XML and XBRL-compliant SAP R/3 Systems

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XML and XBRL-compliant SAP R/3 Systems

• Paul Sheldon Foote
• California State University, Fullerton
• SAP Congress, February 2001

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Paul Sheldon Foote Department of
Accounting California State University,
Fullerton PO Box 6848 Fullerton, CA
92834-6848 [phone] pfoote_at_fullerton.edu ht
tp//business.fullerton.edu/pfoote http//business
.fullerton.edu/sap
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Focus

• Identify how SAP and third party vendors are
  implementing XML and XBRL-compliant systems
• Suggest research opportunities

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XML
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XML

• Extensible Markup Language
• In 1999, SAP added XML as a format for data
  interchange across its SAP Business Framework
• XML, a meta language, provides developers with a
  standard way to describe data containers,
  enabling exchanges with non-SAP applications

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XML 2

• Eliminates the need for custom translation code
• Capable of accessing SAPs Business APIs (BAPIs)
• SAP will enable all of its major interfaces with
  XML
• SAP Business-to-Business Procurement example of
  product using XML

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XML 3

• SAPs goal is to make all IDOCS available in XML
  format
• With IDOCS in XML format, it will be easier to
  integrate SAP R/3 with legacy and with non-SAP
  systems

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SAPs XML SEC filing www.secinfo.com
- ltfilergt- ltcompany-datagt  ltconformed-namegtSAP
AKTIENGESELLSCHAFT SYSTEMS APPLICATIONS PRODUCTS
IN DATAlt/conformed-namegt   ltcikgt0001000184lt/cikgt
  ltassigned-sicgt7372lt/assigned-sicgt  
ltirs-numbergt000000000lt/irs-numbergt  
ltstate-of-incorporationgtI8lt/state-of-incorporation
gt   ltfiscal-year-endgt1231lt/fiscal-year-endgt
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IBMs Visual Age for Java

• SAP has agreed to use IBMs Visual Age for Java
  development tool for implementing
  business-to-business data interchange
• This will provide JavaBean interfaces into SAPs
  BAPIs
• Server-side Java and XML integration for SAP R/3
  systems

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IBMs Visual Age for Java 2

• With SAPs BAPIs available through IBM Component
  Broker middleware, many tool vendors will be able
  to connect to SAP R/3 systems via open rather
  than proprietary systems

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XBRL
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XBRL

• Extensible Business Reporting Language
• Custom markup language based upon XML
• Being added to accounting and financial reporting
  software

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XBRL 2

• XBRL-compliant software automatically and
  transparently translates numbers and words for
  viewing of segments in Web browsers,
  spreadsheets, and in other application software

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XBRL 3

• Faster distribution of financial information
• Eliminate rewrites of financial reports
• Faster and better Internet searches
• Find desired XBRL-tagged data, not thousands of
  useless hits
• Drill down
• Minimize reentering data

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XBRL Components

• XBRL taxonomy
• Database tables and maps
• Customized XBRL tags
• XBRL instance documents

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XBRL Security

• Security features are not built into XBRL

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XBRL Steering Committee

• Not-for-profit corporation started by the
  American Institute of Certified Public
  Accountants (AICPA)
• SAP is a member
• XBRL specifications
• http//www.xbrl.org

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• XBRL Taxonomy Viewer
• XBRL Taxonomy Builder
• XBRL Instance Validator
• XBRL Instance Creator
• XBRL Extractor
• XBRL DOM
• A DLL

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• XBRL Lists and Enumeration Services
• Training
• XBRL Taxonomy Creation
• XBRL Financial Statement Creation
• XBRL Style Sheet Creation
• Financial Information Conversion and Financial
  Reporting

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• http//xbrlsolutions.com
• Web site includes additional documentation
  authored by Charles Hoffman

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SAP's Internal Solutions
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SAP R/3 Before the Internet

• Within a single firm, SAP R/3 ended the problem
  of islands of information.

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SAP Business Framework

• SAP supports XML as a data format for data
  interchange across the entire SAP Business
  Framework
• Support of XML enables SAP R/3 to use the
  Internet to pass messages to receiving
  applications having no prior knowledge of the
  data formats contained in the messages

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SAPs Business APIs (BAPIs)

• XML enables access to SAPs Business APIs (BAPIs)
  without custom translation code

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SAP's External Solutions
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SAP Business-to-Business Procurement

• Web-based requisition-order-payment solution
• Use as part of R/3 or as a stand-alone component
  interfacing to R/3 or to legacy systems
• Little or no training to use Web front end
• Real-time supplier integration

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SAP OLAP Consolidation

• SAP has no current plans to build XBRL
  functionality into applications
• Instead, all XBRL-tagged data will be collected
  in SAPs Business Information Warehouse (BW) for
  use by applications
• XBRL support will be in SAPs OLAP Consolidation
  Tool (ConsTool), a tool built into SAP-BW

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SAPs XBRL Templates(a future possibility?)

• Reporting
• Financial Consolidation
• Modeling
• Simulation
• Planning
• Budgeting

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Third Party Solutions
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• Java and XML-Based wireless applications for SAP
  R/3
• EPIConnect Warehouse Edition
• Developed using Epic Datas eXpresso development
  environment (XML and Java technologies)
• Operating system independence for servers and
  mobile devices

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• Development for all major server operating
  systems, including Windows, Unix, Linux
• Development for all major mobile device operating
  systems, including DOS, Windows CE, Palm

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• Automatic data collection (ADC) solutions for SAP
  R/3 customer installations
• EPIConnect controls the flow of material from the
  receiving dock to the shipping bay
• Workers with no SAP R/3 training can enter data
  into SAP R/3

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Intermec Technologies Corporation

• RF Hand Held Data Collection Computer used by
  Epic Data
• Weighs under 1 pound
• European and Asian character sets available

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Intermec Technologies Corporation 2

• Send and receive real time data with 2.4 GHz
  radio
• Develop applications with Microsoft C/C

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Intermec Technologies Corporation 3

• Configurations
• Terminal emulation
• Client/server
• Web-enabled for integration into HTML
  applications

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Intermec Technologies Corporation 4

• Data collection applications
• Time Attendance
• Shipping/Receiving
• Picking and Pricing

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SAP R/3 Cases
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• We want to put ERP into every facet of our
  business from development through manufacturing
  to the maintenance, repair, and overhaul market.
• --Mike Paul, Pratt Whitney ERP director

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• SAP host computer in Connecticut
• Epic Datas ADC server in Singapore
• Intermec hand held
• Data travels 14,000 miles each way in less than 2
  seconds

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• Aircraft engines worth more than 5 million can
  be assembled from more than 2,000 unique part
  numbers in 8 days, instead of 6 weeks
• Single instance of SAP R/3

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• All worldwide data now resides in one location
• Over 20 30 years for each engine have
• How part manufactured
• Tests performed
• Quality issues

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• Manufacturer of high-quality plumbing fixtures
• Fine furniture
• Cabinetry and tile
• Small engines and generators

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• SAP R/3
• Epic Data for automated data collection for SAP
  R/3
• Intermec Antares hand-held terminals

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• At month-end processing, pull data from SAP via
  Epic Data system to work offline with Intermec
  terminals while SAP R/3 is unavailable
• Can continue to pack and close shipments

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Research Opportunities
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Continuous Auditing

• Real-time processing of transactions
• Real-time auditing

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Continuous Auditing 2

• Reduce time for existing audits?
• Increase audits in same amount of time?
• Reduce insurance costs for liabilities of CPA
  firms?
• Less overtime to meet reporting deadlines?

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Value Added Services

• Direct communication to stakeholders
• Shareholders
• Analysts
• Investors
• Employees
• General information on Web sites
• Regulatory reporting (SEC)
• Tax reporting (IRS)

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mySAP.com Internet-Business Framework

• Open Internet standards (such as XML and HTTP)
  combined with SAP R/3s scalable,
  high-performance architecture
• SAPs WebFlow technology for business communities
  is based upon XML-enabled Business Objects
• Information exchange between companies via XML
  messages

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mySAP.com Marketplace

• Instead of using independent buying and selling
  systems, companies may purchase or use mySAP.com
  Marketplace
• An example of a live marketplace using mySAP.com
  Marketplace is http//www.neoforma.com

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• Global electronic business-to-business supply
  chain exchange for the healthcare industry
• Supply chain processes cost the medical industry
  23 billion annually
• Automating the supply chain could reduce annual
  costs by 12 billion

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SAPMarkets, Inc.

• SAPMarkets, Inc. is SAPs subsidiary for evolving
  mySAP.com e-business applications into
  e-marketplace services
• Covisint, an XML-based buying system started by
  General Motors, Ford, and by DaimlerChrysler, has
  encountered selling side automotive exchanges led
  by Robert Bosch GMBH and others

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SAPMarkets, Inc. 2

• With Commerce One, SAPMarkets is already offering
  MarketSet and EnterpriseBuyer
• Commerce One and NEON (New Era of Networks, Inc.)
  are delivering an XML-based connector for SAP R/3
  integrating Commerce Ones Buysite 6.0

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mySAP.com Strategic Enterprise Management (SEM)

• Original foundations
• mySAP.com Internet-Business Framework
• Business Application Programming Interface (BAPI)

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mySAP.com Strategic Enterprise Management (SEM)2

• Business Planning and Simulation
• Business Consolidation and Sourcing
• Business Information Collection
• Corporate Performance Monitor
• Stakeholder Relationship Management

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SAP SRM

• SAP SRM (Stakeholder Relationship Management)
  function
• Value-based management via communications with
  employees, investors, analysts, customers, and
  suppliers

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mySAP.com Business Intelligence

• Real-time Web-enabled analytical reporting
• Reporting Agent runs queries in the background
  with exceptional conditions reported as HTML
  elements

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Custom Markup Languages

• Mathematical Markup Language (MathML)
• Chemical Markup Language (CML)
• Wireless Markup Language (WML)
• Synchronized Multimedia Markup Language (SMIL)
• Scalable Vector Graphics Markup Language (SVG)

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Custom Markup Languages 2

• Bean Markup Language (BML)
• Extensible 3D (X3D)
• Bank Internet Payment System (BIPS)
• Electronic Business XML (ebXML)
• Visa XML Invoice Specification
• Commerce XML (cXML)
• LegalXML

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Custom Markup Languages 3

• NewsML
• Open eBook Publication Structure
• Extensible User Interface Language (XUL)
• Research Information Exchange Markup Language
  (RIXML)
• VoiceXML
• Vector Markup Language (VML)

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Custom Markup Languages 4

• Product Data Markup Language (PDML)
• Financial Products Markup Language (FpML)
• XML Metadata Interchange (XMI)
• Trading Partner Agreement Markup Language (tpaML)

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Custom Markup Languages 5

• Small to Medium Business XML (SMBXML)
• Financial Information Exchange Markup Language
  (FixML)