An Overview on SAP

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Wipro Technologies

For Internal Circulat ion on ly

Date: 03-Aug-2005

An Overview on SAP

Prepared by

Sivasundar S Muthusamy


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Contents

Overview

System Landscapes

R/3 Modules

Business Processes

Organisational Structure Data Requirements for SAP

Data Transfer to R/3 System

Implementation Methodology


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Objective

Objective: To give some Basic Knowledge about SAP

SAP products

Terminologies used in SAP arena (some)

Target Audience:

No Knowledge in SAP

Going to work on SAP


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Overview SAP

Systems Analysis and Program Development

Vision

Develop standard application software forreal-time business processing


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Overview SAP (continued)

Largest software company in the world (2004) R/2 Launched in 1972 by five former IBM employees.

R/3 Three-tier architecture (database, application, and user interface) in 1990s.

World class functionality Market leadership in all functional based products

Full integration of applications

Real-time business processing

Global Scalability 150 countries

40 languages

28 country solutions & legal reporting, currencies

Consumer Products (CP) Industry Leadership: 86% of Fortune 500 CP companies use SAP

48 of the top 50 CP companies use SAP

Functionality to meet critical CP manufactures needs

Highest development spend on CP future requirements


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SAP R/3 and R/3 Enterprise R/3 Enterprise 4.70

4.6 C / 4.6B

4.5B

4.0B

mySAP Business SuitemySAP CRM

SAP CRM 4.0

mySAP SCM SAP SCM 4.1

SAP SCM 4.0

SAP APO 3.1

SAP APO 3.0

mySAP SRM SAP SRM 4.0

SAP SRM 3.0

mySAP SEM SAP SEM-BW 3.50

SAP SEM-BW 3.20

mySAP PLM

Overview Products of SAP


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Overview Products of SAP (continued)

SAP R/3 NetWeaver

SAP NetWeaver '04 SAP MDM 3.00

SAP Industry SolutionsAerospace & Defense

Automotive

Banking

Health Care

Financials

Insurance

Oil & Gas

Retail Utilities, etc.

SAP xApps

SAP Solution Manager


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Contents

Overview

System Landscapes

R/3 Modules

Business Processes





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SAP R/3 Landscape Gillette (Europe)

TK2

DEVELOPMENT CONSOLIDATION PRODUCTION

COPY OF PRODUCTION

EK1

EDUCATION

XK1

COPY OF DEVELOPMENT

CK1

DG0

PRDPK1

GLOBAL DEVELOPMENT

XK4

COPY OF DEVELOPMENT

C11

LEGEND

PRD SUPPORT

PROJECTS (GLOBAL CODE)

PRD SUPPORT (GLOBAL CODE)

PROJECTS

SYSTEM

REFRESH


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System Integration Sample

SD

MM

SRM

FI/CO

Contract &.Catalogue Mgmt.

Contract,

Vendor &

Catalogue

Management

Profit Centre Acctg.

Cost Centre &

Internal Order Acctg.

Project Acctg.

Investment Mgmt.

Profitability Acctg. Revenue & Cost Planning

GLAP

AR

Banking

Cash Journal

Accounting

Accrual

Accounting

Fixed Asset

Accounting

Tax

Accounting

Self Service &

ServiceProcurements

Pur.Order

&

External Services

Goods Receipt

Inventory Mgmt

Legacy SAP System

BACK-OFFICE

4.5B

Invoice

Verification

Sales

Pricing

Sales

OrdersBilling

Inter-

Company

SalesCustomerDunning

Credit

Mgmt

BWHR

BW-BPSInfocubes

SEM-BCS SEM-Cockpit

HR Org. Mgmt.

PayrollTime &

Attendance

AA Connect

Jupiter

Luminus

HRL


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Gillette Manufacturing Application Systems (May 04)


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Contents

Overview

System Landscapes

R/3 Modules

Business Processes





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SAP R/3 Modules & Integration

R/3Client / Server

ABAP/4

FIFinancial

Accounting

COControlling

AAAsset

Accounting

PSProjectSystem

WFWorkflow

ISIndustrySolutions

MMMaterials

Mgmt.

HRHumanResources

SDSales &

Distribution

PPProductionPlanning

QMQualityMgmt. PM

PlantMaintenance

Modules in R/3

Functional

Technical


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Full Integration Across Functions

5000 Juicers

please

Integrated means:

Your work is related to the work of others

Example:

Customer Bob


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Full Integration Across Functions (continued)

SD

AM

Sales data for customer

is entered into the

Sales and Distribution

module

Create Sales Order

Item Quantity

Item Price

MM

PP

PM

QM

CO

AR

AP

FI


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SD

AM

MM

PP

PM

QM

CO

AR

AP

FI


2,000 unreserved

juicers

A check is performed

(in the Materials

Management module)

to ensure the ordered

product is available


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SD

AM

MM

PP

PM

QM

CO

AR

AP

FI


A check is made (in the

Accounts Receivable

module) to ensure the

customer is credit worthy

Either warning or clearance

to order

The systems assigns anorder number


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SD

AM

MM

PP

PM

QM

CO

AR

AP

FI


Bob is credit worthy:

Materials Management

reserves those 2,000 juicers

2,000 reserved

Juicers


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SD

AM

MM

PP

PM

QM

CO

AR

AP

FI


Material Managementorders any necessary

materials needed for

production

Raw Materials arrive and

warehouse clerk enters

details for invoice

verification

Raw

Materials


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SD

AM

MM

PP

PM

QM

CO

AR

AP

FI


Accounts Payable deals withinvoice from supplier for raw

material

Payment terms will already be

entered. Accounts Payable

initiates payment

Payment Run:

Pay for Raw Materialon 17th


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Materials Management

requests Production

Planning to make 3,000

more juicers

SD

AM

MM

PP

PM

QM

CO

AR

AP

FI


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Production Planning creates

schedules for the machines and

checks with Plant Maintenance

to make sure no repairs are

scheduled

Production planning creates

schedules for employees to

make more juicers

SD

AM

MM

PP

PM

QM

CO

AR

AP

FI


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Juicers are produced in

Production Planning, the

quality is checked in

Quality Management

Material Management

knows when the product is

available

SD

AM

MM

PP

PM

QM

CO

AR

AP

FI


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SD

AM

MM

PP

PM

QM

CO

AR

AP

FI


The General Ledger in Finance

is updated with the increase in

stock

Sales and Distribution isinformed that the product is

ready to ship

Delivery

Customer Bob


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SD

AM

MM

PP

PM

QM

CO

AR

AP

FI


Accounts Receivable will trackBob to make sure he pays, and

match the payment to the

invoice when he does

Finance will update the General

Ledger to increase the amount

of money that is owed to us until

Bob pays

Bob is happy, the delivery iscorrect so Sales and

Distribution will create an

invoice


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During the whole process

the Controlling module has

collected information for cost

analysis

It will tell us how profitable that

sale of juicers to Bob actually

was

SD

AM

MM

PP

PM

QM

CO

AR

AP

FI


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Contents

Overview

System Landscapes

R/3 Modules

Business Processes





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Business Processes Procurement


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Business Processes Sales


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Business Processes Project Systems


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Contents

Overview

System Landscapes

R/3 Modules

Business Processes





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Organisational Structure

Hierarchical Structure within SAP

Client

Company Code

Plant

Storage Location

Purchasing Organisation

Sales Organisation.


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Organisation Structure (continued)

Client:

Self-contained unit in a R/3 System.

Highest level entity of the organization structure.

Example: A corporate group (Wipro Business world wide).

Company Code:

Legal Entity.

Balance sheets and Profit & Loss statements.

Example: A company (Wipro Infotech Business).

Plant:

A Physical Facility that Procures, Stores or Produces Materials &

Services.

Valuation of Materials (in General).

Example: A Manufacturing Unit (Plant in Pondy).


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Storage Location:

Differentiates the material stocks within a plant.

Purchasing Organisation:

Purchasing of Materials & Services.

Negotiating Purchasing conditions with Vendors.

Sales Organisation:

Selling of Materials & Services.

Negotiating Selling conditions with Customers.

Further Classified into Division, Distribution Channel, Sales Area &

Sales Group.

Organisation Structure (continued)


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Organisational StructureGillette Europe(continued)

0010 Braun

0010

Braun Gmbh EUR

9075

Spain

EUR

9020

Mexico

PES

9785

Silk Epil

EUR

9500

China

CNY

DE01

DE03

DE05

DE06

ES50 MX50 FR50 IE50 CN50

0300 Operating Concern

IE60

9085

Ireland

EUR


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Contents

Overview

System Landscapes

R/3 Modules

Business Processes





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Data Requirements for SAP R/3

Master Data

Centralised Information

Used across Multiple Systems at multiple locations

Used also by multiple user departments.

1. Material Master:

Contains Information about all the Materials that the company

Procures or Produces

Stores and

Sells.

Unique within the Client.

2. BOM: A complete, formally structured list of the components that makes up a product

or assembly.

Contains the Components with the quantity and unit of measure.


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3. Customer Master:

Unique number within the SAP system used to identify the Customer

Contains information about the Customer

Maintained at Company code, Sales Organisation & Distribution Channel levels.

4. Vendor Master:

Unique number within the system

Maintained at Company code & Purchasing Organisation levels

5. Purchase Info Record:

Defines Material & Vendor relationship.

Pricing Details.

Purchasing Conditions.

Maintained at Plant & or Purchasing Organisation levels.

Transactional Data

Reflects Daily Business Operations

Data Requirements for SAP R/3 (continued)


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List of Objects to be converted

Sample List of Objects (Gillette Barcelona Implementation)

Data Type Area Application S. No. Description

1 Material Master

2 BOM3 Work Center

4 Routing

5 Production Version

6 Customer Master

7 Vendor Master

8 Purchase Info Record

1 Material Master

2 Vendor Master

3 Purchase Info Record

1 G/L Master

2 Asset Master

1 Open Purchase Orders

2 Open Scheduling Agreements

3 Open Contracts

4 Opening Stock

1 Open Purchase Orders

2 Open Scheduling Aggrements

3 Opening Stock

1 Fixed Asset - Line Items

2 Vendor - Line Items

3 Customer - Line Items

4 GL Account - Balances (B/S)

Master Data

Logistics

Direct Materials

Indirect Materials

OthersFinance

Transactional Data

Direct Materials

Indirect Materials

Logistics

Finance Others

This above list is indicative only. The final list will be decided jointly by Business & IT team during the design stage.


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Contents

Overview

System Landscapes

R/3 Modules

Business Processes


Data Requirements for SAP




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Data Transfer Workbench (SXDA)

Purpose: Supports the automatic transfer of data into the R/3 System.

Useful for business objects with large data volumes.

Efficient and consistent data transfer to the R/3 System.

Features: Administration and organization of data transfer projects.

Tools for analyzing the required SAP structures.

Integration of standard data transfer programs.

Registration and integration of your own data transfer programs & help

programs.

Various techniques to load data into R/3.


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Data Transfer to R/3 System (continued)

Data Transfer Programs / Applications

SAP Standard Transfer Programs & Inter faces: Transfer file should be in the correct SAP format.

One of the Techniques is used depending on the type of business object.

Some objects may be provided with multiple Techniques for upload.

Custom Convers ion Programs : Write an appropriate program.

Follow the structuring rules that apply to data transfer objects.

Follow the guidelines in Developing Programs, Function Modules and BAPIs.

The generated processing log will help us to reprocess the errors.

Batch Input program generator can generate sample Batch Input programs

by running through the SAP business transaction.


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Data Transfer Programs / Applications (continued)

Legacy System Migrat ion Workbench (LSMW): Reads the transfer data from one or more files.

Converts the data from the source format into the target format.

Data transfer from legacy systems are possible once only or periodically.

SAP Standard Structures are available for the specified Objects.

Custom Recoding can be easily done based on the Business needs.

SAP Recommended.

Compu ter Aided Test ing Too l (CATT):

A testing tool & sometimes used for Data conversion too.

Recording of several transactions into a test case, can be linked easily later.

Provides flexible data management using parameters and variables. Useful for a small amount of data transfer.

Data transfer rate is lesser than LSMW.

D T f R/3 S


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Data Conversion Techniques

1. Batch Input Method:

A program reads the external data and stores it in a batch input session.

User will run the session to execute the SAP transactions for posting.

Can be executed in foreground / background / during processing with error

display.

2. Direct Input Method:

Stores the data directly into the SAP application tables by calling a numberof function modules provided by the applications out of several reports.

These function modules are performing the necessary business checks.

In case of errors, Direct Input provides a restart mechanism.

Able to activate the restart mechanism, Direct Input programs must be

executed in the background.

3. BAPI Method: Interfaces that provide external access to R/3 business processes and data.

Business Application Programming Interfaces

Enables object-oriented access to R/3 application components.

Implemented and stored as RFC-enabled function modules in the FunctionBuilder.

C t t


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Contents

Overview

System Landscapes

R/3 Modules

Business Processes


Data Requirements for SAP



I l t ti M th d l


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Implementation Methodologies

1. ASAP Project Preparation

Business Blue Print

Realization

Final Preparation

Go-live & Support2. EAPM Enterprise Application Process Model (Wipro EAS)

Scope

Plan

Analyze

Design

Build

Deliver

Support

APO I l t t i R d M ASAP


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APO Implementat ion Road Map ASAP

ProjectPreparation

Business

BlueprintRealization

FinalPreparation Go Live &

SupportAS-IS modeling of supply chain andplanning processesBusiness Process RequirementsDefine Benchmark and KPIS formeasure of success.Designing Supply chain ModelIdentifying the Gaps.Prototyping and demonstrationData Migration StrategyTO-BE modeling for SCMIdentifying Training NeedQuality Check

Base line ConfigurationConfiguring the Supply chain solution modelConfigure test Case and define Testing Plan.Simulating supply chain processes.Reviewing base line configuration and carry out finalconfigurationEstablishing Production Environments.Developing and testing conversion and Interface programsIntegration testingReviewing KPIs and benchmark resultsEstablishing User roles and authorizations.Quality Checks

.

Final Integration TestingEnd User TrainingProduction environment Setting andSystem Testing .Developing cutover plan and performingcutoverQuality Check

Post Go-live SupportValidating live supply chainmanagement solutions resultsProject review

Initial Project PlanningProject CharterUnderstanding ManagementStrategy,Goal and VisionUnderstanding the supplychain issues and opportunitiesProject Procedure.Project Schedule and ImplementationSequenceTechnical RequirementsQuality Check

O i SAP


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