of a technical system, preventive maintenance to measures and maintain the ideal condition of a technical system, repair to measures and restore the ideal condition of a technical system and other measures that need to be taken using the maintenance organization.

Sub modules of Plant Maintenance:

SAP PM-EQM - Equipment and Technical Objects SAP PM-IS - PM Information System SAP PM-PRM - Preventive Maintenance SAP PM-PRO - Maintenance Projects SAP PM-SM - Service Management SAP PM-WOC - Maintenance Orders Management

Functions of Plant Maintenance module:

Management of Technical Objects Maintenance Processing Preventative Maintenance Work orders Preventive maintenance Asset management Inventory control Safety

SAP Module HR - Human Resource

It deals with various activities done in the human resource department of an organization, such as, personal administration, personnel development, training and event management, payroll etc. This module enables customers to effectively manage information about the people in their organization, and to integrate that information with ”other SAP modules” and external systems.

Sub modules of Human Resource:

Organizational Management Personnel Administration Recruitment Time Management Payroll Benefits Compensation Management Personnel Cost Planning Budget Management Personnel Development Training & Event Management Travel Management

Functions of Human Resource module:

Personnel Administration Personnel Development Time Evaluation Payroll

SAP Module PS - Project System

Created to support the planning, control and monitoring of long-term, highly complex projects with defined goals. Projects are generally part of the internal processes of a company. To be able to control all tasks in project execution, you need an organizational form that is specific to the project and which is shared by all departments involved.

Sub modules of Project System:

SAP PS-CAF - Payments SAP PS-CON - Confirmation SAP PS-COS - Costs SAP PS-CRP - Resources SAP PS-DAT - Dates SAP PS-DOC - Documents SAP PS-IS - Information System SAP PS-MAT - Material SAP PS-PRG - Progress SAP PS-REV - Revenues and Earnings SAP PS-SIM - Simulation SAP PS-ST - Structures SAP PS-VER - Versions

THANK YOU!