SAP R3 Introduction

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SAP R/3 Introduction

• Applied Information Systems
• Dipl. Wirt.Inform. Holger Hansmann

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SAP AG

• SAP stands for Systems, Applications, and
  Products in Data Processing
• Based in Walldorf, Germany
• Founded in 1972
• Market leader in integrated software for business
  applications (Enterprise Resource Systems - ERP)

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The Architecture of SAP R/3
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SAP Industry Solutions
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ASAP - SAP R/3 Reference Model
SAP R/3 reference model
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Process Engineering andERP-Software

• Implementing standard applications in
  enterprisesis often the key component of
  business process optimization.
• Kirchmer (1998)

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ERP-Software SAP R/3
Sales and Distribution
Financial Accounting
Material Management
Controlling
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R/3 menu tree - IDES (Internet Demo and
Evaluation System)
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Logistics General andMaterials Management (MM)

• Logistics General
• Logistics Master Data (Business Partners,
  Material Master)
• Forecast
• Material Management (MM)
• Purchasing
• Quotations, Outline Agreements, Purchase Orders
• Inventory Management
• Goods Receipt
• Warehouse Management
• Warehouse Structure, Warehouse Movements
• Invoice Verification

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Sales and Distribution (SD)

• Master Data (Product Proposals)
• Basic Functions
• Pricing, Credit Management
• Sales
• Customer Inquiries, Quotations
• Shipping
• Picking, Packing, Gods Issue
• Billing
• Sales Force Automation, Customer Relationship
  Management

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Financial Accounting (FI)

• Master Data
• Account Maintenance
• Account Posting
• Open Item Management
• Invoices
• Payments
• ...

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Controlling (CO)

• Overhead Cost Controlling
• Cost Element Accounting
• Cost Center Accounting
• Acitivity-based Costing (!)
• Overhead Orders
• Enterprise Controlling
• Profit Center Accouting

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SAP R/3Module MM
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Structure

• Organizational units
• The Module MM
• Vendor master record
• Material master record
• Purchasing info record
• Purchase order
• Goods receipt
• Invoice verification

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Hierarchical Enterprise Structure

• Client
• highest hierarchy level, e. g. group with its
  daughter companies
• Settings made will affect all company codes

• Company Code (FI)
• Org. Unit can present a balance sheet according
  to the legal provisions ? legally independent
  enterprise
• Settings made will only affect the respective
  company code

• Purchasing organization
• procures material or services for the assigned
  plants
• negotiates on terms conditions with vendors ?
  make contracts
• is responsible for all the purchase processes
• operative purchasing is done by purchasing groups

• Plant
• Operational facility within a company code (e.g.
  factory, store, ...)
• has its own requirements planning and inventory
  management

• Storage location
• a space for logical inventory management

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Purchasing organization
material group
purchasing organization
purchasing group MG 0, 3
purchasing group MG 1, 4
plant
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Inventory Management with a Warehouse Management
System
0001 ABC inc.
client
company code
0001 Jones inc.
0002 Model Ltd.
purchasing organization
0001
0002
0003
MM
distrib.- center
0001
0002
0003
0004
0001
factory
plant
0001
0002
0003
0004
storage location
001
warehouse number
WM
001
storage type
002
(physical stock)
05-04-03
05-04-04
storage bin
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The Module MM Main Functions

• Maintenance of the material master record
  (different views)
• Material requirements planning
• Material procurement handling of the documents
  for
• purchase requisition
• request, quotation
• vendor selection
• purchase order, outline agreement
• vendor master record
• Inventory management
• goods movement, material valuation
• Invoice verification referringpurchase orders,
  goods received documents, delivery notes etc.

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MM interdependencies to other modules
Logistik
MM material master purchasing requirements
plan. inventory mgmt. invoice verification
SD sales anddistrib.
PP productionplanning
PM plantmaintenance
QM quality management
FI financial acc.
CO controlling
AM fixed assets mgmt.
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Basic Data

• Master records - include information about
• vendors
• material and services to be procured
• the relation between 1. and 2. (purchasing info
  record)e.g. prices / terms and conditions
• bills of material for
• production planning
• purchasing
• sales and distribution
• withdrawal of Material

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Structure of the Vendor Master Record
utilization
area of validity
sections

• General data
• name
• address
• control data

client wide

• request for quotation
• quotation processing
• purch. order handling

for eachpurchasingorganization

• purchasing
• terms and cond.
• partner functions
• currency

• invoice entry
• invoice verification
• payment handling

client wiede or for each company code

• accounting data
• bank account
• acc. maintenance
• payment

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Views on the Material Master Record

• each view is maintained by a certain user
  department of the firm
• accounting valuation- und calculation-specific
  information
• requirements planning information about material
  requirements planning (e. g. reorder point)
• purchasing e. g. responsible purchasing group,
  order unit
• engineering technical information
• storage information about warehousing, material
  movements, ...
• forecast information about the forecasting of
  the material requirements
• S D informationen about sales orders and price
  determination

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Demo Create Material Master (1/3)
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Demo Create Material Master (2/3)
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Demo Create Material Master (3/3)
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purchasing info record
vendor data
material data
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Purchasing Process
requirem. planning
outline agreem.
determination source of supply
?
purchase order processing
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Create Purchase Order (PO)
vendor known
terms cond.
source list
vendor not known
info record
vendor
3
assigned purchaserequisition exists(from user
department)
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Demo Create Purchase Order
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Posting an Order Entry (Goods Receipt)
Logistics
MM
SD sales anddistrib.
PP productionplanning
req. planning
purchasing
goods receipt
inventory mgmt.
goods issue.
transferposting
PM plantmaintenance
QM quality management
inventory controlling
invoiceverification
FI financial acc.
CO controlling
AM fixed assets mgmt.
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Demo Posting an Order Entry (Goods Received)
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Invoice Verification
input information
invoice verification
output information

• actions
• enter invoice
• verify invoice
• post invoice
• updaterelevant data
• (re-editinvoice)

orders
goods receipt
master data material vendors accounts
financialaccounting
assetmanagement
terms cond.
cost accounting
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Demo Invoice Verification (1/3)
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Demo Invoice Verification (2/3)
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Demo Invoice Verification (3/3)
net amount for positions
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mySAP.com
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mySAP.com Workplace